Due to the changing sea levels, many different environments are represented in the Horseshoe Canyon Formation, including offshore and near-shore marine habitats and coastal habitats, such as lagoons, estuaries, and tidal flats. Numerous coal seams represent ancient peat swamps.
Because of changing sea levels, the Horseshoe Canyon Formation contains a variety of environments, including those found in the ocean, such as offshore and near-shore areas, as well as coastal habitats like lagoons, estuaries, and tidal flats.  Additionally, many coal seams are remnants of ancient peat swamps.