This project proposes to use pneumatically or hydraulically emplaced dry-flue gas desulfurization (FGD) by-products to backfill the adits left by highwall mining. Backfilling highwall mine adits with dry-FGD materials is technically attractive. The use of an active highwall mine would allow the dry-FGD material to be brought in using the same transportation network used to move the coal out, eliminating the need to recreated the transportation infrastructure, thereby saving costs. Activities during the period included the negotiations leading to the final cooperative agreement for the project and the implementation of the necessary instruments at the University of Kentucky to administer the project. Early in the negotiations, a final agreement on a task structure was reached and a milestone plan was filed. A review was initiated of the original laboratory plan as presented in the proposal, and tentative modifications were developed. Selection of a mine site was made early; the Pleasant Valley mine in Greenup County was chosen. Several visits were made to the mine site to begin work on the hydrologic monitoring plan. The investigation of the types of permits needed to conduct the project was initiated. Considerations concerning the acceptance and implementation of technologies led to the choice of circulating fluidized bed ash as the primary material for the study. Finally, the membership of a Technical Advisory Committee for the study was assembled.