C.R.S. § 37-90.5-101 Short title
37-90.5-101. Short title. This article shall be known and may be cited as the "Colorado Geothermal Resources Act".
Geothermal Resources
C.R.S. tit. 37, art. 90.5
in effectC.R.S. § 37-90.5-102 Legislative declaration
37-90.5-102. Legislative declaration. (1) The general assembly hereby declares that:
(a) The development of geothermal resources is in the public interest because it enhances local economies and provides an alternative to conventional fuel sources; and
(b) The development of geothermal resources should be undertaken in such a manner as to safeguard life, health, property, public welfare, and the environment, including wildlife resources; encourage the maximum economic recovery of each resource and prevent its waste; and protect associated correlative rights.
(c) Repealed.
C.R.S. § 37-90.5-103 Definitions
37-90.5-103. Definitions. As used in this article 90.5, unless the context otherwise requires:
(1) (a) "Allocated geothermal resource" means any geothermal resource that is associated with nontributary groundwater.
(b) "Allocated geothermal resource" does not include groundwater in the Denver basin aquifers.
(2) "Commission" means the energy and carbon management commission created in section 34-60-104.3 (1).
(3) (a) "Deep geothermal operation" means any exploration for or production of:
(I) Allocated geothermal resources; or
(II) Geothermal resources that are deeper than two thousand five hundred feet below the surface.
(b) (I) "Deep geothermal operation" includes the following activities related to the operation of a well:
(A) Conducting geophysical operations;
(B) Drilling test bores and monitoring wells;
(C) Siting;
(D) Installing and operating flowlines;
(E) Drilling;
(F) Deepening;
(G) Recompleting;
(H) Reworking;
(I) Repurposing; and
(J) Abandoning.
(II) "Deep geothermal operation" also includes any constructing, site preparing, disposing of geothermal wastes, or reclaiming activities associated with the activities described in subsection (3)(b)(I) of this section.
(c) "Deep geothermal operation" does not include:
(I) Any exploration or production activities associated with the groundwater in the Denver basin aquifers; or
(II) The use of any heat extracted with produced fluids in an oil and gas operation if the heat is only utilized to reduce emissions from the operation in the same location as the well from which it was produced and would otherwise not be economically feasible as a standalone geothermal resource project.
(4) "Denver basin aquifers" means the Dawson, Denver, Arapahoe, and Laramie-Fox Hills aquifers, as described in the rules adopted by the state engineer pursuant to section 37-90-137 (9)(a) and (9)(b).
(5) "Disproportionately impacted community" has the meaning set forth in section 24-4-109 (2)(b)(II).
(6) "Distributed geothermal resource" means any geothermal resource that is not an allocated geothermal resource.
(7) "Geothermal by-products" means dissolved or entrained minerals and gases that may be obtained from the material medium, excluding hydrocarbon substances and carbon dioxide.
(8) "Geothermal fluid" means naturally occurring groundwater, brines, vapor, and steam associated with a geothermal resource.
(9) "Geothermal resource" means the natural heat of the earth and includes:
(a) The energy that may be extracted from that natural heat;
(b) The material medium used to extract the energy from a geothermal resource; and
(c) Geothermal by-products.
(10) "Hot dry rock" means a geothermal resource that lacks sufficient geothermal fluid to transport commercial amounts of energy to the surface and that is not associated with an economically useful groundwater resource.
(11) "Local government" means a home rule or statutory county, municipality, or city and county.
(12) "Material medium" means geothermal fluid as well as any other substance used to transfer energy from a geothermal resource.
(13) "Nonconsumptive geothermal operation" means an operation using geothermal resources in which the volume of geothermal fluid extracted from an aquifer or formation is no more than the volume of the geothermal fluid reinjected in the same aquifer or formation over a reasonable time frame and distance.
(14) "Nontributary groundwater" has the meaning set forth in section 37-90-103 (10.5).
(15) "Shallow geothermal operation" means any geothermal operation that is not a deep geothermal operation.
(16) "Water right" has the meaning set forth in section 37-92-103 (12).
C.R.S. § 37-90.5-104 Ownership declaration
37-90.5-104. Ownership declaration. (1) Where a geothermal resource is found in association with geothermal fluid which is tributary groundwater, such geothermal resource is declared to be a public resource to which usufructuary rights only may be established according to the procedures of this article. No correlative property right to such a geothermal resource in place is recognized as an incident of ownership of an estate in land.
(2) The property right to a hot dry rock resource or a geothermal resource associated with nontributary groundwater is an incident of the ownership of the overlying surface, unless the property right is severed, reserved, or transferred with the subsurface estate expressly.
(3) Nothing in this section shall be deemed to derogate valid, existing property rights to geothermal resources which have vested prior to July 1, 1983. However, such property rights shall not be deemed vested absent the award of a decree for an application filed prior to June 10, 1983, pursuant to existing water law or the entering into of a geothermal lease prior to June 10, 1983, or unless utilizing facilities are actually in existence prior to July 1, 1983. A facility for utilization of geothermal resources shall be considered to be in existence if it is in actual operation or is undergoing significant construction activities prior to operation.
(4) Notwithstanding any provision of this section to the contrary, nothing in this section:
(a) Derogates the rights of a landowner to nontributary groundwater; or
(b) Affects any ownership or rights to a geothermal resource associated with nontributary groundwater, which resource is acquired before July 1, 2023.
(5) Notwithstanding any provision of this section to the contrary, geothermal resources associated with nontributary groundwater shall not be transferred separately from the nontributary groundwater.
C.R.S. § 37-90.5-105 Access - reasonable accommodation
37-90.5-105. Access - reasonable accommodation. (1) Geothermal leases may be awarded by the state board of land commissioners for lands under its jurisdiction through negotiation or by competitive bidding, but no such lease may be awarded prior to a public notice period of thirty-five days.
(2) Where the property right to a severable geothermal resource has been severed, reserved, or transferred with the subsurface estate, its owner may enter upon the overlying surface parcel at reasonable times and in a reasonable manner to prospect for and produce the energy from such resource, if adequate compensation is paid to the owner of the surface parcel for damages and disturbance in accordance with subsection (3) of this section. This right of entry shall not include the right to construct surface utilization facilities, and such facilities may be constructed only upon agreement with the surface owner in accordance with subsection (3) of this section.
(3) (a) (I) A developer of any type of geothermal resource shall develop the resource in a manner that accommodates the surface owner by minimizing intrusion upon and damage to the surface of the land.
(II) As used in this section, "minimizing intrusion upon and damage to the surface" means selecting alternative locations for wells, roads, pipelines, or heat exchange or generation facilities, or employing alternative means of operation, that prevent, reduce, or mitigate the impacts of the geothermal development on the surface, where such alternatives are technologically sound, economically practicable, and reasonably available to the developer.
(III) The standard of conduct set forth in this subsection (3) does not prevent a developer from entering upon and using that amount of the surface as is reasonable and necessary to explore for and develop the geothermal resource.
(IV) The standard of conduct set forth in this subsection (3) does not abrogate or impair a contractual provision that is binding on the parties and that expressly provides for the use of the surface for the development of geothermal resources or that releases the developer from liability for the use of the surface.
(b) A geothermal resource developer's failure to meet the requirements set forth in this subsection (3) or, if applicable, subsection (2) of this section, gives rise to a cause of action by the surface owner. Upon a determination by the trier of fact that such failure has occurred, a surface owner may seek compensatory damages or such equitable relief as is consistent with paragraph (a) of this subsection (3) or, if applicable, subsection (2) of this section.
(c) (I) In any litigation or arbitration based upon subsection (2) of this section or paragraph (a) of this subsection (3), the surface owner shall present evidence that the developer's use of the surface materially interfered with the surface owner's use of the surface of the land. After such showing, the developer bears the burden of proof of showing that it met the standard set out in paragraph (a) of this subsection (3) and, if applicable, subsection (2) of this section. If a developer makes that showing, the surface owner may present rebuttal evidence.
(II) An operator may assert, as an affirmative defense, that it has conducted geothermal resource development in accordance with a regulatory requirement, contractual obligation, or land use plan provision that specifically applies to the alleged intrusion or damage.
(d) Nothing in this section:
(I) Precludes or impairs any person from obtaining any and all other remedies allowed by law;
(II) Prevents a developer and a surface owner from addressing the use of the surface for geothermal resource development in a lease, surface use agreement, or other written contract; or
(III) Establishes, alters, impairs, or negates the authority of local and county governments to regulate land use related to geothermal resource development.
C.R.S. § 37-90.5-106 Regulation of geothermal resource operations - reinjection - fees - rules
37-90.5-106. Regulation of geothermal resource operations - reinjection - fees - rules. (1) (a) (I) The state engineer has the exclusive authority to regulate shallow geothermal operations and may adopt rules that regulate shallow geothermal operations.
(II) Prior to constructing a test bore, monitoring well, or production well or reworking an existing well associated with shallow geothermal operations, an operations permit must be obtained from the state engineer.
(III) The state engineer may adopt rules for the assessment of reasonable fees for the processing and issuance of a permit pursuant to subsection (1)(a)(II) of this section.
(b) (I) The commission has the exclusive authority to regulate deep geothermal operations and may adopt rules that regulate deep geothermal operations.
(II) Prior to constructing a well associated with deep geothermal operations, the owner or operator of the well shall obtain an operations permit from the commission.
(III) In issuing an operations permit pursuant to subsection (1)(b)(II) of this section, the commission may allow for the use of groundwater as part of nonconsumptive geothermal operations as a material medium for allocated geothermal resources that have been determined to be nontributary pursuant to section 37-90.5-107 (1)(b).
(IV) The commission may adopt rules for the assessment of reasonable fees for the processing and issuance of a permit pursuant to subsection (1)(b)(II) of this section.
(2) (a) In exercising its regulatory authority pursuant to subsection (1)(b) of this section, the commission shall adopt rules that:
(I) Protect public health, safety, and welfare, including the protection of the environment and wildlife resources; and
(II) Avoid, minimize, or mitigate adverse impacts on disproportionately impacted communities.
(b) (I) The commission shall not issue an operations permit pursuant to subsection (1)(b)(II) of this section unless the applicant provides evidence to the commission that:
(A) The applicant has filed an application with the local government with jurisdiction to approve the siting of the proposed deep geothermal operations, including the local government's disposition of the application; or
(B) The local government with jurisdiction to approve the siting of the proposed deep geothermal operations does not regulate the siting of deep geothermal operations.
(II) Upon request by a local government, the commission shall provide technical support to the local government concerning the implementation of the commission's rules pursuant to this section or the implementation by the local government of the commission's rules.
(3) Where the maintenance of underground pressures, the prevention of subsidence, or the disposal of brines is necessary, reinjection of geothermal fluid may be required by the state engineer or the commission.
(4) The commission shall transfer all fees collected for permits issued by the commission pursuant to subsection (1)(b)(IV) of this section to the state treasurer, who shall credit the fees to the energy and carbon management cash fund created in section 34-60-122 (5).
(5) Notwithstanding any provision of this section to the contrary, nothing in this section affects the ownership, administration, or determination of water rights or rights to nontributary groundwater.
(6) (a) On and after July 1, 2023, except as set forth in subsection (6)(b)(II) of this section, the commission is responsible for administering and enforcing any permits issued by the state engineer pursuant to this section that cover deep geothermal operations.
nothing in this section affects the ownership, administration, or determination of water rights or rights to nontributary groundwater.
(6) (a) On and after July 1, 2023, except as set forth in subsection (6)(b)(II) of this section, the commission is responsible for administering and enforcing any permits issued by the state engineer pursuant to this section that cover deep geothermal operations.
(b) The powers, duties, functions, and obligations concerning permits issued by the state engineer pursuant to this section that cover deep geothermal operations are transferred, effective July 1, 2023, to the commission. The state engineer retains any powers, duties, functions, and obligations necessary to issue, administer, and enforce any permits that cover:
(I) Shallow geothermal operations; and
(II) The use of geothermal fluid in deep geothermal operations pursuant to section 37-90.5-107, except for nonconsumptive geothermal operations.
(c) The rules of the state engineer pertaining to the powers, duties, functions, and obligations transferred to the commission pursuant to subsection (6)(b) of this section continue in effect and apply to the commission until the rules are replaced by rules adopted by the commission pursuant to subsection (1)(b)(I) of this section.
(d) The commission and the state engineer shall enter into memoranda of understanding, interagency agreements, or both, as appropriate, to provide for the timely transfer of the powers, duties, functions, and obligations transferred to the commission pursuant to subsection (6)(b) of this section.
C.R.S. § 37-90.5-107 Permits for the use of geothermal resources - rules
37-90.5-107. Permits for the use of geothermal resources - rules. (1) (a) After receipt of the necessary application, the state engineer shall issue a use permit to use distributed geothermal resources consistent with the requirements described in section 37-90-137.
(b) After receipt of the necessary application, the state engineer shall issue a use permit to use allocated geothermal resources consistent with the requirements described in section 37-90-137 and after a determination that any associated geothermal fluid is nontributary groundwater. For the purposes of this section, this determination must rely on the definition of nontributary groundwater pursuant to section 37-90-103 (10.5) as determined by:
(I) A decree of the water court;
(II) A permit to construct a well to withdraw nontributary groundwater issued by the state engineer pursuant to section 37-90-137;
(III) Rules adopted by the state engineer pursuant to section 37-90-137 (7)(c) for produced water that apply to use permits that are limited to the use of water as a material medium as the only beneficial use of water; or
(IV) Rules adopted by the state engineer pursuant to subsection (6)(a) of this section.
(2) The use of water as a material medium is recognized as a beneficial use.
(3) (a) Nondiversionary utilization methods do not require a use permit pursuant to subsection (1) of this section but are subject to the rules adopted pursuant to section 37-90.5-106 (1)(a)(I) and (1)(b)(I); however, nothing in this subsection (3)(a) prevents the developer of a geothermal resource from establishing a water right based on the developer's actual utilization.
(b) The requirement to issue a use permit pursuant to subsection (1)(b) of this section does not apply to operations that are solely nonconsumptive geothermal operations using allocated geothermal resources.
(c) The use permit issued pursuant to subsection (1) of this section may be waived by the state engineer for a diversionary utilization method that does not impair valid, prior water rights.
(d) The use permit issued pursuant to subsection (1) of this section may allow for nonconsumptive secondary uses of geothermal fluid, including the recovery of geothermal by-products, and may allow for consumptive secondary uses of geothermal fluid, including sale, which do not impair valid, prior water rights.
(e) Notwithstanding any provision of this subsection (3) to the contrary, a water right to use a distributed geothermal resource associated with tributary groundwater may be obtained only in water court and is subject to article 92 of this title 37. The beneficial use of energy extracted from geothermal fluid associated with a distributed geothermal resource is the basis, measure, and limit of the water right, and efficient application methods must be used for the use of energy to qualify as a beneficial use.
(4) Notwithstanding any provision of this section to the contrary, section 37-90-137 (4) applies to any consumptive use of allocated geothermal resources.
(5) The provisions of articles 90 and 92 of this title 37 relating to notice, hearings, appeals, and the administration of water rights apply to all permitting actions by the state engineer pursuant to this section.
(6) (a) (I) The state engineer may adopt rules for the administration of this section, including rules and procedures for the determinations described in subsection (1)(b) of this section.
(II) The state engineer's rule-making authority pursuant to subsection (6)(a)(I) of this section includes the authority to adopt rules:
(A) Pursuant to which geothermal fluid, in whole or in part, is determined to be nontributary pursuant to subsection (1)(b) of this section; and
(B) That provide rule-making and adjudicatory procedures for the determinations described in subsection (6)(a)(II)(A) of this section that are made after the initial rule-making conducted pursuant to subsection (1)(b) of this section.
ty to adopt rules:
(A) Pursuant to which geothermal fluid, in whole or in part, is determined to be nontributary pursuant to subsection (1)(b) of this section; and
(B) That provide rule-making and adjudicatory procedures for the determinations described in subsection (6)(a)(II)(A) of this section that are made after the initial rule-making conducted pursuant to subsection (1)(b) of this section.
(b) In any rule-making proceeding conducted pursuant to this section, any interested person has the right of cross-examination. Judicial review of any rules adopted pursuant to this section and any nontributary groundwater determinations made pursuant to subsection (1)(b) of this section must be in accordance with section 24-4-106; except that venue must be exclusively in the water court for the water division or divisions where the groundwater that is the subject of any applicable rule or determination is located.
(c) In any judicial action seeking to curtail or declare unlawful the withdrawal, use, or disposal of groundwater pursuant to this section, there is a rebuttable presumption that any determination made by the state engineer pursuant to subsection (1)(b) of this section is valid.
(d) Any rules adopted pursuant to this section must not conflict with existing laws and do not affect the validity of groundwater well permits existing prior to the adoption of the rules.
C.R.S. § 37-90.5-108 Geothermal management districts
37-90.5-108. Geothermal management districts. (1) The state engineer may adopt procedures that establish geothermal management districts applicable to distributed geothermal resources. In geothermal management districts, the state engineer may:
(a) Control well-spacing and production rates;
(b) Control the quantity of geothermal fluid extracted from distributed geothermal resources by methods and procedures that the state engineer deems appropriate, including requirements to reinject; and
(c) Adopt a comprehensive plan for the most efficient use of distributed geothermal resources, guided by the principles of equitable apportionment, maximum economic recovery, and prevention of waste.
(2) The state engineer may delegate some or all of his authority under this section to a geothermal management district upon finding that the district has adequate organization and capability to administer an acceptable management plan.
(3) The state engineer shall notify the commission of any application for a geothermal management district that is anticipated to affect deep geothermal operations.
C.R.S. § 37-90.5-109 Geothermal resource units - rules
37-90.5-109. Geothermal resource units - rules. (1) The commission may adopt procedures by rule to establish geothermal resource units applicable to allocated geothermal resources. In its regulation of geothermal resource units, the commission may:
(a) Control well-spacing and production rates;
(b) Control the quantity of geothermal fluid extracted from allocated geothermal resources by methods and procedures that the commission deems appropriate, including requirements to reinject;
(c) Adopt a comprehensive unit plan that encourages sustainable use of allocated geothermal resources; and
(d) Require equitable compensation to any impacted owner of an allocated geothermal resource.
(2) Notwithstanding any provision of this section to the contrary, nothing in this section affects the ownership, administration, aggregation, or determination of water rights.
C.R.S. § 37-90.5-110 Geothermal resource studies - report - repeal
37-90.5-110. Geothermal resource studies - report - repeal. (1) (a) The commission shall fund a technical study of the state's geothermal resources that includes:
(I) A resource evaluation;
(II) A description of potential applications of emerging technologies;
(III) An evaluation of potential impacts, including environmental and public health impacts, and a consideration of:
(A) Potential impacts to ozone nonattainment areas from the development of geothermal resources; and
(B) Potential ozone mitigation measures;
(IV) An economic analysis; and
(V) A description of any potential opportunities to utilize existing infrastructure.
(b) On or before July 1, 2024, the commission shall post the results of the study on the commission's website.
(2) (a) The commission and the state engineer shall collaborate on a study that evaluates the state regulatory structure for geothermal resources in the state and whether any changes to state law or rules are necessary.
(b) On or before December 31, 2024, the commission shall:
(I) Draft a report describing the results of the study and post the report on the commission's website; and
(II) Submit the report to the general assembly.
(c) The commission shall present the report described in subsection (2)(b)(I) of this section to the energy and environment committee of the house of representatives and the transportation and energy committee of the senate, or any successor committees, during the 2025 legislative session.
(3) This section is repealed, effective July 1, 2025.
C.R.S. § 37-90.5-111 Coordination between the commission and the state engineer
37-90.5-111. Coordination between the commission and the state engineer. (1) When an operations permit is issued by the commission pursuant to section 37-90.5-106 (1)(b)(II) and a use permit is issued by the state engineer pursuant to section 37-90.5-107 (1), the commission and the state engineer shall coordinate to:
(a) Ensure that any applicable requirements of the commission and the state engineer are met; and
(b) Determine whether an accounting for the use and reinjection of geothermal fluid pursuant to the applicable permit may be submitted to only the commission or only the state engineer.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-37.docxFetched: 10/6/2026