In line with industry's traditional strong role in targeting research priorities for the Department of Energy's geothermal program, the new policy thrust toward industrydriven R&D will complement our existing planning processes. Cost-sharing and leveraging of DOE's limited research resources remain critical elements, especially at The Geysers where DOE-funded research must have a very strong potential for yielding early industrial application. Upcoming geothermal reservoir engineering program initiatives respond to industry's expressed need for new exploration technologies to find undiscovered geothermal resources where there are little or no surface manifestations and for drilling innovations to reduce the costs of exploration for such resources. In accord with the Department's policy of focusing on research supported by industry, long-term research on geopressured and hot dry rock resources has been reduced in scope or deferred.

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