Houston Lighting and Power Company (HL&P), in conjunction with the JTM Industries Inc. - Ash Management Division (AMD) and Texas A&M University at Galveston (TAMUG), is currently investigating the use of coal conbustion by-products (CCBP) as artificial reef substrate for the enhancement and construction of inshore oyster reefs and offshore fish reefs. Intensive laboratory and field research initiated in the spring of 1988 has yielded very promising results. State and federal regulatory agencies have been kept apprised of project results, and remain fully supportive of this effort to develop an environmentally sound, economic material suitable for the creation and enhancement of reef habitat. If economically feasible, large-scale production of artificial reef substrate materials for oyster reef construction and enhancement along the Gulf Coast of Texas is planned.