ALP 14

AMENDED AND RESTATED AGREEMENT IN PRINCIPLE
CONCERNING THE COLORADO UTE INDIAN WATER RIGHTS SETTLEMENT
AND BINDING AGREEMENT FOR ANIMAS -LA PLATA COST SHARING
Introduction
1. On June 30, 1986, the United States, the State of Colorado, the Ute Mountain Ute Tribe, the
Southern Ute Indian Tribe, the Colorado Water Resources and Power Development Authority, the
Animas -La Plata Water Conservancy District, the New Mexico Interstate Stream Commission, the
San Juan Water Commission, and Montezuma County, Colorado, entered into the Agreement in
Principle Concerning the Colorado Ute Indian Water Rights Settlement and Binding Agreement for
Animas -La Plata Cost Sharing (the "1986 Agreement'). The 1986 Agreement set forth the
Agreement in Principle of the United States, State of Colorado, Ute Mountain Ute Tribe, and
Southem Ute Indian Tribe for settlement of the Tribes' outstanding reserved water right claims in
the State of Colorado. A crucial component of the contemplated water rights settlement was the
provision of water to the Tribes from the Animas -La Plata Project, a participating project of the
Colorado River Storage Project Act, authorized by the Colorado River Basin Project Act, in
satisfaction of the Tribes' reserved rights claims from the Animas and La Plata Rivers. As an
integral part of the contemplated settlement, the 1986 Agreement also set forth the Binding
Agreement of the United States, State of Colorado, Colorado Water Resources and Power
Development Authority, Animas -La Plata Water Conservancy District, New Mexico Interstate
Stream Commission, San Juan Water Commission, Montezuma County, Colorado, Ute Mountain
Ute Tribe, and Southern Ute Indian Tribes, for cost sharing and financing of the Animas -La Plata
Project.
2. The 1986 Agreement contemplated a final water rights settlement that would provide for:
(1) a consent decree quantifying the Tribes' reserved rights that would be contingent upon adoption
of specified legislation, including legislation approving the construction of and provision of water
supply to the Tribes from the Animas -La Plata Project; (2) establishment and funding of certain
tribal development funds; and (3) appropriate finality provisions. Pursuant to the 1986 Agreement,
on December 10, 1986, the United States, State of Colorado, Ute Mountain Ute and Southern Ute
Indian Tribes, and participating private and governmental entities within the State of Colorado
entered into the Colorado Ute Indian Water Rights Final Settlement Agreement (the "Final
Settlement Agreement "). The Final Settlement Agreement quantified the entitlements of the Tribes
to reserved water rights in the State of Colorado and provided for administration of those reserved
rights. It called for submission of a stipulation reflecting the terms of the agreement to the District
Court in and for Water Division No. 7 and the entry by that Court of a Consent Decree embodying
the terms of the Final Settlement Agreement, contingent on the adoption of certain legislation
necessary to achieve the terms of the settlement, and the establishment and funding of tribal
development funds as contemplated by the 1986 Agreement.