The program objective was to develop a Near-Bit Measurement-While-Drilling (MWD) system which collects borehole directional data and formation parameters directly at the drill bit-rock interface and transmits this information electromagnetically to a distant receiver located some 50 - 100 feet above the bit. The system is to be designed to work with positive-displacement motors and stabilized bottomhole assemblies from all manufacturers and to pass its data message to third party steering tools and conventional MWD telemetry systems for subsequent transmission to the surface. The work was performed by a joint team from Maurer Engineering Inc. (MEl) and Guided Boring Systems (GBS), both of Houston, Texas, under contract from the Morgantown Energy Technology Center, U. S. Department of Energy (METC).