This report describes the work done under Phase I, the moisture tolerance testing of the Kinetic Extruder. The following coals were used in the test program: Western Bituminous (Utah), Eastern Bituminous (Pennsylvania), North Dakota Lignite, Sub-Bituminous (Montana), and Eastern Bituminous coal mixed with 20-percent Limestone. The coals were initially tested at the as-received moisture level and subsequently tested after surface moisture was added by water spray. Test results and recommendations for future research and development work are presented.