The Lower Mississippian Lodgepole Formation of Montana and Wyoming records one of the largest positive carbon isotopic excursions of the Phanerozoic. This globally recognized up to 7‰ increase in δ13Ccarb values occurs across the North American Kinderhookian-Osagean boundary (referred to as the KO excursion). It has been argued to reflect significant organic carbon burial, possibly linked to the onset of the Late Paleozoic Ice Age. Previously proposed correlations between carbon isotopic patterns and the sequence stratigraphic framework within these strata suggests that changes in sea level could have played a significant role in the expression and/or magnitude of the KO excursion in the Madison Shelf. This study explores the relationship between carbon isotopic values and sea level change at multiple scales. To accomplish this, we provide a comprehensive overview of the sedimentological and stratigraphic framework and address uncertainty about the number of sequences in the Lodgepole Formation. Our results support a three-sequence model for the Lodgepole Formation. Based on the number of sequences and the placement of sequence stratigraphic surfaces, we see little evidence of statistically significant correlation between carbon isotopic trends and the sequence stratigraphic framework. We argue that sea level change was not the primary driving mechanism for carbon isotopic trends in the Madison Shelf, nor the KO excursion. Instead, we support models that invoke global ocean anoxia and/or destabilization of the global carbon cycle due to land plants.