The University of Hawaii will continue development of the Hawaii Undersea Geophysical Observatory (HUGO). HUGO is envisioned as a long-term, deep-ocean system of sensors, monitors and inter- connecting electro-optic cables located 1,000 meters deep, atop Loihi Volcano, 35 km southeast of the Island of Hawaii. Design criteria accommodate a suite of acoustic, seismic, and other sensors that will be connected to the fiber-optic backbone system and data transmitted ashore and recorded in real time. With a full suite of sensors, HUGO will be able to continuously monitor seismi- city, tilt, chemical emissions, ocean currents, hydrothermal activity, and other parameters over long time periods. The project will provide useful engineering information that will benefit subsequent seafloor observatories and NSF-sponsored research projects in the future. Scientific data will also be obtained about the Loihi Volcano itself. AT&T is donating a 35-km electro- optic cable and will lay the cable for the University. The University of Hawaii is also providing cost-sharing.