this status report summarizes progress of government-sponsored projects directed toward increasing gas production from the low-permeability gas sands of the western united states. work on fracture conductivity, rock-fluid interaction, and log evaluation and interpretation techniques continued at bartlesville. work commenced on completing, testing and possible hydraulic fracturing of the rio blanco natural gas company well no. 397-19-1 and on the evaluation of seismic data for stratigraphic studies of lenticular sands. lll continued experimental and theoretical work on hydraulic fracturing mechanics and analysis of well test data. lasl worked on developing nmr methods to define fluid saturation, porosity, and permeability of western gas sands at in situ conditions. m.d. wood, inc. was involved in design and site preparation for two hydraulic fracture mapping jobs in the cotton valley trend in texas. testing and analyses of the borehole seismic system and borehole hydrophone system continued at sandia. field tests and related activities for the wgsp progressed as scheduled in august. cyclic injection of dehydrated natural gas and production in colorado interstate gas company's miller no. 1 and sprague no. 1 wells continued. the gas producing enterprises, inc wells, natural buttes units 9, 14, 18 and 20 flowed to sales. the mitchell energy corporation muse-duke no. 1 was shut-in for a 15-day pressure buildup test. hydraulic fracture containment experiments and activities in the multi-frac test series continued at the nevada test site for sandia laboratories' mineback program