Work was continued on basic research and cost studies supporting the Department of Energy's coal gasification program. Two major activities or tasks are being performed. The first activity is the development of a process or processes to produce agglomerates from coal fines suitable for use as a feed to fixed-bed gasifiers. During the Fourth Quarter approximately 70 double-roll briquetting runs and 97 pelletizing runs were performed to evaluate promising binder candidates and to investigate other briquetting and pelletizing variables. All agglomerates were tested for room temperature handling ease (measured by crush-strength and drop-shatter tests) and for stability and performance at gasifier temperatures. The best agglomerates were further evaluated in a modified Burghardt test and in a tumbler test. Ten agglomerate compositions, eight briquettes and two pellets, were run in a small gasifier at American Natural Resources. Most agglomerates performed well in this gasifier. In Task II, the design of a gasification plant with Rockwell Molten Salt gasifiers was completed, and estimates of capital and operating costs were developed. Work on all basic cases has now been completed and only the incorporation of a briquetting facility into the fixed-bed plant design remains to be done.