Interference for adjacent wells may be beneficial to Coalbed-Methane production. The effect is the acceleration of de-watering which should lead to earlier and higher gas rate peaks. It is inherent that permeability anisotropy exists in the coalbed methane formation. It means that the placement of wells (wells configuration) has an effect on the development of coalbed methane field. The effect of Palmer-Mansoori Theory is increasing effective permeability at lower pressures due to matrix shrinkage during desorption. This effect should increase the gas recovery of coalbed methane production. Palmer and Mansoori model should be considered and included to coalbed methane reservoir simulation. These effects and phenomena can be modeled with the CMG simulator. A systematic sensitivity study of various reservoir and operating parameters will result in generalized guidelines for operating these reservoirs more effectively.