Abstract Cretaceous and Tertiary coal beds in the western United States typically contain subvertical opening-mode fractures (cleat). However, closely spaced normal faults abruptly substitute for opening-mode fractures in coal beneath some sandstone lenses having blunt terminations. Differential forced-fold compaction of coal beds around and beneath lens-shaped sandstone bodies accounts for such shifts in fracture style. Finite element modelling of coal deformation shows that shear stress is augmented in coal layers below abruptly tapering edges of sandstones lenses, favouring fault development, whereas under gradually tapering lenses shear stresses are not sufficiently enhanced to cause shifts in fracture style. Upper Cretaceous Mesaverde Group coal beds in southwest Wyoming have significant variations in fracture style over distances of a few to tens of metres. Because these faults have little or no porosity, the coal that contains them is likely to have low permeability compared to coal having typical (generally porous) opening-mode fractures. Thus, shifting fracture style may affect regional and local gas and water flow in coal beds.