S. 2754 — Crystal Reservoir Conveyance Act

This section directs the Secretary of Agriculture, acting through the Chief of the Forest Service, to convey to the City of Ouray, Colorado, as soon as practicable after enactment—(1) all right, title, and interest in approximately 45 acres of federal land known as the Crystal Reservoir site in Ouray County (including the reservoir lake, Full Moon Dam and associated facilities, Full Moon Ditch, and Reservoir Number 10, as depicted on a specified map dated June 23, 2025); and (2) all associated water rights, including those under a 1942 state court decree. The conveyance is by quitclaim deed at no cost to the city (except for survey costs), subject to valid existing rights and a federal reversionary interest if the city violates specified conditions. As conditions of conveyance, the city must (1) grant the Secretary easements for existing trails and roads; (2) assume all costs for repair, operation, and maintenance of the dam and related infrastructure; (3) maintain the land in perpetuity as open space for full public recreational access (including fishing) with no access fees; (4) conduct no development, commercial operations, or construction except as needed for such operation and maintenance; and (5) refrain from expanding the reservoir footprint in a way that harms upstream wetlands (though deepening consistent with city water rights is permitted). The section further authorizes continued city use of the nearby Red Mountain Ditch structure for decreed water purposes; permits city use of the reservoir for storage, in-reservoir uses, augmentation, and other beneficial purposes consistent with state water law; allows pre-conveyance repairs with Secretary approval; and requires the Secretary to finalize the map and legal description (subject to minor corrections), to be kept on file for public inspection.