Research continued on the production of co-products from mild gasification. This quarter, 10 mild gasification tests were conducted in the 8-inch-I.D. process research unit (PRU). Modifications to the PRU were made during this period to improve mixing and to overcome the caking tendency of the Illinois No. 6 coal. Six of the tests resulted in satisfactory operation at steady conditions for 2.25 to 3.25 hours. Samples of char, gas, water, and organic condensables were collected over a one-hour period from each of these successful tests and analyzed. The effects of process temperature over the range of 1025{degree} to 1390{degree} was studied during this quarter. Compositional effects on the oils and tars observed with increased temperature are increased light oil content, decreased pitch content, decreased oxygen content, increased nitrogen and sulfur content, and increasing aromaticity. Char upgrading studies continued during the quarter. Briquettes made in a laboratory press, using either a pitch binder or Illinois No. 6 coal to provide an in-situ binder, were calcined and tested for diametral compression strength. Char was also subjected to steam activation at a variety of conditions to determine the potential for use as a low-cost absorbent for water treatment. 2 refs., 15 figs., 11 tabs.