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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EXECUTNE SUMMARY

features in Phase I: Ridges Basin Dam and Reservoir; Ridges Basin Inlet Conduit; and the

Durango Pumping Plant. Further development of ALP will be dependent on the outcome .

of the biological studies required by the RP A. ~

PROJECT ECONOMICS
Bookman-Edmonston Engineering, Inc. (B-E) was selected as a consultant to study benefits
which would be derived from construction of the Animas-La Plata Participating Project in
addition to those obtained using federal procedures. Specific tasks which B-E performed
and which are presented in this report include the following: (1) review of prior benefit
costs and economic studies which were prepared in the formulation of the Project; (2)
examination of the economic studies developed to support the Final Colorado Ute Indian
Water Rights Settlement Act; (3) identification and analysis of additional economic benefits,
specifically including regional benefits, that would be associated with the Project and/ or the
settlement which have not been included in prior economic analyses; (4) identification of the
negative economic impacts and costs which would be associated with the failure to complete
construction of the. Project and fulfill all terms of the Settlement Agreement; (5) assessment
of the economic viability of the Project using various public and private sector
methodologies; and (6) identification of the possible social and political impacts of the failure
of the federal government to carry out its commitments under the Colorado Ute Indian
Water Rights Settlement Act.

Through the years, there have been many economic analyses made of ALP. Reclamation
analyses of ALP are from a national perspective. Thus, many of the benefits which occur
in the regional area are not evaluated in the analyses. The Reclamation studies also include
inflation impacts on costs but include no such inflation impacts on project benefits. In
contrast, this study identifies and evaluates the effect of inflation on the Project benefits and
the secondary and indirect benefits. We believe this analysis sets forth a complete and
balanced economic analysis of ALP and the Colorado Ute Water Rights Settlement
Agreement for the benefit of the citizens of southwest Colorado and northwest New Mexico.

It is well recognized that development in a region produces additional economic benefits

beyond those provided to the principal beneficiaries of the development. Economists use

various ways to measure these indirect or secondary benefits. These secondary impacts can

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