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I ' ~ being made to further maximize Indian participation. The tribes have indicated they are much more interested in receiving "wet" water from the project than they would be in receiving a "handful of paper water rights" with no facilities with which to put them to use. They have further indicated they would be willing to enter into an agreement whereby they would forego the use of their potential water rights in lieu of receiving water from the project. Conclusions and Recommendations The Animas-La Plata project offers the best and possibly the only solution to the settlement of the Indian water rights problem in the area. Up to the present time, no water has ever been adjudicated or allocated to the Ute Mountain Ute Indian reservation. The small amount of water which the tribal members use now for domestic purposes was obtained by purchase from the Montezuma Valley Irrigation Company and is delivered to the Indians through an open irrigation ditch. The principal occupation of the tribe is the production of cattle and sheep. Some of the best tribal grazing lands are situated on the high mesas in the vicinity of the Mesa Verde National Park. In order to supply the cattle on these lands with drinking water, a tank truck is utilized on a daily basis over a long and tortuous road. Both the Southern Ute tribe and the Ute Mountain Ute tribe have a substantial amount of land which could produce considerable feed for their livestock if water could be made available. Both reservations also contain significant coal deposits. The Animas-La Plata project is designed to furnish both tribes with sufficient water supplies to take care of their domestic, irrigation and industrial needs. The eventual construction of the project will be a test as to whether or not the federal government is serious in its many pronouncements of providing better economic opportu- nities for the various Indian tribes. In addition to the developing Indian resources, the project will make water available to the nonIndian population for substantial indus- trial development, for municipal and rural domestic uses and for the production of better crops. Aside from the valley floor of the San Luis Valley, the southwestern portion of the state is most arid in Colorado. However, the lands there are generally of high quality and will produce abundantly with irrigation. In large segments of the rural areas, the residents now haul their domestic water from distant sources and store it in home cisterns. The project is in an area of fairly high unemployment and depressed incomes. The President's recommended budget contains an item of $200,000 to complete preparation of the definite plan report during F.Y. 1977. It is therefore recommended that the Governor and the members of Colo- rado's congressional delegation be requested to support the President's recommended budget request for the Animas-La Plata project. FLS:mm -5-