[Congressional Record (Bound Edition), Volume 149 (2003), Part 5]
[Senate]
[Pages 6258-6263]
[From the U.S. Government Publishing Office, www.gpo.gov]




         ZUNI INDIAN TRIBE WATER RIGHTS SETTLEMENT ACT OF 2003

  Mr. BENNETT. Mr. President, I ask unanimous consent that the Senate 
now proceed to the immediate consideration of Calendar Item No. 31, S. 
222.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 222) to approve the settlement of water rights 
     claims of the Zuni Indian Tribe in Apache County, Arizona, 
     and for other purposes.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. BENNETT. Mr. President, I ask unanimous consent that the bill be 
read a third time and passed, the motion to reconsider be laid upon the 
table, and that any statements relating to the bill be printed in the 
Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 222) was read the third time and passed, as follows:

                                 S. 222

       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 ``Zuni Indian Tribe Water 
     Rights Settlement Act of 2003''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress makes the following findings:
       (1) It is the policy of the United States, in keeping with 
     its trust responsibility to Indian tribes, to promote Indian 
     self-determination, religious freedom, political and cultural 
     integrity, and economic self-sufficiency, and to settle, 
     wherever possible, the water rights claims of Indian tribes 
     without lengthy and costly litigation.
       (2) Quantification of rights to water and development of 
     facilities needed to use tribal water supplies effectively is 
     essential to the development of viable Indian reservation 
     communities, particularly in arid western States.
       (3) On August 28, 1984, and by actions subsequent thereto, 
     the United States established a reservation for the Zuni 
     Indian Tribe in Apache County, Arizona upstream from the 
     confluence of the Little Colorado and Zuni Rivers for long-
     standing religious and sustenance activities.
       (4) The water rights of all water users in the Little 
     Colorado River basin in Arizona have been in litigation since 
     1979, in the Superior Court of the State of Arizona in and 
     for the County of Apache in Civil No. 6417, In re The General 
     Adjudication of All Rights to Use Water in the Little 
     Colorado River System and Source.
       (5) Recognizing that the final resolution of the Zuni 
     Indian Tribe's water claims through litigation will take many 
     years and entail great expense to all parties, continue to 
     limit the Tribe's access to water with economic, social, and 
     cultural consequences to the Tribe, prolong uncertainty as to 
     the availability of water supplies, and seriously impair the 
     long-term economic planning and development of all parties, 
     the Tribe and neighboring non-Indians have sought to settle 
     their disputes to water and reduce the burdens of litigation.
       (6) After more than 4 years of negotiations, which included 
     participation by representatives of the United States, the 
     Zuni Indian Tribe, the State of Arizona, and neighboring non-
     Indian communities in the Little Colorado River basin, the 
     parties have entered into a Settlement Agreement to resolve 
     all of the Zuni Indian Tribe's water rights claims and to 
     assist the Tribe in acquiring surface water rights, to 
     provide for the Tribe's use of groundwater, and to provide 
     for the wetland restoration of the Tribe's lands in Arizona.
       (7) To facilitate the wetland restoration project 
     contemplated under the Settlement Agreement, the Zuni Indian 
     Tribe acquired certain lands along the Little Colorado River 
     near or adjacent to its Reservation that are important for 
     the success of the project and will likely acquire a small 
     amount of similarly situated additional lands. The parties 
     have agreed not to object to the United States taking title 
     to certain of these lands into trust status; other lands 
     shall remain in tribal fee status. The parties have worked 
     extensively to resolve various governmental concerns 
     regarding use of and control over those lands, and to provide 
     a successful model for these types of situations, the State, 
     local, and tribal governments intend to enter into an 
     Intergovernmental Agreement that addresses the parties' 
     governmental concerns.
       (8) Pursuant to the Settlement Agreement, the neighboring 
     non-Indian entities will assist in the Tribe's acquisition of 
     surface water rights and development of groundwater, store 
     surface water supplies for the Zuni Indian Tribe, and make 
     substantial additional contributions to carry out the 
     Settlement Agreement's provisions.
       (9) To advance the goals of Federal Indian policy and 
     consistent with 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 contribute funds for the rehabilitation of religious 
     riparian areas and other purposes to enable the Tribe to use 
     its water entitlement in developing its Reservation.
       (b) Purposes.--The purposes of this Act are--
       (1) to approve, ratify, and confirm the Settlement 
     Agreement entered into by the Tribe and neighboring non-
     Indians;
       (2) to authorize and direct the Secretary of the Interior 
     to execute and perform the Settlement Agreement and related 
     waivers;
       (3) to authorize and direct the United States to take legal 
     title and hold such title to certain lands in trust for the 
     benefit of the Zuni Indian Tribe; and
       (4) to authorize the actions, agreements, and 
     appropriations as provided for in the Settlement Agreement 
     and this Act.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Eastern lcr basin.--The term ``Eastern LCR basin'' 
     means the portion of the Little Colorado River basin in 
     Arizona upstream of the confluence of Silver Creek and the 
     Little Colorado River, as identified on Exhibit 2.10 of the 
     Settlement Agreement.
       (2) Fund.--The term ``Fund'' means the Zuni Indian Tribe 
     Water Rights Development Fund established by section 6(a).
       (3) Intergovernmental agreement.--The term 
     ``Intergovernmental Agreement'' means the intergovernmental 
     agreement between the Zuni Indian Tribe, Apache County, 
     Arizona and the State of Arizona described in article 6 of 
     the Settlement Agreement.
       (4) Pumping protection agreement.--The term ``Pumping 
     Protection Agreement'' means an agreement, described in 
     article 5 of the Settlement Agreement, between the Zuni 
     Tribe, the United States on behalf of the Tribe, and a local 
     landowner under which the landowner agrees to limit pumping 
     of groundwater on his lands in exchange for a waiver of 
     certain claims by the Zuni Tribe and the United States on 
     behalf of the Tribe.
       (5) Reservation; zuni heaven reservation.--The term 
     ``Reservation'' or ``Zuni Heaven Reservation'', also referred 
     to as ``Kolhu:wala:wa'', means the following property in 
     Apache County, Arizona: Sections 26, 27, 28, 33, 34, and 35, 
     Township 15 North, Range 26 East, Gila and Salt River Base 
     and Meridian; and Sections 2, 3, 4, 9, 10, 11, 13, 14, 15, 
     16, 23, 26, and 27, Township 14 North,

[[Page 6259]]

     Range 26 East, Gila and Salt River Base and Meridian.
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (7) Settlement agreement.--The term ``Settlement 
     Agreement'' means that agreement dated June 7, 2002, together 
     with all exhibits thereto. The parties to the Settlement 
     Agreement include the Zuni Indian Tribe and its members, the 
     United States on behalf of the Tribe and its members, the 
     State of Arizona, the Arizona Game and Fish Commission, the 
     Arizona State Land Department, the Arizona State Parks Board, 
     the St. Johns Irrigation and Ditch Co., the Lyman Water Co., 
     the Round Valley Water Users' Association, the Salt River 
     Project Agricultural Improvement and Power District, the 
     Tucson Electric Power Company, the City of St. Johns, the 
     Town of Eagar, and the Town of Springerville.
       (8) SRP.--The term ``SRP'' means the Salt River Project 
     Agricultural Improvement and Power District, a political 
     subdivision of the State of Arizona.
       (9) TEP.--The term ``TEP'' means Tucson Electric Power 
     Company.
       (10) Tribe, zuni tribe, or zuni indian tribe.--The terms 
     ``Tribe'', ``Zuni Tribe'', or ``Zuni Indian Tribe'' means the 
     body politic and federally recognized Indian nation, and its 
     members.
       (11) Zuni lands.--The term ``Zuni Lands'' means all the 
     following lands, in the State of Arizona, that, on the 
     effective date described in section 9(a), are--
       (A) within the Zuni Heaven Reservation;
       (B) held in trust by the United States for the benefit of 
     the Tribe or its members; or
       (C) held in fee within the Little Colorado River basin by 
     or for the Tribe.

     SEC. 4. AUTHORIZATION, RATIFICATIONS, AND CONFIRMATIONS.

       (a) Settlement Agreement.--To the extent the Settlement 
     Agreement does not conflict with the provisions of this Act, 
     such Settlement Agreement is hereby approved, ratified, 
     confirmed, and declared to be valid. The Secretary is 
     authorized and directed to execute the Settlement Agreement 
     and any amendments approved by the parties necessary to make 
     the Settlement Agreement consistent with this Act. The 
     Secretary is further authorized to perform any actions 
     required by the Settlement Agreement and any amendments to 
     the Settlement Agreement that may be mutually agreed upon by 
     the parties to the Settlement Agreement.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Zuni Indian Tribe Water Rights 
     Development Fund established in section 6(a), $19,250,000, to 
     be allocated by the Secretary as follows:
       (1) $3,500,000 for fiscal year 2004, to be used for the 
     acquisition of water rights and associated lands, and other 
     activities carried out, by the Zuni Tribe to facilitate the 
     enforceability of the Settlement Agreement, including the 
     acquisition of at least 2,350 acre-feet per year of water 
     rights before the deadline described in section 9(b).
       (2) $15,750,000, of which $5,250,000 shall be made 
     available for each of fiscal years 2004, 2005, and 2006, to 
     take actions necessary to restore, rehabilitate, and maintain 
     the Zuni Heaven Reservation, including the Sacred Lake, 
     wetlands, and riparian areas as provided for in the 
     Settlement Agreement and under this Act.
       (c) Other Agreements.--Except as provided in section 9, the 
     following 3 separate agreements, together with all amendments 
     thereto, are approved, ratified, confirmed, and declared to 
     be valid:
       (1) The agreement between SRP, the Zuni Tribe, and the 
     United States on behalf of the Tribe, dated June 7, 2002.
       (2) The agreement between TEP, the Zuni Tribe, and the 
     United States on behalf of the Tribe, dated June 7, 2002.
       (3) The agreement between the Arizona State Land 
     Department, the Zuni Tribe, and the United States on behalf 
     of the Tribe, dated June 7, 2002.

     SEC. 5. TRUST LANDS.

       (a) New Trust Lands.--Upon satisfaction of the conditions 
     in paragraph 6.2 of the Settlement Agreement, and after the 
     requirements of section 9(a) have been met, the Secretary 
     shall take the legal title of the following lands into trust 
     for the benefit of the Zuni Tribe:
       (1) In T. 14 N., R. 27 E., Gila and Salt River Base and 
     Meridian:
       (A) Section 13: SW 1/4, S 1/2 NE 1/4 SE 1/4, W 1/2 SE 1/4, 
     SE 1/4 SE 1/4;
       (B) Section 23: N 1/2, N 1/2 SW 1/4, N 1/2 SE 1/4, SE 1/4 
     SE 1/4, N 1/2 SW 1/4 SE 1/4, SE 1/4 SW 1/4 SE 1/4;
       (C) Section 24: NW 1/4, SW 1/4, S 1/2 NE 1/4, N 1/2 SE 1/4; 
     and
       (D) Section 25: N 1/2 NE 1/4, SE 1/4 NE 1/4, NE 1/4 SE 1/4.
       (2) In T. 14 N., R. 28 E., Gila and Salt River Base and 
     Meridian:
       (A) Section 19: W 1/2 E 1/2 NW 1/4, W 1/2 NW 1/4, W 1/2 NE 
     1/4 SW 1/4, NW 1/4 SW 1/4, S 1/2 SW 1/4;
       (B) Section 29: SW 1/4 SW 1/4 NW 1/4, NW 1/4 NW 1/4 SW 1/4, 
     S 1/2 N 1/2 SW 1/4, S 1/2 SW 1/4, S 1/2 NW 1/4 SE 1/4, SW 1/4 
     SE 1/4;
       (C) Section 30: W 1/2 , SE 1/4; and
       (D) Section 31: N 1/2 NE 1/4, N 1/2 S 1/2 NE 1/4, S 1/2 SE 
     1/4 NE 1/4, NW 1/4, E 1/2 SW 1/4, N 1/2 NW 1/4 SW 1/4, SE 1/4 
     NW 1/4 SW 1/4, E 1/2 SW 1/4 SW 1/4, SW 1/4 SW 1/4 SW 1/4.
       (b) Future Trust Lands.--Upon satisfaction of the 
     conditions in paragraph 6.2 of the Settlement Agreement, 
     after the requirements of section 9(a) have been met, and 
     upon acquisition by the Zuni Tribe, the Secretary shall take 
     the legal title of the following lands into trust for the 
     benefit of the Zuni Tribe:
       (1) In T. 14 N., R. 26E., Gila and Salt River Base and 
     Meridian: Section 25: N 1/2 NE 1/4, N 1/2 S 1/2 NE 1/4, NW 1/
     4, N 1/2 NE 1/4 SW 1/4, NE 1/4 NW 1/4 SW 1/4.
       (2) In T. 14 N., R. 27 E., Gila and Salt River Base and 
     Meridian:
       (A) Section 14: SE 1/4 SW 1/4, SE 1/4;
       (B) Section 16: S 1/2 SW 1/4 SE 1/4;
       (C) Section 19: S 1/2 SE 1/4 SE 1/4;
       (D) Section 20: S 1/2 SW 1/4 SW 1/4, E 1/2 SE 1/4 SE 1/4;
       (E) Section 21: N 1/2 NE 1/4, E 1/2 NE 1/4 NW 1/4, SE 1/4 
     NW 1/4, W 1/2 SW 1/4 NE 1/4, N 1/2 NE 1/4 SW 1/4, SW 1/4 NE 
     1/4 SW 1/4, E 1/2 NW 1/4 SW 1/4, SW 1/4 NW 1/4 SW 1/4, W 1/2 
     SW 1/4 SW 1/4;
       (F) Section 22: SW 1/4 NE 1/4 NE 1/4, NW 1/4 NE 1/4, S 1/2 
     NE 1/4, N 1/2 NW 1/4, SE 1/4 NW1/4, N 1/2 SW 1/4 NW 1/4, SE 
     1/4 SW 1/4 NW 1/4, N 1/2 N 1/2 SE 1/4, N 1/2 NE 1/4 SW 1/4;
       (G) Section 24: N 1/2 NE 1/4, S 1/2 SE 1/4;
       (H) Section 29: N 1/2 N 1/2;
       (I) Section 30: N 1/2 N 1/2, N 1/2 S 1/2 NW 1/4, N 1/2 SW 
     1/4 NE 1/4; and
       (J) Section 36: SE 1/4 SE 1/4 NE 1/4, NE 1/4 NE 1/4 SE 1/4.
       (3) In T. 14 N., R. 28 E., Gila and Salt River Base and 
     Meridian:
       (A) Section 18: S 1/2 NE 1/4, NE 1/4 SW 1/4, NE 1/4 NW 1/4 
     SW 1/4, S 1/2 NW 1/4 SW 1/4, S 1/2 SW 1/4, N 1/2 SE 1/4, N 1/
     2 SW 1/4 SE 1/4, SE 1/4 SE 1/4;
       (B) Section 30: S 1/2 NE 1/4, W 1/2 NW 1/4 NE 1/4; and
       (C) Section 32: N 1/2 NW 1/4 NE 1/4, SW 1/4 NE 1/4, S 1/2 
     SE 1/4 NE 1/4, NW 1/4, SW 1/4, N 1/2 SE 1/4, SW 1/4 SE 1/4, N 
     1/2 SE 1/4 SE 1/4, SW 1/4 SE 1/4 SE 1/4.
       (c) New Reservation Lands.--Upon satisfaction of the 
     conditions in paragraph 6.2 of the Settlement Agreement, 
     after the requirements of section 9(a) have been met, and 
     upon acquisition by the Zuni Tribe, the Secretary shall take 
     the legal title of the following lands in Arizona into trust 
     for the benefit of the Zuni Tribe and make such lands part of 
     the Zuni Indian Tribe Reservation in Arizona: Section 34, T. 
     14 N., R. 26 E., Gila and Salt River Base and Meridian.
       (d) Limitation on Secretarial Discretion.--The Secretary 
     shall have no discretion regarding the acquisitions described 
     in subsections (a), (b), and (c).
       (e) Lands Remaining in Fee Status.--The Zuni Tribe may seek 
     to have the legal title to additional lands in Arizona, other 
     than the lands described in subsection (a), (b), or (c), 
     taken into trust by the United States for the benefit of the 
     Zuni Indian Tribe pursuant only to an Act of Congress enacted 
     after the date of enactment of this Act specifically 
     authorizing the transfer for the benefit of the Zuni Tribe.
       (f) Final Agency Action.--Any written certification by the 
     Secretary under subparagraph 6.2.B of the Settlement 
     Agreement constitutes final agency action under the 
     Administrative Procedure Act and is reviewable as provided 
     for under chapter 7 of title 5, United States Code.
       (g) No Federal Water Rights.--Lands taken into trust 
     pursuant to subsection (a), (b), or (c) shall not have 
     Federal reserved rights to surface water or groundwater.
       (h) State Water Rights.--The water rights and uses for the 
     lands taken into trust pursuant to subsection (a) or (c) must 
     be determined under subparagraph 4.1.A and article 5 of the 
     Settlement Agreement. With respect to the lands taken into 
     trust pursuant to subsection (b), the Zuni Tribe retains any 
     rights or claims to water associated with these lands under 
     State law, subject to the terms of the Settlement Agreement.
       (i) Forfeiture and Abandonment.--Water rights that are 
     appurtenant to lands taken into trust pursuant to subsection 
     (a), (b), or (c) shall not be subject to forfeiture and 
     abandonment.
       (j) Ad Valorem Taxes.--With respect to lands that are taken 
     into trust pursuant to subsection (a) or (b), the Zuni Tribe 
     shall make payments in lieu of all current and future State, 
     county, and local ad valorem property taxes that would 
     otherwise be applicable to those lands if they were not in 
     trust.
       (k) Authority of Tribe.--For purposes of complying with 
     this section and article 6 of the Settlement Agreement, the 
     Tribe is authorized to enter into--
       (1) the Intergovernmental Agreement between the Zuni Tribe, 
     Apache County, Arizona, and the State of Arizona; and
       (2) any intergovernmental agreement required to be entered 
     into by the Tribe under the terms of the Intergovernmental 
     Agreement.
       (l) Federal Acknowledgement of Intergovernmental 
     Agreements.--
       (1) In general.--The Secretary shall acknowledge the terms 
     of any intergovernmental agreement entered into by the Tribe 
     under this section.
       (2) No abrogation.--The Secretary shall not seek to 
     abrogate, in any administrative or judicial action, the terms 
     of any intergovernmental agreement that are consistent

[[Page 6260]]

     with subparagraph 6.2.A of the Settlement Agreement and this 
     Act.
       (3) Removal.--
       (A) In general.--Except as provided in subparagraph (B), if 
     a judicial action is commenced during a dispute over any 
     intergovernmental agreement entered into under this section, 
     and the United States is allowed to intervene in such action, 
     the United States shall not remove such action to the Federal 
     courts.
       (B) Exception.--The United States may seek removal if--
       (i) the action concerns the Secretary's decision regarding 
     the issuance of rights-of-way under section 8(c);
       (ii) the action concerns the authority of a Federal agency 
     to administer programs or the issuance of a permit under--

       (I) the Federal Water Pollution Control Act (33 U.S.C. 1251 
     et seq.);
       (II) the Safe Drinking Water Act (42 U.S.C. 300f et seq.);
       (III) the Clean Air Act (42 U.S.C. 7401 et seq.); or
       (IV) any other Federal law specifically addressed in 
     intergovernmental agreements; or

       (iii) the intergovernmental agreement is inconsistent with 
     a Federal law for the protection of civil rights, public 
     health, or welfare.
       (m) Rule of Construction.--Nothing in this Act shall be 
     construed to affect the application of the Act of May 25, 
     1918 (25 U.S.C. 211) within the State of Arizona.
       (n) Disclaimer.--Nothing in this section repeals, modifies, 
     amends, changes, or otherwise affects the Secretary's 
     obligations to the Zuni Tribe pursuant to the Act entitled 
     ``An Act to convey certain lands to the Zuni Indian Tribe for 
     religious purposes'' approved August 28, 1984 (Public Law 98-
     408; 98 Stat. 1533) (and as amended by the Zuni Land 
     Conservation Act of 1990 (Public Law 101-486; 104 Stat. 
     1174)).

     SEC. 6. DEVELOPMENT FUND.

       (a) Establishment of the Fund.--
       (1) In general.--There is established in the Treasury of 
     the United States a fund to be known as the ``Zuni Indian 
     Tribe Water Rights Development Fund'', to be managed and 
     invested by the Secretary, consisting of--
       (A) the amounts authorized to be appropriated in section 
     4(b); and
       (B) the appropriation to be contributed by the State of 
     Arizona pursuant to paragraph 7.6 of the Settlement 
     Agreement.
       (2) Additional deposits.--The Secretary shall deposit in 
     the Fund any other monies paid to the Secretary on behalf of 
     the Zuni Tribe pursuant to the Settlement Agreement.
       (b) Management of the Fund.--The Secretary shall manage the 
     Fund, make investments from the Fund, and make monies 
     available from the Fund for distribution to the Zuni Tribe 
     consistent with the American Indian Trust Fund Management 
     Reform Act of 1994 (25 U.S.C. 4001 et seq.) (referred to in 
     this section as the ``Trust Fund Reform Act''), this Act, and 
     the Settlement Agreement.
       (c) Investment of the Fund.--The Secretary shall invest 
     amounts in the Fund in accordance with--
       (1) the Act of April 1, 1880 (21 Stat. 70, ch. 41, 25 
     U.S.C. 161);
       (2) the first section of the Act of June 24, 1938 (52 Stat. 
     1037, ch. 648, 25 U.S.C. 162a); and
       (3) subsection (b).
       (d) Availability of Amounts From the Fund.--The funds 
     authorized to be appropriated pursuant to section 3104(b)(2) 
     and funds contributed by the State of Arizona pursuant to 
     paragraph 7.6 of the Settlement Agreement shall be available 
     for expenditure or withdrawal only after the requirements of 
     section 9(a) have been met.
       (e) Expenditures and Withdrawal.--
       (1) Tribal management plan.--
       (A) In general.--The Zuni Tribe may withdraw all or part of 
     the Fund on approval by the Secretary of a tribal management 
     plan as described in the Trust Fund Reform Act.
       (B) Requirements.--In addition to the requirements under 
     the Trust Fund Reform Act, the tribal management plan shall 
     require that the Zuni Tribe spend any funds in accordance 
     with the purposes described in section 4(b).
       (2) Enforcement.--The Secretary may take judicial or 
     administrative action to enforce the provisions of any tribal 
     management plan to ensure that any monies withdrawn from the 
     Fund under the plan are used in accordance with this Act.
       (3) Liability.--If the Zuni Tribe exercises the right to 
     withdraw monies from the Fund, neither the Secretary nor the 
     Secretary of the Treasury shall retain any liability for the 
     expenditure or investment of the monies withdrawn.
       (4) Expenditure plan.--
       (A) In general.--The Zuni Tribe shall submit to the 
     Secretary for approval an expenditure plan for any portion of 
     the funds made available under this Act that the Zuni Tribe 
     does not withdraw under this subsection.
       (B) Description.--The expenditure plan shall describe the 
     manner in which, and the purposes for which, funds of the 
     Zuni Tribe remaining in the Fund will be used.
       (C) Approval.--On receipt of an expenditure plan under 
     subparagraph (A), the Secretary shall approve the plan if the 
     Secretary determines that the plan is reasonable and 
     consistent with this Act.
       (5) Annual report.--The Zuni Tribe shall submit to the 
     Secretary an annual report that describes all expenditures 
     from the Fund during the year covered by the report.
       (f) Funds for Acquisition of Water Rights.--
       (1) Water rights acquisitions.--Notwithstanding subsection 
     (e), the funds authorized to be appropriated pursuant to 
     section 4(b)(1)--
       (A) shall be available upon appropriation for use in 
     accordance with section 4(b)(1); and
       (B) shall be distributed by the Secretary to the Zuni Tribe 
     on receipt by the Secretary from the Zuni Tribe of a written 
     notice and a tribal council resolution that describe the 
     purposes for which the funds will be used.
       (2) Right to set off.--In the event the requirements of 
     section 9(a) have not been met and the Settlement Agreement 
     has become null and void under section 9(b), the United 
     States shall be entitled to set off any funds expended or 
     withdrawn from the amount appropriated pursuant to section 
     4(b)(1), together with any interest accrued, against any 
     claims asserted by the Zuni Tribe against the United States 
     relating to water rights at the Zuni Heaven Reservation.
       (3) Water rights.--Any water rights acquired with funds 
     described in paragraph (1) shall be credited against any 
     water rights secured by the Zuni Tribe, or the United States 
     on behalf of the Zuni Tribe, for the Zuni Heaven Reservation 
     in the Little Colorado River General Stream Adjudication or 
     in any future settlement of claims for those water rights.
       (g) No Per Capita Distributions.--No part of the Fund shall 
     be distributed on a per capita basis to members of the Zuni 
     Tribe.

     SEC. 7. CLAIMS EXTINGUISHMENT; WAIVERS AND RELEASES.

       (a) Full Satisfaction of Members' Claims.--
       (1) In general.--The benefits realized by the Tribe and its 
     members under this Act, including retention of any claims and 
     rights, shall constitute full and complete satisfaction of 
     all members' claims for--
       (A) water rights under Federal, State, and other laws 
     (including claims for water rights in groundwater, surface 
     water, and effluent) for Zuni Lands from time immemorial 
     through the effective date described in section 9(a) and any 
     time thereafter; and
       (B) injuries to water rights under Federal, State, and 
     other laws (including claims for water rights in groundwater, 
     surface water, and effluent, claims for damages for 
     deprivation of water rights, and claims for changes to 
     underground water table levels) for Zuni Lands from time 
     immemorial through the effective date described in section 
     9(a).
       (2) No recognition or establishment of individual water 
     right.--Nothing in this Act recognizes or establishes any 
     right of a member of the Tribe to water on the Reservation.
       (b) Tribe and United States Authorization and Water 
     Quantity Waivers.--The Tribe, on behalf of itself and its 
     members and the Secretary on behalf of the United States in 
     its capacity as trustee for the Zuni Tribe and its members, 
     are authorized, as part of the performance of their 
     obligations under the Settlement Agreement, to execute a 
     waiver and release, subject to paragraph 11.4 of the 
     Settlement Agreement, for claims against the State of 
     Arizona, or any agency or political subdivision thereof, or 
     any other person, entity, corporation, or municipal 
     corporation, under Federal, State, or other law for any and 
     all--
       (1) past, present, and future claims to water rights 
     (including water rights in groundwater, surface water, and 
     effluent) for Zuni Lands from time immemorial through the 
     effective date described in section 9(a) and any time 
     thereafter, except for claims within the Zuni Protection Area 
     as provided in article 5 of the Settlement Agreement;
       (2) past and present claims for injuries to water rights 
     (including water rights in groundwater, surface water, and 
     effluent and including claims for damages for deprivation of 
     water rights and any claims for changes to underground water 
     table levels) for Zuni Lands from time immemorial through the 
     effective date described in section 9(a); and
       (3) past, present, and future claims for water rights and 
     injuries to water rights (including water rights in 
     groundwater, surface water, and effluent and including any 
     claims for damages for deprivation of water rights and any 
     claims for changes to underground water table levels) from 
     time immemorial through the effective date described in 
     section 9(a), and any time thereafter, for lands outside of 
     Zuni Lands but located within the Little Colorado River basin 
     in Arizona, based upon aboriginal occupancy of lands by the 
     Zuni Tribe or its predecessors.
       (c) Tribal Waivers Against the United States.--The Tribe is 
     authorized, as part of the performance of its obligations 
     under the Settlement Agreement, to execute a waiver and 
     release, subject to paragraphs 11.4 and 11.6 of the 
     Settlement Agreement, for claims against the United States 
     (acting in its capacity as trustee for the Zuni Tribe or its 
     members, or otherwise acting on behalf of the Zuni Tribe or 
     its members), including any agencies, officials, or employees 
     thereof, for any and all--

[[Page 6261]]

       (1) past, present, and future claims to water rights 
     (including water rights in groundwater, surface water, and 
     effluent) for Zuni Lands, from time immemorial through the 
     effective date described in section 9(a) and any time 
     thereafter;
       (2) past and present claims for injuries to water rights 
     (including water rights in groundwater, surface water, and 
     effluent and any claims for damages for deprivation of water 
     rights) for Zuni Lands from time immemorial through the 
     effective date described in section 9(a);
       (3) past, present, and future claims for water rights and 
     injuries to water rights (including water rights in 
     groundwater, surface water, and effluent and any claims for 
     damages for deprivation of water rights) from time immemorial 
     through the effective date described in section 9(a), and any 
     time thereafter, for lands outside of Zuni Lands but located 
     within the Little Colorado River basin in Arizona, based upon 
     aboriginal occupancy of lands by the Zuni Tribe or its 
     predecessors;
       (4) past and present claims for failure to protect, 
     acquire, or develop water rights of, or failure to protect 
     water quality for, the Zuni Tribe within the Little Colorado 
     River basin in Arizona from time immemorial through the 
     effective date described in section 9(a); and
       (5) claims for breach of the trust responsibility of the 
     United States to the Zuni Tribe arising out of the 
     negotiation of the Settlement Agreement or this Act.
       (d) Tribal Waiver of Water Quality Claims and Interference 
     With Trust Claims.--
       (1) Claims against the state and others.--
       (A) Interference with trust responsibility.--The Tribe, on 
     behalf of itself and its members, is authorized, as part of 
     the performance of its obligations under the Settlement 
     Agreement, to waive and release all claims against the State 
     of Arizona, or any agency or political subdivision thereof, 
     or any other person, entity, corporation, or municipal 
     corporation under Federal, State, or other law, for claims of 
     interference with the trust responsibility of the United 
     States to the Zuni Tribe arising out of the negotiation of 
     the Settlement Agreement or this Act.
       (B) Injury or threat of injury to water quality.--The 
     Tribe, on behalf of itself and its members, is authorized, as 
     part of the performance of its obligations under the 
     Settlement Agreement, to waive and release, subject to 
     paragraphs 11.4, 11.6, and 11.7 of the Settlement Agreement, 
     all claims against the State of Arizona, or any agency or 
     political subdivision thereof, or any other person, entity, 
     corporation, or municipal corporation under Federal, State, 
     or other law, for--
       (i) any and all past and present claims, including natural 
     resource damage claims under the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9601 et seq.), the Oil Pollution Act of 1990 (33 U.S.C. 2701 
     et seq.), or any other applicable statute, for injury to 
     water quality accruing from time immemorial through the 
     effective date described in section 9(a), for lands within 
     the Little Colorado River basin in the State of Arizona; and
       (ii) any and all future claims, including natural resource 
     damage claims under the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
     seq.), the Oil Pollution Act of 1990 (33 U.S.C. 2701 et 
     seq.), or any other applicable statute, for injury or threat 
     of injury to water quality, accruing after the effective date 
     described in section 9(a), for any lands within the Eastern 
     LCR basin caused by--

       (I) the lawful diversion or use of surface water;
       (II) the lawful withdrawal or use of underground water, 
     except within the Zuni Protection Area, as provided in 
     article 5 of the Settlement Agreement;
       (III) the Parties' performance of any obligations under the 
     Settlement Agreement;
       (IV) the discharge of oil associated with routine physical 
     or mechanical maintenance of wells or diversion structures 
     not inconsistent with applicable law;
       (V) the discharge of oil associated with routine start-up 
     and operation of well pumps not inconsistent with applicable 
     law; or
       (VI) any combination of the causes described in subclauses 
     (I) through (V).

       (2) Claims of the united states.--The Tribe, on behalf of 
     itself and its members, is authorized to waive its right to 
     request that the United States bring--
       (A) any claims for injuries to water quality under the 
     natural resource damage provisions of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601 et seq.), the Oil Pollution Act of 1990 
     (33 U.S.C. 2701 et seq.) or any other applicable statute, for 
     lands within the Little Colorado River Basin in the State of 
     Arizona, accruing from time immemorial through the effective 
     date described in section 9(a); and
       (B) any future claims for injuries or threat of injury to 
     water quality under the natural resource damage provisions of 
     the Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601 et seq.), the Oil 
     Pollution Act of 1990 (33 U.S.C. 2701 et seq.), or any other 
     applicable statute, accruing after the effective date 
     described in section 9(a), for any lands within the Eastern 
     LCR basin, caused by--
       (i) the lawful diversion or use of surface water;
       (ii) the lawful withdrawal or use of underground water, 
     except within the Zuni Protection Area, as provided in 
     article 5 of the Settlement Agreement;
       (iii) the Parties' performance of any obligations under the 
     Settlement Agreement;
       (iv) the discharge of oil associated with routine physical 
     or mechanical maintenance of wells or diversion structures 
     not inconsistent with applicable law;
       (v) the discharge of oil associated with routine start-up 
     and operation of well pumps not inconsistent with applicable 
     law; or
       (vi) any combination of the causes described in clauses (i) 
     through (v).
       (3) Limitations.--Notwithstanding the authorization for the 
     Tribe's waiver of future water quality claims in paragraph 
     (1)(B)(ii) and the waiver in paragraph (2)(B), the Tribe, on 
     behalf of itself and its members, retains any statutory 
     claims for injury or threat of injury to water quality under 
     the Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601 et seq.) and the Oil 
     Pollution Act of 1990 (33 U.S.C. 2701 et seq.), as described 
     in subparagraph 11.4(D)(3) and (4) of the Settlement 
     Agreement, that accrue at least 30 years after the effective 
     date described in section 9(a).
       (e) Waiver of United States Water Quality Claims Related to 
     Settlement Land and Water.--
       (1) Past and present claims.--As part of the performance of 
     its obligations under the Settlement Agreement, the United 
     States waives and releases, subject to the retentions in 
     paragraphs 11.4, 11.6 and 11.7 of the Settlement Agreement, 
     all claims against the State of Arizona, or any agency or 
     political subdivision thereof, or any other person, entity, 
     corporation, or municipal corporation for--
       (A) all past and present common law claims accruing from 
     time immemorial through the effective date described in 
     section 9(a) arising from or relating to water quality in 
     which the injury asserted is to the Tribe's interest in 
     water, trust land, and natural resources in the Little 
     Colorado River basin in the State of Arizona; and
       (B) all past and present natural resource damage claims 
     accruing through the effective date described in section 9(a) 
     arising from or relating to water quality in which the claim 
     is based on injury to natural resources or threat to natural 
     resources in the Little Colorado River basin in Arizona, only 
     for those cases in which the United States, through the 
     Secretary or other designated Federal official, would act on 
     behalf of the Tribe as a natural resource trustee pursuant to 
     the National Contingency Plan, as set forth, as of the date 
     of enactment of this Act, in section 300.600(b)(2) of title 
     40, Code of Federal Regulations.
       (2) Future claims.--As part of the performance of its 
     obligations under the Settlement Agreement, the United States 
     waives and releases, subject to the retentions in paragraphs 
     11.4, 11.6 and 11.7 of the Settlement Agreement, the State of 
     Arizona, or any agency or political subdivision thereof, or 
     any other person, entity, corporation, or municipal 
     corporation for--
       (A) all future common law claims arising from or relating 
     to water quality in which the injury or threat of injury 
     asserted is to the Tribe's interest in water, trust land, and 
     natural resources in the Eastern LCR basin in Arizona 
     accruing after the effective date described in section 9(a) 
     caused by--
       (i) the lawful diversion or use of surface water;
       (ii) the lawful withdrawal or use of underground water, 
     except within the Zuni Protection Area, as provided in 
     article 5 of the Settlement Agreement;
       (iii) the Parties' performance of any obligations under the 
     Settlement Agreement;
       (iv) the discharge of oil associated with routine physical 
     or mechanical maintenance of wells or diversion structures 
     not inconsistent with applicable law;
       (v) the discharge of oil associated with routine start-up 
     and operation of well pumps not inconsistent with applicable 
     law; or
       (vi) any combination of the causes described in clauses (i) 
     through (v); and
       (B) all future natural resource damage claims accruing 
     after the effective date described in section 9(a) arising 
     from or relating to water quality in which the claim is based 
     on injury to natural resources or threat to natural resources 
     in the Eastern LCR basin in Arizona, only for those cases in 
     which the United States, through the Secretary or other 
     designated Federal official, would act on behalf of the Tribe 
     as a natural resource trustee pursuant to the National 
     Contingency Plan, as set forth, as of the date of enactment 
     of this Act, in section 300.600(b)(2) of title 40, Code of 
     Federal Regulations, caused by--
       (i) the lawful diversion or use of surface water;
       (ii) the lawful withdrawal or use of underground water, 
     except within the Zuni Protection Area as provided in article 
     5 of the Settlement Agreement;

[[Page 6262]]

       (iii) the Parties' performance of their obligations under 
     this Settlement Agreement;
       (iv) the discharge of oil associated with routine physical 
     or mechanical maintenance of wells or diversion structures 
     not inconsistent with applicable law;
       (v) the discharge of oil associated with routine start-up 
     and operation of well pumps not inconsistent with applicable 
     law; or
       (vi) any combination of the causes described in clauses (i) 
     through (v).
       (f) Effect.--Subject to subsections (b) and (e), nothing in 
     this Act or the Settlement Agreement affects any right of the 
     United States, or the State of Arizona, to take any actions, 
     including enforcement actions, under any laws (including 
     regulations) relating to human health, safety and the 
     environment.

     SEC. 8. MISCELLANEOUS PROVISIONS.

       (a) Waiver of Sovereign Immunity.--If any party to the 
     Settlement Agreement or a Pumping Protection Agreement files 
     a lawsuit only relating directly to the interpretation or 
     enforcement of this Act, the Settlement Agreement, an 
     agreement described in paragraph (1), (2), or (3) of section 
     4(c), or a Pumping Protection Agreement, naming the United 
     States or the Tribe as a party, or if any other landowner or 
     water user in the Little Colorado River basin in Arizona 
     files a lawsuit only relating directly to the interpretation 
     or enforcement of Article 11, the rights of de minimis users 
     in subparagraph 4.2.D or the rights of underground water 
     users under Article 5 of the Settlement Agreement, naming the 
     United States or the Tribe as a party--
       (1) the United States, the Tribe, or both may be added as a 
     party to any such litigation, and any claim by the United 
     States or the Tribe to sovereign immunity from such suit is 
     hereby waived, other than with respect to claims for monetary 
     awards except as specifically provided for in the Settlement 
     Agreement; and
       (2) the Tribe may waive its sovereign immunity from suit in 
     the Superior Court of Apache County, Arizona for the limited 
     purposes of enforcing the terms of the Intergovernmental 
     Agreement, and any intergovernmental agreement required to be 
     entered into by the Tribe under the terms of the 
     Intergovernmental Agreement, other than with respect to 
     claims for monetary awards except as specifically provided in 
     the Intergovernmental Agreement.
       (b) Tribal Use of Water.--
       (1) In general.--With respect to water rights made 
     available under the Settlement Agreement and used on the Zuni 
     Heaven Reservation--
       (A) such water rights shall be held in trust by the United 
     States in perpetuity, and shall not be subject to forfeiture 
     or abandonment;
       (B) State law shall not apply to water uses on the 
     Reservation;
       (C) the State of Arizona may not regulate or tax such water 
     rights or uses (except that the court with jurisdiction over 
     the decree entered pursuant to the Settlement Agreement or 
     the Norviel Decree Court may assess administrative fees for 
     delivery of this water);
       (D) subject to paragraph 7.7 of the Settlement Agreement, 
     the Zuni Tribe shall use water made available to the Zuni 
     Tribe under the Settlement Agreement on the Zuni Heaven 
     Reservation for any use it deems advisable;
       (E) water use by the Zuni Tribe or the United States on 
     behalf of the Zuni Tribe for wildlife or instream flow use, 
     or for irrigation to establish or maintain wetland on the 
     Reservation, shall be considered to be consistent with the 
     purposes of the Reservation; and
       (F)(i) not later than 3 years after the deadline described 
     in section 9(b), the Zuni Tribe shall adopt a water code to 
     be approved by the Secretary for regulation of water use on 
     the lands identified in subsections (a) and (b) of section 5 
     that is reasonably equivalent to State water law (including 
     statutes relating to dam safety and groundwater management); 
     and
       (ii) until such date as the Zuni Tribe adopts a water code 
     described in clause (i), the Secretary, in consultation with 
     the State of Arizona, shall administer water use and water 
     regulation on lands described in that clause in a manner that 
     is reasonably equivalent to State law (including statutes 
     relating to dam safety and groundwater management).
       (2) Limitation.--
       (A) In general.--Except as provided in subparagraph (B), 
     the Zuni Tribe or the United States shall not sell, lease, 
     transfer, or transport water made available for use on the 
     Zuni Heaven Reservation to any other place.
       (B) Exception.--Water made available to the Zuni Tribe or 
     the United States for use on the Zuni Heaven Reservation may 
     be severed and transferred from the Reservation to other Zuni 
     Lands if the severance and transfer is accomplished in 
     accordance with State law (and once transferred to any lands 
     held in fee, such water shall be subject to State law).
       (c) Rights-of-Way.--
       (1) New and future trust land.--The land taken into trust 
     under subsections (a) and (b) of section 5 shall be subject 
     to existing easements and rights-of-way.
       (2) Additional rights-of-way.--
       (A) In general.--Notwithstanding any other provision of 
     law, the Secretary, in consultation with the Tribe, shall 
     grant additional rights-of-way or expansions of existing 
     rights-of-way for roads, utilities, and other accommodations 
     to adjoining landowners if--
       (i) the proposed right-of-way is necessary to the needs of 
     the applicant;
       (ii) the proposed right-of-way will not cause significant 
     and substantial harm to the Tribe's wetland restoration 
     project or religious practices; and
       (iii) the proposed right-of-way acquisition will comply 
     with the procedures in part 169 of title 25, Code of Federal 
     Regulations, not inconsistent with this subsection and other 
     generally applicable Federal laws unrelated to the 
     acquisition of interests across trust lands.
       (B) Alternatives.--If the criteria described in clauses (i) 
     through (iii) of subparagraph (A) are not met, the Secretary 
     may propose an alternative right-of-way, or other 
     accommodation that complies with the criteria.
       (d) Certain Claims Prohibited.--The United States shall 
     make no claims for reimbursement of costs arising out of the 
     implementation of this Act or the Settlement Agreement 
     against any Indian-owned land within the Tribe's Reservation, 
     and no assessment shall be made in regard to such costs 
     against such lands.
       (e) Vested Rights.--Except as described in paragraph 5.3 of 
     the Settlement Agreement (recognizing the Zuni Tribe's use of 
     1,500 acre-feet per annum of groundwater) this Act and the 
     Settlement Agreement do not create any vested right to 
     groundwater under Federal or State law, or any priority to 
     the use of groundwater that would be superior to any other 
     right or use of groundwater under Federal or State law, 
     whether through this Act, the Settlement Agreement, or by 
     incorporation of any abstract, agreement, or stipulation 
     prepared under the Settlement Agreement. Notwithstanding the 
     preceding sentence, the rights of parties to the agreements 
     referred to in paragraph (1), (2), or (3) of section 4(c) and 
     paragraph 5.8 of the Settlement Agreement, as among 
     themselves, shall be as stated in those agreements.
       (f) Other Claims.--Nothing in the Settlement Agreement or 
     this Act quantifies or otherwise affects the water rights, 
     claims, or entitlements to water of any Indian tribe, band, 
     or community, other than the Zuni Indian Tribe.
       (g) No Major Federal Action.--
       (1) In general.--Execution of the Settlement Agreement by 
     the Secretary as provided for in section 4(a) shall not 
     constitute major Federal action under the National 
     Environmental Policy Act (42 U.S.C. 4321 et seq.).
       (2) Settlement agreement.--In implementing the Settlement 
     Agreement, the Secretary shall comply with all aspects of--
       (A) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.);
       (B) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.); and
       (C) all other applicable environmental laws (including 
     regulations).

     SEC. 9. EFFECTIVE DATE FOR WAIVER AND RELEASE AUTHORIZATIONS.

       (a) In General.--The waiver and release authorizations 
     contained in subsections (b) and (c) of section 7 shall 
     become effective as of the date the Secretary causes to be 
     published in the Federal Register a statement of all the 
     following findings:
       (1) This Act has been enacted in a form approved by the 
     parties in paragraph 3.1.A of the Settlement Agreement.
       (2) The funds authorized by section 4(b) have been 
     appropriated and deposited into the Fund.
       (3) The State of Arizona has appropriated and deposited 
     into the Fund the amount required by paragraph 7.6 of the 
     Settlement Agreement.
       (4) The Zuni Indian Tribe has either purchased or acquired 
     the right to purchase at least 2,350 acre-feet per annum of 
     surface water rights, or waived this condition as provided in 
     paragraph 3.2 of the Settlement Agreement.
       (5) Pursuant to subparagraph 3.1.D of the Settlement 
     Agreement, the severance and transfer of surface water rights 
     that the Tribe owns or has the right to purchase have been 
     conditionally approved, or the Tribe has waived this 
     condition as provided in paragraph 3.2 of the Settlement 
     Agreement.
       (6) Pursuant to subparagraph 3.1.E of the Settlement 
     Agreement, the Tribe and Lyman Water Company have executed an 
     agreement relating to the process of the severance and 
     transfer of surface water rights acquired by the Zuni Tribe 
     or the United States, the pass-through, use, or storage of 
     the Tribe's surface water rights in Lyman Lake, and the 
     operation of Lyman Dam.
       (7) Pursuant to subparagraph 3.1.F of the Settlement 
     Agreement, all the parties to the Settlement Agreement have 
     agreed and stipulated to certain Arizona Game and Fish 
     abstracts of water uses.
       (8) Pursuant to subparagraph 3.1.G of the Settlement 
     Agreement, all parties to the Settlement Agreement have 
     agreed to the location of an observation well and that well 
     has been installed.

[[Page 6263]]

       (9) Pursuant to subparagraph 3.1.H of the Settlement 
     Agreement, the Zuni Tribe, Apache County, Arizona and the 
     State of Arizona have executed an Intergovernmental Agreement 
     that satisfies all of the conditions in paragraph 6.2 of the 
     Settlement Agreement.
       (10) The Zuni Tribe has acquired title to the section of 
     land adjacent to the Zuni Heaven Reservation described as 
     Section 34, Township 14 North, Range 26 East, Gila and Salt 
     River Base and Meridian.
       (11) The Settlement Agreement has been modified if and to 
     the extent it is in conflict with this Act and such 
     modification has been agreed to by all the parties to the 
     Settlement Agreement.
       (12) A court of competent jurisdiction has approved the 
     Settlement Agreement by a final judgment and decree.
       (b) Deadline for Effective Date.--If the publication in the 
     Federal Register required under subsection (a) has not 
     occurred by December 31, 2006, sections 4 and 5, and any 
     agreements entered into pursuant to sections 4 and 5 
     (including the Settlement Agreement and the Intergovernmental 
     Agreement) shall not thereafter be effective and shall be 
     null and void. Any funds and the interest accrued thereon 
     appropriated pursuant to section 4(b)(2) shall revert to the 
     Treasury, and any funds and the interest accrued thereon 
     appropriated pursuant to paragraph 7.6 of the Settlement 
     Agreement shall revert to the State of Arizona.

                          ____________________