Sec. 306. CONTRACT
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## SEC. 306 CONTRACT ###
(a)In general The Secretary shall enter into the Contract, in accordance with the Agreement, to provide, among other things, that— ####
(1)the Tribe, on approval of the Secretary, may— #####
(A)enter into contracts or options to lease, contracts to exchange, or options to exchange tribal CAP water in Maricopa, Pinal, Pima, and Yavapai Counties in the State providing for the temporary delivery to any individual or entity of any portion of the tribal CAP water, subject to the condition that— ######
(i)the term of the contract or option to lease shall not be longer than 100 years; ######
(ii)the contracts or options to exchange shall be for the term provided in the contract or option; and ######
(iii)a lease or option to lease providing for the temporary delivery of tribal CAP water shall require the lessee to pay to the Operating Agency all CAP fixed OM&R charges and all CAP pumping energy charges (as defined in the repayment stipulation) associated with the leased water; and #####
(B)renegotiate any lease at any time during the term of the lease, subject to the condition that the term of the renegotiated lease shall not exceed 100 years; ####
(2)no portion of the tribal CAP water may be permanently alienated; ####
(3)#####
(A)the Tribe (and not the United States in any capacity) shall be entitled to all consideration due to the Tribe under any contract or option to lease or exchange tribal CAP water entered into by the Tribe; and #####
(B)the United States (in any capacity) has no trust or other obligation to monitor, administer, or account for, in any manner— ######
(i)any funds received by the Tribe as consideration under a contract or option to lease or exchange tribal CAP water; or ######
(ii)the expenditure of those funds; ####
(4)#####
(A)all tribal CAP water shall be delivered through the CAP system; and #####
(B)if the delivery capacity of the CAP system is significantly reduced or anticipated to be significantly reduced for an extended period of time, the Tribe shall have the same CAP delivery rights as a CAP contractor or CAP subcontractor that is allowed to take delivery of water other than through the CAP system; ####
(5)the Tribe may use tribal CAP water on or off the reservation for any purpose; ####
(6)as authorized by subsection (f)(2)(A) of section 403 of the Colorado River Basin Project Act (43 U.S.C. 1543) and to the extent that funds are available in the Lower Colorado River Basin Development Fund established by subsection
(a)of that section, the United States shall pay to the Operating Agency the CAP fixed OM&R charges associated with the delivery of tribal CAP water (except in the case of tribal CAP water leased by any individual or entity); ####
(7)the Secretary shall waive the right of the Secretary to capture all return flow from project exchange water flowing from the exterior boundary of the reservation; and ####
(8)no CAP water service capital charge shall be due or payable for the tribal CAP water, regardless of whether the water is delivered for use by the Tribe or pursuant to a contract or option to lease or exchange tribal CAP water entered into by the Tribe. ###
(b)Requirements The Contract shall be— ####
(1)for permanent service (within the meaning of section 5 of the Boulder Canyon Project Act (43 U.S.C. 617d)); and ####
(2)without limit as to term. ###
(c)Ratification ####
(1)In general Except to the extent that any provision of the Contract conflicts with a provision of this title, the Contract is authorized, ratified, and confirmed. ####
(2)Amendments Any amendment to the Contract is authorized, ratified, and confirmed, to the extent that such amendment is executed to make the Contract consistent with this title. ###
(d)Execution of Contract To the extent that the Contract does not conflict with this title, the Secretary shall execute the Contract. ###
(e)Payment of Charges The Tribe, and any recipient of tribal CAP water through a contract or option to lease or exchange, shall not be obligated to pay a water service capital charge or any other charge, payment, or fee for CAP water, except as provided in an applicable lease or exchange agreement. ###
(f)Prohibitions ####
(1)Use outside state No tribal CAP water may be leased, exchanged, forborne, or otherwise transferred by the Tribe in any way for use directly or indirectly outside the State. ####
(2)Use off reservation Except as authorized by this section and paragraph 4.7 of the Agreement, no tribal water rights under this title may be sold, leased, transferred, or used outside the boundaries of the reservation or off-reservation trust land other than pursuant to an exchange. ####
(3)Agreements with arizona water banking authority Nothing in this title or the Agreement limits the right of the Tribe to enter into an agreement with the Arizona Water Banking Authority (or any successor entity) established by section 45-2421 of the Arizona Revised Statutes in accordance with State law. ###
(g)Leases ####
(1)In general To the extent that the leases of tribal CAP Water by the Tribe to the District and to any of the cities in the State, attached as exhibits to the Agreement, are not in conflict with the provisions of this title— #####
(A)those leases are authorized, ratified, and confirmed; and #####
(B)the Secretary shall execute the leases. ####
(2)Amendments To the extent that amendments are executed to make the leases described in paragraph
(1)consistent with this title, those amendments are authorized, ratified, and confirmed.
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