In 1986, the Tribe settled its water rights with the State of Colorado, which Congress then affirmed in the 1988 Colorado Ute Indian Water Rights Settlement Act and the 2000 Settlement Act Amendments. The Settlement Act and the 2000 Amendments authorized the construction of the Animas-La Plata (ALP) Project, which included the construction of Ridges Basin Dam, creating Lake Nighthorse.  The Southern Ute Indian Tribe has water rights to approximately 35% of the water allocated for the ALP Project.  The ALP Project’s construction began in the early 2000s.  Lake Nighthorse began filling in 2009 and reached full storage capacity in 2011. To date, the Tribe has not utilized any of its ALP water. 

In February 2024, Tribal Council approved the annual consumptive usage of a portion of its ALP water rights on the Animas River for future industrial uses, including energy development.  The Southern Ute Department of Energy will oversee the overall project with energy operators. The Permanent Fund’s Water Resources Division will ensure the water is used according to the Tribe’s water rights and allocations and approve the water metering equipment used during water pull activities. The proceeds collected from the use of this water will fund the operations and maintenance costs for the ALP system and provide for future improvements to dilapidated water infrastructure across the Reservation, including irrigation infrastructure. 

This summer, the Tribe’s water will be used for completion activities within the Reservation boundary. Water will be transported across the Reservation through lay-flat lines, where it will be used for energy development purposes to benefit the Tribe and its members. The lay-flat lines will be removed when operations are completed for the season and will be located entirely within previously disturbed access road or pipeline right-of-way corridors, thus reducing environmental impacts on undisturbed lands. 

The Tribe is required to pay operation and maintenance (O&M) fees once it begins using its ALP Project water. Fortunately, the Tribe only needs to pay for the portion of water that it is using, not for the entire amount of ALP Project water that it has quantified allocation of.  Those fees for the pro rata share of water being used will need to be paid in perpetuity pursuant to the Tribe’s Repayment Agreement.   

This is a historic and exciting moment for the Southern Ute Indian Tribe – the Tribe is finally utilizing some of its ALP water rights that it has fought for over a long period. The Tribe plans to continue developing its water resources for the benefit of the Tribe and its members in the future.