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-. 001102 TESTIMONY OF THE STATE OF COLORADO BEFORE THE U.S. SENATE SUBCOMMITTEE ON ENERGY AND WATER DEVELOPMENT ANIMAS-LA PLATA PROJECT Washington D.C. March 24, 2004 Introduction The State of Colorado appreciates this opportunity to provide testimony before the Senate Subcommittee on Energy and Water Development concerning the Animas-La Plata Project (ALP) . Construction of the Animas-La Plata Project is extremely important to the State of Colorado as it is the final piece required to bring closure to the resolution of the Tribal reserved water rights claims under the 1986 Colorado Ute Indian Water Rights Final Settlement Agreement, in particular those portions of the Settlement conceming the Animas and La-Plata Rivers. Despite the considerable controversy that has been generated by the Animas-La Plata Project, there exists an extraordinary partnership between the States of Colorado and New Mexico, and the Indian and non-Indian communities in southwest em Colorado and northwestem New Mexico. Together, we have successfully quantified the reserved water right claims of the Southern Ute and Ute Mountain Ute Tribes in Colorado, and implemented most of the Settlement Agreement, in a unique way that serves as a national model. More than that, however, is a genuine sense of pride that exists between the Indian and non-Indian communities in the area, over shared use and development of water and mineral resources, economic opportunity, and preserving the quality of life and environmental heritage of the area. Through the 1986 Settlement Agreement, we have avoided protracted, expensive and divisive litigation. We have preserved non-Indian economies and provided for stable development of Tribal economies. We have avoided the social disruption resulting from the enforcement of Tribal reserved right claims. We have integrated the administration of Indian and non-Indian water rights into the State water right system. Completion of the Animas-La Plata Project is critical to preserving the benefits of the 1986 Settlement Agreement with the Ute Tribes and the stability that it brings to the citizens of the San Juan River Basin. Accomplishing these results has required vision, extraordinary leadership, respect for the needs of all sides, a willingness to listen to and explore new solutions, and a commitment to stay at the table until a solution is reached. To fully understand the importance of the Animas-La Plata project in this process, it helps to review the history of the Reservations, the Animas-La Plata Project and the 1986 Settlement Agreement. Historical Context The original Ute Reservation was established by treaty in 1868, prior to the arrival of non-Indian settlers to the area. The arrival of non-Indians resulted in conflicts, and reconfiguration of the Reservation lands. In 1895, Indians living on the Reservation