I was wondering if there is a way to have the coolant only come one when the cutter is engaged. Lets say we only want the coolant to come on when the cutter is within a .25" of the work piece. This way when you are transitioning to a new area or hole the coolant isnt running. Is this possible and Im just not seeing it?

You can use your GCode editor, do a search and replace.

Search            G00
Replace with    G00 M9

Search            G01
Replace with    G01 M8 (or 7 for mist)

Works fine here in simulation.
You could also modify your post processor to do this automatically....if you know how. Can't help you there
Russ
guess you'd need to do the M8 (7) for G2 and 3 as well