I don't know about squaters rights in Colorado, but you must remember that Shank's outfit was finally able to purchase the line after it was ruled that the D&RG/D&RGW/SP/UP's right to the land predated the later law that said that abandoned railroad right of ways revert to the state after (I think) 10 years. So he has sort of a precedent.
By the way, I'm not taking sides here. I know and like Don Shank and his dad. I'd bet that he nor all the townsfolk of Creede take this as a laughing matter. But it has all the markings of another silly free-for-all pitting "evil developers" against entrenched "life style" advocates. Even us working class suburbians get upset when they build a big shopping center near by and block our view of the mountains. But you've got to be retired and/or rich to live in Creede. I doubt many commute to work in Monte Vista. Somehow, they don't get a lot of my sympathy.
And, I just want to know why Don Shank needs this land? It must be important. Has he given up hope of getting to use the old depot and needs something else close in?
And anyway, this humor takes my mind off all the problems of the C&TS. Maybe we will soon be able to sit back and laugh at it too.