The Mississippian Madison Formation contains abundant fracture zones and breccias that are hydrothermal in origin based on their morphology, distribution, and geochemical signature. The hydrothermal activity is related to crustal shortening during the Laramide orogeny. Brecciation is accompanied by dedolomitization, late-stage calcite precipitation, and porosity occlusion, especially in outcrop dolomites. The tectonic-hydrothermal late-stage calcite reduces permeability in outcrops and, potentially, high-quality subsurface reservoir rocks of the subsurface Madison Formation, Bighorn Basin. The reduction of permeability and porosity is increased along the margins of the Bighorn Basin but not predictable at outcrop scale. The destruction of porosity and permeability by hydrothermal activity in the Madison Formation is unique in comparison to studies that document enhanced porosity and permeability and invoke hydrothermal dolomitization models.