The US Department of Energy (DOE) Morgantown Energy Technology Center has implemented a comprehensive program to demonstrate the technical and economic viability of coalbed methane as an energy resource. The program is directed toward solution of technical and institutional problems impeding the recovery and use of large quantities of methane contained in the nation's minable and unminable coalbeds. Conducted in direct support of the DOE Methane Recovery from Coalbeds Project, this study analyzes the economic aspects of a horizontal borehole methane recovery system integrated as part of a longwall mine operation. It establishes relationships between methane selling price and annual mine production, methane production rate, and the methane drainage system capital investment. Results are encouraging, indicating that an annual coal production increase of approximately eight percent would offset all associated drainage costs over the range of methane production rates and capital investments considered.