It was shown that a microsphere within the structure limitations is hydrodynamically stable. To insure its perfect formation, the initial chemical compositions must have a blowing capability, more important, the resultant liquid compositions must also have sufficient surface tension and low viscosity.

A modified test technique has been developed in this program to overcome difficulties in assessing the hydrogen embrittlement susceptibility of low strength 2 1/4 Cr-1 Mo steels. One steel sample was tempered to a range of strength levels and evaluated using the new technique. The results, showing a lower strength level for which hydrogen embrittlement susceptibility can be assessed in a 446 KPa H/sub 2/S environment, are presented in this report. A review of the restructuring of the program is also given.

A system was designed and built to simulate the flow from a geothermal well. The simulated flow will be used to power a Lysholm engine, the performance of which will then be evaluated for different simulated geothermal flows. Two main subjects are covered: 1) the design, construction and evaluation of the behavior of the system that simulates the geothermal flow; included in that topic is a discussion of the probable behavior of the Lysholm engine when it is put into operation, and 2) the investigation of the use of dynamic modeling techniques to determine whether they can provide a suitable means for predicting the behavior of the system.