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., Page 30f9 . (b) Before funds are expended for the studies authorized by this section, the Southeastern Colorado Water Activity Enterprise shall agree to participate in the studies and to fund the costs of the studies. The Southeastern Colorado Water Activity Enterprise's funding of the costs may be provided partly or wholly in the form of services directly related to the conduct of the studies. SEC. 3. SECRETARY AUTHORIZED TO ENTER INTO CONTRACTS FOR THE USE OF EXCESS STORAGE AND CONVEYANCE CAPACITY OF CERTAIN EAST SLOPE FACILITIES OF THE FRYINGPAN-ARKANSAS PROJECT, COLORADO. The Act of August 16, 1962 (76 Stat. 389), is amended by adding at the end the following: 'SEC. 8. (a) The Secretary is authorized to enter into contracts with any agency or entity, private or public, supplying water for municipal and other purposes within the project boundaries, for the use of excess water storage and conveyance capacity for nonproject water in certain east slope facilities, as described in the Preferred Storage Options Plan Report pUblished September 21, 2000, by the Southeastern Colorado Water and Storage Needs Assessment Enterprise and Final PSOP Implementation Committee Report dated April 19, 2001, after consultation with the Board of Directors of the Southeastern Colorado Water Activity Enterprise: Provided, however, That such contracts shall not impair or otherwise interfere with-- . '(1) the project's authorized purposes, '(2) the ability of the project contractors to meet existing Federal repayment obligations, '(3) the storage allocations andlimitations pursuant to Contract No. 5-07-70- W0086, as amended, between the Southeastern Colorado Water Conservancy District and the United States, and the allocation principles adopted by the Southeastern Colorado Water Conservancy District on November 29, 1979, and confirmed by the District Court of Pueblo County in Civil Action No. 40487 by decree dated December 18,1979, including any subsequent modifications made by the District that are confirmed by the District Court, '(4) the yield .of the project from its West Slope and East Slope water rights, or '(5) the capacity in Reclamation project facilities which is needed to satisfy project purposes and contractual obligations with a term exceeding one year existing at the time of the execution of a contract under the authority of this subsection. . . (b) The term of any contract executed pursuant to this section shall not exceed the remaining term of Contract No. 5-07-70-W0086, as amended, between the Southeastern Colorado Water Conservancy District and the United States. The Secretary shall renew any contract executed pursuant to this section at the end of the contract term on such conditions as the Secretary finds to be just and equitable. The term of such contract renewal shall be for a duration no less than the term granted the Southeastern Colorado Water Conservancy District under the contractual arrangement negotiated upon the expiration of Contract No. 5-07-70-W0086. "",...; ,"',...,