WSP02305

• File Number: 8220.106
• Description: Animas-La Plata
• State: CO
• Basin: San Juan/Dolores
• Water Division: 7
• Date: 12/1/1994
• Author: Bookman-Edmonston
• Title: Economic Impact Study - Animas-La Plata and Colorado Ute Water Rights Settlement Act
• Water Supply Pro - Doc Type: Report/Study

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EXECUTIVE SUMMARY

government for evaluation of water projects which limits benefits to consideration
of only the national economic development.

~ There exist special benefits important to the local area in addition to the use of ALP

water supply to solve the Indian water rights issues for the Tribes. The benefit-cost

analysis takes into account all the benefits that accrue to the project area including

the secondary benefits associated with construction and development of the project.

~ This economic analysis of the Project considering changes to household income

which accrue to the region show that the Project is economically feasible. The total

income benefits to the region from ALP would be $74.8 million per year. Direct

benefit-cost ratio of 1.66 and a total benefit-cost ratio of 2.44 are very respectable

ratios for a water resource development project. These ratios are higher than those

considered by Congress at the time of authorization of ALP in 1968. While higher

than what Reclamation is currently showing, using its restricted guidelines, these

ratios represent a true picture of the economic benefit that the construction of ALP

and fulfillment of the Settlement Act would bring to the region.

~ An analysis based on change in total regional output has a direct benefit-cost ratio
of 3.50 and a total benefit-cost ratio of 5.17.

BACKGROUND
The Animas-La Plata Participating Project (ALP) was authorized as one of five western
Colorado River Storage Project Participating Projects in the Colorado River Basin Projects
Act of 1968. The principal purpose of ALP is to furnish water for irrigation and municipal
and industrial use in southwestern Colorado and in northwestern New Mexico. Prior to the
initiation of Project construction following completion of the Definite Plan Report in 1979,
the Southern Ute and Ute Mountain Ute Indian Tribes entered negotiations with the
Department of the Interior, the states of Colorado and New Mexico, and Colorado and New
Mexico non-Indian water users in an attempt to resolve their water rights under the Winters
Doctrine. These negotiations led to the Colorado Ute Indian Water Rights Final Settlement
Agreement which was signed December 10, 1986. On November 3, 1988, Congress passed

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