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amounts will be lower than this estimate because this estimate does not take into account the variable <br />costs fund that has been established by the two tribes. <br />A -LP Study <br />This fall CWCB hired the services of Brown and Caldwell (Consultant) to make an initial examination <br />of the need and potential use within the basin of A -LP Project water if the state should choose to <br />purchase its allocation. The Consultant found that there is an immediate interest by local water <br />providers to purchase up to 1,000 AF of consumptive use. <br />The latest Statewide Water Supply Initiative (SWSI) information identified a 4,900 AF gap in demand <br />versus supply by 2030 for the entire Dolores/San Juan/San Miguel Basin. The draft Colorado River <br />Water Availability Study ( CRWAS) indicates that southwestern Colorado could be hit the hardest <br />under various climate scenarios. In addition, the CRWAS shows that under some scenarios Colorado <br />may face an increased chance of compact curtailments. <br />The State and the Southwestern Water Conservation District are currently working together on <br />completing Phase II of the Animas-La Plata Water Supply and Demand Study. This effort will <br />examine exchange potentials, compact issues, climate change and the potential impact on demand, <br />detailed evaluation of operating, maintenance, and replacement costs, final cost allocation by the <br />Bureau, potential federal statute revisions, and financing options. The draft scope is currently being <br />prepared and the Phase II Study should be completed by July /August of 2010. <br />Potential Benefits Bevond Marketing <br />Besides using the water for direct municipal and industrial use, there are some other benefits that the <br />State could receive from securing its A -LP pool allocation: <br />• The Tribes current allocation must be used on the reservations or with the Southwestern Water <br />Conservation District boundaries, per their water rights decree. If the State should choose not <br />to purchase any of its water that water will revert equally back to the two Tribes. If the State's <br />water reverts to the tribes, that water could be leased or sold. The State's water is not <br />restricted for use on the reservations or district boundaries, therefore if the State's water were to <br />revert to the Tribes, it could be leased or sold to other water users outside of the reservations or <br />district boundaries. <br />• In addition, any water that may revert to the Tribes may be at greater risk to a possible inter - <br />basin transfer. <br />• A -LP water is Colorado entitled water under the Colorado River Compact, the Upper Colorado <br />River Compact, and the Animas-La Plata Compact and the settlement for Indian reserved water <br />rights. The State should protect compact entitled waters of the state. <br />• The purchase of A -LP water (780 AF depletion minimum) allows the State to have a seat on <br />the A -LP Operation, Maintenance and Replacement Association. Each Association Member <br />has an equal vote, regardless of the amount of water purchased. Therefore, it's important for <br />the State to have a future voice /vote in A -LP to ensure that the Tribes or adjacent States do not <br />have a greater say in the decision making process of the Association. <br />