Pond Closed Loops. If a home is near a body of surface water, such as a pond or lake, this type of loop design may be the most economical. The fluid circulates through polyethylene piping in a closed system, just as it does in the ground loops. Typically, workers run the pipe to the water, then submerge long sections under water. The pipe may be coiled in a slinky shape to fit more of it into a given amount of space. Geoexchange experts recommend using a pond loop only if the water level never drops below six to eight feet at its lowest level to assure sufficient heat-transfer capability. Pond loops used in a closed system result in no adverse impacts on the aquatic system.