The lignite used for Phase I of the project will be a Texas lignite from the Martin Lake mine. A test plan has been submitted to the GFPO outlining the specific grinding tests to be run in the fluid-energy mill. The primary grinding fluid will be steam, but ambient air will also be used in one run to provide an expanded data base. The data from these tests will consist of properties of ultra finely ground lignite samples and energy usage measurements. The energy usage will be deduced from temperature, pressure and flow rate measurements at various locations in the mill system. These data will be collected on a microprocessor based data acquisition system which is currently being assembled and tested. A detailed literature review has been conducted to assess the state-of-the-art in ultra fine pulverization of solids and the properties of ultra fine ground coal. The literature surveyed includes technical papers and commercial vendor information. The capacities and power consumption of commercially available equipment are being tabulated. The mill types being considered are conventional tumbling mills (ball, rod, tube, cone), vibratory mills, impact mills, attrition mills and fluid-energy mills.