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[House Report 106-1001]
[From the U.S. Government Publishing Office]

106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                    106-1001

======================================================================

 
             COLORADO UTE SETTLEMENT ACT AMENDMENTS OF 2000

                                _______
                                

October 25, 2000.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Young of Alaska, from the Committee on Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3112]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Resources, to whom was referred the bill 
(H.R. 3112) to amend the Colorado Ute Indian Water Rights 
Settlement Act to provide for a final settlement of the claims 
of the Colorado Ute Indian Tribes, and for other purposes, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.
    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; FINDINGS; DEFINITIONS.

  (a) Short Title.--This Act may be cited as the ``Colorado Ute 
Settlement Act Amendments of 2000''.
  (b) Findings.--Congress makes the following findings:
          (1) In order to provide for a full and final settlement of 
        the claims of the Colorado Ute Indian Tribes on the Animas and 
        La Plata Rivers, the Tribes, the State of Colorado, and certain 
        of the non-Indian parties to the Agreement have proposed 
        certain modifications to the Colorado Ute Indian Water Rights 
        Settlement Act of 1988 (Public Law 100-585; 102 Stat. 2973).
          (2) The claims of the Colorado Ute Indian Tribes on all 
        rivers in Colorado other than the Animas and La Plata Rivers 
        have been settled in accordance with the provisions of the 
        Colorado Ute Indian Water Rights Settlement Act of 1988 (Public 
        Law 100-585; 102 Stat. 2973).
          (3) The Indian and non-Indian communities of southwest 
        Colorado and northwest New Mexico will be benefited by a 
        settlement of the tribal claims on the Animas and La Plata 
        Rivers that provides the Tribes with a firm water supply 
        without taking water away from existing uses.
          (4) The Agreement contemplated a specific timetable for the 
        delivery of irrigation and municipal and industrial water and 
        other benefits to the Tribes from the Animas-La Plata Project, 
        which timetable has not been met. The provision of irrigation 
        water can not presently be satisfied under the current 
        implementation of the Federal Water Pollution Control Act (33 
        U.S.C. 1251 et seq.) and the Endangered Species Act of 1973 (16 
        U.S.C. 1531 et seq.).
          (5) In order to meet the requirements of the Endangered 
        Species Act of 1973 (16 U.S.C. 1531 et seq.), and in particular 
        the various biological opinions issued by the Fish and Wildlife 
        Service, the amendments made by this Act are needed to provide 
        for a significant reduction in the facilities and water supply 
        contemplated under the Agreement.
          (6) The substitute benefits provided to the Tribes under the 
        amendments made by this Act, including the waiver of capital 
        costs and the provisions of funds for natural resource 
        enhancement, result in a settlement that provides the Tribes 
        with benefits that are equivalent to those that the Tribes 
        would have received under the Colorado Ute Indian Water Rights 
        Settlement Act of 1988 (Public Law 100-585; 102 Stat. 2973).
          (7) The requirement that the Secretary of the Interior comply 
        with the National Environmental Policy Act of 1969 (42 U.S.C. 
        4321 et seq.) and other national environmental laws before 
        implementing the proposed settlement will ensure that the 
        satisfaction of the tribal water rights is accomplished in an 
        environmentally responsible fashion.
          (8) Federal courts have considered the nature and the extent 
        of Congressional participation when reviewing Federal 
        compliance with the requirements of the National Environmental 
        Policy Act of 1969 (42 U.S.C. 4321 et seq.).
          (9) In considering the full range of alternatives for 
        satisfying the water rights claims of the Southern Ute Indian 
        Tribe and Ute Mountain Ute Indian Tribe, Congress has held 
        numerous legislative hearings and deliberations, and reviewed 
        the considerable record including the following documents:
                  (A) The Final EIS No. INT-FES-80-18, dated July 1, 
                1980.
                  (B) The Draft Supplement to the FES No. INT-DES-92-
                41, dated October 13, 1992.
                  (C) The Final Supplemental to the FES No. 96-23, 
                dated April 26, 1996;
                  (D) The Draft Supplemental EIS, dated January 14, 
                2000.
  (c) Definitions.--In this Act:
          (1) Agreement.--The term ``Agreement'' has the meaning given 
        that term in section 3(1) of the Colorado Ute Indian Water 
        Rights Settlement Act of 1988 (Public Law 100-585; 102 Stat. 
        2973).
          (2) Animas-la plata project.--The term ``Animas-La Plata 
        Project'' has the meaning given that term in section 3(2) of 
        the Colorado Ute Indian Water Rights Settlement Act of 1988 
        (Public Law 100-585; 102 Stat. 2973).
          (3) Dolores project.--The term ``Dolores Project'' has the 
        meaning given that term in section 3(3) of the Colorado Ute 
        Indian Water Rights Settlement Act of 1988 (Public Law 100-585; 
        102 Stat. 2974).
          (4) Tribe; tribes.--The term ``tribe'' or ``tribes'' has the 
        meaning given that term in section 3(6) of the Colorado Ute 
        Indian Water Rights Settlement Act of 1988 (Public Law 100-585; 
        102 Stat. 2974).

SEC. 2. AMENDMENTS TO SECTION 6 OF THE COLORADO UTE INDIAN WATER RIGHTS 
                    SETTLEMENT ACT OF 1988.

  Subsection (a) of section 6 of the Colorado Ute Indian Water Rights 
Settlement Act of 1988 (Public Law 100-585; 102 Stat. 2975) is amended 
to read as follows:
  ``(a) Reservoir; Municipal and Industrial Water.--
          ``(1) Facilities.--
                  ``(A) In general.--After the date of enactment of 
                this subsection, but prior to January 1, 2005, the 
                Secretary, in order to settle the outstanding claims of 
                the Tribes on the Animas and La Plata Rivers, acting 
                through the Bureau of Reclamation, is specifically 
                authorized to--
                          ``(i) complete construction of, and operate 
                        and maintain, a reservoir, a pumping plant, a 
                        reservoir inlet conduit, and appurtenant 
                        facilities with sufficient capacity to divert 
                        and store water from the Animas River to 
                        provide for an average annual depletion of 
                        57,100 acre-feet of water to be used for a 
                        municipal and industrial water supply, which 
                        facilities shall--
                                  ``(I) be designed and operated in 
                                accordance with the hydrologic regime 
                                necessary for the recovery of the 
                                endangered fish of the San Juan River 
                                as determined by the San Juan River 
                                Recovery Implementation Program;
                                  ``(II) include an inactive pool of an 
                                appropriate size to be determined by 
                                the Secretary following the completion 
                                of required environmental compliance 
                                activities; and
                                  ``(III) include those recreation 
                                facilities determined to be appropriate 
                                by agreement between the State of 
                                Colorado and the Secretary that shall 
                                address the payment of any of the costs 
                                of such facilities by the State of 
                                Colorado in addition to the costs 
                                described in paragraph (3); and
                          ``(ii) deliver, through the use of the 
                        project components referred to in clause (i), 
                        municipal and industrial water allocations--
                                  ``(I) with an average annual 
                                depletion not to exceed 16,525 acre-
                                feet of water, to the Southern Ute 
                                Indian Tribe for its present and future 
                                needs;
                                  ``(II) with an average annual 
                                depletion not to exceed 16,525 acre-
                                feet of water, to the Ute Mountain Ute 
                                Indian Tribe for its present and future 
                                needs;
                                  ``(III) with an average annual 
                                depletion not to exceed 2,340 acre-feet 
                                of water, to the Navajo Nation for its 
                                present and future needs;
                                  ``(IV) with an average annual 
                                depletion not to exceed 10,400 acre-
                                feet of water, to the San Juan Water 
                                Commission for its present and future 
                                needs;
                                  ``(V) with an average annual 
                                depletion of an amount not to exceed 
                                2,600 acre-feet of water, to the 
                                Animas-La Plata Conservancy District 
                                for its present and future needs;
                                  ``(VI) with an average annual 
                                depletion of an amount not to exceed 
                                5,230 acre-feet of water, to the State 
                                of Colorado for its present and future 
                                needs; and
                                  ``(VII) with an average annual 
                                depletion of an amount not to exceed 
                                780 acre-feet of water, to the La Plata 
                                Conservancy District of New Mexico for 
                                its present and future needs.
                  ``(B) Applicability of other federal law.--The 
                responsibilities of the Secretary described in 
                subparagraph (A) are subject to the requirements of 
                Federal laws related to the protection of the 
                environment and otherwise applicable to the 
                construction of the proposed facilities, including the 
                National Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.), the Clean Water Act (42 U.S.C. 7401 et 
                seq.), and the Endangered Species Act of 1973 (16 
                U.S.C. 1531 et seq.). Nothing in this Act shall be 
                construed to predetermine or otherwise affect the 
                outcome of any analysis conducted by the Secretary or 
                any other Federal official under applicable laws.
                  ``(C) Limitation.--
                          ``(i) In general.--If constructed, the 
                        facilities described in subparagraph (A) 
                        constitute the Animas-La Plata Project. 
                        Construction of any other project features 
                        authorized by the Colorado River Basin Project 
                        Act (Public Law 90-537; 82 Stat. 885) shall not 
                        be commenced without further authorization from 
                        Congress.
                          ``(ii) Contingency in application.--If the 
                        facilities described in subparagraph (A) are 
                        not constructed and operated, clause (i) shall 
                        not take effect.
          ``(2) Tribal construction costs.--Construction costs 
        allocable to the facilities that are required to deliver the 
        municipal and industrial water allocations described in 
        subclauses (I), (II) and (III) of paragraph (1)(A)(ii) shall be 
        nonreimbursable to the United States.
          ``(3) Nontribal water capital obligations.--
                  ``(A) In general.--Under the provisions of section 9 
                of the Act of August 4, 1939 (43 U.S.C. 485h), the 
                nontribal municipal and industrial water capital 
                repayment obligations for the facilities described in 
                paragraph (1)(A)(i) may be initially satisfied upon the 
                payment in full of the nontribal water capital 
                obligations prior to the initiation of construction. 
                The amount of the obligations described in the 
                preceding sentence shall be determined by agreement 
                between the Secretary of the Interior and the entity 
                responsible for such repayment as to the appropriate 
                reimbursable share of the construction costs allocated 
                to that entity's municipal water supply. Such agreement 
                shall take into account the fact that the construction 
                of facilities to provide irrigation water supplies from 
                the Animas-La Plata Project is not authorized under 
                paragraph (1)(A)(i) and no costs associated with the 
                design or development of such facilities, including 
                costs associated with environmental compliance, shall 
                be allocable to the municipal and industrial users of 
                the facilities authorized under such paragraph.
                  ``(B) Nontribal repayment obligation subject to final 
                cost allocation.--The nontribal repayment obligation 
                for the water supply identified in paragraph (1)(A)(ii) 
                shall be subject to a final cost allocation by the 
                Secretary upon project completion. In the event that 
                the final cost allocation indicates that additional 
                repayment is warranted based on the applicable entity's 
                share of project water supply and determination of 
                overall cost, that entity may elect to enter into a new 
                agreement to make the additional payment necessary to 
                secure the original water supply identified in 
                paragraph (1)(A)(ii). If the repayment entity elects 
                not to enter into a new agreement, the portion of the 
                water supply relinquished by such election should be 
                available to the Secretary for allocation to other 
                project purposes. Additional repayment shall only be 
                warranted for reasonable and unforeseen costs 
                associated with project construction as determined by 
                the Secretary in consultation with the relevant 
                repayment entities.
                  ``(C) Report.--Not later than April 1, 2001, the 
                Secretary shall report to Congress on the status of the 
                cost-share agreements contemplated in subparagraph (A). 
                In the event that no agreement is reached with either 
                the Animas-La Plata Conservancy District or the State 
                of Colorado for the water allocations set forth in 
                subclauses (V) and (VI) of paragraph (1)(A)(ii), those 
                allocations shall be reallocated equally to the 
                Colorado Ute Tribes.
          ``(4) Tribal water allocations.--
                  ``(A) In general.--With respect to municipal and 
                industrial water allocated to a Tribe from the Animas-
                La Plata Project or the Dolores Project, until that 
                water is first used by a Tribe or used pursuant to a 
                water use contract with the Tribe, the Secretary shall 
                pay the annual operation, maintenance, and replacement 
                costs allocable to that municipal and industrial water 
                allocation of the Tribe.
                  ``(B) Treatment of costs.--A Tribe shall not be 
                required to reimburse the Secretary for the payment of 
                any cost referred to in subparagraph (A).
          ``(5) Repayment of pro rata share.--Upon a Tribe's first use 
        of an increment of a municipal and industrial water allocation 
        described in paragraph (4), or the Tribe's first use of such 
        water pursuant to the terms of a water use contract--
                  ``(A) repayment of that increment's pro rata share of 
                those allocable construction costs for the Dolores 
                Project shall be made by the Tribe; and
                  ``(B) the Tribe shall bear a pro rata share of the 
                allocable annual operation, maintenance, and 
                replacement costs of the increment as referred to in 
                paragraph (4).''.

SEC. 3. MISCELLANEOUS.

  The Colorado Ute Indian Water Rights Settlement Act of 1988 (Public 
Law 100-585; 102 Stat. 2973) is amended by adding at the end the 
following:

``SEC. 15. NEW MEXICO AND NAVAJO NATION WATER MATTERS.

  ``(a) Assignment of Water Permit.--Upon the request of the State 
Engineer of the State of New Mexico, the Secretary shall, in a manner 
consistent with applicable law, assign, without consideration, to the 
New Mexico Animas-La Plata Project beneficiaries or to the New Mexico 
Interstate Stream Commission in accordance with the request such 
portion of the Department of the Interior's interest in New Mexico 
Engineer Permit Number 2883, dated May 1, 1956, in order to fulfill the 
New Mexico purposes of the Animas-La Plata Project, so long as the 
permit assignment does not affect the application of the Endangered 
Species Act of 1973 (16 U.S.C. 1531 et seq.) to the use of the water 
involved.
  ``(b) Navajo Nation Municipal Pipeline.--The Secretary may construct 
a water line to augment the existing system that conveys the municipal 
water supplies, in an amount not less than 4,680 acre-feet per year, of 
the Navajo Nation to the Navajo Indian Reservation at Shiprock, New 
Mexico. The Secretary shall comply with all applicable environmental 
laws with respect to such water line. Construction costs allocated to 
the Navajo Nation for such water line shall be nonreimbursable to the 
United States.
  ``(c) Protection of Navajo Water Claims.--Nothing in this Act shall 
be construed to quantify or otherwise adversely affect the water rights 
and the claims of entitlement to water of the Navajo Nation.

``SEC. 16. TRIBAL RESOURCE FUNDS.

  ``(a) Establishment.--
          ``(1) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this section, $8,000,000 per 
        year for 5 fiscal years beginning in fiscal year 2002. Not 
        later than 60 days after amounts are appropriated and available 
        to the Secretary for a fiscal year under this paragraph, the 
        Secretary shall make a payment to each of the Tribal Resource 
        Funds established under paragraph (2). Each such payment shall 
        be equal to 50 percent of the amount appropriated for the 
        fiscal year involved.
          ``(2) Funds.--The Secretary shall establish a--
                  ``(A) Southern Ute Tribal Resource Fund; and
                  ``(B) Ute Mountain Ute Tribal Resource Fund.
        A separate account shall be maintained for each such Fund.
  ``(b) Tribal Development.--
          ``(1) Investment.--The Secretary shall, in the absence of an 
        approved tribal investment plan provided for under paragraph 
        (2), invest the amount in each Tribal Resource Fund in 
        accordance with the Act entitled, `An Act to authorize the 
        deposit and investment of Indian funds' approved June 24, 1938 
        (25 U.S.C. 162a). The Secretary, subject to subsection (e), 
        shall disburse, at the request of a Tribe, the principal and 
        income in its Resource Fund, or any part thereof, in accordance 
        with a resource acquisition and enhancement plan approved under 
        paragraph (3).
          ``(2) Investment plan.--
                  ``(A) In general.--In lieu of the investment provided 
                for in paragraph (1), a Tribe may submit a tribal 
                investment plan applicable to all or part of the 
                Tribe's Tribal Resource Fund.
                  ``(B) Approval.--Not later than 60 days after the 
                date on which an investment plan is submitted under 
                subparagraph (A), the Secretary shall approve such 
                investment plan if the Secretary finds that the plan is 
                reasonable and sound. If the Secretary does not approve 
                such investment plan, the Secretary shall set forth in 
                writing and with particularity the reasons for such 
                disapproval. If such investment plan is approved by the 
                Secretary subject to subsection (e), the Tribal 
                Resource Fund involved shall be disbursed to the Tribe 
                to be invested by the Tribe in accordance with the 
                approved investment plan.
                  ``(C) Compliance.--The Secretary may take such steps 
                as the Secretary determines to be necessary to monitor 
                the compliance of a Tribe with an investment plan 
                approved under subparagraph (B). The United States 
                shall not be responsible for the review, approval, or 
                audit of any individual investment under the plan. The 
                United States shall not be directly or indirectly 
                liable with respect to any such investment, including 
                any act or omission of the Tribe in managing or 
                investing such funds.
                  ``(D) Economic development plan.--The principal and 
                income derived from tribal investments under an 
                investment plan approved under subparagraph (B) shall 
                be subject to the provisions of this section and shall 
                be expended only in accordance with an economic 
                development plan approved under paragraph (3).
          ``(3) Economic development plan.--
                  ``(A) In general.--Each Tribe shall submit to the 
                Secretary a resource acquisition and enhancement plan 
                for all or any portion of its Tribal Resource Fund.
                  ``(B) Approval.--Not later than 60 days after the 
                date on which a plan is submitted under subparagraph 
                (A), the Secretary shall approve such investment plan 
                if the Secretary finds that the plan is reasonably 
                related to the protection, acquisition, enhancement, or 
                development of natural resources for the benefit of the 
                Tribe and its members. If the Secretary does not 
                approve such plan, the Secretary shall, at the time of 
                such determination, set forth in writing and with 
                particularity the reasons for such disapproval.
                  ``(C) Modification.--Subject to the approval of the 
                Secretary, each Tribe may modify a plan approved under 
                subparagraph (B).
                  ``(D) Liability.--The United States shall not be 
                directly or indirectly liable for any claim or cause of 
                action arising from the approval of a plan under this 
                paragraph, or from the use and expenditure by the Tribe 
                of the principal or interest of the Funds.
  ``(c) Limitation on Per Capita Distributions.--No part of the 
principal contained in the Tribal Resource Fund, or of the income 
accruing to such funds, or the revenue from any water use contract, 
shall be distributed to any member of either Tribe on a per capita 
basis.
  ``(d) Limitation on Setting Aside Final Consent Decree.--Neither the 
Tribes nor the United States shall have the right to set aside the 
final consent decree solely because the requirements of subsection (b) 
are not complied with or implemented.
  ``(e) Limitation on Disbursement of Tribal Resource Funds.--Any 
moneys appropriated under this section shall be placed into the 
Southern Ute Tribal Resource Fund and the Ute Mountain Ute Tribal 
Resource Fund in the Treasury of the United States but shall not be 
available for disbursement under this section until the final 
settlement of the tribal claims as provided in section 18. The 
Secretary of the Interior may, in the Secretary's sole discretion, 
authorize the disbursement of funds prior to the final settlement in 
the event that the Secretary determines that substantial portions of 
the settlement have been completed. In the event that the funds are not 
disbursed under the terms of this section by December 31, 2012, such 
funds shall be deposited in the general fund of the Treasury.

``SEC. 17. COLORADO UTE SETTLEMENT FUND.

  ``(a) Establishment of Fund.--There is hereby established within the 
Treasury of the United States a fund to be known as the `Colorado Ute 
Settlement Fund'.
  ``(b) Authorization of Appropriations.--There is authorized to be 
appropriated to the Colorado Ute Settlement Fund such funds as are 
necessary to complete the construction of the facilities described in 
section 6(a)(1)(A) within 7 years of the date of enactment of this 
section. Such funds are authorized to be appropriated for each of the 
first 5 fiscal years beginning with the first full fiscal year 
following the date of enactment of this section.

``SEC. 18. FINAL SETTLEMENT.

  ``(a) In General.--The construction of the facilities described in 
section 6(a)(1)(A), the allocation of the water supply from those 
facilities to the Tribes as described in that section, the provision of 
funds to the Tribes in accordance with section 16, and the issuance of 
an amended final consent decree as contemplated in subsection (c) shall 
constitute final settlement of the tribal claims to water rights on the 
Animas and La Plata Rivers in the State of Colorado.
  ``(b) Statutory Construction.--Nothing in this section shall be 
construed to affect the right of the Tribes to water rights on the 
streams and rivers described in the Agreement, other than the Animas 
and La Plata Rivers, to receive the amounts of water dedicated to 
tribal use under the Agreement, or to acquire water rights under the 
laws of the State of Colorado.
  ``(c) Action by the Attorney General.--The Attorney General shall 
file with the District Court, Water Division Number 7, of the State of 
Colorado, such instruments as may be necessary to request the court to 
amend the final consent decree to provide for the amendments made to 
this Act under the Colorado Ute Settlement Act Amendments of 2000. The 
amended final consent decree shall specify terms and conditions to 
provide for an extension of the current January 1, 2005, deadline for 
the tribes to commence litigation of their reserved rights claims on 
the Animas and La Plata Rivers.

``SEC. 19. STATUTORY CONSTRUCTION; TREATMENT OF CERTAIN FUNDS.

  ``(a) In General.--Nothing in the amendments made by the Colorado Ute 
Settlement Act Amendments of 2000 shall be construed to affect the 
applicability of any provision of this Act other than those provisions 
amended.
  ``(b) Treatment of Uncommitted Portion of Cost-Sharing Obligation.--
The uncommitted portion of the cost-sharing obligation of the State of 
Colorado referred to in section 6(a)(3) shall be made available, upon 
the request of the State of Colorado, to the State of Colorado after 
the date on which payment is made of the amount specified in that 
section.''.

                          Purpose of the Bill

    The purpose of H.R. 3112 is to amend the Colorado Ute 
Indian Water Rights Settlement Act to provide for a final 
settlement of the claims of the Colorado Ute Indian Tribes, and 
for other purposes.

                  Background and Need for Legislation

    The Animas La Plata (ALP) Project was originally authorized 
by the Colorado River Basin Project Act of 1968 to be located 
in La Plata County in southwestern Colorado and in San Juan 
County in northwestern New Mexico. The ALP Project was designed 
to provide irrigation, municipal and industrial water supplies 
to the Colorado Ute Tribes and other project beneficiaries. In 
1976, the United States filed suit to quantify tribal water 
rights within the rivers and streams in southwestern Colorado 
for the Southern Ute and Ute Mountain Ute Indian Tribes of 
Colorado (collectively the ``Ute tribes''). The priority date 
for the tribal water corresponded to the date the reservation 
was established in 1868.
    The 1986 settlement made use of the water supply to be 
developed by the ALP and Delores Projects to satisfy the Ute 
tribes' reserved water rights claims. In 1988, Congress passed 
a settlement act for the Ute tribes, the Colorado Ute Water 
Rights Settlement Act of 1988 (Public Law 100-585; 102 Stat. 
2973).
    The Bureau of Reclamation's 1996 Final Environmental 
Statement documents for the ALP Project generated significant 
controversy among project participants and led to the ``Romer-
Schoettler process''. That review, headed by then-Colorado 
Governor Roy Romer and Lt. Governor Gail Schoettler, convened 
both supporters and opponents of the ALP Project in an attempt 
to address unresolved issues and gain consensus on an 
alternative to the original project, which would satisfy the 
Indian water rights confirmed by the 1988 settlement act.
    As a result of the Romer-Schoettler process, new structural 
and non-structural alternatives evolved in August 1997. The 
structural alternative, called the Animas-La Plata 
Reconciliation Plan, included a scaled-down version of the 
proposed reservoir at Ridges Basin that would store water from 
the Animas River. The non-structural alternative, referred to 
as the Animas River Citizen's Coalition Conceptual Alternative, 
focused on providing tribes funds to purchase water from 
existing projects, and/or the acquisition of existing direct 
flow water rights, as well as the use and/or modification of 
existing federal facilities.
    Two years ago, the Water and Power Subcommittee of the 
Committee on Resources held a hearing to address issues raised 
by the Romer-Schoettler process regarding what direction to 
take with the ALP Project, and to hear testimony from project 
proponents, opponents, and the Administration. During the 
hearing, then Counselor to the Secretary of the Interior David 
Hayes indicated the desire of the Administration to address 
additional issues. On August 11, 1998, the Secretary of the 
Interior presented an Administration proposal to implement the 
1988 Settlement Act. H.R. 3112 is an attempt by project 
beneficiaries to implement these negotiations and come to a 
final resolution of the Ute tribes' water rights.
    Under the terms of the 1986 Settlement Agreement, the 
federal government must construct facilities to deliver water 
to the Ute tribes by 2000. If that does not occur, the Ute 
tribes may return to court by January 1, 2005, to assert their 
reserved water rights claims.
    In contrast with the 1986 Settlement, under H.R. 3112 the 
Ute tribes agree to forgo asserting their reserved water rights 
claims if the substitute benefits provided under the bill are 
adopted (i.e. $40 million trust fund and making the Indian 
municipal and industrial portion of the project 
nonreimbursable).

                            Committee Action

    H.R. 3112 was introduced on October 20, 1999, by 
Congressman Scott McInnis (R-CO). The bill was referred to the 
Committee on Resources, and subsequently to the Subcommittee on 
Water and Power. On May 11, 2000, the Subcommittee held a 
hearing on the bill. On July 19, 2000, the Resources Committee 
met to consider the bill. The Subcommittee on Water and Power 
was discharged from further consideration of the bill by 
unanimous consent. Congressman John T. Doolittle (R-CA) offered 
an amendment in the nature of a substitute which clarified the 
nature of the substitute benefits to the Indian tribes, 
clarified that environmental compliance will be completed for 
all features of the project, clarified the non-Indian municipal 
and industrial portion of the project would be prepaid by the 
sponsors. Congressman Peter DeFazio (D-OR) offered an amendment 
to the Doolittle amendment regarding the deauthorization of the 
remainder of the project. The amendment failed by voice vote. 
Congressman Tom Udall (D-NM) offered an amendment regarding 
judicial review. The amendment failed on a voice vote. The 
Doolittle amendment was then adopted by voice vote. The bill, 
as amended, was then ordered favorably reported to the House of 
Representatives by voice vote.

                      Section-by-Section Analysis

Section 1. Short title; findings; definitions

    This section cites the short title as ``Colorado Ute 
Settlement Act Amendments of 2000''. The section also states 
that the substitute benefits provided to the Ute tribes under 
this bill result in a settlement that provides the Ute tribes 
with benefits that are equivalent to those that the tribes 
would have received under the Colorado Ute Indian Water Rights 
Settlement Act of 1988 (Public Law 100-585).

Section 2. Amendments to section 6 of the Colorado Ute Indian Water 
        Rights Settlement Act of 1988

    This section amends the Colorado Ute Indian Water Rights 
Settlement Act to authorize the Secretary of the Interior, 
acting through the Bureau of Reclamation, to complete the 
construction of, and operate and maintain, a reservoir, a 
pumping plant, a reservoir inlet conduit, and appurtenant 
facilities to divert and store an average annual depletion of 
57,000 acre-feet of water from the Animas River to provide 
municipal and industrial water supply, and deliver through the 
use of such components specified municipal and industrial water 
allocations to the San Juan Water Commission, Animas LaPlata 
Conservancy District, State of Colorado, La Plata Conservancy 
District of New Mexico, Southern Ute and Ute Mountain Ute 
tribes, and the Navaho Nation.
    The section provides that construction costs required to 
deliver each Tribe's water allocation shall be nonreimbursable.
    The Secretary under this section, and in the bill, may not 
seek repayment of costs if those costs have been specifically 
determined by Congress to be non-reimbursable and non-
recoverable.

Section 3. Miscellaneous

    This section adds several new sections to the Colorado Ute 
Indian Water Rights Settlement Act. The new section 15 requires 
the Secretary, upon request of the State Engineer of New 
Mexico, to assign to the New Mexico project beneficiaries or 
the New Mexico Interstate Stream Commission any portion of the 
Secretary of the Interior's interests under a specified permit 
to fulfill the New Mexico purposes of the project, provided 
that the assignment shall not affect the application of the 
Endangered Species Act of 1973 to the use of water.
    The section also authorizes the Secretary to construct a 
water line to augment the existing system that conveys 
municipal water supplies to the Navajo Indian Reservation at 
Shiprock, New Mexico. The section makes construction costs for 
the water line nonreimbursable.
    New section 16 authorizes appropriations to the Southern 
Ute and Ute Mountain Ute Tribal Resource Funds, and provides 
for disbursement of Fund monies in accordance with approved 
natural resource acquisition and enhancement plans.
    New section 17 establishes the Colorado Ute Settlement Fund 
in the Treasury and authorizes appropriations to the Fund to 
complete the construction of project facilities.
    New section 18 requires the construction of facilities, 
allocation of water supply to the Indian tribes, and provision 
of funds under this bill to constitute final settlement of 
tribal claims to water rights on the Animas and La Plata 
Rivers. New section 19 provides a rule of statutory 
construction and specifies the treatment of certain funds.

            Committee Oversight Findings and Recommendations

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Resources' oversight findings and recommendations 
are reflected in the body of this report.

                   Constitutional Authority Statement

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact this bill.

                    Compliance With House Rule XIII

    1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. The Committee believes that 
enactment of this bill would have little impact on the federal 
budget.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, credit 
authority, or an increase or decrease in tax expenditures.
    3. Government Reform Oversight Findings. Under clause 
3(c)(4) of rule XIII of the Rules of the House of 
Representatives, the Committee has received no report of 
oversight findings and recommendations from the Committee on 
Government Reform on this bill.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has requested but not received a cost 
estimate for this bill from the Director of the Congressional 
Budget Office.

                    Compliance With Public Law 104-4

    This bill contains no unfunded mandates.

                Preemption of State, Local or Tribal Law

    This bill is not intended to preempt any State, local or 
tribal law.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

       COLORADO UTE INDIAN WATER RIGHTS SETTLEMENT ACT OF 1988

           *       *       *       *       *       *       *

SEC. 6. REPAYMENT OF PROJECT COSTS.

    [(a) Municipal and Industrial Water.--(1) The Secretary 
shall defer, without interest, the repayment of the 
construction costs allocable to each Tribe's municipal and 
industrial water allocation from the Animas-La Plata and 
Dolores Projects until water is first used either by the Tribe 
or pursuant to a water use contract with the Tribe. Until such 
water is first used either by a Tribe or pursuant to a water 
use contract with the Tribe, the Secretary shall bear the 
annual operation, maintenance, and replacement costs allocable 
to the Tribe's municipal and industrial water allocation from 
the Animas-La Plata and Dolores Projects, which costs shall not 
be reimbursable by the Tribe.
    [(2) As an increment of such water is first used by a Tribe 
or is first used pursuant to the terms of a water use contract 
with the Tribe, repayment of that increment's pro rata share of 
such allocable construction costs shall commence by the Tribe 
and the Tribe shall commence bearing that increment's pro rata 
share of the allocable annual operation, maintenance, and 
replacement costs.]
  (a) Reservoir; Municipal and Industrial Water.--
          (1) Facilities.--
                  (A) In general.--After the date of enactment 
                of this subsection, but prior to January 1, 
                2005, the Secretary, in order to settle the 
                outstanding claims of the Tribes on the Animas 
                and La Plata Rivers, acting through the Bureau 
                of Reclamation, is specifically authorized to--
                          (i) complete construction of, and 
                        operate and maintain, a reservoir, a 
                        pumping plant, a reservoir inlet 
                        conduit, and appurtenant facilities 
                        with sufficient capacity to divert and 
                        store water from the Animas River to 
                        provide for an average annual depletion 
                        of 57,100 acre-feet of water to be used 
                        for a municipal and industrial water 
                        supply, which facilities shall--
                                  (I) be designed and operated 
                                in accordance with the 
                                hydrologic regime necessary for 
                                the recovery of the endangered 
                                fish of the San Juan River as 
                                determined by the San Juan 
                                River Recovery Implementation 
                                Program;
                                  (II) include an inactive pool 
                                of an appropriate size to be 
                                determined by the Secretary 
                                following the completion of 
                                required environmental 
                                compliance activities; and
                                  (III) include those 
                                recreation facilities 
                                determined to be appropriate by 
                                agreement between the State of 
                                Colorado and the Secretary that 
                                shall address the payment of 
                                any of the costs of such 
                                facilities by the State of 
                                Colorado in addition to the 
                                costs described in paragraph 
                                (3); and
                          (ii) deliver, through the use of the 
                        project components referred to in 
                        clause (i), municipal and industrial 
                        water allocations--
                                  (I) with an average annual 
                                depletion not to exceed 16,525 
                                acre-feet of water, to the 
                                Southern Ute Indian Tribe for 
                                its present and future needs;
                                  (II) with an average annual 
                                depletion not to exceed 16,525 
                                acre-feet of water, to the Ute 
                                Mountain Ute Indian Tribe for 
                                its present and future needs;
                                  (III) with an average annual 
                                depletion not to exceed 2,340 
                                acre-feet of water, to the 
                                Navajo Nation for its present 
                                and future needs;
                                  (IV) with an average annual 
                                depletion not to exceed 10,400 
                                acre-feet of water, to the San 
                                Juan Water Commission for its 
                                present and future needs;
                                  (V) with an average annual 
                                depletion of an amount not to 
                                exceed 2,600 acre-feet of 
                                water, to the Animas-La Plata 
                                Conservancy District for its 
                                present and future needs;
                                  (VI) with an average annual 
                                depletion of an amount not to 
                                exceed 5,230 acre-feet of 
                                water, to the State of Colorado 
                                for its present and future 
                                needs; and
                                  (VII) with an average annual 
                                depletion of an amount not to 
                                exceed 780 acre-feet of water, 
                                to the La Plata Conservancy 
                                District of New Mexico for its 
                                present and future needs.
                  (B) Applicability of other federal law.--The 
                responsibilities of the Secretary described in 
                subparagraph (A) are subject to the 
                requirements of Federal laws related to the 
                protection of the environment and otherwise 
                applicable to the construction of the proposed 
                facilities, including the National 
                Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.), the Clean Water Act (42 U.S.C. 
                7401 et seq.), and the Endangered Species Act 
                of 1973 (16 U.S.C. 1531 et seq.). Nothing in 
                this Act shall be construed to predetermine or 
                otherwise affect the outcome of any analysis 
                conducted by the Secretary or any other Federal 
                official under applicable laws.
                  (C) Limitation.--
                          (i) In general.--If constructed, the 
                        facilities described in subparagraph 
                        (A) constitute the Animas-La Plata 
                        Project. Construction of any other 
                        project features authorized by the 
                        Colorado River Basin Project Act 
                        (Public Law 90-537; 82 Stat. 885) shall 
                        not be commenced without further 
                        authorization from Congress.
                          (ii) Contingency in application.--If 
                        the facilities described in 
                        subparagraph (A) are not constructed 
                        and operated, clause (i) shall not take 
                        effect.
          (2) Tribal construction costs.--Construction costs 
        allocable to the facilities that are required to 
        deliver the municipal and industrial water allocations 
        described in subclauses (I), (II) and (III) of 
        paragraph (1)(A)(ii) shall be nonreimbursable to the 
        United States.
          (3) Nontribal water capital obligations.--
                  (A) In general.--Under the provisions of 
                section 9 of the Act of August 4, 1939 (43 
                U.S.C. 485h), the nontribal municipal and 
                industrial water capital repayment obligations 
                for the facilities described in paragraph 
                (1)(A)(i) may be initially satisfied upon the 
                payment in full of the nontribal water capital 
                obligations prior to the initiation of 
                construction. The amount of the obligations 
                described in the preceding sentence shall be 
                determined by agreement between the Secretary 
                of the Interior and the entity responsible for 
                such repayment as to the appropriate 
                reimbursable share of the construction costs 
                allocated to that entity's municipal water 
                supply. Such agreement shall take into account 
                the fact that the construction of facilities to 
                provide irrigation water supplies from the 
                Animas-La Plata Project is not authorized under 
                paragraph (1)(A)(i) and no costs associated 
                with the design or development of such 
                facilities, including costs associated with 
                environmental compliance, shall be allocable to 
                the municipal and industrial users of the 
                facilities authorized under such paragraph.
                  (B) Nontribal repayment obligation subject to 
                final cost allocation.--The nontribal repayment 
                obligation for the water supply identified in 
                paragraph (1)(A)(ii) shall be subject to a 
                final cost allocation by the Secretary upon 
                project completion. In the event that the final 
                cost allocation indicates that additional 
                repayment is warranted based on the applicable 
                entity's share of project water supply and 
                determination of overall cost, that entity may 
                elect to enter into a new agreement to make the 
                additional payment necessary to secure the 
                original water supply identified in paragraph 
                (1)(A)(ii). If the repayment entity elects not 
                to enter into a new agreement, the portion of 
                the water supply relinquished by such election 
                should be available to the Secretary for 
                allocation to other project purposes. 
                Additional repayment shall only be warranted 
                for reasonable and unforeseen costs associated 
                with project construction as determined by the 
                Secretary in consultation with the relevant 
                repayment entities.
                  (C) Report.--Not later than April 1, 2001, 
                the Secretary shall report to Congress on the 
                status of the cost-share agreements 
                contemplated in subparagraph (A). In the event 
                that no agreement is reached with either the 
                Animas-La Plata Conservancy District or the 
                State of Colorado for the water allocations set 
                forth in subclauses (V) and (VI) of paragraph 
                (1)(A)(ii), those allocations shall be 
                reallocated equally to the Colorado Ute Tribes.
          (4) Tribal water allocations.--
                  (A) In general.--With respect to municipal 
                and industrial water allocated to a Tribe from 
                the Animas-La Plata Project or the Dolores 
                Project, until that water is first used by a 
                Tribe or used pursuant to a water use contract 
                with the Tribe, the Secretary shall pay the 
                annual operation, maintenance, and replacement 
                costs allocable to that municipal and 
                industrial water allocation of the Tribe.
                  (B) Treatment of costs.--A Tribe shall not be 
                required to reimburse the Secretary for the 
                payment of any cost referred to in subparagraph 
                (A).
          (5) Repayment of pro rata share.--Upon a Tribe's 
        first use of an increment of a municipal and industrial 
        water allocation described in paragraph (4), or the 
        Tribe's first use of such water pursuant to the terms 
        of a water use contract--
                  (A) repayment of that increment's pro rata 
                share of those allocable construction costs for 
                the Dolores Project shall be made by the Tribe; 
                and
                  (B) the Tribe shall bear a pro rata share of 
                the allocable annual operation, maintenance, 
                and replacement costs of the increment as 
                referred to in paragraph (4).

           *       *       *       *       *       *       *

SEC. 15. NEW MEXICO AND NAVAJO NATION WATER MATTERS.

  (a) Assignment of Water Permit.--Upon the request of the 
State Engineer of the State of New Mexico, the Secretary shall, 
in a manner consistent with applicable law, assign, without 
consideration, to the New Mexico Animas-La Plata Project 
beneficiaries or to the New Mexico Interstate Stream Commission 
in accordance with the request such portion of the Department 
of the Interior's interest in New Mexico Engineer Permit Number 
2883, dated May 1, 1956, in order to fulfill the New Mexico 
purposes of the Animas-La Plata Project, so long as the permit 
assignment does not affect the application of the Endangered 
Species Act of 1973 (16 U.S.C. 1531 et seq.) to the use of the 
water involved.
  (b) Navajo Nation Municipal Pipeline.--The Secretary may 
construct a water line to augment the existing system that 
conveys the municipal water supplies, in an amount not less 
than 4,680 acre-feet per year, of the Navajo Nation to the 
Navajo Indian Reservation at Shiprock, New Mexico. The 
Secretary shall comply with all applicable environmental laws 
with respect to such water line. Construction costs allocated 
to the Navajo Nation for such water line shall be 
nonreimbursable to the United States.
  (c) Protection of Navajo Water Claims.--Nothing in this Act 
shall be construed to quantify or otherwise adversely affect 
the water rights and the claims of entitlement to water of the 
Navajo Nation.

SEC. 16. TRIBAL RESOURCE FUNDS.

  (a) Establishment.--
          (1) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this 
        section, $8,000,000 per year for 5 fiscal years 
        beginning in fiscal year 2002. Not later than 60 days 
        after amounts are appropriated and available to the 
        Secretary for a fiscal year under this paragraph, the 
        Secretary shall make a payment to each of the Tribal 
        Resource Funds established under paragraph (2). Each 
        such payment shall be equal to 50 percent of the amount 
        appropriated for the fiscal year involved.
          (2) Funds.--The Secretary shall establish a--
                  (A) Southern Ute Tribal Resource Fund; and
                  (B) Ute Mountain Ute Tribal Resource Fund.
        A separate account shall be maintained for each such 
        Fund.
  (b) Tribal Development.--
          (1) Investment.--The Secretary shall, in the absence 
        of an approved tribal investment plan provided for 
        under paragraph (2), invest the amount in each Tribal 
        Resource Fund in accordance with the Act entitled, ``An 
        Act to authorize the deposit and investment of Indian 
        funds'' approved June 24, 1938 (25 U.S.C. 162a). The 
        Secretary, subject to subsection (e), shall disburse, 
        at the request of a Tribe, the principal and income in 
        its Resource Fund, or any part thereof, in accordance 
        with a resource acquisition and enhancement plan 
        approved under paragraph (3).
          (2) Investment plan.--
                  (A) In general.--In lieu of the investment 
                provided for in paragraph (1), a Tribe may 
                submit a tribal investment plan applicable to 
                all or part of the Tribe's Tribal Resource 
                Fund.
                  (B) Approval.--Not later than 60 days after 
                the date on which an investment plan is 
                submitted under subparagraph (A), the Secretary 
                shall approve such investment plan if the 
                Secretary finds that the plan is reasonable and 
                sound. If the Secretary does not approve such 
                investment plan, the Secretary shall set forth 
                in writing and with particularity the reasons 
                for such disapproval. If such investment plan 
                is approved by the Secretary subject to 
                subsection (e), the Tribal Resource Fund 
                involved shall be disbursed to the Tribe to be 
                invested by the Tribe in accordance with the 
                approved investment plan.
                  (C) Compliance.--The Secretary may take such 
                steps as the Secretary determines to be 
                necessary to monitor the compliance of a Tribe 
                with an investment plan approved under 
                subparagraph (B). The United States shall not 
                be responsible for the review, approval, or 
                audit of any individual investment under the 
                plan. The United States shall not be directly 
                or indirectly liable with respect to any such 
                investment, including any act or omission of 
                the Tribe in managing or investing such funds.
                  (D) Economic development plan.--The principal 
                and income derived from tribal investments 
                under an investment plan approved under 
                subparagraph (B) shall be subject to the 
                provisions of this section and shall be 
                expended only in accordance with an economic 
                development plan approved under paragraph (3).
          (3) Economic development plan.--
                  (A) In general.--Each Tribe shall submit to 
                the Secretary a resource acquisition and 
                enhancement plan for all or any portion of its 
                Tribal Resource Fund.
                  (B) Approval.--Not later than 60 days after 
                the date on which a plan is submitted under 
                subparagraph (A), the Secretary shall approve 
                such investment plan if the Secretary finds 
                that the plan is reasonably related to the 
                protection, acquisition, enhancement, or 
                development of natural resources for the 
                benefit of the Tribe and its members. If the 
                Secretary does not approve such plan, the 
                Secretary shall, at the time of such 
                determination, set forth in writing and with 
                particularity the reasons for such disapproval.
                  (C) Modification.--Subject to the approval of 
                the Secretary, each Tribe may modify a plan 
                approved under subparagraph (B).
                  (D) Liability.--The United States shall not 
                be directly or indirectly liable for any claim 
                or cause of action arising from the approval of 
                a plan under this paragraph, or from the use 
                and expenditure by the Tribe of the principal 
                or interest of the Funds.
  (c) Limitation on Per Capita Distributions.--No part of the 
principal contained in the Tribal Resource Fund, or of the 
income accruing to such funds, or the revenue from any water 
use contract, shall be distributed to any member of either 
Tribe on a per capita basis.
  (d) Limitation on Setting Aside Final Consent Decree.--
Neither the Tribes nor the United States shall have the right 
to set aside the final consent decree solely because the 
requirements of subsection (b) are not complied with or 
implemented.
  (e) Limitation on Disbursement of Tribal Resource Funds.--Any 
moneys appropriated under this section shall be placed into the 
Southern Ute Tribal Resource Fund and the Ute Mountain Ute 
Tribal Resource Fund in the Treasury of the United States but 
shall not be available for disbursement under this section 
until the final settlement of the tribal claims as provided in 
section 18. The Secretary of the Interior may, in the 
Secretary's sole discretion, authorize the disbursement of 
funds prior to the final settlement in the event that the 
Secretary determines that substantial portions of the 
settlement have been completed. In the event that the funds are 
not disbursed under the terms of this section by December 31, 
2012, such funds shall be deposited in the general fund of the 
Treasury.

SEC. 17. COLORADO UTE SETTLEMENT FUND.

  (a) Establishment of Fund.--There is hereby established 
within the Treasury of the United States a fund to be known as 
the ``Colorado Ute Settlement Fund''.
  (b) Authorization of Appropriations.--There is authorized to 
be appropriated to the Colorado Ute Settlement Fund such funds 
as are necessary to complete the construction of the facilities 
described in section 6(a)(1)(A) within 7 years of the date of 
enactment of this section. Such funds are authorized to be 
appropriated for each of the first 5 fiscal years beginning 
with the first full fiscal year following the date of enactment 
of this section.

SEC. 18. FINAL SETTLEMENT.

  (a) In General.--The construction of the facilities described 
in section 6(a)(1)(A), the allocation of the water supply from 
those facilities to the Tribes as described in that section, 
the provision of funds to the Tribes in accordance with section 
16, and the issuance of an amended final consent decree as 
contemplated in subsection (c) shall constitute final 
settlement of the tribal claims to water rights on the Animas 
and La Plata Rivers in the State of Colorado.
  (b) Statutory Construction.--Nothing in this section shall be 
construed to affect the right of the Tribes to water rights on 
the streams and rivers described in the Agreement, other than 
the Animas and La Plata Rivers, to receive the amounts of water 
dedicated to tribal use under the Agreement, or to acquire 
water rights under the laws of the State of Colorado.
  (c) Action by the Attorney General.--The Attorney General 
shall file with the District Court, Water Division Number 7, of 
the State of Colorado, such instruments as may be necessary to 
request the court to amend the final consent decree to provide 
for the amendments made to this Act under the Colorado Ute 
Settlement Act Amendments of 2000. The amended final consent 
decree shall specify terms and conditions to provide for an 
extension of the current January 1, 2005, deadline for the 
tribes to commence litigation of their reserved rights claims 
on the Animas and La Plata Rivers.

SEC. 19. STATUTORY CONSTRUCTION; TREATMENT OF CERTAIN FUNDS.

  (a) In General.--Nothing in the amendments made by the 
Colorado Ute Settlement Act Amendments of 2000 shall be 
construed to affect the applicability of any provision of this 
Act other than those provisions amended.
  (b) Treatment of Uncommitted Portion of Cost-Sharing 
Obligation.--The uncommitted portion of the cost-sharing 
obligation of the State of Colorado referred to in section 
6(a)(3) shall be made available, upon the request of the State 
of Colorado, to the State of Colorado after the date on which 
payment is made of the amount specified in that section.

                                  
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