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I I I I I I I I I I I I I I I I I I I REGIONAL ECONOMY WITHOUT PROJECT SAN JUAN WATER COMMISSION M&I WATER SUPPLY The San Juan Water Commission (SJWC) represents the M&I water suppliers in San Juan County, New Mexico. The SJWC members are San Juan County; the cities of Aztec, Bloomfield, and Farmington; and the rural water associations of Blanco, Flora Vista, Lee Acres, Turley, Lower Valley, Navajo Dam, Northstar, Morningstar, Riverside, Southside, Upper La Plata, and West Hammond. Under Phase I of ALP, the SJWC would receive 30,800 acre-feet per year for M&I purposes. A small portion of this water would be stored in Ridges Basin Reservoir and released down Basin Creek to the Animas River for delivery to New Mexico in times of shortage and low flow. The majority of water would be diverted from the direct flow of the river, and in fact, SJWC could begin diversions now under its USBR contract if it could obtain approval for points of diversion from the New Mexico State Engineer. The scenario of not constructing ALP raises several legal questions that would have to be resolved prior to implementing an alternative for SJWC to develop a like supply of 30,800 acre-feet per year. It is probable in the event of no ALP that New Mexico would still have a water apportionment of 30,800 acre feet per year under the Upper Colorado River Basin Compact. However, there are two considerations that cloud the issue in terms of positively stating that New Mexico would still receive this water: (1) possible ramifications of the Settlement Agreement being revoked; and (2) the question of equitable apportionment in terms of relative priority dates and development of Tribal water rights in Colorado versus New Mexico. As described in the previous section regarding the Settlement, there is some concern if ALP is not constructed and the Settlement is canceled, that this 30,800 acre-feet could be lost to SJWc. In the resulting legal battle, it is hard to predict what could happen to the 30,800 acre-feet, but it is conceivable that ultimately the water could be allocated to the Tribes, the Colorado squawfish, other endangered species or some other party. This possibility is remote because the United States through the USBR holds the water rights for the 30,800 acre-feet under a permit issued by the New Mexico State Engineer for use in New Mexico by ALP beneficiaries, now represented by SJWc. However, because the permit currently is held by the USBR, it is likely a massive lawsuit would be brought to attempt to use the 3-15