ALP 13

Page 3
While negotiating with the Bureau, the Team has also been negotiating with the SWCD
and the Tribes to discuss the possibility that the State not purchase the full allocation and allow a
reversion to the Tribes. These negotiations resulted in a Tribal offer and Team and Tribal
counteroffers. The actual proposals and counter proposals from the Tribes and CWCB are
attached for review. The Tribal counteroffer was received on May 11 and a meeting on the offer
held on May 13, necessitating the distribution of this memo at this time.
TRIBES' COUNTER OFFER
State purchases 780 AF (depletions) and retains seat with Association
4,450 AF reverts to Tribes split equally and put into Water Bank
• Water and Purchase Bank
• Water put in Water Bank for compact compliance or any other uses.
• Tribes get proceeds from such uses (i.e. compact bank contracts, leases, etc.).
• Net income to Tribes equals gross income minus OM &R and administrative costs to
CWCB and Tribes.
o Tribes have sole discretion to move water from Water Bank to Purchase Bank.
o Tribes can sell at fair - market value, but not less than 70% of capital cost and not more
than actual capital costs.
Based on the status of the negotiations with the Bureau and the Tribes, and taking into
account the information presented in the A -LP Phase I and II Studies, the Team recommends for
the Board's consideration a combination of a water purchase and a reversion to the Tribes that
may be in the best interest of the State.
TEAM'S PROPOSED COUNTER OFFER
• State purchases 1,560 AF (depletions) and retains seat with Association
• 780 AF to retain seat with Assoc. and 780 AF to hold for future sale (Archuleta Water District)
• Remaining water reverts to Tribes split equally and put into Water Bank
• Water and Purchase Bank
• Water put in Water Bank for compact compliance or any other uses.
• Tribes and CWCB will work cooperatively to include non - reversion Tribal water in
Water Bank.
• Tribes get proceeds from such uses (i.e. compact bank contracts, leases, etc.).
• Net income to Tribes equals gross income minus OM &R and administrative costs to
CWCB and Tribes. Administrative costs will need to be quantified.
• Tribes and CWCB will mutually agree when water is to be transferred from Water Bank
to Water Purchase Account for future sale.
• Tribes can sell water at fair - market value, but not more than the actual State's actual
capital costs for the water.
• Future water sales limited to Colorado water providers.
• Future water sales will be structured such that future OM &R is the responsibility of the
purchaser and not the Tribes or CWCB.