This report summarizes the development of the KENTORT II process during the period of September 1, 1986 through December 31, 1989. The purpose of this program was to develop on a small scale a process to improve efficiency, process economics, and resolve environmental problems involved in the utilization of eastern US oil shale as an energy source and chemical feedstock. The process includes fluidized bed sections of pyrolysis, gasification, and combustion with combined solid/gas heat transfer among the stages. The operation of each zone of the KENTORT II process was demonstrated both separately in a bench-scale unit and as an integrated system in a 5-lb/hr mini-plant. Sulfur removal of up to 91% was achieved following integral pyrolysis-gasification processing, and no more than 8.3% of the sulfur was converted to SO{sub 2} when the combustion zone was in operation. Carbon gasification proceeded more slowly than sulfur removal, but a significant amount of H{sub 2}-rich syngas was produced. Under most conditions, sufficient hydrogen was produced to completely upgrade the crude shale oil. Heat transfer to the pyrolysis zone by solid recirculation was shown to be practical and did not seriously reduce oil yields. Oil yields averaged 111% of modified Fischer assay when the miniplant was operated with solid recirculation and with the combustor in place. This study was successful in experimentally demonstrating the KENTORT II process at a miniature scale, and it is recommended that development of the process continue. Due to the geometry of the KENTORT II design, a commercially realistic heat transfer situation could be not achieved in the 5-lb/hr system. 50 refs., 63 figs., 28 tabs.