The progress of the government-sponsored projects directed towards increasing gas production from the low permeability gas sands of the western United States is summarized. Planning activities continued for the multi-well experiment. Bartlesville Energy Technology Center continued formation evaluation studies for the WGSP. Theoretical analyses continued at Lawrence Livermore Laboratory for fracture growth across frictional interfaces and fluid flow in a fracture. Studies have begun at Los Alamos Scientific Laboratory on NMR signals coming from fluids in porous media. Analyses continued of information gathered from Sandia's fracture experiment in Grayson County, Texas. Tests using the DOE Well Test Facility were completed for the Colorado Interstate Gas Company cyclic dry gas injection experiment. At the NTS, Sandia is conducting minifractures.