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The proposed action is the approval by the Secretary of the Interior, through the U.S. Bureau of Reclamation (USBR), of an agreement between the Public Service Company of New Mexico (PNM) and the Jicarilla Apache Nation (formerly called the Jicarilla Apache Tribe) for the supply and delivery of 16,200 AF per year for use in the operation of the San Juan Generating Station (SJGS). Currently, water for SJGS is supplied through a contract between PNM and the USBR for 16,200 AF per year. A draft environmental (EA) was issued by the USBR in June 1995 that analyzed the renewal of that contract; however, an ongoing assessment of Indian Trust Asset issues kept the document under review and a final EA was not issued. Since that time, the Jicarilla Apache Nation expressed an interest in entering into subcontracts with third parties for use of water that has been made available to the Nation through the Jicarilla Apache Water Rights Settlement Act. The Jicarilla Apache Nation and PNM have developed an agreement for a water subcontract. The decision was made to reissue the draft EA as it pertains to this contract. The only difference between the proposed action of the EA and the proposed action of the 1995 draft EA is the change in supplier from USBR to the Jicarilla Apache Nation. SJGS operations will not change as a result of the Jicarilla Apache Nation Water Subcontract. The amount of water to be supplied remains 16,200 AF per year.