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San Juan River Basin Navajo-Gallup Project Update: The issue of exporting:and using Upper Colorado River Basin water in the Lower Colorado River Basin has reached a resoluti~n. At the Upper Colorado River Commission meeting in Pinedale, Wyoming on June 17 the Commission approved the.attached resolution that would allow the project to proceed in accord with the Colorado River and Upper Colorado River Compacts. Animas-La Plata Project Update: In fiscal year 2003, Reclamation will fund more than $33 million worth of construction and design activities in support oft/1e Project. Reclamation has $35 million available this fiscal year and the budget request for next ~ear is $58 million. Work on the construction of the Durango Pumping Plant is now in high gear. Weeminuche Construction Authority, Reclamation's primary construction contractor for the project, is in the 6th week of blasting operations. Approximately 5000 cubic yards of rock and blast material have been removed from the pumping plant site as of June 6, 2003. . A total of approximately 115,000 cubic yards ofrock will need to be removed to accommodate construction ofthe pumping plant. General excavation and blasting ofthe rock for both the pumping:plant and intake structure will continue through the summer and into the fall. Approximately 70 'separate blasting sequences will be required to reach a channel depth of 60 feet below ground surface!to facilitate construction ofthe pumping a plant, intake structure and surge chamber. ., Negotiations with the Western Area Power Association (W AP A) on the construction and funding of the transmission lines that will carry power to the Durango Pumping Plant continue to move forward. Reclamation anticipates that W APA will have responsibility for the cost and construction of these transmission lines. Construction of the lines would occur simultaneously with the construction ofthe Durango Pumping Plant facility. Work in support of the Ridges Basin Dam and Reservoir: is proceeding on schedule as well. Weeminuche Construction Authority recently completed! constructing haul roads to facilitate traffic during the construction of the dam and outlet works. Excavation for the outlet portal, which will allow stored water to be released back into the Animas River, began in December 2002. Staff continues to participate with Reclamation and others on the "Project Operations Committee" (POC) formed to oversee the long-term operation, maint~nance and replacement activities of the project. By consensus, the POC will be an oversight committee for the Operating Entity. Reclamation would contract directly with the Operating Entity selected by the POCo The POC is working on a final version ofthe bylaws and a draft O&M Transfer Agreement, which would be between Reclamation and the Operating Entity. The O&M Transfer Agreement would specify the relationship between the POC, Operating Entity and Reclamation. A subcommittee was formed to draft the O&M Transfer Agreement consisting of one representative each from Reclamation, Ute Mountain Ute Tribe, Southern Ute Indian Tribe, ALP District and San Juan Water Commission. A draft O&M Transfer Agreement has been prepared and submitted to the POCo The subco,nmittee also worked on the POC Agreement; there are still several sections on which the subcommitte~ does not agree. Reclamation will redraft tit some sections, run the changes past their Solicitor, and provide them to the subcommittee. Reclamation stressed the importance of having an O&M Transfer Agreement in place prior to Grande Basin regarding the status and implementation ofthe ground-water model. As a result ofthese e rneetings, further refinements are being made to the model. The surface water model, which has a variable dependent on the ground-water model, will be finalized once the ground-water model is completed. 26