*** 9661329 Shannon This Small Business Innovation Research Phase I project involves the characterization of microorganisms capable of degrading the gasoline oxygenate methyl tert-butyl ether (MTBE), and development of an in situ bioremediation process for treatment of MTBE-contaminated soils and aquifers. MTBE has been used since 1979 as a high-octane additive to reduce the more toxic aromatic additives that have previously been used in gasoline. Almost 18 billion pounds of MTBE were produced in the U. S. in 1995, and it accounts for up to 11% of the reformulated gasoline used by consumers. Its widespread use has resulted in its accidental discharge and the subsequent contamination of aquifers and soils. The U. S. Geological Survey has estimated that MTBE is the second most common water pollutant in urban ground waters. Few studies have been done to evaluate the biodegradation and fate of MTBE. This research project will investigate MTBE degradation by an MTBE-degrading propane-oxidizing bacterial strain M. vaccae JOB5 and three MTBE-degrading strains recently isolated by the firm. The study will determine rates and mechanisms of degradation, and systematically characterize the conditions needed for in situ biostimulation using model aquifers. The cost of remediating leaking underground storage tanks has been estimated to be greater than $1.8 billion if we must rely on current technologies. The in situ technology developed during this project will be incorporated into the firm's existing remediation technologies to develop an economically feasible system for degrading MTBE. The technology will be widely applicable at both government and private sites. ***