SATISFACTION OF CLAIMS

Section 10(a) provides that the benefits realized by the Tribe and its members under the Settlement Agreement and this Act constitute full satisfaction of all tribal and all tribal members' past, present and future claims to water rights (including groundwater, surface water and effluent) under Federal and State laws, and that nothing in the Act recognizes or establishes any right of any tribal member to water on the reservation.

(b) Authorizes and requires the Tribe and the Secretary, as a condition precedent to implementation of the Act, to waive and release all claims of water rights or injuries to water rights (including groundwater, surface water and effluent) from and after the effective date of the Act, which the Tribe and its members may have against the United States, the State of Arizona or any of its agencies or political subdivisions, or against any other person, corporation, or municipal corporation, under federal or state law, except as provided in section 9(d).

(c) Bars the United States, in its own right or on behalf of the Tribe, from asserting any claims arising under federal or state law based upon water rights or injuries to water rights of the Tribe and its members, against the State of Arizona or any of its agencies or political subdivisions, or against any other person, corporation or municipal corporation.

(d) Reserves the right of the Tribe, and the United States on behalf of the Tribe, to assert past and future water rights claims as to all reservation lands if the requirements of section 12(a) are not timely met and the Act does not become effective.

(e) Provides that the U.S. 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, U.S. Code, of any arbitration award under the Water Service Agreement

(f) Asserts the right of the Tribe, or the United States on behalf of the Tribe, to assert and maintain any claims for the breach or enforcement of the Settlement Agreement or the Water Service Agreement.

(g) States that this Act shall have no effect on the water rights or claims related to any trust allotment of any member of the Tribe which is located outside the exterior boundaries of the reservation.

(h) States that payments made to Prescott under the Act shall be in full satisfaction of any claims which Prescott may have that are related to the allocation, reallocation, relinquishment or delivery of CAP water.

MISCELLANEOUS PROVISIONS

Section 11(a) waives the sovereign immunity of the United States and the Tribe with respect to any lawsuit brought in Federal District Court relating only and directly to the interpretation or enforcement of the Settlement Agreement or this Act. 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 waived.

(b) Bars the United States from making any claims or assessments against any of the Tribe's reservation lands for reimbursement of costs arising out of the implementation of the Settlement Agreement or this Act.

(c) Authorizes the Tribe to establish a ground water management plan for the reservation which, except to be consistent with the Water Service Agreement, 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. The subsection permits the Tribe to enter into a Memorandum of Understanding with the Arizona Department of Water Resources for consultation and, notwithstanding any other law, to establish a tribal water code for the management, regulation and control of the water resources granted it under the settlement. The code shall not authorize any action inconsistent with the trust ownership of the Tribe's water resources.

(d) Directs the Secretary, acting through the United States Geological Survey, to 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 Chino Valley Irrigation District in allocating the surface flows of Grante Creek as provided in the Settlement Agreement.

EFFECTIVE DATE

Section 12(a) makes the effectiveness of the Tribe's and the United States' waiver of claims authorized in section 10(b) contingent upon the Secretary publishing in the Federal Register a statement of findings that:

(1XA) The Secretary has determined that an acceptable party, or parties, have executed contracts for the assignments of the Tribe's Central Arizona Project contract and the city of Prescott's Central Arizona Project 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 Arizona Superior Court has approved, no later than December 31, 1994, the stipulation attached to the Settlement Agreement providing for dismissal of the Tribe's water rights claims;

(3) The Settlement Agreement has been modified to the extent it may be in conflict with this Act and has been executed by the Secretary;

(4) The State of Arizona has appropriated and deposited into the Tribe's trust account 200,000 as required by the Settlement Agreement.

(b) Provides that if the actions described in paragraphs (1), (2), (3), and (4) of subsection 12(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.

OTHER CLAIMS

Section 13(a) disclaims any interpretation of the Settlement Agreement and this Act as quantifying or otherwise adversely affecting the land and water rights, claims or entitlements to water of any Arizona Indian tribe, band or community, other than the Yavapai-Prescott Tribe.

(b) Disclaims any interpretation of this Act as affecting the water rights or the water rights claims of any Federal agency other than the Bureau of Indian Affairs on behalf of the Yavapai-Prescott Tribe.

EXHIBIT A

The draft Yavapai-Prescott Indian Tribe Water Rights Settlement Agreement, dated February 3, 1994, and draft waiver and release of claims and stipulation for entry in the Superior Court of the State of Arizona in the Gila River adjudication, are as follows:

AGREEMENT

This agreement, dated as of

1994, is entered into by and between the United States of America, the State of Arizona, the Yavapai-Prescott Indian Tribe, the City of Prescott and the Chino Valley Irrigation District.

1.0 RECITALS

1.1. The representatives of the United States of America, the State of Arizona, the Yavapai-Prescott Indian Tribe, the City of Prescott and the Chino Valley Irrigation District have agreed to permanently settle the water rights of the Yavapai-Prescott Indian Tribe and its members, to finally resolve certain pending litigation on water rights.

1.2. Section 2(a)(1) of the Yavapai-Prescott Indian Tribe Water Rights Settlement Act of 1994, Pub. L.

Stat. (1994), states that it is the policy of the United States, in fulfillment of its trust responsibility to 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.

1.3. The objective of this settlement is to resolve certain outstanding water-related litigation and to settle, once and for always, the water rights of the Yavapai-Prescott Indian Tribe and its members based upon Federal, State and other laws by confirming to the Yavapai-Prescott Indian Tribe sufficient water from various sources to develop lands within the Yavapai-Prescott Indian Tribe's Reservation.

Now, therefore, in consideration of the premises and of the promises and agreements hereinafter set forth, the parties hereto agree as follows:

2.0 DEFINITIONS

This Agreement will employ abbreviated terms which will have the meanings stated below.

2.1. "Act" means the Yavapai-Prescott Indian Tribe Water Rights Settlement Act of 1994, Pub. L.

Stat. (1004). The Act is attached as Exhibit 2.1 to this Agreement.

2.2. "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.). 2.3. "CVID" means the Chino Valley Irrigation District, an irrigation district organized under the laws of the State of Arizona.

2.4. "Divert" means to remove surface water from its natural course or location by means of a ditch, canal, flume, bypass, pipeline, conduit, well, pump or other act of man. "Diversion" means the act of diverting.

2.5. "Effluent" means water which, after being diverted as surface water or withdrawn as groundwater, has been used for domestic, municipal or industrial purposes and which is available for reuse for any purpose, whether or not the water has been treated to improve its quality.

2.6. "Gila River Adjudication" means that action pending in the Superior Court of the State of Arizona in and for the County of Maricopa styled as In Re the General Adjudication of all Rights to Use Water in the Gila River System and Source, W-1 (Salt), W-2 (Verde), W-3 (Upper Gila) and W-4 (San Pedro), including subsequent enforcement proceedings therein.

2.7. "Groundwater" means subsurface water which is not defined as surface water or effluent pursuant to Subparagraphs 2.13 and 2.5 hereof.

2.8. "Parties" means the entities represented by the signatories to this Agreement.

2.9. "Prescott" means the City of Prescott, an Arizona municipal corporation.

2.10. "Prescott Active Management Area" means the Active Management Area, established pursuant to Arizona law and encompassing the little Chino and upper Agua Fria sub-basins, wherein the groundwater management goal is to achieve and thereafter maintain a long-term balance between annual groundwater withdrawals and annual natural and artificial groundwater recharge by the year 2025 or such earlier date as may be determined by the director of the Arizona Department of Water Re

sources.

2.11. "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 Indian Tribe.

2.12. "Secretary" means the Secretary of the United States Department of the Interior or his duly authorized representative.

2.13. "Surface Water" means all water on or beneath the surface of the earth which is appropriable under applicable law.

2.14. "Tribe" means the Yavapi-Prescott Indian Tribe, a tribe of Yavapai Indians duly recognized by the Secretary. 2.15. "Water Service Agreement" means that agreement between the Yavapai-Prescott Indian Tribe and the City of Prescott dated 1994. The Water Service Agreement

is attached as Exhibit 2.15 to this Agreement.

2.16. "Withdraw" means to remove groundwater from its natural location by means of a well, pump, pipeline, ditch, conduit or other act of man. "Withdrawal" means the act of withdrawing.

3.0 EXHIBITS

This Agreement includes as exhibits additional and subsidiary documents and agreements in the form of legislation, contracts, stipulations for settlement of litigation, and waivers of claims, which are attached and incorporated herein as follows:

A. The Act, a copy of which is attached hereto as Exhibit 2.1 and incorporated herein by this reference.

B. The Water Service Agreement, a copy of which is attached hereto as Exhibit 2.15 and incorporated herein by reference in Subparagraph 5.1.

C. A Memorandum of Understanding between the Yavapai-Prescott Indian Tribe and the State of Arizona, a copy of which is attached hereto as Exhibit 7.1 and incorporated herein by this reference.

D. A Waiver and Release of Claims, a copy of which is attached hereto as Exhibit 9.1 and incorporated herein by this reference.

E. A Stipulation and Form of Judgment, a copy of which is attached hereto as Exhibit 9.5 and incorporated herein by this reference.

4.0 WATER ENTITLEMENT

Water for the settlement will be provided to the Tribe from the sources and in the quantities outlined and defined in this Paragraph 4.0 and Paragraphs 5.0 and 6.0 hereof.

4.1. In addition to water supplies provided to the Tribe pursuant to Subparagraphs 4.2, 4.3 and 4.4 hereof, Reservation water users shall be provided with water service from Prescott pursuant to the Water Service Agreement, as further described in Paragraph 5.0 hereof and the Water Service Agreement. The Water Service Agreement provides for water service to Reservation users as Prescott customers, with priority access to five hundred and fifty (550) acre-feet per annum, hereinafter "AFA", during times of severe shortage.

4.2. In addition to water supplies provided to the Tribe pursuant to Subparagraphs 4.1, 4.3 and 4.4 hereof, the Tribe shall have the right to store, divert and beneficially