This is the first annual report issued under a project to evaluate the effects of aqueous effluents from in-situ fossil fuel processing technologies on aquatic biota. Briefly, the goals of the project are to: evaluate the toxicity of process water effluents on aquatic biota; recommend maximum exposure concentrations for process water constituents; and assist DOE in using project data and recommendations to design control technologies and to assess environmental impacts. The project objectives for Year 1 were pursued through the following five tasks: a literature review on process water constituents; toxicity studies on the effect of process waters and six process water constituents on aquatic biota; degradation rate studies on four to six process water constituents; bioaccumulation studies on four to six process water constituents; and recommendations on maximum exposure concentrations for process water constituents based on data from the project and from the literature. Progress toward completion of these goals is presented.