From the Glenwood Springs Post Independent:
The package of rights known as the West Divide Project were tied to a plan devised in the 1960s to build two large reservoirs in the Crystal River valley at Redstone and divert the stored water to the Divide Creek basin south of Silt. There, the water could have been used in Divide Creek and the Colorado River valley for irrigation or oil shale industry. The Osgood Reservoir would have flooded the village of Redstone, while the smaller Placita Reservoir upstream would have flooded the canyon just below the Marble turn and McClure’s Pass.
Although the River District will abandon the rights associated with building large reservoirs, it will retain other rights and shift their use to help the Crystal River basin with late season flows and create the potential for hydropower development.
The West Divide Project also included rights in the West Divide Creek basin. These water rights will be maintained to benefit the original West Divide service area, but use water supplies only from within the basin. The River District’s actions were made in concurrence with the West Divide Water Conservancy District board…
The original West Divide Project was approved by Congress in 1966 as part of the historic Colorado River Storage Project Act, which led to the construction of the Animas-LaPlata Project and Ridgway Reservoir. But the Bureau of Reclamation subsequently judged the West Divide project unfeasible on a cost-benefit basis, and it was never granted federal funds.