Summary of results obtained in the last quarter are presented for the following tasks: (1) advanced core analysis which covers pore structure by uv reflectance microscopy and clay analysis of MWX cores; (2) flow along and across fractures; (3) chemical alteration of various mineralogical components and resultant effects on permeability; and (4) effect of water on gas production. 9 refs., 4 figs., 2 tabs.