| U.S. SECURITIES AND EXCHANGE      COMMISSIONWashington,D.C. |
|-------------------------------------------------------------|

| Form 10-Q |
|-----------|

| (Mark one) |
|------------|

| [ X ] | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities      Exchange Act of 1934 for the quarterly period ended September 30,      2008 |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| OR |
|----|

| [ ] | Transition Report Pursuant to Section 13 or 15(d) of the Securities      Exchange Act of 1934 |
|-----|-----------------------------------------------------------------------------------------------|

| Commission File No.  0-29417 |
|------------------------------|

|   |
|--------|

|   | ALL Fuels & Energy Company                              |   |
|--------|-------------------------------------------------------------|--------|
|   | (Exact name of registrant as specified in      its charter) |   |

|   |
|--------|

|   | DELAWARE |   | 62-1581902 |   |
|--------|----------|--------|------------|--------|

|   | (State or Other Jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification Number) |   |
|--------|---------------------------------------------------------------|--------|----------------------------------------|--------|

|   |
|--------|

|   | 6165 N.W. 86th Street, Johnston, Iowa      50131 |   |
|--------|--------------------------------------------------|--------|

|   | (Address of principal executive offices,      including zip code) |   |
|--------|-------------------------------------------------------------------|--------|

|   | (515) 331-6509 |   |
|--------|----------------|--------|

|   | (Issuer’s telephone number, including area      code) |   |
|--------|-------------------------------------------------------------|--------|

|   |
|--------|

| Indicate by check mark whether the registrant (1) has filed all      reports required to be filed by Section 13 or 15(d) of the Securities      Exchange Act of 1934 during the preceding 12 months (or for such shorter      period that the registrant was required to file such reports), and (2) has      been subject to such filing requirements for the past 90 days. Yes [X] No      [ ] |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Indicate by check mark whether the registrant is a large accelerated      filer, an accelerated filer, a non-accelerated filer, or a smaller      reporting company. See the definitions of "large accelerated filer,"      "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the      Exchange Act. (Check one): |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Large accelerated filer [ ] |   | Accelerated filer [ ] |
|-----------------------------|--------|-----------------------|

| Non-accelerated filer [ ] (Do not check if a smaller reporting      company) |   | Smaller reporting company [ X ] |
|------------------------------------------------------------------------------|--------|---------------------------------|

| Indicate by check mark whether the registrant is a shell company (as      defined in Rule 12b-2 of the Exchange Act).Yes [ ] No [ X ] |
|---------------------------------------------------------------------------------------------------------------------------------------|

| As of November 17, 2008, there were 51,709,360 shares of the issuer’s      common stock outstanding. |
|------------------------------------------------------------------------------------------------------------|

| PART I - FINANCIAL  INFORMATION |
|---------------------------------|

| Item 1. Financial Statements |
|------------------------------|

| INDEX TO FINANCIAL  STATEMENTS |
|--------------------------------|

|   | Page |
|--------|------|

| ALL Fuels & Energy Company |
|--------------------------------|

| Condensed Consolidated Balance Sheets as of September 30, 2008      (unaudited), and December 31, 2007 (audited) | 3 |
|------------------------------------------------------------------------------------------------------------------|---|

| Condensed Consolidated Statements of Operations for the Three Months      and Nine Months Ended September 30, 2008 (unaudited) and 2007 (unaudited),      and the Period from Commencement of Development Stage (June 7, 2004) to      September 30, 2008 (unaudited) | 5 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|

| Condensed Consolidated Statements of Cash Flows for the Nine Months      Ended September 30, 2008 (unaudited) and 2007 (unaudited), and the Period      from Commencement of Development Stage (June 7, 2004) to September 30,      2008 (unaudited) | 6 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|

| Notes to Condensed Consolidated Financial Statements | 8 |
|------------------------------------------------------|---|

|   | ALL FUELS & ENERGY COMPANY |   |
|--------|--------------------------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | CONDENSED CONSOLIDATED BALANCE    SHEETS |   |
|--------|------------------------------------------|--------|

|   | September 30, 2008, and December 31,      2007 |   |
|--------|------------------------------------------------|--------|

|   | 9/30/08unaudited |   | 12/31/07 |
|--------|------------------|--------|----------|

| ASSETS |
|--------|

| Current assets |
|----------------|

|   | Cash and cash equivalents | $67,156 |   | $612,888 |
|--------|---------------------------|---------|--------|----------|

|   | Prepaid expenses | 31,649 |   | 52,637 |
|--------|------------------|--------|--------|--------|

|   | Total current assets | 98,805 |   | 665,525 |
|--------|----------------------|--------|--------|---------|

| Property and equipment - at cost |
|----------------------------------|

|   | Land | 951,238 |   | 951,238 |
|--------|------|---------|--------|---------|

|   | Equipment | 1,729 |   | 1,093 |
|--------|-----------|-------|--------|-------|

|   | Construction in progress | --- |   | 187,024 |
|--------|--------------------------|-----|--------|---------|

|   |   | 952,967 |   | 1,139,355 |
|--------|--------|---------|--------|-----------|

|   | Less accumulated depreciation | (670) |   | (275) |
|--------|-------------------------------|-------|--------|-------|

|   | Total property and equipment - net | 952,297 |   | 1,139,080 |
|--------|------------------------------------|---------|--------|-----------|

| Other assets |
|--------------|

|   | Deferred borrowing costs | 2,452 |   | 3,672 |
|--------|--------------------------|-------|--------|-------|

|   | Total other assets | 2,452 |   | 3,672 |
|--------|--------------------|-------|--------|-------|

|   | Total assets | $1,053,554 |   | $1,808,277 |
|--------|--------------|------------|--------|------------|

| The accompanying notes are an integral part of these    statements. |
|---------------------------------------------------------------------|

|   | 9/30/08unaudited |   | 12/31/07 |
|--------|------------------|--------|----------|

| LIABILITIES AND STOCKHOLDERS’ EQUITY(DEFICIT) |
|-----------------------------------------------------|

| Current liabilities |
|---------------------|

|   | Accounts payable and accrued expenses | $181,060 |   | $83,992 |
|--------|---------------------------------------|----------|--------|---------|

|   | Unearned rental income | 10,000 |   | --- |
|--------|------------------------|--------|--------|-----|

|   | Total current liabilities | 191,060 |   | 83,992 |
|--------|---------------------------|---------|--------|--------|

| Long term debt | 488,000 |   | 488,000 |
|----------------|---------|--------|---------|

|   | Total liabilities | 679,060 |   | 571,992 |
|--------|-------------------|---------|--------|---------|

| Stockholders’ equity (deficit) |
|--------------------------------------|

|   | Common stock, $.01 par value; 80,000,000 shares authorized,      51,709,360 and 51,365,719 shares issued and outstanding | 517,094 |   | 513,658 |
|--------|--------------------------------------------------------------------------------------------------------------------------|---------|--------|---------|

|   | Additional paid-in capital | 15,989,479 |   | 14,981,840 |
|--------|----------------------------|------------|--------|------------|

|   | Treasury stock, at cost | (150,000) |   | (150,000) |
|--------|-------------------------|-----------|--------|-----------|

|   | Receivable from shareholder | (50,000) |   | (50,000) |
|--------|-----------------------------|----------|--------|----------|

|   | Accumulated deficit | (6,423,944) |   | (6,423,944) |
|--------|---------------------|-------------|--------|-------------|

|   | Deficit accumulated during the development stage | (9,508,135) |   | (7,635,269) |
|--------|--------------------------------------------------|-------------|--------|-------------|

|   | Total stockholders’ equity (deficit) | 374,494 |   | 1,236,285 |
|--------|--------------------------------------------|---------|--------|-----------|

|   | Total liabilities and stockholders’ equity (deficit) | $1,053,554 |   | $1,808,277 |
|--------|------------------------------------------------------------|------------|--------|------------|

| The accompanying notes are an integral part of these    statements. |
|---------------------------------------------------------------------|

|   | ALL FUELS & ENERGY COMPANY |   |
|--------|--------------------------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | CONDENSED CONSOLIDATED STATEMENTS OF      OPERATIONS |   |
|--------|------------------------------------------------------|--------|

|   | For the Three Months and Nine Months Ended      September 30, 2008 and 2007, and the Period from Commencement of      Development Stage (June 7, 2004) to September 30, 2008 |   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   | Three Months Ended September 30, |   | Nine Months EndedSeptember 30, |   |
|--------|----------------------------------|--------|--------------------------------|--------|

|   | (2008)(unaudited) |   | 2007(unaudited) |   | 2008(unaudited) |   | 2007(unaudited) |   | Period fromCommence-ment of DevelopmentStage (June 7,2004) to 9/30/08(unaudited) |
|--------|-------------------|--------|-----------------|--------|-----------------|--------|-----------------|--------|----------------------------------------------------------------------------------|

| Revenues | $--- |   | $--- |   | $--- |   | $--- |   | $--- |
|----------|------|--------|------|--------|------|--------|------|--------|------|

| Operating Costs and Expenses |   |   |   |   |   |   |   |   |   |
|------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Consulting | 82,985 |   | 80,000 |   | 871,000 |   | 454,700 |   | 7,580,913 |
|--------|------------|--------|--------|--------|--------|---------|--------|---------|--------|-----------|

|   | Legal and professional | 18,721 |   | 26,224 |   | 224,936 |   | 478,502 |   | 1,034,430 |
|--------|------------------------|--------|--------|--------|--------|---------|--------|---------|--------|-----------|

|   | Impairment charge | 193,720 |   | --- |   | 193,720 |   | --- |   | 333,540 |
|--------|-------------------|---------|--------|-----|--------|---------|--------|-----|--------|---------|

|   | General and administrative | 127,810 |   | 48,772 |   | 450,171 |   | 429,591 |   | 1,176,131 |
|--------|----------------------------|---------|--------|--------|--------|---------|--------|---------|--------|-----------|

|   | Total operating expenses | 423,236 |   | 154,996 |   | 1,739,827 |   | 1,362,793 |   | 10,125,014 |
|--------|--------------------------|---------|--------|---------|--------|-----------|--------|-----------|--------|------------|

| Other income (expense) |   |   |   |   |   |   |   |   |   |
|------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Interest expense | (6,150) |   | (13,918) |   | (19,777) |   | (23,721) |   | (53,049) |
|--------|------------------|---------|--------|----------|--------|----------|--------|----------|--------|----------|

|   | Interest income | 1,312 |   | 5,174 |   | 6,775 |   | 20,277 |   | 50,946 |
|--------|-----------------|-------|--------|-------|--------|-------|--------|--------|--------|--------|

|   | Rental income | 10,000 |   | --- |   | 30,000 |   | 13,125 |   | 56,250 |
|--------|---------------|--------|--------|-----|--------|--------|--------|--------|--------|--------|

|   | Equity loss in subsidiary | (145,446) |   | --- |   | (150,037) |   | --- |   | (150,037) |
|--------|---------------------------|-----------|--------|-----|--------|-----------|--------|-----|--------|-----------|

|   | Total other income (expense) | (140,284) |   | (8,744) |   | (133,039) |   | 9,681 |   | (95,890) |
|--------|------------------------------|-----------|--------|---------|--------|-----------|--------|-------|--------|----------|

| Net loss | $(563,520) |   | $(163,740) |   | $(1,872,866) |   | $(1,353,112) |   | $(10,220,904) |
|----------|------------|--------|------------|--------|--------------|--------|--------------|--------|---------------|

| Income (loss) per share | $(0.01) |   | $(0.00) |   | $(0.04) |   | $(0.04) |   |   |
|-------------------------|---------|--------|---------|--------|---------|--------|---------|--------|--------|

| Weighted average number of shares outstanding (basic and      diluted) | 51,693,619 |   | 50,822,548 |   | 51,327,269 |   | 36,858,961 |   |   |
|------------------------------------------------------------------------|------------|--------|------------|--------|------------|--------|------------|--------|--------|

| The accompanying notes are an integral part of these    statements. |
|---------------------------------------------------------------------|

|   | ALL FUELS & ENERGY COMPANY |   |
|--------|--------------------------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | CONDENSED CONSOLIDATED STATEMENTS OF CASH      FLOWS |   |
|--------|------------------------------------------------------|--------|

|   | For the Six Months Ended September 30,      2008 and 2007, and the Period from Commencement of Development Stage (June      7, 2004) to September 30, 2008 |   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   | Nine Months Ended September 30, |   |
|--------|---------------------------------|--------|

|   | (2008)(unaudited) |   | 2007(unaudited) |   | Period fromCommencement of DevelopmentStage (June 7,2004) to 9/30/08(unaudited) |
|--------|-------------------|--------|-----------------|--------|---------------------------------------------------------------------------------|

| CASH FLOWS FROM OPERATING ACTIVITIES |   |   |   |   |   |
|--------------------------------------|--------|--------|--------|--------|--------|

| Net loss | $(1,872,866) |   | $(1,353,112) |   | $(10,220,904) |
|----------|--------------|--------|--------------|--------|---------------|

|   | Adjustments to reconcile net loss to cash used foroperating activities: |   |   |   |   |   |
|--------|-------------------------------------------------------------------------|--------|--------|--------|--------|--------|

|   | Depreciation and amortization | 1,613 |   | 294 |   | 3,739 |
|--------|-------------------------------|-------|--------|-----|--------|-------|

|   | Equity loss in subsidiary | 150,037 |   | --- |   | 150,037 |
|--------|---------------------------|---------|--------|-----|--------|---------|

|   | Options issued for compensation | 276,408 |   | --- |   | 6,351,621 |
|--------|---------------------------------|---------|--------|-----|--------|-----------|

|   | Stock issued for services and compensation | 591,400 |   | 780,515 |   | 1,757,745 |
|--------|--------------------------------------------|---------|--------|---------|--------|-----------|

|   | Impairment charge | 193,720 |   | --- |   | 333,540 |
|--------|-------------------|---------|--------|-----|--------|---------|

|   | Decrease in deposits | --- |   | 10,000 |   | --- |
|--------|----------------------|-----|--------|--------|--------|-----|

|   | Decrease in accrued expenses | --- |   | (40,057) |   | --- |
|--------|------------------------------|-----|--------|----------|--------|-----|

|   | Increase (decrease) in prepaids | 20,988 |   | (115,061) |   | (119,469) |
|--------|---------------------------------|--------|--------|-----------|--------|-----------|

|   | Increase in unearned rental income | 10,000 |   | --- |   | 10,000 |
|--------|------------------------------------|--------|--------|-----|--------|--------|

|   | Increase in accounts payable | 97,068 |   | 32,174 |   | 123,429 |
|--------|------------------------------|--------|--------|--------|--------|---------|

| Net cash used for operating activities | (531,632) |   | (685,247) |   | (1,610,262) |
|----------------------------------------|-----------|--------|-----------|--------|-------------|

| CASH FLOWS FROM INVESTING ACTIVITIES |   |   |   |   |   |
|--------------------------------------|--------|--------|--------|--------|--------|

|   | Purchase of land | --- |   | (951,238) |   | (951,238) |
|--------|------------------|-----|--------|-----------|--------|-----------|

|   | Investment in AFSE Enzyme, LLC | (150,037) |   | (951,238) |   | (150,037) |
|--------|--------------------------------|-----------|--------|-----------|--------|-----------|

|   | Increase in accrued liabilities - related party | --- |   | --- |   | 40,056 |
|--------|-------------------------------------------------|-----|--------|-----|--------|--------|

|   | Collections from receivable - related party | --- |   | 22,500 |   | --- |
|--------|---------------------------------------------|-----|--------|--------|--------|-----|

|   | Purchase of office equipment | (636) |   | --- |   | (1,966) |
|--------|------------------------------|-------|--------|-----|--------|---------|

|   | Payments on construction-in-progress | (6,696) |   | (64,766) |   | (193,720) |
|--------|--------------------------------------|---------|--------|----------|--------|-----------|

| Net cash used in investing activities | (157,369) |   | (993,504) |   | (1,256,905) |
|---------------------------------------|-----------|--------|-----------|--------|-------------|

| The accompanying notes are an integral part of these    statements. |
|---------------------------------------------------------------------|

|   | Nine Months Ended September 30, |   |
|--------|---------------------------------|--------|

|   | (2008)(unaudited) |   | 2007(unaudited) |   | Period fromCommencement of DevelopmentStage (June 7,2004) to 9/30/08(unaudited) |
|--------|-------------------|--------|-----------------|--------|---------------------------------------------------------------------------------|

| CASH FLOWS FROM FINANCING ACTIVITIES |   |   |   |   |   |
|--------------------------------------|--------|--------|--------|--------|--------|

|   | Proceeds from sale of common stock for cash | 143,269 |   | 75,000 |   | 2,600,253 |
|--------|---------------------------------------------|---------|--------|--------|--------|-----------|

|   | Principal payments on related party advances | --- |   | --- |   | (3,988) |
|--------|----------------------------------------------|-----|--------|-----|--------|---------|

|   | Proceeds from long-term debt, net of deferred borrowingcosts | --- |   | 483,918 |   | 483,120 |
|--------|--------------------------------------------------------------|-----|--------|---------|--------|---------|

|   | Purchase of treasury stock | --- |   | (150,000) |   | (150,000) |
|--------|----------------------------|-----|--------|-----------|--------|-----------|

|   | Contributions from shareholders | --- |   | --- |   | 950 |
|--------|---------------------------------|-----|--------|-----|--------|-----|

| Net cash provided by financing activities | 143,269 |   | 408,918 |   | 2,930,335 |
|-------------------------------------------|---------|--------|---------|--------|-----------|

|   |
|--------|

| NET CHANGE IN CASH | (545,732) |   | (1,269,833) |   | 63,168 |
|--------------------|-----------|--------|-------------|--------|--------|

| Cash, beginning of period | 612,888 |   | 1,772,495 |   | 3,988 |
|---------------------------|---------|--------|-----------|--------|-------|

| Cash, end of period | $67,156 |   | $502,662 |   | $67,156 |
|---------------------|---------|--------|----------|--------|---------|

| The accompanying notes are an integral part of these    statements. |
|---------------------------------------------------------------------|

|   | ALL FUELS & ENERGY COMPANY |   |
|--------|--------------------------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | NOTES TO CONDENSED CONSOLIDATED FINANCIAL      STATEMENTS |   |
|--------|-----------------------------------------------------------|--------|

|   | September 30, 2008(unaudited) |   |
|--------|-------------------------------|--------|

|   |
|--------|

| Note 1. Summary of Significant AccountingPolicies |
|---------------------------------------------------|

| Basis of Presentation |
|-----------------------|

| The accompanying unaudited interim financial statements of ALL Fuels      & Energy Company (the “Company”) have been prepared by the Company in      accordance with accounting principles generally accepted in the United      States of America, pursuant to the Securities and Exchange Commission      rules and regulations. In management’s opinion all adjustments necessary      for a fair presentation of the results for interim periods have been      reflected in the interim financial statements. The results of operations      for any interim period are not necessarily indicative of the results for a      full year. All adjustments to the financial statements are of a normal      recurring nature. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Certain information and footnote disclosures normally included in      financial statements prepared in accordance with generally accepted      accounting principles have been condensed or omitted. Such disclosures are      those that would substantially duplicate information contained in the most      recent audited financial statements of the Company, such as significant      accounting policies and stock options. Management presumes that users of      the interim statements have read or have access to the audited financial      statements and notes thereto included in the Company’s annual report on      Form 10-KSB for the year ended December 31,2007. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 2. Management’s Plans forLiquidity |
|-----------------------------------------------|

| With the sale of the Company’s real estate asset, the Company will      possess a level of capital sufficient to sustain its current operations      for all of 2009. However, the Company will require substantial additional      capital to purchase one or more existing ethanol production facilities or      to pursue other business opportunities. The Company believes it will be      able to secure the financing, in the form of debt, equity or a combination      thereof, necessary to complete these opportunities. To this end, the      Company has retained Trinity Capital, Los Angeles, California, as its      investment banker. To date, the Company has not received a commitment for      an equity investment or a loan in anyamount. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| During the remainder of 2008 and first half of 2009, the Company      intends to commit small portions of its capital to each of its recently      announced enzyme and polymer pipe ventures. It is likely that the enzyme      venture will require approximately $1.5 million over the next 24 months to      complete the development of up to ten market-ready enzymes. See Note 6      below for additional information concerning the enzyme venture. It is      likely that the polymer pipe venture will require approximately $3 million      over the next 12 months to commence pipe manufacturing and sales      operations. See Note 7 below for additional information concerning the      polymer pipe business opportunity. The needed funding will be sought from      third parties. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 3. Prepaid Expenses |
|--------------------------|

| At September 30, 2008, the Company had prepaid expenses of $31,649,      of which $29,807 relates to expenses incurred in connection with its      efforts in acquiring certain ethanol-related businesses. In future      periods, prepaid expenses associated with successful acquisitions will be      capitalized, while those associated with unsuccessful acquisition efforts      will be expensed. The remaining $1,842 represents prepaid    insurance. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 4. Land, Equipment and Construction in  Progress |
|-------------------------------------------------------|

| At September 30, 2008, the Company owned 152.5 acres near Manchester,      Iowa, which has been carried at its cost of $951,238. The Company also has      acquired approximately $636 of office equipment. Through September 30,      2008, the Company had paid $193,720 in construction-related expenses      associated with the Company’s proposed ethanol production facility to be      constructed on the Manchester, Iowa, land. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Subsequent to September 30, 2008, the Company entered into an      agreement to sell the Manchester land. See Note 8 below for additional      information regarding the sale of the Manchester land. Due to the sale of      the Manchester land, all construction-in-progress capital items have been      expensed, an amount of approximately$194,000. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 5. Capital Stock |
|-----------------------|

| Stock for Services |
|--------------------|

| During the first nine months of 2008, the Company issued a total of      1,016,667 shares of common stock to third-party consultants for services,      resulting in $550,000 in non-cash compensation expense included in      professional and legal expenses and consulting fees in the accompanying      statements of operations. There are no performance commitments or      penalties for non-performance, therefore the Company recorded the expense      at the date of issuance. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| During the first nine months of 2008, the Company issued a total of      75,000 shares of common stock to three of its directors as bonuses. The      issuance of these shares resulted in $41,400 in consulting fees in the      accompanying statement of operations. There are no performance commitments      or penalties for non-performance, therefore the Company recorded the      expense at the date of issuance. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Stock Issued on Exercise of Options |
|-------------------------------------|

| During the first nine months of 2008, the Company issued a total of      405,000 shares of common stock on the exercise of options. These shares      were issued for a total of $143,269 incash. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Cancellation of Common Stock |
|------------------------------|

| In January 2008, a total of 1,238,100 shares of Company common stock      were cancelled, pursuant a settlementagreement. |
|---------------------------------------------------------------------------------------------------------------------------|

| Note 6. AFSE Enzyme, LLC |
|--------------------------|

| The Company has recorded its investment in AFSE Enzyme, LLC on the      equity method. Under this method, the Company records its initial      investment at its cost and increases the investment by any additional      funds invested. It then adjusts the amount of the investment by its share      of the investee’s earnings or losses. To date, the Company has invested      $150,037 in the venture. Subsequent to the end of the quarter, the Company      ended its involvement in AFSE Enzyme and will pursue the project without      using AFSE Enzyme. Due to there being significant uncertainty that the      Company will recover its investment, the Company has written off the      remaining investment in AFSE Enzyme at September 30,  2008. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| AFSE Enzyme, LLC is a Florida limited liability company 50% owned by      the Company. AFSE Enzyme was formed for the stated purpose of      participating in the development and subsequent commercialization of      certain enzyme-related technologies. AFSE Enzyme’s development activities      are to produce one or more “super” enzymes that would serve to produce      ethanol from cellulosic plant material. The Company believes such an      enzyme product would, in theory, reduce ethanol productions costs by up to      50% compared to traditional corn-based production. In addition, these      enzyme development activities are to produce one or more additive enzyme      products that would serve to enhance corn ethanol production by 5% to 10%.      It is likely that AFSE Enzyme will require approximately $1.5 million over      the next 24 months to complete the development of up to ten market-ready      enzymes. The needed funding will be sought from third  parties. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 7. Polymer Pipe Opportunity |
|----------------------------------|

| In September 2008, the Company entered into an ethanol alliance      agreement with a private Iowa company, whereby the parties intend to form      a series of entities for the purpose of engaging in numerous businesses      related to the ethanol industry. The Company and its business partner      intend to apply proprietary, patent-pending technologies to facilitate its      vision of constructing multi-purpose pipelines capable of transporting all      forms of alternative fuels, including ethanol. The technology embodied in      this alliance allows the pipeline to be kept “clean” and capable of moving      various fuel types: ethanol, biodiesel, liquid nitrogen, and other      industrial/agricultural liquids. It is expected that this first phase of      this project will require approximately $3 million over the next 12      months. The needed funding will be sought from third  parties. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 8. Subsequent Events |
|---------------------------|

| Sale of Land |
|--------------|

| In November 2008, the Company entered into an agreement to sell its      primary asset, an approximately 160-acre tract of land located in      Manchester, Iowa. The selling price of the Manchester property is      $988,400, of which $98,000 has been deposited in escrow. The sale of the      Manchester property is scheduled to close on December 2, 2008. Upon the      closing of the sale of the Manchester property, indebtedness associated      with the Manchester property of approximately $488,000 will be repaid and      a sales commission of approximately $30,000 will be paid. The balance of      the funds will be used by us in our business  operations. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Interim Loans |
|---------------|

| In November 2008, one of the Company’s directors loaned the Company      $20,000 for use as working capital. This loan is unsecured, bear interest      at the rate of 5% per annum and is evidenced by a promissory note. Also in      November 2008, the Company borrowed, on a short-term basis, $100,000 from      a commercial lender. This loan is being used for working capital. Upon the      sale of the Manchester property, both of these loans will be repaid in      full. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 2. Management’s Discussion and Analysis of Financial Condition      and Results of Operations. |
|-----------------------------------------------------------------------------------------------------------|

| General |
|---------|

| In January 2007, there occurred a change in control and in management      with respect to our company. Our new management determined that we would      seek to become a producer of ethanol. To that end, in April 2007, we      consummated a plan and agreement of reorganization with ALL Energy      Company, a development-stage ethanol company, whereby ALL Energy Company      became our wholly-owned subsidiary. At that time, our management and that      of ALL Energy Company was the same. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| References to “us”, “we” and “our” include our subsidiary, ALL Energy      Company, and its subsidiary, ALL Energy Manchester, LLC, and our      subsidiary, AFSE Enzyme, LLC, unless otherwise  indicated. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Certain statements contained herein are not based on historical facts      and are "forward-looking statements" within the meaning of Section 21A of      the Securities Exchange Act of 1934. Forward-looking statements which are      based on various assumptions (some of which are beyond the Company's      control), may be identified by reference to a future period or periods, or      by the use of forward-looking terminology, such as "may", "will",      "believe", "expect", "estimate", "anticipate", "continue" or similar terms      or variations on those terms, or the negative of these terms. Actual      results could differ materially from those set forth in forward-looking      statements, due to a variety of factors, including, but not limited to,      events that deprive us of the services of our president, Dean Sukowatey,      whether we are able to obtain adequate capital with which to construct      and/or purchase one or more ethanol production facilities and other      uncertainties, all of which are difficult to predict and many of which are      beyond our control. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| We do not undertake, and specifically disclaim any obligation, to      publicly release the result of any revisions which may be made to any      forward-looking statements to reflect the occurrence of anticipated or      unanticipated events or circumstances after the date of such      statements. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Recent Developments |
|---------------------|

| Changes in Our      Board of Directors. On October 7, 2008, a majority of our      shareholders acting by written consent in lieu of a meeting removed,      without cause, three of our then-directors from our board of directors.      After such removal action, two persons with extensive ethanol industry      experience, James R. Broghammer and Scott D. Zabler, were appointed to our      board of directors. Since this change in our board of directors, our      business strategies have been refocused and our business prospects have      improved significantly. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Sale of      Land. With the existing uncertainty surrounding the ethanol      industry, our new board of directors determined it to be in the best      interests of the our company and our shareholders that we abandon our plan      to build a 110 million gallon per year ethanol plant on the 160 acre tract      owned by us located in Manchester, Iowa. In keeping with this      determination, in November 2008, we entered into an agreement to sell the      Manchester property, our primary asset, it having been determined that our      company would be in a better position to take advantage of ethanol-related      business opportunities with a higher level of liquidity. The selling price      of the Manchester property is $988,400, with the sale scheduled to close      on December 2, 2008. Upon the closing of the sale, indebtedness associated      with the Manchester property of approximately $488,000 will be repaid and      a sales commission of approximately $30,000 will be paid. The balance of      the funds will be used by us in pursuit of existing business      opportunities. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Enzyme      Development. For most of 2008, we have been pursuing an agreement      with a leading research institution for the development and      commercialization of an ethanol “super” enzyme, producing cellulosic      ethanol with a theoretical savings of up to 50% reduction in ethanol      production costs. Ethanol produced by such a super enzyme would be      manufactured from sustainable non-food biomass and surplus waste products,      such as wood chips, household garbage and sugarcane waste, which are      abundantly available domestically and internationally. One of the key      benefits would be the elimination of the cost of the more traditional      component ethanol feed-stock, corn. There is no assurance that we will be      successful in developing and commercializing any enzyme  products. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| References to “us”, “we” and “our” include our subsidiary, ALL Energy      Company, and its subsidiary, ALL Energy Manchester, LLC, and our 50%-owned      subsidiary, AFSE Enzyme, LLC, unless otherwise  indicated. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Certain statements contained herein are not based on historical facts      and are "forward-looking statements" within the meaning of Section 21A of      the Securities Exchange Act of 1934. Forward-looking statements which are      based on various assumptions (some of which are beyond the Company's      control), may be identified by reference to a future period or periods, or      by the use of forward-looking terminology, such as "may", "will",      "believe", "expect", "estimate", "anticipate", "continue" or similar terms      or variations on those terms, or the negative of these terms. Actual      results could differ materially from those set forth in forward-looking      statements, due to a variety of factors, including, but not limited to,      events that deprive us of the services of our president, Dean Sukowatey,      whether we are able to obtain adequate capital with which to construct      and/or purchase one or more ethanol production facilities and other      uncertainties, all of which are difficult to predict and many of which are      beyond our control. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| We do not undertake, and specifically disclaim any obligation, to      publicly release the result of any revisions which may be made to any      forward-looking statements to reflect the occurrence of anticipated or      unanticipated events or circumstances after the date of such      statements. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Critical Accounting Policies |
|------------------------------|

| While we believe that the factors considered provide a meaningful      basis for the accounting policies applied in the preparation of the      condensed consolidated financial statements, we cannot guarantee that our      estimates and assumptions will be accurate. If such estimates and      assumptions prove to be inaccurate, we may be required to make adjustments      to these estimates in future periods. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Litigation and Tax      Assessments. Should we become involved in lawsuits, we intend to      assess the likelihood of any adverse judgments or outcomes of any of these      matters as well as the potential range of probable losses. A determination      of the amount of accrual required, if any, for these contingencies will be      made after careful analysis of each matter. The required accrual may      change from time to time, due to new developments in any matter or changes      in approach (such as a change in settlement strategy) in dealing with      these matters. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Additionally, in the future, we may become engaged in various tax      audits by federal and state governmental authorities incidental to our      business activities. We anticipate that we will record reserves for any      estimated probable losses for any suchproceeding. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Stock-Based      Compensation. We account for stock-based compensation based on the      provisions of Statement of Financial Accounting Standards No. 123. In      December 2004, the Financial Accounting Standards Board issued Statement      of Financial Accounting Standards No. 123 (Revised 2004), Share-Based      Payment, (FAS-123R). This statement replaces FAS-123, Accounting for      Stock-Based Compensation, supercedes APB Opinion No. 25, Accounting for      Stock Issued to Employees, and amends FAS-95, Statement of Cash Flows.      FAS-123R requires companies to apply a fair-value-based measurement method      in accounting for share-based payment transactions with employees and to      record compensation cost for all stock awards granted after the required      effective date and for awards modified, repurchased or cancelled after      that date. The scope of FAS-123R encompasses a wide range of share-based      compensation arrangements, including share options, restricted share      plans, performance-based awards, share appreciation rights and employee      share purchase plans. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| New Accounting      Pronouncements. In September 2006, the Financial Accounting      Standards Board (“FASB”) issued Statement of Financial Accounting      Standards (“SFAS”) No. 157, “Fair Value Measurements” (“SFAS 157”). SFAS      157 defines fair value, establishes a framework for measuring fair value      in accordance with generally accepted accounting principles, and expands      disclosures about fair value measurements. SFAS 157 is effective January      1, 2008. We do not believe this statement will adversely impact our      financial statements. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In February 2007, the FASB issued SFAS No. 159, The Fair Value Option      for Financial Assets and Financial Liabilities, which permits entities to      choose to measure many financial instruments and certain other items at      fair value. The objective is to improve financial reporting by providing      entities with the opportunity to mitigate volatility in reported earnings      caused by measuring related assets and liabilities differently without      having to apply complex hedge accounting provisions. SFAS No. 159 applies      to all entities and is effective for fiscal years beginning after November      15, 2007. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In December 2007, the FASB issued SFAS No. 141 (revised 2007),      “Business Combinations” (“SFAS No. 141R”), which establishes principles      and requirements for how the acquirer shall recognize and measure in its      financial statements the identifiable assets acquired, liabilities      assumed, any non-controlling interest in the acquiree and goodwill      acquired in a business combination. SFAS No. 141(R) is effective for      business combinations for which the acquisition date is on or after the      beginning of the first annual reporting period beginning on or after      December 15, 2008. The Company is currently assessing the potential impact      that the adoption of SFAS No. 141(R) will have on its financial position      and results of operations. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Results of Operations |
|-----------------------|

| For the first nine months of 2008, our monthly cash operating      expenses, which include salary, professional fees and costs associated      with the pursuit of business opportunities, averaged approximately      $70,000. Should we be successful in commencing other business      opportunities, our operating expenses will increase, although we are      unable to predict the amount of suchincrease. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Three Months Ended      September 30, 2008, vs. Three Months Ended September 30,    2007. |
|-------------------------------------------------------------------------------------------|

| Revenues. We did not generate any revenues during either the 2008 or      the 2007 three month period ended September 30. During each period, we      actively pursued numerous business opportunities, including the      acquisition of one or more existing ethanol production facilities. In      addition, during the 2008 period, we began to pursue the development of      our enzyme business, as well other business opportunities, including the      formation of a venture to exploit a polymer pipe technology. We cannot      predict whether we will be successful in theseefforts. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Expenses. Our operating expenses during the three months ended      September 30, 2008, were $423,236, up from $154,996 for the prior year’s      three month period. Our non-cash operating expenses, which include stock      issued for services and options issued for services, totalled $10,000 and      $-0-, for the three month periods,respectively. |
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| First Nine Months      2008 vs. First Nine Months 2007. |
|---------------------------------------------------------|

| Revenues. We did not generate any revenues during either the First      Nine Months 2008 or the First Nine Months 2007 and we cannot predict      whether we will generate revenues during the remainder of 2008 or the      first quarter of 2009. We continue to seek business opportunities and to      acquire one or more existing ethanol production facilities, although we      have not entered into any agreement relating thereto. We cannot predict      whether we will be successful in theseefforts. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Expenses. Our operating expenses during the First Nine Months 2008      were $1,739,827, down from $1,362,793 for the First Nine Months 2007. Our      non-cash operating expenses, which include stock issued for services and      options issued for services, totalled $867,808 for the First Nine Months      2008 compared to $780,515 for the First Nine Months  2007. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Financial Condition |
|---------------------|

| At September 30, 2008, we had $67,156 in cash and a working capital      deficit of $92,255. These positions are down from December 31, 2007,      levels, when we had $612,888 in cash and working capital of $581,533.      Subsequent to September 30, 2008, we entered into an agreement sell our      160 acres located in Manchester, Iowa, as a means of improving our      liquidity. Upon the closing of this sale in December 2008, after paying      costs associated with the sale and retiring the debt associated with the      Manchester property, including the repayment of a $20,000 advance from one      of our directors and a $100,000 working capital loan obtained in November      2008, we will have approximately $450,000 on hand. This amount of cash is      expected to be adequate to sustain our current level of operations for the      all of 2009. However, as discussed below, we will be required to obtain      additional capital to pursue current business opportunities and otherwise      to pursue our complete plan ofbusiness. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Management’s Plans Relating to FutureLiquidity |
|------------------------------------------------------|

| We currently possess approximately $50,000 in cash. However, upon the      closing of the sale of the Manchester land, we will, as described above,      possess approximately $450,000, a level of capital sufficient expected to      sustain our current operations for all of 2009. However, we will require      substantial additional capital to purchase one or more existing ethanol      production facilities. Our management believes it will be able to secure      the financing, in the form of debt, equity or a combination thereof,      necessary to complete these opportunities. To this end, we have retained      Trinity Capital, Los Angeles, California, as our investment banker. In      addition, we are seeking an investment partner for our enzyme venture. To      date, we have not received a commitment for an equity investment or a loan      in any amount. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Capital Expenditures |
|----------------------|

| During the First Nine Months 2008, our capital expenditures were      $7,332. During the First Nine Months 2007, we purchased approximately 160      acres of land located in Manchester, Iowa, for approximately $951,000 in      cash. This property has been sold, as described above. Should we obtain      the capital required to purchase one or more existing ethanol production      facilities, our capital expenditures will be significant. However, we      cannot predict the exact amount of these potential  expenditures. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 3. Quantitative and Qualitative Disclosures About Market      Risk. |
|--------------------------------------------------------------------------|

| Not applicable. |
|-----------------|

| Item 4T. Controls and Procedures. |
|-----------------------------------|

| During the first three months of 2008, our Chief Executive Officer      and Acting Chief Financial Officer reviewed and evaluated the      effectiveness of our disclosure controls and procedures (as defined in the      Securities Exchange Act of 1934 Rules 240.13a-14(c) and 15d-14(c)). Based      on his review and evaluation, our Chief Executive Officer and Acting Chief      Financial Officer determined that our disclosure controls and procedures      (as defined in the Securities Exchange Act of 1934 Rules 240.13a-14(c) and      15d-14(c)) were not, at that time, effective in timely alerting him and      other members of management to material information about our company      required to be disclosed by us in our periodic reports that we file or      submit under the Securities Exchange Act of 1934. To assure proper      financial controls and procedures in the future, we implemented certain      changes to our financial reporting procedures, including, a weekly review      by our management of all financial transactions and the general ledger      entries associated therewith. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Except as set forth in the foregoing paragraphs, there have not been      any significant changes in our internal controls over financial reporting      (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the      Securities Exchange Act of 1934) during the fiscal quarter to which this      report relates that have materially affected, or are reasonably likely to      materially affect, our internal control over financial  reporting. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| PART II - OTHER  INFORMATION |
|------------------------------|

| Item 1. Legal Proceedings. |
|----------------------------|

| We are not currently involved in any legal  proceedings. |
|----------------------------------------------------------|

| Item 2. Unregistered Sales of Equity Securities and Use of      Proceeds. |
|---------------------------------------------------------------------------|

| 1. | (a) | Securities Sold. In September 2008, 16,667 shares of common stock      were issued. |
|----|-----|-------------------------------------------------------------------------------------|

| (b) | Underwriter or Other Purchasers. Such shares of common stock were      issued to Brewer & Pritchard, P.C. |
|-----|---------------------------------------------------------------------------------------------------------------|

| (c) | Consideration. Such shares of common stock were issued in payment of      legal fees in the amount of $10,000. |
|-----|----------------------------------------------------------------------------------------------------------------|

| (d) | Exemption from Registration Claimed. These securities are exempt from      registration under the Securities Act of 1933, as amended, pursuant to the      provisions of Section 4(2) thereof and Rule 506 thereunder, as a      transaction not involving a public offering. This purchaser was a      sophisticated investor capable of evaluating an investment in our      company. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 3. Defaults upon SeniorSecurities. |
|-----------------------------------------|

| None. |
|-------|

| Item 4. Submission of Matters to a Vote of Security  Holders. |
|---------------------------------------------------------------|

| No matter was submitted to our shareholders, during the three months      ended September 30, 2008. |
|-----------------------------------------------------------------------------------------------------|

| Effective October 7, 2008, a majority of our shareholders acting by      written consent in lieu of a meeting removed, without cause, three of our      directors from our board of directors. The directors removed from our      board of directors were: Mark W. Leonard, Steven J. Leavitt and Brian K.      Gibson. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In April 2007, holders of approximately 60% of our common stock,      acting by written consent in lieu of a meeting, approved an amendment to      our amended and restated certificate of incorporation, whereby our      authorized capital shares would be increased to 700,000,000 shares of      common stock and 50,000,000 shares of preferred stock. This amendment to      our amended and restated certificate of incorporation will be effected in      the near future. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 5. Other Information. |
|----------------------------|

| None. |
|-------|

| Item 6. Exhibits. |
|-------------------|

|   | Exhibit No. |   | Description |
|--------|-------------|--------|-------------|

|   | 31.1 * |   | Certification of Chief Executive Officer required by Rule 13a-14(a)      or Rule 15d-14(b) |
|--------|--------|--------|--------------------------------------------------------------------------------------------|

|   | 31.2 * |   | Certification of Chief Accounting Officer required by Rule 13a-14(a)      or Rule 15d-14(b) |
|--------|--------|--------|---------------------------------------------------------------------------------------------|

|   | 32.1 * |   | Certification of Chief Executive Officer Pursuant to 18 U.S.C.      Section 1350 |
|--------|--------|--------|----------------------------------------------------------------------------------|

|   | 32.1 * |   | Certification of Chief Accounting Officer Pursuant to 18 U.S.C.      Section 1350 |
|--------|--------|--------|-----------------------------------------------------------------------------------|

|   | * filed herewith. |
|--------|-------------------|

| SIGNATURES |
|------------|

| In accordance with the requirements of the Securities Exchange Act of      1934, Registrant has duly caused this report to be signed on its behalf by      the undersigned, hereunto duly authorized. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |
|--------|

| Date: November 19, 2008. | ALL FUELS & ENERGY COMPANY |
|--------------------------|--------------------------------|

|   |
|--------|

|   | By: | /s/ DEAN E. SUKOWATEY |   |
|--------|-----|-----------------------|--------|

|   | Dean E. Sukowatey |   |
|--------|-------------------|--------|

|   | President and Acting Chief FinancialOfficer |
|--------|---------------------------------------------|