This report summarizes the progress made on the development of an integrated multistage fluidized bed retorting process (KENTORT II) during the period of October 1, 1992 through September 30, 1993 under Cooperative Agreement No. DE-FC21-90MC27286 with the Morgantown Energy Technology Center, US Department of Energy. The KENTORT II process includes integral fluidized bed zones for pyrolysis, gasification, and combustion of the oil shale. The purpose of this program is to design and test the KENTORT II process at the 50-lb/hr scale. The PDU was assembled, instrumented and tested during this fiscal year. Along with the major activity of commissioning the 50-lb/hr retort, work was also completed in other areas. Basic studies of the cracking and coking kinetics of model compounds in a fixed bed reactor were continued. Additionally, as part of the effort to investigate niche market applications for KENTORT II-derived products, a study of the synthesis of carbon fibers from the heavy fraction of KENTORT II shale oil was initiated.