A phase 11 study has been initiated to investigate surfactant-assisted coal liquefaction, with the objective of, quantifying the enhancement in liquid yields and product quality. This report covers the third quarter of work. The major accomplishments were (1) completion of coal liquefaction autoclave reactor runs and related analysis with Illinois {number_sign}6 coal at a processing temperature of 375{degree}C, and pressures of 1800 and 1500 psig, (2) completion and analysis of two autoclave reactor runs to observe the synergistic effect of the surfactant and an iron catalyst, and (3) setting up a subcontract with HRI Inc. to test the surfactant enhanced liquefaction process in a continuous flow reactor.