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<br />. '000481 <br /> <br />- 9 - <br /> <br />viii. President Reagan's letter of January 24, 1984, to Senator <br />Paul L(lxalt which established that in financing/cost sharing prior commit- <br />ments to individual states, such as those made to New Mexico and Colorado <br />with respect to authorization of the Animas-LaPlata Project, must be con- <br />sidered and be a factor in negotiations leading to project construction, that <br />cost-sharing/financing would be on a case-by-case basis and w thin the <br />reasonable capability of non-Federal participants. The President also <br />referred to negotiated settlement of Indian water rights disputes which has <br />been used successfully with the Animas-La Plata Project as the co re of the <br />Winters water rights settlement with the two Tribes. <br /> <br />2. Up-Front Financing/Cost- Sharing Proposal <br />a. $ 78.3 million worth of up-front and cash contributions during <br />construction and removing $ 81. 8 million Federal responsibility for cons truc- <br />tion of Southern Ute Reservoir and Ute Mountain Ute irrigation facilities <br />result in a 28.5% reduction ($160.1 million) in Federal monetary outlays. <br />b. In accordance with colloquy in the Senate between Senators <br />Dole and Hatfield $67.1'million, the discounted worth of "local consideration" <br />or fut ure payments on the project by New l'vi;Kico and Colorado beneficiaries, <br />are counted as part of the local cost share, bringing the total non- Federal <br />contribution to $227.2. million. <br />c. As another cost-sharing commitment towards settlement of the <br />Indians Winters water rights claims, Colorado is contributing $11 million <br />to a development fund, part of which will be used to construct a pipe line <br />and distribution system to bring domestic water from the Dolores Project to <br />the Ute Mountain Ute Reservation. The $49.5 million to be contributed to <br />the development fund by the United States reflects historic breach of trust <br />claims, and will be used to develop Tribal resources of the Ute Mount ain <br />Ute and Southern Ute Indian Reservations under the administration of the <br />Secretary of the Interior. <br />