Natural gas hydrates are crystalline materials formed of natural gas and water at elevated pressures and reduced temperatures. Because natural gas hydrates can plug drill strings, pipelines, and process equipment, there is much effort expended to prevent their formation. The goal of this project was to provide industry with more economical hydrate inhibitors. The specific goals for the past year were to: continue both screening and high pressure experiments to determine optimum inhibitors; investigate molecular mechanisms of hydrate formation/inhibition, through microscopic and macroscopic experiments; begin controlled tests on the Exxon pilot plant loop at their Houston facility; and continue to act as a forum for the sharing of field test results. Progress on these objectives are described in this report.