This quarterly report for DE-FG26-04NT42030 covers a period from October 1, 2004 to December 31, 2004. On December 9, 2004 a meeting was held in Morgantown to rescope the LNG safety modeling project such that the work would complement the DOE's efforts relative to the development of the intended LNG-Fluent model. It was noted and discussed at the December 9th meeting that the fundamental research being performed on surface to cloud heat transfer and low wind speed issues will be relevant to the development of the DOE LNG/Fluent Model. In general, it was decided that all research to be performed from December 9th through the remainder of the contract is to be focused on the development of the DOE LNG/Fluent model. In addition, all GTI activities for dissemination and transfer of FEM3A will cease and dissemination activities will focus on the new DOE LNG/Fluent model. The proposed new scope of work is presented in section 4 of this report. The work reported in the present document relates to the original scope of work which was in effect during the reporting period. The future work will be re-scoped to meet the requirements of the new scope of work. During the report period work was underway to address numerical problems present during simulation of low-wind-speed, stable, atmospheric conditions with FEM3A. Steps 1 and 2 in the plan outlined in the first Quarterly report are complete and steps 3 and 4 are in progress. During this quarter, the University of Arkansas has been investigating the effect upon numerical stability of the heat transfer model used to predict the surface-to-cloud heat transfer, which can be important for LNG vapor dispersion. Previously, no consideration has been given to ground cooling as a result of heat transfer to the colder gas cloud in FEM3A.