Earl's post below regarding the shutoff of water to the SLRG in La Veta is not surprising.Unfortunately it is an old story here in the West, and from Kelly Anderson's post, it must happen elsewhere.
Depending on the political weather, Chama council members would try and blame the railroad for this that or the other. They claimed that their chronic problems with their water system was the fault of the railroad, or that's what they would tell townspeople. John Oldberg (superintendent in the 1970s) pointed out in a council meeting that the C&TS has 125 acre feet of water rights on the Chama River, and we obtained water from our own separate system. Undaunted, the councilmen looked for other reasons to throw the railroad "under the bus", like smoke, noise, etc. In the 1990s the town tried to attach their own tax to ticket sales.
Antonito in the 1970s also tried to blame the r.r. for water problems, though the r.r.at the time was using only about 4000 gallons a week, not much by most standards, less than the town's cafes or hotels.
Durango historically was looking for "somethin' for nothin'". Once they demanded the railroad excavate and rebuild a ruptured sewer line that went under the yard. The R.R. responded with a better idea- put your sewer line somwhere else! The city quietly paid for the sewer line rebuild. Since then the smoke hassles are well-documented, though this time more reasonable heads prevailed, the city and the railroad cooperated with each other and the problem is largely resolved.
Creede's active dislike for the railroad is also well-known.The latest is an "adverse petition" for abandonement of the r.r. within the city limits. I don't know why ,but townspeople were glad to see the railroad go in the 1980s, predating the current influx of arts-and-crafts types.
Of course, some of this contention is as old as railroading itself. Decades ago the D&RGW had big plans to expand the extensive facilities in Salida, and make it the center for locomotive and car repair for its Colorado lines, both narrow gauge and standard. The r.r. requested the town condemn some property for this expansion, which the town fathers refused. The D&RGW never forgot this slight. Repair facilities remained in Denver, Pueblo, Alamosa and Grand Junction, while facilities in Salida were downgraded and closed. When the city asked for a locomotive for display, it was refused. When the city asked for the depot as a city hall, it was bulldozed. Salida was eliminated as a terminal and crew change point. Eventually the r.r. even removed the bridge over the Arkansas River to the depot grounds!
Some years ago the ATSF wanted to expand its facilities in Winslow. Again, town fathers refused to cooperate. The expansion was done in nearby Joseph City, and the r.r. built a new high school for the grateful town.
These resentments are often old, of big companies dominating towns, and throwing their weight around and bullying town fathers and smaller businesses when it was expedient for them to do so. Some of it is the venality, pettiness and/or greed of small-minded people that often dominate the politics of small towns. Some of it is legitimate differences like the smoke issue, that with some good faith can be resolved ina positive way.