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<br />repayment obligation to the United States on this 5,000 acre\feet ofM&I water is approximately <br /> <br />$1600 per acre\foot. <br /> <br /> <br />(d) Navajo Reservoir. <br /> <br /> <br />Under our alternative, the 57,000 acre feet of ALP project water in the Animas River will <br /> <br /> <br />continue to flow in the Animas River. As set out in the next section, the relatively modest amount <br /> <br /> <br />of water necessary for New Mexico entities could be stored and released by exchange from <br /> <br /> <br />Navajo Reservoir. Although this element of the proposal would need to be the subject of <br /> <br /> <br />discussions with the Navajo Nation, this amount represents only a very small percentage of the <br /> <br /> <br />storage capacity of Navajo. <br /> <br /> <br />3. Additional conditions on the Fund. <br /> <br /> <br />. Acquisitions of private fee tand by the Tribes would be made tax neutral, Le., set up so that <br /> <br /> <br />adverse tax revenue consequences for local government are avoided. This could be <br /> <br /> <br />accomplished through several different mechanisms. <br />. When agricultural land was acquired, as a practical matter that land would remain agricultural <br />at least over the short term. The acquisition will not impact existing users. <br />. To facilitate and preserve long-term options, water rights acquired under the Fund should be <br />exempted from claims of abandonment under Colorado water law. <br />4. Benefits. <br />This alternative proposal has a number of substantial benefits. Among others, it: <br />. Provides the Tribes with water rights and "wet water" on tribal lands. <br /> <br /> <br />. Is less expensive than all other proposed project configurations. <br /> <br /> <br />. Will preserve the environment and have less impact than new water development. <br /> <br />8 <br />