The Devonian oil shales of the Eastern United States are a significant domestic energy resource. The overall objective of the 3-year program, initiated in October 1987 is to perform the research necessary to develop the pressurized fluidized-bed hydroretorting (PFH) process for producing oil from Eastern oil shales. The program also incorporates research on technologies in areas such as raw shale preparation, beneficiation, product separation, and waste disposal that have the potential of improving the economics and/or environmental acceptability of recovering oil from oil shales using the PFH process. The program is divided into the following eight tasks: Task 1, PFH Scoping Studies; Task 2, PFH Optimization Tests; Task 3, Testing of Process Improvement Concepts; Task 4, Beneficiation Research; Task 5, Operation of PFH on Beneficiated Shale; Task 6, Environmental Data and Mitigation Analyses; Task 7, Sample Procurement, Preparation, and Characterization; Task 8, Project Management and Reporting. In order to accomplish all the program objectives, the Institute of Gas Technology, the prime contractor, is working with seven other institutions; the University of Alabama/Mineral Resources Institute, Illinois Institute of Technology, the University of Michigan, the University of Nevada, Ohio State University, Tennessee Technological University and the University of Pittsburgh. This report presents the work performed during the fifth program quarter from October 1 through December 31, 1988.