The objective is 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 coal combustion by-products. The two technologies for the underground placement that will be developed and demonstrated are: (1) pneumatic placement using virtually dry coal combustion by-products, and (2) hydraulic placement using a paste mixture of combustion by-products with about 70% solids. Phase 2 of the overall program began April 1, 1996. The principal objective of Phase 2 is to develop and fabricate the equipment for both the pneumatic and hydraulic placement technologies, and to conduct a limited, small-scale shakedown test of the pneumatic and hydraulic placement equipment. The shakedown test originally was to take place on the surface, in trenches dug for the tests. However, after a thorough study it was decided, with the concurrence of DOE-METC, to drill additional injection wells and conduct the shakedown tests underground. This will allow a more thorough test of the placement equipment.