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CHAPTER 2 <br />DEVELOPMENT OF ALTERNATIVES <br />2.1.1.2.2 Industrial Park Water Use <br />The Southern Ute Indian Reservation lies just south of the City of Durango. The City of Durango is <br />growing and, as a result, the demand for industrial park space is increasing. The Southern Ute Indian <br />Tribe owns land in proximity to Durango and may want to lease part of its reservation land for an <br />industrial park. This would require that water be made available. <br />2.1.1.2.3 Recreation and Tourism Development Water Use <br />Both Colorado Ute Tribal reservations are located in a scenic area that is a popular tourism destination. <br />The proximity of the Southern Ute Indian Reservation to the City of Durango would allow the <br />Reservation to take advantage of the established flow of tourists and help draw visitors to reservation <br />facilities. One possibility would be to construct a resort hotel complex, including a golf course and <br />casino. <br />The Ute Mountain Ute Reservation, although farther from the Durango tourist area than the Southern Ute <br />Indian Reservation, is adjacent to Mesa Verde National Park. This presents an opportunity to establish a <br />Tribal visitor center, with a resort hotel and golf course, to cater to visitors who are drawn by the unique <br />collection of ancient sites in the area. In addition, the Ute Mountain Ute Tribe recently purchased <br />20,000 acres of land in the La Plata River Basin, providing an opportunity to develop a dude ranch. <br />2.1.9.2.4 Energy Development Water Use <br />Both Colorado Ute Tribal reservations lie in the San Juan Basin of southwestern Colorado and <br />northwestern New Mexico. The San Juan Basin contains large coal, oil, and gas reserves and is the <br />location of three operating coal mines and many oil and gas wells. The Southem Ute Indian Reservation <br />is situated over approximately 16 billion tons of Fruitland Formation coal, about 500 million tons of <br />which lie within 500 feet of the surface. The Ute Mountain Ute Reservation overlies Fruitland <br />Formation coal deposits as well. Because of the associated economies of scale, approximately <br />14.4 million tons of coal offer potential for strip mining if combined with adjacent off - reservation <br />deposits. <br />The Colorado Ute Tribes' energy resources offer several opportunities for development. Tribal coal <br />could be mined and shipped off the reservations to fuel power plants. Tribal coal and/or gas could be <br />burned in on- reservation power plants, and the electricity generated could be transmitted to the regional - <br />power grid. All of these opportunities would require water. Surface mining requires water for dust <br />suppression and land reclamation. Coal or gas -fired power plants typically use water for cooling, as <br />would a coal gasification plant. A coal slurry pipeline would mix pulverized coal with water and pipe the <br />resulting slurry. <br />2.1.1.2.5 Livestock and Wildlife Water Use <br />Both Colorado Ute Tribal reservations contain large areas of rangeland, but the use of this rangeland is <br />limited by the scarcity of developed water sources. Livestock operators could make more effective use of <br />the rangeland if additional watering facilities were installed. In addition, using some of their water to <br />help sustain wildlife is important to the Colorado Ute Tribes. The Colorado Ute Tribes would be <br />interested in providing watering facilities for wildlife, especially where pipelines could be tied into the <br />delivery systems established for other uses on the reservations. <br />2 -7 2.1 INTRODUCTION AND BACKGROUND <br />