Ouray, Colorado, Gains Full Control of Crystal Reservoir and Dam, But Takes on All Maintenance Costs

The Crystal Reservoir Conveyance Act is about transferring a valuable piece of real estate and critical infrastructure from the federal government to local control. Specifically, this bill directs the Secretary of Agriculture, through the Forest Service, to hand over ownership of the Crystal Reservoir, the Full Moon Dam and its facilities, and about 45 acres of surrounding land to the City of Ouray, Colorado. This isn’t a sale; the transfer is mandated to happen at no cost to the City, except for any surveys the City might want, and it includes all associated historical water rights, which date back to a 1942 court decree.

The Price of Ownership: Maintenance and Public Access

While the land transfer itself is free, the City of Ouray is immediately taking on a major financial commitment. As soon as the deed is signed, the City is responsible for all repair, operation, and maintenance costs for the Full Moon Dam and related infrastructure. Dams are expensive to maintain, and this provision (SEC. 2) shifts a potentially massive, long-term financial burden from the federal government to the local municipality and its taxpayers. If you live in Ouray, this means your city budget is now on the hook for any necessary dam repairs or upgrades.

In exchange for ownership, the City must agree to several strict conditions. The land must be maintained forever as open space, with full public access for recreation, such as fishing, without charging any fee (SEC. 2). For outdoor enthusiasts, this is a win, guaranteeing that this area remains accessible and free. Furthermore, the City is barred from conducting any development, commercial operations, or construction on the land, except what is strictly necessary to operate and maintain the dam and reservoir. This keeps the area pristine but severely limits the City’s ability to monetize the land to offset those new maintenance costs.

Water Rights and Wetland Worries

One of the biggest draws for the City is gaining full control over the water rights associated with the reservoir. The bill explicitly allows Ouray to use the reservoir for storing water, augmentation, and other beneficial uses consistent with Colorado water law. This secures a vital resource for the City’s future water needs.

However, there’s a tricky clause regarding expansion. The City is allowed to deepen Crystal Reservoir if it aligns with its existing water rights, but it cannot expand the historical footprint in a way that would “flood, impair, or harm any wetlands located upstream” (SEC. 2). This creates a medium level of vagueness. Deepening a reservoir often requires complex engineering and can easily impact surrounding ecosystems. The City will have to walk a fine line between maximizing its water storage capacity and avoiding legal challenges over what constitutes “harming” or “impairing” upstream wetlands. For environmental groups, this is the provision to watch closely, as the interpretation of “impair” will be critical.

The Reversion Clause: Federal Leverage

To ensure the City sticks to the deal—especially the free public access and maintenance requirements—the federal government maintains a powerful safety net: a reversionary interest. If the land stops being used according to the terms and conditions outlined in the bill, the land and all infrastructure will revert back to the United States. This only happens if the Secretary of Agriculture decides that reversion is in the “best interest of the United States.” This clause means the City can’t just sell the land or turn the reservoir into an exclusive private club years down the line; the federal government retains ultimate leverage to enforce the open-space and public-access mandates.