Progress is reported on a project to evaluate fluidized bed combustors for industrial steam generation at Georgetown University. The July through September 1981 period constituted the eighth full quarter of Task 4 Operations in which plant operations were essentially performed by the Georgetown University staff. Boiler operations during the quarter were limited to a single period extending from August 4 through August 18 during which 331 hours of steam generation were logged. Operations before August 4 were held up to permit completion of the modifications undertaken in the second quarter of 1981. On August 18, the plant was shut down because boiler in-bed tube shields were falling off and causing blockages in the bed material removal system. Coincidentally, stack opacity was increasing due to failure of two bags in the 792-bag baghouse. This single run, however, revealed a significant increase in thermal efficiency to 77.1%. This increase was attributable to the success of the newly installed airlocks below the mechanical dust collector in reinjecting all flyash collected at this point. Unfortunately, the successful reinjection of flyash from the dust collector increased the flue gas dust loading in the boiler to the point where the cinder trap educators could not keep pace with the flyash collected at this point. Efforts will be made to correct this situation in succeeding operations. The problem of excessive pressure drop across the baghouse at high load levels remains. Modifications made during the quarter were not successful in eliminating this problem and further changes and evaluations are contemplated for the succeeding quarter.