Exempt Wells
Generally speaking, all diversions of water in Colorado, whether the diversion is from a stream or groundwater, require a water right adjudicated by a water court. One major exception to this rule is for a class of wells known as “exempt” wells. These wells are “exempt” from the traditional process for adjudicating a water right and “are intended to allow citizens to obtain a water supply in less densely populated areas for in-house and domestic animal uses where other water supplies are not available.” C.R.S. § 37-92-602(6). Exempt wells allow a party to construct a well without having to go through the lengthy and often expensive water court process and therefore can be a great option for certain properties. The main categories of exempt wells are described below.
Exempt Wells for 35+ Acre Parcels
Tracts of land that are 35 acres or more qualify for an exempt well that can typically be used to supply up to three single family dwellings, the irrigation of up to an acre of land, and for the watering of domestic animals and livestock. This type of exempt well carries a presumption that its use will not injure other water rights.
Indoor Use Only Exempt Wells
Properties of less than 35 acres can qualify for an indoor use only exempt well if the property was subdivided before June 1, 1972 or if the parcel was created through an exemption to the local subdivision laws. These wells can only be used for ordinary household purposes in one single family dwelling and cannot be used for irrigation or the watering of livestock.
Exempt Commercial Wells
Properties of less than 35 acres can qualify for an exempt commercial well if the property was subdivided before June 1, 1972 or if the parcel was created through an exemption to the local subdivision laws. Exempt commercial well permits are limited to no more than 0.3 acre feet per year and can only be used for “drinking and sanitary facilities in individual commercial businesses.” To qualify as a “commercial business” the business must be: (1) operated by the well owner and have its own ”books, bank accounts, checking accounts, and separate tax return,” (2) use the water solely on the land described in the well permit, and (3) own or lease the property on which the well will be located, among other requirements that confirm that the well will be used for a bonafide commercial business.
Monitoring Wells
Wells that are drilled exclusively for purposes of monitoring and observation purposes, such as those for monitoring groundwater levels and groundwater quality, qualify as exempt wells so long as they are capped and locked and only used for monitoring.
If you have questions about applying for an exempt well permit or any other type of well, please contact the attorneys at Nazarenus Stack & Wombacher to guide you through the process.