This report provides a summary of the work performed on the prototype Culm Combustion Boiler/Heater Unit, Phase I - Engineering Design and Analysis, Phase II - Prototype Plant Construction and Phase III - Start-Up and Operation during the period April 1, 1982 through June 30, 1982. The objectives of the program as well as the technical progress and problem areas encountered during the reporting period are presented. The Parametric Test Program was resumed in April and completed during this report period. A total of 17 parametric test points have now been completed. During severe weather conditions (heavy rain), temporary delays were encountered due to the inability to crush sufficient amounts of culm for individual test points. Upon completion of the scheduled facility shutdown for maintenance, as discussed in the last report, the plant was restarted on April 5, 1982. Total operating time through the end of this quarter - 4272 hours, 29 minutes; operating time on culm/limestone and culm - 3379 hours, 15 minutes. Plant operating time during this report period - 1642 hours, 30 minutes with an operational running factor of 98.1% achieved during the month of June. Steam was delivered to the user (Cellu products) during this time to generate steam revenue. Data obtained during the Parametric Test Program was recorded on magnetic tape and this data was forwarded to DOE for their analysis.