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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 />would curtail diversions by the city. As described later, the effect of increasing the call on <br /> <br /> <br />the city's rights has been incorporated into the sizing of an alternative storage reservoir for <br /> <br /> <br />the city of Durango. <br /> <br />As illustrated above, identifying potential impacts on the Animas and La Plata Rivers raises <br />serious questions about the potential impacts on New Mexico. The Tribes' claims were filed <br />in Colorado District Court for water rights to serve Reservation lands within the state of <br />Colorado. With the exception of a relatively small portion of the Ute Mountain Ute Indian <br />Reservation located in New Mexico, the Reservation lands are located in the state of <br />Colorado. Therefore, an argument could be made that the state of Colorado should bear the <br />burden of the Tribes' claims and that New Mexico's allocation of water under the Upper <br />Colorado River Basin Compact should not be affected. However, there is a question under <br />equitable and apportionate principles New Mexico could possibly be impacted by the Tribes' <br />claims. This could happen if a conflict would arise after the Tribes were granted the water <br />rights and New Mexico placed. a call on the Animas River. Potentially such a call could <br />result in a determination of equitable apportionment by the Upper Colorado River <br />Commission considering the states' overall allocations, contributions of other streams for <br />meeting New Mexico's allocation, pre- and post-compact uses, and interstate priority dates. <br />Such a determination could require New Mexico to share in curtailments. <br /> <br />There is also some concern that the United States could assign the 30,800 acre-feet of water <br />for the San Juan Water Commission to the Tribes if ALP is not constructed and the <br />Settlement Agreement is canceled. This possibility occurs because the United States through <br />Reclamation holds the water rights in the state of New Mexico for the 30,800 acre-feet, and <br />the United States is the Trustee on behalf of the Tribes. <br /> <br />For the purpose of this analysis, a conservative measure of the potential impact of the failure <br />to construct ALP and the resulting revocation of the portion of the Settlement Agreement <br />pertaining to the Animas and La Plata Rivers is the displacement of 10,000 acres of presently <br />irrigated non-Indian lands. The maximum potential loss of presently irrigated non-Indian <br />lands appears to be on the order of 31,500 acres. <br /> <br />3-10 <br />