BOARD00822

• Board Meeting Date: 4/27/1953
• Description: Minutes and Resolution
• Board Meetings - Doc Type: Meeting

171

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As above stated, Section 5 of the act requires only that
the surety on such bonds be corporations "duly licer,sed to do
business within the State of Colorado." A.lthough it is not
expressly stated,ve take it that this language should be read
as though limited to corporations licensed under the provisions
of Chapter 87, 1935, C.S.A., as amended, to engage in the insurance
business in this State, and should not be construed to include all
corporations which under the general corporation laws (Chapter 41,
1935 C.S.A., as amended) are merely authorized or permitted but not
specifically licensed to do business in the state. Hence, if an
insurance corporation is' licensed by the Co~missioner of Insurance
to do business in Colorado, it is qualified to act as surety On
bonds required by Section 5. Such a determination of qualification
is one solely of fact, and can properly be made by the Board.
2. Section 2 of the act defines a "district" as being "an
area as determined by the State Board which, in its discretion,
is a proven a~derground water basin and one which should be subjp.ct
to the provisions of this act." Section 3 (a) provides in pert
that all wells hereafter drilled, redrilled, recased or deepened
shall be ~nformity vnth the act and the rules, ref-ulations and
orders of the Board, with. the provisothat "the rules' and regulations
to be formulated under this act shall not apply to.the drilling,
redrilling, recasing or deepening of a well o~ wells that are not
located within a district or which do not produce qver three (3)
gallons of vlater per minute."
From this it will be observed that the Board has no power
to regulate the drilling of wells except those located in districts
and of a stated production. This does not mean, h;wever, that an
unlicensed commercial driller may operate outside of districts.
Indeed, Section 4 (a) requires every contracting or employed
driller to obtain a Well Driller's license before he shall "drill,
redrill, recase or deepen a well, whether on his own land or on the
land of another person, within the State of Colorado." We construe
the underscored language to refer-to drilling operations anywhere
within the state, whether without or within a district, and
without regard to the intended capacity or production of the well.
The fact that Board rules, regulations or orders are inoperative
except as to drilling done within established districts would
preclude the Board from doing anything other than requiring a license
of a commercial driller who is operating in a non-d~strict territory.
The same would be true as to all corr~ercial drillers in the state
until the Board has by regulation established the required oistricts.
Drilling of a well without first obtaining the required license is
subject to criminal sanction by Section 16 of the Act.

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