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Abstract: Divided ownership has been shown to dilute economic incentives in a variety of contexts. Severed mineral rights are a widely-held form of divided ownership and have been a topic of recent policy interest. Using well-level production data from coalbed methane (CBM) wells in Wyoming during the years 1987-2006, wells on federal minerals with private surface are compared to those on federal minerals with federal surface. Federal minerals are studied to avoid the endogeneity problems found on private minerals, but the selection of well sites still requires econometric controls. Delays in entry on split estate are found, but are not associated with reduced production after entry. Some support is found for strategic incentives firms face regarding transaction costs inherent in different property rights. The role of the accommodation doctrine in preventing holdup is discussed.