Starch-fermenting bacteria were found in each of 12 samples of nonfermenting starch-base drilling mud examined. Of the 12 samples, 3 contained very active starch-fermenting gram-positive spore-bearing bacilli closely resembling Bacillus subtilis. Similar active starch-fermenting bacteria were found in fermenting starch-base drilling mud and in corn starch and slough water used to prepare such mud. The active starch-fermenting microorganisms completely hydrolyzed 1% (w/v) corn starch within 24 hr at 37.5 C. The active starch-fermenting bacteria isolated from fermenting drilling mud were capable of surviving 12 hr of continuous exposure to 0.1% (w/w) paraformaldehyde or 1 hr of continuous exposure to 0.5% (w/w) paraformaldehyde, with no diminution in starch-fermenting ability. The same organisms fermented starch after 3 hr of continuous exposure to 0.5% (w/w) paraformaldehyde, but not after 4 hr of exposure. The phenomenon of rapid disappearance of paraformaldehyde from fermenting drilling mud was observed in the laboratory using a modified sodium sulfite test. Paraformaldehyde, initially present in a concentration of 0.192 lb per barrel of mud, completely disappeared in 9 hr at 22 to 23 C. A significant decrease in paraformaldehyde concentration was detected 0.5 hr after preparation of the mud. It is suggested that the presence of relatively high concentrations of ammonia and chloride in the mud may facilitate the disappearance of paraformaldehyde. The failure of 0.1% (w/w) paraformaldehyde to inhibit the strong starch-fermenting microorganisms isolated from fermenting drilling mud, and the rapid disappearance of paraformaldehyde from the mud, explains the fermentation of starch which occurred in this mud, despite the addition of paraformaldehyde.