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<br />I <br />I <br />'I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />construction of the Towaoc pipeline project so long as the Board, in <br />its sole discretion, finds that the required work can be <br />sati sfactori 1 y perfonned. Notwi thstandi ng the provi si ons of Secti on <br />37-60-121 (1) (b) (IV), Colorado Revised Statutes, the total amount <br />of the Board's cost for the Towaoc pipeline project shall be <br />nonreimbursable in recognition of the fact that the construction of <br />the said project by the State is a component of the proposed <br />settlement of the Ute Mountain Ute Tribe's reserved water rights <br />claims on certain tributaries of the San Juan River. The Board may <br />not proceed with the design and construction of the said project, nor <br />expend any moni es therefore, until the Attorney General certifi es to <br />the Board that the Ute Mountai n Ute Tri be has entered into a bi ndi ng <br />settlement with the State which has been approved by the Secretary of <br />the Interior and which will quantify and resolve all of the Tribe's <br />reserved water right claims in Colorado. <br /> <br />Furthennore, before the Board can proceed with the project, the Tribe <br />must have entered into a contract wi th the Board by whi ch the Tri be <br />agrees to assign to the Board, in the event that the approved <br />settlement is not fully consul1l1lated for any reason, one-half, but not <br />to exceed six million dollars, of any damages w...ich the Tribe may <br />obtain in litigation against the Uniteti States." <br /> <br />On Oecember 9, 1986, the State of Co1orarto, Ute Mountai" Ute Tribe, t"'e IJ. S. <br />Department of the Interior, the U. S. Department of Justice, and e1eve" other <br />entities signeti a document called the "Co1oratio Ute Indian Water Rights Final <br />Settlement Agreement." Untier the tenns of this agreement the Ute Mountain Ute <br />Tribe will be entitled to water rights for municipal and industrial use from <br />the Dolores Project. The water, measured at McPhee Reservoir, is to be a <br />maximum of 1,000 acre-feet (af) per year. <br /> <br />Under the agreement, the Tribe is obligated to make payment for the <br />reimbursable component of the Operation, Maintenance, and Replacement (ClM&R) <br />costs upon putting the water to use. As of the date of this report there has <br />not been a formal agreement si gned between the Tri be and the Bureau for the <br /> <br />1-6 <br /> <br />1040c <br />