Progress reports are presented for the following tasks: (1) advanced core analysis; (2) flow along and across fractures; (3) chemical alteration; and (4) effect of water on gas production. Much of the advanced core analysis work needed to aid in the selection of cores for other tasks has been completed. Three areas where work is continuing are electrical resistivity, clay analysis, and preparation of thin sections. For task 2, core analysis work on core samples containing calcite-filled natural fracture is continuing. The status of work performed to date on such fractures is summarized. Chemical alteration of various mineralogical components and resultant effects on permeability were investigated using sodium hydroxide and oxalic acid. For task 4, a topical report is currently in preparation on ''Effect of Drying on Absolute and Relative Permeabilities of Low Permeability Gas Sands.''According to this report, permeabilities of cores which had been allowed to dry tended to be higher than those of the fresh ones. 6 refs., 6 figs., 1 tab.