As part of DOE's Underground Coal Gasification Program, activities at Sandia National Laboratories have been directed at Process and Technology Development. The project areas include (1) the development of a cornering water jet drill for use in linking vertical wells in Underground Coal Gasification (UCG) tests; (2) the development of a controlled source audio-frequency magnetotelluric (CSAMT) surface geophysical technique for monitoring the process, and (3) the development of models for use in predicting surface subsidence and cavity growth. The accomplishments for the year include (1) the successful completion of the high wall tests of the cornering water jet drill, (2) the start of the down hole tests including completion of the vertical hole and underreamed volume, testing of the sump pump and initial drilling to a hole length of three meters, (3) the preliminary CSAMT survey of the Tono partial seam controlled reacting injection point (CRIP) test area, (4) the development of a data acquisition and analysis system for the CSAMT technique, (5) the development of a predictive model for subsidence and cavity growth and their application to the partial seam CRIP test.