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Section 1 <br />Introduction <br />1.1 Overview of Animas -La Plata Project <br />The development of A -LP Project has been the result of a partnership among entities in Colorado and <br />New Mexico and three Indian tribes. The A -LP Project is located in southwestern Colorado and <br />northwestern New Mexico. The A -LP Project was authorized for investigation by the U.S. Bureau of <br />Reclamation (Reclamation) in the 1956 Colorado River Storage Project Act and authorized for <br />construction in the 1968 Colorado River Basin Project Act as a three reservoir, 48 -mile canal project to <br />deliver water from the Animas Basin to the La Plata Basin for irrigation purposes. However, for a variety <br />of reasons, construction never proceeded. <br />In 1986 the Agreement in Principle Concerning the Colorado Ute Indian Water Rights Settlement and <br />Binding Agreement for Animas -La Plata Cost Sharing (1986 Agreement) was executed and included <br />construction of the A -LP Project as part of the federal reserved water rights settlement for the Southern <br />Ute and Ute Mountain Ute tribes. The 1986 Agreement was entered into by United States, the State of <br />Colorado, the Lite Mountain Ute Tribe, the Southern Lite Tribe, Colorado Water Resources and Power <br />Development Authority (CWAPA), the Animas -La Plata Water Conservancy District, the New Mexico <br />Interstate Stream Commission, the San Juan Water Commission, and Montezuma County, Colorado. <br />Implementation of the 1986 Settlement Agreement by the United States began when Congress passed <br />the Colorado Ute Indian Water Rights Settlement Act of 1988. However, there remained a number of <br />concerns with the A -LP Project and negotiations continued. In 2000 the U.S. Congress amended the <br />1988 Colorado Ute Indian Water Rights Settlement Act. The 2000 Amendments describe the non - Tribal <br />municipal and industrial water capital repayment obligations for the A -LP Project. A Non - Tribal A -LP <br />Project water allocation could be obtained by a non - Tribal Project Sponsor upon payment in full of their <br />proportionate share of capital costs prior to initiation of construction. In such case, the re- paying Project <br />Sponsor would not be subject to interest accruing on the project during construction. For those non - <br />Tribal parties who did not purchase water prior to initiation of construction, interest on their share of A -LP <br />Project capital costs would continue to accrue during construction. <br />The A -LP Project created Lake Nighthorse which has a total storage capacity of 120,000 AF and is <br />located on Basin Creek near Durango, Colorado. The Congressionally authorized water allocations for <br />the A -LP Project beneficiaries, referred to as the Project Sponsors, are listed in Tables 1 -1 and 1 -2. <br />Annual depletions are for M &I purposes only and may not exceed 57,100 AF annually. <br />Table 1-1. <br />.do <br />Supply (AF/YR) <br />Project <br />Depletion (AF/YR) <br />Southern Ute Indian Tribe <br />33,050 <br />16,525 <br />Ute Mountain Ute Tribe <br />33,050 <br />16,525 <br />Animas -La Plata Water <br />Conservancy District/ <br />CWR &PDA <br />5,200 <br />2,600 <br />State of Colorado <br />10,460 <br />5,230 <br />Totall <br />81,760 <br />40,880 <br />RNAL ALP Report_1_13111-L.Docx <br />1 -1 <br />