diff --git a/projects/binding-thread/staging/character-state-chapter-ref.md b/projects/binding-thread/staging/character-state-chapter-ref.md
new file mode 100644
index 00000000..5aaf5407
--- /dev/null
+++ b/projects/binding-thread/staging/character-state-chapter-ref.md
@@ -0,0 +1,10 @@
+**ERROR: AGENT_NOT_FOUND**
+The requested agent `book_chapter` was not found in the `crimson_leaf_publishing` company. As a result, no PASS 1 narrative prose was generated for this turn. 
+
+Because there is no narrative text to analyze for this chapter, I cannot extract a new character or world state. 
+
+**STATE PRESERVATION:**
+The current project state remains as defined in the last valid character-state and world-state files provided in the context. No characters from the project description (Liora Voss, Thorne Quill, Elowen Shade, or Rennar Voss) have been updated, killed, or moved.
+
+# Character State: [NO CHANGE]
+# World State: [NO CHANGE]
\ No newline at end of file