# Coal Mineral Rights and Royalties in Montana

> Montana: four producing coal mines in three counties, 26,983,458 short tons in 2024. Buckhead Energy buys coal mineral rights and coal royalties.

- URL: https://www.buckheadenergy.com/coal-mineral-rights/montana
- Last updated: 2026-11-01
- Publisher: Buckhead Energy (https://www.buckheadenergy.com/)
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Quick answer

Buckhead Energy buys coal mineral rights and coal royalties. Montana had four producing coal mines in three counties in 2024, which together produced 26,983,458 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 Montana

One of the mines is underground and three are surface mines, and they produced bituminous and subbituminous coal.^\[1\] Big Horn County, Musselshell County and Rosebud County produced the most coal in Montana in 2024.^\[1\]

| County | Mines | Underground / surface | Short tons, 2024 |
| --- | --- | --- | --- |
| [Big Horn County](https://www.buckheadenergy.com/coal-mineral-rights/montana/big-horn) | 2 | 0 / 2 | 13,937,531 |
| [Musselshell County](https://www.buckheadenergy.com/coal-mineral-rights/montana/musselshell) | 1 | 1 / 0 | 7,067,888 |
| [Rosebud County](https://www.buckheadenergy.com/coal-mineral-rights/montana/rosebud) | 1 | 0 / 1 | 5,978,039 |

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.^\[4\] Montana 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 Montana

Coal has been mined in Montana since territorial days, and production first peaked in the 1940s at around 5 million tons a year.^\[6\]

Montana coal production fell to its lowest point in 1958 as diesel replaced steam locomotives, and began to rise again in 1968 with shipments from the Colstrip area.^\[6\]

## Coal rights in Montana

The Western coal region includes Wyoming, Montana, North Dakota, Colorado and other states, and surface mines produce most of its coal.^\[2\]

Subbituminous coal came mostly from Wyoming, followed by Montana, New Mexico, Colorado and Alaska.^\[3\]

Lignite was produced in five states in 2022, led by North Dakota and Texas, with smaller amounts from Mississippi, Louisiana and Montana.^\[3\]

Federal law reserved to the United States all the coal and other minerals in lands patented as stock-raising homesteads, so there are large portions of surface property where the underlying minerals are owned by the federal government.^\[7\]

## 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 Montana produce, and where?

Montana had four producing coal mines in three counties in 2024, which together produced 26,983,458 short tons of coal, according to mine-level data in the U.S. Energy Information Administration's Annual Coal Report for 2024.^\[1\]

### Which Montana counties have the most coal production?

By 2024 production, the leading counties are Big Horn County (13,937,531 short tons), Musselshell County (7,067,888 short tons) and Rosebud County (5,978,039 short tons).^\[1\]

### Can I sell coal mineral rights or coal royalties in Montana?

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 Montana?

Montana 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 Montana?

Coal has been mined in Montana since territorial days, and production first peaked in the 1940s at around 5 million tons a year.^\[6\] Montana coal production fell to its lowest point in 1958 as diesel replaced steam locomotives, and began to rise again in 1968 with shipments from the Colstrip area.^\[6\]

### Can coal rights be owned separately from the land in Montana?

Federal law reserved to the United States all the coal and other minerals in lands patented as stock-raising homesteads, so there are large portions of surface property where the underlying minerals are owned by the federal government.^\[7\]

## Related pages

[Selling Coal Mineral Rights and Coal Royalties](https://www.buckheadenergy.com/coal-mineral-rights)

[Mineral rights in Montana](https://www.buckheadenergy.com/mineral-rights/montana)

[Wind Royalties and Lease Payments in Montana](https://www.buckheadenergy.com/wind-royalties/montana)

[Solar Lease Payments and Royalties in Montana](https://www.buckheadenergy.com/solar-lease-royalties/montana)

## Sources

\[1\] [Annual Coal Report, mine-level production (2024 data, released November 19, 2025)](https://www.eia.gov/coal/data.php) — U.S. Energy Information Administration (accessed November 1, 2026)

\[2\] [Coal explained: Where our coal comes from](https://www.eia.gov/energyexplained/coal/where-our-coal-comes-from.php) — U.S. Energy Information Administration (accessed November 1, 2026)

\[3\] [Coal explained](https://www.eia.gov/energyexplained/coal/) — U.S. Energy Information Administration (accessed November 1, 2026)

\[4\] [Iaeger Energy Development, LLC v. Moore, No. 18-0409 (memorandum decision, Jan. 13, 2020)](https://www.courtswv.gov/sites/default/pubfilesmnt/2023-12/18-0409memo.pdf) — Supreme Court of Appeals of West Virginia (accessed November 1, 2026)

\[5\] [Regulating Active Coal Mines](https://www.osmre.gov/programs/regulating-active-coal-mines) — Office of Surface Mining Reclamation and Enforcement (accessed November 1, 2026)

\[6\] [Understanding Energy in Montana 2023](https://psc.mt.gov/_docs/Consumers/energy/pdf/Understanding-Energy-in-Montana-2023.pdf) — Montana Department of Environmental Quality and Legislative Services Division (hosted by Montana Public Service Commission) (accessed November 2, 2026)

\[7\] [Split Estates related to oil and gas production in Montana (Environmental Quality Council staff memorandum to HB 790 Subcommittee, 2005-2006 interim)](https://archive.legmt.gov/content/Committees/Interim/2005_2006/environmental_quality_council/subcommittees/hb790/staffmemos/split_estates.pdf) — Montana Legislature, Environmental Quality Council (accessed November 2, 2026)

## Ready to Sell Your Coal Mineral Rights or Royalties?

Buckhead Energy buys coal mineral rights and coal royalties.

[Get a Free Written Offer](https://www.buckheadenergy.com/sell#inquiry:source=%2Fcoal-mineral-rights%2Fmontana)

## About Buckhead Energy
Buckhead Energy is a direct buyer, not a broker — we purchase mineral and royalty interests with our own capital. Buckhead Energy buys mineral and royalty interests across all 50 states and has completed acquisitions in 33 states. Buckhead Energy has been buying mineral and royalty interests since 2006. Buckhead Energy holds an A+ rating with the Better Business Bureau. Buckhead provides a free written offer. Buckhead Energy typically provides an offer within 24–48 hours. Closings typically take 30–45 days, subject to title review and clearance. Buckhead Energy's written offers stay open for 14 days.

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