7886

• UCREFRP Catalog Number: 7886
• Author: Hydrosphere Resource Consultants.
• Title: Yampa River Basin Recommended Alternative, Detailed Feasibility Study
• USFW Year: 1995.
• USFW - Doc Type: Final Report.
• Copyright Material: NO

Reservoir Site Characterization
Information on the ownership of properties adjacent to Elkhead Reservoir was gathered
from the Moffat and Routt County Assessor's offices. No title searches were completed for the
properties; however, communications were made with Epp and Associates, Inc., a local
surveyor, and the Northwest Colorado Title Company branches in Craig and Steamboat
Springs that serve Moffat and Routt counties, respectively, to compile information on recent
property transactions. These parties have indicated that they were not aware of any significant
property disputes or adverse possession related issues. A detailed map of the property
ownership in the vicinity is shown in Figure 3-2.
Mineral, Oil and Gas Rights
The northwest corner of Colorado is known to contain potentially developable subsurface
natural geologic resources. The resources which could possibly be found in the project area
include oil, gas, coal, sand and gravel, uranium, and others. Therefore it was prudent to more
specifically investigate the possible impact of subsurface resource development on the planned
reservoir enlargement. A cursory examination of available records indicates that these
resources are held both with the land title and as rights severed from the land but that there is
no current resource development on or immediately adjacent to the project area (i.e. none
under production or permitted for production) and no proven reserves. This places resource
development activity in the immediate project area into a "moderately speculative" category,
the type of activity for which lending institutions would be unlikely to loan money.
Our research was able to ascertain no specific attention given to the ownership or value
of subsurface resources at the time the site was originally developed as a reservoir, which was
during a period (mid-1970's) when resource extraction activity in the area was high. The
agreement by which Craig is currently acquiring ownership of the dam and reservoir also
makes no mention of subsurface resources. In neither case were appraisals of these resources
made. The inference from this information is that the dam and reservoir represent the highest
and best use for the site and that the area's mineral, oil, and gas resources have a minimal
value.
,Some interesting mineral resource characteristics worthy of specific attention include:
1. The mineral resource rights do not appear to be contiguous or in a tract size large
enough to interest a natural resource company to go to the effort of acquiring them.
2. The presence of the existing reservoir makes it difficult to economically develop
("diminution in value") any mineral resources.
3. There may be some "exploration value" which could be realized by owners of
current geological rights through leasing the right to explore for these resources to
others. This might be of more value than the value of the actual extracted resource.
4. New exploration activity and future changes in mineral resource values could change
the general conclusion that development activity in the project area is speculative.
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