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<br />JJ2281
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<br />Summa/)'
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<br />. For years, the Tribes pursued an equitable settlement of their water rights claims in these
<br />river drainages. In the early 1980's, discussions were initiated to achieve a negotiated
<br />settlement of the claims, Alter continued negotiations, the Tribes and other parties signed
<br />the final Settlement Agreement on December 10, 1986. Specific legislation, the Settlement
<br />Act to implement the Settlement Agreement, was enacted by the U.S. Congress on
<br />November 3,1988. The Settlement Agreement calls for availability of Project water by
<br />January 1, 2000, to avoid potential litigation or renegotiation of the Tribal water rights
<br />claims. In the 1996 Energy and Water Appropriations Act, the U.s. Congress directed the
<br />Secretary of the Interior to proceed "without delay" with the construction of the Project in
<br />conformance with the 1991 Biological Opinion.
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<br />.:Jir Cost Sharing and Project Phasing
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<br />'.f.,.<,: ;,,00 August 15,1985, the U.s. Congress 10 Pubhc Law 99-88 appropnated $1 nulhon for
<br />, . PUD~-' ~esign and construction of the Project. The use of those funds was contingent upon the
<br />I.. . .,c.omPletiOn by June 30, 1986, of a binding, Federal/non-Federal cost-sharing agreement
<br />fJ; ~atisfactory to the Secretary of the Interior. Consequently, in late 1985, the Project
<br />- j!.qproponents and the States of Colorado and New Mexico entered into negotiations for a
<br />, -h~ost sharing agr e Federal and non-Federal entities signed the Cost Sharing 2
<br />Agreement 0 June 30, 1986, a the Settlement Agreement on December 10, 1986, both
<br />~s described a mc uded in this FSFES as Attachment V. <0:7
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<br />.V"
<br />, ;fA principal element of the Cost Sharing Agreement and the Indian water rights settle-
<br />. .m.ent was dividing construction of the Project into two phases, Phases I and II, and
<br />.Wlssociated cost-sharing obligations. The cost of constructing Phase I would be shared by
<br />:V;[i.:.Federal and non-Federal Project participants. As mentioned above, Phase I has since been
<br />".;-divided into Stage A and Stage B to accommodate the existing depletion limit of 57,100
<br />1 ')cre-feet arising from endangered species concerns, while allowing for the possibility of
<br />. '"lf~~~;" additional water availability pending the outcome of the 7-year research study for
<br />~1'.; i~ endangered fish. Phase I, Stage A has been designed to have independent utility even if
<br />. HP .j ~ , Phase B is never completed. Construction of Phase II would be the responsibility of non-
<br />., i 'i: Federal Project participants. The Cost Sharing Agreement also establishes a Tribal
<br />.... Development Fund and other Project financial arrangements. It specifies that the Tribes,
<br />under provisions of Federal law, can lease or temporarily dispose of water to the extent
<br />permitted by State and Federal laws, interstate compacts, and international treaties.
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<br />ENVIRONMENTAL CONSIDERATIONS AND REGULATORY
<br />COMPLIANCE
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<br />Lands
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<br />Reclamation's classification of Project lands was completed in the early 1970's and
<br />recognized three arable (suitable for farming) land classes. On January 19, 1982, the
<br />Secretary of the Interior certified that Reclamation had completed an adequate soil survey
<br />and classification of lands to be served by the Project. In 1986, previous legislation was
<br />amended by Public Law 99-294; the law mandated an investigation of soils characteristics
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