This is the first annual report on a continuing investigation at the Lawrence Livermore Laboratory (LLL) into the environmental ramifications of in situ coal gasification. The investigation is focused on changes in ground-water quality and the effects of ground movement and subsidence, which represent important environmental concerns associated with the in situ coal gasification process. Our methods include laboratory measurements, predictive modeling studies, and field measurements carried out in conjunction with LLL coal gasification experiments in northeastern Wyoming. These activities will serve as a basis for the identification of appropriate environmental control technologies. Our measurements of ground-water quality near the first LLL gasification experiment indicate that the concentration of many potential contaminants decreases significantly as a result of adsorption by the surrounding coal. For example, the concentration of phenolic materials decreased by a factor of 50 in a period of 280 days. To investigate subsidence phenomena, we have conducted triaxial strength tests on geologic core samples from the gasification site and have installed an array of surface and subsurface geotechnical instruments to be used in conjunction with a second LLL gasification experiment. Such measurements will enable us to refine our finite element modeling capabilities, which have been used to predict subsidence effects at the LLL in situ gasification site.