The principal research effort for the first six months of Year 2 of the project has been petroleum system characterization. Understanding the burial and thermal maturation histories of the strata in the onshore interior salt basins of the North Central and Northeastern Gulf of Mexico areas is important in petroleum system characterization. The underburden and overburden rocks in these basins and subbasins are a product of their rift-related geohistory. Petroleum source rock analysis and thermal maturation and hydrocarbon expulsion modeling indicate that an effective regional petroleum source rock in the onshore interior salt basins, the North Louisiana Salt Basin, Mississippi Interior Salt Basin, Manila Subbasin and Conecuh Subbasin, was the Upper Jurassic Smackover lime mudstone. The Upper Cretaceous Tuscaloosa shale was an effective local petroleum source rock in the Mississippi Interior Salt Basin and a possible local source bed in the North Louisiana Salt Basin. Hydrocarbon generation and expulsion was initiated in the Early Cretaceous and continued into the Tertiary in the North Louisiana Salt Basin and the Mississippi Interior Salt Basin. Hydrocarbon generation and expulsion was initiated in the Late Cretaceous and continued into the Tertiary in the Manila Subbasin and Conecuh Subbasin. Reservoir rocks include Jurassic, Cretaceous and …