Water Sources and Demand for the Hydraulic Fracturing

of Oil and Gas Wells in Colorado from 2010 through 20151

Recently, questions have been raised about the quantity of water that will be needed for the 

hydraulic fracturing of oil and gas wells in Colorado. This report is intended to address these 

questions. 

Hydraulic fracturing is the process of creating small cracks, or fractures, in underground 

geological formations to allow oil and natural gas to flow into the wellbore and thereby increase 

production. To fracture the formation, special fracturing fluids are injected down the well bore 

and into the formation under high pressure. These fluids typically consist of approximately 90% 

water, 9.5% sand, and 0.5% chemicals. The volume of fluids used for this purpose depends 

upon a variety of factors, including the well type and the formation depth and geologic 

composition. For example, horizontal wells require more water than vertical or directional wells

(because of the length of the borehole that will be fracture stimulated), and deeper shale 

formations require more water than shallower coal bed methane formations. Hydraulic 

fracturing has been used in Colorado to increase the production of oil and gas wells since the 

1970s, and in recent years most Colorado oil and gas wells have been hydraulically fractured. 

The following pages will examine the current and projected water demands for hydraulic 

fracturing in Colorado, compare those demands to the amount of water that is used for other 

purposes in Colorado, identify potential sources of water for hydraulic fracturing, and summarize 

the legal and administrative requirements for using those sources. 

Projected Water Demands for Hydraulic Fracturing in Colorado

During the Period from 2010 Through 2015

The pace and type of oil and gas well construction in Colorado and other states depend upon a 

variety of factors that are difficult to predict or control. These factors include national and 

regional economic conditions, oil and gas prices, capital availability, corporate strategies, and 

technological innovations. The variability in these factors is reflected in recent well starts in 

Colorado, which increased from 2007 to 2008, decreased from 2008 to 2009, and then 

increased again from 2009 to 2010 and from 2010 to 2011:

 

1

Jointly prepared by the Colorado Division of Water Resources, the Colorado Water Conservation Board, 

and the Colorado Oil and Gas Conservation Commission
The various factors that influence oil and gas development, and the resulting variations in 

development activity, make it extremely difficult to predict future development levels. 

Nevertheless, the Colorado Oil and Gas Conservation Commission has attempted to predict 

such development during the period of 2010 through 2015 for the purpose of quantifying the 

amount of water that could be used for hydraulic fracturing during these years. These 

predictions are tentative, general, and should be used with caution. They are based upon the 

following assumptions, which may or may not prove accurate:

 The demand for new gas wells will remain relatively flat.

 The number of drilling rigs in the state will remain relatively flat.

 The number of wells drilled will remain relatively flat because of rig count.

 The number of horizontal oil wells drilled will increase approximately 20% each year.

 The number of vertical wells drilled will decrease proportionally with the increase in 

horizontal wells drilled.

Based upon these assumptions, the Colorado Oil and Gas Conservation Commission estimates

that during the period from 2010 through 2015 hydraulic fracturing will require the following 

volumes of water:

Projection of Annual Demand for Hydraulic Fracturing (Acre-Feet2)

3

2010 2011 2012 2013 2014 2015

13,900 14,900 16,100 16,900 17,800 18,700

 

2 One acre-foot is approximately equal to 326,000 gallons.

3

The demands for hydraulic fracturing are based on actual numbers of wells constructed for the years 

2010 and 2011 and estimated numbers of wells to be constructed for the following years based on a 

county-specific projection. The amount of water demand was determined using the number of wells, 

using vertical or horizontal construction practices, multiplied by an amount of water required for hydraulic 

fracturing per well. The amount of water required per well is based on reported data.

4048

4419

2053

2753

2975

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2007 2008 2009 2010 2011

Colorado Well Starts
Regional geology dictates how wells will be drilled, either vertical or horizontal, and the volume 

of water that will be necessary to provide the most effective fracture stimulation treatment (frac). 

Frac water volumes have been calculated by predicting the number of new vertical and 

horizontal wells to be drilled in each county. Completion records were then evaluated to 

determine a typical water volume used in 2011 completions for each type of well construction in 

the county. The number of vertical and horizontal wells was multiplied by the typical water 

volume used in order to predict a total county water use. All of the county volumes were 

summed to determine the statewide use. 

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2010 2011 2012 2013 2014 2015

Acre-Feet

Year

Demand Projection for Hydraulic Fracturing
Water Demands in Colorado

The table below shows the amount of water currently diverted for beneficial use for all uses in 

Colorado on an average annual basis. It is important to note that water use in Colorado varies 

significantly on a year to year basis, and the projected increase in demand for hydraulic 

fracturing is well within Colorado’s current year to year variation. This table is broken down into 

three categories. The third category, “Total All Others”, is then further broken down into seven

categories, including hydraulic fracturing.

Sector

2010 Use 

(Acre-Feet/Yr)4

Percent of 

State Total

Total 16,359,700

Agriculture 13,981,100 85.5%

Municipal and Industrial 1,218,600 7.4%

Total All Others 1,160,000 7.1%

 Breakdown of "All Others"

Total All Others 1,160,000

Recreation 923,100 5.64%

Large Industry 136,000 0.83%

Thermoelectric Power Generation 76,600 0.47%

Hydraulic Fracturing 13,900 0.08%

Snowmaking 5,300 0.03%

Coal, Natural Gas, Uranium, and Solar Development 5,100 0.03%

Oil Shale Development 0 0.00%

The graphs on the following pages indicate that the amount of water currently used for hydraulic 

fracturing in Colorado is a small portion of the total amount of water used. In 2010, it reflected 

slightly less than one-tenth of one percent of the total water used. In 2015, it is projected to 

increase by 4,800 acre-feet to slightly more than one-tenth of one percent of the total water 

used.

 

4

The estimated values for Current Annual Use are based on diversion records from the Colorado Division 

of Water Resources. For some categories, those amounts are further apportioned consistent with 2010 

Statewide Water Supply Initiative data from the Colorado Water Conservation Board.
0

5,000,000

10,000,000

15,000,000

20,000,000

Total Agriculture Municipal and 

Industrial

Total All Others

Acre-Feet

Amount of Water Currently Diverted Annually 

for all Uses in Colorado

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Acre-Feet

Amount of Water Currently Diverted Annually, 

Breakdown of All Others-Type Uses

0

5,000

10,000

15,000

20,000

2010 2011 2012 2013 2014 2015

Acre-Feet

Year

Demand Projection for Hydraulic Fracturing
Potential Sources of Water for Hydraulic Fracturing

Several sources of water are available for hydraulic fracturing in Colorado. Because Colorado’s 

water rights system is based in the prior appropriation doctrine, water cannot be simply diverted 

from a stream/reservoir or pumped out of the ground for hydraulic fracturing without reconciling 

that diversion with the prior appropriation system. Like any other water user, companies that 

hydraulically fracture oil and gas wells must adhere to Colorado water laws when obtaining and 

using specific sources of water for this purpose.

Below is a discussion of the sources of water that could potentially be used for hydraulic 

fracturing. The decision to use any one source is dependent on the ability to satisfy the water 

rights obligations and will also be driven by the economics associated with that source.

Water transported from outside the state

An Operator may transport water from outside of the state. As long as the transport and the use 

of the water carries no legal obligation to Colorado, this is an allowable source of water from a 

water rights perspective.

Irrigation water leased or purchased from a landowner

A landowner may have rights to surface water, delivered by a ditch or canal, that is used to 

irrigate land. An Operator may choose to enter into an agreement with the owner of the water 

rights to purchase or lease a portion of that water. This is allowable, however, in nearly every 

case, the use of an irrigation water right is likely limited to irrigation uses and cannot be used for 

Well Construction. To allow its use for Well Construction, the owner of the water right and the 

Operator may apply to change the water right through a formal process. (See “Change of Water 

Right” below.)

Treated water or raw water leased or purchased from a water provider

An Operator may choose to enter into an agreement with a water provider to purchase or lease 

water from the water provider’s system. Municipalities and other water providers may have a 

surplus of water in their system before it is treated (raw water) or after treatment that can be 

used for Well Construction. Such an arrangement would be allowed only if the Operator’s use is 

compliant with the water provider’s water rights.

Water treated at a waste water treatment plant leased or purchased from a water provider

An Operator may choose to enter into an agreement with a water provider to purchase or lease 

water that has been used by the public, and then treated as waste water. Municipalities and 

other water providers discharge their treated waste water into the streams where it becomes 

part of the public resource, ready to be appropriated once again in the priority system. But for 

many municipalities a portion of the water that is discharged has the character of being 

“reusable.” As a result, it is possible that after having been discharged to the stream, it could be 

diverted by the Operator to be used for Well Construction. Such an arrangement could only be 

exercised with the approval of the Division of Water Resources’ Division Engineer and would be 

allowed only if the water provider’s water rights include uses for Well Construction.

New diversion of surface water flowing in streams and rivers

In most parts of the state, the surface streams are “over appropriated,” that is, the flows do not 

reliably occur in such a magnitude that all of the vested water rights on those streams can be 

satisfied. Therefore, the only time that an Operator will be able to divert water directly from the 
river is during periods of higher flow and lesser demand. Those periods do occur but not 

necessarily reliably or predictably.

Ground water diverted from wells completed in tributary formations outside Designated Ground 

Water Basins (“Designated Basins”)

An Operator may choose to enter into an agreement with the owner of a well outside of the 

Designated Basins to divert the well’s water for Well Construction, or to divert additional water 

for Well Construction. However, most existing wells will be located in parts of the state where 

the surface streams are over appropriated. In those locations, because of the wells’ relatively 

junior water rights, the well is actually a diversion structure only and not a source of 

appropriated water. Instead, all water withdrawn by the well must be withdrawn according to a 

plan that acknowledges the impact of the well’s pumping on the over-appropriated stream and 

an accompanying plan for replacing that water to the stream to correct for the depletive impact. 

Therefore, the complexity of using the well to divert ground water for Well Construction will be 

primarily a result of the need to develop a plan for replacing depletions to the stream system. 

(See “Augmentation Plans” below.)

Ground water diverted from wells inside Designated Basins

An Operator may choose to enter into an agreement with the owner of a well inside the 

Designated Basins to divert the well’s water for Well Construction. If the well’s water right 

allows Well Construction as a use and there are no other restrictions on its use, this is a viable 

source of water. However, the water right for most wells in the Designated Basins generally 

does not include an allowance for oil and gas well construction purposes. If there is a question 

as to whether some other term in the well’s water right can be construed as an allowance for

Well Construction, since these terms are usually ambiguous, the Division of Water Resources 

will evaluate them on a case-by-case basis to determine whether the intent of that term could 

have been for Well Construction purposes. If the well’s water right does not allow for Well 

Construction, the owner of the well and the Operator may apply to change the water right 

through a formal process. (See “Change of Water Right” below.)

Ground water diverted from wells completed or to be completed in nontributary aquifers

An Operator may choose to enter into an agreement with a landowner to divert nontributary 

ground water from the aquifer underlying the landowner’s land. The most recognizable 

occurrence of nontributary ground water is the water in the Dawson, Denver, Arapahoe, and 

Laramie-Fox Hills aquifers of the Denver Basin situated along the Front Range of Colorado. 

This is permissible and can be done through the issuance of a well permit. In most cases there 

are no restrictions on the types of use allowed for nontributary ground water if it is not already 

subject of a decree or a well permit. There are, however, limits to the amount of water that may 

be withdrawn in a given period of time. Specifically, the amount of water that may be withdrawn 

from a piece of land under consideration is the amount of ground water calculated to be 

contained in the aquifer underlying that land; and no more than one percent of the amount 

calculated may be withdrawn annually (many will recognize this limitation as the basis for the 

term: “100-year aquifer life”). This withdrawal limitation would be applied to any well permit that 

allows the use of Well Construction and it is the exact same limitation that would be applied to 

wells that would withdraw the water for domestic, commercial, agricultural, or other uses. The 

amount of water currently being withdrawn for all uses from the bedrock aquifers of the Denver 

Basin is estimated to be 350,000 acre-feet annually.5

 

5

According to the Citizens Guide to Denver Basin Groundwater, 2007, produced and distributed by the 

Colorado Foundation for Water Education.
Produced Water

An Operator may choose to use water produced in conjunction with oil or gas production at an 

existing oil or gas well. The water that is produced from an oil or gas well falls under the 

administrative purview of the State Engineer’s Office and as a result is either nontributary, in 

which case, it is administered independent of the prior appropriation system; or is tributary, in 

which case, the depletions from its withdrawal must be fully augmented if the depletions occur in 

an over-appropriated basin. The result in either case is that the produced water is available for 

consumption for other purposes, including Well Construction. The water must not be 

encumbered by other needs and a proper well permit must be obtained by the Operator before 

the water can be used for Well Construction. The exception to this permitting requirement is the 

allowance in Section 37-90-137(7), C.R.S., whereby produced water from a nontributary 

formation using a non-coal-bed methane operation may be applied to uses associated with Well 

Construction without a well permit.

Reused or Recycled Well Construction Water

For all of the different sources listed above that are used for Well Construction, the water right in 

question must contain provisions that allow the water to be fully consumed. Under that scenario, 

water that is used for well construction of one well may be recovered and reused in the 

construction of subsequent wells. 

The COGCC encourages reuse and recycling of both the water used in Well Construction and

the water produced in conjunction with oil or gas production. Reuse and recycling of water is 

covered in COGCC Rule 907 MANAGEMENT OF E&P WASTE, which describes the process 

for submitting a plan to the COGCC for review and approval. In the Piceance Basin several of 

the larger operators have constructed pipelines and use trucks to convey produced and already 

used water and other fluids to their centrally located water management facilities. At these 

facilities the water is treated so that it can be reused for drilling and completing new wells. 

Explanation of Terms

Change of water right

In Colorado, a water right may be changed to allow for uses other than those originally granted 

to the water right and the water right can keep its original priority date. However, whether it is a 

water right inside or outside of the Designated Basins, such a change of use must be done 

through a formal process with notice to other water users. While the standards vary for each 

individual situation, in each case the change process is meant to ensure there will be no 

increase in use of the water right over what the water right allows or what has historically been 

done. Further, the change must include provisions to ensure that other owners of vested water 

rights are not impacted by a change to the system as a result of the change of water right. For 

designated ground water in the Designated Basins, the change of water right will be 

accomplished through an application to the Colorado Ground Water Commission according to 

the Designated Basin Rules [2-CCR-410-1]. Outside the Designated Ground Water Basins, the 

change of water right may be accomplished through an application to the water court or an 

application to the State Engineer for temporary approval of a substitute water supply plan 

pursuant to 37-92-308 and the State Engineer’s Policy No. 2003-2, or an Interruptible Water 

Supply Agreement pursuant to 37-92-309. 

Augmentation plans

In Colorado, water may be diverted when the result is a depletive effect on the stream system 

even though the diverter does not a have a water right with the priority to do so, as long as the 
diverter obtains formal approval of a plan to offset the depletive effect on the stream with a 

source of replacement water. Such a plan is called an augmentation plan. The plan must 

acknowledge the depletive effect of the diversion on the stream, including consideration of the 

amount of the depletion as well as the time and location of the depletion. Then the plan must 

identify a source of water that has been obtained to replace those depletions to ensure that no 

party with a senior vested water right will be injured. Approval to operate the augmentation plan 

may be accomplished through an application to the water court or an application to the State 

Engineer for temporary approval of a substitute water supply plan pursuant to 37-92-308.