DWR_4178859

• Document Type - Guidance Documents: Policy
• Topic: Well Permitting
• Title: Policy 1990-1: Recording and permitting of wells for exempt commercial uses initiated prior to May 8, 1972
• Document Date: 12/11/2023

Policy Memorandum 1990-1 Page 4 of 4
December 11, 2023
SOLUTION
In order to minimize individual interpretations and to facilitate the timely evaluation of
applications, two options are available.
1. Follow a strict interpretation of the taw and limit exempt commercial wells to drinking
fountains and bathroom facilities for human purposes only. The pumping rate must not
exceed 15 gpm with no specific limit on the annual diversion. Applications for other
uses would be denied. The anticipated outcome of this approach is more denials and
hearings before the State Engineer and additional engineering and legal work needed
for the approval and administration of any required small augmentation plans.
2. Establish a volumetric limit on annual diversions which can be allowed for a well to
qualify as exempt commercial. This would have the effect of broadening the
interpretation of the statute. Little or no opposition from applicants is anticipated
using this approach. It would also reduce the number of denials, hearings and the
associated staff time.
RECOMMENDATION
The second of the two available options appears to be the most workable. A numeric limit is
more definite thus making it easier to evaluate and administer. It also reduces the
uncertainties of interpreting whether the uses qualify as drinking and sanitary facilities. On
April 9, 1985, a policy was adopted which establishes the 1/3 acre-foot diversion limit for new
exempt commercial wells evaluated pursuant to section 37-92-602(3)(b)(I). This 1/3 acre-foot
appears to be too restrictive for wells which have been in operation since before May 8, 1972.
Since the statutes distinguish between existing "domestic uses" and new "household only" uses,
it appears that existing "exempt commercial" uses should be allowed a larger annual diversion
than a new "exempt commercial" use.
The policy providing for the recording of existing commercial wells based on a volumetric
standard instead of an interpretation of drinking and sanitary facilities by the staff is
suggested. A volumetric diversion of 1 acre-foot shall apply for the recording of commercial
welts pursuant to section 37-92-602(5).
In order to standardize the evaluation of applications, the above criteria are applicable to all
areas of the state outside of the boundaries of designated groundwater basins whether the
stream system is overappropriated or not. Any well which does not meet these standards may
be considered pursuant to section 37-90-137 as a new appropriation.
Reasons for December 11, 2023 Amendment
This Policy was amended on December 11, 2023 to further clarify the allowed uses and
clarify that the exempt well can be used to serve the same business as a non-exempt well,
but cannot be used to serve the same uses within that business. The amended Policy also
clarifies that a field inspection by Division of Water Resources staff is not required to late
register a well, unless the well permit application evaluator determines that such inspection
is necessary to complete the evaluation and process the application.