"The University of New Mexico, in cooperation with the local utility company, Public Service Company of New Mexico, has initiated a potential six-year project to assess the technical feasibility of underground coal gasification in the San Juan Basin of New Mexico. This paper describes the initial work of characterizing the chemical, physical and geological nature of a proposed UCG site located near the San Juan Power Generating Station in northwest New Mexico. The six-year project is also discussed. A potential underground coal gasification site has been selected. Results of the preliminary drilling, hydrology, geology and environmental studies are presented. The studies to date have shown that the San Juan UCG site is similar in coal composition, permeability and water saturation to the Hanna, Wyoming site. The seam thickness is about half that of the Hanna site. Preliminary findings offer encouragement for in situ gasification of New Mexico coal."