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JUL-~I-~b NUN 08:c4 AN /' HJ\ NU. r. uo 000755 In summary, let me say that I am disappointed by the federal govemmene s lack of progress in supporting this proposal. The Interior Department can, in my view, playa very helpful role in this controversy. They were represented in our discussions concerning the Animas-La Plata Lite alternative. They could help us by taking the two alternatives developed in our negotiation process, plug them into the appropriate environmental processes, select Animas-La Plata Lite as the preferred alternative and quickly come out with a decision. In my view, either Interior should work with the product that we have developed and come to a decision, or Congress should direct Interior on how to resolve this issue by passing H.R. 3478. It's the only way we are going to get this resolved short of going to court for years to come. H.R. 3478, and S. 1771 the companion Senate bill, can serve as the framework for any further discussions to address Interior's concerns. But one thing is certain, we cannot start from "square one." Too much time has been lost already and we have discussed plenty of alternatives. These bills represent the product of difficult compromise and they should not be rejected. Historical Context This project has a lengthy and complex history. Therefore, to fully explain Colorado's position, a brief review of the history of the Reservations, the Animas-La Plata Project and the 1986 Settlement Agreement will be helpful. The original Ute Reservation was established by treaty in 1868, prior to the arrival of non-Indian settlers to the area. The arrival of non-Indians resulted in conflicts, and reconfiguration of the Reservation lands. In 1895, Indians living on the Reservation were given the option of settling on 160-acre allotments, or moving to the western portion of the Reservation. Non-Indians were able to acquire some of these allotments as well. In 1934 this homesteading process was closed. The result is the present configuration of checkerboard Indian and non-Indian lands on the Southern Ute Reservation and the contiguous block nature of the Ute Mountain Ute Reservation. These lands are downstream from non-Indian development in Colorado. Almost every river in southwestern Colorado passes through one or both of the Reservations. The rights of Indian Tribes to reserved water are based on the date of the reservation.1 In the late 1800s, non-Indian irrigation was beginning upstream from the Reservation, on the Pine River. The Southern Ute Tribe filed claims for irrigation purposes in 1895, and water litigation ensued unti11930, when a federal court awarded the Indian claimants the number one water right on the Pine River. This priority created a severe water shortage for the non-Indian irrigators. As a result, the United States constructed Vallecito Dam in 1941, to serve both Indian and non-Indian lands. In contrast, the Mancos Project was developed on the Mancos River by 1950. Although the Mancos River is the primary river through the Ute Mountain tIte Reservation, the Tribe did not receive the benefit of water service from the Project. In fact, the town of Towaoc did not even IWinters v. United States, 207 U.S. 564 (1908). 3