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<br />001675 <br /> <br />19 <br /> <br /> <br />Hon. J. BENNETT JOHNSTON, ' <br />Chairman, Committee on Energy and Natural Resources, <br />U.S. Senate, Washington, DC. <br />DEAR MR. CHAIRMAN: This is to present our views on S. 1415, the <br />"Colorado Ute Indian Water Rights Settlement Act of 1987." <br />As you are aware, on December 10, 1986, the two Colorado Ute <br />Tribes, the State of Colorado, several other parties and representa- <br />tives of the Federal Government entered into a "Final Settlement <br />Agreement" for the purpose of settling the outstanding water <br />claims of the tribes on several streams in southwest Colorado. In <br />this instance; as is typical in situations like this one, exercise ofthe <br />1868 priority date of the tribes' Federal reserved water' rights <br />claims could severely disrupt the existing regimen of water use on <br />those streams, By way of compromise, and in an admirable display <br />of community spirit, the tribes have agreed to forego this early pri- <br />ority date in return for water supplied from the Dolores' and <br />Animas-La Plata Projects, <br />We support legislation to implement the December 10, 1986, <br />Final Settlement Agreement, However, as presently drafted, S. <br />1415 differs from the Final Settlement Agreement in several im- <br />portant respects; We stand ready to work with the non-Federal par- <br />ties on legislation consistent with our previous agreements regard- <br />ing Ute Indian water rights and construction of the Animas-La <br />Plata Project. ' . ' <br />We want to emphasize the interests we have had in pursuing the <br />Animas-La Plata Project, This Administration has long had as a <br />standard for new water projects that the projected long-term bene- <br />fits of the project must at least equal its projected costs. Under this <br />standard, the Animas-La Plata Project is not economically feasible <br />at current discount rates although it would be consideredeconomi- <br />cally feasible at its originally authorized discount, rate of 3,25 per- <br />cent. <br />,In evaluating this project, we have considered the benefit/cost <br />standard, non-Federal cost-sharing, and water rights settlement <br />concerns. We have, therefore, decided to participate in the Animas- <br />La Plata Project because it combines Federal construction expendi- <br />tures with non-Federal monies to produce a project that provides <br />for water development and settles the Indian water claims. <br />The Animas-La Plata Project will provide a ,means to satisfy the <br />water claims of the Colorado Ute tribes, while leaving intact the <br />historical uses already in place on these streams, As trustee for <br />these tribes, the Department of the Interior desires to see the <br />tribes establish secure and' valuable water rights that will be of <br />true benefit to the tribes, rather than mere "paper" water rights, <br />The project provides an opportunity to achieve these objectives, <br />Without doubt, the single most controversial aspect of this bill is <br />Indian water leasing, The bill provides for the tribes to have the <br />opportunity to lease water provided by the settlement for off-reser- <br />vation use both in the State of Colorado and out-of-state, We must <br />emphasize here that the December 10, 1986, agreement provides for <br /> <br />U,S. DEPARTMENT OF THE INTERIOR, <br />OFFICE OF THE SECRETARY, <br />Washington, DC, October 19, 1987. <br />