08-02-84
NAVAJO NATION
WATER CODE

                Title 22, Navajo Tribal Code, Chapter 7

           N A V A J O   N A T I O N   W A T E R   C O D E

                           Table of Contents

SUBCHAPTER 1:  GENERAL PROVISIONS

     101  Declaration of Purposes; Assertion of Authority
     102  Application of the Code
     103  Nature of Ownership
     104  Waters of the Navajo Nation Defined

SUBCHAPTER 2:  NOTICE OF ENACTMENT AND EFFECT

     201  Notice Required
     202  Contents of Notice
     203  Notice - How Given

SUBCHAPTER 3:  RESOURCES COMMITTEE OF THE NAVAJO TRIBAL COUNCIL

     301  Resources Committee - General Powers
     302  Disqualification
     303  Water Reserves
     304  Water Assessments
     305  Designations of Local Management Areas
     306  Large User Water Permits
     307  Charges for Water Uses
     308  Resources Committee - Method of Operation

SUBCHAPTER 4:  DIVISION OF WATER RESOURCES

     401  Information Function
     402  Enforcement Function
     403  Advisory Function
     404  Administrative Function

SUBCHAPTER 5:  GUIDELINES FOR ADMINISTRATION

     501  General Policy Provisions
     502  Guidelines for Making Most Effective Use of Available
          Resources
     503  Additional Policy Guidelines

SUBCHAPTER 6:  DESCRIPTIONS OF USE AND APPLICATIONS FOR PERMIT

     601  Existing Use Inventory
     602  Description of Use - Required
     603  Application for Permit - Required
     604  Description of Use and Application for Permit - Contents
     605  Interim Permits
     606  Fees
     607  Public Notice of Descriptions of Use and Applications for
          Permit - Initial Notice
     608  Public Notice of Applications for Permit - Continuing
          Operation
     609  Objections Affecting Description of Use and Applications for
          Permit
     610  Form and Content of Objections
     611  Reply by Applicant
     612  Hearing Regarding Issuance of Permits
     613  Public Comment
     614  Investigation and Review of Permit Issuance
     615  Issuance or Denial of Permits

SUBCHAPTER 7:  WATER USE PERMITS

     701  Form
     702  Information Contained
     703  Conditions
     704  Entry on Land
     705  Effect
     706  Revocability
     707  Modification

SUBCHAPTER 8:  DETERMINATION OF AVAILABILITY AND NEED

     801  When Proceeding Available
     802  Purpose
     803  Notice of Proceeding
     804  Division of Water Resources - Investigation Initiation
     805  Division of Water Resources - Information Gathering
     806  Division of Water Resources - Report
     807  Proposed Determination of Availability and Need
     808  Determination of Availability and Need - Contents
     809  Notice of Hearing
     810  Hearing
     811  Final Determination of Availability and Need
     812  Subsequent Action
     813  Appeal

SUBCHAPTER 9:  TRANSFER AND LOSS OF RIGHTS

     901  Transfer, Assignment, Descent, Distribution and Creation of
          Security Interest
     902  Loss by Nonuse
     903  Loss by Adverse Possession, Prescription, Estoppel, or
          Acquiescence
     904  Outside Proceedings

SUBCHAPTER 10:  GENERAL HEARING PROVISIONS

    1001  Applicability
    1002  Notice
    1003  Time and Place of Hearing
    1004  Continuances
    1005  Presiding Officer
    1006  Forms of Evidence
    1007  Consolidation of Hearings
    1008  Recording
    1009  Decision

SUBCHAPTER 11:  APPEALS

    1101  Appeals Provided For
    1102  Notice of Appeal - Jurisdiction
    1103  Notice of Appeal - Service
    1104  Transmittal of Record
    1105  Oral Argument
    1106  Briefs
    1107  Scope of Review
    1103  Court of Appeals - Additional Powers

SUBCHAPTER 12:  DEFINITIONS

    1201  Director of the Division of Water Resources
    1202  Domestic Use
    1203  Effective Date
    1204  Municipal Use
    1205  Person

SUBCHAPTER 13:  PROHIBITED ACTS

    1301  Waste of Water Prohibited
    1302  Unauthorized Actions Affecting Waters Prohibited
    1303  Obstruction of Navajo Nation Employees
    1304  Misstatement of Material Facts
    1305  Sanctions for Code Violations

SUBCHAPTER 14:  MISCELLANEOUS PROVISIONS

    1401  Severability
    1402  Construction
    1403  Review of Authority
    1404  Extension of Time Limits
    1405  Representation

                Title 22, Navajo Tribal Code, Chapter 7

           N A V A J O   N A T I O N   W A T E R   C O D E

                   SUBCHAPTER 1:  GENERAL PROVISIONS

101  Declaration of Purposes; Assertion of Authority

     In order to provide for a permanent homeland for the Navajo
     People; to protect the health, the welfare and the economic
     security of the citizens of the Navajo Nation; to develop, manage,
     and preserve the water resources of the Navajo Nation; to secure a
     just and equitable distribution of the use of water within the
     Navajo Nations through a uniform and coherent system of
     regulation; and to provide for the exercise of the inherent
     sovereign powers of self-government by the Navajo Nation, the
     Navajo Nation hereby asserts its sovereign authority over all
     actions taken within the territorial jurisdiction of the Navajo
     Nation which affect the use of water within the Navajo Nation.

102  Application of the Code

     Upon the effective date of this Code, it shall be unlawful for any
     person within the territorial jurisdiction of the Navajo Nation,
     as defined in 7 N.T.C. Section 254, to impound, divert, withdraw,
     otherwise make any use of, or take any action of whatever kind
     affecting the use of water within the territorial jurisdiction of
     the Navajo Nation unless the applicable provisions of this Code
     and regulations and determinations made hereunder have been
     complied with.  NO right to use water, from whatever source, shall
     be recognized, except use rights obtained under and subject to
     this code.

103  Nature of Ownership

     (a)  The Navajo Nation is the owner of the full equitable title to
     all of the waters of the Navajo Nation as defined in Section 104
     of this Subchapter, and that title resides undiminished in the
     Navajo Nation; the United States holds the legal title to those
     waters solely as trustee for the Navajo Nation.

     (b)  All rights to the use of the waters of the Navajo Nation are
     held subject to the overriding, prior and supreme rights,
     interests and governmental authority of the Navajo Nation, and the
     policy and provisions contained in this Code, amendments hereto,
     and administrative regulations and determinations hereunder.

104  Waters of the Navajo Nation Defined

     The waters of the Navajo Nation are defined as:  (1) all waters
     reserved at any time for any purpose to the Navajo Nation, and to
     Navajo Indian lands by the Navajo Nation or by the United States
     including any waters which, in the course of nature or as the
     result of artificial works or artificial streamflow enhancement or
     weather modification methods, flow into or otherwise enhance such
     waters; (2) all waters held by the Navajo Nation through prior or
     existing use, appropriation, purchase, contract, gift, bequest, 
     or other means of acquisition; (3) all surface and groundwaters 
     which are contained within hydrologic systems located exclusively
     within the lands of the Navajo Tribe of Indians; and (4) all
     groundwaters located beneath the surface of the lands held in 
     trust by the United States of America for the Navajo Tribe of 
     Indians.

             SUBCHAPTER 2:  NOTICE OF ENACTMENT AND EFFECT

201  Notice Required

     To insure that all persons and entities affected by this Code are
     given adequate notice of the enactment and effect of this Code,
     the Director of the Division of Water Resources shall, within 30
     days after the effective date of this Code, provide for public
     notice of its enactment and effect in accordance with the
     provisions of this Subchapter.

202  Contents of Notice

     (a)  Such public notice shall contain the following statement,
     prominently displayed in large, boldface type:

        NOTICE:  AFTER August 2, 1984, NO PERSON OR PUBLIC OR PRIVATE
        ENTITY OF ANY KIND SHALL BE ENTITLED TO TAKE ANY ACTION WITHIN
        THE TERRITORIAL JURISDICTION OF THE NAVAJO NATION WHICH
        AFFECTS THE USE OF WATER WITHIN THE NAVAJO NATION, UNLESS SUCH
        ACTION IS AUTHORIZED BY A PERMIT AS PROVIDED FOR BY THE NAVAJO
        NATION WATER CODE.  NO OTHER WATER USE RIGHTS OF ANY KIND, FROM
        WHATEVER SOURCE, SHALL BE RECOGNIZED.  THE NECESSARY FORMS MAY
        BE PROCURED FROM THE DIVISION OF WATER RESOURCES, POST OFFICE
        BOX 308, WINDOW ROCK, (NAVAJO NATION), ARIZONA 86515, (602)
        729-5281 THROUGH 5284.  COMPLETE COPIES OF THE NAVAJO NATION
        WATER CODE ARE ALSO AVAILABLE AT THE ABOVE ADDRESS.

     (b)  In addition to the foregoing statement, the Director of the
     Division of Water Resources may include in such public notice
     additional information deemed necessary in order to assure
     adequate notice of the enactment and legal effect of this Code.

203  Notice - How Given

     The Director of the Division of Water Resources shall give notice
     of the provisions of this Code as follows:

     (a)  The notice provided above shall be placed in the Navajo Times
     at least once each week over a six-week period.

     (b)  The notice provided above shall be placed in a prominent and
     conspicuous location at the Chapter Houses, the Navajo Nation
     Government Offices, the Bureau of Indian Affairs Offices, U.S.
     Post Offices, Indian Health Service Hospitals and Clinics, and in
     such other locations as are deemed necessary or appropriate.

     (c)  The Director of the Division of Water Resources may take any
     other steps and post any other notices as is deemed necessary to
     provide notice of the provisions of this Code.

    SUBCHAPTER 3:  RESOURCES COMMITTEE OF THE NAVAJO TRIBAL COUNCIL

301  Resources Committee - General Powers

     In administering this Code, the Resources Committee may, in
     addition to other actions:

     (a)  Enter appropriate orders;

     (b)  Recommend to the Navajo Tribal Council for consideration,
     adoption, modification, or amendment such regulations as are
     deemed necessary to implement this code;

     (c)  File or intervene in any lawsuit, at the direction of the
     Navajo Tribal Council, or the Chairman of the Navajo Tribal
     Council;

     (d)  Receive regular reports from the Director of the Division of
     Water Resources;

     (e)  Make determinations of availability and need as provided for
     in Subchapter 8 of the Code;

     (f)  In cooperation with the Office of Navajo Land Development,
     negotiate for and propose to the Navajo Tribal Council the
     purchase or sale of real or personal property or other interests;

     (g)  With the consent of the appropriate committees of the Navajo
     Tribal Council and/or the Navajo Tribal Council, enter into
     administrative agreements, exchange information, and otherwise
     cooperate with governmental agencies both on and off the Navajo
     Nation lands, for appropriate purposes including the administration
     of interstate streams and groundwaters;

     (h)  In cooperation with the other standing committees of the
     Navajo Tribal Council, determine existing and foreseeable uses of
     and needs for water and other related resources; and

     (i)  Take other actions as provided for in this Code.

302  Disqualification

     Any member of the Resources Committee may be disqualified either on
     his/her own motion or upon a majority vote of the Resources
     Committee whenever he/she is unable, because of a direct economic
     interest or other conflict of interest, to serve impartially with
     respect to any matter.

303  Water Reserves

     In connection with a determination of availability and need as
     provided for in Subchapter 8 or in connection with other actions
     taken under this Code, the Resources Committee may establish
     within particular areas dependent on common water supplies, reserve
     water supplies which, although subject to existing uses on an 
     interim basis, are set aside for a definite or indefinite term of
     years for future Tribal and other needs.

304  Water Assessments

     Whenever the Resources Committee of the Navajo Tribal Council
     determines that water not presently available is necessary for
     purposes and projects beneficial to a part or all of the Navajo
     Nation and the inhabitants thereof, the Resources Committee may
     assess individual water users a fair share of water, in
     predetermined units for such purposes, according to the relative
     priorities of the classes of uses.

305  Designations of Local Management Areas

     The Resources Committee may, upon the recommendation of the
     Director of the Division of Water Resources, Tribal Departments or
     any person, isolate and define, within the surface and ground
     water systems in which individual water uses are to some degree
     related by reason of common supply, "local management areas", such
     as municipal water districts or irrigation districts, for
     specialized administration under regulations adopted pursuant to
     this Code.

306  Large User Water Permits

     The Resources Committee may, at its option or upon application,
     recommend for consideration by the Navajo Tribal Council the
     granting of water use permits for amounts in excess of 1000
     acre-feet per year and/or for uses which require assurance of
     long-term supply.  Such permits may be conditioned upon payment of
     consideration and contain other contractual terms including but not
     limited to, limited periods of times of use, differing conditions
     of revocability or terminability; and other conditions providing
     varying degrees of permanence.

307  Charges for Water Uses

     Reasonable charges may be imposed by regulations of the Resources
     Committee for the use of the waters of the Navajo Nation.  Such
     charges shall not apply to domestic uses, stockwatering uses, fish
     and wildlife uses and irrigated agriculture uses.  Additional
     charges may be imposed on users by regulations of the Resources
     Committee for the operation and maintenance of water delivery
     systems.  Waivers of charges may be granted by the Resources
     Committee, if the use is shown to be of benefit to the Navajo
     Nation.

308  Resources Committee - Method of Operation

     In performing its duties under this Code, the Resources Committee
     is a Standing Committee of the Navajo Tribal Council subject to the
     oversight and control of the Navajo Tribal Council.

              SUBCHAPTER 4:  DIVISION OF WATER RESOURCES

401  Information Function

     It shall be the duty of the Director of the Division of Water
     Resources to gather for Tribal use and for submission to the
     Resources Committee information related to the waters administered
     under this Code.  To this end the Director of the Division of
     Water Resources shall:

     (a)  Collect, organize and catalog existing information and studies
     available from all sources, both public and private, pertaining to
     the waters within the Navajo Nation;

     (b)  Develop such additional data and studies pertaining to water
     availability, quality, and use as are necessary to accomplish the
     objectives of this Code;

     (c)  Solicit public comment, consult the Chapters and obtain expert
     advice when appropriate;

     (d)  Investigate water uses and other activities affecting the
     waters within Navajo Nation to determine compliance with this Code
     and with applicable regulations, orders, determinations, permits,
     water quality standards, etc. issued pursuant to this Code;

     (e)  Investigate water quality when appropriate; and

     (f)  Develop standards and regulations concerning water quality
     and water allocation and submit them for recommendation by the
     Resources Committee and for consideration and approval by the
     Navajo Tribal Council.

402  Enforcement Function

     It shall be the duty of the Director of the Division of Water
     Resources to insure compliance with this Code, and with the
     conditions of all permits, determinations, orders, regulations,
     plans and other actions taken under this Code, as well as the
     policies and guidelines expressed throughout the Code.  To this
     end the Director of the Division of Water Resources may:

     (a)  Remove, render inoperative, shut down, close, seal, cap,
     modify or otherwise control methods of diversion, withdrawal, and
     impoundment, obstructions to the flow of water and other activities
     adversely affecting water quantity or quality;

     (b)  Initiate by means provided herein, proceedings for violations
     of this Code and the actions taken under this Code; and

     (c)  Enter upon land to inspect methods of diversion, withdrawal
     and impoundment, inspect other activities affecting water quality
     and quantity, install and monitor measuring and recording devices
     when necessary, and compel testimony and data, by Navajo Tribal
     Court subpoena, if necessary, concerning actions affecting the
     quality or quantity of the waters administered under this Code.

     (d)  All enforcement actions shall be subject to the limitations
     imposed by the Indian Civil Rights Act, 25 U.S.S. Section 1301
     et seq., and the Navajo Bill of Rights, 1 N.T.C. Section 1 et seq.

403  Advisory Function

     The Director of the Division of Water Resources may, from time to
     time, make proposals to the Resources Committee concerning the
     following:

     (a)  The advisability of establishing local management areas as
     provided for in Subchapter 3 of this Code;

     (b)  The advisability of making determinations of availability and
     need as provided for in Subchapter 8 of this Code;

     (c)  The advisability of taking other actions and adopting other
     plans and methods in order to optimize available water supplies and
     to minimize pollution and thermal degradation;

     (d)  The advisability, in cooperation with the Office of Navajo
     Land Development, of purchasing, selling, exchanging and acquiring
     any interest in real or personal property;

     (e)  The advisability of participating in administrative
     proceedings, law suits and other legal proceedings;

     (f)  The advisability of entering into administrative agreements
     and other cooperative ventures with tribal, local, state or
     federal agencies outside of the Navajo Tribal Council and the
     Resources Committee, for appropriate purposes including the
     administration of interstate streams and groundwaters;

     (g)  The advisability of amending or otherwise changing sections of
     this Code or adding new sections; and

     (h)  The advisability of taking other actions which will further
     the policies and purposes contained herein and increase the
     effectiveness of this Code.

404  Administrative Function

     In administering this Code, the Director of the Division of Water
     Resources may:

     (a)  Grant, deny, modify and revoke water use permits;

     (b)  Make determinations of water use rights;

     (c)  Initiate proceedings to enforce this Code;

     (d)  Insure, in coordination with other appropriate agencies,
     adequate water levels in streams, rivers, ponds, and lakes to
     protect Navajo traditional religious practices, wildlife
     conservation and other values; and

     (e)  Enter appropriate orders.

             SUBCHAPTER 5:  GUIDELINES FOR ADMINISTRATION

501  General Policy Provisions

     In taking any action under this Code, the Resources Committee and
     the Director of the Division of Water Resources shall be guided by
     the following basic policy guidelines:

     (a)  Whenever practicable, actions taken should benefit the Navajo
     Nation and the members of the Navajo Tribe of Indians and further
     the objective for which the Navajo Reservation was created:  to
     provide a permanent home and abiding place for the members of the
     Navajo Tribe of Indians, both now and in the future.  Alternatives
     to existing and proposed uses are to be considered whenever
     practicable in order to achieve this goal.  Included in those
     alternatives shall be the option to restrict or prohibit entirely
     any further use of water for the benefit of the Navajo Nation.  If
     there is presented to the Resources Committee or the Director of
     the Division of Water Resources a conflict between water uses for
     the benefit of the Navajo Nation or any of the members of the
     Navajo Tribe of Indians and non-Tribal projects or uses, the
     Resources Committee or the Director of the Division of Water
     Resources may grant such preference as may be required by this
     Code, and lie in the best interests of the Navajo Tribe of Indians
     and its members.

     (b)  In taking any action under this Code which may impose
     substantial economic hardship on persons or entities presently
     using water, or which threatens degradation of other economic,
     cultural, religious, historic, aesthetic, natural or environmental
     values, the Resources Committee, or the Director of the Division of
     Water Resources shall, in reaching their decision, carefully
     consider and weigh;

          1.  The economic dislocation and hardship which will be
          imposed by such actions;

          2.  The investment in time, money and other resources made by
          the parties affected in reliance upon any previous system of
          distribution and use of water;

          3.  Any other burdens as may be imposed by such action;

          4.  The nature and extent of degradation of other economic,
          cultural, religious, historic, aesthetic, natural or
          environmental values.

     (c)  The Resources Committee or the Director of the Division of
     Water Resources, when considering a proposed action, shall balance
     the adverse effects against the benefits to the Navajo Nation and
     other interests which are advanced as justifying the proposed
     action; shall consider alternatives to the proposed action which
     will lessen adverse effects, and shall shape any final action so
     that its adverse effects will be minimized to the greatest extent
     possible, to protect the water resources.

     (d)  When insufficient water supplies are present for whatever
     reason or term, the following priority of uses shall be
     considered in the order in which they are listed:

     1.  Domestic and Municipal Uses
     2.  Stock Watering Uses
     3.  Agricultural Uses
     4.  Instream Needs, for Fish, Wildlife Conservation and
         Recreational Uses
     5.  Economic Development Uses including Industrial and Power Uses
     6.  Other uses.

502  Guidelines for Making Most Effective Use of Available Resources

     In addition to the policy guidelines contained in the previous
     section, the Resources Committee and the Director of the Division
     of Water Resources shall take appropriate actions to:

     (a)  Insure adequate water supplies;

     (b)  Maintain water levels for diversion and withdrawal systems;

     (c)  Maintain head and pressure in ground waters;

     (d)  Prevent or reduce obstruction of surface water flows;

     (e)  Increase efficiency of conveyance systems; increase efficiency
     in water application; increase return flow; prevent waste and
     maximize use of the available supply;

     (f)  Create and enhance the efficiency of natural and artificial
     surface and underground storage;

     (g)  Enhance natural and artificial recharge of aquifers;

     (h)  Define and control interbasin transfers of both surface and
     ground waters;

     (i)  Provide for some degree of overdraft from aquifers when
     short-term recharge is not possible;

     (j)  Minimize interference between competing users of water
     sources, whether above or below ground;

     (k)  Minimize water quality degradation and the adverse effects of
     water pollution whether from point sources or non-point sources;

     (l)  Minimize thermal degradation or the adverse effects of
     thermal degradation;

     (m)  Minimize interaquifer communication;

     (n)  Plan for long-term water development;

     (o)  Penalize misuse;

     (p)  Otherwise insure conformity with the policies and provisions
     of this Code.

503  Additional Policy Guidelines

     (a)  Rivers, streams, lakes and ponds within the Navajo Nation are
     to be retained substantially in their natural conditions, with the
     base flows and water levels necessary to provide for preservation
     of traditional and religious, recreation, wildlife, fish, scenic,
     aesthetic, and other environmental values, to the extent possible.
     Withdrawals of water which would conflict with these interests
     should be authorized only where it is clear that overriding
     considerations of the public interest and welfare will be served.

     (b)  Multiple-purpose impoundment structures are to be preferred
     over single-purpose structures.  Due regard shall be given to
     means and methods for protection of recreation, fish and wildlife
     resources in the planning for and construction of water
     impoundment structures and other artificial obstructions.

     (c)  Individuals, corporations, groups, associations and other
     entities shall be required to carry out reasonable practices of
     water and resource conservation and environmental protection as
     they relate to the use of waters within the Navajo Nation.

    SUBCHAPTER 6:  DESCRIPTIONS OF USE AND APPLICATIONS FOR PERMIT

601  Existing Use Inventory

     In order to determine existing uses of water within the Navajo
     Nation, the Division of Water Resources shall cause an inventory of
     existing water uses to be made and completed within two (2) years
     following the effective date of this Code.  The inventory shall be
     based upon the information contained in the Descriptions of Use.

602  Description of Use - Required

     All persons desiring to continue to operate existing uses must
     file a Description of Use, as required by this Subchapter, within
     one year of the effective date of this Code.  After such date, it
     shall be unlawful to continue to operate any user or to continue
     any other action within the jurisdiction of the Navajo Nation
     which affects the waters therein except as authorized by this
     Subchapter.  Individuals or groups making use of a well or other
     water source operated by another need not file a Description of
     Use unless the operator fails to do so.

603  Application for Permit - Required

     Upon the effective date of this Code, all persons desiring to
     initiate new uses of, or take other actions within the jurisdiction
     of the Navajo Nation affecting the waters therein shall file an
     Application for Permit as required by this Subchapter.  After such
     date, it shall be unlawful for any person to make any new use or
     take any other action within the jurisdiction of the Navajo Nation
     affecting the waters therein except as authorized by this Code.

604  Description of Use and Application for Permit - Contents

     Descriptions of Use and Applications for Permit shall be on forms
     provided by the Director of the Division of Water Resources and
     shall include the following information:

     (a)  The name and mailing address of the claimant;

     (b)  The name, if available or a description of the source or
     sources from which water is or will be diverted or withdrawn;

     (c)  The purpose or purposes for which water is or will be used;

     (d)  The quantity of water which is or will be used;

     (e)  A legal description, if such is readily available, and other
     descriptions reasonably describing the point or points of
     diversion, withdrawal or impoundment;

     (f)  A description of the method or methods of diversion,
     withdrawal or impoundment.  The description of the method or
     methods of ground water withdrawals shall be by a Drilling Permit
     on a form approved by the Resources Committee;

     (g)  A description of how water is or will be applied or consumed,
     including acreage and crop if the water is for irrigation; the
     kind and number of stock if the water is for stock watering; and
     the number of people and/or homes to be served if the water is for
     domestic or municipal use;

     (h)  The best estimate reasonably possible of return flow to the
     source or sources, including how, when, at what point or points,
     and with what changes in quality and temperatures;

     (i)  The estimated date on which the use or uses began or will be
     commenced;

     (j)  If any pre-existing use is claimed, a description of any
     documents or programs upon which it is based; any statute or
     statutes or legal doctrine upon which the use is based; and any
     pertinent litigation creating or affecting the use;

     (k)  The water user's plan for future development of the water use
     or uses and related activities; and

     (l)  Any other information deemed necessary by the Resources
     Committee.

605  Interim Permits

     A Description of Use which is made with respect to a use existing
     prior to the effective date of this Code shall, until a permit is
     issued or denied, serve as an interim permit authorizing the use of
     a reasonable quantity of water for the uses described and actually
     made while the application is pending.  Additional uses planned but
     not commenced prior to the effective date of this Code may be made
     on an interim basis upon Emergency Certification by the Director of
     the Division of Water Resources until a permit covering such uses
     is issued or until other action is taken under this Code.

606  Fees

     Each Application for Permit shall be accompanied by a $25.00
     filing fee.  Provided, however, that the Director of the Division
     of Water Resources may waive payment of such filing fee in cases of
     demonstrated financial hardship.

607  Public Notice of Descriptions of Use and Applications for
     Permit - Initial Notice

     As soon as possible and no more than two years after the effective
     date of this Code, the Director of the Division of Water Resources
     shall divide the Navajo Nation into hydrologic basins or watersheds
     in which water uses are to some degree interrelated and prepare:

     (a)  A map of the Navajo Nation showing such basins or watersheds;

     (b)  A listing for each basin or watershed of each use described
     and permit applied for, which listing shall include names and
     addresses of applicants, descriptions of water sources, quantities
     applied for, points of diversion, withdrawal or impoundment,
     methods of diversion, withdrawal or impoundment and descriptions of
     the uses to be made;

     (c)  A statement that the applicants described in the listing have
     applied for permits under the Navajo Nation Water Code and that any
     persons claiming that their uses may be adversely affected by the
     issuance of such permits may object to their issuance in
     accordance with the provisions for objection, notice and hearing
     provided for in this Code;

     (d)  A brief description of the objection, notice and hearing
     provisions of this Code and information which will assist the
     objecting parties in procuring the necessary forms and commencing
     an objection;

     (e)  A statement that any person may comment either orally or in
     writing on the issuance of any permit; and

     (f)  A brief description of the public comment and investigation
     sections of this chapter.

     The map, listings, statements and descriptions prepared under the
     preceding paragraphs shall forthwith be published and posted in the
     same manner as provided in Section 203 "Notice - How Given",
     subject to the following exceptions:  (1) maps and descriptions of
     objection procedures may be omitted if deemed impractical;  (2)
     newspaper publications may be limited to four weekly notices; and
     (3) listings need be published and distributed only in the
     hydrologic basins or watersheds affected by proposed or existing
     uses.

608  Public Notice of Applications for Permit - Continuing Operation

     When additional Applications for Permit are received during the
     course of the administration of this Code, the Director of the
     Division of Water Resources shall, in conformance with the
     preceding section:

     (a)  Include in the listing provided for in Section 607(b) the
     necessary information concerning the new use or action.

     (b)  Prepare a statement that one or more new Applications for
     Permit have been made and objections may be made to them in
     accordance with Section 607(c).

     (c)  Prepare the descriptions and statements provided in Sections
     607(d), 607(e) and 607(f).

     (d)  The revised listing, statements and descriptions provided for
     in the preceding paragraphs shall forthwith be published, posted
     and mailed in the affected area in the same manner as provided for
     in Section 607, in order to assure adequate notice and an
     opportunity for hearing to persons who may be adversely affected by
     the proposed uses or actions.

609  Objections Affecting Descriptions of Use and Applications for
     Permit

     Any person or entity whose interests are or may be affected by a
     water use described and/or applied for may, within 30 days from the
     date of publishing, and posting of notice that such use has been
     described and/or applied for, file a formal objection to the
     issuance of the permit applied for.

610  Form and Contents of Objections

     (a)  Objections may be made on forms prepared and made available by
     the Director of the Division of Water Resources and shall include
     the name and mailing address of the party objecting; the name of
     the applicant whose application is objected to; a description of 
     the water use objected to; a short and plain statement or reasons
     why a permit should not be issued or should be issued in a form 
     different from that applied for; and any suggested conditions or 
     other provisions which should be included in any permit granted.

     (b)  Oral objections may be made to the Director of the Division of
     Water Resources when it is determined by the Director that the
     circumstances permit an oral objection.  Such oral objections shall
     be reduced to writing on the proper forms by the Director of
     Division of Water Resources.

611  Reply by Applicant

     Any applicant for a permit whose use is objected to may reply in
     writing or orally in the same manner as provided herein for
     objections.

612  Hearings Regarding Issuance of Permits

     Any applicant directly affected or any party objecting in
     accordance with this Subchapter may request and obtain as a matter
     of right a hearing on such objection.  In addition, the Director 
     of the Division of Water Resources or the Resources Committee may
     schedule a hearing concerning the issuance of a permit or permits
     on their own motion whenever they determine that such hearings are
     needed.  Provided, that whenever possible hearings concerning 
     proposed or existing uses in a particular basin or area shall be
     consolidated to promote efficiency, minimize expense or hardship,
     and prevent duplication.  Unless otherwise provided for in this
     Subchapter, notice of such hearings shall be as provided for in
     Subchapter 10, and shall be given to:  the applicants whose uses 
     are objected to; the objecting parties; other persons designated 
     by the objecting parties and applicants; all other persons 
     affected by the proposed use in question and all other persons
     requesting notice.  Unless otherwise provided for in this 
     Subchapter, hearings shall be conducted as provided in Subchapter
     10.

613  Public Comment

     Any person or entity may comment orally or in writing upon the
     proposed issuance of any permit under this Code.  It is the policy
     of the Navajo Nation that all interested parties be given the
     opportunity to participate in the decision making process as set
     forth in this Code.

614  Investigation and Review of Permit Issuance

     In addition to gathering information from the objections,
     comments, and hearings as provided for above, the Director of the
     Division of Water Resources may make any reasonable investigation
     of the facts and circumstances surrounding the permit application;
     may solicit comments and information from the public and from
     appropriate governmental agencies; and may otherwise gather
     information which will assist in making the decision to issue or
     deny a permit in accordance with the provisions of this
     Subchapter.

615  Issuance or Denial of Permits

     As soon as possible after application, hearing, if any, and a
     reasonable period for public comment shall have passed, and no more
     than 90 days after the date of the application, if uncontested, or
     the hearing, if a hearing is held, the Director of the Division of
     Water Resources shall review the comments and information gathered
     with respect to a specific application and either deny a permit or
     issue a permit in the form provided for in Subchapter 7.

                   SUBCHAPTER 7:  WATER USE PERMITS

701  Form

     Water use permits issued in accordance with this Code shall be on a
     form approved by the Resources Committee.

702  Information Contained

     Each permit shall include:

     (a)  The name and mailing address of the permittee;

     (b)  The name of, if available, or a description of, the source or
     sources from which water is or will be diverted, withdrawn or
     impounded;

     (c)  The quantity of water which will be used;

     (d)  The legal description, if such is readily available, or other
     description reasonably describing the point or points of
     diversion, withdrawal or impoundment;

     (e)  A description of the method or methods of diversion,
     withdrawal or impoundment;

     (f)  The purpose or purposes for which water is or will be used;

     (g)  A description of how water may be applied or consumed,
     including acreage and crop if the water is for irrigation, the kind
     and number of stock if the water is for stock watering, and the
     number of people and/or homes to be served if the water is for
     domestic or municipal use;

     (h)  The approximate date upon which the use or uses permitted
     begin or will be commenced; and

     (i)  Any other information as is deemed necessary and appropriate.

703  Conditions

     Each water use permit issued pursuant to this Code shall contain
     whatever conditions are necessary to insure adequate quality and
     quantities of water; to otherwise further the purposes, policies
     and guidelines contained within this Code; and to assist in the
     effective administration of this Code.  These may include, but are
     not limited to, conditions and limitations concerning:

     (a)  The source from which water may be diverted, withdrawn or
     impounded;

     (b)  The quantity of water which may be diverted, withdrawn or
     impounded during any particular time;

     (c)  The point or points of diversion, withdrawal or impoundment;

     (d)  The method or methods of diversion, withdrawal or impoundment;

     (e)  The purposes for which water will be used;

     (f)  The method of application;

     (g)  The location and purpose of application, including acreage
     for crops and number of livestock for livestock watering;

     (h)  The quantity and quality of return flow;

     (i)  The time period during which water may be used;

     (j)  Schedules for diversion, withdrawal or impoundment, including
     optional rotation schedules;

     (k)  Provisions for surface or ground water storage of surplus
     flows;

     (l)  Provisions for increasing the efficiency of diversion,
     withdrawal or impoundment and application;

     (m)  Provisions for maintaining minimum pools and streamflows for
     fish, wildlife, recreation, aesthetic and Navajo religious values;

     (n)  Provisions for insuring minimum pumping and diversion levels
     with respect both to surface and underground water;

     (o)  Provisions designed to maintain head and pressure in ground
     waters;

     (p)  Provisions designed to prevent or reduce obstruction of
     surface water flows;

     (q)  Provisions designed to minimize point and non-point source
     pollution, water quality degradation and thermal degradation;

     (r)  Provisions designed to enhance recharge of aquifers;

     (s)  Provisions designed to define and control interbasin
     transfers of surface and ground waters;

     (t)  Provisions for some degree of overdraft from aquifers when
     short-term recharge is not possible;

     (u)  Provisions designed to prevent or reduce interference
     between competing users or water sources whether above or below
     ground;

     (v)  Provisions to minimize interaquifer communication;

     (w)  Provisions to insure long term water development;

     (x)  Any other provisions necessary to insure conformity with the
     policies and provisions of this Code and actions taken pursuant to
     this Code.

704  Entry on Land

     No person shall be authorized to use or otherwise take any action
     affecting the waters administered under this Code unless he shall
     consent to reasonable entry upon his land by Navajo Nation
     employees engaged in the administration of this Code.  Every permit
     issued under this Code shall contain the condition that no use or
     other action affecting the waters in question may be made unless
     the applicant consents to such reasonable entry upon his land.

705  Effect

     A water use permit issued under this Code constitutes nothing more
     than Navajo Nation permission to use the water within the 
     territorial jurisdiction of the Navajo Nation, subject to the 
     terms and conditions of the permit, to this Code, and to actions
     taken pursuant to this Code.  No water permit issued hereunder 
     shall be construed as creating or recognizing any right other than
     Navajo Nation permission to use water, nor shall any water use 
     permit ripen into any interest other than such limited permission.

706  Revocability

     Unless otherwise indicated, water permits issued under this Code
     are revocable by the Director of the Division of Water Resources in
     accordance with the policies, purposes, guidelines and procedures
     established in this Code, and in accordance with the Indian Civil
     Rights Act, 25 U.S.C. Section 1301 et seq., and the Navajo Bill of
     Rights 1 N.T.C. Section 1 et seq.

707  Modification

     Water permits are modifiable in accordance with the procedures
     provided in this Code, and in accordance with the Indian Civil
     Rights Act, 25 U.S.C. Section 1301 et seq., and the Navajo Bill of
     Rights 1 N.T.C. Section 1 et seq.

         SUBCHAPTER 8:  DETERMINATION OF AVAILABILITY AND NEED

801  When Proceeding Available

     Whenever at any time after the Existing Use Inventory is completed
     an application for a permit covering a new or changed use of, or
     other action affecting water is made; or a complaint concerning an
     existing or proposed use, or other action affecting the water is
     made; or a request is made by the Resources Committee; and it
     appears probable to the Director of the Division of Water
     Resources that a water supply common to a particular area is or
     will be used beyond its capacity, or otherwise adversely affected;

     The Director of the Division of Water Resources may initiate a
     proceeding to determine the availability of and need for water in
     accordance with the provisions of this Subchapter.

802  Purposes

     The purposes of a proceeding to determine availability of and need
     for water under this Subchapter shall be:  to evaluate existing and
     future needs dependent upon a particular supply; to compute with
     reasonable certainty the characteristics of a particular supply,
     including quantity, surface and groundwater levels, rates and
     directions of flow, rates of recharge, out-of-basin sources,
     pollution, thermal degradation, and other characteristics, at
     particular locations and times; to explore various methods for
     increasing supply such as artificial recharge, storage, increased
     efficiency, alternatives to present uses, alternatives to
     activities presently requiring the consumption of water; to assist
     in land use planning in accordance with the policies and actions of
     the Navajo Nation; and to make available to other tribal, local
     state and federal agencies and to members of the public information
     concerning the waters in question.

803  Notice of Proceeding

     (a)  Whenever a proceeding is initiated under Section 801 of this
     Subchapter, the Director of the Division of Water Resources shall
     provide notice of such proceeding in the same manner as provided
     in Section 1002 to all parties who are using or will use or
     otherwise affect or rely upon the water supply in question, or will
     otherwise be directly affected by such proceeding.

     (b)  Such notice shall state in plain and simple language the
     reason for initiation of the proceeding; the nature of the
     proceeding; the geographic area covered by the proceeding; and, as
     nearly as may be determined, the possible effects of such a
     proceeding on individual water uses.

     (c)  The Director of the Division of Water Resources shall make
     every reasonable effort to ensure that all persons or entities
     whose interests are or will be affected by the proceeding have
     reasonable notice of the nature, scope and possible effects of the
     proceeding and a reasonable opportunity to prepare for and
     participate in the proceeding.

804  Division of Water Resources - Investigation Initiation

     As soon as the Director of the Division of Water Resources
     determines that a proceeding shall be initiated under this
     Subchapter, he shall define as accurately as possible the area
     covered by the proceeding and commence an investigation as
     provided herein.

805  Division of Water Resources - Information Gathering

     The Director of the Division of Water Resources shall initiate an
     investigation to gather and evaluate all available, pertinent data
     from whatever sources concerning the water supply and needs for
     water in question; to formulate proposals concerning the use of the
     water in question; and to provide other information, alternatives,
     and recommendations to assist the Resources Committee.  Such
     information, alternatives, and recommendations shall be contained
     in the report of the Director of the Division of Water Resources
     provided for in Section 806 of this Code.

806  Division of Water Resources - Report

     Upon completion of the investigation provided for in Section 805,
     and no more than 90 days after the initiation of the investigation,
     the Director of the Division of Water Resources shall transmit to
     the Resources Committee the report concerning the availability of
     and need for water in the particular area to which the proceeding
     applies.  The report shall include the following:

     (a)  A geographic and geologic description of the area studied,
     setting out as precisely as possible the boundaries of the area;

     (b)  A general description of the water supply in that area, from
     all sources;

     (c)  A description of the various characteristics of the water
     supply which are relevant to present and proposed uses and other
     actions;

     (d)  A computation of the water supply available at particular
     times and places;

     (e)  A description of present and proposed uses of and other
     actions affecting the water supply in question;

     (f)  A description and evaluation of the need for each such
     present or proposed use or other action;

     (g)  A description of possible methods for increasing available
     water supply;

     (h)  A description of economic and technical methods which may be
     implemented to increase the efficiency of use;

     (i)  Alternatives for present uses which will minimize the impacts
     described in Section 501 of this Code;

     (j)  Amounts of water within the particular supply which shall be
     subject to a reserve as provided in Section 303 of this Code;

     (k)  Proposals for assessing varying amounts of water as provided
     for in Section 304 of this Code; and

     (l)  Any additional information and recommendations which the
     Director of the Division of Water Resources deems is necessary for
     inclusion.

807  Proposed Determination of Availability and Need

     As soon as possible and no more than 30 days after receipt of the
     report of the Director of the Division of Water Resources, the
     Resources Committee shall cause to be prepared a proposed
     Determination of Availability and Need in accordance with the
     provisions of this Subchapter.

808  Determination of Availability and Need - Contents

     A Determination of Availability and Need may include the following,
     either as recommendations or mandatory provisions:

     (a)  A description and map of the affected area;

     (b)  A description of the water supply in the affected area,
     including a description of the various characteristics of the
     supply which are especially pertinent to present and proposed
     water uses within that area;

     (c)  A description of the various present and future needs for
     using or affecting the water supply in the area;

     (d)  A list of priorities to be observed within the affected area;

     (e)  A list of storage methods which are or may be proposed and
     implemented;

     (f)  A description of methods for increasing efficiency;

     (g)  A description of possible interbasin transfers; and

     (h)  Other information, provisions and recommendations or
     requirements reasonably calculated to inform the affected parties
     concerning the future management of the water supply in question.

809  Notice of Hearing

     As soon as possible and no more than 30 days after the drafting of
     a proposed Determination of Availability and Need, the Director of
     the Division of Water Resources shall provide notice, in the manner
     provided for in Section 803, of a public hearing at which
     interested persons may present oral or written comments concerning
     the proposed Determination of Availability and Need.  Included in
     the notice shall be a description and map of the affected area; a
     description of the proceeding to date and a clear statement that
     copies of the proposed Determination of Availability and Need shall
     be made reasonably available to interested persons.  The notice
     shall state the date, time and place for a hearing, to be held not
     less than 30 nor more than 60 days after the date notice is
     completed.

810  Hearing

     A hearing shall be held with respect to every proposed
     Determination of Availability and Need.  Whenever possible, such
     hearings shall be held in the affected area, at a date, time and
     place which is reasonably convenient to a major portion of the
     parties affected.  At such hearings, the Resources Committee or
     its designees shall provide a brief oral statement of the purpose
     of the hearing and a description of the proceeding to date,
     including the proposed Determination.  At least one member of the
     Resources Committee shall be present and shall preside over the
     hearing.  After the presentation is made by the Resources Committee
     or its designees, public comment shall be allowed.  Public comment
     may be limited by reasonable rules adopted by the Resources
     Committee to insure an opportunity for full comment.  Hearings may
     be continued if necessary to such times and places as are deemed
     appropriate upon adequate notice.

811  Final Determination of Availability and Need

     As soon as possible, and no more than 60 days after the public
     hearing provided for in Section 810, the Resources Committee shall
     cause to be prepared a final Determination of Availability and
     Need.  Notice of this final Determination shall be made in the same
     manner as provided for in Section 803 and shall indicate that
     copies of the Determination are reasonably available for public
     review.

812  Subsequent Actions

     Upon completion of the above proceedings, the Director of the
     Division of Water Resources shall make copies of the Determination
     of Availability and Need made under the provisions of this
     Subchapter reasonably available to parties requesting the same;
     shall grant, revoke, deny or modify permits in accordance with
     such Determination; shall enter appropriate orders and take other
     actions authorized by this Code to prevent overuse and/or
     pollution in accordance with such Determination; and shall take
     whatever other actions are necessary and authorized by this Code
     to assist in the implementation of the Determination and of the
     policies, provisions and guidelines set forth in this Code.

813  Appeal

     Appeals from the final Determination of the Availability and Need
     shall be taken in the same manner as provided for in Subchapter 11
     of this Code.

              SUBCHAPTER 9:  TRANSFER AND LOSS OF RIGHTS

901  Transfer, Assignment, Descent, Distribution and Creation of
     Security Interest

     Permits issued under this Code shall not be subject to transfer,
     assignment, descent, distribution or creation of any security
     interest without the express written consent of the Director of the
     Division of Water Resources.  Applications for transfer,
     assignment, or creation of a security interest shall be made on
     forms prepared and made available by the Director of the Division
     of Water Resources.  Such forms shall be designed to solicit
     information concerning any substantial changes which will or may
     occur as a result of the transfer, assignment or creation of a
     security interest in a water use permit.  Every attempt should be
     made to conform with the purposes of Subchapter 6, governing
     Descriptions of Use and Applications for Permit.  Heirs and
     successors in interests of permittees shall apply for permits in
     their own names; however, such substitute permits shall be freely
     granted unless changing hydrological conditions clearly warrant a
     modification of the prior permits.

902  Loss By Nonuse

     Any right to use or otherwise affect in any way water within the
     territorial jurisdiction of the Navajo Nation, regardless of its
     origin, shall become void and revert, to the extent of the
     abandonment or nonuse, to the Navajo Nation when the holder of such
     use right wholly or partially abandons the same, or voluntarily
     fails without sufficient cause to use all or a portion of the
     water available under such use right for a period of five
     consecutive years.

     "Sufficient cause" shall include:

     (a)  Drought or other unavailability of water;

     (b)  Active service in the armed forces of the United State;

     (c)  The operation of legal proceedings;

     (d)  The application of any laws restricting water use;

     (e)  Incarceration in a penal institution;

     (f)  Confinement in a mental institution, whether voluntary or in
     voluntary;

     (g)  Incompetence by reason of age or mental incapacity;

     (h)  Provisions of future use as provided in this Code; or

     (i)  Other causes of nonuse beyond the control of the holder or
     holders of the use right claimed.

     Before such rights to use water may be deemed lost by nonuse or
     abandonment, the Director of the Division of Water Resources shall
     serve notice on the holders of such use rights to appear at a
     hearing to be held before the Resources Committee not less than 30
     days after the mailing or personal service of such notice and show
     cause why their use rights should not be deemed void.  Such notice
     and hearing shall be in the manner provided for in Subchapter 10 of
     this Code governing notice and hearing.

903  Loss By Adverse Possession, Prescription, Estoppel, or
     Acquiescence

     No right to use or otherwise affect the quantity, level, flow,
     pressure, quality, or temperature of water may be acquired by
     adverse possession, prescription, estoppel or acquiescence.

904  Outside Proceedings

     No use right granted under this Code may be reduced or taken or
     otherwise affected in any procedure or determination or
     adjudication except as provided for in this Code, and in
     compliance with the Indian Civil Rights Act, 25 U.S.C. Section
     1301 et seq., and the Navajo Bill of Rights, 1 N.T.C. Section 1
     et seq.

              SUBCHAPTER 10:  GENERAL HEARING PROVISIONS

1001  Applicability

     Unless otherwise provided for in this Code, hearings shall be held
     in accordance with the provisions of this Subchapter.

1002  Notice

     All parties who will or may be directly affected by a proposed
     action shall be given notice by mail of any hearings held under
     this Subchapter.  In addition, notice of hearings shall be
     published in one paper having general circulation in the affected
     area and notice of hearing shall be posted in prominent places in
     the affected area, as set forth in Subchapter 2 of this Code.

     Every attempt shall be made to give each party who will or may be
     directly affected by any action actual notice of that action and
     fair and adequate opportunity to be heard.

1003  Time and Place of Hearing

     Whenever possible hearings shall be held in the affected area, at a
     date, time and place which is convenient for a major portion of the
     parties affected.

1004  Continuances

     Continuances shall be freely granted when the ends of justice so
     require and in order to assure adequate notice and opportunity to
     be heard.

1005  Presiding Officer

     The Resources Committee shall designate a qualified and impartial
     hearing officer to preside over hearings provided for in this
     Subchapter.

1006  Forms of Evidence

     Evidence may be submitted in any practical form including oral
     testimony, written evidence, and descriptive evidence.  The
     ordinary rules of evidence shall not apply but evidence which is
     irrelevant, cumulative, unduly prejudicial, or would otherwise be
     unfairly admitted, may be excluded or admitted only under special
     conditions or stipulations.

1007  Consolidation of Hearings

     Whenever possible, hearings concerning proposed or existing actions
     in a particular watershed or area shall be consolidated to promote
     efficiency, minimize expense or hardship, and to prevent
     duplication.

1008  Recording

     Hearings shall be recorded by mechanical means, provided, that any
     person may provide at his own expense for a stenographic record.

1009  Decision

     Whenever a decision is required in accordance with the provisions
     of this Code following a public hearing, the Hearing Officer shall
     prepare findings of fact and conclusions of law and shall recommend
     a proposed decision to the Director of the Division of Water
     Resources.  The Director may make such modifications as are clearly
     warranted by the evidence and applicable law and shall issue a
     final decision, including an explanation for any changes made in
     any recommendation of the Hearing Officer, within thirty days of
     such recommendation.  Such decision shall be published and served
     upon the parties in the same manner as provided in Section 1002
     governing notice of hearings.

                        SUBCHAPTER 11:  APPEALS

1101  Appeals Provided For

     There shall be no appeal from actions taken under this Code except
     as provided herein.  Appeals shall be to the Court of Appeals of
     the Navajo Nation.

1102  Notice of Appeal - Jurisdiction

     Any party aggrieved by any final action taken under this Code may,
     by filing a Notice of Appeal with the Court of Appeals of the
     Navajo Nation, obtain review of such final action.  The Court of
     Appeals shall have no jurisdiction to hear any appeal initiated
     pursuant to this Subchapter unless the Notice of Appeal is filed
     with the Court of Appeals within 30 days after the date of the
     final action.  "Final action" means any action taken under this
     Code for which no further consideration by the Director of the
     Division of Water Resources or the Resources Committee is required.

1103  Notice of Appeal - Service

     Upon filing of the Notice of Appeal the party appealing the final
     action shall forthwith, and no more than 10 days after filing of
     the Notice of Appeal, cause the Notice of Appeal to be served on
     all parties to the proceeding being appealed from, on the Director
     of the Division of Water Resources, and on the Chairman of the
     Resources Committee.

1104  Transmittal of Record

     (a)  Upon receipt of the Notice of Appeal, the Director of the
     Division of Water Resources and the Resources Committee shall
     cause all pertinent documents in their possession, and any other
     articles of evidence in their possession, to be transmitted to the
     Court of Appeals.

     (b)  Any party to an appeal may at his own expense, cause a
     transcript of any hearings or other proceedings below to be 
     prepared and transmitted to the Court of Appeals.  Provided, that 
     the Director of the Division of Water Resources in his discretion
     shall bear the financial burden of preparing such transcript when
     it appears, after good cause shown, that a party is financially 
     unable to do so.

1105  Oral Argument

     Upon receipt of the Notice of Appeal, the Court of Appeals shall,
     as soon as possible and no more than 15 days after receipt thereof,
     notify the Resources Committee, the Director of the Division of
     Water Resources, the appealing party, and the other parties to the
     proceedings, of a date certain for full hearing before the Court
     of Appeals.

1106  Briefs

     Parties may at their own option or shall when requested to do so by
     the Court of Appeals file briefs in support of their appeal.
     Briefs shall be due on dates set by the Court of Appeals and no
     less than 30 days after receipt of the notice provided for in
     Section 1105 of this Subchapter.

1107  Scope of Review

     The Court of Appeals, in reviewing the final action appealed from,
     shall limit its review to the issues and the evidence which were
     before the Director of the Division of Water Resources or the
     Resources Committee at the time of the final action appealed from.
     The Court of Appeals may affirm, reverse, modify in whole or in
     part, or remand for further consideration, any final action
     appealed from.  Provided, final actions appealed from may only be
     reversed, modified or remanded when they are arbitrary, capricious
     unsupported by substantial evidence, not in substantial conformity
     with this Code or otherwise contrary to law.

1108  Court of Appeals - Additional Powers

     (a)  The Court of Appeals may on its own motion or upon motion of
     any party dismiss an appeal for want of prosecution, gross
     procedural irregularity, or mootness when the ends of justice so
     require.

     (b)  In addition, the Court of Appeals may stay the operation of
     final actions appealed from, in whole or in part, and may, when
     the ends of justice require, provide for a supersedeas bond or
     other security from the parties to the appeal

                      SUBCHAPTER 12:  DEFINITIONS

1201  Director of the Division of Water Resources

     Director of the Division of Water Resources means the Executive
     Director of the Division of Water Resources of the Navajo Tribal
     Government, his designated representative or agent, or his
     successor in responsibility, as determined by the Chairman of the
     Navajo Tribal Council.

1202  Domestic Use

     "Domestic Use" means any use of water for individual personal needs
     or for household purposes such as drinking, bathing, heating,
     cooking, or sanitation.

1203  Effective Date

     The "effective date" referred to herein shall be the date of the
     resolution of the Navajo Tribal Council approving adoption of this
     Code.

1204 Municipal Use

     "Municipal Use" means all reasonable water uses necessary in
     carrying out the functions of municipal government, local chapter
     government and growth centers or towns.

1205  Person

     "Person" includes an individual; a partnership; a corporation,
     whether public and private; and a governmental entity, unit or
     agency, whether tribal, local, state or federal.

                    SUBCHAPTER 13:  PROHIBITED ACTS

1301  Waste of Water Prohibited

     No waters that have been withdrawn, diverted, impounded or
     otherwise taken pursuant to a valid permit or otherwise shall be
     wasted.  The withdrawal of reasonable quantities of water in
     connection with construction, development, testing or repair of
     diversion, withdrawal and impoundment works shall not be construed
     as waste.  In the event of inadvertent loss of water owing to
     defects in equipment for diversions, withdrawals and impoundments
     such shall not be construed as waste if reasonable diligence is
     shown by the permittee in effecting necessary repairs.

1302  Unauthorized Actions Affecting Waters Prohibited

     Whenever any use or other action affecting the use of waters
     within the territorial jurisdiction of the Navajo Nation is
     required by this Code to be authorized under the provisions of
     this Code, it shall be a violation of this Code to knowingly make
     such use or take such other action without the authorization
     required.

1303  Obstruction of Navajo Nation Employees

     The willfull obstruction of or interference with Navajo Nation
     employees performing their lawful duties under this Code shall be
     a violation of this Code.

1304  Misstatement of Material Facts

     The knowing misstatement of any material fact by any person or
     entity when providing information required by this Code, with
     respect to Descriptions of Use and Applications for Permit or
     otherwise, shall be a violation of this Code.

1305  Sanctions for Code Violations

     Violations of this Chapter may subject the persons(s) or
     entity(ies) responsible to forfeiture or suspension of rights to
     the use of water administered under this Code.  Sanctions may also
     include the requirement of payment for water improperly used or
     adversely affected by the improper use; payment of the costs for
     all associated remedial actions administrative costs incurred by
     the Navajo Nation as a result of the violation; and payment of such
     other costs as are necessary to render the Navajo Nation and its
     inhabitants whole.  Sanctions shall be imposed by the Director of
     the Division of Water Resources subject to the limitations imposed
     by the Indian Civil Rights Act, 25 U.S.C. Section 1301 et seq.,
     and the Navajo Bill of Rights, 1 N.T.C. Section 1 et seq.

               SUBCHAPTER 14:  MISCELLANEOUS PROVISIONS

1401  Severability

     If any provision of this Code or the application thereof to any
     person or circumstances is held invalid, the Code can be given 
     effect without the invalid provision or application; and to this 
     end the provisions of this Code are declared to be severable.

1402  Construction

     This Code shall be liberally construed to effectuate its
     objectives, policies, guidelines, purposes, and provisions.

1403  Review of Authority

     The Resources Committee and the Director of the Division of Water
     Resources shall, from time to time, review the authority granted to
     them under this Code and propose amendments and additions thereto
     to the Navajo Tribal Council in order to improve administration
     under this Code.

1404  Extension of Time Limits

     The time limits provided for in various places of this Code may be
     extended, for good cause shown, by the agency before whom the
     proceeding is pending when the ends of justice so require.

1405  Representation

     Parties appearing at hearings and other proceedings provided for
     this Code may represent themselves or may be represented by
     individuals licensed to practice before the Courts of the Navajo
     Nation if they so desire.


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