Contract objectives are as follows: develop fuel specifications to serve combustor requirements; select coals having appropriate compositional and quality characteristics as well as an economically attractive reserve base; provide quality assurance for both the parent coals and the fuel forms; and deliver premium coal-based fuels to combustor developers as needed for their contract work. During the second quarter of this contract effort, the primary activities were involved with: continuation of development of fuel requirements (i.e., specifications, quantities, schedule); acquisition and bench-scale characterization of candidate coal samples; selection of coal water slurry fuel manufacturer; procurement of parent coal for fuel production; deep cleaning by froth flotation of parent coal; production of solid fuel (i.e., size reduction of deep cleaned parent coal) and delivery to combustors/experimenters; production of slurry fuel and delivery to combustors/experimenters; and completion of Final Version of First Quarterly Report.