[Congressional Record Volume 140, Number 99 (Tuesday, July 26, 1994)]
[Senate]
[Page S]
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[Congressional Record: July 26, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                            MORNING BUSINESS



   YAVAPAI-PRESCOTT INDIAN TRIBE WATER RIGHTS SETTLEMENT ACT OF 1994

  Mr. MITCHELL. Mr. President, I ask unanimous consent that the Senate 
proceed to consideration of calendar No. 392, S. 1146, a bill to 
provide for the settlement of the water rights claims of the Yavapai-
Prescott Indian tribe in Arizona; that the committee substitute be 
agreed to; that the bill be read a third time and passed; that the 
motion to reconsider laid on the table; and that any statements thereon 
appear at the appropriate place as though read.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  So the bill (S. 1146) was deemed read the third time and passed, as 
follows:

                                S. 1146

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Yavapai-Prescott Indian 
     Tribe Water Rights Settlement Act of 1994''.

     SEC. 2. CONGRESSIONAL FINDINGS AND DECLARATIONS.

       (a) Findings.--The Congress finds that--
       (1) it is the policy of the United States, in fulfillment 
     of its trust responsibility to the Indian tribes, to promote 
     Indian self-determination and economic self-sufficiency, and 
     to settle, wherever possible, the water rights claims of 
     Indian tribes without lengthy and costly litigation;
       (2) meaningful Indian self-determination and economic self-
     sufficiency depend on the development of viable Indian 
     reservation economies;
       (3) quantification of rights to water and development of 
     facilities needed to utilize tribal water supplies 
     effectively is essential to the development of viable Indian 
     reservation economies, particularly in arid western States;
       (4) on June 7, 1935, and by actions subsequent thereto, the 
     United States established a reservation for the Yavapai-
     Prescott Indian Tribe in Arizona adjacent to the city of 
     Prescott;
       (5) proceedings to determine the full extent of Yavapai-
     Prescott Tribe's water rights are currently pending before 
     the Superior Court of the State of Arizona in and for 
     Maricopa County, as part of the general adjudication of the 
     Gila River system and source;
       (6) recognizing that final resolution of the general 
     adjudication will take many years and entail great expense to 
     all parties, prolong uncertainty as to the full extent of the 
     Yavapai-Prescott Tribe's entitlement to water and the 
     availability of water supplies to fulfill that entitlement, 
     and impair orderly planning and development by the Tribe and 
     the city of Prescott; the Tribe, the city of Prescott, the 
     Chino Valley Irrigation District, the State of Arizona and 
     the United States have sought to settle all claims to water 
     between and among them;
       (7) representatives of the Yavapai-Prescott Tribe, the city 
     of Prescott, the Chino Valley Irrigation District, the State 
     of Arizona and the United States have negotiated a Settlement 
     Agreement to resolve all water rights claims between and 
     among them, and to provide the Tribe with long term, reliable 
     water supplies for the orderly development and maintenance of 
     the Tribe's reservation;
       (8) pursuant to the Settlement Agreement and the Water 
     Service Agreement, the quantity of water made available to 
     the Yavapai-Prescott Tribe by the city of Prescott and the 
     Chino Valley Irrigation District will be secured, such 
     Agreements will be continued in perpetuity, and the Tribe's 
     continued on-reservation use of water for municipal and 
     industrial, recreational and agricultural purposes will be 
     provided for;
       (9) to advance the goals of Federal Indian policy and to 
     fulfill the trust responsibility of the United States to the 
     Tribe, it is appropriate that the United States participate 
     in the implementation of the Settlement Agreement and assist 
     in firming up the long-term water supplies of the city of 
     Prescott and the Yavapai-Prescott Tribe so as to enable the 
     Tribe to utilize fully its water entitlements in developing a 
     diverse, efficient reservation economy; and
       (10) the assignment of the CAP contract of the Yavapai-
     Prescott Tribe and the CAP subcontract of the city of 
     Prescott is a cost-effective means to ensure reliable, long-
     term water supplies for the Yavapai-Prescott Tribe and to 
     promote efficient, environmentally sound use of available 
     water supplies in the Verde River basin.
       (b) Declaration of Purposes.--The Congress declares that 
     the purposes of this Act are--
       (1) to approve, ratify and confirm the Settlement Agreement 
     among the Yavapai-Prescott Tribe, the city of Prescott, the 
     Chino Valley Irrigation District, the State of Arizona and 
     the United States;
       (2) to authorize and direct the Secretary of the Interior 
     to execute and perform the Settlement Agreement;
       (3) to authorize the actions and appropriations necessary 
     for the United States to fulfill its legal and trust 
     obligations to the Yavapai-Prescott Tribe as provided in the 
     Settlement Agreement and this Act;
       (4) to require that expenditures of funds obtained through 
     the assignment of CAP contract entitlements by the Yavapai-
     Prescott Tribe and Prescott for the acquisition or 
     development of replacement water supplies in the Verde River 
     basin shall not be inconsistent with the goals of the 
     Prescott Active Management Area, preservation of riparian 
     habitat, flows and biota of the Verde River and its 
     tributaries; and
       (5) to repeal section 406(k) of Public Law 101-628 which 
     authorizes $30,000,000 in appropriations for the acquisition 
     of land and water resources in the Verde River basin and for 
     the development thereof as an alternative source of water for 
     the Fort McDowell Indian Community.

     SEC. 3. DEFINITIONS.

       For purposes of this Act:
       (1) The term ``CAP'' means the Central Arizona Project, a 
     reclamation project authorized under title III of the 
     Colorado River Basin Project Act of 1968 (43 U.S.C. 1521 et 
     seq.).
       (2) The term ``CAWCD'' means the Central Arizona Water 
     Conservation District, organized under the laws of the State 
     of Arizona, which is the contractor under a contract with the 
     United States, dated December 1, 1988, for the delivery of 
     water and repayment of costs of the Central Arizona Project.
       (3) The term ``CVID'' means the Chino Valley Irrigation 
     District, an irrigation district organized under the laws of 
     the State of Arizona.
       (4) The term ``Prescott AMA'' means the Active Management 
     Area, established pursuant to Arizona law and encompassing 
     the Prescott ground water basin, wherein the primary goal is 
     to achieve balance between annual ground water withdrawals 
     and natural and artificial recharge by the year 2025.
       (5) The term ``Prescott'' means the city of Prescott, an 
     Arizona municipal corporation.
       (6) The term ``Reservation'' means the reservation 
     established by the Act of June 7, 1935 (49 Stat. 332) and the 
     Act of May 18, 1956 (70 Stat. 157) for the Yavapai-Prescott 
     Tribe of Indians.
       (7) The term ``Secretary'' means the Secretary of the 
     United States Department of the Interior.
       (8) The term ``Settlement Agreement'' means that agreement 
     entered into by the city of Prescott, the Chino Valley 
     Irrigation District, the Yavapai-Prescott Indian Tribe, the 
     State of Arizona, and the United States, providing for the 
     settlement of all water claims between and among them.
       (9) The term ``Tribe'' means the Yavapai-Prescott Indian 
     Tribe, a tribe of Yavapai Indians duly recognized by the 
     Secretary.
       (10) The term ``Water Service Agreement'' means that 
     agreement between the Yavapai-Prescott Indian Tribe and the 
     city of Prescott, as approved by the Secretary, providing for 
     water, sewer, and effluent service from the city of Prescott 
     to the Yavapai-Prescott Tribe.

     SEC. 4. RATIFICATION OF SETTLEMENT AGREEMENT.

       (a) Approval of Settlement Agreement.--To the extent the 
     Settlement Agreement does not conflict with the provisions of 
     this Act, such Agreement is approved, ratified and confirmed. 
     The Secretary shall execute and perform such Agreement, and 
     shall execute any amendments to the Agreement and perform any 
     action required by any amendments to the Agreement which may 
     be mutually agreed upon by the parties.
       (b) Perpetuity.--The Settlement Agreement and Water Service 
     Agreement shall include provisions which will ensure that the 
     benefits to the Tribe thereunder shall be secure in 
     perpetuity. Notwithstanding the provisions of section 2103 of 
     the Revised Statutes of the United States (25 U.S.C. 81) 
     relating to the term of the Agreement, the Secretary is 
     authorized and directed to approve the Water Service 
     Agreement with a perpetual term.

     SEC. 5. ASSIGNMENT OF CAP WATER.

       The Secretary is authorized and directed to arrange for the 
     assignment of, or to purchase, the CAP contract of the Tribe 
     and the CAP subcontract of the city of Prescott to provide 
     funds for deposit into the Verde River Basin Water Fund 
     established pursuant to section 6.

     SEC. 6. REPLACEMENT WATER FUND; CONTRACTS.

       (a) Fund.--The Secretary shall establish a fund to be known 
     as the ``Verde River Basin Water Fund'' (hereinafter called 
     the ``Fund'') to provide replacement water for the CAP water 
     relinquished by the Tribe and by Prescott. Moneys in the Fund 
     shall be available without fiscal year limitations.
       (b) Content of Fund.--The Fund shall consist of moneys 
     obtained through the assignment or purchase of the contract 
     and subcontract referenced in section 5, appropriations as 
     authorized in section 9, and any moneys returned to the Fund 
     pursuant to subsection (d) of this section.
       (c) Payments From Fund.--The Secretary shall, subsequent to 
     the publication of a statement of findings as provided in 
     section 12(a), promptly cause to be paid from the Fund to the 
     Tribe the amounts deposited to the Fund from the assignment 
     or purchase of the Tribe's CAP contract, and, to the city of 
     Prescott, the amounts deposited to the Fund from the 
     assignment or purchase of the city's CAP subcontract.
       (d) Contracts.--The Secretary shall require, as a condition 
     precedent to the payment of any moneys pursuant to subsection 
     (c), that the Tribe and Prescott agree, by contract with the 
     Secretary, to establish trust accounts into which the 
     payments would be deposited and administered, to use such 
     moneys consistent with the purpose and intent of section 7, 
     to provide for audits of such accounts, and for the repayment 
     to the Fund, with interest, any amount determined by the 
     Secretary not to have been used within the purpose and intent 
     of section 7.

     SEC. 7. EXPENDITURES OF FUNDS.

       (a) By the City.--All moneys paid to Prescott for 
     relinquishing its CAP subcontract and deposited into a trust 
     account pursuant to section 6(d), shall be used for the 
     purposes of defraying expenses associated with the 
     investigation, acquisition or development of alternative 
     sources of water to replace the CAP water relinquished under 
     this Act. Alternative sources shall be understood to include, 
     but not be limited to, retirement of agricultural land and 
     acquisition of associated water rights, development of ground 
     water resources outside the Prescott Active Management Area 
     established pursuant to the laws of the State of Arizona, and 
     artificial recharge; except that none of the moneys paid to 
     Prescott may be used for construction or renovation of the 
     city's existing waterworks or water delivery system.
       (b) By the Tribe.--All funds paid to the Tribe for 
     relinquishing its CAP contract and deposited into a trust 
     account pursuant to section 6(d), shall be used to defray its 
     water service costs under the Water Service Agreement or to 
     develop and maintain facilities for on-reservation water or 
     effluent use.
       (c) No Per Capita Payments.--No amount of the Tribe's 
     portion of the Fund may be used to make per capita payments 
     to any member of the Tribe, nor may any amount of any payment 
     made pursuant to section 6(c) be distributed as a dividend or 
     per capita payment to any constituent, member, shareholder, 
     director or employee of Prescott.
       (d) Disclaimer.--Effective with the payment of funds 
     pursuant to section 6(c), the United States shall not be 
     liable for any claim or cause of action arising from the use 
     of such funds by the Tribe or by Prescott.

     SEC. 8. ENVIRONMENTAL COMPLIANCE.

       The Secretary, the Tribe and Prescott shall comply with all 
     applicable Federal environmental and State environmental and 
     water laws in developing alternative water sources pursuant 
     to section 7(a). Development of such alternative water 
     sources shall not be inconsistent with the goals of the 
     Prescott Active Management Area, preservation of the riparian 
     habitat, flows and biota of the Verde River and its 
     tributaries.

     SEC. 9. APPROPRIATIONS AUTHORIZATION AND REPEAL.

       (a) Authorization.--There are authorized to be appropriated 
     to the Fund established pursuant to section 6(a):
       (1) Such sums as may be necessary, but not to exceed 
     $200,000, to the Secretary for the Tribe's costs associated 
     with judicial confirmation of the settlement.
       (2) Such sums as may be necessary to establish, maintain 
     and operate the gauging station required under section 11(e).
       (b) State Contribution.--The State of Arizona shall 
     contribute $200,000 to the trust account established by the 
     Tribe pursuant to the Settlement Agreement and section 6(d) 
     for uses consistent with section 7(b).
       (c) Repeal.--Subsection 406(k) of the Act of November 28, 
     1990 (Public Law 101-628; 104 Stat. 4487) is repealed.

     SEC. 10. SATISFACTION OF CLAIMS.

       (a) Waiver.--The benefits realized by the Tribe or any of 
     its members under the Settlement Agreement and this Act shall 
     constitute full and complete satisfaction of all claims by 
     the Tribe and all members' claims for water rights or 
     injuries to water rights under Federal and State laws 
     (including claims for water rights in ground water, surface 
     water and effluent) from time immemorial to the effective 
     date of this Act, and for any and all future claims of water 
     rights (including claims for water rights in ground water, 
     surface water, and effluent) from and after the effective 
     date of this Act. Nothing in this Act shall be deemed to 
     recognize or establish any right of a member of the Tribe to 
     water on the Tribe's reservation.
       (b) Waiver and Release.--The Tribe, on behalf of itself and 
     its members, and the Secretary on behalf of the United 
     States, are authorized and required, as a condition to the 
     implementation of this Act, to execute a waiver and release, 
     except as provided in subsection (d) and the Settlement 
     Agreement, of all claims of water rights or injuries to water 
     rights (including water rights in ground water, surface water 
     and effluent), from and after the effective date of this Act, 
     which the Tribe and its members may have, against the United 
     States, the State of Arizona or any agency or political 
     subdivision thereof, or any other person, corporation, or 
     municipal corporation, arising under the laws of the United 
     States or the State of Arizona.
       (c) Waiver by United States.--Except as provided in 
     subsection (d) and the Settlement Agreement, the United 
     States, in its own right or on behalf of the Tribe, shall not 
     assert any claim against the State of Arizona or any 
     political subdivision thereof, or against any other person, 
     corporation, or municipal corporation, arising under the laws 
     of the United States or the State of Arizona based upon water 
     rights or injuries to water rights of the Tribe and its 
     members or based upon water rights or injuries to water 
     rights held by the United States on behalf of the Tribe and 
     its members.
       (d) Rights Retained.--In the event the waivers of claims 
     authorized in subsection (b) of this section do not become 
     effective pursuant to section 12(a), the Tribe, and the 
     United States on behalf of the Tribe, shall retain the right 
     to assert past and future water rights claims as to all 
     reservation lands.
       (e) Jurisdiction.--The United States District Court for the 
     District of Arizona shall have original jurisdiction of all 
     actions arising under this Act, the Settlement Agreement and 
     the Water Service Agreement, including review pursuant to 
     title 9, United States Code, of any arbitration and award 
     under the Water Service Agreement.
       (f) Claims.--Nothing in this Act shall be deemed to 
     prohibit the Tribe, or the United States on behalf of the 
     Tribe, from asserting or maintaining any claims for the 
     breach or enforcement of the Settlement Agreement or the 
     Water Service Agreement.
       (g) Disclaimer.--Nothing in this Act shall affect the water 
     rights or claims related to any trust allotment located 
     outside the exterior boundaries of the reservation of any 
     member of the Tribe.
       (h) Full Satisfaction of Claims.--Payments made to Prescott 
     under this Act shall be in full satisfaction for any claim 
     that Prescott might have against the Secretary or the United 
     States related to the allocation, reallocation, 
     relinquishment or delivery of CAP water.

     SEC. 11. MISCELLANEOUS PROVISIONS.

       (a) Joining of Parties.--In the event any party to the 
     Settlement Agreement should file a lawsuit in any United 
     States district court relating only and directly to the 
     interpretation or enforcement of the Settlement Agreement or 
     this Act, naming the United States of America or the Tribe as 
     parties, authorization is hereby granted to join the United 
     States of America or the Tribe, or both, in any such 
     litigation, and any claim by the United States of America or 
     the Tribe to sovereign immunity from such suit is hereby 
     waived. In the event Prescott submits a dispute under the 
     Water Service Agreement to arbitration or seeks review by the 
     United States District Court for the District of Arizona of 
     an arbitration award under the Water Service Agreement, any 
     claim by the Tribe to sovereign immunity from such 
     arbitration or review is hereby waived.
       (b) No Reimbursement.--The United States of America shall 
     make no claims for reimbursement of costs arising out of the 
     implementation of the Settlement Agreement or this Act 
     against any lands within the Yavapai-Prescott Indian 
     Reservation, and no assessment shall be made with regard to 
     such costs against such lands.
       (c) Water Management.--The Tribe shall establish a ground 
     water management plan for the Reservation which, except to be 
     consistent with the Water Service Agreement, the Settlement 
     Agreement and this Act, will be compatible with the ground 
     water management plan in effect for the Prescott Active 
     Management Area and will include an annual information 
     exchange with the Arizona Department of Water Resources. In 
     establishing a ground water management plan pursuant to this 
     section, the Tribe may enter into a Memorandum of 
     Understanding with the Arizona Department of Water Resources 
     for consultation. Notwithstanding any other law, the Tribe 
     may establish a tribal water code, consistent with the above-
     described water management plan, under which the Tribe will 
     manage, regulate, and control the water resources granted it 
     in the Settlement Act, the Settlement Agreement, and the 
     Water Service Agreement, except that such management, 
     regulation and control shall not authorize any action 
     inconsistent with the trust ownership of the Tribe's water 
     resources.
       (d) Gauging Station.--The Secretary, acting through the 
     Geological Survey, shall establish, maintain and operate a 
     gauging station at the State Highway 89 bridge across Granite 
     Creek adjacent to the reservation to assist the Tribe and the 
     CVID in allocating the surface flows from Granite Creek as 
     provided in the Settlement Agreement.

     SEC. 12. EFFECTIVE DATE.

       (a) Waivers and Releases.--The waivers and releases 
     required by section 10(b) of this Act shall become effective 
     as of the date the Secretary causes to be published in the 
     Federal Register a statement of findings that--
       (1)(A) the Secretary has determined that an acceptable 
     party, or parties, have executed contracts for the 
     assignments of the Tribe's CAP contract and the city of 
     Prescott's CAP subcontract, and the proceeds from the 
     assignments have been deposited into the Fund as provided in 
     section 6(d); or,
       (B) the Secretary has executed contracts for the 
     acquisition of the Tribe's CAP contract and the city of 
     Prescott's CAP subcontract as provided in section 6(d);
       (2) the stipulation which is attached to the Settlement 
     Agreement as exhibit 9.5, has been approved in substantially 
     the form of such exhibit no later than December 31, 1994;
       (3) the Settlement Agreement has been modified to the 
     extent it is in conflict with this Act and has been executed 
     by the Secretary; and
       (4) the State of Arizona has appropriated and deposited 
     into the Tribe's trust account $200,000 as required by the 
     Settlement Agreement.
       (b) Deadline.--If the actions described in paragraphs (1), 
     (2), (3), and (4) of subsection (a) have not occurred by 
     December 31, 1995, any contract between Prescott and the 
     United States entered into pursuant to section 6(d) shall not 
     thereafter be effective, and any funds appropriated by the 
     State of Arizona pursuant to the Settlement Agreement shall 
     be returned by the Tribe to the State of Arizona.

     SEC. 13. OTHER CLAIMS.

       (a) Other Tribes.--Nothing in the Settlement Agreement or 
     this Act shall be construed in any way to quantify or 
     otherwise adversely affect the land and water rights, claims 
     or entitlements to water of any Arizona Indian tribe, band or 
     community, other than the Tribe.
       (b) Federal Agencies.--Nothing in this Act shall be 
     construed to affect the water rights or the water rights 
     claims of any Federal agency, other than the Bureau of Indian 
     Affairs on behalf of the Tribe.

  Mr. McCAIN. Mr. President, I am pleased and proud to rise in support 
of S. 1146, a bill that provides for the settlement of the water rights 
claims of the Yavapai-Prescott Indian Tribe in Yavapai County, AZ. This 
legislation is a modest but significant step towards achieving the 
goals of the United States, in fulfillment of its trust responsibility 
to Indian tribes, to settle tribal water rights claims fairly and 
honorably, without lengthy and costly litigation, and to secure for 
tribes reliable, long term supplies of water.
  The Senate passed a Yavapai-Prescott settlement bill late in the 102d 
Congress. S. 1146, while very similar to that earlier legislation, 
includes changes that address several specific concerns raised by the 
administration. All of the non-Federal settlement parties, including 
the Yavapai-Prescott Tribe, the city of Prescott, the Chino Valley 
Irrigation District, and the State of Arizona, support the bill with 
these changes. In anticipation of enactment of S. 1146, the 
administration requested $300,000 in the fiscal year 1995 budget to 
cover the full Federal share of the settlement costs. I am pleased to 
note that the House and Senate have included this money in the fiscal 
year 1995 appropriations bill for the Department of the Interior. For 
the settlement to become final, the State of Arizona must appropriate 
$200,000 to a settlement fund and a State court must accept the terms 
of the agreement as part of an ongoing general stream adjudication.
  The Committee on Indian Affairs reported S. 1146 in February; 
however, I did not want to bring it to the floor until the Arizona 
parties had resolved several issues related to the settlement, and all 
settlement documents had been essentially completed. This work now 
having been done, I urge the Senate to pass S. 1146 and send it to the 
House. It is meritorious, noncontroversial legislation which can and 
should be enacted during this session of Congress.
  Mr. President, the history of the Yavapai-Apache Tribe in Arizona is 
a story of a tenacious struggle to remain and survive on a small 
portion of the large land area that was once considered theirs. The 
members of the tribe are descendants of Indians who hunted, gathered 
and farmed in the Verde River Valley and other areas of central and 
middle-western Arizona hundreds of years ago.
  The Yavapai first encountered Spanish explorers in 1538, but 
subsequently had little contact with non-Indians until the 19th 
century. In 1848, the Treaty of Guadalupe Hidalgo ended the War with 
Mexico, and by its terms the lands on which the Yavapai lived became a 
part of the public domain of the United States.
  Prior to the 1860's, American exploring and trapping parties visited 
Yavapai territory, but made no effort to establish settlements. 
However, in 1862, miners in search of gold and other minerals began to 
establish camps in the Verde Valley. The following year, U.S. troops 
established Camp Whipple near the town of Prescott. In 1864, Prescott 
became the capital of the Arizona Territory and Camp Whipple the U.S. 
Army headquarters for Arizona.
  Arrival of the miners led to hostilities with the Yavapai that 
continued almost without interruption for more than 10 years. In 1875, 
the U.S. Army under Gen. George Crook rounded up the surviving Yavapai 
and forced their relocation onto the San Carlos Apache Reservation, far 
to the south. The Yavapai struggled to survive at San Carlos under 
harsh conditions.
  In the 1890's, small groups of Yavapai, some with permission from 
Federal authorities and some without, left San Carlos and returned to 
their aboriginal homelands. In the Verde Valley, where the best 
agricultural lands had been occupied by non-Indians, a group of Yavapai 
settled on a remote corner of the Whipple Barracks Military Reserve, In 
1935, with strong support from citizens of Prescott, Congress 
established a 71-acre reservation for the Yavapai Indians from lands 
formerly part of the Whipple Barracks. Contiguous lands were added to 
the reservation in 1956 and 1965, bringing its total area to its 
present-day 1,400 acres.
  The Yavapai-Prescott Tribe's need to determine the extent of its 
rights to water, and to identify and secure long term water sources, is 
critical to its future economic development and self-determination. 
Since the 1970's the tribe has pursued a plan to transform their 
reservation into a model of economic development, while preserving open 
space and scenic areas. In the past decade, a tribally owned Sheraton 
Hotel and conference center and a new shopping center have been built 
on the reservation. A small bingo operation was established, and the 
tribe negotiated Arizona's first gaming compact with the State. These 
developments, and planned future developments, all require reliable, 
long-term water supplies.
  The city of Prescott, like the tribe, has a need to secure future 
water supplies that is reinforced by the requirements of Arizona's 
Groundwater Management Act. That 1980 act designated as active 
management areas [AMA's] certain areas in the State where withdrawals 
from ground water aquifers exceed replenishment, and set strict 
guidelines for water use and requirements of municipalities to insure a 
100-year future water supply. To meet the goals of the Prescott AMA, to 
achieve a safe yield balance between ground water withdrawal and 
replenishment by the year 2025, and to provide sufficient water to 
sustain anticipated future growth in the Prescott area, the city must 
look to sources outside its AMA to meet future demands for water.
  To assist Prescott in complying with the mandates of the 1980 act and 
to meet the city's future water needs, Arizona's Department of Water 
Resources recommended, and in 1983 the Secretary of Interior made, an 
allocation to Prescott of 7,167 acre-feet of Colorado River water from 
the Central Arizona Project. The Secretary also allocated 500 acre-feet 
of Central Arizona Project water to the Yavapai-Prescott Tribe. Because 
neither the tribe nor the city can take direct delivery of Colorado 
River water from project facilities, it was assumed that they would be 
able to exchange their allocations for rights to receive equivalent 
amounts of water from the Verde River.
  It is now clear that the plan to exchange rights to Colorado River 
water for Verde River water has serious drawbacks. For Prescott, a city 
of 28,000 people, and the tribe, with an enrollment of less than 200 
members, the costs of pumping exchange water are prohibitive. In 
addition, diverting significant amounts of water from the Verde River, 
whose seasonable flows vary greatly, would likely have adverse impacts 
on threatened or endangered species in and along the river. The costs 
and potential adverse environmental impacts of the proposed water 
exchanges underscore the need for the city and tribe to secure 
alternative water supplies to meet future needs while complying with 
the requirements of Federal and State law.
  Pending water rights litigation has produced considerable uncertainty 
regarding rights to water in the Verde River basin. The Yavapai-
Prescott Tribe's legal claims to water, like those of Prescott and 
other water users in the basin, are currently before Arizona Superior 
Court as part of the General Adjudication of the Gila River System and 
Source. Initiated by the State of Arizona in 1978, this litigation is 
intended to determine the respective rights of more than 20,000 
claimants who have brought more than 66,000 claims to the waters of the 
Gila system. As trustee for the Yavapai-Prescott Tribe, the United 
States has filed claims in the Gila adjudication for 2,670 acre-feet of 
water annually for domestic, municipal, commercial, industrial, and 
irrigation purposes.
  The Gila adjudication, which is expected to take decades to complete, 
would eventually quantify and confirm the tribe's reserved water 
rights. In all likelihood, the water source for this reserved right 
would be one or more sources already used for the city of Prescott's 
water supply, and the tribe's water would be taken away from the city's 
supply. If so, the tribe and the United States might have build to 
separate water treatment and distribution system which would needlessly 
duplicate the city's existing system, at considerable cost. With the 
outcome of litigation unknown, neither the tribe nor the city can plan 
for long term development with any certainty as to water supplies.
  The tribe's relationship with its non-Indian neighbors has been one 
of cooperation and peaceful coexistence ever since the people of 
Prescott helped the Tribe secure its reservation in 1935. This 
cooperation has increasingly extended to matters of water. As a result 
of a series of agreements first entered into in 1972, the city 
continues to provide all residential and commercial water users on the 
reservation with water and sewer service. In view of this history, a 
common interest in securing additional long term water supplies, and a 
desire to avoid a protracted struggle over the region's water rights, 
the city and the tribe sought an out-of-court settlement of their 
respective claims to water.
  Beginning in 1992, representatives of the tribe, Prescott, the Chino 
Valley Irrigation District, which has claims to the waters of Granite 
Creek, the State of Arizona, and the United States negotiated a 
settlement agreement to resolve all water rights claims between and 
among them, and to provide the tribe with the long term, reliable wager 
supplies needed to develop and sustain the tribe and its reservation.
  The cornerstone of the settlement agreement provides for the tribe's 
existing water service agreement with Prescott to be continued in 
perpetuity, with the tribe having priority access to 550 acre-feet of 
water annually during times of severe water shortage. Prescott also 
will execute a trust agreement whereby it shall hold 3,169 acre-feet 
per year of grandfathered groundwater rights it holds under Arizona law 
as security for its performance of the water service agreement.
  The settlement agreement directs the Secretary of the Interior to 
assist the tribe and Prescott in arranging for the assignment of the 
tribe's contract and the city's subcontract for Central Arizona Project 
water to a third party--or parties--in Arizona. Prescott will use the 
funds it receives from the assignment to acquire replacement water 
supplies, thus ensuring its ability to meet its commitment to serve the 
tribe in perpetuity and to supply its own future development. The tribe 
can use its funds to defray its water service costs or to develop or 
maintain on-reservation water facilities.
  The settlement agreement also provides for the tribe's on-reservation 
use of ground water for municipal, industrial, recreational, and 
agricultural purposes to continue under a water use plan to be 
developed by the tribe. The tribe already has entered into a memorandum 
of understanding with the Arizona Department of Water Resources 
providing for consultation in establishing a plan which will be 
compatible with Arizona's Groundwater Management Act.
  The settlement requires the Yavapai-Prescott Tribe to waive its 
claims to water in exchange for the water rights secured under the 
settlement agreement and the water service agreement, for the funds 
that will be realized from the assignment of its Central Arizona 
Project water contract, and for an appropriation of $200,000 by the 
State of Arizona to its settlement fund. S. 1146, and a companion House 
bill, H.R. 2514, introduced by Representative Bob Stump, will ratify 
the settlement agreement and authorize the necessary actions by the 
Secretary of the Interior to implement it.
  The Federal cost of the Yavapai-Prescott settlement is small by any 
standard. S. 1146 specifically authorizes $200,000 to the Secretary for 
costs associated with judicial confirmation of the settlement, and such 
sums necessary to establish, maintain, and operate a small water 
guaging station on Granite Creek. As noted previously, the 
administration, in anticipation of enactment of S. 1146 or similar 
legislation, requested $300,000 for the Yavapai-Prescott settlement in 
its fiscal year 1995 budget. I am very pleased to note that both the 
House and Senate have included these funds in the fiscal year 1995 
Interior appropriations bill.
  Mr. President, there can be no more fundamental duty and 
responsibility of a trustee for people in an arid land than to secure 
for them reliable, long-term water supplies. Enactment of S. 1146 and 
implementation of the Yavapai-Prescott settlement agreement will enable 
the United States to fulfill its responsibility to this small tribe in 
a creative and cost-effective manner.
  This settlement is tailored to the unique history and circumstances 
of the tribe and its neighbors. It is the only one wherein a 
municipality will assume the United States' obligation to provide water 
to a tribe for all purposes under the terms of a perpetual water 
service contract. It resolves issues that, if otherwise left to 
litigation, would threaten the substantial good will developed between 
the tribe and its neighbors.
  Mr. President, I wish to commend all of the people who have been 
involved in the long and arduous process that has produced the many 
agreements that comprise this settlement. I deeply regret that one of 
these people, Patricia McGee, will not see it completed. From 1972 
until her death in April of this year, Pat McGee served as president of 
the Yavapai Tribe for all but 2 years. She was tireless in her efforts 
to improve education, health, and economic conditions of the tribe, and 
to preserve its culture. She strongly believed that a negotiated 
settlement of the tribe's water rights was in everyone's best interest. 
The settlement that S. 1146 would ratify and implement is a tribute to 
Pat McGee's vision and leadership.
  Mr. President, I ask unanimous consent to print in the Record copies 
of resolutions recently passed by the mayor and council of the city of 
Prescott and by the governing body of the Yavapai-Prescott Tribe.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

  Resolution No. 94-05 of the Governing Body of the Yavapai-Prescott 
                              Indian Tribe

       Whereas, the Tribe's Water Rights Settlement Act is going 
     through the legislative process in the U.S. Congress, as S. 
     1146 in the U.S. Senate and H.R. 2514 in the U.S. House of 
     Representatives, and
       Whereas, the major purpose of the legislation is to ratify 
     several intergovernmental agreements called for in the 
     legislation, and
       Whereas, the Water Service Agreement and the Water Rights 
     Settlement Agreement have been successfully negotiated by the 
     Tribe's representatives and the other parties involved, and
       Whereas, the Tribe's negotiators have reported that the 
     above-named agreements have reached a point, after several 
     years of negotiations, whereby the language of the documents 
     is now in an acceptable form which serves the Tribe's best 
     interests without alienating the other parties to a point 
     where they will not enter into the agreements, and
       Whereas, the Board of Directors concurs with the findings 
     of the Tribe's negotiators.
       Now, therefore, be it resolved that: The Board of Directors 
     approves the aforesaid Water Service Agreement and Water 
     Settlement Agreement and hereby authorizes the Board 
     President or Vice President to execute the two agreements at 
     an appropriate time, to be set by the various parties 
     involved.


                             certification

       I, the undersigned, as Vice President of the Board of 
     Directors for the Yavapai-Prescott Indian Tribe, hereby 
     certify that the Board is composed of five (5) members, of 
     whom 4 members, constituting a quorum, were present at a 
     regular meeting on February 11, 1994, and that the foregoing 
     resolution was adopted by a vote of 3 for, 0 against, under 
     the authority of the Articles of Association, Article VI, 
     Section 1(g).

                                                Robert G. Ogo,

                               Vice President, Board of Directors,
                                    Yavapai-Prescott Indian tribe.
                                  ____


                          Resolution No. 2691

       Whereas, the Yavapai-Prescott Indian Reservation is located 
     adjacent to the City of Prescott; and
       Whereas, the City of Prescott operates and maintains a 
     municipal water and sewer system within the limits of the 
     City of Prescott and adjoining areas; and
       Whereas, there is presently litigation pending wherein the 
     City of Prescott and the Yavapai-Prescott Tribe are disputing 
     the rights of water within the watershed which provides water 
     for Prescott's municipal water system; and
       Whereas, it would be to the benefit of the citizens of 
     Prescott and the members of the Yavapai-Prescott Indian Tribe 
     for the parties to provide for the continuation of water and 
     sewer service to the Yavapai-Prescott Indian Reservation, and 
     to resolve the foregoing litigation.
       Now, therefore, be it resolved by the mayor and council of 
     the city of Prescott as follows:
       Section 1. That, the City of Prescott hereby approves the 
     Intergovernmental Agreement with the Yavapai-Prescott Indian 
     Tribe entitled Water Rights Settlement Agreement, attached 
     hereto as Exhibit ``A''.
       Section 2. That, the City of Prescott hereby approves the 
     Intergovernmental Agreement with the Yavapai-Prescott Indian 
     Tribe entitled Water Service Agreement, attached hereto as 
     Exhibit ``B''.
       Section 3. That, the Mayor and Staff are hereby authorized 
     to execute the attached Intergovernmental Agreement and to 
     take any and all steps deemed necessary to accomplish the 
     above.

                          ____________________