The implementation of the US DOE Underground Coal Conversion program for FY 1981 is discussed; the FY 1981 accomplishments of the program participents, Laramie and Morgantown Energy Technology Centers, Lawrence Livermore and Sandia National Laboratories, university contractors, and Gulf Research and Development Company, are described. For FY 1981, the program may be divided into for integrated sections: The DOE-GRI cooperative project, the Tono project, other supporting research, and the Steeply Dipping Bels Project. The first three sections taken as a while constitute the Technology Base Development element of the program; the fourth section constitutes the Government/ Industry Cooperative Projects element of the program.