A summary is presented of the progress of government sponsored projects undertaken to increase gas production from low permeability gas sands of the western United States during May, 1978. Background information is given in the September 1977 Status Report, NVO/0655-100. The Department of Energy's (DOE) Nevada Operations Office (NVO), is finalizing a Request for Proposal (RFP) covering Technical and Administrative Support for the Project Manager for FY79. C. H. Atkinson, the Western Gas Sands Project (WGSP) Manager, was an observer of the third MHF treatment of Mobil Research and Development Corporation's well No. F-31-136. The fracture was performed on May 10, 1978. R. L. Mann of CER Corporation, met with Dr. Steve Holditch of Texas A and M University to discuss the utilization of the PDP 11/10 computer to be installed in the Mobile Well Test Facility. The USGS is continuing geological and geophysical studies in the four primary study areas. Two flights were made in preparation for low-level olique photography. The Bartlesville Energy Research Center (BERC) and participating National Laboratories, funded by DOE, are continuing their work in the area of research and development. The emphasis is on the development of new tools and instrumentation systems, rock mechanics, mathematical modeling, and data analysis. Mitchell Energy Corporation, Houston, Texas was awarded DOE Contract EF-78-C-08-1547 on March 15, 1978. Field work under this contract is scheduled to begin in July, 1978, with the drilling of a new well.