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<br />0) <br />OJ <br />- <br /> <br />c <br /> <br />J. <br /> <br />. <br /> <br />. <br /> <br />immediate construction of the M&I portion of Phase <br />I with the irrigation portion to follow. <br /> <br />The latest construction cost estimate for both <br />phases of the project is $611.3 million (1991). <br />The construction of Phase I facilities outlined in <br />the June 30, 1986 agreement would cost $408.2 <br />million in 1989 dollars and construction of <br />facilities under the reasonable and prudent <br />alternatives outlined in the Biological Opinion <br />would cost an estimated $213.2 million. The <br />estimate of annual project benefits by the Bureau <br />of Reclamation is $42,000,000 a year. Nonfederal <br />cost sharing in the amount of approximately $68 <br />million has been committed to the construction of <br />Phase I of the project. operation, maintenance and <br />replacement cost (OM&R) for the entire project in <br />the 1969 Definite Plan Report were estimated to be <br />$2,137,000 annually based on 1974 to 1976 prices. <br />Indexing the OM&R costs to the 1991 dollars <br />reflects a cost of approximately $3,800,000. OM&R <br />costs for the reasonable and prudent alternatives <br />contained in the Biological Opinion have not been <br />calculated. <br /> <br />K. The Animas-La Plata Water Conservancy District and <br />the San Juan Commission have entered into repayment <br />contracts and the Ute Mountain Ute and Southern Ute <br />Tribes repayment contracts have been approved as to <br />form. Repayment contracts with the Navajo Nation <br />and La Plata Water Conservancy District of New <br />Mexico are pending. <br /> <br />III. Indian Water Rights Settlement. <br /> <br />A. In December, 1991, the Court entered consent <br />decrees resolving Indian reserved issues on all <br />rivers in the southwest Colorado. The Animas and <br />La Plata River decrees were dependent on terms in <br />the settlement agreement which included <br />construction of the Animas-La Plata Project. At <br />the time of signing the consent decree the Ute <br />Mountain Ute Indian Tribe received $40,000,000 and <br />the Southern Ute Tribe $20,000,000 for the tribal <br />development funds. <br /> <br />B. Federal legislation was introduced in 1987 in the <br />form of S. 1415 and H.R. 2642. That legislation <br />contained the following: <br /> <br />WAIVER OF THE NONINTERCOURSE ACT -- This waiver <br />provided a mechanism to allow the tribes to lease <br /> <br />5 <br />