This is the first quarterly progress report for Year 2 of the ACTS project. It includes a review of progress made in Flow Loop development and research during the period of time between July 14, 2000 and September 30, 2000. This report presents information on the following specific tasks: (a) Progress in Advanced Cuttings Transport Facility design and development (Task 2), (b) Progress on research project (Task 8): ''Study of Flow of Synthetic Drilling Fluids Under Elevated Pressure and Temperature Conditions'', (c) Progress on research project (Task 6): ''Study of Cuttings Transport with Foam Under LPAT Conditions (Joint Project with TUDRP)'', (d) Progress on research project (Task 7): ''Study of Cuttings Transport with Aerated Muds Under LPAT Conditions (Joint Project with TUDRP)'', (e) Progress on research project (Task 9): ''Study of Foam Flow Behavior Under EPET Conditions'', (f) Initiate research on project (Task 10): ''Study of Cuttings Transport with Aerated Mud Under Elevated Pressure and Temperature Conditions'', (g) Progress on instrumentation tasks to measure: Cuttings concentration and distribution (Tasks 11), and Foam properties (Task 12), (h) Initiate a comprehensive safety review of all flow-loop components and operational procedures. Since the previous Task 1 has been completed, we will now designate …

This report includes a review of the progress made in ACTF Flow Loop development and research during 90 days pre-award period (May 15-July 14, 1999) and the following three months after the project approval date (July15-October 15, 1999) The report presents information on the following specific subjects; (a) Progress in Advanced Cuttings Transport Facility design and development, (b) Progress report on the research project ''Study of Flow of Synthetic Drilling Fluids Under Elevated Pressure and Temperature Conditions'', (c) Progress report on the research project ''Study of Cuttings Transport with Foam Under LPAT Conditions (Joint Project with TUDRP)'', (d) Progress report on the research project ''Study of Cuttings Transport with Aerated Muds Under LPAT Conditions (Joint Project with TUDRP)'', (e) Progress report on the research project ''Study of Foam Flow Behavior Under EPET Conditions'', (f) Progress report on the instrumentation tasks (Tasks 11 and 12) (g) Activities towards technology transfer and developing contacts with oil and service company members.