A new approach to reduce the impact of the most costly step in the conventional technology, i.e., nitrogen rejection, for upgrading coal mine methane to pipeline quality natural gas is proposed. The proposed methodology is based on the Velocys microchannel platform being developed to commercialize compact and cost-effective chemical processing technology. For this separation, ultra fast absorption and desorption cycles are enabled by the very high rates of heat and mass transfer inherent in microchannel processing. Ionic liquids are adopted as absorbents of choice and their performance is verified through batch and flow-through experiments that promote the intensive gas-liquid contacting and interaction required to render this approach feasible. Economic analyses, performed to gauge the potential of these materials, show promise for commercial implementation of this novel process alternative and guide the search for the most appropriate ionic liquid. This is an abstract of a paper presented at the AIChE Spring National Meeting and 5th Global Congress on Process Safety (Tampa, FL 4/26-30/2009).