Abstract: The statistical figures about China^’s coal-bed methane (CBM), particularly CBM drained from coal mine and its utilization rate, are very confused. It is not feasible to calculate the nation^’s total CBM output simply by adding CBM drained from coal mines, with low methane content and a large variation range, to the CBM production from wells drilled on the surface. CBM production and utilization should be verified by standard measurement of commodity amount. CBM output and utilization have not reached the target as predicted in recent years. It is necessary to hold a cautious attitude towards the CBM target put forth in the 13th Five-year Plan. Sluggish CBM development resulted mainly from royalty management issues. Some national oil companies^’monopoly of the royalty is overlapped with the royalty of specialized companies and coal enterprises. Inadequate investment from enterprises also seriously impairs CBM development owing to a high CBM cost. To promote a healthy CBM development it is necessary to strengthen structuring reform, deregulate royalty admission, make reasonable the relations between specialized CBM companies and coal mines, and keep comprehensive development of different types of oil and gas on the basis of the law and regulations. In the efforts to reduce development cost, the country should make a multi-disciplinary research on CBM in the light of the Chinese characteristics.