Colorado Ute Settlement Act Amendments of 1998

Colorado Ute Settlement Act Amendments of 1998 - Amends the Colorado Ute Indian Water Rights Settlement Act of 1988 to require the Secretary of the Interior to provide: (1) for construction of a reservoir with a storage capacity of 260,000 acres-feet, a pumping plant, and a reservoir inlet conduit as components of the Animas-La Plata Project (Project), Colorado and New Mexico; and (2) through the use of such components, specified municipal and industrial water allocations to the San Juan Water Commission, Animas-La Plata Conservancy District (Conservancy District), Southern Ute and Ute Mountain Ute tribes, and Navajo Nation.

Provides that construction costs allocable to the Navajo Nation and to each tribe's water allocation from the Project shall be nonreimbursable.

Requires nontribal water capital repayment obligations for the Project to be satisfied upon the payment of specified amounts by the Commission, Conservancy District, and the State of Colorado.

Provides that costs of Project components attributed to and required for recreation, environmental compliance, protection of cultural resources, or fish and wildlife mitigation and enhancement shall be nonreimbursable.

Sets forth provisions regarding the repayment of Project costs.

Requires the Secretary, at the request of the Conservancy District or the La Plata Conservancy District of New Mexico, to provide specified water allocations to such parties.

Requires the Secretary, upon request of the State Engineer of New Mexico, to transfer to the New Mexico Project beneficiaries or the New Mexico Interstate Stream Commission any portion of Department of the Interior interests in water rights under a specified permit in order to fulfill the New Mexico purposes of the Project.

Considers a specified supplement to an environmental impact statement and a biological opinion for the Project to be adequate for purposes of requirements under the Endangered Species Act of 1973, the National Environmental Policy Act of 1969, or the Federal Water Pollution Control Act with respect to: (1) amendments made by this Act; (2) initiation and completion of construction of facilities; and (3) an aggregate depletion of 57,100 acre-feet of water as approved in the opinion.

Requires the provision of water to the Ute tribes to constitute final settlement of the tribal claims to water rights on the Animas and La Plata Rivers.