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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />REGIONAL ECONOMY WITHOUT PROJECT <br /> <br />industry of the Reservation is agriculture. In the Arizona v California decision, a Special <br />Master appointed by the Court concluded that open-ended decrees would put all junior <br />water rights in jeopardy and severely hamper financing of irrigation projects because the <br />population and needs of the Reservation could change. The Special Master determined the <br />future needs of each Reservation would be determined on the basis of the amount of <br />Reservation lands that were practicably irrigable. Under the Practicably Irrigable Acreage <br />(PIA) test, lands and associated water supplies must combine to create an economically <br />viable and sustainable agricultural operation. The Indian reserved water right was defined <br />to be the amount of water required to carry out such irrigation, with the priority date of the <br />right being the date of the Reservation establishment. <br /> <br />Other Court decisions relating to trust responsibility of the United States to protect Tribes' <br />rights to use Reservation lands has placed the United States in the position of insuring that <br />Tribes have a water supply that will allow the Reservations to be developed for agricultural <br />purposes. <br /> <br />POTENTIAL IMPACTS <br /> <br />The initial approach in evaluating the potential impacts of not constructing ALP was to <br />identify what the alternatives were for each of the principal beneficiaries in developing a <br />water supply comparable to the supply th"y would receive from ALP. However, this <br />approach is not fully conclusive because, if ALP is not constructed, there may not be, in all <br />cases, an alternative for developing a like supply for all uses, particularly for non-Indian <br />irrigation and rural municipal and industrial (M&I) supplies. In view of this possibility and <br />based on available information within the scope of this effort, the evaluation of the potential <br />impacts of not constructing ALP focused on three main areas: (1) Colorado Ute Indian <br />Water Rights Settlement Agreement; (2) City of Durango M&I water supply; and (3) San <br />Juan Water Commission M&I water supply. The potential impacts for these three areas are <br />described below. <br /> <br />3-3 <br />