He missed and then grabbed a pocket knife and chased his friend out of his home, Beth Utley, a spokeswoman for the sheriff's office, said.
Roderick Begay, 28, who lives near County Road 5769, allegedly shot a rifle at Zachery Negale, 27, twice on Saturday, according to San Juan County Sheriff's Office documents.
The shooting was reported shortly before 4 p.m., Utley said.
Negale told investigators that he and Begay were drinking at Begay's house when they got into a fight.
Begay went into his bedroom and came out with a camouflage bolt-action rifle and shot at Negale. Negale said Begay tried to shoot him in the legs, according to sheriff's office documents.
Begay missed both times, according to the sheriff's office, and then took out a folding knife and threatened Negale with it.
Negale said Begay chased him out of his house with the knife, according to the sheriff's office.
Investigators searched Begay's home later Saturday night and found a rifle and ammunition.
Utley said Begay was arrested and charged with two counts of aggravated assault with a deadly weapon and negligent use of a deadly weapon for firing a weapon in an occupied home.
He pleaded guilty to a misdemeanor charge of battery against a household member in 2010, according to a state court website.