Gila River Indian Community-Phelps Dodge Corporation Water Rights Settlement Act of 1998

Gila River Indian Community-Phelps Dodge Corporation Water Rights Settlement Act of 1998 - Ratifies, approves, and confirms the May 4, 1998, settlement agreement among Phelps Dodge Corporation, the Gila River Indian Community, and the United States (agreement). Directs the Secretary of the Interior or his lawful designee (Secretary) to execute, and perform all of the Secretary's duties under, the agreement.

(Sec. 5) Directs that: (1) the Secretary take all actions specified in the agreement necessary on the Secretary's part to obtain title to Blue Ridge Reservoir from Phelps Dodge; and (2) title to the Reservoir be held by the Secretary in trust for the benefit of the Navajo Nation.

(Sec. 6) Directs the Secretary, simultaneously with the transfer of the Reservoir to the United States, to: (1) reallocate to the Community 12,000 acre-feet of Central Arizona Project (CAP) water; (2) amend the Community's CAP Contract to include the reallocated water; and (3) extend the Community's CAP Contract to 100 years, plus such additional term as may result from the exercise of the option provided for in, or other extension of, the lease referred to in the agreement.

Sets forth provisions regarding nonreimbursability of water service and other capital charges and operation, maintenance, and replacement charges to the Community.

(Sec. 7) Ratifies, approves, and confirms a lease referred to in the agreement. Makes such lease ineffective as to the United States and directs the Secretary not to execute it, until environmental compliance has been completed and the exchange has been approved. Allows the Secretary and the Community to renew or extend the lease at the end of the initial or any extended term as the Community, the Secretary, and Phelps Dodge may agree, with a limitation.

(Sec. 8) Authorizes the Secretary and the Community to enter into an exchange agreement under which CAP water leased to Phelps Dodge by the Community is delivered by Phelps Dodge to the Community in return for the right to divert water from the Gila River upstream of the Gila River Indian Reservation. Sets the term of any such exchange agreement at 100 years, plus any additional term occasioned by the exercise of the option contained in the lease or other authorized extension.

Directs the Secretary to commence negotiations regarding the exchange agreement and to process all associated environmental compliance expeditiously. Prohibits the Secretary from executing the exchange agreement until: (1) all such environmental compliance has been finally concluded; (2) any necessary order approving the exchange, or any aspect of the exchange, has been obtained from the United States district court; and (3) the order is final and subject to no further appeal.

(Sec. 9) Makes specified waivers of the agreement effective, and binding upon the Community and the United States, on behalf of the Community and the owners of beneficial interests in allotted land within the Reservation (allottees), after the date certain conditions set forth in the agreement occur. Directs the United States to execute the agreement on behalf of the allottees in its capacity as trustee of allotted lands on the Reservation. Makes the agreement binding upon the allottees.

(Sec. 10) Authorizes the Navajo Nation, and the United States on its behalf, to enter into an agreement with: (1) the town of Payson, Arizona, or the unincorporated communities of Pine and Strawberry, Arizona (the towns) to subordinate water rights held in the Reservoir by the United States for the benefit of the Navajo Nation to rights to the use of up to 3,000 acre-feet per annum of water in the Reservoir acquired by the towns under Arizona law; and (2) Phelps Dodge to subordinate water rights held in the Reservoir by the United States on behalf of the Navajo Nation to water rights acquired by Phelps Dodge in the Reservoir subsequent to this Act's enactment under Arizona law for use on land owned by Phelps Dodge around the Reservoir identified in the agreement.

Designates the Bureau of Reclamation as the lead agency with regard to environmental compliance.

Authorizes any party to the agreement, and to the lease and exchange agreement, if approved, to bring suit in the U.S. district court for the district of Arizona for the interpretation and enforcement of this Act, the agreement, the lease, and exchange agreement and waives claims by the United States or the Community to sovereign immunity.