A bill to authorize the Cherokee Nation of Oklahoma to design and construct hydroelectric power facilities at W.D. Mayo Lock and Dam.

(Reported to Senate from the Select Committee on Indian Affairs with amendment, S. Rept. 99-279)

Authorizes the Cherokee Nation of Oklahoma to design and construct hydroelectric power facilities at W.D. Mayo Lock and Dam, Arkansas River, Oklahoma.

Authorizes the Secretary of the Army, acting through the Army Corps of Engineers, and the Secretary of Energy, acting through the Southwestern Power Administration, to enter into an agreement with the Cherokee Nation of Oklahoma under which the Cherokee Nation agrees to: (1) design and initiate construction of such facility; (2) reimburse the Secretary of the Army for costs incurred by the Army Corps of Engineers; and (3) release and indemnify the Federal Government from any claims or liability arising from such design or construction. Transfers such facility to the United States upon completion. Requires the: (1) Secretary of the Army, upon acceptance of the transfer in title, to operate and maintain such facility through the Army Corps of Engineers; and (2) Southwestern Power Administration to market the excess power generated by such facility.

Authorizes the Southwestern Power Administration, out of revenues from the sale of such power, to pay the Cherokee nation: (1) all costs incurred in the design and construction of such facility; and (2) a reasonable annual royalty for a period not to exceed 50 years.

Authorizes the Southwestern Power Administration to: (1) construct necessary transmission facilities using funds contributed by non-Federal sources; and (2) repay those funds using revenues from the sale of power produced from such facility.

Authorizes appropriations for the operation and maintenance of such facility.