This project will investigate a cost-effective method of producing a new oil and gas drilling fluid additive from spent sugar beet pulp, a by-product and waste material from the sugar beet processing industry. The product has the potential of replacing other drilling fluid additives, (a) asbestos. which is an effective additive but which is no longer used because of environmental concerns, (b) CMC polymers, and (c) other viscosifiers. The process to be demonstrated will take the waste sugar beet pulp, slurry it in water, and convert it into a low-cost high-fiber product using fermentation. After fermentation it will be sterilized. dried, ground and tested in two types of drilling fluid systems for performance vis-a-vis other currently competitive products.Applications:This project will lead to the development and demonstration of a high-volume drilling mud additive made from waste sugar beet pulp. The new additive. when used in drilling fluids, w !! provide improved cuttings carrying capacity, improved fluid loss control and increased viscossLy. It will be completed biodegradable and will be environmentally benign. Though estimated commercial production costs are very preliminary because of currently limited laboratory data, we believe that they will be in the range of 40 to 60 cents per pound. A commercial plant would be capable of producing 10 te 15 million pounds per year and would be located in an area where sugar beets are processed .