On September 30, 1993, the US Department of Energy - Morgantown Energy Technology Center (DOE-METC) and Southern Illinois University at Carbondale (SIUC) entered into a cooperative research agreement entitled {open_quotes}Management of Dry Flue Gas Desulfurization By-Products in Underground Mines{close_quotes} (DE-FC21-93MC30252). Under the agreement Southern Illinois University at Carbondale will develop and demonstrate two technologies for the placement of coal combustion residues in abandoned underground coal mines, and will assess the environmental impact of these technologies for the management of coal combustion by-products. The two technologies for the underground placement that will be developed and demonstrated are: (1) pneumatic placement, using virtually dry materials, and (2) hydraulic placement, using a {open_quotes}paste{close_quotes} mixture of materials with about 70% solids. Phase II of the overall program began April 1, 1996. The principal objective of Phase II is to develop and fabricate the equipment for placing the coal combustion by-products underground, and to conduct a demonstration of the technologies on the surface. Therefore, this quarter has been largely devoted to developing specifications for equipment components, visiting fabrication plants throughout Southern Illinois to determine their capability for building the equipment components in compliance with the specifications, and delivering the components in a timely manner.