Progress of the government-sponsored projects directed toward increasing gas production from low-permeability gas sands of the western United States is summarized. During March, National Laboratories and Energy Technology Centers generally progressed on schedule. Bartlesville Energy Technology Center continued work on fracture conductivity, rock-fluid interaction, and log evaluation techniques. Theoretical and experimental work on hydraulic fracturing mechanics and analysis of well test data continued at Lawrence Livermore Laboratory. Sandia Laboratories completed preparations for the NTS evaluation test of the borehole seismic system. M.D. Wood, Inc. monitored the formation of a hydraulic fracture in the Wattenburg gas field, Weld County, Colorado. Measurement of bottom-hole pressure in the Miller No. 1 and Sprague No. 1 wells for the CIG cyclic gas injection project continued. The Mitchell Energy Corporation Muse--Duke No. 1 was flowing 4,000 MCFD in March. Efforts to clean out Mobil's PCU F31-13G well continued.