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<br />Our review also disclosed that there may be a possibility of using a portion of the <br />Dolores Project's developed water supply to meet some of the Animas-La Plata <br />Project's commitments, The manager of the Dolores Water Conservancy District <br />told us that 3,750 acres of farmland expected to be developed under the Dolores <br />Project have not been put into production by irrigators because of the costs of <br />on-farm development. This acreage represents as much as 6,400 acre-feet of water <br />annually that may not be used. Also, another 3,900 acre-feet of the municipal and <br />industrial water supplies developed by the Project were not taken by water users and <br />probably will not be taken in the near future, Consequently, as much as <br />10,300 acre-feet of unused Dolores Project water may be available to meet other <br />purposes, including Indian water rights, In this regard, the Bureau should work with <br />the Tribes to determine whether the Dolores Project could supply a greater share of <br />the water supply committed under the Settlement Act. <br /> <br />We recognize that any reevaluation of the Animas-La Plata Project must consider <br />the contractual obligations to the state and local entities that signed the cost-sharing <br />and Indian water rights settlement agreements and, in good faith, provided funds to <br />implement the terms of those agreements. Consequently, these entities should be <br />involved in any restructuring of the Project, and the cost-sharing agreements should <br />be revised accordingly. '.' <br /> <br />" <br />, <br />t~~ <br />~r <br /> <br />~~ I <br /> <br />Recommendations <br /> <br />We recommend that the Commissioner, Bureau of Reclamation: <br /> <br />1. Revise, to the extent practicable, the cost allocation and repayment <br />arrangements for the Dolores Project to exclude indirect irrigation benefits and to <br />recover prior operating deficits with interest. <br /> <br />2, Reevaluate the economic benefits and financial feasibility of developing the <br />irrigation water supply component of the Animas-La Plata Project. As part of this <br />reevaluation, the Bureau should eliminate the use of indirect irrigation benefits and <br />revise estimates of payment capacity to reflect expected operation and maintenance <br />costs and farm income without agricultural subsidies, <br /> <br />. ~,', <br /> <br />:~ <br /> <br />3. Inform the Congress of the economic and financial viability of the <br />Animas-La Plata Project based on the results of the reevaluation provided for in <br />Recommendation 2. If warranted, the Commissioner should seek Congressional <br />approval for restructuring the Project to limit the size and scope of the Project to <br />only those water supply functions that are either economically and financially viable <br />or required under the terrns of the Colorado Ute Indian Water Rights Settlement <br />Act. <br /> <br />.. <br />r':' <br />,A: <br />~~! <br />,--.: <br />r <br /> <br />15 <br />