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JUL-27-98 MON 09:28 AM t-AX NO. t'. Ie 000772 water from Navajo Reservoir, and a commitment to conduct a seven year study of the endangered species. The recovery program continues to make progress in furtherance ofits goals. The Amendment of the Settlement Agreement Despite Congressional blessing of the far-reaching Settlement Agreement, lawsuits and controversy delayed construction ofthe AirlmasMLa Plata Project. However, in anticipation of eventual completion of the Project, the states, Tribes and local water users have continued to rely on and support the Agreement. It is important that Congress understand the scope and significance of the actions taken by state, Tribal and local water users in reliance on completion of the Settlement Agreement. . The Settlement Agreement established the quantification and priority of Tribal reserved and non-reserved water rights on many streams and rivers in Southwestern Colorado. These rights have been decreed in Colorado Water Court. The Settlement Agreement also established specific conditions concerning the administration and use of the water rights of the Tribes consistent with state law, including agreements concerning changes in use both on and off the Reservations. Those agreements are critical to the integrated administration of Indian and non-Indian water rights. . Under the Settlement Agreement, the Tribes have the right to receive the following amounts of water, through the Project, from the Animas and La Plata Rivers: Ute Mountain Ute Tribe: 6000 aflyr for m & i 26,300 afJyr for irrigation Southern Ute Tribe: 26,500 af/yr m & i 3,400 aflyr irrigation These are maximum amounts, subject to shortage sharing provisions. . Under the Settlement Aot, the Tribes received several benefits, including Congressional relief from the Non-Intercourse Act and economic reliefby relieving the obligation of the Tribes' repayment obligation until water is beneficially used. . The state of Colorado has complied with requirements of the Settlement Agreement for significant cost-sharing with and financial responsibility to the Tribes. The state has deposited $5 million into the Tribal Development Fund, has spent $7.8 million to construct the Towaoc Pipeline and domestic water distribution system, has spent $300,000 toward cost-sharing for the AnimasMLa Plata Project, and has committed $47.7 million in cash, held in escrow, toward cost-sharing for the Project. . The Project is the beneficiary of Colorado River Storage Project power revenues, both for the repayment of certain capital costs and for pumping costs. . 10