(817) 778-9532

Coal Mineral Rights and Royalties in New Mexico

Quick answer

Buckhead Energy buys coal mineral rights and coal royalties. New Mexico had three producing coal mines in two counties in 2024, which together produced 7,198,771 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 New Mexico

No of the mines are underground and three are surface mines, and they produced bituminous and subbituminous coal.[1] San Juan County and McKinley County produced the most coal in New Mexico in 2024.[1]

CountyMinesUnderground / surfaceShort tons, 2024
San Juan County10 / 14,759,297
McKinley County20 / 22,439,474

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] New Mexico 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 New Mexico

Coal was discovered in the Raton coal field in 1821, and mining for local domestic use began there in the 1870s.[6]

New Mexico had many producing underground coal mines from the 1880s until the 1950s, mainly in the San Juan and Raton basins.[7]

The earliest coal mine in the Gallup area was the Gallup (Gibson) Mine in 1882.[8]

Coal rights in New Mexico

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

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 New Mexico produce, and where?

New Mexico had three producing coal mines in two counties in 2024, which together produced 7,198,771 short tons of coal, according to mine-level data in the U.S. Energy Information Administration's Annual Coal Report for 2024.[1]

Which New Mexico counties have the most coal production?

By 2024 production, the leading counties are San Juan County (4,759,297 short tons) and McKinley County (2,439,474 short tons).[1]

Can I sell coal mineral rights or coal royalties in New Mexico?

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 New Mexico?

New Mexico 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 New Mexico?

Coal was discovered in the Raton coal field in 1821, and mining for local domestic use began there in the 1870s.[6] New Mexico had many producing underground coal mines from the 1880s until the 1950s, mainly in the San Juan and Raton basins.[7]

Related pages

Selling Coal Mineral Rights and Coal Royalties

Mineral rights in New Mexico

Wind Royalties and Lease Payments in New Mexico

Solar Lease Payments and Royalties in New Mexico

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] Inactive Coal Mines and Georeferenced Maps, Raton Basin, Colfax County, New Mexico (Open-file Report 572) — New Mexico Bureau of Geology & Mineral Resources (accessed November 2, 2026)

[7] Coal — New Mexico Bureau of Geology & Mineral Resources (accessed November 2, 2026)

[8] Open-file Report 530: Abandoned and Inactive Coal Mines of the Gallup Coal Field, McKinley County, New Mexico — New Mexico Bureau of Geology & Mineral Resources (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