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. Along with the major activity of assembling the components of the 50-lb/hr retort, work was also completed in other areas this quarter. 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.