The overall objective is to develop a new technology for manufacturing valuable marketable products from shale oil. Phase I objectives are to identify desirable components in shale oil, develop separations techniques for those components, identify market needs and to identify plausible products manufacturable from raw shale oil to meet those needs. The quarter`s efforts were concentrated on (a) compound type analysis of shale oil and its extraction products, (b) thermal hydrodealkylation of the >290{degrees}C polar fraction, (c) reaction of pyridinic type compounds to form secondary products, (d) updating SPX economic analysis, and (e) preparation of a business plan for presentation before the Dawnbreaker Commercial Assistance Program. The subcontract on the thermal hydrodealkylation work at the University of Utah ended at May 3 1, 1996. We have obtained valuable information from the batch experiments. The progress on the flow reactor proved somewhat limited because of the restriction of the existing reactor configuration. The liaison with potential industrial partners is continuing. An additional company has reached agreement to proceed with a geochemical testing of shale oil derived products.