ALP 5

of Reclamation there is a Possibility that the final cost of ft water and available funding m�
preclude the State from ourchasine its full water allocation. In the event that the State does
not purchase its full water allocation, the Tribal Decrees spbcify that such reallocated w;
"shall be available to the two Ute Tribes on the same terms and conditions as the water
provided under this paragraph ".
The Engineers understand that Reclamation will perform the accounting of each Project
Participant's average annual depletion to ensure compliance with and enforcement of the
federal allocation limits in the 2000 Amendments and with the overall Project's average annual
depletion limit under the federal statute. The Engineers w4Day request reports of this
information ;vhen need-e4.
VI. ACCOUNTING FOR AND PROTECTING A -LP ALLOCATIONS NOT STORED IN RIDGES
BASIN RESERVOIR, A /K /A LAKE NIGHTHORSE:
The policy of the A -LP OM &R Association is that "Whenever feasible and practical,
Project [Pjarticipants shall take delivery of their portion of the Project water supply by direct
ALP diversions ( "river water ") without putting it in storage." See Exhibit A to March 4, 2009 IGA
at para 4.02. The term "Non- stored Allocations" means Project water that is not diverted at the
DPP and pumped to Ridges Basin Reservoir through the Ridges Basin Inlet Conduit, but instead
is Project water measured at Teft, accounted for at the DPP, and shepherded, if necessary, to a
point of delivery lower in the River for use by a Project Participant in Colorado or to the state
line, as set forth in Part X, below, for use by a Project Participant in New Mexico.
The Tribal Decrees allow the two Ute Tribes' Project allocations to be measured in the
Animas River at the DPP. The Engineers therefore can account for Non - stored Allocations to the
two Ute Tribes as if they had been diverted at the DPP and pumped to the Ridges Basin
Reservoir, and can protect deliveries of these Non - stored Allocations as if they were deliveries
of reservoir releases. This means that water must be physically, legally, and operationally
available for pumping at the DPP (hereafter "Storable Flow ") before a Non - stored Allocation for
a Ute Tribe may be accounted for under the A -LP Decrees. In the course of securing the
amended Tribal Decrees it was established that the smaller proiect would not cause inffiury to
other water rights holders if operated with the by -pass flow requirement established under the
federal environmental requirements. All Non - stored Allocations delivered to a Ute Tribe will be
accounted for against the Storable Flow, which will in no case exceed the DPP Capacity. This
limitation is based on the Engineer's current interpretation of the existing decrees and other
documents related to project water use. It is not intended to prohibit the pumping of water to
storage or direct diversions by project beneficiaries (1) during "free river" conditions, (2) in the
event a junior water right is acquired for such purposes or (3) there is a further showing of
non - injury from such uses sufficient to warrant such actions under the existing decrees.
The Tribes will need to identify their points of delivery for diversions of Project water
downstream of the DPP prior to diverting their Non - stored Allocations within Colorado, just as
diversions of reservoir releases are required to be identified but not decreed. Unless Storable
Flow is available for diversion at the DPP, Project water cannot be delivered to the Tribes (other
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