This report describes the progress of our research during the first 30 months (10/01/2004 to 03/31/2007) of the original three-year project cycle. The project was terminated early due to DOE budget cuts. This was a joint project between the Tertiary Oil Recovery Project (TORP) at the University of Kansas and the Idaho National Laboratory (INL). The objective was to evaluate the use of low-cost biosurfactants produced from agriculture process waste streams to improve oil recovery in fractured carbonate reservoirs through wettability mediation. Biosurfactant for this project was produced using Bacillus subtilis 21332 and purified potato starch as the growth medium. The INL team produced the biosurfactant and characterized it as surfactin. INL supplied surfactin as required for the tests at KU as well as providing other microbiological services. Interfacial tension (IFT) between Soltrol 130 and both potential benchmark chemical surfactants and crude surfactin was measured over a range of concentrations.