WSPC03491

• File Number: 8220.106.O
• Description: Colorado River Water Projects - Animas La Plata - Project Funding
• State: CO
• Basin: Colorado Mainstem
• Water Division: 5
• Date: 11/1/2003
• Author: DOI-BOR
• Title: Animas La Plata Project - Construction Cost Estimates - Report to the Secretary - November 2003
• Water Supply Pro - Doc Type: Report/Study

. factors and proposed changes included in developing the 2003 PCE.

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. a comparison of feature and key component costs between the 1999 and
2003 PCE (Appendix 4 provides a detailed cost comparison); and

The review also examined the contracting process associated with P.L. 93-638,
the Indian Self-Determination and Education Assistance Act (ISDEA or 638), to
determine if any additional costs arising from this process were projected and
included in the 1999 project cost analysis.

In addition, Reclamation's processes and organizational approaches during the
planning, formulation, design and initial construction phases of the Project were
reviewed to determine what, if any, role these factors played prior to and after the
1999 PCE was developed.

Finally, the interaction and communication with sponsors since 1999 was
considered to determine whether processes (e.g. Project Coordination Committee)
that were established to facilitate coordination and cooperation worked.

Discussion

A. Events Leading to Development of the 1999 Cost Estimate

When originally authorized, the Animas-La Plata Project consisted oftbree
reservoirs, 48 miles of canals and tunnels, and a diversion from the Animas River
at Taft, upstream of Durango, Colorado. The Project was authorized to provide
irrigation and M&I water supplies to the Colorado Ute Tribes and other project
beneficiaries. However, the Project was modified through planning and
environmental processes over the next 30 years in response to environmental,
Indian water rights, legal and cost issues. The first Environmental Impact
Statement (ElS) was filed in July 1980 (1980 EIS).

In 1988, Congress required construction of certain features of the Project to settle
Colorado Ute Tribal water rights claims. A special report on the Project in 1988
included cost estimates at October 1985 prices. Planning continued on the
Project, but construction was further postponed because new information
triggered Endangered Species Act consultation from early 1990 through late
1991. Groundbreaking for the Project occurred in October 1991, but construction
plans were halted in April 1992 by an environmental lawsuit.

As a result, Reclamation prepared and filed a final supplemental EIS
(1996 FSEIS) in April 1996 after prolonged work to address environmental issues
associated with the litigation. Project re-pricing was initiated in 1993 to reflect
current costs and proposed refinements to the Project. Reclamation used this
information to prepare the 1996 cost estimate associated with the 1996 FSEIS.
The cost estimate information was available to and used by the Ute Mountain Ute

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