2 CCR 402-10-6 - Geothermal Well Permit Requirements

6.1 General - A permit issued by the State Engineer shall be obtained prior to construction or use of any geothermal well. A copy of the approved permit shall be sent to the applicant. A copy of the permit shall be available and posted at the well or construction site at all times when constructing or performing any work on a well. All work shall comply with the conditions of approval of the valid permit and all work shall be completed prior to the expiration of the permit.

6.1.1 Permit Requirement for a Certified Individual Constructing Loop Fields - Prior to construction of loop fields for geoexchange systems pursuant to Rules 4.2.4 and 4.2.5 ., an individual shall obtain certification and an annual permit from the State Engineer pursuant to Rule 7.

6.1.2 Permit Requirement for a Type A Open System (A-OS), Type B or Reinjection Well - A permit must be obtained from the State Engineer prior to construction or use of a well for the following: exploration, appropriating geothermal resources, or for reinjecting geothermal fluids.

6.1.2.1 A permit is required for each exploration, production, or reinjection well, whether operated independently or as part of an interconnected system.

6.1.2.2 A permit is required prior to the construction of a new exploration, production, or reinjection well, or for replacement of an existing geothermal well used for such purposes.

6.1.2.3 A permit is required to convert the use of an existing well, which was originally constructed for some other purpose, to a geothermal well.

6.1.2.4 A permit is required prior to initial installation of production equipment for recovering geothermal resources from an existing geothermal well.

6.1.2.5 A permit is required for increasing the production from, expanding the use of, changing the producing interval of, or changing the type of use from an existing geothermal well (e.g. from exploration to reinjection).

6.1.2.6 If a permit application meets the requirements of Section 37-90.5-106, C.R.S. (2003) and the provisions of these Rules, the State Engineer shall issue the permit, subject to terms and conditions. A permit to construct and operate a geothermal well does not grant a geothermal right, nor does it allow for the owner or operator to enter upon lands not owned by him. The State Engineer shall act upon each application for a permit (under Rule 6.1.2) within six (6) months.

6.2 Application for a Permit- A permit application shall be submitted on a form prescribed by the State Engineer, along with such other information that may be required for evaluation of the application. The owner or designated agent shall sign and date the permit application, certifying that the information in the application is true to the best of his knowledge.

6.2.1 Application by a Certified Individual for a Permit to Construct Loop Fields- A permit application shall be submitted by a certified individual (see Rule 4.2.4) who will be involved in the construction of loop fields (see Rule 4.2.5). A permit shall be valid for one (1) year (see Rule 7.8). The State Engineer shall act upon each application for a permit (under Rule 6.1.1) within forty-five (45) days.

6.2.2 Application for a Type A Open System (A-OS) Well- A permit application shall be submitted prior to the construction or use of each Type A Open System well.

6.2.2.1 The application shall specify the depth and anticipated temperatures of the geothermal fluids.

6.2.2.2 When the subsurface geologic or hydrologic conditions are not known to the State Engineer, the applicant may be required to supplement the application with geophysical, geological and hydrological information of the subject area.

6.2.2.3 All well testing and well construction operations shall be suspended and the State Engineer shall be notified immediately when geothermal fluid temperature greater than two hundred and twelve (212) degrees Fahrenheit is encountered during the construction of a Type A geothermal well. No further construction shall be allowed unless a permit for a Type B geothermal well has been applied for and approved by the State Engineer. The well must comply with the construction standards for Type B wells.

6.2.2.4 Prior to submitting an application, the applicant shall give notice of the proposed well construction to the owners or operators of any valid, prior water or geothermal rights that are located within one half (1/2) mile of the proposed well. The notice shall be sent by certified mail, return receipt requested, and shall include a copy of the permit application. The notice shall instruct the owners or operators that they must submit a written objection to the State Engineer within forty-five (45) days of their receipt of the notice if they are opposed to the proposed well construction. The application shall specify whether the well will be used to explore or appropriate a geothermal resource, and if so, specify the proposed production rate and disposal of a geothermal fluid. Any secondary uses of a geothermal fluid or recovery of by-products shall be identified in the application. The application shall be supplemented with evidence showing that notice was given as provided above, and that the appropriation meets the provisions of Section 37-90.5-107(3) or (4), C.R.S. (2003), and:

a. if the geothermal fluid appropriated is from a nontributary source as defined in section 37-90-103 (10.5), C.R.S. (2003), the appropriation must comply with the Statewide Nontributary Ground Water Rules, 2 CCR 402-7;

b. if the well is located in the Denver Basin, the appropriation must comply with the Denver Basin Rules, 2 CCR 402-6;

c. if the well is located in a Designated Ground Water Basin, the appropriation must comply with the Ground Water Commission Rules, 2 CCR 410-1.

6.2.2.5 A permit may require reinjection of a geothermal fluid if necessary for the maintenance of the underground pressure and temperature, the prevention of subsidence, or the disposal of brine, and/or to prevent material injury to any valid, prior water or geothermal rights.

6.2.3 Application for a Type B Well- A permit application shall be submitted prior to the construction or use of each Type B well, and the State Engineer shall give notice to appropriate government agencies (see Rule 6.6).

6.2.3.1 The application for a Type B well shall specify the depth and anticipated temperature of the geothermal fluid.

6.2.3.2 When the subsurface geologic or hydrologic conditions are not known to the State Engineer, the applicant may be required to supplement the application with geophysical, geological and hydrological information of the subject area.

6.2.3.3 Prior to submitting an application, the applicant shall give notice of the proposed well construction to the owners or operators of any valid, prior water or geothermal rights that are located within one half (1/2) mile of the proposed well. The notice shall be sent by certified mail, return receipt requested, and shall include a copy of the permit application. The notice shall instruct the owners or operators that they must submit a written objection to the State Engineer within forty-five (45) days of their receipt of the notice if they are opposed to the proposed well construction. The application shall specify if the well is to be used to explore or appropriate a geothermal resource, and if so, specify the proposed production rate and disposal of the geothermal fluid. Any secondary uses of the geothermal fluid or recovery of by-products shall be identified in the application. The application shall be supplemented with evidence showing that notice was given as provided above, and that the appropriation meets the provisions of Section 37-90.5-107(3) or (4), C.R.S. (2003), and:

a. if the geothermal fluid appropriated is from a nontributary source as defined in section 37-90-103 (10.5), C.R.S. (2003), the appropriation must comply with the Statewide Nontributary Ground Water Rules, 2 CCR 402-7;

b. if the well is located in the Denver Basin, the appropriation must comply with the Denver Basin Rules, 2 CCR 402-6;

c. if the well is located in a Designated Ground Water Basin, the appropriation must comply with the Ground Water Commission Rules, 2 CCR 410-1.

6.2.3.4 A permit may require reinjection of a geothermal fluid if necessary for the maintenance of the underground pressure and temperature, the prevention of subsidence, or the disposal of brine, and/or to prevent material injury to any valid, prior water or geothermal rights.

6.2.4 Application for a Reinjection Well- A permit application shall be submitted prior to the construction or use of, each reinjection well (Type A or Type B), and the State Engineer shall give notice to appropriate government agencies (see Rule 6.6). Prior to submitting an application, the applicant shall give notice of the proposed well construction to the owners or operators of any valid, prior water or geothermal rights that are located within one half (1/2) mile of the proposed well. The notice shall be sent by certified mail, return receipt requested, and shall include a copy of the permit application. The notice shall instruct the owners or operators that they must submit a written objection to the State Engineer within forty-five (45) days of their receipt of the notice if they are opposed to the proposed well construction.

6.2.4.1 An application to construct or use a reinjection well shall include geological information and construction information showing that the geothermal fluid is being reinjected into the same reservoir or aquifer from which geothermal fluid is being appropriated. In addition, an application for a permit to construct or use a reinjection well with a proposed injection rate greater than fifteen (15) gpm or anticipated injection pressure greater than one hundred (100) psi shall be supplemented with construction plans and the following minimum information:

a. the casing and cementing programs;

b. depths to the top and bottom of the injection interval;

c. anticipated injection rates, pressures, and temperatures; and,

d. anticipated annual injection volume.

6.2.5 Permit Conditions- The permit shall set forth such conditions for construction, equipping and operating a geothermal well as are reasonable to prevent waste of the resource, contamination of the aquifers, or material injury to any valid, prior water or geothermal rights.

6.2.6 Recording of an Existing Geothermal Well- A geothermal well existing prior to July 1, 1983, not of record in the office of the State Engineer, may be recorded by submitting a Well Construction and Test Report with the appropriate filing fee on a form prescribed by the State Engineer. A well shall be considered to exist if it was actually operating and being used or was undergoing significant construction activities prior to operations on July 1, 1983, and subsequently was put to beneficial use without delay. All available data for the well, including construction and completion data, shall be submitted in the report.

6.3 Fees- Applicable filing fees for permits required by these Rules, and to change a permitted location greater than two hundred (200) feet, to replace a well, and to expand or change the use of a well are shown on the table below:

Permit Fees
Type of Permit	Construct and/or Appropriate	Replace	Expand/Change Use	Register Existing Well	Register and Replace Existing Well	Permit Extension
Certified Individual	$480 (yearly)	N/A	N/A	N/A	N/A	N/A
Type A-OS	$480	$240	$480	$340	$480	$200
Type B	$480	$240	$480	$340	$480	$200
Reinjection	$480	$240	$480	$340	$480	$200

6.4 Well Location- When selecting a site for a geothermal well, the well owner or operator shall consider the topography, surface drainage, access for maintenance and repair, and proximity of the well site to sources of contamination, such as leach fields, sewer lines and land fills. The well owner or operator shall comply with federal, state and local regulations concerning setbacks from structures and property lines if more stringent than these Rules.

6.4.1 Any well constructed on the well owner's property and within two hundred (200) feet of the permitted location shall be deemed to be at the approved location provided it meets the well spacing requirements of this Rule and permit conditions.

6.4.2 No geothermal well shall be located closer than one hundred (100) feet to the nearest source or potential source of contamination unless a variance has been obtained from the State Engineer. For purposes of this Rule, the appropriation and reinjection of a geothermal fluid into the same reservoir shall not be considered as a source of contamination.

6.4.3 A Type A-OS, Type B or reinjection well with a proposed production or injection rate greater than fifteen (15) gpm shall be located more than six hundred (600) feet from:

a. any existing or permitted geothermal well not owned by the applicant, and completed in the same reservoir; or,

b. any existing or permitted water well not owned by the applicant, and completed in the same reservoir; or,

c. any decreed, naturally flowing spring not owned by the applicant, unless the applicant can demonstrate that the source of the spring is not hydraulically connected to the geothermal reservoir.

6.4.4 A proposed well location not meeting the minimum distances specified in these Rules shall not be permitted by the State Engineer unless the following conditions are met:

a. the proposed location complies with the minimum well spacing established for a geothermal management district;

b. an application is submitted to the State Engineer setting forth all material facts involved and the manner and method of the proposed well completion. The application shall be supported by an outline of steps to be taken to prevent contamination by the well and/or material injury to any valid, prior water or geothermal rights;

c. the applicant shall give notice of the proposed well to the owners or operators of any valid, prior water or geothermal rights, which are not owned by the applicant and are located less than the specified minimum distance from the proposed well. The notice shall be sent by certified mail, return receipt requested, and shall include a copy of the permit application and the supplemental information required by paragraph (b) above. The notice shall instruct such owners and operators that they must submit a written objection to the State Engineer within forty-five (45) days of their receipt of the notice if they want to object to the proposed well. Evidence that this notice was given shall be submitted with the permit application; and,

d. no objection to the proposed well is filed within forty-five (45) days of receipt of the notice, and if the State Engineer finds that circumstances in this instance so warrant, he shall issue the permit. If an objection is filed, the State Engineer shall hold a hearing pursuant to the Procedural Regulations, 2 CCR 402-5, to determine whether particular circumstances warrant issuing a permit.

6.5 Replacement Well- A replacement well permit must be obtained prior to relocating or reconstructing an existing well, or changing the producing interval or depth of an existing well without changing the reservoir.

6.5.1 Replacement of a Type A-OS or Type B Geothermal Well- A replacement well shall be constructed within two hundred (200) feet of the original well and shall be constructed to produce from the same reservoir and serve the same purposes as the original well. In the event that the original existing well does not meet the spacing requirements specified in these Rules, the construction of the replacement well shall not worsen the current spacing conditions. The replaced well shall be plugged upon completion of the replacement well, and a plugging report submitted pursuant to Rule 12.12.

6.6 Notice to Other Agencies- Notice of any application, permit, order, or other action received or issued by the State Engineer may be given to any other government agency which may have information, comments, or jurisdiction over the well or activity involved. The State Engineer may enter into a memorandum of understanding with other agencies to eliminate duplication of applications or other efforts. At a minimum, copies of an application will be provided by the State Engineer to the following agencies for review and comment:

a. Type B geothermal well to the Colorado Oil and Gas Conservation Commission;

b. geothermal reinjection well to the Colorado Water Quality Control Commission and the U.S. Environmental Protection Agency; and,

c. Type A-OS or Type B geothermal well located in Designated Ground Water Basins to the Colorado Ground Water Commission.

A response from other government agencies must be received within sixty (60) days. The State Engineer shall consider comments in deciding whether to issue a permit, and may incorporate such comments as conditions of a permit.

6.7 Expiration of Permit- A permit to construct a well shall expire one (1) year after being issued unless the constructor submits a Well Construction and Test Report. A permit to use an existing well shall not have an expiration date. A permit may be extended, if, prior to such expiration, a request to extend the permit is received by the State Engineer. A written extension request shall be submitted by the owner or operator, and shall provide reasons for not completing the well construction, an estimate of time necessary to complete construction of the well and a filing fee as set forth in Rule 6.3. A permit for a certified individual is valid for one (1) year. A permit must be obtained yearly by a certified individual prior to the completion of loop fields for geoexchange systems (see Rule 6.1.1.1).

6.8 Permit Denial- When denying a permit, the State Engineer shall state the reasons for the denial in writing. The permit application and the denial shall be filed and preserved by the State Engineer. A copy of the denial shall be sent to the applicant.

6.9 Hearing and Appeal- Any person aggrieved by a decision of the State Engineer pursuant to these Rules may, within sixty (60) days after such decision, petition for a hearing in accordance with the State Engineer's Procedural Regulations, 2 CCR 402 5. In an adjudicatory matter concerning a geothermal well, the final action of the State Engineer shall be subject to judicial review by the court having authority over the area in which the well is located.

Notes

2 CCR 402-10-6