Colorado Land Deal Hands Ouray Free Reservoir, But City Takes On All Dam Maintenance Costs Immediately

The Crystal Reservoir Conveyance Act is a clean, direct bill that transfers ownership of federal land—specifically the Crystal Reservoir, the Full Moon Dam, and associated water structures—from the U.S. Forest Service to the City of Ouray, Colorado. This is happening immediately upon the bill becoming law. The City gets the land and the critical water rights (including those from the 1942 decree for Full Moon Ditch and Reservoir Number 10) for free, though Ouray must cover the cost of any land surveys needed to finalize the deal. It’s a classic land-swap scenario, designed to put local infrastructure under local control.

The Free Land That Isn't Exactly Free

While the land transfer itself is done via a quitclaim deed at no charge, the City of Ouray is inheriting a major, non-negotiable financial responsibility. The bill is crystal clear: the City must take over all costs for the repair, operation, and maintenance of the Full Moon Dam, the reservoir, and the related infrastructure starting the day the land transfers. For busy local governments, this means an immediate and potentially massive new line item in the budget for maintaining aging dam infrastructure, which is never cheap. Think of it as getting a free vintage car—it looks great, but you’re now 100% responsible for the engine rebuild.

Public Access is Locked In

For residents and visitors, the bill contains some major wins for guaranteed public access. The City is required to maintain the land as open space forever, and it must remain open for public recreation, including fishing. Crucially, the City is prohibited from charging any access fee for recreation. This means the reservoir area is permanently protected from private development and remains accessible to everyone. The bill also prevents the City from expanding the reservoir’s footprint in a way that would flood or harm any upstream wetlands, which is a significant environmental protection.

Strict Rules on Development and Use

The City’s new ownership comes with serious strings attached that limit future development. Ouray is prohibited from building anything new or starting commercial operations on the land. The only exception is work strictly necessary to operate and maintain the dam and water infrastructure. If you’re a local business owner hoping the City might open a concession stand or lease out space for a boat rental operation, this bill shuts that door. Furthermore, the federal government isn’t entirely walking away; the Secretary of Agriculture retains the right to an easement for any existing roads or trails that cross the property, ensuring the Forest Service still has access where needed.

The Catch: Breaking the Rules

This isn't a permanent, unconditional handover. If the City of Ouray fails to use the land according to the conditions—for example, if they start charging for access, try to sell the land, or neglect dam maintenance—the Secretary has the option to take the land back for the United States. This reversion clause acts as a perpetual check on the City, ensuring they stick to the terms of the deal, particularly the maintenance and public access requirements. The ultimate trade-off here is clear: Ouray gains control over its water future, but it takes on the full financial and regulatory burden of managing a critical piece of infrastructure under strict federal oversight.