The rules state that heroes DO NOT automatically collect experience counters after deafeating a monster on that space. Experience counters are only collected if the monster card states so. If you defeat a monster that DOES NOT award you experience what becomes of the counter? Does it remain on the space or does it go back to the unused pile?

Defeating a monster as a result of having an encounter from a space with an experience counter would award you with that particular counter would it not? I don't understand the question. You go to a space with a counter, then if you are successful take it, if not you leave it and put an undefeated token and add it to the track up top.

Not in the Mists of Zanaga expansion. The rules state you don't get the experience counter on the space unless the monster card awards it to you.

Never mind. I just reread the rules. Only roaming monsters don't automatically give you experience points. Monsters encountered on an experience counter space are apparently resolved as in the normal base game. I withdraw the question.