The design of the wet carbonization process research unit (PRU) was begun. The PRU will be designed to handle about 100 lb/h of as received coal. The wet carbonization reactor will be able to operate at a maximum temperature of 650/sup 0/F and a pressure of 2300 psig. Process Flow and Instrument diagrams for the system have been prepared. Equipment and instrument lists have been completed. Specifications for major long delivery items have been prepared and issued for bids. The PRU design and construction are expected to be completed on schedule. A detailed test plan for the project was prepared. It discussed the number of tests to be conducted, conditions, test objectives, and data expected, equipment to be used and operating procedures. The test plan was approved by DOE in early September. Four coals were identified to be tested in this program. They are: North Dakota lignites from Mercer and Oliver counties, Montana Rosebud subbituminous and Texas lignite from Martin county. Procurement for these fresh coals have begun and the two lignites from North Dakota were shipped to IGT on October 31st. The batch wet carbonization units were readied for operation with the coals during this quarter. Wet carbonization tests with the coals on hand are expected to start in November and the product water from these tests will be characterized for their treatability. 1 reference, 9 figures.