On September 30, 1993, the US Department of Energy, Morgantown Energy Technology Center and Southern Illinois University at Carbondale (SIUC) entered into a cooperative agreement entitled Management of Dry Flue Gas Desulfurization By-Products in Underground Mines (DE-FC21-93MC30252). Under the agreement, Southern Illinois University at Carbondale will develop and demonstrate several technologies for the placement of coal combustion residues in abandoned coal mines, and will assess the environmental impact of such underground residues placement. The major event during the quarter was the demonstration of the SEEC, Inc. technology for loading and transporting coal combustion residues in the SEEC developed Collapsible Intermodal Containers (CIC). The demonstration was held on November 17, 1994, at the Illinois Power Company Baldwin power plant, and was attended by about eighty (80) invited guest. Also during the quarter meetings were held with Peabody Coal Company officials to finalize the area in the Peabody No. 10 mine to be used for the placement of coal combustion residues. Work under the Materials Handling and Systems Economics area continued, particularly in refining the costs and systems configuration and in economic evaluation of various systems using equipment leasing rather than equipment purchases. Likewise, work progressed on residues characterization, with some preparations being made for long-term testing.