The objective of the work performed under this directive is to assess whether gas hydrates could potentially be technically and economically recoverable. The technical potential and economics of recovering gas from a representative hydrate reservoir will be established using the cyclic thermal injection model, HYDMOD, appropriately modified for this effort, integrated with economics model for gas production on the North Slope of Alaska, and in the deep offshore Atlantic. The results from this effort are presented in this document. In Section 1, the engineering cost and financial analysis model used in performing the economic analysis of gas production from hydrates -- the Hydrates Gas Economics Model (HGEM) -- is described. Section 2 contains a users guide for HGEM. In Section 3, a preliminary economic assessment of the gas production economics of the gas hydrate cyclic thermal injection model is presented. Section 4 contains a summary critique of existing hydrate gas recovery models. Finally, Section 5 summarizes the model modification made to HYDMOD, the cyclic thermal injection model for hydrate gas recovery, in order to perform this analysis.