First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REREVISED
This Version Includes All Amendments
Adopted in the Second House
LLS NO. 25-0701.01 Richard Sweetman x4333
HOUSE BILL 25-1165
House Committees Senate Committees
Energy & Environment Transportation & Energy
A BILL FOR AN ACT
C
ONCERNING THE MANAGEMENT OF UNDERGROUND ENERGY101
RESOURCES.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill creates the geologic storage stewardship enterprise
(enterprise) in the department of natural resources (department) for the
purpose of:
! Imposing and determining the amount of annual
stewardship fees;
! Funding the long-term stewardship of geologic storage
SENATE
3rd Reading Unamended
April 4, 2025
SENATE
Amended 2nd Reading
April 3, 2025
HOUSE
3rd Reading Unamended
March 14, 2025
HOUSE
Amended 2nd Reading
March 13, 2025
HOUSE SPONSORSHIP
Paschal and Soper, Bird, Duran, Lindsay, McCormick, Titone
SENATE SPONSORSHIP
Simpson and Kipp, Cutter, Exum, Mullica, Snyder, Wallace, Winter F.
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. facilities in the state;
! Funding the plugging, abandoning, reclaiming, and
remediating of orphaned geologic storage facilities in the
state; and
! Ensuring that costs associated with long-term stewardship
of geologic storage facilities are borne by geologic storage
operators in the form of stewardship fees.
The bill creates the geologic storage stewardship enterprise board
(enterprise board) to administer the enterprise.
The bill requires each geologic storage operator to pay an annual
stewardship fee for each ton of injection carbon dioxide that the geologic
storage operator injects in the state. The energy and carbon management
commission (commission) collects the stewardship fee on the enterprise's
behalf. All money collected as stewardship fees is credited to the geologic
storage stewardship enterprise cash fund, which is created in the bill.
Money in the geologic storage stewardship enterprise cash fund is
continuously appropriated to the enterprise.
The enterprise and the commission may each adopt rules to
implement the bill.
Upon the commission's approval of a site closure:
! Ownership of the injection carbon dioxide, and ownership
of any remaining facilities used to inject or store injection
carbon dioxide, transfer to the state without payment of
additional compensation;
! Except in specified circumstances, the geologic storage
operator is released from all regulatory liability associated
with the continued storage of the injection carbon dioxide
and the long-term stewardship of the associated geologic
storage facility; and
! The enterprise undertakes long-term stewardship of the
injection carbon dioxide and any associated geologic
storage facility.
The bill makes several updates to laws concerning the
administration of underground geothermal resources, including:
! Clarifying that "nontributary groundwater" does not include
"designated groundwater", as these terms are defined in
current law;
! Exempting certain geothermal operations from needing a
well permit from the state engineer;
! Requiring the state engineer to notify the operator of a prior
geothermal operation of an application for a proposed well,
and allowing the operator the opportunity to request a
hearing if the application causes concern for material injury
to the prior geothermal operation;
! Establishing that the authority to regulate shallow
1165
-2- geothermal operations is shared by the state engineer and
the state board of examiners;
! Renaming the state board of examiners of water well
construction and pump installation contractors as the "state
board of examiners of water well and ground heat
exchanger contractors" (state board of examiners); and
! Regulating ground heat exchanger contractors in the same
manner that currently exists for water well construction
contractors and pump installation contractors.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
finds that:3
(a) Colorado has established statewide emission targets to reduce4
greenhouse gas emissions based on the levels that existed in 2005,5
including a 26% reduction by 2025, a 50% reduction by 2030,
a 65%6
reduction by 2035, a 75% reduction by 2040, a 90% reduction by 2045,7
and net-zero emissions by 2050;8
(b) Meeting these goals will involve multiple, simultaneously9
pursued strategies, as well as a streamlined administrative structure; 10
(c) Carbon capture and storage, or "CCS", has been identified as11
an essential tool for hard-to-decarbonize sectors;12
(d) The geologic sequestration of carbon dioxide, or "CO2", in the13
subsurface is necessary to reach net-zero emission targets globally and14
may be equally critical to Colorado's own climate targets;15
(e) Through CCS, stored CO2 remains in the subsurface16
permanently. These CO2 storage projects require an extended17
post-injection site care phase, typically lasting for decades after injection18
has ceased, in which the injected CO2 is monitored to thoroughly19
demonstrate that the injected CO2 is stable and will not pose a risk to20
1165-3- underground sources of drinking water.1
(f) When a storage operator ceases to exist, for example, through2
bankruptcy, current law does not provide for monitoring and stewardship3
of the the storage facility;4
(g) These are some of the reasons why the Colorado carbon5
management roadmap, the energy and carbon management commission's6
CCS study, and Colorado's carbon capture sequestration and utilization7
task force all called for the state to create a process for long-term8
stewardship of CO2 storage sites whereby CCS storage sites can be9
monitored and maintained for decades after site closure;10
(h) Establishing an enterprise funded by a fee imposed on11
geologic storage operators to provide the necessary resources for the state12
to conduct long-term monitoring and stewardship activities protects13
Colorado communities from future impacts from storage facilities,14
supports our state's climate goals, relieves state taxpayers of a potential15
burden to manage these sites, and provides certainty to operators;16
(i) Geothermal energy also provides many opportunities to support17
the state's transition to a low-carbon economy by offering more reliable18
energy service and predictable, affordable costs while improving local air19
quality and offering new economic growth opportunities;20
(j) The energy and carbon management commission and the21
division of water resources are responsible for regulating geothermal22
development in Colorado;23
(k) In 2023, in Senate Bill 23-285, the general assembly directed24
the energy and carbon management commission and the division of water25
resources to study the state regulatory structure for geothermal resources26
and determine if additional changes are necessary;27
1165
-4- (l) In support of the state's climate and energy goals, the1
department of natural resources has identified statutory changes that will2
clarify and streamline Colorado's regulatory framework while facilitating3
responsible development of geothermal resources in Colorado; and4
(m) These recommendations will minimize costs, expedite5
permitting, reduce risks to industry and the public, and clarify regulatory6
authority across state agencies.7
(2) The general assembly therefore declares that it is important8
that Colorado drive and oversee the deployment of CCS and geothermal9
technologies in a manner that encourages protective growth and10
adaptation of infrastructure and improved coordination for permitting11
authorities.12
SECTION 2. In Colorado Revised Statutes, amend 34-60-101 as13
follows:14
34-60-101. Short title. THE SHORT TITLE OF this article shall be15
known and may be cited as ARTICLE 60 IS the "Oil and Gas Conservation16
"ENERGY AND CARBON MANAGEMENT Act".17
SECTION 3. In Colorado Revised Statutes, 34-60-103, add18
(40.5) as follows:19
34-60-103. Definitions - rules. As used in this article 60, unless20
the context otherwise requires:21
(40.5) (a) "S
ITE CLOSURE" MEANS THAT AN OPERATOR OF A
22
GEOLOGIC STORAGE FACILITY HAS DEMONSTRATED , IN ACCORDANCE WITH23
ALL RULES OF THE COMMISSION, THAT:24
(I) G
EOLOGIC STORAGE OPERATIONS AT THE FACILITY NO LONGER
25
POSE A DANGER TO PUBLIC HEALTH , SAFETY, OR WELFARE OR TO THE26
ENVIRONMENT, INCLUDING UNDERGROUND SOURCES OF DRINKING WATER27
1165
-5- AND WILDLIFE RESOURCES; AND1
(II) T
HE OPERATOR HAS RECEIVED APPROVAL FROM THE
2
COMMISSION FOR THE FACILITY TO BE CLOSED .3
(b) "S
ITE CLOSURE" REQUIRES THAT:
4
(I) A
LL WELLS ARE PLUGGED, EQUIPMENT IS REMOVED, AND LAND
5
IS RECLAIMED, UNLESS OTHERWISE REQUIRED FOR LONG -TERM6
STEWARDSHIP AND MONITORING OR AS DETERMINED BY THE DIRECTOR OF7
THE COMMISSION; AND8
(II) M
ONITORING EQUIPMENT IS INSTALLED IF REQUIRED BY THE
9
POST-INJECTION SITE CARE AND SITE CLOSURE PLAN OR BY RULES OF THE10
COMMISSION.11
SECTION 4. In Colorado Revised Statutes, add 34-60-144 as12
follows:13
34-60-144. Geologic storage stewardship enterprise - created14
- legislative declaration - powers and duties of enterprise - geologic15
storage stewardship enterprise board - membership and duties of16
enterprise board - stewardship fees - geologic storage stewardship17
enterprise cash fund - definitions - rules - repeal. (1) Legislative18
declaration. (a) T
HE GENERAL ASSEMBLY FINDS THAT :19
(I) G
EOLOGIC STORAGE OPERATIONS ARE AN IMPORTANT TOOL TO20
HELP THE STATE MEET ITS GREENHOUSE GAS EMISSION REDUCTION GOALS ;21
(II) G
EOLOGIC STORAGE OPERATIONS INVOLVE PERMANENTLY22
STORING INJECTION CARBON DIOXIDE UNDERGROUND ;23
(III) I
T IS PRUDENT TO MONITOR AND OTHERWISE CONDUCT24
LONG-TERM STEWARDSHIP OF INJECTION CARBON DIOXIDE TO25
DEMONSTRATE THAT THE INJECTION CARBON DIOXIDE IS STABLE AND WILL26
NOT POSE A RISK TO UNDERGROUND SOURCES OF DRINKING WATER ;27
1165
-6- (IV) GEOLOGIC STORAGE OPERATIONS PRESENT THE STATE WITH1
RISKS OF ORPHANED GEOLOGIC STORAGE FACILITIES ;2
(V) I
T IS NECESSARY, APPROPRIATE, AND IN THE BEST INTEREST OF3
GEOLOGIC STORAGE OPERATORS FOR THE STATE TO CONDUCT LONG -TERM4
STEWARDSHIP; AND5
(VI) I
T IS NECESSARY, APPROPRIATE, AND IN THE BEST INTEREST6
OF GEOLOGIC STORAGE OPERATORS FOR THE STATE TO ENSURE THAT7
ORPHANED GEOLOGIC STORAGE FACILITIES ARE PLUGGED , ABANDONED,8
RECLAIMED, AND REMEDIATED, IF NECESSARY, IN A TIMELY MANNER IF9
AVAILABLE FINANCIAL ASSURANCE IS INSUFFICIENT .10
(b) T
HE GENERAL ASSEMBLY ALSO FINDS THAT :11
(I) C
URRENT LAW IN JANUARY 2025 PROVIDES NO MECHANISM TO12
PAY FOR THE STATE'S LONG-TERM STEWARDSHIP OF GEOLOGIC STORAGE13
FACILITIES; AND14
(II) C
URRENT LAW IN JANUARY 2025 AUTHORIZES THE15
COMMISSION TO REQUIRE GEOLOGIC STORAGE OPERATORS TO MAINTAIN16
AND DEMONSTRATE CERTAIN FINANCIAL ASSURANCES TO PLUG , ABANDON,17
RECLAIM, AND REMEDIATE GEOLOGIC STORAGE FACILITIES .18
(c) N
OW, THEREFORE, THE GENERAL ASSEMBLY DECLARES THAT :19
(I) I
T IS IN THE PUBLIC INTEREST TO CREATE AN ENTERPRISE20
WITHIN THE DEPARTMENT THAT IS COMMITTED TO FUNDING LONG -TERM21
STEWARDSHIP OF INJECTION CARBON DIOXIDE AND , IF NECESSARY, THE22
PLUGGING, ABANDONMENT , RECLAIMING, AND REMEDIATING OF23
ORPHANED GEOLOGIC STORAGE FACILITIES ;24
(II) T
HE ACTIVITIES OF THE ENTERPRISE SHALL BE FUNDED BY25
REVENUE GENERATED FROM STEWARDSHIP FEES PAID BY OPERATORS OF26
CLASS VI INJECTION WELLS IN COLORADO;27
1165
-7- (III) IT IS APPROPRIATE THAT GEOLOGIC STORAGE OPERATORS1
SHOULD PAY SUCH STEWARDSHIP FEES, AS GEOLOGIC STORAGE OPERATORS2
ARE THE DIRECT BENEFICIARIES OF THE SERVICES PROVIDED BY THE3
ENTERPRISE, WHICH ARE LONG -TERM STEWARDSHIP AND , WHERE4
NECESSARY, THE PLUGGING , ABANDONMENT , RECLAIMING, AND5
REMEDIATING OF ORPHANED GEOLOGIC STORAGE FACILITIES ;6
(IV) G
EOLOGIC STORAGE OPERATORS BENEFIT FROM LONG -TERM7
STEWARDSHIP BECAUSE SERVICES , SUCH AS LONG-TERM MONITORING AND8
SITE MANAGEMENT, ALLOW GEOLOGIC STORAGE OPERATORS TO OPERATE9
CLASS VI INJECTION WELLS IN COLORADO BY ADDRESSING THE RISKS10
PRESENTED BY THE PERMANENT STORAGE OF INJECTION CARBON DIOXIDE11
WITHOUT REQUIRING GEOLOGIC STORAGE OPERATORS TO CONDUCT12
LONG-TERM STEWARDSHIP;13
(V) C
ONSISTENT WITH THE DETERMINATION OF THE COLORADO14
SUPREME COURT IN NICHOLL V. E-470 PUBLIC HIGHWAY AUTHORITY, 89615
P.2d 859
(COLO. 1995), THAT THE POWER TO IMPOSE TAXES IS16
INCONSISTENT WITH ENTERPRISE STATUS UNDER SECTION 20 OF ARTICLE17
X
OF THE STATE CONSTITUTION, THE GENERAL ASSEMBLY CONCLUDES18
THAT THE STEWARDSHIP FEE IS A FEE, NOT A TAX, AND THE ENTERPRISE19
OPERATES AS A BUSINESS BECAUSE THE STEWARDSHIP FEE IS IMPOSED FOR20
THE FOLLOWING SPECIFIC BUSINESS PURPOSES :21
(A) T
HE LONG-TERM STEWARDSHIP SERVICES AUTHORIZED BY THIS22
SECTION PROVIDE A BENEFIT TO GEOLOGIC STORAGE OPERATORS BY23
ALLOWING A GEOLOGIC STORAGE OPERATOR TO BE RELEASED OF24
REGULATORY AND LONG -TERM STEWARDSHIP RESPONSIBILITIES25
ASSOCIATED WITH INJECTION CARBON DIOXIDE AFTER THE COMMISSION26
APPROVES SITE CLOSURE OF A GEOLOGIC STORAGE FACILITY ; AND27
1165
-8- (B) THE PLUGGING, ABANDONMENT , RECLAIMING, AND1
REMEDIATING SERVICES AUTHORIZED BY THIS SECTION PROVIDE A BENEFIT2
TO GEOLOGIC STORAGE OPERATORS BY ALLOWING THEM TO OPERATE3
CLASS VI INJECTION WELLS IN COLORADO DESPITE THE RISK THAT4
AVAILABLE FINANCIAL ASSURANCE MAY BE INSUFFICIENT TO PROTECT THE5
PUBLIC FROM THE COSTS OF GEOLOGIC STORAGE FACILITIES BEING6
ORPHANED; AND7
(VI) S
O LONG AS THE ENTERPRISE QUALIFIES AS AN ENTERPRISE8
FOR PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION,9
THE REVENUE FROM THE STEWARDSHIP FEE ADMINISTERED BY THE10
ENTERPRISE AND COLLECTED BY THE COMMISSION IS NOT STATE FISCAL11
YEAR SPENDING, AS DEFINED IN SECTION 24-77-102 (17), OR STATE12
REVENUES, AS DEFINED IN SECTION 24-77-103.6 (6)(c), AND DOES NOT13
COUNT AGAINST EITHER THE STATE FISCAL YEAR SPENDING LIMIT IMPOSED14
BY SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION OR THE EXCESS15
STATE REVENUES CAP, AS DEFINED IN SECTION 24-77-103.6 (6)(b)(I)(G).16
(2) Definitions. A
S USED IN THIS SECTION, UNLESS THE CONTEXT17
OTHERWISE REQUIRES:18
(a) "D
EPARTMENT" MEANS THE DEPARTMENT OF NATURAL19
RESOURCES.20
(b) "E
NTERPRISE" MEANS THE GEOLOGIC STORAGE STEWARDSHIP21
ENTERPRISE CREATED IN SUBSECTION (3) OF THIS SECTION.22
(c) "E
NTERPRISE BOARD" MEANS THE GEOLOGIC STORAGE23
STEWARDSHIP ENTERPRISE BOARD CREATED IN SUBSECTION
(4) OF THIS24
SECTION.25
(d) "G
EOLOGIC STORAGE STEWARDSHIP ENTERPRISE CASH FUND "26
MEANS THE GEOLOGIC STORAGE STEWARDSHIP ENTERPRISE CASH FUND27
1165
-9- CREATED IN SUBSECTION (7) OF THIS SECTION.1
(e) "L
ONG-TERM STEWARDSHIP " MEANS MONITORING AND2
INTEGRITY MAINTENANCE OF GEOLOGIC STORAGE FACILITIES AFTER THE3
COMMISSION APPROVES A SITE CLOSURE , AS WELL AS ANY ASSOCIATED4
ACTION NECESSARY TO PROTECT PUBLIC HEALTH , SAFETY, WELFARE, THE5
ENVIRONMENT, OR WILDLIFE RESOURCES.6
(f) "O
RPHANED GEOLOGIC STORAGE FACILITY " MEANS A GEOLOGIC7
STORAGE FACILITY IN THE STATE FOR WHICH NO OWNER OR OPERATOR CAN8
BE FOUND OR FOR WHICH THE OWNER OR OPERATOR IS UNWILLING OR9
UNABLE TO PAY THE COSTS OF PLUGGING , ABANDONING, REMEDIATING,10
RECLAIMING, OR OTHER ACTION NECESSARY TO OBTAIN SITE CLOSURE11
PURSUANT TO COMMISSION RULES .12
(g) "S
TEWARDSHIP FEE" MEANS THE STEWARDSHIP FEE13
AUTHORIZED AND IMPOSED PURSUANT TO SUBSECTION (6) OF THIS14
SECTION.15
(3) Enterprise created. (a) T
HE GEOLOGIC STORAGE16
STEWARDSHIP ENTERPRISE IS CREATED IN THE DEPARTMENT , IS A TYPE 117
ENTITY, AS DEFINED IN SECTION 24-1-105, AND EXERCISES ITS POWERS18
AND PERFORMS ITS DUTIES AND FUNCTIONS UNDER THE DEPARTMENT . THE19
ENTERPRISE IS CREATED FOR THE PURPOSE OF :20
(I)
DETERMINING THE AMOUNT OF STEWARDSHIP FEES ;21
(II) F
UNDING THE LONG -TERM STEWARDSHIP OF GEOLOGIC22
STORAGE FACILITIES IN THE STATE;23
(III) F
UNDING THE PLUGGING, ABANDONMENT, RECLAIMING,
AND,24
AS NECESSARY, REMEDIATING OF ORPHANED GEOLOGIC STORAGE25
FACILITIES IN THE STATE IF THE COMMISSION, AFTER NOTICE AND A26
HEARING, DETERMINES THAT AVAILABLE FINANCIAL ASSURANCE IS27
1165
-10- INSUFFICIENT; AND1
(IV) E
NSURING THAT COSTS ASSOCIATED WITH LONG -TERM2
STEWARDSHIP OF GEOLOGIC STORAGE FACILITIES ARE BORNE BY GEOLOGIC3
STORAGE OPERATORS IN THE FORM OF STEWARDSHIP FEES .4
(b) T
HE ENTERPRISE BOARD , IN CONSULTATION WITH THE5
COMMISSION, SHALL ADMINISTER THE ENTERPRISE IN ACCORDANCE WITH6
THIS SECTION.7
(c) (I) T
HE ENTERPRISE CONSTITUTES AN ENTERPRISE FOR8
PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION SO9
LONG AS IT RETAINS THE AUTHORITY TO ISSUE REVENUE BONDS AND10
RECEIVES LESS THAN TEN PERCENT OF ITS TOTAL REVENUES IN GRANTS , AS11
DEFINED IN SECTION 24-77-102 (7), FROM ALL COLORADO STATE AND12
LOCAL GOVERNMENTS COMBINED . SO LONG AS IT CONSTITUTES AN13
ENTERPRISE, THE ENTERPRISE IS NOT SUBJECT TO SECTION 20 OF ARTICLE14
X
OF THE STATE CONSTITUTION.15
(II) T
HE ENTERPRISE IS AUTHORIZED TO ISSUE REVENUE BONDS FOR16
THE EXPENSES OF THE ENTERPRISE , SECURED BY REVENUE OF THE17
ENTERPRISE.18
(4) Enterprise board created - membership - duties - repeal.19
(a) (I) T
HE GEOLOGIC STORAGE STEWARDSHIP ENTERPRISE BOARD IS20
CREATED TO ADMINISTER THE ENTERPRISE . THE ENTERPRISE BOARD21
INCLUDES THE FOLLOWING FIVE MEMBERS :22
(A) T
HE CHAIR OF THE COMMISSION;23
(B) T
HE DIRECTOR OF THE COMMISSION OR THE DIRECTOR 'S24
DESIGNEE;25
(C) A
N INDIVIDUAL WITH SUBSTANTIAL EXPERIENCE IN GEOLOGIC26
STORAGE, PREFERABLY WITH AN ACTUARIAL SCIENCE BACKGROUND AS
27
1165
-11- RELATED TO EVALUATING THE LONG -TERM RISK OF GEOLOGIC STORAGE1
FACILITIES, TO BE APPOINTED BY THE GOVERNOR AND CONFIRMED BY THE2
SENATE;3
(D) A
N INDIVIDUAL WITH FORMAL TRAINING OR SUBSTANTIAL4
EXPERIENCE IN ENVIRONMENTAL PROTECTION , PUBLIC HEALTH, OR OTHER5
RELEVANT FIELDS, TO BE APPOINTED BY THE GOVERNOR AND CONFIRMED6
BY THE SENATE; AND7
(E) A
N INDIVIDUAL WITH FORMAL TRAINING OR SUBSTANTIAL8
EXPERIENCE IN WELLBORE MONITORING , LONG-TERM STEWARDSHIP, OR9
OTHER RELEVANT TECHNICAL FIELDS, TO BE APPOINTED BY THE GOVERNOR10
AND CONFIRMED BY THE SENATE .11
(II) (A) T
HE GOVERNOR SHALL APPOINT THE INITIAL MEMBERS OF12
THE ENTERPRISE BOARD PURSUANT TO SUBSECTIONS (4)(a)(I)(C),13
(4)(a)(I)(D),
AND (4)(a)(I)(E) OF THIS SECTION ON OR BEFORE SEPTEMBER14
1,
2025.15
(B) T
HIS SUBSECTION (4)(a)(II) IS REPEALED, EFFECTIVE JULY 1,16
2026.17
(III) T
HE MEMBERS OF THE ENTERPRISE BOARD DESCRIBED IN18
SUBSECTIONS (4)(a)(I)(C), (4)(a)(I)(D), AND (4)(a)(I)(E) OF THIS SECTION19
SHALL EACH SERVE TERMS OF THREE YEARS ; EXCEPT THAT THE INITIAL20
TERM OF THE MEMBER APPOINTED PURSUANT TO SUBSECTION (4)(a)(I)(C)21
OF THIS SECTION IS ONE YEAR, AND THE INITIAL TERM OF THE MEMBER22
APPOINTED PURSUANT TO SUBSECTION (4)(a)(I)(D) OF THIS SECTION IS23
TWO YEARS. IN THE EVENT OF A VACANCY, THE GOVERNOR MAY APPOINT24
AN INDIVIDUAL TO COMPLETE THE TERM OF THE MEMBER WHOSE SEAT HAS25
BECOME VACANT.26
(IV) A
N INDIVIDUAL MAY BE APPOINTED TO SERVE AS A MEMBER27
1165
-12- OF THE ENTERPRISE BOARD PURSUANT TO SUBSECTION (4)(a)(I)(C),1
(4)(a)(I)(D),
OR (4)(a)(I)(E) OF THIS SECTION FOR AN UNLIMITED NUMBER2
OF TERMS.3
(V) E
NTERPRISE BOARD MEMBERS SERVING PURSUANT TO4
SUBSECTIONS (4)(a)(I)(C), (4)(a)(I)(D), AND (4)(a)(I)(E) OF THIS SECTION5
MAY RECEIVE COMPENSATION FROM THE ENTERPRISE ON A PER DIEM BASIS6
FOR REASONABLE EXPENSES ACTUALLY INCURRED IN THE PERFORMANCE7
OF DUTIES REQUIRED OF ENTERPRISE BOARD MEMBERS UNDER THIS8
SECTION.9
(VI) T
HE GOVERNOR SHALL SELECT A MEMBER OF THE ENTERPRISE10
BOARD TO SERVE AS CHAIR OF THE ENTERPRISE BOARD .11
(b) I
N ADDITION TO ADMINISTERING THE ENTERPRISE , THE12
ENTERPRISE BOARD SHALL:13
(I) S
ET THE AMOUNT OF THE STEWARDSHIP FEE AT AN AMOUNT14
THAT IS REASONABLY RELATED TO THE OVERALL COST OF THE LONG -TERM15
STEWARDSHIP SERVICES PROVIDED BY THE ENTERPRISE . THE ENTERPRISE16
BOARD SHALL SET THE INITIAL AMOUNT WITHIN SIX MONTHS AFTER THE17
ENTERPRISE BOARD IS CONFIRMED.18
(II) A
S FREQUENTLY AS THE ENTERPRISE BOARD DETERMINES19
NECESSARY, CONSIDER WHETHER THE AMOUNT OF THE STEWARDSHIP FEE20
SHOULD BE INCREASED OR REDUCED , BASED ON:21
(A) T
HE OVERALL COST OF THE ENTERPRISE 'S LONG-TERM22
STEWARDSHIP SERVICES, INCLUDING REASONABLY ANTICIPATED FUTURE23
EXPENDITURES FROM THE GEOLOGIC STORAGE STEWARDSHIP ENTERPRISE24
CASH FUND; AND25
(B) T
HE NEED TO COMPLY WITH SUBSECTION (7)(b) OF THIS26
SECTION;27
1165
-13- (III) CONSIDER THE IMPORTANCE OF FINANCIAL1
PREDICTABILITY FOR OPERATORS WHEN DETERMINING THE FREQUENCY OF2
CHANGES TO THE STEWARDSHIP FEE AMOUNT ;3
(IV) I
F THE ENTERPRISE BOARD DETERMINES THAT AN INCREASE4
OR REDUCTION OF THE STEWARDSHIP FEE AMOUNT IS WARRANTED , ADJUST5
THE STEWARDSHIP FEE AMOUNT TO AN AMOUNT THAT IS REASONABLY6
RELATED TO THE OVERALL COST OF THE LONG -TERM STEWARDSHIP7
SERVICES PROVIDED BY THE ENTERPRISE ; AND8
(V) A
DVISE THE COMMISSION OF THE OUTCOME OF THE9
ENTERPRISE BOARD'S DELIBERATIONS PURSUANT TO THIS SUBSECTION (4).10
(5) Powers and duties. I
N ADDITION TO ANY OTHER POWERS AND11
DUTIES SPECIFIED IN THIS SECTION, THE ENTERPRISE BOARD HAS THE12
FOLLOWING GENERAL POWERS AND DUTIES ON BEHALF OF THE13
ENTERPRISE:14
(a) T
O ADOPT PROCEDURES FOR CONDUCTING THE ENTERPRISE15
BOARD'S AFFAIRS;16
(b) T
O ACQUIRE, HOLD TITLE TO, AND DISPOSE OF REAL AND17
PERSONAL PROPERTY, INCLUDING OWNERSHIP OF INJECTION CARBON18
DIOXIDE UPON APPROVAL OF SITE CLOSURE OF AN ASSOCIATED GEOLOGIC19
STORAGE FACILITY BY THE COMMISSION ;20
(c) T
O EMPLOY AND SUPERVISE INDIVIDUALS , PROFESSIONAL21
CONSULTANTS, AND CONTRACTORS AS ARE NECESSARY IN THE ENTERPRISE22
BOARD'S JUDGMENT TO CARRY OUT ITS BUSINESS PURPOSES ;23
(d) T
O ENGAGE THE SERVICES OF CONTRACTORS , CONSULTANTS,24
AND THE ATTORNEY GENERAL 'S OFFICE FOR PROFESSIONAL AND25
TECHNICAL ASSISTANCE AND ADVICE AND TO SUPPLY OTHER SERVICES26
RELATED TO THE CONDUCT OF THE AFFAIRS OF THE ENTERPRISE. THE27
1165
-14- ENTERPRISE MAY CONTRACT WITH THE DEPARTMENT FOR THE PROVISION1
OF OFFICE SPACE AND ADMINISTRATIVE STAFF TO THE ENTERPRISE AT A2
FAIR MARKET RATE.3
(e) TO SEEK, ACCEPT, AND EXPEND GIFTS, GRANTS, DONATIONS, OR4
OTHER PAYMENTS FROM PRIVATE OR PUBLIC SOURCES FOR THE PURPOSES5
OF THIS SECTION, SO LONG AS THE TOTAL AMOUNT OF ALL GRANTS FROM6
COLORADO STATE AND LOCAL GOVERNMENTS RECEIVED IN ANY STATE7
FISCAL YEAR IS LESS THAN TEN PERCENT OF THE ENTERPRISE'S TOTAL8
ANNUAL REVENUE FOR THE STATE FISCAL YEAR. ALL MONEY RECEIVED AS9
GIFTS, GRANTS, AND DONATIONS SHALL BE CREDITED TO THE GEOLOGIC10
STORAGE STEWARDSHIP ENTERPRISE CASH FUND .11
(f) TO CREATE AND IMPOSE UPON GEOLOGIC STORAGE OPERATORS12
AN ADDITIONAL FEE TO ADDRESS PLUGGING, ABANDONING, RECLAIMING,13
AND REMEDIATING OF ORPHANED GEOLOGIC STORAGE FACILITIES, WHICH14
FEE IS IN AN AMOUNT THAT IS REAS ONABLY RELATED TO THE OVERALL15
COST OF PLUGGING, ABANDONING, RECLAIMING, AND REMEDIATING16
ORPHANED GEOLOGIC STORAGE FACILITIES, SO LONG AS THE ENTERPRISE17
BOARD FINDS THAT:18
(I) GEOLOGIC STORAGE OPERATIONS IN THE STATE ARE LIKELY TO19
CREATE ORPHANED GEOLOGIC STORAGE FACILITIES IN THE FUTURE ;20
(II) FINANCIAL ASSURANCE PROVIDED BY OPERATORS WILL BE21
INSUFFICIENT TO ADDRESS ORPHANED GEOLOGIC STORAGE FACILITIES ; AND22
(III) STEWARDSHIP FEES DEPOSITED INTO THE GEOLOGIC STORAGE23
STEWARDSHIP CASH FUND WILL BE INSUFFICIENT TO ADDRESS BOTH24
LONG-TERM STEWARDSHIP AND ORPHANED GEOLOGIC STORAGE25
FACILITIES;26
(g) TO HAVE AND EXERCISE ALL RIGHTS AND POWERS NECESSARY27
1165
-15- OR INCIDENTAL TO OR IMPLIED FROM THE SPECIFIC POWERS AND DUTIES1
GRANTED BY THIS SECTION; AND2
(h) TO PERFORM ALL ACTS NECESSARY TO ACCOMPLISH SITE3
CLOSURES PURSUANT TO COMMISSION RULES FOR ORPHANED GEOLOGIC4
STORAGE FACILITIES.5
(6) Stewardship fees - rules. (a) O
N OR BEFORE APRIL 30, 2026,6
AND ON OR BEFORE APRIL 30 EACH YEAR THEREAFTER, EACH GEOLOGIC7
STORAGE OPERATOR SHALL PAY A STEWARDSHIP FEE TO THE COMMISSION ,8
WHICH SHALL COLLECT THE STEWARDSHIP FEE ON THE ENTERPRISE 'S9
BEHALF, FOR EACH TON OF INJECTION CARBON DIOXIDE THAT THE10
GEOLOGIC STORAGE OPERATOR INJECTS IN THE STATE .11
(b) M
ONEY COLLECTED AS STEWARDSHIP FEES SHALL BE CREDITED12
TO THE GEOLOGIC STORAGE STEWARDSHIP ENTERPRISE CASH FUND .13
(c) T
HE MONEY COLLECTED BY THE COMMISSION FOR TRANSFER TO14
THE GEOLOGIC STORAGE STEWARDSHIP ENTERPRISE CASH FUND PURSUANT15
TO SUBSECTION (6)(b) OF THIS SECTION IS:16
(I) C
OLLECTED FOR THE ENTERPRISE;17
(II) C
USTODIAL MONEY INTENDED FOR THE ENTERPRISE AND HELD18
TEMPORARILY BY THE COMMISSION AND THE STATE TREASURER SOLELY19
FOR THE PURPOSE OF TRANSFERRING THE MONEY TO THE GEOLOGIC20
STORAGE STEWARDSHIP ENTERPRISE CASH FUND ; AND21
(III) B
ASED ON THE ENTERPRISE'S STATUS AS AN ENTERPRISE, NOT22
SUBJECT TO SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION AT23
ANY TIME DURING THE MONEY 'S COLLECTION, TRANSFER, AND USE.24
(d) T
HE COMMISSION MAY ADOPT RULES TO IMPLEMENT THIS25
SUBSECTION (6).26
(7) Geologic storage stewardship enterprise cash fund - repeal.27
1165
-16- (a) THE GEOLOGIC STORAGE STEWARDSHIP ENTERPRISE CASH FUND IS1
CREATED IN THE STATE TREASURY. THE GEOLOGIC STORAGE STEWARDSHIP2
ENTERPRISE CASH FUND CONSISTS OF:3
(I) M
ONEY RECEIVED AS STEWARDSHIP FEES ;4
(II) A
NY MONEY RECEIVED FROM THE ISSUANCE OF REVENUE5
BONDS, AS DESCRIBED IN SUBSECTION (3)(c)(II) OF THIS SECTION;
6
(III) ANY GIFTS, GRANTS, OR DONATIONS RECEIVED PURSUANT TO7
SUBSECTION (5)(e) OF THIS SECTION; AND8
(IV) ANY OTHER MONEY THAT THE GENERAL ASSEMBLY MAY9
APPROPRIATE OR TRANSFER TO THE GEOLOGIC STORAGE STEWARDSHIP10
ENTERPRISE CASH FUND.11
(b) (I) T
HE TOTAL AMOUNT OF MONEY CREDITED OR12
APPROPRIATED TO THE GEOLOGIC STORAGE STEWARDSHIP ENTERPRISE13
CASH FUND AS STEWARDSHIP FEES SHALL NOT EXCEED ONE HUNDRED14
MILLION DOLLARS IN THE FIRST FIVE YEARS OF THE ENTERPRISE 'S15
EXISTENCE.16
(II) T
HIS SUBSECTION (7)(b) IS REPEALED, EFFECTIVE JULY 1, 2031.17
(c) T
HE STATE TREASURER SHALL CREDIT ALL INTEREST AND18
INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE19
GEOLOGIC STORAGE STEWARDSHIP ENTERPRISE CASH FUND TO THE20
GEOLOGIC STORAGE STEWARDSHIP ENTERPRISE CASH FUND . ANY21
UNEXPENDED AND UNENCUMBERED MONEY REMAINING IN THE GEOLOGIC22
STORAGE STEWARDSHIP ENTERPRISE CASH FUND AT THE END OF A FISCAL23
YEAR REMAINS IN THE GEOLOGIC STORAGE STEWARDSHIP ENTERPRISE24
CASH FUND AND SHALL NOT BE CREDITED OR TRANSFERRED TO THE25
GENERAL FUND OR TO ANY OTHER FUND .26
(d) M
ONEY CREDITED TO THE GEOLOGIC STORAGE STEWARDSHIP27
1165
-17- ENTERPRISE CASH FUND IS CONTINUOUSLY APPROPRIATED TO THE1
ENTERPRISE AND SHALL BE EXPENDED TO PAY THE COSTS OF :2
(I) L
ONG-TERM STEWARDSHIP;3
(II) P
LUGGING,
ABANDONING, RECLAIMING, AND REMEDIATING4
SERVICES FOR ORPHANED GEOLOGIC STORAGE FACILITIES AT THE REQUEST5
OF THE DIRECTOR OF THE COMMISSION IF THE COMMISSION, AFTER NOTICE6
AND A HEARING, DETERMINES THAT AVAILABLE FINANCIAL ASSURANCE IS7
INSUFFICIENT; AND8
(III) T
HE ENTERPRISE'S REASONABLE AND NECESSARY OPERATING9
EXPENSES.10
(8) Rules. T
HE ENTERPRISE SHALL ADOPT RULES AS NECESSARY TO11
IMPLEMENT THIS SECTION . IN ADOPTING ANY RULES CONCERNING12
SUBSECTION (6) OF THIS SECTION, THE ENTERPRISE SHALL CONSULT WITH13
THE COMMISSION.14
(9) Governmental immunity. N
OTHING IN THIS SECTION15
CONSTITUTES A WAIVER, ABROGATION, OR LIMITATION OF GOVERNMENTAL16
IMMUNITY, AS DESCRIBED IN ARTICLE 10 OF TITLE 24. GEOLOGIC STORAGE17
FACILITIES, GEOLOGIC STORAGE LOCATIONS , GEOLOGIC STORAGE18
RESOURCES, INJECTION CARBON DIOXIDE, AND FACILITIES ASSOCIATED19
WITH GEOLOGIC STORAGE OPERATIONS ARE NOT GAS FACILITIES FOR THE20
PURPOSES OF SECTION 24-10-106 (1)(f) AND DO NOT CONSTITUTE ANY21
OTHER AREA OR FACILITY FOR WHICH SOVEREIGN IMMUNITY IS WAIVED22
PURSUANT TO SECTION 24-10-106 (1).23
SECTION 5.
In Colorado Revised Statutes, 34-60-106, amend24
(9)(c)(II) and (9)(c)(IV)(D); repeal (9)(c)(IV)(D.5) and (9)(e)(VI); and25
add (9.4) as follows:26
34-60-106. Additional powers of commission - fees - rules -27
1165
-18- definitions - repeal. (9) (c) (II) (A) The commission may issue and1
enforce permits for geologic storage operations and may regulate geologic2
storage operations after the commission makes the determination and3
holds the hearing set forth in subsection (9)(c)(I) of this section and the4
commission and the governor satisfy the requirements set forth in5
subsection (9)(a) of this section.6
(B) A
PERSON THAT WILLFULLY VIOLATES A CLASS VI RULE,
7
REGULATION, PERMIT, OR ORDER OF THE COMMISSION ISSUED PURSUANT8
TO SUBSECTION (9)(c)(II)(A) OF THIS SECTION COMMITS A MISDEMEANOR9
AND, UPON CONVICTION BY A COURT OF COMPETENT JURISDICTION , IS10
SUBJECT TO A FINE OF AT LEAST FIVE THOUSAND DOLLARS AND NO MORE11
THAN SEVEN THOUSAND FIVE HUNDRED DOLLARS FOR EACH ACT OF12
VIOLATION AND FOR EACH DAY THAT THE PERSON REMAINS IN VIOLATION . 13
(IV) (D) A geologic storage operator shall maintain the financial14
assurance required under BY this subsection (9)(c)(IV) or under any rules15
adopted pursuant to this subsection (9)(c)(IV) until the commission16
approves site closure, as specified in rules adopted by the commission.17
E
XCEPT AS DESCRIBED IN SUBSECTION (9.4) OF THIS SECTION, commission18
approval of a site closure does not otherwise modify an operator's19
responsibility to comply with applicable laws.20
(D.5) If a geologic storage operator makes a material
21
misrepresentation or omission that causes the commission to approve a22
site closure pursuant to subsection (9)(c)(IV)(D) of this section, the23
commission may reimpose any regulatory responsibility or financial24
assurance obligation imposed on the geologic storage operator pursuant25
to subsection (9)(c)(IV)(A) of this section.26
(e) As used in this subsection (9), unless the context otherwise27
1165
-19- requires:1
(VI) "Site closure" has the meaning set forth in 40 CFR 146.81.2
(9.4) (a) B
EFORE THE COMMISSION APPROVES A SITE CLOSURE ,3
TITLE TO THE INJECTION CARBON DIOXIDE STORED BY A GEOLOGIC4
STORAGE OPERATOR REMAINS WITH THE GEOLOGIC STORAGE OPERATOR5
OR ANY PARTY TO WHICH THE GEOLOGIC STORAGE OPERATOR6
TRANSFERRED TITLE.7
(b) I
N ADDITION TO ANY CRITERIA FOR SITE CLOSURE REQUIRED BY8
RULES ADOPTED BY THE COMMISSION , THE COMMISSION SHALL NOT9
APPROVE A SITE CLOSURE UNTIL THE COMMISSION HAS DETERMINED THAT10
THE GEOLOGIC STORAGE OPERATOR REQUESTING THE SITE CLOSURE HAS11
CONTRIBUTED MONEY TO THE GEOLOGIC STORAGE STEWARDSHIP12
ENTERPRISE CASH FUND CREATED IN SECTION 34-60-144 (7) IN AN13
AMOUNT SUFFICIENT TO PAY FOR LONG -TERM STEWARDSHIP OF THE14
GEOLOGIC STORAGE FACILITY FOR WHICH THE OPERATOR REQUESTS THE15
SITE CLOSURE.16
(c) U
PON APPROVAL BY THE COMMISSION OF A SITE CLOSURE :17
(I) O
WNERSHIP OF THE INJECTION CARBON DIOXIDE AND18
OWNERSHIP OF ANY REMAINING GEOLOGIC STORAGE FACILITIES ,19
INCLUDING THOSE USED TO INJECT , MONITOR, OR STORE INJECTION20
CARBON DIOXIDE, TRANSFER TO THE STATE WITHOUT PAYMENT OF21
COMPENSATION;22
(II) T
HE GEOLOGIC STORAGE STEWARDSHIP ENTERPRISE CREATED23
IN SECTION 34-60-144 SHALL UNDERTAKE LONG-TERM STEWARDSHIP OF24
THE INJECTION CARBON DIOXIDE AND ANY ASSOCIATED GEOLOGIC25
STORAGE FACILITY; AND26
(III) T
HE GEOLOGIC STORAGE OPERATOR IS RELEASED FROM ALL27
1165
-20- FURTHER REGULATORY LIABILITY ASSOCIATED WITH THE GEOLOGIC1
STORAGE OPERATIONS OR ASSOCIATED GEOLOGIC STORAGE FACILITY ,2
EXCEPT AS PROVIDED IN SUBSECTION (9.4)(d) OF THIS SECTION.3
(d) R
EGULATORY LIABILITY REMAINS WITH THE GEOLOGIC4
STORAGE OPERATOR TO THE EXTENT THAT THE COMMISSION DETERMINES ,5
AFTER NOTICE AND HEARING, THAT:6
(I) T
HE GEOLOGIC STORAGE OPERATOR
WAS IN MATERIAL7
VIOLATION OF A STATE LAW OR REGULATION RELATED TO THE GEOLOGIC8
STORAGE OPERATIONS OR ANY ASSOCIATED GEOLOGIC STORAGE FACILITY9
THAT WAS NOT REMEDIED PRIOR TO APPROVAL OF SITE CLOSURE AND HAS10
NOT BEEN REMEDIED SINCE THAT TIME, AND ANY APPLICABLE STATUTES11
OF LIMITATION HAVE NOT RUN;12
(II) T
HE GEOLOGIC STORAGE OPERATOR PROVIDED DEFICIENT OR13
ERRONEOUS INFORMATION THAT WAS MATERIAL AND RELIED UPON BY THE14 COMMISSION TO SUPPORT THE APPROVAL OF SITE CLOSURE ;15
(III) CONTRACTUAL, CIVIL, OR CRIMINAL LIABILITY ARISES FROM16
CONDUCT OF THE GEOLOGIC STORAGE OPERATOR ASSOCIATED WITH THE17
GEOLOGIC STORAGE OPERATIONS OR ANY ASSOCIATED GEOLOGIC STORAGE18
FACILITY AND SUCH LIABILITY MATERIALLY AFFECTS THE COMMISSION'S19
DECISION TO APPROVE SITE CLOSURE; OR20
(IV) T
HERE IS FLUID MIGRATION FOR WHICH THE GEOLOGIC21
STORAGE OPERATOR IS RESPONSIBLE THAT CAUSES OR THREATENS TO22
CAUSE IMMINENT AND SUBSTANTIAL E NDANGERMENT TO AN23
UNDERGROUND SOURCE OF DRINKING WATER .24
(e) A
FTER NOTICE AND HEARING, THE COMMISSION MAY REIMPOSE25
ANY REGULATORY LIABILITY FROM WHICH THE GEOLOGIC STORAGE26
OPERATOR HAS BEEN RELEASED PURSUANT TO SUBSECTION (9.4)(c)(III) OF27
1165
-21- THIS SECTION AND FINANCIAL ASSURANCE OBLIGATIONS , IF THE1
COMMISSION DETERMINES THAT :2
(I) T
HE GEOLOGIC STORAGE OPERATOR MADE A MATERIAL3
MISREPRESENTATION OR OMISSION THAT CAUSED THE COMMISSION TO4
APPROVE A SITE CLOSURE;5
(II) T
HE GEOLOGIC STORAGE OPERATOR
WAS IN MATERIAL6
VIOLATION OF A DUTY IMPOSED ON THE OPERATOR BY STATE LAW ,7
INCLUDING BY RULES, PRIOR TO APPROVAL OF A SITE CLOSURE, THE8
MATERIAL VIOLATION HAS NOT BEEN REMEDIED, AND ANY APPLICABLE9
STATUTES OF LIMITATION HAVE NOT RUN ; OR10
(III) T
HERE IS MIGRATION OF THE INJECTION CARBON DIOXIDE FOR11
WHICH THE GEOLOGIC STORAGE OPERATOR IS RESPONSIBLE THAT CAUSES12
OR THREATENS TO CAUSE IMMINENT AND SUBSTANTIAL ENDANGERMENT13
TO AN UNDERGROUND SOURCE OF DRINKING WATER .14
(f) N
OTHING IN THIS SUBSECTION (9.4) WAIVES, ABROGATES, OR15
LIMITS GOVERNMENTAL IMMUNITY , AS DESCRIBED IN ARTICLE 10 OF TITLE16
24.
GEOLOGIC STORAGE FACILITIES, GEOLOGIC STORAGE LOCATIONS ,17
GEOLOGIC STORAGE RESOURCES , INJECTION CARBON DIOXIDE , AND18
FACILITIES ASSOCIATED WITH GEOLOGIC STORAGE OPERATIONS ARE NOT19
GAS FACILITIES FOR THE PURPOSES OF SECTION 24-10-106 (1)(f) AND DO20
NOT CONSTITUTE ANY OTHER AREA OR FACILITY FOR WHICH SOVEREIGN21
IMMUNITY IS WAIVED PURSUANT TO SECTION 24-10-106 (1).22
(g) A
S USED IN THIS SUBSECTION (9.4), UNLESS THE CONTEXT
23
OTHERWISE REQUIRES:24
(I) "R
EGULATORY LIABILITY" MEANS A GEOLOGIC STORAGE
25
OPERATOR'S OBLIGATION TO COMPLY WITH ANY RULE , REGULATION,26
PERMIT CONDITION, OR ORDER OF THE COMMISSION ADOPTED OR ISSUED27
1165
-22- PURSUANT TO SUBSECTION (9)(c)(II) OF THIS SECTION FOR GEOLOGIC1
STORAGE OPERATIONS.2
(II) "R
EGULATORY LIABILITY" INCLUDES A GEOLOGIC STORAGE
3
OPERATOR'S EXPOSURE TO PENALTIES ASSESSED IN ACCORDANCE WITH4
SECTION 34-60-121 FOR VIOLATIONS OF ANY RULE, REGULATION, PERMIT5
CONDITION, OR ORDER OF THE COMMISSION ADOPTED OR ISSUED6
PURSUANT TO SUBSECTION (9)(c)(II) OF THIS SECTION FOR GEOLOGIC7
STORAGE OPERATIONS.8
(III) "R
EGULATORY LIABILITY" DOES NOT INCLUDE A GEOLOGIC
9
STORAGE OPERATOR'S CIVIL, CONTRACTUAL, OR CRIMINAL LIABILITY.10
SECTION 6. In Colorado Revised Statutes, 34-60-140, amend11
(2)(a)(II) introductory portion as follows:12
34-60-140. Ownership of geologic storage resources and13
injection carbon dioxide - legislative declaration. (2) (a) Except as set14
forth in subsection (5) of this section:15
(II) UNTIL ownership of injection carbon dioxide and the facilities16
and equipment that store injection carbon dioxide in the state TRANSFER17
TO THE STATE PURSUANT TO SECTION 34-60-106 (9.4)(c)(I), SUCH18
OWNERSHIP is vested in:19
SECTION 7. In Colorado Revised Statutes, 37-80-111.5, amend20
(1)(d) as follows:21
37-80-111.5. Fees - rules - satellite monitoring system cash22
fund - well inspection cash fund - created. (1) (d) Of each fee collected23
pursuant to sections 37-90-105 (3)(a)(I) and (4)(a); 37-90-107 (7)(d)(I);24
37-90-116 (1)(a), (1)(c), and (1)(h); 37-90-137 (2)(a); 37-90.5-106;25
37-90.5-107; and 37-92-602 (3)(a) and (5), forty dollars A PORTION shall26
be credited to the well inspection cash fund, which fund is hereby created.27
1165
-23- Moneys THE AMOUNT OF THE PORTION TRANSFERRED TO THE WELL1
INSPECTION CASH FUND IS FORTY DOLLARS , AND THIS AMOUNT MAY BE2
MODIFIED BY RULES ADOPTED BY THE BOARD OF EXAMINERS PURS UANT TO3
SECTION 37-91-104 (1)(c). MONEY in the well inspection cash fund shall4
be
CONTINUOUSLY appropriated to and expended by the state engineer for5
the purposes established in section 37-91-113. Any moneys
MONEY6
credited to the well inspection cash fund and unexpended at the end of7
any given
STATE fiscal year remain
REMAINS in the fund and do DOES not8
revert to the general fund. All interest derived from the deposit and9
investment of this fund remain REMAINS in the fund and do DOES not10
revert to the general fund.11
SECTION 8. In Colorado Revised Statutes, 37-80-111.7, amend12
(2) introductory portion and (2)(b) as follows:13
37-80-111.7. Water resources cash fund - created - uses.14
(2) The state engineer shall collect the following fees and transmit them15
to the state treasurer, who shall credit them to the fund, except as16
specified in paragraph (b) of this subsection (2) SUBSECTION (2)(b) OF17
THIS SECTION:18
(b) The state engineer shall collect fees pursuant to sections19
37-90-105 (3)(a) and (4); 37-90-107 (7)(c)(I) and (7)(d)(I); 37-90-108 (4)20
and (6); 37-90-116 (1)(a), (1)(c), (1)(h), and (1)(i); 37-90-137 (2), (3)(a),21
and (3)(c); 37-90.5-106; 37-90.5-107; 37-92-305 (17); 37-92-308; and22
37-92-602 (1)(g)(III)(C), (3)(a), and (5). The
STATE treasurer shall credit23
the fees collected pursuant to this paragraph (b)
SUBSECTION (2)(b) to the24
fund except as specified in section 37-80-111.5 (1)(d).25
SECTION 9. In Colorado Revised Statutes, 37-90-103, amend26
(10.5) as follows:27
1165
-24- 37-90-103. Definitions - repeal. As used in this article 90, unless1
the context otherwise requires:2
(10.5) "Nontributary groundwater" means that groundwater,3
located outside the boundaries of any designated groundwater basins in4
existence on January 1, 1985 EXCLUDING DESIGNATED GROUNDWATER ,5
the withdrawal of which will not, within one hundred years of continuous6
withdrawal, deplete the flow of a natural stream, including a natural7
stream as defined in sections 37-82-101 (2) and 37-92-102 (1)(b), at an8
annual rate greater than one-tenth of one percent of the annual rate of9
withdrawal. The determination of whether groundwater is nontributary10
shall be based on aquifer conditions existing at the time of permit11
application; except that, in recognition of the de minimis amount of water12
discharging from the Dawson, Denver, Arapahoe, and Laramie-Fox Hills13
aquifers into surface streams due to artesian pressure, when compared14
with the great economic importance of the groundwater in those aquifers,15
and the feasibility and requirement of full augmentation by wells located16
in the tributary portions of those aquifers, it is specifically found and17
declared that, in determining whether groundwater of the Dawson,18
Denver, Arapahoe, and Laramie-Fox Hills aquifers is nontributary, it shall19
be assumed that the hydrostatic pressure level in each such aquifer has20
been lowered at least to the top of that aquifer throughout that aquifer;21
except that not nontributary groundwater, as defined in subsection (10.7)22
of this section, in the Denver basin shall not become nontributary23
groundwater as a result of the aquifer's hydrostatic pressure level24
dropping below the alluvium of an adjacent stream due to Denver basin25
well pumping activity. Nothing in this subsection (10.5) shall preclude26
PRECLUDES the designation of any aquifer or basin, or any portion thereof,27
1165
-25- which OF AN AQUIFER OR BASIN , THAT is otherwise eligible for1
designation under the standard set forth in subsection (6) of this section2
relating to groundwater in areas not adjacent to a continuously flowing3
natural stream wherein groundwater withdrawals have constituted the4
principal water usage for at least fifteen years preceding the date of the5
first hearing on the proposed designation of a basin.6
SECTION 10. In Colorado Revised Statutes, 37-90-137, amend7
(2)(a)(II), (2)(b)(I), (2)(b)(II) introductory portion, (2)(b)(II)(A),8
(2)(b)(II)(B), and (2)(c); and add (2)(e) and (7.5) as follows:9
37-90-137. Permits to construct wells outside designated10
basins - fees - permit no groundwater right - evidence - time11
limitation - well permits - rules - definition. (2) (a) (II) Effective July12
1, 2006, upon receipt of an application for a replacement well or a new,13
increased, or additional supply of groundwater from an area outside the14
boundaries of a designated groundwater basin, accompanied by a filing15
fee of one hundred dollars, the state engineer shall make a determination16
as to whether or not the exercise of the requested permit will materially17
injure the vested water rights
OR PRIOR GEOTHERMAL OPERATIONS of18
others.19
(b) (I) The state engineer shall issue a permit to construct a well20
only if:21
(A) The state engineer finds, as substantiated by hydrological and22
geological facts, that there is unappropriated water available for23
withdrawal by the proposed well and that the vested water rights
OR PRIOR24
GEOTHERMAL OPERATIONS of others will not be materially injured; and25
(B) Except as specified in subparagraph (II) of this paragraph (b)
26
SUBSECTION (2)(b)(II) OF THIS SECTION, the location of the proposed well27
1165
-26- will be more than six hundred feet from an existing well COMPLETED IN1
THE SAME AQUIFER AND MORE THAN ONE-FOURTH OF A MILE FROM A PRIOR2
GEOTHERMAL OPERATION UTILIZING WATER FROM THE SAME AQUIFER .3
(II) If the state engineer, after a hearing, finds that circumstances4
in a particular instance so warrant, or if a court decree is entered for the5
proposed well location after notice has been given in accordance with6
sub-subparagraph (B) of this subparagraph (II) SUBSECTION (2)(b)(II)(B)7
OF THIS SECTION, the state engineer may issue a permit without regard to8
the limitation specified in sub-subparagraph (B) of subparagraph (I) of9
this paragraph (b) SUBSECTION (2)(b)(I)(B) OF THIS SECTION; except that10
no A hearing shall be IS NOT required and the state engineer may issue a11
well permit without regard to the limitation specified in sub-subparagraph12
(B) of subparagraph (I) of this paragraph (b) SUBSECTION (2)(b)(I)(B) OF13
THIS SECTION:14
(A) If the state engineer notifies the owners of all wells within six15
hundred feet of the proposed well by certified mail and receives no16
response within the time set forth in the notice,
AND
IF THE PROPOSED17
WELL IS LOCATED WITHIN ONE-FOURTH OF A MILE OF A PRIOR18
GEOTHERMAL OPERATION, AND THE STATE ENGINEER NOTIFIES THE PRIOR19
GEOTHERMAL OPERATION'S DESIGNATED INDIVIDUALS AND THE ENERGY20
AND CARBON MANAGEMENT COMMISSION BY ELECTRONIC MAIL AND21
RECEIVES NO RESPONSE WITHIN THE TIME SET FORTH IN THE NOTICE;22
(B) If the proposed well is part of a water court proceeding23
adjudicating the water right for the well, or if the proposed well is part of24
an adjudication of a plan for augmentation or change of water right and25
if evidence is provided to the water court that the applicant has given26
notice of the water court application, at least fourteen days before making27
1165
-27- the application, by registered or certified mail, return receipt requested,1
to the owners of record of all wells within six hundred feet of the2
proposed well AND TO ALL DESIGNATED INDIVIDUALS OF PRIOR3
GEOTHERMAL OPERATIONS WITHIN ONE-FOURTH OF A MILE OF THE4
PROPOSED WELL;5
(c) The permit shall set forth such THE conditions for drilling,6
casing, and equipping wells and other diversion facilities as are7
reasonably necessary to prevent waste, pollution, or material injury to8
existing rights
OR PRIOR GEOTHERMAL OPERATIONS .9
(e) A
S USED IN THIS SUBSECTION (2), UNLESS THE CONTEXT10
OTHERWISE REQUIRES:11
(I) "MATERIAL INJURY TO A PRIOR GEOTHERMAL OPERATION" HAS12
THE MEANING SET FORTH IN SECTION 37-90.5-106 (1)(c).13
(II) "PRIOR GEOTHERMAL OPERATION" HAS THE MEANING SET14
FORTH IN SECTION 37-90.5-103 (14.5).15
(7.5) (a) E
XCEPT AS REQUIRED BY SUBSECTION (7.5)(b) OF THIS16
SECTION, A PERMIT FROM THE STATE ENGINEER IS NOT REQUIRED IN THE17
CASE OF WITHDRAWING NONTRIBUTARY GROUNDWATER FROM A GEOLOGIC18
FORMATION IF THE WITHDRAWAL IS PERMITTED AS A DEEP GEOTHERMAL19
OPERATION, AS DEFINED IN SECTION 37-90.5-103 (3), AND THE20
WITHDRAWN NONTRIBUTARY GROUNDWATER WILL BE USED ONLY FOR21
OPERATIONS TO EXTRACT OR UTILIZE HEAT , INCLUDING:22
(I) G
ENERATING ELECTRICITY;23
(II) H
EATING AND COOLING BUILDINGS;24
(III) H
EATING SWIMMING POOLS , PUBLIC BATHHOUSES , OR25
DEVELOPED HOT SPRINGS FACILITIES;26
(IV) H
EATING AQUACULTURE;27
1165
-28- (V) MELTING SNOW OR ICE;1
(VI) H
EATING TO FACILITATE CARBON DIOXIDE CAPTURE OR2
HYDROGEN PRODUCTION ;3
(VII) D
EEP GEOTHERMAL EXPLORATION , RESOURCE4
CONFIRMATION, OR RESERVOIR ENHANCEMENT ; AND5
(VIII) H
EATING AND DRYING FOR OTHER INDUSTRIAL PROCESSES .6
(b) A
WELL PERMIT IS REQUIRED IF THE OPERATOR WILL USE THE7
NONTRIBUTARY GROUNDWATER FOR ADDITIONAL BENEFICIAL USES8
UNRELATED TO THE EXTRACTION OR UTILIZATION OF HEAT .9
SECTION 11. In Colorado Revised Statutes, 37-90.5-102,10
amend (1)(b) as follows:11
37-90.5-102. Legislative declaration. (1) The general assembly12
hereby declares that:13
(b) The development of geothermal resources should be14
undertaken in such a manner as to safeguard life, health, property, public15
welfare, HISTORIC GEOTHERMAL HOT SPRINGS, and the environment,16
including wildlife resources; encourage the maximum economic recovery17
of each resource and prevent its waste; and protect associated correlative18
rights.19
SECTION 12. In Colorado Revised Statutes, 37-90.5-103,20
amend (1)(b) and (3)(c)(II); repeal (13); and add (9.5) and (14.5) as21
follows:22
37-90.5-103. Definitions. As used in this article 90.5, unless the23
context otherwise requires:24
(1) (b) "Allocated geothermal resource" does not include25
groundwater in the Denver basin aquifers
OR NONTRIBUTARY26
GROUNDWATER AQUIFERS ENTIRELY LOCATED SHALLOWER THAN TWO27
1165
-29- THOUSAND FIVE HUNDRED FEET .1
(3) (c) "Deep geothermal operation" does not include:2
(II) The use of any heat extracted with produced fluids in an oil3
and gas operation if the
UTILIZATION OF THE heat is only utilized to reduce
4
emissions from the operation in the same location as the well from which5
it was produced and would otherwise not be economically feasible as a6
standalone geothermal resource project.7
(9.5) "HISTORIC HOT SPRING" MEANS A HOT SPRING THAT IS8
REGISTERED AS DESCRIBED IN SECTION 37-90.5-106 (7) AND IS EITHER:9
(a) A COMMERCIAL GEOTHERMAL HOT SPRING WITH A VESTED10
WATER RIGHT; OR11
(b) A NONCOMMERCIAL GEOTHERMAL HOT SPRING THAT IS12
ACCESSIBLE TO AND ENJOYED BY THE PUBLIC .13
(13) "Nonconsumptive geothermal operation" means an operation14
using geothermal resources in which the volume of geothermal fluid15
extracted from an aquifer or formation is no more than the volume of the16
geothermal fluid reinjected in the same aquifer or formation over a17
reasonable time frame and distance.18
(14.5) "PRIOR GEOTHERMAL OPERATION " MEANS:19
(a) A GEOTHERMAL WELL, OPERATION, DISTRICT, OR UNIT20
AUTHORIZED BY THE STATE ENGINEER OR THE ENERGY AND CARBON21
MANAGEMENT COMMISSION PURSUANT TO THIS ARTICLE 90.5; OR22
(b) A HISTORIC HOT SPRING.23
SECTION 13. In Colorado Revised Statutes, 37-90.5-104,24
amend (2) and (4); and repeal (5) as follows:25
37-90.5-104. Ownership declaration. (2) The property right to26
a hot dry rock resource or a geothermal resource associated with27
1165
-30- nontributary groundwater is an incident of the ownership of the overlying1
surface, unless the property right is severed, reserved, or transferred with2
the subsurface estate expressly
OR IS OTHERWISE EXPRESSLY SEPARATE3
FROM THE SURFACE ESTATE. GEOTHERMAL RESOURCES ASSOCIATED WITH4
NONTRIBUTARY GROUNDWATER SHALL NOT BE TRANSFERRED SEPARATELY5
FROM THE NONTRIBUTARY GRO UNDWATER . WITH RESPECT TO ANY6
SEVERANCE, RESERVATION, OR TRANSFER OCCURRING AFTER
SEPTEMBER7
1, 2025:8
(a) F
OR ANY SEVERANCE , RESERVATION, OR TRANSFER OF9
NONTRIBUTARY GROUNDWATER , THERE IS A REBUTTABLE PRESUMPTION10
THAT THE SEVERANCE , RESERVATION, OR TRANSFER INCLUDES ANY11
ASSOCIATED GEOTHERMAL RESOURCES UNLESS THE SEVERANCE ,12
RESERVATION, OR TRANSFER EXPRESSLY STATES OTHERWISE ; AND13
(b) F
OR ANY SEVERANCE , RESERVATION, OR TRANSFER OF14
GEOTHERMAL RESOURCES ASSOCIATED WITH NONTRIBUTARY15
GROUNDWATER, THERE IS A REBUTTABLE PRESUMPTION THAT THE16
SEVERANCE, RESERVATION, OR TRANSFER INCLUDES THE ASSOCIATED17
NONTRIBUTARY GROUNDWATER UNLESS THE SEVERANCE , RESERVATION,18
OR TRANSFER EXPRESSLY STATES OTHERWISE .19
(4) Notwithstanding any provision of this section to the contrary,20
nothing in this section:21
(a) Derogates the rights of a landowner to nontributary22
groundwater; or
23
(b) Affects any ownership or rights to a geothermal resource24
associated with nontributary groundwater, which resource is acquired25
before July 1, 2023;
OR26
(c) P
REVENTS AN OWNER OF NONTRIBUTARY GROUNDWATER27
1165
-31- RIGHTS FROM ACCESSING NONTRIBUTARY GROUNDWATER FOR1
NONGEOTHERMAL PURPOSES THAT WILL NOT MATERIALLY INJURE A 2
PRIOR GEOTHERMAL OPERATION .3
(5) Notwithstanding any provision of this section to the contrary,4
geothermal resources associated with nontributary groundwater shall not5
be transferred separately from the nontributary groundwater.6
SECTION 14. In Colorado Revised Statutes, 37-90.5-106,7
amend (1)(a)(I), (1)(a)(II), (1)(b)(III), (3), and (6); and add (1)(a)(IV),8
(1)(a)(V), (1)(c), (2)(c), and (7) as follows:9
37-90.5-106. Regulation of geothermal resource operations -10
reinjection - fees - rules - definition. (1) (a) (I) The state engineer has11
AND THE BOARD OF EXAMINERS OF WATER WELL AND GROUND HEAT12
EXCHANGER CONTRACTORS CREATED IN SECTION 37-91-103 HAVE the13
exclusive authority to regulate shallow geothermal operations and may14
adopt rules that regulate shallow geothermal operations.15
(II) Prior to BEFORE constructing a test bore, GROUND HEAT16
EXCHANGER, monitoring well, or production well or reworking an17
existing well associated with shallow geothermal operations,
A PERSON18
SHALL OBTAIN an operations permit must be obtained
from the state19
engineer.20
(IV) THE STATE ENGINEER SHALL MAINTAIN A TRIBUTARY21
GEOTHERMAL NOTIFICATION LIST FOR EACH WATER DIVISION .22
(V) (A) AN APPLICANT FOR A NEW GEOTHERMAL WELL PERMIT23
WITHDRAWING TRIBUTARY GROUNDWATER AT A RATE GREATER THAN24
FIFTY GALLONS PER MINUTE SHALL PROVIDE A COPY OF THE APPLICATION25
BY ELECTRONIC MAIL TO ALL PARTIES THAT HAVE SUBSCRIBED TO THE26
TRIBUTARY GEOTHERMAL NOTIFICATION LIST FOR THE WATER DIVISION IN27
1165
-32- WHICH THE WELL WILL BE LOCATED AND SHALL FILE PROOF OF SUCH1
NOTICE WITH THE STATE ENGINEER.2
(B) THE STATE ENGINEER SHALL ALLOW THE OWNERS OR3
OPERATORS OF PRIOR GEOTHERMAL OPERATIONS, VESTED WATER RIGHTS,4
OR WELLS THIRTY-FIVE DAYS AFTER THE DATE OF THE ELECTRONIC5
MAILING OF THE NOTICE TO SUBMIT A CLAIM OF MATERIAL INJURY . ANY6
SUCH CLAIM MAY REQUEST CONDITIONS TO BE IMPOSED UPON THE WELL7
PERMIT IN ORDER TO PREVENT SUCH INJURY AND PROVIDE OTHER8
INFORMATION TO BE CONSIDERED BY THE STATE ENGINEER IN REVIEWING9
THE APPLICATION.10
(C) IF AN APPLICANT PROPOSES A GEOTHERMAL WELL11
WITHDRAWING TRIBUTARY GROUNDWATER AT A RATE GREATER THAN12
FIFTY GALLONS PER MINUTE , AND THE PROPOSED WELL IS IN A13
HYDROGEOLOGIC SETTING WHERE IT HAS THE POTENTIAL TO MATERIALLY14
INJURE A HISTORIC HOT SPRING, THE APPLICANT SHALL PROVIDE GEOLOGIC15
AND HYDROLOGIC EVIDENCE TO BE CONSIDERED BY THE STATE ENGINEER.16
THE EVIDENCE MUST DEMONSTRATE THAT THE PROPOSED WELL WILL NOT17
MATERIALLY INJURE THE HISTORIC HOT SPRING . THE STATE ENGINEER18
SHALL AMEND THE GEOTHERMAL RULES ADOPTED PURSUANT TO19
SUBSECTION (1)(a)(I) OF THIS SECTION TO IMPLEMENT THE REQUIREMENTS20
OF THIS SUBSECTION (1)(a)(V)(C).21
(b) (III) In issuing an operations permit pursuant to subsection22
(1)(b)(II) of this section, the commission:23
(A) May allow for the use of groundwater as part of24
nonconsumptive geothermal operations PURSUANT TO SECTION 37-90-13725
(7.5)(a) as a material medium for allocated geothermal resources that26
have been determined to be nontributary pursuant to section 37-90.5-10727
1165
-33- (1)(b); AND1
(B) SHALL MAKE A FINDING BASED UPON AVAILABLE DATA THAT2
THE PROPOSED OPERATION WILL NOT MATERIALLY INJURE A PRIOR3
GEOTHERMAL OPERATION ; AND4
(C) SHALL REQUIRE EACH APPLICANT FOR A PERMIT CONCERNING5
DEEP GEOTHERMAL OPERATIONS TO PROVIDE NOTICE OF THE APPLICATION6
TO THE DESIGNATED INDIVIDUALS OF PRIOR GEOTHERMAL OPERATIONS7
REGISTERED PURSUANT TO SUBSECTION (7) OF THIS SECTION AND LOCATED8
WITHIN ONE-FOURTH OF A MILE OF THE PROPOSED DEEP GEOTHERMAL9
OPERATIONS.10
(c) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE11
REQUIRES, "MATERIAL INJURY TO A PRIOR GEOTHERMAL OPERATION"12
INCLUDES INJURY TO ANY ASPECT OF THE VESTED WATER RIGHTS OF A13
PRIOR GEOTHERMAL OPERATION, WHICH MAY INCLUDE WATER QUANTITY,14
PRESSURE, RATE OF FLOW, MINERAL CONTENT, OR TEMPERATURE.15
REGARDLESS OF WHETHER WATER QUANTITY, PRESSURE, RATE OF FLOW,16
MINERAL CONTENT, OR TEMPERATURE ARE DECREED, "MATERIAL INJURY17
TO A PRIOR GEOTHERMAL OPERATION" ALSO INCLUDES DIMINUTION OR18
ALTERATION OF ANY SUCH PARAMETER THAT RESULTS IN AN ADVERSE19
EFFECT TO A PRIOR GEOTHERMAL OPERATION .20
(2) (c) T
HE COMMISSION MAY ENFORCE RULES ADOPTED PURSUANT21
TO THIS SUBSECTION (2) IN ACCORDANCE WITH SECTION 34-60-121.22
(3) Where the maintenance of underground pressures, the23
prevention of subsidence, or the disposal of brines is necessary,24
reinjection of geothermal fluid
OR WATER may be required by the state25
engineer or the commission.26
(6) (a) On and after July 1, 2023,
Except as set forth in subsection27
1165
-34- (6)(b)(II) of this section, the commission is responsible for administering1
and enforcing any permits issued by the state engineer pursuant to this2
section that cover deep geothermal operations.3
(b) The powers, duties, functions, and obligations concerning4
permits issued by the state engineer pursuant to this section that cover5
deep geothermal operations are transferred, effective July 1, 2023, to the6
commission. The state engineer retains OR THE BOARD OF EXAMINERS OF7
WATER WELL AND GROUND HEAT EXCHANGER CONTRACTORS MAY8
EXERCISE any powers, duties, functions, and obligations POWER, DUTY,9
FUNCTION, OR OBLIGATION necessary to issue, administer, and enforce any10
permits
OR LICENSES that cover:11
(I) Shallow geothermal operations; and12
(II) The use of geothermal fluid in deep geothermal operations13
pursuant to section 37-90.5-107, except for nonconsumptive
DEEP14
geothermal operations
SUBJECT TO SECTION 37-90-137 (7.5)(a).15
(c) The rules of the state engineer pertaining to the powers, duties,
16
functions, and obligations transferred to the commission pursuant to17
subsection (6)(b) of this section continue in effect and apply to the18
commission until the rules are replaced by rules adopted by the19
commission pursuant to subsection (1)(b)(I) of this section.20
(d) The commission and the state engineer shall enter into21
memoranda of understanding, interagency agreements, or both, as22
appropriate, to provide for the timely transfer of the powers, duties,23
functions, and obligations transferred to the commission pursuant to24
subsection (6)(b) of this section.25
(7) (a) AN OWNER OR OPERATOR OF A PRIOR GEOTHERMAL26
OPERATION, OR A GOVERNMENT ENTITY WITH AN INTEREST IN THE PUBLIC'S27
1165
-35- ENJOYMENT OF A NONCOMMERCIAL GEOTHERMAL HOT SPRING , SHALL1
REGISTER WITH THE STATE ENGINEER:2
(I) THE LOCATION OF THE PRIOR GEOTHERMAL OPERATION ; AND3
(II) DESIGNATED INDIVIDUALS TO RECEIVE ELECTRONIC MAIL4
NOTIFICATIONS FROM THE STATE ENGINEER AND THE COMMISSION AS5
DESCRIBED IN SECTION 37-90-137 (2) AND SUBSECTION (1)(b)(III)(C) OF6
THIS SECTION.7
(b) THE STATE ENGINEER SHALL ADD THE DESIGNATED8
INDIVIDUALS TO THE TRIBUTARY GEOTHERMAL NOTIFICATION LIST9
DESCRIBED IN SUBSECTION (1)(a)(IV) OF THIS SECTION FOR THE WATER10
DIVISION IN WHICH THE PRIOR GEOTHERMAL OPERATION IS LOCATED .11
SECTION 15. In Colorado Revised Statutes, 37-90.5-107,12
amend (1)(a) and (4); and repeal (3)(b) and (3)(d) as follows:13
37-90.5-107. Permits for the use of geothermal resources -14
rules. (1) (a) After receipt of the necessary application, the state engineer15
shall issue a use permit to use distributed geothermal resources consistent16
with the requirements described in section 37-90-137 SECTION 37-90-107,17
37-90-108,
37-90-109,
37-90-137, OR 37-90.5-106.18
(3) (b) The requirement to issue a use permit pursuant to19
subsection (1)(b) of this section does not apply to operations that are20
solely nonconsumptive geothermal operations using allocated geothermal21
resources.22
(d) The use permit issued pursuant to subsection (1) of this section23
may allow for nonconsumptive secondary uses of geothermal fluid,24
including the recovery of geothermal by-products, and may allow for25
consumptive secondary uses of geothermal fluid, including sale, which do26
not impair valid, prior water rights.27
1165
-36- (4) Notwithstanding any provision of this section to the contrary,1
section 37-90-137 (4) applies to any consumptive BENEFICIAL use of2
allocated geothermal resources,
EXCEPT FOR THOSE OPERATIONS3
DESCRIBED IN SECTION 37-90-137 (7.5)(a).4
SECTION 16.
In Colorado Revised Statutes, 37-90.5-111,5
amend (1)(b) as follows:6
37-90.5-111. Coordination between the commission and the7
state engineer. (1) When an operations permit is issued by the8
commission pursuant to section 37-90.5-106 (1)(b)(II) and a use permit9
is issued by the state engineer pursuant to section 37-90.5-107 (1), the10
commission and the state engineer shall coordinate to:11
(b) Determine whether an accounting for the use and reinjection12
of geothermal fluid
OR WATER pursuant to the applicable permit may be13
submitted to only the commission, or
only TO the state engineer, OR TO14
BOTH.15
SECTION 17. In Colorado Revised Statutes, amend 37-91-10116
as follows:17
37-91-101. Legislative declaration. (1) The general assembly18
hereby finds, determines, and declares that:19
(a) It has been established by Scientific evidence HAS20
ESTABLISHED that improperly constructed wells, improperly abandoned21
wells,
IMPROPERLY CONSTRUCTED OR ABANDONED GROUND HEAT22
EXCHANGERS, and improperly installed pumping equipment can adversely23
affect groundwater resources and the public health, safety, and welfare;24
and25
(b) Therefore, the proper location, construction, repair, and26
abandonment of wells;
THE PROPER LOCATION, CONSTRUCTION, REPAIR,27
1165
-37- AND ABANDONMENT OF GROUND HEAT EXCHANGERS ; the proper1
installation and repair of pumping equipment; the licensing and regulation2
of persons engaging in the business of contracting either for the3
construction of wells,
THE CONSTRUCTION OF GROUND HEAT4
EXCHANGERS, or for
the installation of pumping equipment; and the5
periodic inspection of well construction,
GROUND HEAT EXCHANGER6
CONSTRUCTION, and pump installation are essential for the protection of7
the public health,
SAFETY, AND WELFARE and the preservation of8
groundwater resources.9
SECTION 18.
In Colorado Revised Statutes, 37-91-102, amend10
(3), (10), (10.5), (14), (15), (15.5), (16)(b)(I)(B), (16)(b)(I)(C),11
(16)(b)(II), and (17); and add (4.1), (6.5), (6.7), (7.5), and (16)(b)(I)(D)12
as follows:13
37-91-102. Definitions. As used in this article 91, unless the14
context otherwise requires:15
(3) "Board" means the state board of examiners of water well16
construction and pump installation AND GROUND HEAT EXCHANGER17
contractors created by IN section 37-91-103.18
(4.1) (a) "C
ONSTRUCTION OR INSTALLATION OF A GROUND HEAT19
EXCHANGER" MEANS ANY ACT UNDERTAKEN AT A GROUND HEAT20
EXCHANGER SITE FOR THE ESTABLISHMENT OR MODIFICATION OF A21
GROUND HEAT EXCHANGER .22
(b) "C
ONSTRUCTION OR INSTALLATION OF A GROUND HEAT23
EXCHANGER" INCLUDES THE LOCATING OF A GROUND HEAT EXCHANGER24
AND THE EXCAVATING OR FRACTURING NECESSARY TO INSTALL A GROUND25
HEAT EXCHANGER.26
(c) "C
ONSTRUCTION OR INSTALLATION OF A GROUND HEAT27
1165
-38- EXCHANGER" DOES NOT INCLUDE SURVEYING , SITE PREPARATION, SITE1
MODIFICATION, OR OTHER PREPARATORY ACTS .2
(6.5) "G
ROUND HEAT EXCHANGER " MEANS A CONTINUOUS ,3
SEALED, SUBSURFACE HEAT EXCHANGER CONSISTING OF A CLOSED LOOP4
THROUGH WHICH A HEAT-TRANSFER FLUID PASSES TO AND RETURNS FROM5
A HEAT PUMP OR MANIFOLD . A GROUND HEAT EXC HANGER MAY BE6
VERTICALLY OR HORIZONTALLY CONFIGURED OR SUBMERGED IN SURFACE7
WATER.8
(6.7) "G
ROUND HEAT EXCHANGER CONTRACTOR " MEANS AN9
INDIVIDUAL LICENSED PURSUANT TO THIS ARTICLE 91 WHO IS RESPONSIBLE10
FOR THE DRILLING, CONSTRUCTION, GROUTING, REPAIR, TESTING, OR11
ABANDONMENT OF A GROUND HEAT EXC HANGER , EITHER BY CONTRACT OR12
FOR HIRE, FOR ANY CONSIDERATION WHATSOEVER .13
(7.5) "H
EAT-TRANSFER FLUID" MEANS A FLUID HEAT-TRANSFER14
MEDIUM TO CONVEY THERMAL ENERGY TO AND FROM THE THERMAL15
SOURCE OR SINK.16
(10) "License" means the document issued by the board to
A17
qualified persons making application therefor,
APPLICANT pursuant to18
section 37-91-105, authorizing such persons WHICH DOCUMENT19
AUTHORIZES THE APPLICANT to engage in one or more methods of well20
construction,
GROUND HEAT EXCHANGER CONSTRUCTION , or pump21
installation or any combination of such methods.22
(10.5) "Monitoring and observation well" includes any excavation23
that is drilled, cored, bored, washed, fractured, driven, dug, jetted, or24
otherwise constructed when the intended use of such
THE excavation is25
for locating such A well, pumping equipment or aquifer testing,26
monitoring groundwater,
GROUNDWATER REMEDIATION , or collection of27
1165
-39- water quality samples.1
(14) "Pump installation contractor" means any person AN2
INDIVIDUAL licensed to install, remove, modify, or repair pumping3
equipment for compensation.4
(15) "Repair" means:5
(a) Any change, replacement, or other alteration of any well or6
pumping equipment which THAT requires a breaking or opening of the7
well seal or any waterlines up to and including the pressure tank and any8
coupling appurtenant thereto TO THE PRESSURE TANK; OR9
(b) A
NY CHANGE, REPLACEMENT, OR OTHER ALTERATION OF A10
GROUND HEAT EXCHANGER THAT REQUIRES EXC AVATION OF ANY PORTION11
OF THE GROUND HEAT EXCHANGER TO REPAIR OR REPLACE COMPONENTS12
OF SURFACE CASING, PIPING OR GROUT WITHIN THE BOREFIELD, OR PIPING13
BETWEEN THE BOREFIELD AND THE MANIFOLD .14
(15.5) "Supervision" means personal and continuous on-the-site
15
ON-SITE direction by a licensed well construction contractor, LICENSED16
GROUND HEAT EXCHANGER CONTRACTOR , or licensed pump installation17
contractor, unless the licensed contractor has applied for and received18
from the board an exemption from continuous on-the-site ON-SITE19
direction for a specific task.20
(16) (b) (I) "Well" does not include:21
(B) An excavation made for the purpose of obtaining or22
prospecting for minerals or those wells subject to the jurisdiction of the23
energy and carbon management commission, as provided in article 60 of24
title 34 or
IN ARTICLE 90.5 OF THIS TITLE 37;25
(C) Wells
A WELL subject to the jurisdiction of the office of mined26
land reclamation DIVISION OF RECLAMATION, MINING, AND SAFETY, as27
1165
-40- provided in article 33 ARTICLES 32 TO 34 of title 34; OR1
(D) R
ECHARGE BASINS OR INFILTRATION BASINS THAT ARE2
CONSTRUCTED IN SUCH A MANNER THAT THE INTENT OF THEIR DESIGN IS3
TO REMAIN ABOVE THE GROUNDWATER LEVEL .4
(II) "Well" does not include a naturally flowing spring or springs5
where the natural spring discharge is captured or concentrated by6
installation of a near-surface structure or device less then
THAN ten feet7
in depth located at or within fifty feet of the spring or springs' natural8
discharge point and the water is conveyed directly by gravity flow or into9
a separate sump or storage, if SO LONG AS the owner obtains a water right10
for such THE structure or device as a spring pursuant to article 92 of this11
title TITLE 37.12
(17) "Well construction contractor" means any person AN13
INDIVIDUAL licensed pursuant to this article ARTICLE 91 and responsible14
for the construction, test-pumping, or development of wells, either by15
contract or for hire, or for any consideration whatsoever.16
SECTION 19. In Colorado Revised Statutes, 37-91-103, amend17
(1) and (3) as follows:18
37-91-103. State board of examiners of water well and ground19
heat exchanger contractors. (1) (a) There is created, in the division of20
water resources in the department of natural resources, a THE state board21
of examiners of water well construction and pump installation AND22
GROUND HEAT EXCHANGER contractors consisting of five members and23
comprised of IS CREATED IN THE DIVISION OF WATER RESOURCES WITHIN24
THE DEPARTMENT OF NATURAL RESOURCES . THE BOARD INCLUDES the25
following persons SIX INDIVIDUALS:26
(I) The state engineer or a representative designated by the state27
1165
-41- engineer ENGINEER'S DESIGNEE;1
(II) A representative of the department of public health and2
environment designated by the executive director of the department; and3
(III) three FOUR members appointed by the governor, two of4
whom must SHALL be well construction contractors or pump installation5
contractors, each with a minimum of ten years' experience in the well6
construction or pump installation business preceding the individual's7
appointment, and one of whom must SHALL be an engineer or geologist8
with a minimum of ten years' experience in water supply and well9
construction preceding the individual's appointment, and
ONE OF WHOM10
SHALL BE AN INDIVIDUAL WITH A MINIMUM OF TEN YEARS ' EXPERIENCE11
RELATING TO GROUND HEAT EXCHANGERS PRECEDING THE INDIVIDUAL 'S12
APPOINTMENT.13
(b) The state board of examiners of water well construction and
14
pump installation AND GROUND HEAT EXCHANGER contractors is a type15
1 entity, as defined in section 24-1-105.16
(3) The board shall meet at least once every three months and at17
such other times as it deems necessary or advisable. Special Board18
meetings may be called at any time on order of the chairman CHAIR or19
vice-chairman VICE-CHAIR or any three FOUR members of the board. The20
board shall determine the time and place of all meetings, but at least one21
meeting every three months shall be held in Denver. Three FOUR22
members of the board shall constitute a quorum, and the affirmative vote23
of three AT LEAST FOUR members shall be IS required to pass any action24
or motion of the board. The board may adopt bylaws to govern its own25
procedure.26
SECTION 20. In Colorado Revised Statutes, 37-91-104, amend27
1165
-42- (1)(b), (1)(i), and (1)(l) as follows:1
37-91-104. Duties of the board. (1) The board shall:2
(b) Have general supervision and authority over the construction3
and abandonment of wells,
CONSTRUCTION AND AB ANDONMENT OF4
GROUND HEAT EXCHANGERS , and the installation of pumping equipment,5
as provided by sections 37-91-109 and 37-91-110;6
(i) Disseminate information to pump installation contractors,7
GROUND HEAT EXCHANGER CONTRACTORS , and well construction8
contractors in order to protect and preserve the groundwater resources of9
the state;10
(l) (I) Assure protection of groundwater resources and the public11
health by ordering the nondestructive investigation, abandonment, repair,12
drilling, redrilling, casing, recasing, deepening, or excavation of a well
OR13
GROUND HEAT EXCHANGER where it
THE BOARD finds such action to be14
AN ORDER necessary to correct violations of this article ARTICLE 91 or15
rules promulgated ADOPTED by the board with respect PURSUANT to this16
article ARTICLE 91 or to protect groundwater resources and the public17
health.18
(II) A
N existing wells
WELL OR GROUND HEAT EXC HANGER that19
were WAS constructed in compliance with the laws and regulations in20
effect at the time of their ITS construction shall IS not be required to be21
repaired, redrilled, or otherwise modified to meet the current standards for22
well construction
OR GROUND HEAT EXCHANGER CONSTRUCTION23
contained in this article
ARTICLE 91 or the IN rules adopted by the board24
PURSUANT TO THIS ARTICLE 91. THE BOARD MAY ORDER any such wells25
WELL OR GROUND HEAT EXCHANGER that present PRESENTS an imminent26
threat to public health or
AN IMMINENT THREAT OF groundwater27
1165
-43- contamination may be ordered to be repaired or abandoned. The ANY1
remedial action required by the board for such wells shall A WELL OR2
GROUND HEAT EXCHANGER MUST be the minimum repair necessary to3
remove the threat to public health or of groundwater pollution. An order4
to abandon a well that is issued under this article ARTICLE 91 is not a5
determination of intent to abandon any water right associated with the6
well.7
SECTION 21. In Colorado Revised Statutes, 37-91-105, amend8
(1), (2)(d), (2.5), (5), and (7); and add (8) as follows:9
37-91-105. Licensing - registration of rigs. (1) Every person,10
Before engaging in the business of contracting either for the construction11
of wells A WELL, THE INSTALLATION OF A GROUND HEAT EXCHANGER , or12
for the installation of pumping equipment, AN INDIVIDUAL shall obtain a13
license for one or more methods of well construction,
GROUND HEAT14
EXCHANGER INSTALLATION , or pump installation from the board and shall15
secure a registration from the board for each well-drilling,
GROUND HEAT16
EXCHANGER, or pump-installing rig to be operated or leased by him or his
17
THE INDIVIDUAL OR THE INDIVIDUAL'S employee.18
(2) The board shall issue a license to each applicant who files an19
application upon a form and in such manner as the board prescribes,20
accompanied by such fees and bond as required by section 37-91-107, and21
who furnishes evidence satisfactory to the board that the applicant:22
(d) Has had not less than two years' experience in the type of well23
construction work,
GROUND HEAT EXCHANGER WORK , or pump24
installation work for which the applicant is initially applying for a license;25
however:26
(I) Once a person
AN INDIVIDUAL WHO is licensed in one or more27
1165
-44- methods of well construction the person is eligible without further1
experience to take an examination to obtain a license for a different2
method of well construction;3
(II) Once a person AN INDIVIDUAL WHO is licensed for installing4
one or more types of pumps the person is eligible without further5
experience to take an examination to obtain a license for a different type6
of pump installation; and7
(III) A
N INDIVIDUAL'S education in an accredited program8
approved by the board may substitute for well construction,
GROUND9
HEAT EXCHANGER INSTALLATION , or pump installation experience upon10
application to and acceptance by the board;
AND11
(IV) A
N INDIVIDUAL'S POSSESSION OF A LICENSE FOR WELL12
CONSTRUCTION MAY SUBSTITUTE FOR GROUND HEAT EXCHANGER13
INSTALLATION EXPERIENCE UPON APPLICATION TO AND ACCEPTANCE BY14
THE BOARD.15
(2.5) The board shall issue a special license for the use of special16
equipment or limited procedures in well construction,
GROUND HEAT17
EXCHANGER INSTALLATION , or pump installation to each applicant who18
files an application upon a form and in such manner as the board19
prescribes, accompanied by such fees and bond as are required by section20
37-91-107, and who furnishes evidence satisfactory to the board that he
21
THE APPLICANT meets the requirements established in subsection (2) of22
this section; except that a special licensee shall IS not be eligible to take23
an examination to obtain a license for a different method of well24
construction,
GROUND HEAT EXCHANGER INSTALLATION , or pump25
installation unless said
THE licensee has at least two years of experience26
in the method of well construction,
GROUND HEAT EXCHANGER27
1165
-45- INSTALLATION, or pump installation for which the additional license is1
sought.2
(5) The examination shall MUST consist of an oral and written3
examination and shall fairly test the applicant's knowledge and4
application thereof in OF the following subjects, RESPECTIVELY,5
DEPENDING ON THE LICENSE TYPE:6
(a) F
OR A WELL CONSTRUCTION CONTRACTOR LICENSE : Basics of7
drilling methods, specific drilling methods, basics of pump installation
8
methods, specific pump installation methods, and basics of well9
construction and his THE APPLICANT'S knowledge and application of state10
laws and local ordinances concerning the construction of wells or AND11
RULES ADOPTED IN CONNECTION WITH SUCH LAWS AND ORDINANCES ;12
(b) F
OR A PUMP INSTALLATION CONTRACTOR LICENSE : BASICS OF13
PUMP INSTALLATION METHODS , SPECIFIC PUMP INSTALLATION METHODS14
AND ASSOCIATED PUMPING EQUIPMENT , AND THE APPLICANT 'S15
KNOWLEDGE AND APPLICATION OF STATE LAWS AND LOCAL ORDINANCES16
CONCERNING the installation of pumping equipment or both,
and rules17
promulgated ADOPTED in connection therewith WITH SUCH LAWS AND18
ORDINANCES; AND19
(c) F
OR A GROUND HEAT EXCHANGER CONTRACTOR LICENSE :20
B
ASICS OF GROUND HEAT EXCHANGER INSTALLATION , SPECIFIC METHODS21
RELATED TO GROUND HEAT EXCHANGER INSTALLATION , AND THE22
APPLICANT'S KNOWLEDGE AND APPLICATION OF STATE LAWS AND LOCAL23
ORDINANCES CONCERNING THE INSTALLATION OF GROUND HEAT24
EXCHANGERS AND RULES ADOPTED IN CONNECTION WITH SUCH LAWS AND25
ORDINANCES.26
(7) Each licensee shall complete eight hours of continuing27
1165
-46- education training as approved by the board every year in order to1
maintain or renew a license.2
(8) (a) U
NTIL THE GOVERNOR APPOINTS TO THE BOARD A MEMBER3
WITH TEN OR MORE YEARS OF GROUND HEAT EXCHANGER EXPERIENCE ,4
AND UNTIL THE BOARD ADOPTS RULES CONCERNING THE LICENSING OF5
GROUND HEAT EXCHANGER CONTRACTORS , AN INDIVIDUAL OPERATING6
PURSUANT TO A PERMIT ISSUED FROM THE STATE ENGINEER MAY INSTALL7
GROUND HEAT EXCHANGERS IN ACCORDANCE WITH RULES ADOPTED BY8
THE STATE ENGINEER PURSUANT TO SECTION 37-90.5-106.9
(b) A
FTER THE TIME FRAME DESCRIBED IN SUBSECTION (8)(a) OF10
THIS SECTION, AN INDIVIDUAL OPERATING UNDER A PERMIT ISSUED BY THE11
STATE ENGINEER WHO APPLIES FOR A GROUND HEAT EXCHANGER12
CONTRACTOR LICENSE IS REQUIRED TO PASS AN ORAL EXAMINATION13
PURSUANT TO SUBSECTION (2)(e) OF THIS SECTION BUT IS NOT REQUIRED14
TO:15
(I) D
EMONSTRATE THEIR EXPERIENCE PURSUANT TO SUBSECTION16
(2)(d)
OF THIS SECTION; OR17
(II) P
ASS A WRITTEN EXAMINATION PURSUANT TO SUBSECTION18
(2)(e)
OF THIS SECTION.19
SECTION 22.
In Colorado Revised Statutes, 37-91-106, amend20
(2) as follows:21
37-91-106. License - exemptions - rules. (2) A license shall IS22
not be required of any person INDIVIDUAL who performs labor or services23
if he THE INDIVIDUAL is directly employed by, or under the supervision of,24
a licensed well construction contractor,
LICENSED GROUND HEAT25
EXCHANGER CONTRACTOR , or LICENSED pump installation contractor.26
SECTION 23.
In Colorado Revised Statutes, 37-91-107, amend27
1165
-47- (2), (3), (4), (4.5), (5), and (6) as follows:1
37-91-107. Fees and bonds - license renewal - continuing2
education. (2) (a) The board shall charge REQUIRE an application fee TO3
BE PAID IN THE AMOUNT of twenty dollars. to THE PAYMENT OF THE FEE4
MUST accompany each application from a resident of the state. of5
Colorado and THE BOARD SHALL ALSO REQUIRE AN APPLICANT TO PAY a6
further fee IN THE AMOUNT of fifty dollars upon THE APPLICANT'S7
successful completion of
THE examination AND before issuance of
THE8
BOARD ISSUES a license.9
(b) In addition
TO PAYING A FEE PURSUANT TO SUBSECTION (2)(a)10
OF THIS SECTION, each successful resident applicant shall file and11
maintain with the board evidence of financial responsibility in the form12
of a savings account, deposit, or certificate of deposit in the amount of ten13
thousand dollars, meeting the requirements of section 11-35-101, C.R.S.,
14
or an irrevocable letter of credit for the amount of ten thousand dollars,15
meeting the requirements of section 11-35-101.5, C.R.S., or shall file and16
maintain with the board an approved compliance bond with a corporate17
surety authorized to do business in the state, of Colorado, in the amount18
of ten thousand dollars, for the use and benefit of any person or the state19
of Colorado suffering loss or damage, conditioned that such THE licensee20
will comply with the laws of the state of Colorado in engaging in the21
business for which he THE LICENSEE receives a license and the rules of the22
board promulgated ADOPTED in the regulation of such business.23
(3) (a) The board shall charge an application fee
IN THE AMOUNT24
of fifty dollars, to
THE PAYMENT OF WHICH APPLICATION FEE MUST25
accompany each application from a nonresident of the state. of Colorado26
and THE BOARD SHALL ALSO CHARGE a further nonresident fee of four27
1165
-48- hundred dollars, WHICH A NONRESIDENT SHALL PAY upon successful1
completion of
THE examination AND before THE issuance of a license.2
(b) In addition
TO PAYING ANY FEES REQUIRED BY SUBSECTION3
(3)(a)
OF THIS SECTION, each successful nonresident applicant shall file4
and maintain with the board evidence of financial responsibility in the5
form of a savings account, deposit, or certificate of deposit in the amount6
of twenty thousand dollars, meeting the requirements of section7
11-35-101, C.R.S.,
or shall file and maintain with the board an approved8
compliance bond in the amount of twenty thousand dollars with a9
corporate surety authorized to do business in the state of Colorado for the10
use and benefit of any person or the state of Colorado suffering loss or11
damage, conditioned that such THE licensee will SHALL comply with the12
laws of the state in engaging in the business for which he THE LICENSEE13
receives a license and the rules of ADOPTED BY the board promulgated in14
compliance therewith WITH SUCH LAWS.15
(4) (a) (I) Every EACH licensed well construction contractor,16
LICENSED GROUND HEAT EXCHANGER CONTRACTOR , and licensed pump17
installation contractor in this state shall:18
(A) Pay to the board during the month of January of each year,19
beginning in the year immediately subsequent to his or her FOLLOWING20
THE LICENSEE'S initial licensing, a renewal fee of fifty dollars; shall21
(B) Concurrently file and
THEREAFTER maintain a new bond or22
letter of credit if required pursuant to this section; and shall
23
(C) Annually file a certificate of completion of continuing24
education as required pursuant to section 37-91-105 (7).25
(II) U
PON A LICENSEE'S SATISFACTION OF THE REQUIREMENTS26
DESCRIBED IN SUBSECTION (4)(a)(I) OF THIS SECTION, the secretary shall27
1165
-49- thereupon issue a renewal license for one year. The license of any well1
construction contractor,
GROUND HEAT EXCHANGER CONTRACTOR , or2
pump installation contractor who fails to have his or her
THEIR license3
renewed during the month of January in each year shall lapse. Any4
LAPSES. A lapsed license may be renewed, without reexamination, within5
a period of one year after such lapse IT LAPSES upon payment of all fees6
in arrears. Licensees A LICENSEE may elect to renew their licenses7
LICENSE and file and maintain a bond or letter of credit for a term of up8
to three years, paying fifty dollars for each year the license will be in9
effect.10
(b) T
HE BOARD SHALL NOT SET A LICENSE RENEWAL FEE11
DESCRIBED IN SUBSECTION (4)(a) OF THIS SECTION OR A RIG REGISTRATION12
FEE DESCRIBED IN SUBSECTION (5) OF THIS SECTION IN AN AMOUNT13
GREATER THAN IS NECESSARY TO FURTHER THE PURPOSES OF THIS ARTICLE14
91.
THE AMOUNT MUST NOT CAUSE THE TOTAL AMOUNT OF MONEY15
COLLECTED UNDER THIS ARTICLE 91 TO EXCEED THE DIRECT AND INDIRECT16
COSTS OF THE BOARD IN ADMINISTERING THIS ARTICLE 91.17
(4.5) A licensee shall maintain the amount of financial18
responsibility required by subsections (2), (3), and (4) of this section for19
the life
DURATION of the license for which the financial responsibility is20
required. The license of any well construction contractor,
GROUND HEAT21
EXCHANGER CONTRACTOR , or pump installation contractor who fails to22
maintain such financial responsibility shall lapse
LAPSES. A LAPSED23
license that has so lapsed may be reinstated upon THE LICENSEE'S24
submission of current evidence of the required financial responsibility to25
the board and payment to the board of a one-hundred-dollar reinstatement26
fee
IN THE AMOUNT OF ONE HUNDRED DOLLARS .27
1165
-50- (5) The board shall charge an annual registration fee of ten dollars1
for each well drilling or RIG, GROUND HEAT EXCHANGER INSTALLATION2
RIG, AND pump installation rig to be operated in the state. of Colorado.3
(6) The board shall no later than January 7, 2007, develop4
MAINTAIN a continuing education program in conjunction with the5
Colorado water well contractors association or any analogous or6
successor organization.7
SECTION 24. In Colorado Revised Statutes, 37-91-108, amend8
(1) introductory portion, (1)(d), (1)(f), (1)(g), (1)(h), (3), (4), and (5) as9
follows:10
37-91-108. Denial, revocation, or suspension of license. (1) The11
board, by an affirmative vote of three AT LEAST FOUR of its five SIX12
members, may withhold, deny, revoke, or suspend any license issued or13
applied for in accordance with the provisions of this article THIS ARTICLE14
91, upon proof that the licensee or applicant:15
(d) Has Knowingly constructed a well, INSTALLED A GROUND16
HEAT EXCHANGER, or installed pumping equipment without a valid17
permit;18
(f) Has Used fraud or deception in collecting fees from persons19
with whom he has THE LICENSEE contracted for well construction,20
GROUND HEAT EXCHANGER INSTALLATION , or pump installation;21
(g) Has Failed to submit a well completion report or a pump22
installation report pursuant to the requirement therefor in REPORT23
REQUIRED BY the rules and regulations of the board;24
(h) Has Authorized a person not directly employed or directly25
supervised by the licensee to construct wells,
INSTALL GROUND HEAT26
EXCHANGERS, or install pumping equipment under the authority of the27
1165
-51- licensee's license; or1
(3) A hearing upon a complaint may be initiated only if the2
complaint was filed with the board within two years of AFTER the filing3
of the completion report for the well,
GROUND HEAT EXCHANGER , or4
pumping equipment, the construction or installation of which formed the5
basis of the complaint. If no completion report was filed, a hearing upon6
the complaint may be initiated only if the complaint was filed with the7
board within two years of
AFTER the discovery of the violation or defect8
that constituted the grounds for the complaint.9
(4) The board may order the nondestructive investigation,10
abandonment, repair, drilling, redrilling, casing, recasing, deepening, or11
excavation of a well
OR GROUND HEAT EXCHANGER to protect12
groundwater resources and the public health if the board finds such
THE13
action to be necessary to correct violations of article 90 of this title TITLE14
37, this article ARTICLE 91, or the rules promulgated ADOPTED by the15
board pursuant to this article ARTICLE 91.16
(5) The board may assess fines of not less than AT LEAST fifty17
dollars nor more than one thousand dollars for violations of article 90 of18
this title TITLE 37, this article ARTICLE 91, or the rules promulgated19
ADOPTED by the board pursuant to this article ARTICLE 91 for each such20
violation. Such THE fines shall be transmitted to the state treasurer, who21
shall credit them CREDITED to the well inspection cash fund created in22
section 37-80-111.5.23
SECTION 25. In Colorado Revised Statutes, 37-91-109, amend24
(1) as follows:25
37-91-109. Further scope of article - orders - penalties.26
(1) (a) In addition to the licensing of well construction contractors, and27
1165
-52- pump installation contractors as required by this article, no A well OR1
GROUND HEAT EXCHANGER shall NOT be located, constructed, repaired, or2
abandoned and no pumping equipment shall NOT be installed or repaired3
contrary to the provisions of this article THIS ARTICLE 91 and applicable4
rules of the board promulgated ADOPTED to effectuate the purposes of this5
article ARTICLE 91.6
(b) The board may by order require any A licensee, private driller,7
or private pump installer to remedy any such noncompliant installation,8
construction, or repair and may, pursuant to rules and after due notice and9
a hearing, impose penalties for such noncompliance.10
(c) The provisions of this article shall apply THIS ARTICLE 9111
APPLIES to:12
(I) Any well or any pumping equipment
THAT IS not otherwise13
subject to regulation under the laws of this state; and to
14
(II) Any distribution, observation, monitoring, or dewatering of15
water therefrom; but this article shall FROM ANY SUCH WELL OR PUMPING16
EQUIPMENT; EXCEPT THAT THIS ARTICLE 91 DOES not apply to any17
distribution of water beyond the point of discharge from the pressure tank18
or to any distribution of water beyond the point of discharge from the19
pumping equipment if no pressure tank or an overhead pressure tank is20
employed.21
(d) T
HIS ARTICLE 91 APPLIES TO ANY GROUND HEAT EXCHANGER22
THAT IS NOT OTHERWISE SUBJECT TO REGULATION UNDER THE LAWS OF23
THIS STATE; EXCEPT THAT THIS ARTICLE 91 DOES NOT APPLY TO ANY24
DISTRIBUTION OF HEAT -TRANSFER FLUID BEYOND THE POINT OF25
TRANSITION BETWEEN THE GROUND HEAT EXCHANGER PIPING OR GROUND26
HEAT EXCHANGER MANIFOLD AND THE DISTRIBUTION LINES FROM THE27
1165
-53- GROUND HEAT EXCHANGER MANIFOLD .1
SECTION 26. In Colorado Revised Statutes, 37-91-110, amend2
(1) introductory portion, (2), and (3); and add (1)(c) as follows:3
37-91-110. Basic principles and minimum standards. (1) The4
following basic principles, general in scope and fundamental in character,5
shall govern the construction, repair, or abandonment of any A well; THE6
INSTALLATION, REPAIR, OR ABANDONMENT OF A GROUND HEAT7
EXCHANGER; and the installation or repair of any pumping equipment:8
(c) A
GROUND HEAT EXCHANGER SHALL BE :9
(I) L
OCATED IN A MANNER THAT CONSIDERS THE PHYSICAL10
LIMITATIONS OF THE LAND AREA AND THE PROXIMITY TO OTHER ELEMENTS11
THAT MIGHT AFFECT THE TYPE AND CONFIGURATION OF THE GR OUND HEAT12
EXCHANGER; AND13
(II) I
NSTALLED OR ABANDONED IN A M ANNER THAT MAINTAINS14
NATURAL PROTECTION AGAINST POLLUTION OF WATER -BEARING15
FORMATIONS AND EXCLUDES KNOWN SOURCES OF CONTAMINATION .16
(2) The board shall adopt and may, from time to time, amend rules17
and regulations
reasonably necessary to insure ENSURE the proper18
construction or proper abandonment of wells,
THE PROPER INSTALLATION19
OR PROPER ABANDONMENT OF GROUND HEAT EXCHANGERS , and the20
proper installation of pumping equipment. The board has the authority to
21
MAY require the filing of information and reports relating to the22
construction or abandonment of wells,
THE INSTALLATION OR23
ABANDONMENT OF GROUND HEAT EXCHANGERS , and the installation of24
pumping equipment whenever
IF it may deem DEEMS such action to be25
necessary.26
(3) All wells
AND GROUND HEAT EXCHANGERS shall be27
1165
-54- constructed or abandoned and all pumping equipment shall be installed1
in compliance with this article ARTICLE 91 and with the rules and2
regulations promulgated ADOPTED by the board.3
SECTION 27. In Colorado Revised Statutes, 37-91-111, amend4
(1) and (3) as follows:5
37-91-111. Violations and penalties. (1) It is unlawful:6
(a) For any person AN INDIVIDUAL to represent himself THEMSELF7
as a well construction contractor,
GROUND HEAT EXCHANGER8
CONTRACTOR, or a pump installation contractor who
IF THE INDIVIDUAL9
is not licensed under this article ARTICLE 91 or to so represent himself10
after his THE INDIVIDUAL'S license has been suspended or revoked or has11
lapsed;12
(b) For any person AN INDIVIDUAL WHO IS not licensed under this13
article ARTICLE 91 to advertise or issue any sign, card, or other device14
which would indicate that he THAT INDICATES THE INDIVIDUAL is a well15
construction contractor,
GROUND HEAT EXCHANGER CONTRACTOR , or a16
pump installation contractor;17
(c) For any person
AN INDIVIDUAL WHO IS not licensed or whose18
license is suspended to construct wells unless he THE INDIVIDUAL is a19
private driller or directly employed by or under the supervision of a20
licensed well construction contractor;21
(d) For any person AN INDIVIDUAL WHO IS not licensed or whose22
license is suspended to install pumping equipment unless he THE23
INDIVIDUAL is a private pump installer or directly employed by or under24
the supervision of a licensed pump installation contractor, except as25
excluded pursuant to DESCRIBED IN section 37-91-106 (4); or26
(d.5) F
OR AN INDIVIDUAL WHO IS NOT LICENSED OR WHOSE27
1165
-55- LICENSE IS SUSPENDED TO INSTALL A GROUND HEAT EXCHANGER UNLESS1
THE INDIVIDUAL IS DIRECTLY EMPLOYED BY OR UNDER THE SUPERVISION2
OF A LICENSED GROUND HEAT EXC HANGER CONTRACTOR , EXCEPT AS3
DESCRIBED IN SECTION 37-91-105 (8); OR4
(e) For any person AN INDIVIDUAL to otherwise violate any of the5
provisions of this article THIS ARTICLE 91.6
(3) Any IN ADDITION TO ANY PENALTY ASSESSED PURSUANT TO7
SUBSECTION (2) OF THIS SECTION, A person who violates any provision of8
subsection (1) of this section shall also be IS subject to a civil penalty9
assessed by the court of not less than one hundred dollars nor more than10
five thousand dollars for each such violation. All civil penalties collected11
under this subsection (3) shall be transmitted to the state treasurer, who12
shall credit the same CREDITED to the well inspection cash fund created13
in section 37-80-111.5.14
SECTION 28. In Colorado Revised Statutes, 37-91-113, amend15
(1), (2) introductory portion, (2)(a), (3) introductory portion, (3)(a), (3)(e),16
and (3)(f) as follows:17
37-91-113. Well inspection program. (1) The state engineer18
shall monitor compliance with this article ARTICLE 91, including by19
inspecting water well construction,
GROUND HEAT EXCHANGER20
INSTALLATION, and pump installation, and THE STATE ENGINEER may21
employ inspectors for such
THIS purpose. The costs of such monitoring22
and inspection shall be paid from the well inspection cash fund created23
by IN section 37-80-111.5.24
(2) Inspectors shall have the following qualifications, but need not25
be licensed pursuant to this article ARTICLE 91:26
(a) Knowledge of proper well construction,
GROUND HEAT27
1165
-56- EXCHANGER INSTALLATION , and pump installation techniques and1
practices;2
(3) Inspectors shall annually spend a majority of their time3
conducting field inspections and a minority of their time preparing and4
evaluating reports and related office work. Duties shall include the5
following:6
(a) Well construction,
GROUND HEAT EXCHANGER INSTALLATION ,7
and pump installation inspection and observation;8
(e) Field inspections of existing wells,
GROUND HEAT9
EXCHANGERS, and pumps;10
(f) Field inspections of well,
GROUND HEAT EXCHANGER , and hole11
plugging and abandonment; and12
SECTION 29.
In Colorado Revised Statutes, 24-1-124, amend13
(4)(d) as follows:14
24-1-124. Department of natural resources - creation -15
divisions. (4) The division of water resources includes the following:16
(d) The state board of examiners of water well construction and17
pump installation AND GROUND HEAT EXCHANGER contractors created in18
article 91 of title 37 SECTION 37-91-103. The state board of examiners of19
water well construction and pump installation AND GROUND HEAT20
EXCHANGER contractors is a type 1 entity, as defined in section 24-1-105,21
and exercises its powers and performs its duties and functions under the22
department of natural resources and is allocated to the division of water23
resources as a section thereof OF THE DIVISION OF WATER RESOURCES .24
SECTION 30. In Colorado Revised Statutes, 24-33-104, amend25
(1)(e) introductory portion and (1)(e)(IV) as follows:26
24-33-104. Composition of the department. (1) The department27
1165
-57- of natural resources consists of the following commissions, divisions,1
boards, offices, and councils:2
(e) The division of water resources, the head of which shall be IS3
the state engineer. The division shall consist CONSISTS of the following4
sections:5
(IV) The state board of examiners of water well construction and6
pump installation AND GROUND HEAT EXCHANGER contractors.7
SECTION 31. Act subject to petition - effective date. This act8
takes effect at 12:01 a.m. on the day following the expiration of the9
ninety-day period after final adjournment of the general assembly; except10
that, if a referendum petition is filed pursuant to section 1 (3) of article V11
of the state constitution against this act or an item, section, or part of this12
act within such period, then the act, item, section, or part will not take13
effect unless approved by the people at the general election to be held in14
November 2026 and, in such case, will take effect on the date of the15
official declaration of the vote thereon by the governor.16
1165
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