Conveyance of Federal land to Ouray, Colorado

(a)

Definitions

In this section:(1)

City

The term City means the City of Ouray, Colorado.(2)

Federal land

The term Federal land means—(A)the site known as Crystal Reservoir in Ouray County, Colorado, including—(i)the lake associated with that reservoir;(ii)Full Moon Dam and associated facilities, including the spillway and outlet;(iii)Full Moon Ditch and Reservoir Number 10; and(iv)all infrastructure associated with the reservoir; and(B)the parcel comprising approximately 45 acres of land underlying and surrounding Crystal Reservoir, as depicted on the Map, managed by the Forest Service as necessary for access for repair, operation, and maintenance of Crystal Reservoir and the features described in clauses (i) through (iv) of subparagraph (A).(3)

Map

The term Map means the map prepared by the Forest Service entitled Crystal Reservoir Conveyance and dated June 23, 2025.(4)

Secretary

The term Secretary means the Secretary of Agriculture, acting through the Chief of the Forest Service.(b)

Conveyance

As soon as practicable after the date of enactment of this Act, the Secretary shall convey to the City—(1)all right, title, and interest of the United States in and to the Federal land; and(2)all water rights associated with the Federal land, including the Full Moon Ditch and Reservoir Number 10 water rights described in the decree of the State of Colorado in Civil Action No. 1959, dated May 11, 1942.(c)

Requirements

The conveyance under subsection (b) shall be—(1)made by quitclaim deed;(2)subject to—(A)valid existing rights; and(B)the reversionary interest described in subsection (e)(3); and(3)except as provided in subsection (d)(2), completed at no cost to the City.(d)

Costs

(1)

In general

Except as provided in paragraph (2), the Secretary shall pay all costs associated with the conveyance under subsection (b).(2)

Survey

The City shall pay all costs associated with any surveys conducted for the purpose of accomplishing the conveyance under subsection (b).(e)

Terms and conditions

(1)

In general

As a condition of the conveyance of the Federal land under subsection (b), the City shall agree—(A)to grant to the Secretary an easement for each trail and road in existence on the date of the conveyance that, as determined by the Secretary, originates at, terminates at, or traverses the Federal land;(B)effective beginning on the date of the conveyance, to assume responsibility for the costs of all repairs, operations, and maintenance of Full Moon Dam and related infrastructure, including Full Moon Ditch and Reservoir Number 10;(C)to maintain the Federal land in perpetuity as open space, to be held open—(i)for full public access for recreational activities, including fishing; and(ii)not subject to any fee for recreational access;(D)not to conduct on the Federal land any development, commercial operations, or construction, other than as needed for the operation and maintenance of Full Moon Dam, Crystal Reservoir, and related infrastructure, including Full Moon Ditch and Reservoir Number 10; and(E)not to expand the historical footprint of Crystal Reservoir in a manner that would flood, impair, or harm any wetlands located upstream of the Federal land, subject to the condition that deepening Crystal Reservoir in a manner consistent with the water rights of the City shall be allowed.(2)

Other terms and conditions

The conveyance under subsection (b) shall be subject to such other terms and conditions as the Secretary determines to be appropriate.(3)

Reversionary interest

If the Federal land conveyed under subsection (b) ceases to be used in accordance with the terms and conditions under this subsection, the Federal land shall revert to the United States, at the discretion of the Secretary, if the Secretary determines that reversion is in the best interest of the United States.(f)

Use of Red Mountain Ditch

After the conveyance under subsection (b), the Secretary shall allow the structure located near the Federal land commonly known as Red Mountain Ditch, located near Red Mountain Pass, to continue to be used by the City for all decreed purposes under Colorado water law, including the diversion and delivery of water for storage in Crystal Reservoir.(g)

Water rights

(1)

In general

Subject to paragraph (2), the City may use Crystal Reservoir for—(A)storage of water and in-reservoir uses, consistent with any water rights; or(B)releases of water for augmentation and other beneficial uses, consistent with any water rights.(2)

State water law

The City shall manage all water rights associated with the Federal land in accordance with applicable water laws of the State of Colorado.(h)

Rule of construction

Nothing in this section prohibits the City from making any expenditure for repair of Full Moon Dam or any other feature of the Federal land before the date of the conveyance under subsection (b), subject to the approval of the Secretary.(i)

Map and legal description

(1)

In general

As soon as practicable after the date of enactment of this Act, the Secretary shall finalize the Map and a legal description of the Federal land to be conveyed under subsection (b).(2)

Corrections

The Secretary and the City, by mutual agreement, may correct any minor errors in the Map or legal description under paragraph (1).(3)

Map on file

The Map and legal description under paragraph (1) shall be on file and available for public inspection in each appropriate office of the Forest Service.