Permeability refers to the ability of coal to transmit gas when a pressure or concentration gradient exists across it. The permeability of coal is dependent upon factors that include effective stress, gas pressure, water content, disturbance associated with drilling and matrix swelling/shrinkage due to adsorption/desorption. A programme of laboratory tests were conducted on coal samples from the Bulli seam for evaluating the permeability and drainability of coal. Two different types of permeability apparatus were used in this study. The methods of permeability testing of coal under different triaxial conditions are discussed. Permeability testing of the Bulli seam coal with N2 is described. The laboratory test results were found to be in agreement with the calculated permeability values.