A lake overlooking Ouray has a cracked dam. Officials are at odds on how to fix it

DENVER (KDVR) — A popular lake near Ouray is facing possible change after U.S. Forest Service officials identified a crack in the dam on the north end of the lake.

Crystal Lake can be accessed easily from the Million Dollar Highway (U.S. 550), making it a popular spot for tourists. It also draws in locals for its fishing and gorgeous views and has been used as a racetrack by the likes of Our Gang Ice Racing.

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But Crystal Lake’s Full Moon dam has a crack along the dam’s centerline, according to stakeholders and a forest service inspection form dated Aug. 14, 2023.

If the dam fails, that will create a disaster, according to Ouray U.S. Forest Service District Ranger Dana Gardunio. She said that a routine inspection of the dam in 2023 revealed a crack, but the dam’s high hazard rating does not relate to the crack.

“The high hazard rating indicates that there’s a potential for loss of life or property damage to occur if that were to happen,” said Gardunio. “That is not based on structural integrity, that’s purely based on location.”

Crystal Lake sits at the edge of the valley overlooking the city of Ouray.

“It was modeling that there could be impacts as far as seven miles downstream from the reservoir, which basically is the community of Ouray,” Gardunio said.

As snowmelt adds to the volume of water in the lake and the pressure on the dam, forest service officials are looking at lowering the lake’s levels to relieve some of the pressure. But that’s a temporary solution.

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In the long term, officials are looking at draining the lake completely, fixing or replacing the dam, selling or trading the land to the city of Ouray to handle, or another organization that could keep the lake open to the public.

Additionally, Ouray has water storage rights with Red Mountain Ditch, and the potential to exchange water within the Crystal Reservoir. However, the municipality does not have the appropriate land use authorization from USFS.

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