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<br />PRELIMINARY DRAFf - SUBJECT TO CHANGE - 05/13/99 <br /> <br />A second way in which the tribes might decide to use their water to help satisfy a growing <br />regional demand is by marketing its water directly to other regional public water systems. <br />The tribes could either transfer water directly from Ridges Basin Reservoir, or for <br />downstream systems, release water from the Reservoir. Innovative exchanges could allow <br />the tribes to market water to systems taking water from other San Juan tributaries. For <br />example, the tribes could release extra water from Ridges Basin Reservoir to maintain <br />minimum flows in the San Juan River to compensate for extra depletion from some other <br />tributary. <br /> <br />Tribal water could also be used in a similar fashion to enhance a fishery or recreation area. <br />The tribes could either transfer water directly or through exchanges in order to enhance <br />the flows in particular stream reaches. <br /> <br />The storage capacity at Ridges Basin Reservoir will add more flexibility to such uses of <br />tribal water, creating additional value for that water. Public water supply systems, for <br />example, typically experience peak water demands during the summer months, when the <br />streamflow available for direct diversion may be limited. Similarly, fish habitats may <br />require minimum flows that may not be available during part of the year. The storage <br />capacity allows seasonal shifts of streamflow, helping to meet peak demands and to avoid <br />critical low flows. In addition, storage can also shift water supplies between years, <br />providing some water for public water systems or for environmental purposes during dry <br />years. <br /> <br />The increase in water demand induced by regional growth will tend to drive up the <br />opportunity costl of water to regional farmers and ranchers. Over time, some of the <br />farmers and ranchers may decide to take advantage of the economic opportunity and sell <br />their water rights. If enough farmers and ranchers decide to sell their rights it would <br />change the character of the whole area. To the extent that the tribal water can be used to <br />meet the regional demand it would protect the agricultural community and forestall this <br />regional change in character. <br /> <br />Legal constraints presently limit the area to which the tribes may lease their water. <br />However, these constraints may change over time in response to changing needs of the <br />public. Even if today' s constraints remained in full effect, southwestern Colorado itself is <br />growing rapidly enough to provide a market for tribal water in the long run. The greater <br />the allowed market area, the sooner the tribes' water will be in demand. <br /> <br />H. NO ACTION ALTERNATIVE <br /> <br />The modified Animas-La Plata Project is the basis for the 1986 Colorado Ute Indian <br />Water Rights Final Settlement Agreement and the Colorado Ute Indian Water Rights <br /> <br />I Opportunity cost of water is the value of water in i~ besl allemative use. For example, if water was <br />worth $10 an acre-fool 10 a rancher bul helshe could sell the waler righllO a ciiy for $20 an acre-foot, <br />then the opportunity cost of the water would be $20 per acre-foot. <br /> <br />7 <br />