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Coal Mineral Rights and Royalties in Kentucky

Quick answer

Buckhead Energy buys coal mineral rights and coal royalties. Kentucky had 94 producing coal mines in 19 counties in 2024, which together produced 24,308,599 short tons of coal, according to mine-level data in the U.S. Energy Information Administration's Annual Coal Report for 2024.

Coal production by county in Kentucky

41 of the mines are underground and 53 are surface mines, and they produced bituminous coal.[1] Union County, Hopkins County and Harlan County produced the most coal in Kentucky in 2024.[1]

CountyMinesUnderground / surfaceShort tons, 2024
Union County22 / 09,254,159
Hopkins County11 / 04,406,080
Harlan County1811 / 72,350,532
Pike County2211 / 112,348,108
Perry County63 / 31,531,886
Letcher County101 / 91,382,118
Leslie County21 / 1565,831
Whitley County61 / 5563,895
Knott County43 / 1393,457
Muhlenberg County11 / 0316,133
Johnson County20 / 2310,795
Bell County61 / 5278,846
Martin County20 / 2217,616
Floyd County64 / 2197,955
Breathitt County10 / 1134,532
Magoffin County20 / 233,811
Knox County11 / 010,971
Clay County10 / 19,387
Lawrence County10 / 12,487

Source: U.S. Energy Information Administration, Annual Coal Report mine-level data for 2024, released November 19, 2025. Data compiled November 1, 2026.

How coal is leased and paid

U.S. coal is mainly found in three regions: the Appalachian coal region, the Interior coal region and the Western coal region, which includes the Powder River Basin.[2] Coal is classified into four main ranks: anthracite, bituminous, subbituminous and lignite.[3] The coal leases in a 2020 West Virginia Supreme Court of Appeals decision carried a tonnage royalty, a minimum annual royalty and a fixed term of years.[4] Kentucky is one of the 24 states with an approved coal regulatory program, so the state is the primary regulator of coal mining there and handles permitting, inspection and enforcement, with oversight from the federal Office of Surface Mining Reclamation and Enforcement.[5]

Coal mining history in Kentucky

Kentucky's first recorded coal production was 20 tons, in present-day Lee County, in 1790.[6]

Pike County has the largest cumulative coal production of any Kentucky county, 1.33 billion tons from 1904 to 2001.[6]

Coal rights in Kentucky

Kentucky's Constitution distinguishes instruments that sever the surface and mineral estates, instruments that grant a mineral estate, and instruments that grant a right to extract minerals.[7]

Under Kentucky's Constitution, a severance instrument that does not state the method of coal extraction is read, absent clear and convincing evidence otherwise, to allow only the methods commonly in use in the area when it was signed.[7]

The Appalachian coal region includes Alabama, eastern Kentucky, Maryland, Ohio, Pennsylvania, Tennessee, Virginia and West Virginia, and underground mines supply most of its coal.[2]

The Interior coal region includes Illinois, Indiana and western Kentucky among other states, and Illinois is its top producer.[2]

The method-of-extraction language in Section 19 of Kentucky's Constitution was ratified on November 8, 1988.[7]

What you sell and what you keep

What Buckhead buys depends on the deal, and Buckhead tells the seller up front which interest it is offering to buy — for example, the payments for the rest of the current lease term, a term easement, or a longer-term interest. The coal leases in a 2020 West Virginia Supreme Court of Appeals decision carried a tonnage royalty, a minimum annual royalty and a fixed term of years.[4] Coal rights can also be divided by seam: in one West Virginia case, the leases covered all the coal in all seams above a named seam on the leased tracts.[4]

Educational information only — not legal, tax, or investment advice. The figures are public reference data, not a valuation or appraisal of any interest. Consult a qualified attorney, CPA, or landman about your specific situation.

Frequently asked questions

How much coal does Kentucky produce, and where?

Kentucky had 94 producing coal mines in 19 counties in 2024, which together produced 24,308,599 short tons of coal, according to mine-level data in the U.S. Energy Information Administration's Annual Coal Report for 2024.[1]

Which Kentucky counties have the most coal production?

By 2024 production, the leading counties are Union County (9,254,159 short tons), Hopkins County (4,406,080 short tons), Harlan County (2,350,532 short tons), Pike County (2,348,108 short tons) and Perry County (1,531,886 short tons).[1]

Can I sell coal mineral rights or coal royalties in Kentucky?

Buckhead Energy buys coal mineral rights and coal royalties. What Buckhead buys depends on the deal, and Buckhead tells the seller up front which interest it is offering to buy — for example, the payments for the rest of the current lease term, a term easement, or a longer-term interest.

Who regulates coal mining in Kentucky?

Kentucky is one of the 24 states with an approved coal regulatory program, so the state is the primary regulator of coal mining there and handles permitting, inspection and enforcement, with oversight from the federal Office of Surface Mining Reclamation and Enforcement.[5]

What is the history of coal mining in Kentucky?

Kentucky's first recorded coal production was 20 tons, in present-day Lee County, in 1790.[6] Pike County has the largest cumulative coal production of any Kentucky county, 1.33 billion tons from 1904 to 2001.[6]

Can coal rights be owned separately from the land in Kentucky?

Kentucky's Constitution distinguishes instruments that sever the surface and mineral estates, instruments that grant a mineral estate, and instruments that grant a right to extract minerals.[7] The method-of-extraction language in Section 19 of Kentucky's Constitution was ratified on November 8, 1988.[7]

What does Kentucky law say about coal rights?

Under Kentucky's Constitution, a severance instrument that does not state the method of coal extraction is read, absent clear and convincing evidence otherwise, to allow only the methods commonly in use in the area when it was signed.[7]

Related pages

Selling Coal Mineral Rights and Coal Royalties

Mineral rights in Kentucky

Solar Lease Payments and Royalties in Kentucky

Sources

[1] Annual Coal Report, mine-level production (2024 data, released November 19, 2025) — U.S. Energy Information Administration (accessed November 1, 2026)

[2] Coal explained: Where our coal comes from — U.S. Energy Information Administration (accessed November 1, 2026)

[3] Coal explained — U.S. Energy Information Administration (accessed November 1, 2026)

[4] Iaeger Energy Development, LLC v. Moore, No. 18-0409 (memorandum decision, Jan. 13, 2020) — Supreme Court of Appeals of West Virginia (accessed November 1, 2026)

[5] Regulating Active Coal Mines — Office of Surface Mining Reclamation and Enforcement (accessed November 1, 2026)

[6] Kentucky Coal Production — Kentucky Geological Survey, University of Kentucky (accessed November 2, 2026)

[7] Constitution of Kentucky, Section 19 — Kentucky General Assembly, Legislative Research Commission (accessed November 1, 2026)

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