Drilling requires water permits

In a decision that brings some natural-gas operations under state water law and bolsters private-property rights, the Colorado Supreme Court ruled Monday that coal-bed methane gas wells must get water-well permits. The ruling means energy companies must prove to the state engineer that their drilling is not impinging upon senior water rights. If the methane wells do affect neighboring water supplies, companies must provide a plan for increasing those supplies. "In Colorado, water is just as important as gas, and this ruling protects water from drilling," said Bill Vance, an Archuleta County rancher who was a plaintiff in the lawsuit. The ruling comes three weeks after the legislature passed a comprehensive set of oil and gas operating rules. "They are all part of an effort to strike a balance for property owners," said Sarah Klahn, Vance's attorney. The Colorado Oil and Gas Association said the ruling will "just add more fuel to the fire of uncertainty affecting the oil and gas business in Colorado."...Denver Post