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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 />attempted, it is likely that failure to construct ALP would result in litigation concerning the <br />Tribes' reserved water rights. There exist different options as to whether the litigation <br />would reach only as far as the reserved water rights for the Animas and La Plata Rivers, or <br />if failure to construct ALP would jeopardize the entire Settlement Agreement, thereby <br />litigating the water rights for all claims by the Tribes. For the purposes of this analysis, it <br />is assumed that failure to construct ALP would only impact the claims on the Animas and <br />La Plata Rivers and the measure of this impact would correspond to the amount of water <br />diverted for project purposes by the Tribes from ALP as specified in the Settlement <br />Agreement and as summarized below in Table 3.3. The question also remains whether both <br />Tribes would litigate or whether only one Tribe would choose to negotiate and accept <br />substitute benefits to those described in the Settlement. For purposes of this analysis, it is <br />assumed that both Tribes would choose to litigate. <br /> <br />TABLE 3.3 <br /> <br /> Indian Water Supply from ALP <br /> (acre-feet per year) <br /> Ute Mountain Ute Southern Ute Total <br />Irrigation 27,200 3,400 34,600 <br />M&I 6,000 26,500 32,500 <br />TOTAL 33,200 29,900 63,100 <br /> <br />It is unclear through litigation which river, either the Animas or the La Plata, would supply <br />a like amount of water that would have been delivered through ALP. It is also unclear <br />what facilities would be necessary for the Tribes to develop this 63,100 acre-feet of water, <br />particularly because the average annual streamflow for the La Plata River at Hesperus is <br />only 29,960 acre-feet per year and the La Plata River Compact divides the water between <br />the states of New Mexico and Colorado on essentially an equal basis. It is assumed that the <br />Tribes would obtain an 1868 priority date for their claims on these rivers, which would be <br />senior to nearly all other water rights. For purposes of this discussion, it is fairly assumed <br />that all of the La Plata River flows would be required to satisfy the Indian claims, and the <br />remainder of the claims would be supplied from the Animas River. It is also assumed that <br /> <br />3-8 <br />