January 10, 2010

TWG Meeting Recap

Location: Doubletree – World Arena, Colorado Springs, CO

Next TWG Meeting:
10:00 AM, April 23, 2010 (before the CWWCA Spring Board Meeting)
Chase Building
Basement Conference Room A
333 West Hampden Avenue
Englewood, CO 80110
Bishop-Brogden Associates, Inc. office is located on 10th floor (303) 806-8952

DWR NT Rules Update
The new DWR NT Rules apply only to produced water from oil and gas development. The NT Rules and Alternate Rules are currently under review. Final rules will be published shortly and are topic the next TWG meeting.

DWR Budget / Well Permit Fees
The DWR remains short 5.5 full time employees. A fee bill affecting substitute water supply plans (SWSP), dam approval and well permits will be introduced in the upcoming legislative session. The proposal will be similar to Senate Bill 09-216 introduced last year. The State’s cost for permit review and SWSP’s is approximately $600 and $2000, respectively. Currently, permit review and SWSP approval is partially funded by the general fund.

CWWCA Apprenticeship Program
A very thorough outline for an Apprenticeship Program was presented to the TWG. The outline was based upon Apprenticeship Programs in other states. The key elements of the proposed program are (1) registration/application, (2) supervision by a licensed individual, (3) minimum of two years of apprenticeship experience and (4) documentation.

There was discussion about whether the Apprenticeship Program should be voluntary, as a documentation process, or mandatory as a prerequisite for licensure. There was also discussion regarding whether such a program could be implemented by BOE rule making or policy, or whether a statutory change would be needed.

Next steps include: (1) formation of a CWWCA committee to review the Apprenticeship Program outline and provide an updated proposal and (2) a recommendation from DWR staff regarding registration/application process and program format. The Apprenticeship Program will be a topic at the next TWG meeting.

Water Well Construction Rules Update
As directed by the CWWCA, Jack Byers proposed review of the Water Well Construction Rules at the October 2009 BOE meeting, on behalf of the CWWCA. Proposed areas for review include annular space, casing size and grouting. The proposed approach to Rule review is through a collaborative process involving the CWWCA, DWR, BOE and other stakeholders. The BOE was receptive to rules review proposal and directed DWR staff to meet with the CWWCA. There has been one informal meeting with DWR staff regarding rules review and a second meeting is scheduled. An additional update will be provided at the next TWG meeting.

Notice Concerning Changes to the Location Information Requirements for Well Permit Applications
On July 1, 2009, the DWR adopted a procedure to relax the location information needed for well permit applications. The new procedure requires a Section, Township, Range and P.M., a description of the lot and a deed. Quarter-quarter, distance from section line and UTM coordinates are not needed. Permits issued pursuant to this procedure will be for a specific lot or tract of land. UTM coordinates will need to be provided on the Well Construction and Test Report for wells permitted under this procedure. This procedure does not apply to certain types of wells, including wells with 600-foot spacing restrictions, wells completed in the Denver Basin aquifers or at locations where the well will be limited to production from a specific interval.

This procedure will allow for more flexible well permitting and drilling on lots where the exact location of the well is not known when the well permit application is submitted. In particular, it will benefit drilling of exempt wells, particularly on large lots or tracts with challenging site or geologic conditions.

There was discussion regarding a future process to allow drillers to correct well locations without penalty in the context of inaccurate GPS readings and other “reasonable” errors. This will be a topic for the next TWG meeting.

2-years Hands-on Experience Obtained During Unlicensed Activities
Historically, unlicensed contractors caught engaging in activities requiring a driller or pump installer license were given the option of either paying the fine or obtaining a license. In these cases, experience obtained without a license and without the supervision of a licensed contractor was applied to the 2-years hands-on experience requirement. The BOE directed DWR staff to no longer offer avoidance of the fine by pursing licensure.

There is uncertainty under what authority the BOE could restrict experience obtained without a license and without the supervision of a licensed contractor from the 2-year hands-on experience requirement. The AG’s office is investigating whether the BOE may implement Rules or Policy to refine the definition of hands-on in this case. An update regarding the opinion of the AG’s office will be provided at the next TWG meeting.

Unlicensed Contractors Operating Under the Valid License of Another Contractor
Currently, there is wide latitude in the application of “directly employed by,” “business partnership,” and “direct supervision” in regard to unlicensed individuals working under a licensed individual. For specific cases of possible abuse, the DWR should be contacted directly. The DWR believes that a statuary change may be needed to refine this definition. This issue lends itself to future discussion of business licensing.

Future Topics
DWR Budget Update
NT Rules Update
Apprenticeship Program
Water Well Construction Rules Update
Correction of Well Location

Respectfully submitted by Daniel Niemela.