2023 Colorado Revised Statutes › Title 37 - WATER AND IRRIGATION (§§ 37-1-101 — 37-99-103) › WATER RIGHTS AND IRRIGATION (§§ 37-80-101 — 37-93-101) › UNDERGROUND WATER (§§ 37-90-101 — 37-91-113) › Article 90.5 - GEOTHERMAL RESOURCES (§§ 37-90.5-101 — 37-90.5-111) › Section 37-90.5-106 - Regulation of geothermal resource operations - reinjection - fees - rules

(1)
(a)
(I)
The state engineer has the exclusive authority to regulate shallow geothermal operations and may adopt rules that regulate shallow geothermal operations.
(II)
Prior to constructing a test bore, monitoring well, or production well or reworking an existing well associated with shallow geothermal operations, an operations permit must be obtained from the state engineer.
(III)
The state engineer may adopt rules for the assessment of reasonable fees for the processing and issuance of a permit pursuant to subsection (1)(a)(II) of this section.
(b)
(I)
The commission has the exclusive authority to regulate deep geothermal operations and may adopt rules that regulate deep geothermal operations.
(II)
Prior to constructing a well associated with deep geothermal operations, the owner or operator of the well shall obtain an operations permit from the commission.
(III)
In issuing an operations permit pursuant to subsection (1)(b)(II) of this section, the commission may allow for the use of groundwater as part of nonconsumptive geothermal operations as a material medium for allocated geothermal resources that have been determined to be nontributary pursuant to section
37-90.5-107 (1)(b)
.
(IV)
The commission may adopt rules for the assessment of reasonable fees for the processing and issuance of a permit pursuant to subsection (1)(b)(II) of this section.
(2)
(a)
In exercising its regulatory authority pursuant to subsection (1)(b) of this section, the commission shall adopt rules that:
(I)
Protect public health, safety, and welfare, including the protection of the environment and wildlife resources; and
(II)
Avoid, minimize, or mitigate adverse impacts on disproportionately impacted communities.
(b)
(I)
The commission shall not issue an operations permit pursuant to subsection (1)(b)(II) of this section unless the applicant provides evidence to the commission that:
(A)
The applicant has filed an application with the local government with jurisdiction to approve the siting of the proposed deep geothermal operations, including the local government's disposition of the application; or
(B)
The local government with jurisdiction to approve the siting of the proposed deep geothermal operations does not regulate the siting of deep geothermal operations.
(II)
Upon request by a local government, the commission shall provide technical support to the local government concerning the implementation of the commission's rules pursuant to this section or the implementation by the local government of the commission's rules.
(3)
Where the maintenance of underground pressures, the prevention of subsidence, or the disposal of brines is necessary, reinjection of geothermal fluid may be required by the state engineer or the commission.
(4)
The commission shall transfer all fees collected for permits issued by the commission pursuant to subsection (1)(b)(IV) of this section to the state treasurer, who shall credit the fees to the energy and carbon management cash fund created in section
34-60-122 (5)
.
(5)
Notwithstanding any provision of this section to the contrary, nothing in this section affects the ownership, administration, or determination of water rights or rights to nontributary groundwater.
(6)
(a)
On and after July 1, 2023, except as set forth in subsection (6)(b)(II) of this section, the commission is responsible for administering and enforcing any permits issued by the state engineer pursuant to this section that cover deep geothermal operations.
(b)
The powers, duties, functions, and obligations concerning permits issued by the state engineer pursuant to this section that cover deep geothermal operations are transferred, effective July 1, 2023, to the commission. The state engineer retains any powers, duties, functions, and obligations necessary to issue, administer, and enforce any permits that cover:
(I)
Shallow geothermal operations; and
(II)
The use of geothermal fluid in deep geothermal operations pursuant to section
37-90.5-107
, except for nonconsumptive geothermal operations.
(c)
The rules of the state engineer pertaining to the powers, duties, functions, and obligations transferred to the commission pursuant to subsection (6)(b) of this section continue in effect and apply to the commission until the rules are replaced by rules adopted by the commission pursuant to subsection (1)(b)(I) of this section.
(d)
The commission and the state engineer shall enter into memoranda of understanding, interagency agreements, or both, as appropriate, to provide for the timely transfer of the powers, duties, functions, and obligations transferred to the commission pursuant to subsection (6)(b) of this section.
Amended by 2023 Ch. 235,§ 8, eff. 7/1/2023.
L. 83: Entire article added, p. 1421, § 1, effective June 10. L. 2003: (1) amended, p. 47, § 7, effective (see editor's note).
(1) Section 10 of chapter 7, Session Laws of Colorado 2003, provides for an effective date of March 1, 2003; however, the Governor did not sign the act until March 5, 2003.
(2) Subsection (1)(a)(II) provided for the repeal of subsection (1)(a), effective July 1, 2006. (See L. 2003, p. 47 .)
For the legislative declaration contained in the 2003 act amending subsection (1), see section 1 of chapter 7, Session Laws of Colorado 2003.