2 Colo. Code Regs. § 404-1-1309

Current through Register Vol. 47, No. 19, October 10, 2024

Section 2 CCR 404-1-1309 - GEOTHERMAL RESOURCE UNITS

a.Procedural Requirements.

(1) Operators will submit permit applications for Geothermal Resource Units either simultaneously with or subsequent to submission of a corresponding permit application for Deep Geothermal Operations. It is the Commission's preference that permit applications for Deep Geothermal Operations and permit applications for Geothermal Resource Units be submitted simultaneously. In no event will an Operator submit a permit application for a Geothermal Resource Unit prior to submitting the corresponding permit application for Deep Geothermal Operations.

(2) All permit applications for Geothermal Resource Units will include the following information:

A. Certification that the Operator has complied with the Local Government siting disposition requirements.

B. Certification that the Operations in the Geothermal Resource Unit will be conducted in a reasonable manner to protect and minimize adverse impacts to public health, safety, and welfare, including the protection of the environment and wildlife resources.

C. The proposed unit boundary and interwell completion setback distances.

D. All existing Locations and associated Wells that are developing the same formation(s) in the application lands. The permit application will discuss what the Operator intends to do with the existing Locations and Wells.

E. The wellbore orientation for all Wells in the proposed unit.

F. Whether there are existing Geothermal Resource Units within the proposed application lands and what the disposition of the existing Geothermal Resource Units and Wells will be under the proposed permit application.

G. The approved production and injection rates for any existing Geothermal Resource Units and/or Wells that are developing the same formation(s) in the application lands, if applicable.

H. The Deep Geothermal Locations that are proposed for the unit. If an Operator previously submitted a permit application for Deep Geothermal Operations, the Operator will identify the document number for the Form 2G. If the Form 2G has already been approved, the Operator will identify its Location ID number.

I. The total number of proposed Wells for the unit.

J.Unit Plan. A unit plan which describes how the Geothermal Resource Unit will be operated in a manner which encourages sustainable use of the Geothermal Resource. The unit plan will include the Operator's plan for equitable compensation to any impacted owner of an Allocated Geothermal Resource to be included in the proposed Geothermal Resource Unit. The unit plan will include the Operator's plan for controlling the quantity of Geothermal Fluids extracted, including any plans to reinject Geothermal Fluids.

K.Unit Area of Review. The application will include a review of all existing Wells within the unit area and within 1/4 mile of the unit boundary, describing existing isolation of injection zones, oil and gas production formations, formations containing Geothermal Resources, confining layers, and Underground Sources of Drinking Water.

L. Any additional information that may be required to support the requested prayer for relief.

M. All prior orders that implicate the prayer for relief.

N. Certification that satisfies the requirements of Rule 505.a.

O. For at least one portion of a geothermal tract within the proposed unit, documentation showing the applicant's status as an Owner within the unit. Acceptable forms of documentation include, but are not limited to:

i. Geothermal and/or nontributary water deed or memorandum;

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

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

P. For federal Geothermal Resources, certification that the Operator will comply with any applicable federal unit agreement or communitization agreement requirements.

(3) Operators who can demonstrate ownership of all Geothermal Resources to be impacted by the proposed Deep Geothermal Operations are not required to comply with the equitable compensation information requirements.

(4) Deep Geothermal Operators will provide notice of its permit application for a Geothermal Resource Unit to all Geothermal Resource owners whose Geothermal Resources will be impacted by the proposed Geothermal Resource Unit. The Deep Geothermal Operator will provide such notice within 7 days of the completeness determination required pursuant to Rule 1309.b. and 1305.d. The notice required by this Rule 1309.a.(4) will include:

A. An introductory letter including:

i. The Deep Geothermal Operator's contact information including its electronic mail address, phone number, and physical address(es) to which the public may direct questions and comments;

ii. The contact information for the Relevant Local Government;

iii. The Commission's website address and main telephone number;

iv. The location of all proposed or permitted Deep Geothermal Wells and Locations; and

v. The anticipated date that each phase of operations will commence (by month and year).

B. A copy of the Unit Plan required by Rule 1309.a.(2).J.;

C. The document number(s) assigned to the permit application for the Geothermal Resource Unit; and

D. Information about the Commission's public comment process and the relevant deadlines pursuant to Rule 1305.d.

E. The notice required by this Rule 1309.a.(4) will comply with the procedure for providing notice described at Rule 303.e.(3).

b.Consideration and Approval or Denial. Permit applications for Geothermal Resource Units are subject to the notice of completeness and public comment period provisions of Rule 1305.d. Approval or denial of the permit application for Geothermal Resource Units is subject to the approval or denial provisions of Rule 1305.e.

c.Forms. For permit applications for Geothermal Resource Units filed simultaneously with the underlying permit application for Deep Geothermal Operations, the applicant will include the required information as an attachment to the Form 2. For permit applications for Geothermal Resource Units filed subsequent to an approved permit for Deep Geothermal Operations, the applicant will include the required information on a Form 4.

d.Amending Existing Unit. The Deep Geothermal Operator will submit a Form 4 to amend the boundaries of the Geothermal Resource Unit if, upon review of technical testimony or data, the Deep Geothermal Operator or Director determines the impacted Geothermal Resources do not correspond with the established unit boundaries. The Deep Geothermal Operator will comply with Rule 1309.a.(4).A - C. and E., to provide notice to those Geothermal Resource owners whose Geothermal Resources will be included or excluded as a result of the amendment.

2 CCR 404-1-1309

47 CR 17, September 10, 2024, effective 9/30/2024