Code of Colorado Regulations
400 - Department of Natural Resources
404 - Oil and Gas Conservation Commission
2 CCR 404-1 - PRACTICE AND PROCEDURE
Section 1305 - PERMITTING OF DEEP GEOTHERMAL OPERATIONS

Universal Citation: 2 CO Code Regs 404-1 ยง 1305

Current through Register Vol. 47, No. 17, September 10, 2024

a. General Provisions. Prior to commencing Deep Geothermal Operations or drilling a Geothermal Science Well, a Deep Geothermal Operator will obtain the Director's or Commission's approval of a permit for Deep Geothermal Operations.

b. Permit for Deep Geothermal Operations. A permit application for Deep Geothermal Operations will include with the following:

(1) For at least one portion of a geothermal tract within the proposed area, documentation showing the applicant's status as an Owner within the area. Acceptable forms of documentation include, but are not limited to:
A. Geothermal and/or nontributary water deed or memorandum;

B. Geothermal and/or nontributary water lease or memorandum; or

C. Any other agreement confirming the applicant's right to drill into and produce a Geothermal Resource, or a memorandum of such agreement.

(2) Form 2 Required. The Operator will submit a Form 2, Application and Permit to Drill, for the proposed Deep Geothermal Well(s). The Form 2 will include the following requirements, including those described in the Rules incorporated below by reference:
A. Rule 308.b.(1) - Distances to nearest building, Building Unit, public road, above ground utility, railroad, and property line;

B. A wellbore diagram;

C. Details of the proposed work;

D. Rule 308.b.(4) - Well location plat;

E. Rule 308.b.(5) - Deviated drilling plan;

F. Rule 308.b.(6) - Casing and cementing plan;

G. Rule 308.b.(7) - Statewide offset well evaluation; and

H. Rule 308.b.(8) - Hydraulic fracturing treatment at depths 2,000 feet or less.

I. A Form 2 for a Geothermal Injection Well will include those information requirements found at Rules 803.g.(5), (6), (9), & (10).

J. With their Form 2, Operators will state whether the proposed Well is subject to the requirements of § 24-65.1-108, C.R.S., because it is located in an area designated as one of state interest.

K. A Form 2 to Convert an existing Well will include a demonstration of appropriate logging and/or mechanical testing as approved by the Director, pursuant to Rule 1311.f.(2).

(3) Form 2G Required. The Operator will submit a Form 2G for the proposed Deep Geothermal Location(s). The Form 2G will include the following requirements, including those described in the Rules incorporated below by reference:
A. Rule 1303.b. - Local Government siting information;

B. Rule 304.b.(3) - Cultural Distances;

C. Rule 304.b.(4) - Location pictures;

D. Rule 304.b.(5) - Site equipment list;

E. Rule 304.b.(6) - Geothermal Flowline and Off-Location Flowline Descriptions;

F. Rule 304.b.(7). A - Location drawings;

G. Rule 304.b.(7). B - Layout drawings, as they pertain to the proposed Deep Geothermal Location(s), except those describing Well completion and stimulation, hydraulic fracturing, or Flowback;

H. Rule 304.b.(7).C - Wildlife habitat drawing;

I. Rule 304.b.(7). D. - Preliminary process flow diagrams;

J. Rule 304.b.(7). E - Hydrology map;

K. Rule 304.b.(7). F - Access Road map;

L. Rule 304.b.(7). G - Related location and flowline map;

M. Rule 304.b.(7).H - Directional Well plat, if one or more Deep Geothermal Well(s) proposed for the Location are directional rather than vertical;

N. Rule 304.b.(7). I - Geologic Hazard map;

O. Rule 304.b.(7). J - Disproportionately Impacted Community map;
i. If the proposed Deep Geothermal Location is within 2,000 feet of a Residential Building Unit, High Occupancy Building Unit, or School Facility located within a Disproportionately Impacted Community, the applicant will:
aa. Comply with Rule 304.c.(20). B. and C. by providing a community outreach plan;

bb. In developing the community outreach plan required by this Rule 1305.b.(3). O., the applicant will consult with the Commission's community liaison to identify local community organizations representative of the potentially impacted communities. If the community liaison identifies such local community organizations, the applicant will coordinate with such organization(s) to distribute necessary and relevant notice and information to the community;

cc. Deep Geothermal Operators are encouraged to develop and disseminate educational materials on geothermal technology and project-specific information as part of its community outreach; and

dd. Include a proposed plan for how the Deep Geothermal Operator will avoid, minimize, or mitigate adverse impacts of drilling and production operations upon the Disproportionately Impacted Community;

P. Rule 304.b.(8) - Geographic information system ("GIS") data;

Q. Rule 304.b.(9) - Land use description;

R. Rule 304.b.(10) - NRCS map unit description;

S. Rule 304.b.(11) - Best Management Practices;

T. Rule 304.b.(12) - Surface Owner information;

U. Rule 304.b.(13) - Proximate Local Government information;

V. Rule 304.b.(14) - Wetlands;

W. Rule 304.b.(15) - Schools and Child Care Centers;

X. Rule 304.c.(1) - Emergency spill response program, if construction and/or drilling operations are proposed within 2,640 feet of a GUDI or Type III Well;

Y. Rule 304.c.(2) - Noise mitigation plan;

Z. Rule 304.c.(3) - Light mitigation plan;

AA. Rule 304.c.(4) - Odor mitigation plan (if within 2,000 feet of a Residential Building Unit);

BB. Rule 304.c.(5) - Dust mitigation plan;

CC. Rule 304.c.(6) - Transportation plan, if the Relevant Local Government requires it;

DD. Rule 304.c.(7) - Operations safety management program,

EE. Rule 304.c.(8) - Emergency response plan,

FF. Rule 304.c.(9) - Flood shut-in plan, if in a Floodplain;

GG. Rule 304.c.(10) - Hydrogen sulfide drilling operations plan, if H2S is anticipated;

HH. Rule 304.c.(11) - Waste management plan, specific to construction, drilling, any data gathering operations, and for any subsequent Well statuses such as Shut-In or Temporarily Abandoned until the Well is either re-permitted or Plugged and Abandoned;

II. Rule 304.c.(14) - Topsoil protection plan;

JJ. Rule 304.c.(15) - Stormwater management plan;

KK. Rule 304.c.(16) - Interim Reclamation plan;

LL. Rule 304.c.(17) - Wildlife plan;

MM. Rule 304.c.(18) - Water plan;

NN. Rule 304.c.(21) - Geologic Hazard plan, if any Geologic Hazards are identified/confirmed on the Geologic Hazard Map;

OO. Details on the end use of the operations including:
i. Whether the Operator will utilize the Geothermal Resources to produce or store mechanical or thermal energy, and if so, details of the process(es) that the Operator will employ to produce or store such energy, the anticipated amount of energy to be produced or stored expressed in joules or megawatts, and the ultimate disposition of any energy to be produced or stored;

ii. Whether the Operator will utilize the Geothermal Resources for heating buildings or other structures or infrastructure, and if so, the details of how the Operator will transport the Geothermal Resource to the ultimate use point;

iii. Any other end use contemplated by the Deep Geothermal Operations including details on how the Operator will achieve such end use; and

iv. Whether the Operator will extract minerals from Geothermal Fluids and the Operator's plan for disposition of those extracted minerals;

PP. Whether the Deep Geothermal Operations contemplate reinjection of fluids, and if so, the number of reinjected fluids anticipated;

QQ. Any surface facilities the Operator anticipates locating on the Deep Geothermal Location; and

RR. Evidence or certification that the Deep Geothermal Operator has a right to construct a Deep Geothermal Location at the proposed site. Such requirement can be satisfied with:
i. A redacted version of any written agreement between the Deep Geothermal Operator and the surface owner including a Surface Use Agreement, a geothermal and/or nontributary water lease, or other written agreement which includes authorization from the surface owner to construct the Deep Geothermal Location at the proposed site, a description of the lands subject to the agreement, signatures of the parties to the agreement, dates of signature, and any provisions of the agreement that are relevant to the Form 2G; or

ii. Certification that the Deep Geothermal Operator has a right to construct pursuant to § 37-90.5-105, C.R.S.

(4) As to the Form 2G requirements described in Rule 1305.b.(3), a Deep Geothermal Operator may omit an informational requirement of the Form 2G if the required information is not applicable. The Deep Geothermal Operator will include an explanation of why the information is not applicable. Nothing in this Rule 1305.b.(4) precludes the Director or Commission from requiring the applicant to submit information otherwise required by Rule 1305.b.(3) because the Director or Commission determines that the information is applicable.

c. The applicant may submit substantially equivalent information or plans developed through a Local Government land use process or a federal agency permitting or leasing process in lieu of providing information required by this Rule 1305. Nothing in this Rule 1305.c. precludes the Director or Commission from requiring the applicant to submit information otherwise required by Rule 1305. because the Director or Commission determines that the information developed through the Local Government land use process or federal agency permitting or leasing process must be supplemented.

d. Notice of Completeness and Public Comment. When the Director determines that the application for Deep Geothermal Operations is complete, the Director will post the application and supporting materials to the Commission's website and will notify the Relevant and Proximate Local Government. The website posting will provide:

(1) The date by which public comments must be received to be considered, which is:
A. 60 days from the date the permit application for Deep Geothermal Operations is posted if the permit application for Deep Geothermal Operations includes any proposed Deep Geothermal Location(s) within 2,000 feet of a Residential Building Unit, High Occupancy Building Unit, or School Facility within a Disproportionately Impacted Community; and

B. 30 days from the date the permit application for Deep Geothermal Operations was posted for all other permit applications for Deep Geothermal Operations; and

(2) The mechanism for the public to provide comments.

e. Consideration and Approval or Denial. Upon closure of the public comment period, the Director will review all public comments and consultative documents received:

(1) If appropriate, the Director may administratively issue a conditional approval of the permit for Deep Geothermal Operations.

(2) The Director will inform the Commission and Relevant and Proximate Local Governments when the Director issues a conditional approval of the permit for Deep Geothermal Operations.

(3) The Director's conditional approval will become final 10 days after the Director issues a conditional approval, unless the Commission stays the conditional approval on its own motion.

(4) If the Director determines that there are circumstances that warrant the permit application for Deep Geothermal Operations going before the Commission for a special hearing, the Director will issue a director's recommendation pursuant to Rule 306 and will work with the applicant to schedule the hearing as soon as possible.

f. Specific Provisions for Geothermal Science Wells.

(1) The provisions of this Rule 1305 apply to permit applications for Geothermal Science Wells, except that applicants may omit the following listed provisions from the permit application:
A. Rule 1305.b.(3). I. - Preliminary process flow diagrams;

B. Rule 1305.b.(3). L. - Related location and flow line map;

C. Rule 1305. b.(3).OO. - Details of the end use of the operations; and

D. Rule 1305.b.(3). PP. - Reinjection of fluids.

(2) Permit applications for Geothermal Science Wells will include the following provisions specific to Geothermal Science Wells:
A. A general description of the timing, duration, and types of tests that may be run in the wellbore for scientific purposes;

B. A general description of the reason for the scientific well and its potential future use;

C. Flow Testing for Geothermal Information or Development. A flow test for each Geothermal Science Well will be conducted for a continuous period of not less than 72 hours unless the Director specifies or approves a different period of time. Such flow testing will not exceed a cumulative total of 7 days unless the Director has granted prior written approval of additional testing. DWR may impose other test requirements as deemed necessary. Copies of any temperature records and any fluid sample analysis obtained from the testing will be submitted through a Form 4, Sundry Notice.
i. Discharge of Flow Testing Fluids- An Owner or Operator of a Geothermal Science Well is responsible for being knowledgeable about, and complying with, regulations for discharge. The Well owner shall also be responsible for obtaining and maintaining any necessary discharge permits required by WQCD.

D. Operators of Deep Geothermal Science Wells will comply with Rule 905.c.(2).D., when applicable.

Disclaimer: These regulations may not be the most recent version. Colorado may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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