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<br />~ <br /> <br />.13 '.9317:11 MRYNES,ERRDFORD & SHIPPS <br /> <br />- -----,...-; :>rl.C::: <br /> <br />mandate of the United States Congress In the 1985 federal appropriations bill. As a <br />result of the Congressional A1LP Project cost-sharing requirement, the Water Districts and <br />other water entities, the Southern Ute and Ute Mountain Ute Indian Tribes, the states of <br />Colorado and New Mexico. and the federal government negotiated the Cost Sharing <br />Agreement. <br /> <br />3. Colorado Ute Indian Water B\l:lhts Sllttlement Aoreement <br /> <br />At the same tlm., at the request of the U.S. Justice Department and Colorado <br />Attorney General, the Ute Mountain Ute and Southem Ute Indian Tribes entered into <br />negotiations to quantify their reserved water rights, The Tribes recognized that, while <br />litigation might have led to a quantification of their reserved water rights, litigation woulcl <br />have involved huge costs and also might not have provided the Tribes with Industrial <br />water to develop their natural resources. Other parties to the negotiations included the <br />U,S. Department of the Interior, the states of Colorado and New Mexico. and local non- <br />Indian water users, Including the Water.Dlstrlcts, <br /> <br />The Tribes and the Water Districts chose negotiation over litigation. because full- <br />blown litigation woulclln.vitably have led to the bitter divisiveness between Indians and <br />non-Indians, which has been experienced in other western states. The Tribes' assertion <br />of their Winters reserved water rights within the context of litigation could have deprived <br />residents along the La Plata River. which crosses the Southern Ute Indian Reservation, <br />of the water they need to survive and coulcl have adversely affected the City of Durango's <br />gravity-flow water rights In the Florida River and the continued existence of farming and <br />ranching along that river. The Water Districts and the Tribes, having worked long and <br />hard to develop an atmosphere of cooperation in southwestern Colorado, therefore, <br />decided to negotiate the issue of the Tribes' reserved water rights in a way that woulcl <br />. leave existing community goodwill Intact. The Settlement Agreement was executed on <br />December 10, 1988. The Settlement Act became law on Novemb.r 3, 1988. The <br />Settlement Act endorses the Settlement Agreement; ratifies the use of the AlLP Project, <br />as well as the Dolor.s Project, as contemplated by the Agreement; authorizes the federal <br />contribution to development funds for both the Ute Mountain Ute and the Southern Ute <br />Indian Tribe; and confirms, wijh significant modification to the out-of-state provisions. the <br />administrative provisions of the Agreement. The AlLP Project must be built if the United <br />Stat.s Is to fulfill Its obligations to the Tribes and meet the objective of the settlement. to <br />provide a firm water supply to the Tribes. The Settlement Act also approved the Cost <br />Sharing Agreement. The Southem Ute Indian Tribe and the Ute Mountain Ute Indian <br />Tribe, as well as the water user organizations and the States of Colorado and New <br />Mexico. have relied on the Cost Sharing Agreement and the Settlement Act, <br /> <br />By virtue of the settlement, the AlLP Project provides many beneflts to the Tribes <br />that they could not obtain through litigation - principally, a flrm water supply for Mil <br />purposes with favorable repayment terms. The MP Project's Phase I facilities will supply <br />the Southern Ute Indian Tribe with 26,500 acre feet of municipal and Industrial water and <br /> <br />4 <br /> <br />-~-r---'"""T- <br />