This report summarizes progress of government-sponsored projects directed toward increasing gas production from the low-permeability gas sands of the western United States. The USGS in Denver continued work toward resource assessment in the four primary study areas. Preparations continue for the coring of the Pacific Transmission Supply Company No. 3-10A Federal well in Sweetwater County, Wyoming, and coring and logging operations were completed at PTS No. 22-12 Federal well, Rio Blanco County, Colorado. Work on fracture conductivity, rock-fluid interaction and log evaluation and interpretation techniques continued at Bartlesville. The Gas Research Institute suspended work on the Rio Blanco 397-19-1 Government well but continued progress on two other projects. Lawrence Livermore Laboratory continued work on hydraulic fracturing mechanics. Los Alamos Scientific Laboratory continued NMR resonance studies. Analyses of the borehole seismic system and the borehole hydrophone system continued at Sandia Laboratories, as well as electromagnetic logging experimentation. Field tests and demonstrations are reported on.