This report describes the activities of the project team during the reporting period. The principal work has focused upon microscopic evaluation of sandblast residue treated with two by-products, completing scholarly work, seeking a subcontractor to replace Mill Service, Inc. (MSI) for the field work of Phase 2, preparing and giving a poster, and making and responding to several outside contacts. The main part of this report is found in an appendix entitled, Chemistry and microstructure of sand blast waste and its residue when treated with by-products from clean coal technologies.