The design of the wet-carbonization process research unit (PRU) continued during the current quarter. The PRU is designed to handle about 100 lb/h of as-received coal. The main reactor will be able to operate at a maximum temperature of 650/sup 0/F and a pressure of 2300 psig. Process flow and instrument diagrams for the system were completed. Equipment purchased during this quarter included the high-pressure feed and discharge screws, five pressure vessels and three pumps. Structural, electrical, and process control and data acquisition instrumentation bid packages have been prepared. Nine batch wet-carbonization tests were conducted during this quarter. Three coals were tested: two from North Dakota (lignites from Mercer and Oliver counties) and one from Montana (Rosebud subbituminous). The operating conditions of the tests covered a temperature range of 400/sup 0/ to 650/sup 0/F and a residence time range of 0 to 60 minutes. Preliminary results indicated that heating value enhancements of about 17% (ash-free basis) were achieved with Indian Head lignite wet carbonized at 650/sup 0/F for 60 minutes. A fourth coal, from the South Hallsville mine near Martin Lake, Texas, will be tested. Two tons of this Texas lignite are scheduled to be delivered in February. Tests to determine the weathering characteristics of these beneficiated coals are also being conducted. These include drop-shatter tests, equilibrium moisture content determinations, bulk and particle density measurements, and particle shrinkage determinations. Preliminary results indicate that increasing the wet-carbonization temperature from 400/sup 0/ to 550/sup 0/F decreased the equilibrium moisture content of the Indian head lignite from about 26 to 17 wt %. Liquid samples from these tests were collected for bioassay tests. 11 figs., 4 tabs.