A phase 2 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 fourth quarter of work. The major accomplishments were (1) Completion of coal liquefaction autoclave reactor runs and related analysis with Illinois {number_sign}6 coal with time as a variable at 375{degree}C, and pressures of 1800 psig; (2) an investigation into the mechanism of the effect that the lignosulfonate surfactant has in enhancing liquefaction yields; and (3) completion of a bench-scale test with the surfactant in the continuous flow Catalytic Two Stage Liquefaction Process (CTSL) reactor at HRI.