Geologic sequestration in deep unmineable coal seams and enhanced coalbed methane production is a promising choice, economically and environmentally, to reduce anthropogenic gases such as carbon dioxide in the atmosphere. Unmineable coal seams are typically known to adsorb large amounts of carbon dioxide in comparison to the sizeable amounts of sorbed methane, which raises the potential for large scale sequestration projects. During the process of sequestration. carbon dioxide is injected into the coalbed and desorbed methane is produced. The coal matrix is believed to shrink when a gas is desorbed and swell when a gas is sorbed, sometimes causing profound changes in the cleat porosity and permeability of the coal seam. These changes may have significant impact on the reservoir performance, Therefore, it is necessary to understand the combined influence of swelling and shrinkage, and geomechanical properties including elastic modulus, cleat porosity, and permeability of the reservoir. The present paper deals with the influence of swelling and shrinkage on the reservoir performance, and the geomechanical response of the reservoir system during the process of geologic sequestration of carbon dioxide and enhanced coalbed methane production in an actual field project located in northern New Mexico. A three-dimensional swelling and shrinkage model was developed and implemented into an existing reservoir model to understand the influence of geomechanical parameters, as well as swelling and shrinkage properties, on the reservoir performance. Numerical results obtained from the modified simulator were compared to available measured values from that site and previous studies. Results show that swelling and shrinkage, and the combination of geomechanical and operational parameters, have a significant influence on the performance of the reservoir system. (C) 2008 Elsevier B.V. All rights reserved.