Geothermal Permitting

Colorado ECMC Permitting: Overview and Community Involvement

The Colorado Energy and Carbon Management Commission (ECMC) regulates deep geothermal development in the state, utilizing a permitting process designed to ensure responsible resource management while avoiding, minimizing, or mitigating adverse impacts. While the general permitting framework is focused on technical and environmental standards, community involvement in the decision-making process has been built directly into our rules.

ECMC Permitting Process Overview

ECMC adopted its process for regulation and oversight of geothermal activities on September 30, 2024. This regulation is largely governed by our 1300-Series Rules. The process by which a geothermal project is permitted typically goes through the following stages:

Application Submission: The operator submits a detailed application, including project plans, environmental review, water use plans, and assessments of potential impacts.
Completeness Review: ECMC staff review the application for completeness and adherence to regulatory requirements.
Technical Review: Engineers and technical experts review the project's design, proposed well construction, and operational safety plans.
Administrative Review and Public Comment: The application is made publicly available, triggering mandatory public notice periods. During this time, interested members of the public may leave comments, which ECMC will consider when making all permitting decisions.
Optional Hearing: For projects that meet certain criteria (e.g., proximity to sensitive areas, complexity), or if significant public interest is expressed, ECMC may hold a public hearing before its professional commission (“the Commission”). For specifics on when a project must have a hearing, see Rules 1303.c.(2), 1305.e.(4), and 1320.b.
ECMC Decision: If a public hearing has been held, the Commission considers all technical findings, staff recommendations, and public input before making a final decision on whether to approve, approve with conditions, or deny the permit. If no public hearing was necessary, ECMC’s decision on an application is made by the Director.

Community Involvement

Community involvement is formally integrated into the ECMC permitting process through public notice, comment periods, and, when applicable, public hearings. In addition, local governments have co-equal siting authority with ECMC regarding deep geothermal operations.

If a proposed deep geothermal location is to be within 2,000 feet of a residential building unit, high occupancy building unit, or school facility located within a disproportionately impacted community, the applicant must include a community outreach plan with their permit application. The community outreach plan includes:

Measures taken to directly mitigate adverse impacts to the disproportionately impacted community,
A certification that all written materials have been provided in all languages spoken by at least 5% of the disproportionately impacted community, and
Proposed date(s), time(s), and location(s) of any public consultation or outreach meetings. These meetings must be located close to the disproportionately impacted community and the operator must provide childcare and interpretation services if requested.
See ECMC Rule 304.c.(20) (effective 9/30/24) and Rule 1305.b.(3).O.i for full details.

ECMC’s community liaisons will identify if there are local organizations representative of the potentially impacted community. The applicant will distribute relevant information to the communities in collaboration with the local organizations.

Public Notice and Comment Periods

Mandatory Notification: Operators are required to notify potentially affected parties, including surface owners, adjacent landowners, and local government entities, of their intent to drill or develop a geothermal facility. In addition, the Division of Water Resources maintains a list of prior geothermal operations, and applicants must demonstrate that their proposed operations will not adversely affect these prior geothermal uses.
Public Access to Documents: Applications and supporting documents are accessible to the public through the ECMC website.
Formal Comment Submission: Members of the public, NGOs, and local governments have designated periods during which they can submit formal comments, concerns, and supporting data directly to ECMC for consideration. These comments must be addressed by Staff or the Commission.

Public Hearings

Public Interest: By rule, public hearings are optional for geothermal projects. However, if certain conditions are met or if there is significant public interest in a project, a public hearing may be held before the Commission.
Opportunity for Testimony: A public hearing provides the most direct platform for community members to offer sworn testimony to the Commission regarding the proposed project.
Basis for Decision: Testimony and submitted evidence from the public become part of the official record that the Commission uses to inform its final decision. Community concerns related to noise, traffic, water quality, and land use are frequently raised in this forum.

Local Government Consultation

Rule 1303: ECMC rules mandate that operators consult with local governments (counties and municipalities) early in the planning process, regardless of whether the local government regulates siting. Local governments may also provide comments on an application during the public comment period, regardless of prior consultations or siting status.
Local Government Role: Local governments often represent the community's interests and may choose to regulate siting of geothermal projects concurrently with the state's permitting process. Through their own permitting, local governments can impose land-use requirements (e.g., setbacks, visual buffers) on geothermal projects. ECMC heavily weights the input from local governments in its decision-making, and geothermal applicants must provide ECMC with full information about the current status of any local permits.

Community involvement ensures that local knowledge and concerns are formally considered alongside technical and environmental data, adding a crucial layer of accountability to the geothermal permitting process in Colorado.

Pre-application Consultations

Pre-application consultations serve as a critical initial step in the geothermal permitting process, encouraging open dialogue and early identification of potential issues before an application is filed.

Intent and Goals:

Early Issue Identification: Consultations provide operators, local governments, state agencies, and other groups an opportunity to identify and discuss potential issues, sensitivities (e.g., proximity to disproportionately impacted communities, water resource concerns), and regulatory requirements early in the planning phase.
Information Sharing: Through these consultations, ECMC staff and the prospective operator are able to share information regarding the project scope, location, and potential impacts, thereby streamlining the formal application process.
Stakeholder Alignment: Consultations facilitate early engagement with local governments, other state agencies, and other relevant stakeholders, ensuring their concerns and requirements (including those imposed under their own authority) are addressed up front.

Consultation With ECMC:

Mandatory Initial Contact: Operators are mandated by Rule 1304.a to schedule a pre-application meeting with ECMC staff.
Information Packet: The operator typically provides ECMC with a preliminary packet of information, including general project location, well design concepts, estimated water needs, and initial assessments of potential community impacts.
Consultation Meeting: The meeting involves ECMC technical staff, community liaisons, other stakeholders, and representatives of the operator. Local government officials may also be invited to participate.
Outcome: The consultation results in guidance from ECMC regarding necessary considerations and plans, potential application complexity, and community outreach expectations, helping the operator refine their project plan prior to formal submission.

Consultation With Other Stakeholders:

Rules 1303.e and 1304.b-l detail what other stakeholders must be consulted and when—and if the operator must directly consult a stakeholder or if ECMC must also be involved in that consultation. The rules also outline specific processes for certain stakeholders that an operator must follow during consultation.

Purpose of Establishing Geothermal Resource Units (GRUs)

Geothermal resource units (GRUs) allow for the development of a geothermal resource within a specified area and establish the area of impact of the associated operations. This provides a mechanism to develop a resource that has multiple owners while simultaneously protecting that resource from other encroaching development. The establishment of a GRU allows for a comprehensive overview of all proposed deep geothermal operations planned within the unit, including all deep geothermal wells, locations, and any geothermal injection wells. A GRU is specific to and only for the geologic formation(s) and aquifer of a single geothermal resource. If additional formations and aquifers suitable for future development exist at different vertical intervals within the same area, these are not included in the same GRU.

Public Involvement

Rules 1309 and 1310 govern public involvement in ECMC's process for permitting GRUs.

Rule 1309: Public Notice of GRU Applications

Upon submission of a GRU application, ECMC provides public notice of the proposed unit boundary and the application details. This notice is intended to inform all potentially affected parties, including geothermal resource owners within the proposed unit and surface owners above it. The notice will include information on how to review the application and submit comments to the Commission.

Rule 1310: Nonconsenting Owners and Hearings

As outlined in Rule 1310, nonconsenting interest owners—those geothermal resource owners who have not leased or otherwise agreed to the unitization of their resource—are notified of the GRU application. These nonconsenting owners are crucial stakeholders in the process and have the right to participate in Commission hearings related to the GRU application and the determination of equitable compensation.

The Commission will hold public hearings on initial GRU applications that include nonconsenting owners to establish standards and procedures for determining equitable compensation (see below). These hearings will allow for public testimony and the presentation of evidence by all interested parties, ensuring transparency and fairness in the unitization process.

Equitable Compensation (Rule 1310)

Colorado law treats geothermal development similarly to oil and gas development when it comes to leasing resources, whether geothermal or mineral. Like oil and gas operators, deep geothermal operators are not required to have a lease or agreement with each owner of a geothermal resource within a proposed unit. At minimum, the operator must demonstrate that owners of greater than 45% of the geothermal resources proposed to be unitized have consented to the GRU. Although consent is not required from all parties, the operator must confirm that a good faith attempt was made to negotiate a reasonable lease or agreement with each owner in the proposed GRU. When a lease or agreement has not been obtained after a good faith attempt, an owner may be deemed a nonconsenting interest owner and subject to unitization of their geothermal resource.

Regardless of consent, all geothermal resource owners within a GRU are entitled to equitable compensation by the operator. Specifics of equitable compensation for nonconsenting geothermal resource owners will be developed through the Commission hearings on the initial GRU applications that include nonconsenting owners. Following the hearings, this document will be updated as necessary to provide further guidance.

Geothermal Resource Unit Permit Applications

A GRU is required for all deep geothermal operations to delineate the area of impact of the permitted operations. Applications for GRUs may be submitted simultaneously with (which is the method preferred by ECMC staff) or after the submission of Form 2s. These applications may take the form of an inclusion on a Form 2 that seeks to permit a deep geothermal well, or on a Form 4 submitted separately from the Form 2(s). A GRU may not be established without the submission of a Form 2.

All GRU applications must include proof that the applicant is an owner of at least one tract of the subject geothermal resource. If the operator has deeded ownership of all geothermal resource tracts within the area planned for development, unitization is still required.

Colorado has a long history with geothermal resources, primarily utilizing lower-temperature hydrothermal systems for direct-use applications like hot springs resorts and district heating in the western and central parts of the state. However, the state's significant geologic potential—including hot dry rock formations and deeper sedimentary basins—remains largely untapped for major, utility-scale power generation. This potential is a key driver for forward-thinking state regulatory efforts; realizing Colorado's geothermal future requires better subsurface knowledge and technological advancement.

To facilitate the necessary research and development, ECMC has established specific regulations for "geothermal science wells" under its 1300-Series Rules. Rule 1305.f explicitly defines these wells and outlines a streamlined permitting process, recognizing that research wells, unlike commercial production wells, are focused solely on acquiring data—such as temperature gradients, rock properties, and fluid chemistry—to validate resource models. By creating this regulatory pathway, ECMC is actively supporting the scientific exploration that is critical for de-risking future commercial geothermal projects, positioning geothermal science wells as vital conduits for moving the state from historical low-enthalpy use toward high-potential, large-scale clean energy development.

ECMC regulates geothermal injection wells to prevent contamination of underground sources of drinking water (USDWs) and ensure structural integrity of the wellbore and surrounding geology, in compliance with the Safe Drinking Water Act (SDWA). Wells that inject geothermal fluids are typically Class V under the U.S. Environmental Protection Agency (EPA) Underground Injection Control (UIC) program and thus directly regulated by EPA. However, ECMC approval is also required for geothermal injection wells in Colorado, and EPA is included in ECMC’s consultation process to expedite authorization. Operators must obtain both EPA authorization (often "rule authorized" but sometimes requiring a permit) and an approved permit from ECMC before operating. Consultation with EPA is mandatory prior to submitting permit applications to ECMC.

The ECMC permitting process requires an approved Form 2 and Form 2G, as well as a Form 4.

The Form 2 for an injection well must include:

Proposed injection program, which requires detailed geologic, geophysical, and injection fluid characterization data, with samples analyzed and submitted on a Form 43.
Seismicity evaluation, which identifies potential induced seismicity hazards within a 12-mile radius.
Description of the area of review.
Remedial corrective action plan.

The Form 2G for an injection well has all the same data requirements as for a production well, but crucially also must include documentation of the EPA pre-application consultation.

A Form 4 requesting authorization to inject is required after the well is completed and must include as-constructed details like the wellbore diagram, casing and cementing documentation, a cement bond log, and a satisfactory mechanical integrity test (MIT) witnessed by an ECMC compliance specialist.

During approval of the authorization to inject, ECMC staff will set the maximum allowable injection rate and surface injection pressure, which must be below the formation fracture gradient. Continuous seismic monitoring may be required based on injection rates, formation type (e.g., Precambrian basement), or site-specific circumstances. Permitted fluids for injection are primarily geothermal fluids from the same reservoir, minor makeup water, or other pre-approved fluids. Operators are required to submit monthly reports (Form 7G) detailing produced and reinjected fluid volumes.

ECMC Rule 1311 governs the process for converting a geothermal well or location from one type of use to another. This rule is particularly relevant when a previously permitted well or location is repurposed for a different geothermal operation, such as converting a monitoring well into a production well.

Key Conversion Requirements

The core requirement for any conversion under Rule 1311 is the submission of a new, complete geothermal permit application to the Commission. This application must clearly specify the proposed new use of the well or location.

Application Content

A conversion application is very similar to a new deep geothermal permit application, and must include a Form 2 and 2G.

Full details of any proposed modifications to the well bore, casing, cementing program, surface equipment, or location layout necessary to facilitate the new use. This ensures the well remains safe and environmentally compliant under the new operating conditions.
The application process can be streamlined, specifically regarding the inclusion of information already developed as part of a local or Federal permit or leasing process, or already on file with the Commission (e.g., an approved Form 2A) to avoid unnecessary duplication.

Operational Constraints

Crucially, the conversion process cannot commence until a new geothermal permit has been officially approved and issued by the Commission. The operator must abide by all terms and conditions of the newly-approved permit immediately upon completion of the conversion.

Rule 1311 ensures that every geothermal well or location, regardless of its history, meets current regulatory and safety standards whenever its operational purpose changes, providing continuous oversight for all geothermal activities in Colorado.