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<br />, <br /> <br />Settlement provides that funds in excess of $200 million will be paid by the United States to the <br />Tribe and, if payment is completed before January 1,2005, the Tribe waives its claims under the <br />Deferral Agreement. Additionally, the Tribe receives approximately $2.0 million per year from <br />the repayment obligation collected from subscribers to the Bonneville Unit of the CUP. After 50 <br />years, the amount is calculated based upon the value ofM&1 water. In addition to settling the <br />Tribe's claims under the Deferral Agreement, the Settlement provides Congress' approval of a <br />quantification of the Tribe's reserved water rights as set out in the proposed 1990 Ute Indian <br />Compact (which has not been approved by the Tribe or the State of Utah), and, allows for the <br />increased beneficial use of the Tribe's quantified reserved water rights. <br /> <br />Further progress on these CUP Replacement Projects awaits agreement on Reservoir operations <br />between the Tribe, State, non-Indian water user organizations and Department of the Interior. <br />Discussions between the parties are ongoing. <br /> <br />QUANTIFICATION OF THE TRIBE'S RESERVED WATER RIGHTS <br /> <br />In 1980 the State of Utah authorized, confirmed and approved the Ute Indian Water Compact <br />which recognized a specified amount of water from the Colorado River as apportioned to the <br />United States in perpetuity, in trust, for the Ute Indian Tribe and others (such as Indian allottees) <br />with an 1861 priority date. <br /> <br />In a tribal 1988 referendum vote, a majority of those voting approved the 1980 version of the <br />compact within the context of approving a framework for an overall water settlement package, <br />including a financial package and the guaranteed construction of the Uintah, Upalco and Ute <br />Indian Units as originally contemplated. Following the referendum, questions were raised about <br />the validity of the election. In addition, Congress failed to consider a bill implementing the <br />overall water settlement package and the validity of the approval of the Compact without the <br />proposed financial package and construction ofthe originally proposed CUP units was further <br />questioned. At any rate, the 1980 version of the Compact was never approved by Congress, <br /> <br />Following Congress' failure to consider the Tribe's settlement package, the Tribe and the State <br />renegotiated certain provisions the 1980 version of the Compact. In addition, the Tribe <br />negotiated with the Central Utah Water Conservancy District for inclusion of a financial <br />settlement within the larger Central Utah Project Completion Act. Those negotiations resulted in <br />Title V of the CUPCA within which Congress ratified a 1990 version of the Compact. Congress <br />recognized within Title V that the Compact still required ratification by the State and Tribe, an <br />action that neither party has yet taken. <br /> <br />Quantification of the Tribe's reserved water rights has been based upon a tabulation which was <br />prepared to identify and define the federally reserved water rights of the Tribe. As noted above, <br />the Tabulation, entitled "Water Rights Claims, Uintah and Ouray Indian Reservation, Utah" <br /> <br />26 <br />