AMENDED AND RESTATED AGREEMENT IN PRINCIPLE

CONCERNING THE COLORADO UTE INDIAN WATER RIGHTS SETTLEMENT

AND BINDING AGREEMENT FOR ANIMAS-LA PLATA COST SHARING

Introduction

1. On June 30, 1986, the United States, the State of Colorado, the Ute Mountain Ute Tribe, the

Southern Ute Indian Tribe, the Colorado Water Resources and Power Development Authority, the

Animas-La Plata Water Conservancy District, the New Mexico Interstate Stream Commission, the

San Juan Water Commission, and Montezuma County, Colorado, entered into the Agreement in

Principle Concerning the Colorado Ute Indian Water Rights Settlement and Binding Agreement for

Animas-La Plata Cost Sharing (the “1986 Agreement”). The 1986 Agreement set forth the

Agreement in Principle of the United States, State of Colorado, Ute Mountain Ute Tribe, and

Southern Ute Indian Tribe for settlement of the Tribes’ outstanding reserved water right claims in

the State of Colorado. A crucial component of the contemplated water rights settlement was the

provision of water to the Tribes from the Animas-La Plata Project, a participating project of the

Colorado River Storage Project Act, authorized by the Colorado River Basin Project Act, in

satisfaction of the Tribes’ reserved rights claims from the Animas and La Plata Rivers. As an

integral part of the contemplated settlement, the 1986 Agreement also set forth the Binding

Agreement of the United States, State of Colorado, Colorado Water Resources and Power

Development Authority, Animas-La Plata Water Conservancy District, New Mexico Interstate

Stream Commission, San Juan Water Commission, Montezuma County, Colorado, Ute Mountain

Ute Tribe, and Southern Ute Indian Tribes, for cost sharing and financing of the Animas-La Plata

Project.

2. The 1986 Agreement contemplated a final water rights settlement that would provide for:

(1) a consent decree quantifying the Tribes’ reserved rights that would be contingent upon adoption

of specified legislation, including legislation approving the construction of and provision of water

supply to the Tribes from the Animas-La Plata Project; (2) establishment and funding of certain

tribal development funds; and (3) appropriate finality provisions. Pursuant to the 1986 Agreement,

on December 10, 1986, the United States, State of Colorado, Ute Mountain Ute and Southern Ute

Indian Tribes, and participating private and governmental entities within the State of Colorado

entered into the Colorado Ute Indian Water Rights Final Settlement Agreement (the “Final

Settlement Agreement”). The Final Settlement Agreement quantified the entitlements of the Tribes

to reserved water rights in the State of Colorado and provided for administration of those reserved

rights. It called for submission of a stipulation reflecting the terms of the agreement to the District

Court in and for Water Division No. 7 and the entry by that Court of a Consent Decree embodying

the terms of the Final Settlement Agreement, contingent on the adoption of certain legislation

necessary to achieve the terms of the settlement, and the establishment and funding of tribal

development funds as contemplated by the 1986 Agreement.
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3. In 1988, the United States Congress enacted the Colorado Ute Indian Water Rights

Settlement Act of 1988 (Public Law 100-585) (the “Settlement Act”). The Settlement Act authorized

the Secretary of the Interior to supply both irrigation and municipal and industrial water supply to

the Ute Mountain Ute and Southern Ute Indian Tribes from the Animas-La Plata Project in

settlement of water rights claims of the Tribes, and also fulfilled the other requirements of the Final

Settlement Agreement. Tribal Development Funds as required under the 1986 Agreement and the

Final Settlement Agreement were also established and funded. On December 19, 1991, the various

contingencies of the 1986 Agreement and the Final Settlement Agreement having been fulfilled,

Consent Decrees were entered by the District Court in and for Water Division No. 7 adjudicating the

Tribes’ reserved water rights. As provided by the Final Settlement Agreement, however,theConsent

Decrees allow the Tribes to litigate or renegotiate their claims from the Animas and La Plata rivers

if certain facilities of the Animas La Plata Project were not completed by January 1, 2000.

4. In November, 1989, in furtherance of the 1986 Agreement, the United States and the

Colorado Water Resources and Power Development Authority (“Authority”) entered into an

Agreement and Instructions for Administering Escrow Account for the Animas-La Plata Project, and

an Escrow Agreement with the Colorado State Treasurer, (collectively, the “Escrow Agreements”),

and established an Escrow Account for funding the State of Colorado’s cost-sharing obligation for

the Animas-La Plata Project.

5. Construction of the Animas-La Plata Project has not occurred as contemplated by the 1986

Agreement, the Final Settlement Agreement, the Settlement Act, the Consent Decree, or the Escrow

Agreements. In December of 2000, the United States Congress enacted the Colorado Ute Settlement

Act Amendments of 2000 (Public Law 106-554) (the “2000 Amendments”). The 2000 Amendments

authorize the Secretary of the Interior to complete construction of, and to operate and maintain, a

reconfigured Animas-La Plata Project, consisting of facilities 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

municipal and industrial water supply only, for the Ute Mountain Ute and Southern Ute Indian

Tribes and for other tribal and non-tribal entities in the Four Corners Region of the United States.

6. The purpose, therefore, of this Amended and Restated Agreement in Principle Concerning

the Colorado Ute Indian Water Rights Settlement and Binding Agreement for Animas-La Plata Cost

Sharing is to amend and restate the 1986 Agreement to reflect the substantial changes to the AnimasLa Plata Project, and to effectuate changes to the agreements of the parties concerning final

settlement of the Ute Mountain Ute and Southern Ute Indian Tribes’ reserved water rights, and cost

sharing and financing of the Animas-La Plata Project, necessitated by the changes in the Project and

the 2000 Amendments.

Water Rights Settlement.
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The United States, acting through the Secretary of the Interior, the Ute Mountain Ute Tribe,

the Southern Ute Indian Tribe, the State of Colorado, and the Animas-La Plata Water Conservancy

District, agree as follows:

1. Background. Section 18(a) of the Settlement Act, as amended by the 2000 Amendments,

provides that (a) construction of the Animas-La Plata Project, as reconfigured and described in the

2000 Amendments; (b) allocation of water supply to the Tribes as set forth in the 2000 Amendments;

(3) establishment of two Tribal Resource Funds, one each for the Southern Ute and Ute Mountain

Ute Indian Tribes, and deposit of $40,000,000 collectively into those Funds; and (4) issuance of an

amended final decree by the District Court in and for Water Division No. 7 providing for the changes

made by the 2000 Amendments, shall constitute final settlement of the tribal claims of the Tribes

to water of the Animas and La Plata Rivers in the State of Colorado.

2. Construction of Animas-La Plata Project and Allocation of Water Supply. Contingent upon

appropriations by Congress and fulfillment of all environmental commitments as set forth in the

FSEIS and ROD, and pursuant to federal law and policy, the United States, acting through the

Secretary of the Interior, will construct the facilities comprising the Animas-La Plata Project as

reconfigured and described in the 2000 Amendments, and will allocate water supply to the Ute

Mountain Ute and the Southern Ute Indian Tribes as set forth in Section 6(a)(1)(A) of the Settlement

Act, as amended by Section 302 of the 2000 Amendments.

3. Joint Request for Amendment of Consent Decree. No later than April 1, 2002 the United

States, the Ute Mountain Ute Tribe, and the Southern Ute Indian Tribe, the State of Colorado, and

the Animas-La Plata Water Conservancy District, shall, consistent with Section 18(c) of the 2000

Amendments, jointly petition the District Court in and for Water Division No. 7, State of Colorado

for amendments of the Consent Decrees entered in Cases No. W-1603-76F and W-1603-76J: (1)

to reflect the changes to the Animas-La Plata Project and the water rights settlement effected by the

2000 Amendments and (2) to extend the deadline for the Tribes to commence litigation (or

renegotiation) of their reserved rights claims for waters of the Animas and La Plata rivers from the

current deadline of January 1, 2005.

Animas-La Plata Cost Sharing

The United States, acting through the Secretary of the Interior, the State of Colorado, the

Colorado Water Resources and Power Development Authority, the Animas-La Plata Water

Conservancy District, Ute Mountain Ute Tribe, Southern Ute Indian Tribe, New Mexico Interstate

Stream Commission, San Juan Water Commission, and Montezuma County, Colorado, agree as

follows:

1. Background. The Animas-La Plata Project as reconfigured and authorized by the 2000

Amendments (“Project”), will be a significantly different and smaller project than was contemplated
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by the 1986 Agreement, comprising only those facilities necessary for the diversion and storage of

water from the Animas River for municipal and industrial use. The 2000 Amendments authorize

the reconfigured Project to deliver municipal and industrial water allocations to certain non-tribal

entities as follows:

(A) San Juan Water Commission: average annual depletions not to exceed 10,400 acrefeet;

(B) Animas-La Plata Water Conservancy District: average annual depletions not to

exceed 2,600 acre-feet

(C) State of Colorado: average annual depletions not to exceed 5,230 acre-feet;

(D) La Plata Conservancy District, New Mexico: average annual depletions not to exceed

780 acre-feet. 

The 2000 Amendments provide further that the non-Tribal municipal and industrial water

capital repayment obligations for the Project may be satisfied upon the payment in full of the nonTribal water capital obligations prior to the initiation of construction, with the amount of the

repayment obligations determined by agreement between the Secretary of Interior and the entity

responsible for the repayment as to the appropriate reimbursable share. In such case, interest shall

not accrue during construction, and the repaying entity shall not be liable for repayment of any such

interest during construction. In addition, the 2000 Amendments provide that the non-Tribal

repayment obligation is subject to a final cost allocation upon Project completion, and additional

payment, warranted only for reasonable and unforeseen costs associated with Project construction,

may be required in order to secure the full storage or water supply allocated to a non-Tribal entity.

By Agreement between the Animas-La Plata Water Conservancy District and the Colorado

Water Resources and Power Development Authority dated November 5, 2001, the Animas-La Plata

Water Conservancy District has assigned all its right, title and interest in and to the 2,600 acre-foot

average annual municipal and industrial water depletion allocation reserved for the Animas-La Plata

Water Conservancy District by the 2000 Amendments, and the Colorado Water Resources and

Power Development Authority has agreed to finance and acquire that water allocation. By these

presents, the United States, acting through the Secretary of Interior, approves such assignment, and

agrees that by virtue of such assignment, the Colorado Water Resources and Power Development

Authority has succeeded to the rights and obligations of the Animas-La Plata Water Conservancy

District under the 2000 Amendments.

2. Determination of Appropriate Reimbursable Share.
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The table below sets forth the amounts that must be paid by each party prior to initiation of

construction in order to attain the benefits of Section 302(a)(3)(A) of the 2000 Amendments.

Entity Percent of Joint

Costs

Specific Costs Joint Costs Total Costs

Animas-La Plata Water

Conservancy District/Colorado

Water Resources and Power

Develo pment Au thority

3.07% $582,400 $6,674,350 $7,256,750

San Juan Water Commission 3.18% -0- $6,916,722 $6,916,722

La Plata Conservancy District, New

Mexico

1.64% -0- $3,566,970 $3,566,970

State of Colorado 10.99% -0- $23,871,264 $23,871,264

3. Cost Sharing/Repayment for Non-Tribal Entity Allocations.

The parties agree that any payment of the water capital obligation for water or storage

allocated to non-Tribal entities by the 2000 Amendments that a non-Tribal entity elects to purchase

shall be made as determined by separate negotiations between the entity receiving the water and the

United States. Each non-Tribal entity may enter into a separate agreement with the Secretary of the

Interior for repayment or payment in advance of the non-Tribal water capital obligation.

4. Cost Sharing /Repayment of Animas-LaPlataWaterConservancy District Water Allocation.

The United States and the Colorado Water Resources and Power Development Authority

agree that the water capital obligation for the water allocation to the Animas-La Plata Water

Conservancy District shall be paid as set forth in the Funding Agreement and Repayment Contract,

an Amended and Restated Escrow Agreement among the United States Department of the Interior

and the Colorado Water Resources and Power Development Authority and the State Treasurer of the

State of Colorado and the Amended and Restated Agreement and Instructions for Administering

Escrow Account(collectively the Funding and Escrow Agreement) entered into contemporaneously

herewith. These agreements will effectuate a re-dedication of a portion of the funds in the Escrow

Account established pursuant to the 1989 Escrow Agreement. 

5. Cost Sharing/Repayment of San Juan Water Commission Storage Allocation.

The United States and the San Juan Water Commission (“Commission”) agree that the water

capital obligation based on the storage allocation to the Commission shall be paid as set forth in the

Amendatory FundingAgreement andRepaymentContract, the Escrow Agreement among the United
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States Department of the Interior and the Commission and the County Treasurer of the County of

San Juan, New Mexico, and the Agreement and Instructions for Administering Escrow Account

(collectively the Commission Funding and Escrow Agreements) entered into contemporaneously

herewith. 

Recreation Facilities

The United States, acting through the Secretary of the Interior, and the State of Colorado,

agree as follows:

1. Background. The 2000 Amendments authorized the Project Facilities to include those

recreation facilities determined to be appropriate by an agreement between the State of Colorado and

the Secretary that shall provide for payment of any of the costs of such facilities by the State of

Colorado (in addition to any payment for the State of Colorado’s municipal and industrial water

allocation).

2. Further Agreement. Determination of appropriate recreational facilities for the Project, and

provision for payment for such facilities, shall be concluded by separate agreement between the

United States and the State of Colorado, which agreement shall acknowledge that any funds provided

by the State of Colorado for recreation facilities shall constitute cost sharing in the Project by the

State of Colorado.

Other

1. Effect of Agreement. This Agreement amends and restates the 1986 Agreement in full and

therefore supersedes and replaces the 1986 Agreement in full. Accordingly, upon execution of this

Agreement by all parties, the 1986 Agreement shall be of no further force and effect, and execution

of this Agreement expressly releases all parties from any and all obligations created or subsisting

under the 1986 Agreement.

Dated this 9th

 day of November , 2001.

This Contract may be executed in any number of counterparts, all of which together shall

constitute one original agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as

of the date first above written by their respective officers and representatives, and warrants that each

is duly authorized by the respective entity to execute this Agreement, which shall bind the parties

hereto, their successors and assigns.
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 Bill Owens Ken Salazar 

For the State of Colorado For the State of Colorado

 Thomas R. Sharp Leonard C. Burch, Chairman 

For the Colorado Water Resources For the Southern Ute Indian Tribe

and Power Development Authority

 Richard Griswold, President Judy Knight - Frank 

For the Animas-La Plata Water For the Ute Mountain Ute Tribe

Conservancy District

 Thomas C. Turney Randy Kirkpatrick 

For the New Mexico Interstate For the San Juan Water Commission

Stream Commission

 J. Kent Lindsay Rick L. Gold 

For Montezuma County For the Secretary of the Interior
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For the State of Colorado For the State of Colorado

I

For the Colorado Water Res ces For the Southern Ute Indian Tribe

and Power Development Authority

For the Animas-La Plata Water For the Ute Mountain Ute Tribe

Conservancy District

For the New Mexico Interstate For the San Juan Water Commission

Stream Commission

For Montezuma County For the Secretary of the Interior

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FQr the State of Colorado For the State of Colorado

'IAA!

For the Colorado Water Resources

and Power Development Authority

For the Ute Mountain Ute Tribe

Conservancy District

For the New Mexico mterstate For the San Juan Water Commission

Strealil Commission

For Montezuma County For the Secretary of the mterior

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FQr the State of Colorado For the State of Colorado

For the Colorado Water Resources For the Southern Ute Indian Tribe

and Power Development Authority

For the Animas-La Plata Water lihf Wf~ ~;:;'~e~'../1..-

Conservancy District

For the New Mexico Interstate For the San Juan Water Commission

Stream Commission

For Montezuma County For the Secretary of the Interior

.

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For the State of Colorado For the State of Colorado

For the Colorado Water Resources For the Southern Ute Indian Tribe

and Power Development Authority

For the Animas-La Plata Water For the Ute Mountain Ute Tribe

Conservancy District

11t

For the New Mexico Interstat For the San Juan Water Commission

Stream Commission

For Montezuma County For the Secretary of the Interior
For the State of Colorado For the State of Colorado

For the Colorado Water Resources For the Southern Ute Indian TilDe

and Power Developn1ent Authority

--

For the Animas-La Plata Water For the Ute Mountain Ute Tribe

Conservancy District

For the New Mexico Interstate For the San Juan Water Commigsion

Stream COl~sion

For the Secretary of the mterior

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For the State of Colorado For the State of Colorado

For the Colorado Water Resources For the Southern Ute Indian Tribe

and Power Development Authority

For the Animas-La Plata Water For the Ute Mountain Ute Tribe

Conservancy District

For the New Mexico Interstate F ission

Stream Commission

L~~ ~~~

For Montezuma County For the Secretary of the Interior

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ADDENDUM TO COST SHARE AGREEMENT

The Amended and Restated Agreement in Principle Concerning the Colorado Ute Indian Water

Rights Settlement and Binding Agreement for Animas-La Plata Cost Sharing (the "Cost Share Agreement")

was signed by L. Randy Kirkpatrick, Executive Director of the San Juan Water Commission (the

"Commission"), on November 9, 2001, after the Commission's unanimous approval on October 16,2001 ( of a Motion to Approve and Execute the Cost Share Agreement. On February 27,2002, the fifth and last

member entity of the Commission joined the other four entities in approving the Amendatory Funding

Agreement and Repayment Contract between the United States and the San Juan Water Comm ission, New

Mexico ("Amendatory Contract"), which specifically refers to the Cost Share Agreement. Also on

February 27,2002, all Commissioners signed the Amendatory Contract. The unanimous agreement of all

member entities, together with the signing of the Amendatory Contract by all Commissioners, fulfills the

requirements of Article X of the Joint Powers Agreement ("JPA").regarding contracts with the Bureau of

Reclamation pertaining to the Animas-La Plata Project. Further, these acts serve to ratify the Cost Share

Agreement as of the date it was signed.

The undersigned Commissioners hereby affix their signatures to this Addendum to acknowledge

the ratification of the Cost Share Agreement through the approval and signing of the Amendatory Contract

and to comply with any and all technical requirements of the JPA. Dated this 6,' day of March, 2002.

COMMISSrON, NEW MEXICO

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By

Jerry

Mem er, City/of Aztec, New Mexico

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BY' ~ -I/a, 1-(.l..L Lynne [J~~£- I '\ VV&-U:AMember, City of Bloomfield, New Mexico

BY,..,~~ Cy Cooper

Member, City of Farrnington, New Mexico

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Member, San Juan County, New Mexico

By

JimO

Memb ation

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