This report provides the summary of work performed under the US Department of Energy, Grant numberDE-FG21-86LC11075, during the past year. The report contains detailed equations, numerical solution approach for the three models, namely: fundamental hydrate dissociation model, model for layered hydrate-oil configuration, and model for distributed hydrate-oil configuration. The results of the fundamental hydrate dissociation model are provided and discussed. The other two models have been formulated and computer coded. The results of these two models will be provided in the final report.