The Colorado Geological survey is planning study of the effects of coalbed methane production on water quality and streamflow

From The Trinidad Times Independent (Randy Woock):

The study, which is to be conducted beginning this month and stretch through June 2010, will seek to compile current and historic stream flow levels; characterize the quality of ground and surface waters in the river basin; determine the relationship between coalbed methane (CBM) “producing intervals” – a given time period when a production wellhead is working – aquifers and surface formations, and create a groundwater-level monitoring system and determine the hydraulic storage capacities of the bedrock (how much water it can hold) and alluvial aquifers (those formed by deposits of things such as sand and silt).

“This is really a follow-up to a stream depletion analysis that was done by multiple state agencies – the Colorado Oil and Gas Conservation Commission (COGCC), the Division of Water Resources and our own agency,” Colorado Geological Survey (CGS) Senior Hydrologist Ralf Topper said in an Aug. 21 interview. “That was a first look at trying to answer the question, is there an impact from CBM production on water rights? That study indicated that, yes, there was an impact to stream depletion.”

More coalbed methane coverage here and here.