The research in this annual report falls into three tasks each dealing with a different aspect of enhanced oil recovery. The first task strives to develop procedures for accurately modeling reservoirs for use as input to numerical simulation flow models. This section describes how we have used a detailed characterization of an outcrop to provide insights into what features are important to fluid flow modeling. The work leads to a discussion of pseudo functions and how they are used in reservoir modeling to capture geologic features, and also to the notion of a test case for measuring the utility of statistical models. The work describes diagnetic patterns which occur in a carbonate outcrop and attempts to explain these from a fluid flow-reaction model. The second task deals with scaling-up and modeling chemical and solvent EOR processes. In a sense this task is the natural extension of task 1 and, in fact, one of the subtasks uses many of the same statistical procedures for insight into the effects of viscous fingering and heterogeneity. Other subtasks use UTCHEM, a compositional chemical flooding numerical model, to estimate reservoir properties from single-well tests, and apply expery system approaches to design chemical and compositional model input. A largely experimental subtask investigates the effects of cation exchange capacity and chromium retention of the polymer gel process. The final task involves surfactants and their interactions with carbon dioxide and reservoir minerals. This research deals primarily with phenomena observed when aqueous surfactant solutions are injected into oil reservoirs. The reason for injecting surfactant solutions is to render the displacement of oil by carbon dioxide a more efficient process. Aqueous surfactant solutions may disrupt the stability of thin aqueous films, characteristic of water-wet rocks, surfactant solutions may adsorb onto the rock, or surfactant solutions may interact with oil to produce microemulsions. All of these effects are detrimental to the efficiency of carbon dioxide mobility control by foams and all are discussed in the final section of this report.