The overall objective is to develop a new technology for manufacturing valuable marketable products from shale oil. The quarter`s efforts were concentrated on (a) THDA and reaction of alkylpyridines at elevated conditions, (b) compound type analysis of kerogen oil and its derived products, (b) thermal hydrodealkylation of the > 290{degrees}C polar fraction, (c) secondary reactions of pyridinic type compounds to form marketable products, and (d) preparation of presentation to the Dawnbreaker Commercial Assistance Program. Excellent progress is being made in all cases. Our market analysis and industrial feedback indicate that the low molecular weight pyridines are the main market driving force. We are concentrating our effort toward increasing the yield of light pyridines before the end of Phase II(a). Our current laboratory set-up can only produce analytical quantity of samples, which is not sufficient for marketing purpose. However, the completion of a secondary flow THDA unit for a pilot-scale production depends on the availability of the Phase-II(b) and Phase-III funding.