Two vertical test wells were constructed and used to measure certain hydraulic and intrinsic properties of the Felix No. 2 coal at the proposed Site of Hoe Creek Experiment III. The two wells, located 27 m apart and approximately along the proposed process well alignment, were drilled, logged, cased and cemented to within 0.6 m of the top of the Felix No. 2 coal. Further drilling in each of the wells caused them to be advanced into the Felix No. 2 in three essentially equal increments. Slug-withdrawal tests were performed in the wells at each stage of deepening. The slug withdrawal tests and their interpretation generally followed the procedure that was used in incremental slug withdrawal testing of explosion fractured coal at the Hoe Creek Experiment I site. The exception was that water was removed from the wells by bailing rather than by air ejection. Following the slug testing, a pump was installed in HY 2 and pumping tests were performed with water level drawdown being measured in HY 1.