# Produced Water from 

# Oil and Gas Development in

Colorado

Water Management for Shale Plays

Denver, Colorado 

### May 28, 2014

Kevin Rein, P.E

., Deputy State Engineer
Colorado Division of Water Resources

## Basic understanding

• Oil and gas wells produce ground water

• That water production is incidental

• Pumping ground water, potential for injury



### • The Colorado Division of Water Resources administers the use of water, no injury

### • Energy production in Colorado meets



### • Hydrogeology

, which leads to

• A water rights issue, creating a

• Difficult regulatory obligation

.

• The existing law provided for some discernment in administration



### • These conditions led to a legislative effort creating new law

, providing for

• Efficient regulation

.

# Geologic PerspectiveShale

Shale

Sandstone

Shale

Gas Producing
Formation Domestic Well Gas Well

3000’ 300’ Shallow Aquifer

Example of Gas Well to Water Well Isolation

# Findings of the Colorado Supreme Court Case 

# 07CA293, Vance v. Wolfe 

### Coal bed methane wells that produce water make an “appropriation” of water for beneficial use.

◦ Must obtain water well permits from State Engineer.

◦ If tributary, must replace injurious stream depletions.

 

### Non

- Coal bed methane wells that produce water, not necessarily a beneficial use.

◦ Water well permit is dependent on subsequent use.

◦ If tributary, must replace injurious stream depletions. 

### Potential for State Engineer to issue many water well permits

 

### Potential for State Engineer to curtail oil and gas 

### wells due to possible injury to surface water rights



## However,

 

### If any wells produce nontributary ground water, the law provides that regulation of those wells can be reduced or eliminated.

# Solution: Legislative Action

Summary of HB 09

- 1303

### HB 09

- 1303 authorizes rulemaking by the State Engineer

 HB 09

- 1303 authorizes the State Engineer to adopt rules to assist in the process for determining that ground water meets the definition of nontributary

.
 Scope of rulemaking

◦ Methodologies, assumptions, accepted values, definitions, etc.

◦ Proposals for nontributary determinations for oil and gas formations

### Tributary ground water

 All ground water is presumed tributary to natural surface streams

 Withdrawal of tributary ground water impacts the surface streams, water rights

 That impact, can cause injury

### Nontributary ground water

 Some ground water is isolated from surface water.

 Impact of withdrawal is minimal

 Colorado law acknowledges this type of ground water with the term “ nontributary ”

◦ Quantitative standard.

## Tributary and Nontributary

- It’s all about ground water’s interaction with surface waterClay

Aquifer ? Great distance to stream

Tributary

Nontributary

### 1985 Law (SB5)

 

### Allows nontributary water withdrawal when mining minerals

 

### Premised on incidental withdrawal (dewatering of a geologic formation)
 This necessarily limits the amount that can be withdrawn  This necessarily limits the duration

### Therefore, a determination of nontributary is desirable because:

 

### No water well permit will be required in many situations

 

### No administration under the prior appropriation system

 No augmentation plan required

 What is an augmentation plan?

# Rulemaking

RULES AND REGULATIONS FOR THE DETERMINATION OF THE NONTRIBUTARY NATURE OF GROUND WATER PRODUCED THROUGH WELLS IN CONJUNCTION WITH

THE MINING OF MINERALS

“PRODUCED NONTRIBUTARY GROUND WATER RULES ”

2 CCR 402

- 17

# Rules and Rulemaking

(Exactly what kind of rules?)

### Potential for connection of coal interval to surface
water

# Well Permit Requirements

Water Administration 

# RequirementsNo Subsequent Beneficial Use

Tributary Nontributary

CBM Permit?: Yes Permit?: Yes

Replacement required?:

Yes 1 Replacement required?: No

Non

- CBM Permit?: No Permit?: No

Replacement required?:

Yes 1 Replacement required?: No

1. For depletions that impact an over

- appropriated stream. No replacement is required for depletions that impact a stream that is not over

- appropriated.Subsequent Beneficial Use

Tributary Nontributary

CBM Permit?: Yes Permit?: Yes

Replacement required?:

Yes 1 Replacement required?: No

Non

- CBM Permit?: Yes Permit?: Yes 2

Replacement required?:

Yes 1 Replacement required?: No

1. For depletions that impact an over

- appropriated stream. No replacement is required for depletions that impact a stream that is not over

- appropriated.

2. No permit required if “Subsequent Beneficial Use” is limited to uses in SB

- 165 

### Energy production occurs in Colorado

 

### Impacts to water resources

 

### We need a thoughtful approach to administration

 

### Senior water rights must be protected

 

### The law allows energy production with provisions for 

### protecting water rights