The reaction of coal with methane to produce hydrocarbons as an alternative fuel source to crude oil is still an unsolved challenge. Indications for an increase of coal oil, production during coal pyrolysis by the presence of methane were reported by several groups including ours in the past. These oil increases were taken as indications for cross reactions of coal with methane, because methane pyrolysis is commonly conducted at temperatures >1000 degrees C, way above that of coal pyrolysis temperatures. We have found that at pyrolysis conditions there is no significant cross reaction of methane with the coal or its pyrolysis products. By using longer residence times and higher pressures for the methane, we were able to demonstrate that the pyrolysis products of methane are nearly identical to that of the coal and thus in a mixed experiment undistinguishable. Apparently, increase of liquid products from coal pyrolysis in the presence of methane can be solely attributed to the additional pyrolysis of methane and not to any cross reactions. However, even at conditions, where no net increase of coal oil production is observed, there is a relative increase in the content of alkylated aromatics when methane is present in coal pyrolysis. We have also found that methane can be pyrolized effectively at temperatures lower than 1000 degrees C, if longer residence times and higher pressures are employed.