Federal government would transfer Crystal Reservoir to Ouray with use conditions

The Agriculture Secretary would transfer the federal land and associated water rights to the City of Ouray. The land includes Crystal Reservoir, Full Moon Dam, related water infrastructure, and about 45 acres managed for access and maintenance. The transfer would be subject to existing rights, reserved federal access easements, and the reversion terms. The Secretary would complete the transfer as soon as practicable after enactment.

The city would take responsibility for dam costs and keep the land open under limits on its use. These conditions cover the transferred federal land and Full Moon Dam and related infrastructure. The city would pay for repairs, operations, maintenance, replacements, rehabilitation, and dam safety compliance starting on the transfer date. It would keep the land open for free recreation, with reasonable safety and operational exceptions. Development and commercial activity would be barred except for specified public access, safety, and infrastructure needs. The city could not expand the reservoir's normal surface footprint in a way that harms upstream wetlands, but could deepen it consistently with its water rights. If the land remains out of compliance for 90 days after written notice, it could revert to the United States if the Secretary decides reversion serves the federal interest. The city's cost duties would begin on the transfer date; the compliance period before possible reversion would run for 90 days after written notice.

The Secretary would recognize a permanent easement for the city to use and maintain Red Mountain Ditch. The easement covers the Red Mountain Ditch on lands administered by the named national forests. The easement would allow water diversion and delivery for storage and later beneficial use, up to 6 cubic feet per second. The Secretary could require temporary authorizations for non-routine work or improvements. The easement would take effect after the land transfer.

The city could use reservoir water for any beneficial use allowed by its water rights and state law. This applies to water in Crystal Reservoir. The use must comply with Colorado water laws and applicable water right decrees or temporary administrative approvals obtained by or for the city. This permission would apply after the land transfer.