Noncaking 0- by 2-inch subbituminous a coal from New Mexico was gasified with air and stream at 205 psig using a stirred-bed producer to determine coal losses by entrainment in the gas for this low-sulfur, high-ash coal which contained 20 percent particles smaller than 1/16-inch sieve size. The use of fine sized coal has particular importance because most production from mechanized mines is smaller than 2-inch size. This initial attempt showed technical feasibility for gasifying New Mexico subbituminous coal containing small-sized particles in fixed-bed producers without excessive coal loss by entrainment. Dust loss averaged about 2 percent of moisture- free coal, most of which was recovered from the gas. Ash clinkering was controlled by adding 1,010 lb/hr steam to reduce temperatures in the combustion zone. Yield of low-btu fuel gas, 150 btu per scf, dry, amounted to 69,800 scfh from 1,490 lb/hr coal (as received) and 3,450 lb/hr air (dry).