The proposed sale of the Running Iron Ranch — a key property tied to the San Juan Headwaters Project and our region’s long-term water security — raises urgent questions that deserve thoughtful public dialogue and full transparency.
đź’§ Why the Running Iron Ranch Matters
For nearly two decades, the Dry Gulch site — including the Running Iron Ranch — has been identified as a vital location for a potential future reservoir. The Pagosa Area Water and Sanitation District (PAWSD) and San Juan Water Conservancy District (SJWCD) have invested millions into this vision, with PAWSD continuing to make significant loan payments tied to the property.
Now, the proposed sale marks a major shift. Before final decisions are made, our community needs answers about the process, the timeline, and the lasting consequences.
đź“ť Key questions the community deserves answered
- Was the sale process open and competitive?
- How many bids were received?
- Only one current appraisal was made. Who paid for it, and is one sufficient to establish market value? Will it be made public so ratepayers can review it?
- Was the property broadly advertised to secure fair market value?
- Was a Request for Proposal (RFP) issued recently, given changing market conditions since the last RFP during COVID in 2021?
- Why the rush to finalize the sale by July 11, 2025?
- The general outlines of the sale proposal were known to PAWSD in the fall of 2024, but not made public until the end of May 2025. The proposed buyer has a tax deadline of July 11. Why was such a tight deadline for a transaction with far-reaching public impact not publicized sooner?
- What are the real financial implications of keeping the ranch?
- The ranch is said to cost $500,000 per year to maintain, but no detailed financial breakdown has been provided. The loan payment is around $265,000.
- What about income from gravel royalties or grazing leases? The public deserves a transparent accounting of both costs and revenue from the past five years.
- How much will water rates come down if the ranch is sold?
Who controls the future reservoir? - The current proposal mentions that Zipper Valley Ranch would grant a perpetual easement for about 125 acres for a ±3,000 acre-foot reservoir — but only after a 10.5-year management term and if funding is secured.
- PAWSD says it doesn’t need any new water sources, and SJWC lacks funding to build it. Considering those conditions it would appear the smaller reservoir will never be built.
What will prevent future dense development? - Without the reservoir will there be deed restrictions or conservation easements to ensure the ranch isn’t converted into a subdivision that alters the rural character of Pagosa Springs and strains local infrastructure?
📣 What’s at stake
The Running Iron Ranch is more than a piece of land — it represents a cornerstone of our community’s water future. Decisions made today will shape water security, land use, and the character of our region for generations. A decision of this magnitude requires transparency, thoughtful planning, and meaningful public input–not a stampede.
✉ How you can get involved
Your voice matters. We encourage all residents to share their views with district leaders before decisions are finalized.
âś… Next Steps
- Attend the next meetings of the district boards
- Submit your comment via email or in person
- Encourage neighbors and friends to get involved
📨 Public Comment Template
(Copy and paste)
Subject: Public Comment on Proposed Running Iron Ranch Sale
Dear Board Members,
I am writing as a concerned member of the community regarding the proposed sale of the Running Iron Ranch. Given the importance of this property to our region’s water future, I urge the district to:
- Ensure transparency by publicly sharing all bids, financial analyses, and the reasoning behind the accelerated timeline.
- Consider deed restrictions or conservation easements to protect the land from future dense development even if a reservoir is not built.
- Provide a detailed, publicly accessible cost-benefit analysis of retaining versus selling the property, including revenues from existing leases and royalties.
- Allow sufficient time for public review and input on this significant decision.
Thank you for your consideration. I look forward to your response and a transparent process that reflects the best interests of our community.
Sincerely,
[Your Name]
[Your PAWSD Mailing Address]
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