WATER DELIVERY CONTRACT AMENDMENTS; WATER LEASE.

SEC. 407. WATER DELIVERY CONTRACT AMENDMENTS; WATER LEASE. (a) The Secretary is authorized and directed to amend the CAP water delivery contract between the United States and the community dated December 11, 1980 (herein referred to as the “Community CAP Delivery Contract”), as follows: (1) to extend the term of such contract to December 31, 2099, and to provide for its subsequent renewal upon terms and conditions to be agreed upon by the parties prior to the expiration of the extended term thereof; (2) to authorize the Community to lease the CAP water to which the Community is entitled under the Community CAP Delivery Contract to the City of Phoenix under the terms and conditions of the Project Water lease set forth in exhibit “20.2.2” to the Agreement for a term commencing January 1, 2001, and ending December 31, 2099. (b) Notwithstanding any other provision of law, the amendments to the Community CAP Delivery Contract set forth in exhibit “20.2.1” to the Agreement and the terms and conditions of the Project Water Lease set forth in exhibit “20.2.2” to the Agreement are hereby authorized, approved, and confirmed. (c) The United States shall not impose upon the Community the operation, maintenance and replacement charges described and set forth in section “6(b)” of the Community CAP Delivery Contract or any other charge with respect to CAP water delivered or required to 104 STAT. 4488be delivered to the City of Phoenix as lessee of the Project Water Lease herein authorized. (d) The Community and the Secretary shall lease to the City of Phoenix, for a term commencing on January 1, 2001, and ending December 2099, for consideration in an amount agreed to by the Community and the City to be paid by the City to the Community, upon those reflected in the Project Water Lease set forth in exhibit “20.2.2” to the Agreement, the four thousand three hundred acre-feet of CAP water to which the Community is entitled under the Community CAP Delivery Contract. The Project Water Lease shall specifically provide that— (1) the City of Phoenix, in accordance with its obligations under the Project Water Leases, shall pay all operation, maintenance and replacement costs of such water to the United States, or, if directed by the Secretary, to the CAWCD: Provided, That such payments shall not be commenced earlier than October 1, 1999; (2) except as otherwise provided in the Project Water Lease, the City of Phoenix shall not be obligated to pay water service capital charges or municipal and industrial subcontract charges or any other charges or payment for such CAP water other than the operation, maintenance, and replacement costs and lease payments as set forth in this subsection. (e) For the purpose of determining the allocation and repayment of costs of the CAP as provided in Article 9.3 of Contract Numbered 14–06–W–245 shall be United States of America and the CAWCD dated December 15, 1972, and any amendment or revision thereof, the costs associated with the delivery of CAP water pursuant to the Project Water Lease referred to in subsection (d) shall be nonreimbursable, and such costs shall be excluded from CAWCD’s repayment obligation. (f) Notwithstanding any other provision statutory of or common law, the Community may, with the approval of the Secretary, lease water provided to the Community under section 406 of this Act for its fair market value for a term not to exceed 100 years as provided in the Agreement but in no event for use outside Pima, Pinal or Maricopa Counties, State of Arizona. If some or all of the water provided to the Community under section 406 of this Act is CAP water, the provisions of subsections of (a), (b), (c), (d), and (e) of this section 407 shall apply to any lease of such water. (g) Except as authorized by this section, no water made available to the Community or its members pursuant to the Agreement may be sold, leased, transferred, or in any way used off the Community’s reservation. (h) If water is acquired from the Salt and Verde watershed pursuant to section (406)(a)(3), no such water may be sold, leased, transferred, or in any way be used off of the Community’s reservation.