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CHAPTERI <br />INTRODUCTION, PURPOSE OF, AND NEED FOR THE PROJECT <br />❑ Establish a water acquisition fund that could be used by the Colorado Ute Tribes for a variety of <br />economic development purposes, including the acquisition of existing water rights. The water <br />supply from the facility at Ridges Basin, coupled with the water acquisition fund and its potential <br />for securing additional water rights for the Colorado Ute Tribes, would satisfy all outstanding <br />Colorado Ute Tribal water rights claims on the Animas and La Plata rivers. <br />❑ Comply with all applicable laws, including ESA and NEPA, and comply with the Service's <br />determination that depletions from the San Juan River Basin cannot exceed an average 5 7, 100 <br />afy as outlined in the 1996 Biological Opinion for the ALP Project. Depletion limitations also <br />assist in protecting the interests of downstream tribes and others with substantial water rights <br />claims. <br />Table 1 -2 displays the allocation of water among the Colorado Ute Tribes and other project beneficiaries <br />that would be provided by the structural components of the Administration Proposal. Under the <br />allocations shown below, the Colorado Ute Tribes are still approximately 13,000 afy short of the total <br />quantity of depletion recognized in the Settlement Agreement. The Administration Proposal, therefore, <br />also includes a non - structural element that would establish and utilize a water acquisition fund, which the <br />Colorado Ute Tribes could use over time to acquire water rights on a willing buyer /willing seller basis. <br />The water acquisition fund was developed to acquire 13,000 afy of depletion in addition to the depletions <br />shown in Table 1 -2, or for other uses that they may choose. <br />Table 1 -2 <br />Administration Proposal Water Allocations for the Structural Components of the ALP Project <br />Water Recipient <br />Depletion from the San Juan River Basin (afy) <br />Southern Ute Indian Tribe <br />19,980 <br />Ute Mountain Ute Tribe <br />19,980 <br />Navajo Nation <br />2,340 <br />Animas -La Plata Water Conservancy District <br />2,600 <br />San Juan Water Commission <br />10,400 <br />Subtotal <br />55,300 <br />Allowance for Reservoir Evaporation <br />1,800 <br />Total Depletion <br />57,100 <br />Because of the importance of the 57,100 afy average annual depletion as allowed under the Section 7 <br />Biological Opinion for the ALP Project, depletion values are generally displayed throughout the report. <br />It is a general practice to use a depletion factor of 50 percent for M &I water use (50 percent of the water <br />diverted from a river system for an M &I use is returned back to the river system as a return flow). <br />Depending on how the water is used, the depletion factor can vary. The depletion factor for municipal <br />and domestic uses generally average somewhat less than 50 percent and the depletion factor for industrial <br />uses generally average somewhat more than 50 percent. See Section 2.1.1.3.1 for additional information <br />on depletion factor. <br />IPreliminary cost estimates indicate that a fund of $40 million would be provided as a settlement amount <br />(water acquisition fund) to the Colorado Ute Tribes to be used on a discretionary basis to purchase land <br />1.2 PROJECT HISTORY 1 -8 <br />