Sec. 612. OPERATING AGREEMENT

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## SEC. 612 OPERATING AGREEMENT ###

(a)In general The Pueblos and the County shall submit to the Secretary an executed Operating Agreement for the Regional Water System that is consistent with this title, the Settlement Agreement, and the Cost-Sharing and System Integration Agreement not later than 180 days after the later of— ####

(1)the date of completion of environmental compliance and permitting; or ####

(2)the date of issuance of a final project design for the Regional Water System under section 611(b). ###

(b)Approval The Secretary shall approve or disapprove the Operating Agreement within a reasonable period of time after the Pueblos and the County submit the Operating Agreement described in subsection

(a)and upon making a determination that the Operating Agreement is consistent with this title, the Settlement Agreement, and the Cost-Sharing and System Integration Agreement. ###

(c)Contents The Operating Agreement shall include— ####

(1)provisions consistent with the Settlement Agreement and the Cost-Sharing and System Integration Agreement and necessary to implement the intended benefits of the Regional Water System described in those documents; ####

(2)provisions for— #####

(A)the distribution of water conveyed through the Regional Water System, including a delineation of— ######

(i)distribution lines for the County Distribution System; ######

(ii)distribution lines for the Pueblo Water Facilities; and ######

(iii)distribution lines that serve both— ######

(I)the County Distribution System; and ######

(II)the Pueblo Water Facilities; #####

(B)the allocation of the Regional Water System capacity; #####

(C)the terms of use of unused water capacity in the Regional Water System; #####

(D)terms of interim use of County unused capacity, in accordance with section 614(d); #####

(E)the construction of additional infrastructure and the acquisition of associated rights-of-way or easements necessary to enable any of the Pueblos or the County to fully use water allocated to the Pueblos or the County from the Regional Water System, including provisions addressing when the construction of such additional infrastructure requires approval by the Authority; #####

(F)the allocation and payment of annual operation, maintenance, and replacement costs for the Regional Water System, including the portions of the Regional Water System that are used to treat, transmit, and distribute water to both the Pueblo Water Facilities and the County Water Utility; #####

(G)the operation of wellfields located on Pueblo land; #####

(H)the transfer of any water rights necessary to provide the Pueblo water supply described in section 613(a); #####

(I)the operation of the Regional Water System with respect to the water supply, including the allocation of the water supply in accordance with section 3.1.8.4.2 of the Settlement Agreement so that, in the event of a shortage of supply to the Regional Water System, the supply to each of the Pueblos’ and to the County’s distribution system shall be reduced on a pro rata basis, in proportion to each distribution system’s most current annual use; and #####

(J)dispute resolution; and ####

(3)provisions for operating and maintaining the Regional Water System facilities before and after conveyance under section 611(h), including provisions to— #####

(A)ensure that— ######

(i)the operation of, and the diversion and conveyance of water by, the Regional Water System is in accordance with the Settlement Agreement; ######

(ii)the wells in the Regional Water System are used in conjunction with the surface water supply of the Regional Water System to ensure a reliable firm supply of water to all users of the Regional Water System, consistent with the intent of the Settlement Agreement that surface supplies will be used to the maximum extent feasible; ######

(iii)the respective obligations regarding delivery, payment, operation, and management are enforceable; and ######

(iv)the County has the right to serve any new water users located on non-Pueblo land in the Pojoaque Basin; and #####

(B)allow for any aquifer storage and recovery projects that are approved by the Office of the New Mexico State Engineer. ###

(d)Effect Nothing in this title precludes the Operating Agreement from authorizing phased or interim operations if the Regional Water System is constructed in phases.