Work continued this quarter on the design and procurement of equipment to construct the wet-carbonization process research unit designed to process about 100 lb/h of as-received coal. Eight batch set-carbonization tests were conducted this quarter. Tests have now been conducted with all four coals specified in the approved test plan. The operating conditions for the tests were temperatures, pressures, and residence times in the range of 400/sup 0/ to 650/sup 0/F, 250 to 3300 psia, and 0 to 60 minutes, respectively. Results to date show that overall component conversions for the two North Dakota lignites are similar for the tests conducted at comparable conditions. The Texas lignite is less reactive and the Montana subbituminous is significantly less reactive than the North Dakota lignites. Handling characterization tests were conducted with raw and wet-carbonized coals. These tests include drop-shatter tests, equilibrium moisture content determinations, bulk and particle measurements, and particle shrinkage determinations. Particle-size reduction due to drop-shatter testing of wet-carbonized coal was greater than that of the corresponding feed coal and increased with wet-carbonization severity. However, the raw coal decrepitated (crumbled) much more readily than the air-dried wet-carbonized coal. Bulk density decreased by about 2% with increasing wet-carbonization temperature, but differed by less than 2% from the corresponding raw coal bulk density. Anaerobic biogasification potential assays were conducted this quarter to determine the biodegradability of liquid product samples from the batch wet-carbonization tests. After 60 days of incubation at 35/sup 0/C, no gas production from any of the samples was observed. Gas production was observed, however, in a diluted sample, indicating that the organisms were being acclimated to the liquid product at dilute concentrations. 20 figs., 12 tabs.