Washington, D.C.- Today Senator John McCain spoke before the United States Senate Committee on Indian Affairs regarding the Yavapai-Prescott Tribe Water Rights Settlement Act and gave the following remarks: MR. CHAIRMAN, I appreciate your scheduling S. 2975, the Yavapai-Prescott Indian Tribe Water Rights Settlement Act, for markup this morning. At the appropriate time I will offer an amendment in the nature of a substitute that makes changes in S. 2975 that address the primary concerns raised in testimony at the Committee's hearing on July 22. S. 2975 and the substitute would ratify a settlement agreement among the Yavapai-Prescott Indian Tribe, the city of Prescott, the Chino Valley Irrigation District, the State of Arizona and the United States. This agreement would settle all water rights claims between and among the parties. The cornerstone of the settlement is the city's commitment to fulfill the Tribe's water, sewer and effluent service needs in perpetuity. The tribe's surface and groundwater rights also would be quantified. Under the settlement, the United States would acquire the Central Arizona Project contract of the Tribe and the CAP subcontract of the city for a price to be negotiated with the Secretary. In turn, the city would use its proceds to secure additional water supplies. The Tribe would use its proceeds to defray the cost of water use on the reservation. The State of Arizona has agreed to contribute $200,000 to the settlement. The Secretary, who needs all the water he can acquire to meet his settlement goals for Arizona tribes, would have discretion to use the acquired water for this purpose as he determines is most appropriate. The changes in the substitute reduce the cost of S. 2975 to approximately $8.5 million. This is less than a third of the $30,000,000 authorized to acquire another alternative to supply the Tribe and city that was authorized by the Fort McDowell Settlement Act of 1990. S. 2975 would repeal the authorization for that $30,000,000 alternative. Mr. Chairman, this settlement will enable the city and the Tribe to continue to work together in a spirit of partnership and cooperation well into the 21st century. It will eliminate existing litigation and preclude future litigation between the Tribe, the Federal Government on the Tribe's behalf, and non-Indian water users in the Prescott area. It will provide what the Administration's witness at our hearing on S. 2975 described as "probably the lowest-cost way of providing water to the Tribe in settlement of their water claims". The settlement will ensure the long term, reliable, secure water supplies that are essential to the Tribe's and the city's future survival, and it will do so in an environmentally responsible manner. Mr. Chairman and members of the Committee, S. 2975, as amended by my substitute, will fairly, honorably fulfill the United States trust responsibility to the Yavapai-Prescott Tribe with respect to water. I urge the Committee to adopt the substitute and report S. 2975 as amended to the full Senate. # # #