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<br />000464 <br /> <br />The settlement provided for in the Agreement in Principle <br />avoids costly and devisive litigation over the nature and extent <br />of these Indian water rights. Further, the settlement provides <br />benefits to all water users in Southwest Colorado and to <br />municipal and agricultural water users in New Mexico. <br /> <br />The Agreement in Principle has three major components: <br /> <br />(1) the extinguishment of disruptive Winter rights <br />claims through the delivery of water from the Dolores <br />Project and the Animas-La Plata Project (ALP), and the <br />quantification of water for the Tribes on various <br />streams, and <br /> <br />(ii) the commitment to non federal cost sharing -- up <br />front financing for the Animas-La Plata Project and for <br />the Tribal development funds, and <br /> <br />(iii) the establishment of Tribal development funds to ' <br />assist the Tribes to make their Reservation <br />economically self sufficient. <br /> <br />The Ute Mountain Ute Tribe is already entitled to 24,700 <br />acre feet of water from the Dolores Project. The Ute Mountain Ute <br />Tribe will also receive a 26,000 acre foot agriculture allocation <br />and a 6,000 acre foot M&I allocation from the Animas-La Plata <br />Project (ALP). Under the the ALP, the Southern Ute Tribe will <br />receive a project allocation for municipal and industrial uses of <br />26,500 acre feet and 3,400 acre feet of agricultural water. <br />Under the settlement, the Tribes will not be obligated to repay <br />the costs associated with the provision of their allocations <br />until revenue is actually gene~ated from the use of Tribal water. <br />Aside from receiving project water the Southern Ute Indian Tribe <br />is entitled to a total of 11,226 acre feet of water per year from <br />other water sources. Similarly, the Ute Mountain Ute Tribe will <br />receive 21,000 acre feet per year of junior right water from the <br />Mancos River and 4,800 acre feet per year on the Navajo Wash as <br />well as a direct flow right from the San Juan River in the amount <br />of 1,600 acre feet. In addition, the parties to the Agreement in <br />Principle have agreed upon a procedure for the administration of <br />those rights in the future. <br /> <br />The second major component of the Agreement in PrinCiple is <br />the commitments made by the State of Colorado, the Ute Tribes, <br />and local water users to honor Congress' 1985 mandate (expressed <br />in the 1985 Supplemental Appropri~tions Act) to develop a <br />reasonable arrangement for cost sharing satisfactory to the <br />Secretary of the Interior for the ~onstruction of the Animas- <br />La Plata Project. The State of New Mexico has also indicated <br />that its water users will participate in the proposed cost <br />sharing -- up front financing arrangement. Through a combination <br />of cash contributions, the staging of certain project components, <br />the assumption of certain features as non-federal <br /> <br />2 <br />