BOARD01118

• Board Meeting Date: 3/21/2006
• Description: WSP Section- Animas-La Plata Project Update
• Board Meetings - Doc Type: Memo

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STATE OF COLORADO

Colorado Water Conservation Board
Department of N aturaJ Resources
13 13 SnnmAll SUM. Room 72]
~yn, Colorado 80203
Phone: (JOJ)lJ66.>w1
FAX [phone]
www cwcb St.l~ co U$

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;\IEMORAl'iDUi\I

BIUOweru
Gov~or

Rus~lI~rge
ExC'o.lllvC'Diffctor

TO:

Colorado Water Conservation Board ~1embers

Randy Seaholm ~
Chief, Water Supply Protect

Rod Kuhand1
eweB Dlrt'Ctor

FROM:

Rick 8ro.....n
Acnng Deputy D~or

DATE:

March 13. 2006

REF:

Agenda Item 8, March 21.22, 2006 Board Meeting: 'Vater Suppl)' Protection
- Animas-La Plata Project (ALP) - Section 207 of P.L 108-447

8acke.round:
Construction of the ALP is a key piece of the Colorado Ute Indian Water Rights Settlement and
will provide water to those listed in the table below. Shortly after the start of construction. the
U.S. Bureau of Reclamation (Reclamation) issued a report detailing the estimated construction
costs of the ALP and describing the reasons for a SI63 million increase o\'er the previous cost
estimate for constructing the ALP. The revised total cost estimate for ALP was S500 million in
January 2004 and that cost will escalate for inflation until construction is completed, estimated in
2008. The recent interim total allocable project cost estimate is $52 I ,033,475. The reservoir is
expected to fill by 2011.

The report describes the factors contributing to the increased costs and those factors were
discussed with the Board in January 2004. StafTwill provide Board members copies of that
should they desire. Following the issuance of the revised cost estimate report, the project
sponsors sought congressionallegislalion to limit the impact of the cost increase on their
rcpa)ment contracts, which legislation was passed in Section 207 ofP.L. 108-447.

The ALP water allocations are as follows:

Item AlPWCD SJWC lCD Colorado Nava;o SUIT UMUT Subtotal
Water S~nlv tan 5,200 20,800 1.560 10,440 4,680 33,519 33.519 109,718
Water De~lelion (an 2.600 10,400 780 5,230 2,340 16,525 16,565 54.440
Reservoir Sunn/v 2,919 3.025 1,560 10,440 869 38.109 38,108 95.030
Percentane 307% 3.18% 1,64% 10.99% 0.91% 40.10% 40.10% 100.00%

Discussion:
As you can see in the attached memo, Section 207 ofP.L. 108.447 allows the Secretary of
Interior to forgive the S 163 million cost increase and the associated inflationary cost increases

flood PrDlC'l;t10D . W'ICT Supply Plannmg and Finance. Strc'.m and L.l.ke PrOltrnOD
W'ICT Supply PnxC'CtJOn. Con5CT'V;tOOn and Droughl Pl4nrung