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<br />.001740 <br /> <br />. <br /> <br />. <br /> <br />Financial Aspects of the Settlement <br /> <br />Non-federal financial contributions to the settlement take <br />two forms: (1) up-front financing for the Animas-La Plata <br />Project. which project will provide a sizeable portion of the <br />Tribes' water. and (2) payments by the State of Colorado to <br />tribal development funds. A tabular summary of the non-federal <br />financing is attached hereto. <br /> <br />with respect to the Animas-La Plata Project. non-federal <br />financing is being provided pursuant to the requirements of the <br />Supplemental Appropriations Act of 1985 (Chapter IV. P.L. <br />99-98. "Department of the Interior. Bureau of Reclamation. <br />Construction Program." 99 Stat. 293). The cost sharing <br />agreement for which that legislation calls was entered into on <br />June 30. 1986. with the Department of the Interior (copy <br />attached). <br /> <br />Federal budgetary outlays for the Animas-La Plata Project <br />have been reduced by 39 percent relative to what would have <br />been required had the project been built entirely at federal <br />expense as authorized by Congress. These reductions are <br />accomplished through cash contributions by non-federal parties <br />in the amount of $68 million towards the construction of the <br />first phase of the project's facilities and through non-federal <br />parties assuming responsibility for the $133 million <br />construction cost of all of the second phase of the project's <br />facilities. <br /> <br />With respect to payments to the Tribes. the Agreement <br />calls for $11 million to be provided by the State of Colorado <br />towards the $60.5 million tribal development funds. $6 million <br />of this will be provided via construction by the state of a <br />pipeline which will deliver the Ute Mountain Ute Tribe's <br />domestic water supply from the Dolores project to its <br />reservation. The remaining $5 million will be paid in cash to <br />the tribal development funds. <br /> <br />Colorado has already met nearly all of its obligations. <br />The State's contribution to the Animas-La Plata Project has <br />already been appropriated to the Colorado Water Resources and <br />Power Development Authority. The Authority is in the process <br />of negotiating an escrow agreement with the Bureau of <br />Reclamation for the transfer of those funds. With respect to <br />the pipeline from the Dolores Project to the Ute Mountain Ute <br />Reservation. the Colorado Water Conservation Board has already <br />completed the design and engineering of that project. We <br />expect to go to construction shortly. Finally. the $5 million <br />cash contribution to the tribal development funds has already <br />been appropriated by the Colorado General Assembly and will be <br />available on July 1. 1988. <br /> <br />-4- <br /> <br />; <br />l._~~ <br />