# Oil and Gas Well Construction Regulation of Fresh Water Sources in Colorado

Kevin Rein, PE Deputy State Engineer Colorado Division of Water Resources October 29, 2013! 

## Water needs for hydraulic fracturing in Colorado ! 

## Water sources for hydraulic fracturing in Colorado 

# TOPICS

# Water Demands in Colorado

# Orienting ourselves

# Orienting ourselves

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# Per Well Hydraulic Fracturing Demand

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## Amount of water used per well " 

## 1-5 million gallons per well (3-15 acre-feet 1 

## ) " 

## More water used for horizontal drilling " 

## 80% of wells (in Colorado) now use horizontal drilling 1. An acre-foot is approximately equal to 326,000 gallons. Typically, an acre-foot is enough water for 2-3 households for a year.! 

## What is the total amount used annually for fracking ? ! 

## How does this compare to other uses of water in Colorado?

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## WHAT DOES THIS MEAN TO COLORADO’S LIMITED WATER RESOURCES?8 

# STATEWIDE FRACKING WATER USE

" 

## Future trends are difficult to predict Source: COGCC 2013 

## Consider the order of magnitude

Actual

# Colorado Water Diversions

! 

## Total annually (all uses) = 16,400,000 ac-ft " 

## Agriculture = 14,000,000 ac-ft " 

## Municipal and Industrial = 1,200,000 ac-ft " 

## All others combined = 1,200,000 ac-ft " 

## Hydraulic fracturing ! 14,000 ac-ft

! 

## diversions, not consumption

90 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000

Total Agriculture Municipal and Industrial Total All OthersAcre-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 1,400,000Acre-Feet Amount of Water Currently Diverted Annually, Breakdown of “All Others”-Type Uses

# HYDRAULIC FRACTURING Water Sources

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# DIVISION OF WATER RESOURCES' PURVIEW ON WATER SOURCES

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# Potential sources for well construction ! 

# Discussion of nontributary ground water ! 

# Discussion of produced water

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# Potential sources for well construction ! 

# Discussion of nontributary ground water ! 

# Discussion of produced water DIVISION OF WATER RESOURCES' PURVIEW ON WATER SOURCES

# POTENTIAL SOURCES

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### Water must be legally allowed " Leased or purchased irrigation water (surface water)
# Must be changed, public process " Municipal lease/purchase (industrial uses)
# Raw or treated water # Effluent " New diversion, in priority " Tributary ground water (requires augmentation) " Denver Basin nontributary ground water " Other nontributary water " Produced water " Recycled

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# Potential sources for well construction ! 

# Discussion of nontributary ground water ! 

# Discussion of produced water DIVISION OF WATER RESOURCES' PURVIEW ON WATER SOURCES

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# Nontributary ground water " 

## Land ownership/water rights " 

## Withdrawal allocation 

# DIVISION OF WATER RESOURCES' PURVIEW ON WATER SOURCES

### DENVER BASIN GROUND WATER, OUTSIDE DESIGNATED GROUND WATER BASINS

Water user wishes to withdraw nontributary Denver Basin ground water. Does the water user own the subject land? Water user submits a well permit application to the Division of Water Resources. Water user acquires landowner’s written consent. Water user applies to the water court to adjudicate the ground water underlying the subject land. The water user obtains a final court decree. Yes

No

Division of Water Resources evaluates the well permit application: Ensure landownership or proper consent Review source and amount requested Determine amount of water available if no decree Consider provisions of decree or

Division of Water Resources issues a well permit. The well must be constructed on the subject land.

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# Potential sources for well construction ! 

# Discussion of nontributary water ! 

# Discussion of produced water DIVISION OF WATER RESOURCES' PURVIEW ON WATER SOURCES! 

## Energy production in Colorado meets ! 

## Hydrogeology, which creates ! 

## A water rights issue, requiring a ! 

## Difficult regulatory obligation.

! 

## The law provides for some discernment in administration ! 

## These conditions led to a legislative effort allowing ! 

## Efficient regulation 

# Produced Water: A Discussion of Quantitative Impact to Water Rights

# Geologic Perspective!"#$%

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8999: 899: !"#$$*;,<=/1>%. 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 well permits from State Engineer " 

### If tributary, must replace injurious out-of-priority stream depletions ! 

## Non-Coal bed methane wells that produce water " 

### Permit is dependent on subsequent use " 

### If tributary, must replace injurious out-of-priority stream depletions 

# WHAT DID VANCE V. WOLFE FIND?! 

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

## Potential for State Engineer to curtail 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 

# WHAT DOES VANCE V. WOLFE MEAN?

# 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 " Identify methodologies, assumptions, accepted values, definitions, etc. " Consider proposals for nontributary determinations for formations that have, or will have oil and gas production 

## HB 09-1303

## WHY THE FOCUS ON NONTRIBUTARY GROUND WATER?

## Tributary ground water
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### All ground water is presumed tributary to natural surface streams (Colorado case law) ! 

### Withdrawal of tributary ground water impacts the surface streams and, therefore, senior water rights on the surface streams ! 

### That impact, in an over-appropriated stream system is presumed to cause injury (Colorado case law) 

## TRIBUTARY VERSUS NONTRIBUTARY GROUND WATER

## Nontributary ground water
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### Some ground water is so isolated from surface water that the impact is minimal. ! 

### Colorado statute acknowledges this type of ground water with the term “ nontributary ” and states a quantitative standard. 

## TRIBUTARY VERSUS NONTRIBUTARY GROUND WATER

### 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)

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### This necessarily limits the amount that can be withdrawn ! 

### This necessarily limits the duration 

## PRODUCED NONTRIBUTARY GROUND WATER LAW

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

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

## No administration under the prior appropriation system

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### No substitute water supply plan or augmentation plan required (we’ll discuss this further later) 

## PRODUCED NONTRIBUTARY GROUND WATER LAW

# 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

Non-tributary Tributary

# Well Permit Requirements Water Administration RequirementsBeneficial Use ? Tributary Nontributary

CBM Permit? Yes Permit? Yes Replace? Yes Replace? No
Non-CBM Permit? Depends Permit? Depends Replace? Yes Replace? No 

## WELL PERMIT AND ADMINISTRATION REQUIREMENTS

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## Sources: " Numerous " Various types " Not straightforward # Colorado’s system of water rights 

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## Nontributary ground water (shallow) " Landownership requirements " Statutory allocation approach 

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## Produced water " Viable source " Must be accounted for (tributary or nontributary?) " Permitting and replacement requirements 

## CONCLUSIONS