This report summarizes the progress of the government-sponsored project directed towards increasing gas production from the low permeability gas sands of the western United States. The planning activities for the multi-well experiment continued in May. Bartlesville Energy Technology Center continued formation evaluation and reservoir simulation studies. Lawrence Livermore Laboratory continued calculations of fracturing near interfaces. Los Alamos Scientific Laboratory focused work on the permanent magnet system for NMR logging. Results of the 3-D Seismic Reflection Survey were presented by Sandia Laboratories. Production and injection experiments continued for the Colorado Interstate Gas Company Miller No. 1 and Sprague No. 1 wells. The DOE Well Test Facility was transported to Las Vegas for repairs and modifications. In situ testing continued at the Nevada Test Site for the Sandia Mineback program.