Prepare peaches by removing pits and finely chopping them. Place in saucepan; add 1-1/2 cups water. Bring to boil. Reduce heat, cover and simmer 5 minutes. Place prepared peaches in dampened jelly bag or several layers of dampened cheesecloth. Let juice drip, undisturbed, for at least 2 hours or overnight. Note: Squeezing the jelly bag may cause jelly to be cloudy.

Prepare boiling water canner. Heat jars in simmering water until ready for use. Do not boil. Wash lids in warm soapy water and set bands aside.

Measure juice and other ingredients. If you need more juice, simply add water to fruit pulp and extract.

Combined prepared juice with lemon juice and sugar in a 6-or 8-quart saucepan. Add up to 1/2 tsp. butter or margarine to reduce foaming, if desired. Bring mixture to a full rolling boil that cannot be stirred down, over high heat, stirring frequently.

Add pectin, immediately squeezing entire contents from pouches. Continue hard boil for 1 minute, stirring constantly. Remove from heat. Skim foam if necessary.

Ladle hot jelly into a hot jar, leaving 1⁄4-inch headspace. Remove air bubbles. Wipe jar rim. Center lid on jar. Apply band and adjust to fingertip-tight. Place jar in boiling-water canner. Repeat until all jars are filled.

Process jars 10 minutes, adjusting for altitude. Turn off heat, remove lid, let jars stand 5 minutes. Remove jars and cool 12-24 hours. Check lids for seal, they should not flex when center is pressed.

*CAUTION: Do not use this process to can white-flesh peaches. Some varieties of white-flesh peaches are higher in pH (i.e. lower in acid) making them a low-acid food for canning purposes. At this time there are no low-acid or acidification procedures for white-flesh peaches.