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v~/,~/,vv~ ~o.uo rhA LUL ~~~ ~~L~ lNJJ1AN A~'~'A1J{S 141 005 001138 . 6. Over $60,000,000 in planning costs have been shaved off because the BaR has determined they were incurred for the agricultural portion of the project that was supposedly eliminated by the so-called 1999 compromise. These are still part of the projecrs cost to the public and should be shown as such. Moreover, as we will discuss later. the agricultural portion of this project is stiil very much alive i" the mi"ds of the major backers of the project. 6. The Ute tribes received $60,000,000 in ALP settlement money back in 1987. This money also should be added In as a pUblic cost. Indeed, the Utes were awarded another $40,000,000 in the 1999 amendments. This money should also be shown as a public cost even though the BaR is asking the BIA to budget for that money so that tt does not undercut the money they have to spend on construction and does not show up as a project cost. 7. The BaR's 1999 cost estimates failed to account for the power lines and other infrastructure required to bring federally subsidized power to the project pumping plant at Durango. The BaR is presently asking WAPA to request $10,000,000 in its budget to fund this portion of the project. Once again this is a project cost and should be added in even if it comes disguised in WI'PA's budget. . 8. In 1996, we asked the Department of Interior to calculate the value of lost hydropower and increased salinity from project water diversions. Their estimate was a public cost of $18,000,000 annually. Clearly, over the 100-year life of the project those public costs will reach into the billions of dollars. Moreover, the huge power requirements for project pumping will be robbed from present CRSP users. It is not unlikelY, therefore, that another coal-fired power plant will be required In the 4-corners area to replace the power needed for project pumping and that iost because of project diversions. These costs, too, have not been estimated or acknowledged for what they are, project induced costs to the public. There are many other costs which remain hidden or half buried, but even the foregoing give ample proof that this project is a bank buster. So, when we add into this putrid mix the fact that there are no known uses for most project water, the burdensome imbecility of this project becomes even more pronounced. In fael, we have been in court for almost two years trying to find out the intended uses of project water, for "beneficial use" is a requirement before a water right can be granted under Colorado law. Project proponents have refused to provide any information on use. As a result, the American taxpayer is advancing truck loads of scarce public dollars for a project that doesn't even have a secured water right With which to fill the reservoir. On top of that, the BaR rushed into the few repayment contracts it has for small amounts of project water knowing that the cost estimates they were basing these contracts on were wrong. They even threatened project backers that if they didn't sign up for water Immediately they would have to pay more when the real costs became known. These contractors are now refusing 10 pay more no matter what the final costs of the project may be. This threat defies federal reclamation law requiring full repayment of the costs of M&I water, plus interest. It also helps explain why BOR is attempting to have other agencies such as WAPA fund some of the construction outlays. We mentioned earlier that the agricultural portion of the project is still alive and well. We know this from recent court briefs in which one of the projecfs chief backers, the Southwest Water Conservation District, is fighting our efforts to have them abandon the agricultural water rights for the Animas-La Plala Project. Despite the 1999 legislation which supposedly eliminated agriculturai water from the project, they've declared they intend to use this water for irrigation. Perhaps that explains why project pumps were greatly increased in size in the final design. Now multiple filling of the project reservoir can be easily accomplished so that project backers can have their cake and eat it too. It is Candide!