During the second quarter of FY 1977, we made plans for a second major in situ gasification experiment at the Hoe Creek, Wyoming site. To increase our understanding of the potential environmental effects of underground coal gasification, we continued to sample water from wells drilled at and around the site of Hoe Creek Experiment No. 1. Contracts were granted for the development of a shaped charge that may be used to establish a permeable channel between production and injection wells. Attempts were also made to increase the accuracy of our methods of predicting permeability enhancement caused by high explosives. Our model of the gasification process was further refined this quarter. Considerable attention was devoted to newly available reports on Soviet-bloc underground coal gasification experiments.