# Coal Mineral Rights and Royalties in North Dakota

> North Dakota: four producing coal mines in three counties, 25,414,668 short tons in 2024. Buckhead Energy buys coal mineral rights and coal royalties.

- URL: https://www.buckheadenergy.com/coal-mineral-rights/northdakota
- 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. North Dakota had four producing coal mines in three counties in 2024, which together produced 25,414,668 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 North Dakota

No of the mines are underground and four are surface mines, and they produced lignite coal.^\[1\] Mercer County, McLean County and Oliver County produced the most coal in North Dakota in 2024.^\[1\]

| County | Mines | Underground / surface | Short tons, 2024 |
| --- | --- | --- | --- |
| [Mercer County](https://www.buckheadenergy.com/coal-mineral-rights/northdakota/mercer) | 2 | 0 / 2 | 13,774,148 |
| [McLean County](https://www.buckheadenergy.com/coal-mineral-rights/northdakota/mclean) | 1 | 0 / 1 | 7,400,184 |
| [Oliver County](https://www.buckheadenergy.com/coal-mineral-rights/northdakota/oliver) | 1 | 0 / 1 | 4,240,336 |

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.^\[4\] North Dakota 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 North Dakota

Recorded lignite mining in North Dakota goes back to 1873, when small mines sprang up along transportation routes in the western part of the state.^\[6\]

By the early 1920s about 250 mines were operating in North Dakota, and the last underground mine closed in 1966.^\[6\]

## Coal rights in North Dakota

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

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

North Dakota's Surface Owner Protection Act, which defines minerals as coal or commercial leonardite, is to be interpreted to benefit surface owners regardless of how the mineral estate was separated from the surface estate.^\[7\]

A North Dakota surface mining permit requires each surface owner's written consent; if that consent cannot be obtained, the mineral owner or developer may ask a district court to set the parties' rights and the surface owner's damages.^\[7\]

## 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 North Dakota produce, and where?

North Dakota had four producing coal mines in three counties in 2024, which together produced 25,414,668 short tons of coal, according to mine-level data in the U.S. Energy Information Administration's Annual Coal Report for 2024.^\[1\]

### Which North Dakota counties have the most coal production?

By 2024 production, the leading counties are Mercer County (13,774,148 short tons), McLean County (7,400,184 short tons) and Oliver County (4,240,336 short tons).^\[1\]

### Can I sell coal mineral rights or coal royalties in North Dakota?

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 North Dakota?

North Dakota 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 North Dakota?

Recorded lignite mining in North Dakota goes back to 1873, when small mines sprang up along transportation routes in the western part of the state.^\[6\] By the early 1920s about 250 mines were operating in North Dakota, and the last underground mine closed in 1966.^\[6\]

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

North Dakota's Surface Owner Protection Act, which defines minerals as coal or commercial leonardite, is to be interpreted to benefit surface owners regardless of how the mineral estate was separated from the surface estate.^\[7\] A North Dakota surface mining permit requires each surface owner's written consent; if that consent cannot be obtained, the mineral owner or developer may ask a district court to set the parties' rights and the surface owner's damages.^\[7\]

## Related pages

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

[Mineral rights in North Dakota](https://www.buckheadenergy.com/mineral-rights/northdakota)

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

## 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)

\[6\] [Coal mined in North Dakota (lignite mining history and abandoned mines)](https://www.dmr.nd.gov/ndgs/mineral/nd_coalnew.asp) — North Dakota Geological Survey, Department of Mineral Resources (accessed November 2, 2026)

\[7\] [North Dakota Century Code Chapter 38-18: Surface Owner Protection Act](https://ndlegis.gov/cencode/t38c18.pdf) — North Dakota Legislative Branch (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%2Fnorthdakota)

## 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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