Meeting Notes 9/6-9/7/12

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Animas La -Plata Project
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• Project was originally authorized in 1956. As you might recall the reserved water rights of the
Ute Tribes have an appropriation date of 1868, which is senior to area ranchers, farmers and
towns. Therefore in order meet the rights of the Tribes and to also provide water for other
needs in the basin, A -LP was contemplated to be constructed to provide the Tribes, stored "wet"
water in conjunction with direct diversion off the river, while allowing for additional uses as well
• In 1986, Agreements were put in -place between the federal government and the Ute Tribes that
included the construction of the A -LP as part of the federal reserved water rights settlement for
the Ute Mountain Ute and Southern Ute Tribes.
• In 1998, the Department of the Interior issued a recommendation for a substantially scaled -
down project, designed primarily to satisfy Native American water rights, address municipal and
industrial needs in the immediate area, and to reduce environmental impacts. Went from a
191k AF facility to a 120k AF facility with the irrigation component of the project removed.
• In 2000, the U.S. Congress amended the Ute Settlement Act and authorized the final
configuration and cost sharing and financing of the A -LP Project. Colorado became beneficiary.
• In 2002 the project commenced construction.
• HB10 -1250 authorized $36 million for the purchase of the State's water allocation associated
with A -LP, to be appropriated in 3 - $12 million installments. The final $12 million installment
was appropriated by the general assembly in the 2012 Projects Bill.
• The State's water allocation in A -LP is 10,460 AF (Supply) or 5,230 AF (Depletion). The State has
been in negotiations with the Bureau over the past 18 months to develop a contract to purchase
the water, which was just recently executed on June 19, 2012. The purchase contract allows
the CWCB to purchase all or a portion of its water allocation. 1St - $12M payment - DPP Credit
• CWCB has requested membership in the Animas La -Plata Operation and Maintenance
Association, which would bring the membership to seven entities (Ute Mountain Ute, Southern
Ute, Water and Power Authority, Navajo Nation, La Plata Water Conservancy District, San Juan
Water Commission, and the State of Colorado). Each entity has an equal vote.
• La Plata Archuleta Water District — Purchase up to 1,000 AF (La Plata County also interested)
• A -LP water is currently restricted to M &I use. Other uses explored were 1) demands through
exchange 2) Eliminating priority calls on junior reservoirs, 3) compact compliance and 4)
augmentation, as permitted by the project decrees and federal authorization. Expanding the
uses outside M &I (i.e. irrigation, endangered species
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