Efforts this quarter have concentrated on design and planning for of a 50 MM scf/d dehydration skid testing at ChevronTexaco's Headlee Gas Plant in Odessa, TX. Potting and module materials testing concluded. Construction of the bench-scale equipment continued and a pre-engineering study on a subsea application of the technology was performed cofunded contracts with Research Partnership for Secure Energy for America and Gas Research Institute. GTI has decreased the effort under this contract pending DOE's obligation of the total contract funding.