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, downstream from Mancos that are larger in area than most of the area irrigated ~y the Mancos project. If the tribe receives a first priority water right for its lands and builds facilities to put the right to beneficial use, there will be essentially no water left for the community of Mancos. The entire financial economy of the area could be lost. Probably the community with the second most serious impact would be Fort Lewis Mesa. This area's economy has already dwindled seriously as a result of the administration of the Colorado-New ~~xico Interstate Compact on the La Plata River. Durin~ the lS2e's there were about 20,CeO acres of irrizated land on Fort Lewis l'~sa that produced good crops. Marvel, the tradin;, community of the area, had a thriving economy with about 15 businesses, including a bank. The irrigated acreage has now decreased to about 3 or 4 thousand acres with only a meager water supply. There is only one small general store in Marvel now. The impact resulting from prior Indian water rights could finish the area I s economy. The Animas-La Plata project provides the only practical solution to the critical social and financial problems that would otherwise develop as a result of the Indian water right claims. It would make about 80,000 acre-feet of water available for the development of land and mineral resources of the two Ute Indian tribes. As the definite plan report for the project is currently being formulated, an effort is being made to further maximize Indian participation. The tribes have indicated they are much more interested in receiving "wet" water from the project than they would be in receiving a "handful of paper water rights" with no facilities with which to put them to use. They have further indicated they would be willing to enter into an agreement whereby they would forego the use of their potential water rights in lieu of receiving water from the project. Conclusions and Recommendations The f~imas-1a Flata project offers the best and possibly the only solution to the settlement of the Indian water rights problem in the area. Up,to the present time, no water has ever been adjudicated or allocated to the Ute l'Iounta1n Ute Indian reservation. The small amount of water which the tribal members use now for domestic purposes was obtained by purchase from the Montezuma Valley Irri&ation Company and is delivered to the Indians through an open irrigation ditch. The principal occupation of the tribe is the production of cattle and sheep. Some of the best tribal grazinG lands are situated on the high mesas in the vicinity of the Mesa Verde National Park. In order to supply the cattle on these lands with drinking water, a tank truck is -5-