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The Nu\'ujo Dam und Reservoir;'1 New Mexico is fed by the Sail Juan Rivo; the second largest tributary to the Colorado Rive,; 14 Colorado is the site of the controversial Animas- La Plata Project (ALP) originally intended to deliver almost 200,000 acre-feet ot water a year to American Indian tribes, urban communities and farmlands. Over 30 years after the project was authorized, it has yet to be constructed due to unresolved issues, primarily over a lack of appropriated funds and disagreement from groups about the need for the water. The original project would have redirected water from the Animas River to an off-river reservoir for storage mainly benefiting users in Colorado and New Mexico. Portions of the water from the revised project will be used to satisfy the claims of the Ute Mountain Ute and Southern Ute Indian tribes and municipali- ties. The project also includes a small amount of water for the NavajO Nation. Debate over the project has surrounded who will use the water and at what price. Inflation over the 30 years since its concep- tion drove the price for the original project from about $326 million in 1978 to nearly $750 million in 1998- making congressional appropriation a challenge in an era of fiscal conservatism over new water projects. Though Congress debated axing the project in 1997, almost $11 million was appropriated (in addition to the $62 million since 1968) to keep the project afloat. Under a 2000 Record of Decision (ROD) issued by Interior. a new plan has been developed to meet obligations to the tribes established under a 1988 settlement act. The elements of the new plan include a reservoir about one-third the size of the originally planned reservoir (120.000 acre.feet vs. 270.000 acre-feet) at a cost of about $280 million. with each tribe receiving 19.980 acre-feet of water. Compared with the original plan, the ROD eliminates nearly all non-Indian agricultural water from the equation. In addition, the tribes would receive $40 million as com- pensation for the downsized reservoir (reduced "wet" water supply) that could be used for infrastructure on the reservations to deliver the stored water or for purchasing land and corresponding water rights. The ROD also provides for a pipeline to carry water to the Navajo Reservation near Shiprock. New Mexico and water supplies for other area cities. As stated in the ROD. depletion tram the Animas River would be limited to 57.100 acre-feet annually in order to meet environmental compliance. A bill authorizing the amendments to the original 1988 settlement passed Congress in 2000. Funding for ALP is expected to begin in 2002 with a five year funding cycle and a seven year construction cycle. NEW MEXICO New Mexico does not receive water directly from the mainstem Colorado River and instead receives its 11.2 percent apportionment (approximately 800.000 acre-feet) from the San Juan River system, which is regulated by the 1.7 million-acre.feet Navajo Dam and Reservoir. As a result of the Upper Basin Compact. the Colorado River indirectly could provide about one- third of the 2.3 million acre-feet 01 water consumed by New Mexico every year. Of the 5.7 million acre- feet of water which flows throughout New Mexico, the majority continues downstream to other states. The San Juan River is the second largest tributary to the Colorado; contributing about 2 million acre- feet annually. The Navajo Dam and Reservoir. located on the San Juan River. were completed in 1962 by the Bureau as part of the Colorado River Storage Project (CRSP). The Navajo Nation - the nation's largest American Indian reservation - IS authorized to irrigate about 111,QOO acres of farmland with water from the reservoir upon comple- tion of the Navajo Indian I rrigation Project. New Mexico depends on several other CRSP projects tor help to deliver water throughout the state: 1) The San Juan.Chama Project provides an additional It 0,000 acre-feet of water to the Rio Grande Basin which delivers water to urban centers including Santa Fe and Albuquerque as well as to irrigation districts. The feat is accom- plished by diverting water in Colorado from several upper San Juan River tributaries through the Azotea Tunnel under the Continen- tal Divide to the Rio Grande Basin in New Mexico. 2) The Hammond Project. completed in 1962, diverts up to 20.000 acre-feet at water from the San Juan River into irrigation canals for 3.900 acres of farm and pasture lands, The project includes a salinity control unit. Like all the Upper Basin states, New Mexico is workHlg to maintain a careful balance between a growing populallon and environmental concerns over endangered native fish populations. In cooperation with the state of Colorado, American Indian tribes and several federal agencies. a recovery program (San Juan River Recovery Imple-