This quarterly report summarizes work on the following tasks as of September 30, 1982: (1) OTEC pilot plant conceptual design review; (2) OTEC methanol; (3) financial and legal considerations in OTEC implementation; (4) GEOTEC resource exploration at Adak, Alaska, and Lualualei, Hawaii; (5) preliminary GEOTEC plant cost estimates; and (6) supervision of testing of pneumatic wave energy conversion system.