Committee directs chair to explore title transfer of Keyhole Reservoir lands with Reclamation and state agencies

Legislators discussed opportunities to transfer Bureau of Reclamation lands around Keyhole Reservoir to Wyoming control and voted to authorize the committee chair to pursue meetings with state agencies.

An LSO memo summarized Reclamation’s title‑transfer process, including eligibility criteria, public outreach, memorandum of agreement requirements, and transaction costs. Senator Driscoll said local stakeholders and grazers raised interest in picking up federal acres surrounding reservoirs to improve local grazing, recreation and tourism management.

Scott Hettinger, acting area manager for Reclamation’s Dakotas area office, and Justin Hammer (deputy manager, Rapid City field office) described the process used in North Dakota (Jamestown and Dickinson) where lands around reservoirs were transferred by legislation or by Dingle Act authority; those transfers left dams and federal operational responsibility with Reclamation but transferred surrounding lands and operations/maintenance to managing partners.

Committee members asked whether an initiating letter from Wyoming State Parks would commit the state; Reclamation said a letter opens the conversation and that public scoping and detailed cost estimates follow. Senator Driscoll moved — and the committee approved — a motion giving the chair authority to assemble staff and agency meetings (Parks, State Lands, State Engineer) to explore a Keyhole transfer and outline potential next steps.

Next steps: Chair will convene a working group with agency staff, and staff will brief the committee on feasibility, estimated transaction costs and constraints (for example, reservoirs with national wildlife refuges may not be transferable).