Colorado Ute Indian Water Rights Settlement Act of 1988
PL 100-585 (H.R.2642), enacted 11/03/1988

PUBLIC LAW 100-585—NOV. 3, 1988 
102 STAT. 2973 
Public Law 100-585 
100th Congress 
An Act 
To facilitate and implement the settlement of Colorado Ute Indian reserved water 
rights claims in southwest Colorado, and for other purposes. 
Nov. 3, 1988 
[H.R. 2642] 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
Colorado ute 
Indian Water 
SECTION 1. SHORT TITLE. 
Rights 
This Act may be cited as the "Colorado Ute Indian Water Rights of 1
9
8
™
^
" 
Settlement Act of 1988". 
SEC. 2. FINDINGS. 
The Congress finds that— 
(1) The Federal reserved water rights claims of the Ute 
Mountain Ute Indian Tribe and the Southern Ute Indian Tribe 
are the subject of existing and prospective lawsuits involving 
the United States, the State of Colorado, and numerous parties 
in southwestern Colorado. 
(2) These lawsuits will prove expensive and time consuming 
to the Indian and non-Indian communities of southwestern 
Colorado. 
(3) The major parties to the lawsuits and others interested in 
the settlement of the water rights claims of the Ute Mountain 
Ute Indian Tribe and the Southern Ute Indian Tribe have 
worked diligently to settle these claims, resulting in the June 
30, 1986, Binding Agreement for Animas-La Plata Project Cost 
Sharing which w£is executed in compliance with the cost shar-
ing requirements of chapter IV of Public Law 99-88 (99 Stat. 
293), and the December 10, 1986, Colorado Ute Indian Water 
Rights Final Settlement Agreement. 
(4) The Ute Mountain Ute Indian Tribe and the Southern Ute 
Indian Tribe, by resolution of their respective tribal councils, 
which are the duly recognized governing bodies of each Tribe, 
have approved the December 10, 1986, Agreement and sought 
Federal implementation of its terms. 
(5) This Act is required to implement portions of the above 
two agreements. 
SEC. 3. DEFINITIONS. 
Forpurposesof this Act— 
(1) The term "Agreement" means the Colorado Ute Indian 
Water Rights Final Settlement Agreement dated December 10, 
, 
1986, among the State of Colorado, the Ute Mountain Ute 
Indian Tribe, the Southern Ute Indian Tribe, the United States, 
and other participating parties. 
(2) The term "Animas-La Plata Project" means the Animas-
La Plata Project, Colorado and New Mexico, a participating 
project under the Act of April 11, 1956 (70 Stat. 105; 43 U.S.C. 
620; commonly referred to as the "Colorado River Storage 
102 STAT. 2974 
PUBLIC LAW 100-585—NOV. 3, 1988 
Project Act") and the Colorado River Basin Project Act (82 Stat. 
885; 43 U.S.C. 1501 et seq.). 
(3) The term "Dolores Project" means the Dolores Project, 
Colorado, a participating project under the Act of April 11, 1956 
(70 Stat. 105; 43 U.S.C. 620; commonly referred to as the "Colo-
rado River Storage Project Act"), the Colorado River Basin 
Project Act (82 Stat. 885; 43 U.S.C. 1501 et seq.), and as further 
authorized by the Colorado River Basin Salinity Control Act (98 
Stat. 2933; 43 U.S.C. 1591). 
(4) The term "final consent decree" means the consent decree 
contemplated to be entered after the date of enactment of this 
Act in the District Court, Water Division No. 7, State of 
Colorado, which will implement certain provisions of the 
Agreement. 
(5) The term "Secretary" means the Secretary of the Interior. 
(6) The terms "Tribe" and "Tribes" mean the Ute Mountain 
Ute Indian Tribe, the Southern Ute Indian Tribe, or both 
Tribes, as the context may require. 
(7) The term "water year 
means a year commencing on 
October 1 each year and running through the following Septem-
ber 30. 
SEC. 4. PROVISION OF WATER TO TRIBES. 
(a) WATER FROM THE ANIMAS-LA PLATA AND DOLORES PROJECTS.— 
The Secretary is authorized to supply water to the Tribes from the 
Animas-La Plata and Dolores Projects in accordance with the Agree-
ment: Provided, That nothing in this subsection or in the authorized 
purposes of the projects may be construed to permit or prohibit the 
sale, exchange, lease, use, or other disposal of such water by the 
Tribes. Any such sale, exchange, lease, use, or other disposal of 
water from these projects shall be governed solely by the other 
provisions of this Act and the Agreement as modified pursuant to 
section 11 of this Act. 
(b) APPLICATION OF FEDERAL RECLAMATION LAWS.—Except as pro-
vided in section 5 of this Act, the water supplied to the Tribes from 
the Animas-La Plata Project and the Dolores Project shall be subject 
to Federal reclamation laws only to the extent needed to effectuate 
the terms and conditions contained in Article III, section A, sub-
sections 1 and 2 and Article III, section B of subsection 1 of the 
Agreement. 
SEC. 5. DISPOSAL OF WATER. 
(a) INDIAN INTERCOURSE ACT.—The provisions of section 2116 of 
the Revised Statutes (25 U.S.C. 177) shall not apply to any water 
rights confirmed in the Agreement and the final consent decree: 
Provided, That nothing in this subsection shall be considered to 
amend, construe, supersede, or preempt any State law, Federal law, 
interstate compact, or international treaty that pertains to the 
Colorado River or its tributaries, including the appropriation, use, 
development, storage, regulation, allocation, conservation, expor-
tation, or quality of those waters. 
Courts, U.S. 
Qo) RESTRICTION ON DISPOSAL OF WATERS INTO LOWER COLORADO 
RIVER BASIN.—None of the waters from the Animas-La Plata or 
Dolores Projects may be sold, exchanged, leased, used, or otherwise 
disposed of into or in the Lower Colorado River Basin unless water 
within the Colorado River Basin held by non-Federal, non-Indian 
holders of that water pursuant to any water rights could be so sold. 
PUBLIC LAW 100-585—NOV. 3, 1988 
102 STAT. 2975 
exchanged, leased, used, or otherwise disposed of under State law. 
Federal law, interstate compacts, or international treaty pursuant 
to a final, nonappealable order of a Federal court or pursuant to an 
agreement of the seven States signatory to the Colorado River 
Compact. 
(c) USE OF WATER RIGHTS.—(1) The use of the rights referred to in Contracts. 
subsection (a) within the State of Colorado shall be governed solely as 
provided in the Agreement as modified pursuant to section 11 of this 
Act and this subsection. The Agreement is hereby modified to 
provide that a Tribe may voluntarily elect to sell, exchange, lease, 
use, or otherwise dispose of any portion of a water right confirmed in 
the Agreement and final consent decree off its reservation. If either 
the Southern Ute Indian Tribe or the Ute Mountain Ute Indian 
Tribe so elects, and as a condition precedent to such sale, exchange, 
lease, use. or other disposition, that portion of the Tribe's water right 
shall be changed to a Colorado State water right, but be such a State 
water right only during the use of that right off the reservation, and 
shall be fully subject to State laws, Federal laws, interstate com-
pacts, and internationsd treaties applicable to the Colorado River 
and its tributaries, including the appropriation, use, development, 
storage, regulation, allocation, conservation, exportation, or quality 
of those waters. 
(2) The characterizations in the Agreement of any water rights 
which may be used off the reservation of the respective Tribe as 
either "project reserved water right" or "nonproject reserved water 
right" are hereby expressly disapproved ana any claim to water 
rights so characterized shall be extinguished when the final consent 
decree is entered. 
(d) RULES OF CONSTRUCTION.—Nothing in this Act or in the Agree-
ment shall— 
(1) constitute authority for the sale, exchange, lease, use, or 
other disposal of any Federal reserved water right off the 
reservations; 
(2) constitute authority for the sale, exchange, lease, use, or 
other disposal of any water held pursuant to a Colorado- State 
water right, or of any Colorado State water right, outside the 
State of Colorado; or 
(3) be deemed a congressional determination that any holders 
of water rights do or do not have authority under existing law to 
sell, exchange, lease, use, or otherwise dispose of such water or 
water rights outside the State of Colorado. 
SEC. 6. REPAYMENT OF PROJECT COSTS. 
Contracts. 
(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. 
(b) AGRICULTURAL IRRIGATION WATER.—(1) The Secretary shall 
defer, without interest, the repayment of the construction costs 
102 STAT. 2976 
PUBLIC LAW 100-585—NOV. 3, 1988 
within the capability of the land to repay, which are allocable to 
each Tribe's agricultural irrigation water allocation from the 
Animas-La Plata and Dolores Projects in accordance with the Act of 
July 1, 1932 (25 U.S.C. 386a; commonly referred to as the "Leavitt 
Act"), and section 4 of the Act of April 11, 1956 (70 Stat. 107; 43 
U.S.C. 620c; commonly referred to as the "Colorado River Storage 
Project Act"). Such allocated construction costs which are beyond 
the capability of the land to repay shedl be repaid £is provided in 
subsection (g) of this section. 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 agricultural irrigation 
allocation from the Animas-La Plata Project, 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, 
the Tribe shall commence bearing that increment's pro rata share of 
the allocable annual operation, maintenance, and replacement costs. 
Agriculture and 
During any period in which water is used by a tribal lessee on land 
agricultural 
owned by non-Indians, the Tribe shall bear that increment's pro 
commodities. 
j.^^^^^ share of the allocated agricultural irrigation construction costs 
within the capability of the land to repay as established in subsec-
tion (bXD. 
(c) ANNUAL COSTS WITH RESPECT TO RIDGES BASIN PUMPING 
PLANT.—(1) The Secretary shall bear any increased annual oper-
ation, maintenance, £ind replacement costs to Animas-La Plata 
Project water users occasioned by a decision of either Tribe not to 
take delivery of its Animas-La Plata Project water allocations from 
Ridges Basin Pumping Plant through the Long Hollow Tunnel and 
the Dry Side Canal pursuant to Article III, section A, subsection 2.i 
and Article III, section B, subsection l.i of the Agreement until such 
water is first used either by a Tribe or pursuant to a water use 
contract with the Tribe. Such costs shall not be reimbursable by the 
Tribe. 
(2) As an increment of its water from the Animas-La Plata Project 
is first used by a Tribe or is first used pursuant to the terms of a 
water use contract with the Tribe, the Tribe shall commence bear-
ing that increment's pro rata share of such increased annual oper-
ation, maintenance, and replacement costs, if any. 
(d) SECRETARIAL DEFERRAL.—The Secretary may further defer all 
or a part of the tribal construction cost obligations and bear all or a 
part of the tribal operation, maintenance, and replacement obliga-
tions described in this section in the event a Tribe demonstrates that 
it is unable to satisfy those obligations in whole or in part from the 
gross revenues which could be generated from a water use contract 
for the use of its water either from the Dolores or the Animas-La 
Plata Projects or from the Tribe's own use of such water. 
(e) USE OF WATER.—For the purpose of this section, use of water 
shall be deemed to occur in any water year in which a Tribe actually 
uses water or during the term of any water use contract. A water 
use contract pursuant to which the only income to a Tribe is in the 
nature of a standby charge is deemed not to be a use of water for the 
purposes of this section. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There is hereby au-
thorized to be appropriated such funds as may be necessary for the 
Secretary to pay the annual operation, maintenance, and replace-
ment costs as provided in this section. 
PUBLIC LAW 100-585—NOV. 3, 1988 
102 STAT. 2977 
Appropriation 
authorization. 
(g) COSTS IN EXCESS OF ABILITY OF THE IRRIGATORS TO REPAY.—The 
portion of the costs of the Animas-La Plata Project in excess of the 
ability of the irrigators to repay shall be repaid from the Upper 
Colorado River Basin Fund pursuant to the Colorado River Storage 
Project Act and the Colorado River Basin Project Act. 
(h) DEFERRAL OF CERTAIN CONSTRUCTION COSTS.—Repa3niient of 
the portion of the construction costs of the Florida Project which 
have been allocated to the 563 acre-feet of agricultural irrigation 
water for which the Southern Ute Tribe is responsible shall be 
deferred by the Secretary pursuant to the Act of July 1, 1932 (25 
U.S.C. 386a; 47 Stat. 564) as provided in section 4(d) of the Act of 
April 11, 1956 (43 U.S.C. 620c; 70 Stat. 107), and the Florida Water 
Conservancy District's current repajonent obligation shall not 
change. 
SEC. 
7
. 
TRIBAL 
DEVELOPMENT 
FUNDS. 
(a) EsTABUSHMENT.—There is hereby authorized to be appro-
priated the total amount of $49,500,000 for three annual installment 
pajmients to the Tribal Development Funds which the Secretary is 
authorized and directed to establish for each Tribe. Subject to 
appropriation, and within 60 days of availability of the appropria-
tion to the Secretary, the Secretary shall allocate and make pay-
ment to the Tribal Development Funds as follows: 
(1) To the Southern Ute Tribal Development Fund, in the first 
year, $7,500,000; in the two succeeding years, $5,000,000 and 
$5,000,000, respectively. 
(2) To the Ute Mountain Ute Tribal Development Fund, in the 
first year, $12,000,000; in the two succeeding years, $10,000,000 
and $10,000,000, respectively. 
(b) ADJUSTMENT.—To the extent that any portion of such amount 
is contributed after the period described above or in amounts less 
than described above, the Tribes shall, subject to appropriation Acts, 
receive, in addition to the full contribution to the Tribal Develop-
ment Funds, an a^'ustment representing the interest income as 
determined by the Secretary in his sole discretion that would have 
been earned on any unpaid amount had that amount been placed in 
the fund as set forth in section 7(a). 
(c) TRIBAL DEVELOPMENT.—(1) The Secretary shall, in the absence Securities 
of an approved tribal investment plan provided for in paragraph (2), 
invest the moneys in each Tribal Development Fund in accordance 
with the Act entitled "An Act to authorize the deposit and invest-
ment of Indian funds" approved June 24, 1938 (25 U.S.C. 162a). 
Separate accounts shall be maintained for each Tribe's development 
fund. The Secretary shall disburse, at the request of a Tribe, the 
principal and income in its development fund, or any part thereof, 
in accordance with an economic development plan approved under 
paragraph (3). 
(2) Each Tribe may submit a tribal investment plan for all or part 
of its Tribal Development Fund as an alternative to the investment 
provided for in paragraph (1). The Secretary shall approve such 
investment plan within 60 days of its submission if the Secretary 
finds the plan to be 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, the Tribal 
Development Fund shall be disbursed to the Tribe to be invested by 
the Tribe in accordance with the approved investment plan. The 
102 STAT. 2978 
PUBLIC LAW 100-585—NOV. 3, 1988 
Secretary may take such steps as he deems necessary to monitor 
compliance with the approved investment plan. The United States 
shall not he 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 fimds. The principal and income from tribal investments under 
an approved investment plan shall be subject to the provisions of 
this section and shall be expended in accordance with an economic 
development plan approved under paragraph (3). 
(3) Each. Tribe shall submit an economic development plan for all 
or any portion of its Tribal Development Fund to the Secretary. The 
Secretary shall approve such plan within 60 days of its submission if 
the Secretary finds that it is reasonably related to the economic 
development of the Tribe. If the Secretary does not approve such 
plan, the Secretary shall, at the time of decision, set forth in writing 
and with particularity the reasons for such disapproval. Each Tribe 
may alter the economic development plan, subject to the approval of 
the Secretary as set forth in this subsection. The Secretary shall not 
be directly or indirectly liable for any claim or cause of action 
arising from the approval of an economic development plan or from 
the use and expen^ture by the Tribe of the principal of the funds 
and income accruing to the funds, or any portion thereof, following 
the approval by the Secretary of an economic development plan. 
(d) PER CAPITA DISTRIBUTIONS.—Under no circumstances shall any 
part of the principal of the funds, or of the income accruing to such 
funds, or the revenue from any water use contract, be distributed to 
any member of either Tribe on a per capita basis. 
(e) L
l
M
T
T
A
T
I
O
N ON SETTING ASIDE FiNAL CONSENT DECREE.—Nei-
ther the Tribes nor the United States shall have the right to set 
aside the final consent decree solely because subsection (c) is not 
satisfied or implemented. 
SEC. 8. WAIVER OF CLAIMS. 
(a) GENERAL AUTHORITY.—^The Tribes are authorized to waive and 
release claims concerning or related to water rights as described in 
the Agreement. 
(b) CONDITION ON PERFORMANCE BY SECRETARY.—^Performance by 
the Secretary of his obligations under this Act and payment of the 
moneys authorized to be paid to the Tribes by this Act shall be 
required only when the Tribes execute a waiver and release as 
provided in the Agreement. 
SEC. 9. ADMINISTRATION. 
In exercising his authority to administer water rights on the Ute 
Mountain Ute and Southern Ute Indian Reservations, the Sec-
retary, on behalf of the United States, shall comply with the 
administrative procedures governing the water rights confirmed in 
the Agreement and the Final Consent Decree to the extent provided 
in Article IV of the Agreement. 
SEC 10. INDIAN SELF-DETERMINATION ACT. 
(a) IN GENERAL.—^The design and construction fiuictions of the 
Bureau of Reclamation with respect to the Dolores and Animas-La 
Plata Projects shsdl be subject to the provisions of the Indian Self-
Determination and Education Assistance Act (88 Stat. 2203; 25 
PUBLIC LAW 100-585—NOV. 3, 1988 
102 STAT. 2979 
U.S.C. 450 et seq.) to the same extent as if such functions were 
performed by the Bureau of Indian Affairs. 
(b) APPUCATION.—This section shall not apply if the application of 
this section would detrimentally affect the construction schedules of 
the Dolores and Animas-La Plata Projects. 
SEC. 11. MODIFICATION OF AGREEMENT; RULE OF CONSTRUCTION. 
(a) MODIFICATION.—The Agreement shall be deemed to have been 
modified to conform to this Act. 
(b) RULE OF CONSTRUCTION.—The Agreement shall be construed in 
a manner consistent with this Act. This Act is intended solely to 
permit settlement of existing and prospective litigation among the 
signatory parties to the Agreement. This Act is the result of a 
voluntary compromise agreement between the Southern Ute Indian 
Tribe, the Ute Mountain Ute Indian Tribe, the State of Colorado, 
local water districts and municipalities, and the United States. 
Accordingly, no provision of this Act, the Agreement, or the final 
consent decree shall be construed as altering or afTecting the deter-
mination of £my questions relating to the reserved water rights 
belonging to other Indian tribes. 
SEC. 12. INDIVIDUAL MEMBERS OF TRIBES. 
Any entitlement to reserved water of any individual member of 
either Tribe shall be satisfied from the water secured to that 
member's Tribe. 
SEC. 13. EFFECTIVE DATE. 
(a) Sections 4(b), 5, and 6 of this Act shall take effect on the date 
on which the final consent decree contemplated by the Agreement is 
entered by the District Court, Water Division No. 7, State of Colo-
rado. Any moneys appropriated under section 7 of this Act shall be 
placed into the Ute Mountain Ute and Southern Ute Tribal Develop-
ment Funds in the Treasury of the United States together with 
other parties' contributions to the Tribal Development Funds, but 
shall not be available for disbursement pursuant to section 7 until 
such time as the final consent decree is entered. If the final consent 
decree is not entered by December 31,1991, the moneys so deposited 
shall be returned, together with a ratable share of accrued interest, 
to the respective contributors and the Ute Mountain Ute and South-
ern Ute Tribal Development Funds shall be terminated and the 
Agreement may be voided by any party to the Agreement. Upon 
such termination, the amount contributed thereto by the United 
States shall be deposited in the general fund of the Treasury. 
(b) No provision of this Act shall be of any force or effect if the 
final consent decree is not executed and approved by the court. 
SEC. 14. VOIDING OF AGREEMENT. 
The United States shall not exercise its right to void the Agree-
ment pursuant to Article VI, section C, subsection 2 thereof. 
Approved November 3, 1988. 
LEGISLATIVE HISTORY—H.R. 2642 (S. 1415): 
HOUSE REPORTS: No. 100-932 (Comm. on Interior and Insular Affairs). 
SENATE REPORTS: No. 100-555 accompanying S. 1415 (Select Comm. on Indian 
, Affairs and Comm, on Energy and Natural Resources). 
CONGRESSIONAL RECORD, Vol. 134 (1988): 
Oct. 3, considered and passed House. 
Oct. 14, considered and passed Senate.