1. (1)

   1. (a)

      1. (I) The state engineer and the state board of examiners of water well and ground heat exchanger contractors created in section 37-91-103 have the authority to regulate shallow geothermal operations and may adopt rules that regulate shallow geothermal operations.
      2. (II) Before constructing a test bore, ground heat exchanger, monitoring well, or production well or reworking an existing well associated with shallow geothermal operations, a person shall obtain an operations permit from the state engineer.
      3. (III) The state engineer may adopt rules for the assessment of reasonable fees for the processing and issuance of a permit pursuant to subsection (1)(a)(II) of this section.
      4. (IV) The state engineer shall maintain a tributary geothermal notification list for each water division.

      5. (V)

         1. (A) An applicant for a new geothermal well permit withdrawing tributary groundwater at a rate greater than fifty gallons per minute shall provide a copy of the application by electronic mail to all parties that have subscribed to the tributary geothermal notification list for the water division in which the well will be located and shall file proof of such notice with the state engineer.
         2. (B) The state engineer shall allow the owners or operators of prior geothermal operations, vested water rights, or wells thirty-five days after the date of the electronic mailing of the notice to submit a claim of material injury. Any such claim may request conditions to be imposed upon the well permit in order to prevent such injury and provide other information to be considered by the state engineer in reviewing the application.
         3. (C) If an applicant proposes a geothermal well withdrawing tributary groundwater at a rate greater than fifty gallons per minute, and the proposed well is in a hydrogeologic setting where it has the potential to materially injure a historic hot spring, the applicant shall provide geologic and hydrologic evidence to be considered by the state engineer. The evidence must demonstrate that the proposed well will not materially injure the historic hot spring. The state engineer shall amend the geothermal rules adopted pursuant to subsection (1)(a)(I) of this section to implement the requirements of this subsection (1)(a)(V)(C).

   2. (b)

      1. (I) The commission has the exclusive authority to regulate deep geothermal operations and may adopt rules that regulate deep geothermal operations.
      2. (II) Prior to constructing a well associated with deep geothermal operations, the owner or operator of the well shall obtain an operations permit from the commission.

      3. (III) In issuing an operations permit pursuant to subsection (1)(b)(II) of this section, the commission:

         1. (A) May allow for the use of groundwater pursuant to section 37-90-137 (7.5)(a) as a material medium for allocated geothermal resources that have been determined to be nontributary pursuant to section 37-90.5-107 (1)(b); and
         2. (B) Shall make a finding based upon available data that the proposed operation will not materially injure a prior geothermal operation; and
         3. (C) Shall require each applicant for a permit concerning deep geothermal operations to provide notice of the application to the designated individuals of prior geothermal operations registered pursuant to subsection (7) of this section and located within one-fourth of a mile of the proposed deep geothermal operations.
      4. (IV) The commission may adopt rules for the assessment of reasonable fees for the processing and issuance of a permit pursuant to subsection (1)(b)(II) of this section.
   3. (c) As used in this section, unless the context otherwise requires, material injury to a prior geothermal operation includes injury to any aspect of the vested water rights of a prior geothermal operation, which may include water quantity, pressure, rate of flow, mineral content, or temperature. Regardless of whether water quantity, pressure, rate of flow, mineral content, or temperature are decreed, material injury to a prior geothermal operation also includes diminution or alteration of any such parameter that results in an adverse effect to a prior geothermal operation.

2. (2)

   1. (a) In exercising its regulatory authority pursuant to subsection (1)(b) of this section, the commission shall adopt rules that:

      1. (I) Protect public health, safety, and welfare, including the protection of the environment and wildlife resources; and
      2. (II) Avoid, minimize, or mitigate adverse impacts on disproportionately impacted communities.

   2. (b)

      1. (I) The commission shall not issue an operations permit pursuant to subsection (1)(b)(II) of this section unless the applicant provides evidence to the commission that:

         1. (A) The applicant has filed an application with the local government with jurisdiction to approve the siting of the proposed deep geothermal operations, including the local government's disposition of the application; or
         2. (B) The local government with jurisdiction to approve the siting of the proposed deep geothermal operations does not regulate the siting of deep geothermal operations.
      2. (II) Upon request by a local government, the commission shall provide technical support to the local government concerning the implementation of the commission's rules pursuant to this section or the implementation by the local government of the commission's rules.
   3. (c) The commission may enforce rules adopted pursuant to this subsection (2) in accordance with section 34-60-121.
3. (3) Where the maintenance of underground pressures, the prevention of subsidence, or the disposal of brines is necessary, reinjection of geothermal fluid or water may be required by the state engineer or the commission.
4. (4) The commission shall transfer all fees collected for permits issued by the commission pursuant to subsection (1)(b)(IV) of this section to the state treasurer, who shall credit the fees to the energy and carbon management cash fund created in section 34-60-122 (5).
5. (5) Notwithstanding any provision of this section to the contrary, nothing in this section affects the ownership, administration, or determination of water rights or rights to nontributary groundwater.

6. (6)

   1. (a) Except as set forth in subsection (6)(b)(II) of this section, the commission is responsible for administering and enforcing any permits issued by the state engineer pursuant to this section that cover deep geothermal operations.

   2. (b) The state engineer or the state board of examiners of water well and ground heat exchanger contractors may exercise any power, duty, function, or obligation necessary to issue, administer, and enforce any permits or licenses that cover:

      1. (I) Shallow geothermal operations; and
      2. (II) The use of geothermal fluid in deep geothermal operations pursuant to section 37-90.5-107, except for deep geothermal operations subject to section 37-90-137 (7.5)(a).

7. (7)

   1. (a) An owner or operator of a prior geothermal operation, or a government entity with an interest in the public's enjoyment of a noncommercial geothermal hot spring, shall register with the state engineer:

      1. (I) The location of the prior geothermal operation; and
      2. (II) Designated individuals to receive electronic mail notifications from the state engineer and the commission as described in section 37-90-137 (2) and subsection (1)(b)(III)(C) of this section.
   2. (b) The state engineer shall add the designated individuals to the tributary geothermal notification list described in subsection (1)(a)(IV) of this section for the water division in which the prior geothermal operation is located.

Source: L. 83: Entire article added, p. 1421, § 1, effective June 10. L. 2003: (1) amended, p. 47, § 7, effective (see editor's note). L. 2023: Entire section R&RE, (SB 23-285), ch. 235, p. 1237, § 8, effective July 1. L. 2025: (1)(a)(I), (1)(a)(II), (1)(b)(III), (3), and (6) amended and (1)(a)(IV), (1)(a)(V), (1)(c), (2)(c), and (7) added, (HB 25-1165), ch. 257, p. 1306, § 14, effective August 6.

Editor's note: (1) Section 10 of chapter 7, Session Laws of Colorado 2003, provides for an effective date of March 1, 2003; however, the Governor did not sign the act until March 5, 2003.

(2) Subsection (1)(a)(II) provided for the repeal of subsection (1)(a), effective July 1, 2006. (See L. 2003, p. 47.)

Cross references: For the legislative declaration contained in the 2003 act amending subsection (1), see section 1 of chapter 7, Session Laws of Colorado 2003. For the legislative declaration in HB 25-1165, see section 1 of chapter 257, Session Laws of Colorado 2025.