No. The cost of land is not deductible. You can deduct expenses related to your coal royalty.
The cost of land comes into play when you sell the property. You will be taxed on the profit (sales price – sales expenses – land cost).
For your royalty, you can deduct taxes paid, depletion and any another expenses such as property maintenance. Depletion for coal is 10% of the cost of the royalties reported [Section 1.613-2(1)(iv)].