The ETC's are active in several areas of research in extraction, processing and utilization of fossil liquids. Current on-going activities with some adjustments in direction as research proceeds, should be continued and supported. As these studies progress we will be constantly monitoring research on fossil liquids, attempting to fill significant gaps left by industry and others and identifying the critical areas requiring attention. Mr. M. A. Albright of Phillips Petroleum, in a recent address to a meeting on design properties for coal liquefaction, has suggested several research areas requiring attention: High temperature measurements Critical evaluation of present data Characterization of heavy fractions High pressure-high temperature thermodynamic and physical property measurements Chemical equilibrium "Supercritical" equilibrium Phase equilibrium Environmental protection data Product stability data Viscosity Pipeline characteristics These activities are also important in the conduct of research on heavy ends/ heavy oils and other syncrudes. The ETC's have been working in most of these areas for some time and will be called upon in the future to continue to do so because of their complexity and the long-term commitments they entail. These are the problem areas in which the ETC's can and have made valuable contributions. The present and projected budgets are shown in Table 1. Out year budgets are considered inadequate for new project starts and increased activity in current projects such as the reference fuels.