The Statement of Work for year one activities under contract AC1885FC10625 requests that an assessment of low-rank coal biodegradation be completed early in the contract period. This goal has been undertaken and the following text includes pertinent information, primarily from available literature, related to (1) coal chemistry, structure and composition, with primary emphasis on low-rank coals (primarily lignite and subbituminous,6020 ); (2) physical and/or chemical treatment of coal to enhance biodegradability; and (3) anaerobic processes for bioconversion of low-rank coal or related constituents to fuel products such as methane. Information acquired from this assessment will aid in the selection of model compounds, representative of organic compounds found as relevant constituents of low-rank coal, to be used in initial biodegradation experiments and will be invaluable in attempts to establish microbial cultures capable of bioconversion of the model compounds to methane. 67 refs., 5 figs., 1 tab.