This document contains the Quarterly Report of a Novel Geotechnical/Geostatistical Approach for Exploration and Production of Natural Gas from Multiple Geologic Strata for October 1 - December 31, 1996. This report is presented to the US DOE, Office of Fossil Energy by the College of West Virginia. A brief summary update of the following ongoing projects is presented: production of natural gas from multiple geologic strata (including coal deposits), dewatering of producing wells, and descriptions of cold weather production problems. A brief update of the project in Poland where brine wastewater is converted into potable water is also mentioned.