1. Short title

This Act may be cited as the "Crystal Reservoir Conveyance Act".

2. 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) except as otherwise provided in this Act, all right, title, and interest of the United States in and to the Federal land; and

(2) all right, title and interest of the United States in and to any water rights held for use on, appurtenant to, or otherwise 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—

(1) convey fee simple title to the Federal land;

(2) be subject to—

(A) valid existing rights;

(B) the reservation to the United States, in the deed conveying the Federal land, of easements for each road, trail, and trailhead in existence on the date of the conveyance, together with such additional rights as are reasonably necessary for access, administration, operation, maintenance, repair, and replacement of those improvements; and

(C) the reversionary interest described in subsection (e)(3); and

(3) except as provided in subsection (d)(2), be 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) effective beginning on the date of the conveyance, to assume responsibility for the costs of all repairs, operations, maintenance, replacement, rehabilitation, and regulatory compliance relating to Full Moon Dam and related infrastructure, including Full Moon Ditch and Reservoir Number 10;

(B) to maintain the Federal land in perpetuity as open space, to be held open—

(i) for public access for recreational activities, including fishing, except as reasonably necessary for public safety, resource protection, emergency response, or the operation, maintenance, repair, replacement, or rehabilitation of Full Moon Dam, Crystal Reservoir, or related infrastructure; and

(ii) not subject to any fee for recreational access;

(C) not to conduct on the Federal land any development, commercial operations, or construction, other than as needed for the operation, maintenance, repair, replacement, rehabilitation, public safety, and regulatory compliance for dam safety of Full Moon Dam, Crystal Reservoir, and related infrastructure, including Full Moon Ditch and Reservoir Number 10; and

(D) not to expand the surface footprint of Crystal Reservoir at normal operating levels (as depicted on the Map) 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 otherwise be allowed.

(2) Necessary action agreement - The conveyance under subsection (b) shall be made subject to terms agreed to by the Secretary and the City that authorize the City to take such action on the easements described in subsection (c)(2)(B) as the City determines is reasonable and necessary for—

(A) public safety;

(B) emergency response; or

(C) the operation, maintenance, repair, replacement, or rehabilitation by the City of Full Moon Dam, Crystal Reservoir, or related infrastructure.

(3) 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.

(4) Reversionary interest -

(A) Written notice - If the Federal land conveyed under subsection (b) ceases to be used in accordance with the terms and conditions under this subsection the Secretary shall submit to the City written notice with respect to such use.

(B) Reversion - After the 90-day period beginning on the date written notice is submitted to the City under subparagraph (A), if the Federal land conveyed under subsection (b) continues to be used in a manner not in accordance with the terms and conditions under this subsection during such period, 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) Easement -

(1) In general - After the conveyance under subsection (b), the Secretary—

(A) shall recognize a perpetual easement for the Red Mountain Ditch for use by the City—

(i) for the purposes relating to the Ditch specified in the decrees entitled "Case No. 1751-B" and "Case No. 2013CW3040" for the State of Colorado, including the diversion and delivery of water (not to exceed 6 cubic feet per second) for storage in Crystal Reservoir and subsequent beneficial use; and

(ii) to access, operate, maintain, repair, replace, or improve the Ditch and its appurtenances for such purposes; and

(B) may require special use authorizations for non-routine maintenance and repairs of Red Mountain Ditch or for the replacement or improvement of the Ditch.

(2) Red Mountain Ditch defined - In this subsection, the term "Red Mountain Ditch" means the Ditch known as Red Mountain Ditch constructed in or about 1945 located, as of the date of the enactment of this Act, on lands administered by the San Juan National Forest and the Grand Mesa, Uncompahgre, and Gunnison National Forest, in Section 14, Township 42 North, Range 8 West, New Mexico Principal Meridian.

(g) Water rights - After the conveyance under subsection (b), the City may use water in Crystal Reservoir for any beneficial use, subject to applicable water laws of the State of Colorado.

(h) 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 clerical or typographical 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.

May 20, 2026Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed