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This article discusses the geology, depositional setting, and hydrogeology of promising CBM areas, along with a discussion of data sources that can help in evaluation of prospects. Foreland basins are flexural troughs that form in front of rising mountain belts. These basins, which include the Black Warrior and San Juan basins of the U.S., have provided more than 90% of the world's coal gas production to date. Cratonic basins such as the Williston basin, which straddles the U.S./Canadian border, are simple structural depressions that favor the deposition of widespread, continuous coal seams. Intermontane basins, which are common in the Appalachian Mountains of the eastern U.S., form within mountain belts and often are structurally complex, resulting in a more heterogeneous coal distribution.