This report examines the state of practice and state of art in the characterization of fractured rock and the chemical and biological processes related to subsurface contaminant fate and transport. It also examines new developments, knowledge, and approaches to engineering at fractured rock sites. Fundamental understanding of the physical nature of fractured rock has changed little since 1996, but many new characterization tools have been developed, and there is now greater appreciation for the importance of chemical and biological processes that can occur in the fractured rock environment.