The San Juan Basin is a northwest-southeast-trending asymmetrical basin located in northwestern New Mexico and southwestern Colorado. The portion of the basin discussed in this report is underlain predominantly by the Upper Cretaceous Fruitland Formation and covers approximately 7,500 sq mi in area.

While coal is present in several formations (particularly the Dakota Sandstone, Gallup Sandstone, Crevasse Canyon Formation, Menefee Formation, and Fruitland Formation), the bulk of more than 200 billion tons of coal resource is present within the Fruitland Formation.

Coals in the Fruitland Formation are generally thicker, of higher rank, and found at greater depths of burial in the northern part of the basin. Gas content reports for Fruitland coals in parts of the basin exceed 500 cubic feet/ton (cf/ton). The total coalbed methane resource in the Fruitland Formation coals is estimated at 31 trillion cubic feet (Tcf), with the bulk of that in a crescent-shaped, high-potential area along the north and east-central parts of the basin.