This report summarizes the progress of government sponsored projects undertaken to increase gas production from low-permeability gas sands of the western United States during June, 1978. Background information is given in the September 1977 Status Report, NVO/0655-100. USGS is continuing geological and geophysical studies to characterize the resource base in the four primary study areas. Field work is under way at the following locations: Western Green River Basin, Sand Wash Basin, Central Montana, Southern Piceance Basin, and Uinta Basin near Price, Utah. The DOE funded National Laboratories are continuing their work directed toward the development of mathematical models, new tools and instrumentation systems, data analysis, and rock mechanics. Active field tests and demonstrations continue in the Piceance and Uinta Basins. CIGE Well No. 2 was fractured on June 22, 1978 with 170,500 lb sand and 203,000 gal of gel. 42 figures, 3 tables.