Since the Geothermal Loop Experimental Facility (GLEF) start-up in May, 1976, a substantial amount of information has been obtained on the operation of the plant, components, brine and steam composition, production and injection wells, and the potential of the Niland Reservoir. The GLEF was modified in April, 1978, from a four stage flash/binary process to a two stage cycle for the extraction of energy from a high temperature, high salinity, liquid dominated resource. This quarterly summarizes the general operations and accomplishments of the GLEF during the period from October 1, 1978 through December 31, 1978