JUDICIAL DEVELOPMENTS

June 2009

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Colorado Supreme Court Rules that Coalbed Methane Wells Must Have Water Well Permits
Vance v. Wolfe

In this case, the Colorado Supreme Court ruled that ground water withdrawn in the process of extracting coalbed methane gas constitutes a beneficial use of water rendering coalbed methane (CBM) wells subject to administration and permitting by the state engineer and Colorado water laws. William S. Vance, Jr. and James and Mary Theresa Fitzgerald (plaintiffs) filed a case action in the Division 7 Water Court against the Colorado State and Division Engineers (Engineers) seeking a declaration that withdrawing groundwater in producing CBM gas requires well permitting and a decreed augmentation plan if the process affects vested water rights. The Water Court ruled in favor of the plaintiffs on summary judgment, and the Engineers appealed. BP America Production Company intervened in the appeal on behalf the Engineers.