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This is an appeal from a declaratory judgment action <br />brought in District Court, Water Division 7 by William S. Vance, <br />Jr., Elizabeth S. Vance, James G. Fitzgerald, and Mary Theresa <br />Fitzgerald (collectively, the "Ranchers "). The Ranchers asked <br />the water court to determine the legal obligations of the State <br />Engineer and Division Engineer for Water Division 7 <br />(collectively the "Engineers ") regarding well permits and <br />augmentation plans when ground water is diverted for the purpose <br />of coalbed methane ( "CBM ") production. Specifically, the <br />Ranchers sought a declaration that withdrawal of ground water <br />during the CBM process constitutes a "beneficial use" giving <br />rise to appropriative water rights subject to administration and <br />permitting by the Engineers under the Water Right Determination <br />and Administration Act of 1969, §§ 37 -92 -101 through -602, <br />C.R.S. (2008) ( "1969 Act "), and the Colorado Ground Water <br />Management Act, §§ 37 -90 -101 through -143, C.R.S. (2008) <br />( "Ground Water Act "). <br />The Engineers and BP America Production Company ( "BP "), an <br />intervenor in the action, opposed the Ranchers' request for a <br />declaratory judgment, arguing that the use of water during CBM <br />production is not a "beneficial use." The water court held for <br />the Ranchers, finding that CBM production constitutes an <br />appropriation for a "beneficial use," and that consequently, the <br />Engineers cannot allow out -of- priority diversions for CBM <br />4 <br />