The recent focus on the evaluation and development of coal bed methane in parts of Colorado has spread to the Denver Basin, and brought to light some regulatory issues that may affect the fate of ground water produced in association with CBM production. If the amount and concentration of CBM is sufficient to warrant commercial production of the resource, both industry and regulatory agencies will be faced with new challenges.
Development of Colorado's ground water was essentially unregulated until 1957, and administration of individual residential well use was not implemented until the early 1970s. Evolution of ground water law in the state was driven by the need to protect existing senior rights to surface waters. In 1985, the Colorado General Assembly passed Senate Bill 5, which created the current regulatory framework for the Denver Basin Bedrock Aquifers. The present administrative process has not anticipated the potential that good quality water contained in the Denver Basin Aquifers may be produced as a byproduct of CBM production. Recent experience in the Raton Basin has shown that when produced water is of good enough quality for even some limited beneficial use, administration and development of that water can become a very complex and contentious issue.