ALP 14

3. In 1988, the United States Congress enacted the Colorado Ute Indian Water Rights
Settlement Act of 1988 (Public Law 100 -585) (the "Settlement Act "). The Settlement Act authorized
the Secretary of the Interior to supply both irrigation and municipal and industrial water supply to
the Ute Mountain Ute and Southern Ute Indian Tribes from the Animas -La Plata Project in
settlement of water rights claims of the Tribes, and also fulfilled the other requirements of the Final
Settlement Agreement. Tribal Development Funds as required under the 1986 Agreement and the
Final Settlement Agreement were also established and funded. On December 19, 1991, the various
contingencies of the 1986 Agreement and the Final Settlement Agreement having been fulfilled,
Consent Decrees were entered by the District Court in and for Water Division No. 7 adjudicating the
Tribes' reserved water rights. As provided by the Final Settlement Agreement, however, the Consent
Decrees allow the Tribes to litigate or renegotiate their claims from the Animas and La Plata rivers
if certain facilities of the Animas La Plata Project were not completed by January 1, 2000.
4. In November, 1989, in furtherance of the 1986 Agreement, the United States and the
Colorado Water Resources and Power Development Authority ( "Authority") entered into an
Agreement and Instructions for Administering Escrow Account for the Animas -La Plata Project, and
an Escrow Agreement with the Colorado State Treasurer, (collectively, the "Escrow Agreements "),
and established an Escrow Account for funding the State of Colorado's cost - sharing obligation for
the Animas -La Plata Project.
5. Construction of the Animas -La Plata Project has not occurred as contemplated by the 1986
Agreement, the Final Settlement Agreement, the Settlement Act, the Consent Decree, or the Escrow
Agreements. In December of 2000, the United States Congress enacted the Colorado Ute Settlement
Act Amendments of 2000 (Public Law 106 -554) (the "2000 Amendments'). The 2000 Amendments
authorize the Secretary of the Interior to complete construction of, and to operate and maintain, a
reconfigured Animas -La Plata Project, consisting of facilities to divert and store water from the
Animas River to provide for an average annual depletion of 57,100 acre -feet of water, to be used for
municipal and industrial water supply only, for the Ute Mountain Ute and Southern Ute Indian
Tribes and for other tribal and non -tribal entities in the Four Corners Region of the United States.
6. The purpose, therefore, of this Amended and Restated Agreement in Principle Concerning
the Colorado Ute Indian Water Rights Settlement and Binding Agreement for Animas -La Plata Cost
Sharing is to amend and restate the 1986 Agreement to reflect the substantial changes to the Animas-
La Plata Project, and to effectuate changes to the agreements of the parties concerning final
settlement of the Ute Mountain Ute and Southern Ute Indian Tribes' reserved water rights, and cost
sharing and financing of the Animas -La Plata Project, necessitated by the changes in the Project and
the 2000 Amendments.
Water Rights Settlement.
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