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03/26/2004 13:31 7204890524 FAX PAGE 04/08 001113 several years. Therefore, the ability to capture and store water during times of plenty is critical to provi.ding a stable economy. In 1956, Congress enacted the Colorado River Storage Project Act (CRSP), which provided for comprehensive water developnent throughout the Upper Colorado River Basin. This Act authorized the construction of the initial CRSP units -- Curecanti, Flaming Gorge, Navajo and Glen Canyon; a number of participating projects, including the Florida Project; and the preparation of planning reports -- including the l\nilnas-La Plata and Dolores Projects. The Florida Project was completed to SerVe lands on Florida Mesa in 1963, which included same Indian lands but which did not caapletely meet Indian needs. The CRSP Act also established a mechanism for assisting in the funding of construction of these and other projects, through the creation of the Upper Colorado River. Basin Fund (the "Basin Fund"). In short, hydroelectric power revenues generated frOlll the CRSP Units' are credited to the Fund to pay.. for certain construction, operation and maintenance costs of the initial CRSP units. The balance of any revenues are credited to each of the upper basin states to pay for that portion of the construction costs of participating projects allocated to irrigation, that are beyond the ability of irrigators to repay. Additionally, participating projects can take advantage of favorable rates for CRSP power. In, 1968, Congress enacted the Colorado River Basin project Act (CRaP). Among other things, the CRaP Act authorized the construction of the Animas-La Plata and Dolores Projects, concurrent with the completion of the Central Arizona Project. The authorization for the Animas-La Plata project was for a configuration substantially different than the presently proposed configuration. However, the Project was always cqnt~lated to serve both Indian and 'non-Indian needs. Thus, as of the late 1960's, there was same resolution of Tribal claims, and a good deal of water developnent undertaken and contemplated in the San Juan River Basin. Same but not all of this developnent benefited the Tribes. However, quantification of Tribal claims, and their impact on non-Indians, were certainly open questions. The United States SUpreme Court established a test for the amount of such claims, based on practicably irrigable acreage, which includes. both present and future irrigation needs. Quantification of the Tribal claims in Colorado contnenced in 1972, when the United States Department of Justice filed reserved. rights clailns on behalf of the two Ute Tribes in federal district court. The state of Colorado and other parties intervened, and moved to dismiss on the grounds that under the McCarren Amendment jurisdiction belonged in state water court. The United States Supreme Court ruled that. state court was the most appropriate forum in which to achieve integrated. adjudication of reserved rights claims. Imnediately thereafter, the United States filed extensive claims in state water court. 3