Capital Development Committee backs CPW sale of Mount Pisgah shares, secures lease to support state parks

The Capital Development Committee voted unanimously to recommend approval of a Colorado Parks and Wildlife (CPW) property transaction that would sell CPW’s shares in the Mount Pisgah Reservoir and Ditch Company and secure a long-term lease of water storage to support operations at Mueller Lake State Park and Dome Rock State Wildlife Area.

Daphne Gervais, director of legislative affairs with the Department of Natural Resources, told the committee the proposed settlement resolves litigation that CPW filed in 2025 after a private entity acquired a majority of shares and sought to convert the ditch company to a for-profit corporation. “That conversion would render CPW’s share ownership in the company unconstitutional, because state agencies cannot hold shares in a for profit corporation,” Gervais said. She summarized the settlement as a sale of CPW’s shares and associated infrastructure and water-rights interests in Mount Pisgah Reservoir in exchange for a long-term lease of storage at the reservoir.

Gervais said the settlement would preserve storage that supports wildlife and recreation at Mueller Lake State Park and Dome Rock State Wildlife Area and would avoid the expense and uncertainty of continued litigation. She also noted a letter of support from the Mount Pisgah Reservoir and Ditch Company was included in the committee packet.

With no committee questions, the vice chair moved that the committee recommend support for the fee-title disposition of the stated acreage of CPW-held interests and for acquisition of a minimum of 25 acre-feet of storage space in Mount Pisgah Reservoir. During the motion the vice chair clarified a numerical reading in the record: a figure originally read aloud as “2,446,000” was corrected in committee to “2,446.24 acres.” The clerk called the roll; Pelton, Winter, Story and the chair voted yes, and the motion passed among those present. Senators/representatives Henriksen and Lindsey (spelled “Lindsay” in a later roll-call line in the transcript) were recorded as excused.

Frank McGee (Southeast regional manager) and Pete Conovitz (water-rights program administrator) were identified as joining the presentation virtually. Gervais also noted she will be leaving her legislative-affairs role within two days; committee members thanked her for her work.

The committee took no additional action on other items and adjourned.