The objective of this project was to develop and demonstrate two technologies for the placement of coal combustion by-products in abandoned underground coal mines, and to assess the environmental impact of these technologies for the management of CCB materials. The two technologies for the underground placement that were to be developed and demonstrated are: (1) pneumatic placement using virtually dry CCB products, and (2) hydraulic placement using a paste mixture of CCB products with about 70% solids. The period covered by this report is the second quarter of Phase 3 of the overall program. During this period over 8,000 tons of CCB mixtures was injected using the hydraulic paste technology. This amount of material virtually filled the underground opening around the injection well, and was deemed sufficient to demonstrate fully the hydraulic injection technology. By the end of this quarter about 2,000 tons of fly ash had been placed underground using the pneumatic placement technology. While the rate of injection of about 50 tons per hour met design criteria, problems were experienced in the delivery of fly ash to the pneumatic demonstration site. The source of the fly ash, the Archer Daniels Midland Company power plant at Decatur, Illinois is some distance from the demonstration site, and often sufficient tanker trucks are not available to haul enough fly ash to fully load the injection equipment. Further, on some occasions fly ash from the plant was not available. The injection well was plugged three times during the demonstration. This typically occurred due to cementation of the FBC ash in contact with water. After considerable deliberations and in consultation with the technical project officer, it was decided to stop further injection of CCB`s underground using the developed pneumatic technology.