SECURITIES AND EXCHANGE COMMISSION
Washington D. C.  20549

Form 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934

For Quarter Ended September 30, 2001
Commission File No. 1-3871

CALIFORNIA-ENGELS MINING COMPANY
 (Exact name of registrant as specified in its charter)

State of California
 (State or other jurisdiction of incorporation or organization)

94-0357560 (I.R.S. Employer Identification Number)
Address: 117 Crescent Street, P. O. Box 778,
Greenville, California  95947-0778
 (Address of principal executive office) (Zip Code)

(530) 284-6191
 (Registrant'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

CLASS

Capital Stock, par value: $0.25 per share.

OUTSTANDING AT SEPTEMBER 30, 2001: 759,315.94 shares.

Filing Contains 13 pages.

<page><PAGE>CALIFORNIA-ENGELS MINING COMPANY
BALANCE SHEETS
(Unaudited)

PART I FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS
<table>
ASSETS
<caption>
                                   September 30,      December 31,
                                   2001               2000
                                   ---------          ---------
<S>                                <C>                <C>
CURRENT ASSETS
  Cash                             $  107,609         $   39,462
  Deeds of Trust - current
  portion                               2,909             11,842
  Deferred income taxes                     -                  -
  Reimbursements receivable                 -                  -
  Deposits                                  -                  -
  Prepaid income tax                        -              5,874
     Total Current Assets          $  110,518         $   57,178

PROPERTY AND EQUIPMENT, NET        $  357,166         $  397,995

OTHER ASSETS
  Investments available-for-sale   $   12,037         $   12,011
  Investments held-to-maturity          1,870              2,472
  Deeds of trust - net of current
  portion                             158,296            162,464
      Total Other Assets           $  172,203         $  176,947
      Total Assets                 $  639,887         $  632,120
</table>

<table>
LIABILITIES AND STOCKHOLDERS' EQUITY
<caption>
                                   September 30,      December 31,
                                   2001               2000
                                   ---------          --------
<S>                                <C>                <C>
CURRENT LIABILITIES
  Income taxes payable             $      442         $        -
  Deferred tax liabilities             19,843             19,843
  Accrued expenses                     33,630             40,976
  Notes payable, current portion        2,072              8,014

      Total Current Liabilities    $   55,987         $   68,833

LONG TERM LIABILITIES
  Notes payable, net of current
      portion                      $  106,549         $  106,549

      Total Liabilities            $  162,536         $  175,382
</table>

<page><PAGE>
CALIFORNIA-ENGELS MINING COMPANY
BALANCE SHEETS
(Unaudited)

<table>
STOCKHOLDER'S EQUITY
<caption>
                                   September 30,      December 31,
                                   2001               2000
                                   ---------          ---------
<S>                                <C>                <C>

STOCKHOLDERS' EQUITY
   Capital stock, par value $.25:
     4,000,000 shares authorized
     759,315.94 shares issued and
     outstanding in 2001 and
     760,815.94 in 2000            $  189,829         $  190,206
   Accumulated other comprehensive
    income (loss)                  $      308         $      308
   Reduction surplus               $2,800,108         $2,800,856
   Accumulated deficit             (2,512,894)        (2,534,632)

       Total Stockholders' Equity  $  477,351         $  456,738

       Total Liabilities and
       Stockholders' Equity        $  639,887         $  632,120
</table>

<page>
<PAGE>
CALIFORNIA-ENGELS MINING COMPANY
STATEMENTS OF ACCUMULATED DEFICIT AND ACUMULATED OTHER COMPREHENSIVE INCOME
(LOSS)
(Unaudited)
<table>
<caption>
                                   September 30,     December 31,
                                   2001               2000
                                   ------------       ------------
<S>                                <C>                <C>
Accumulated Deficit,
 Beginning of Year                 $ (2,534,632)      $ (2,613,532)

Net Income (Loss)                  $     21,738       $     78,900

Accumulated Deficit,
 End of Year                       $ (2,512,894)      $ (2,534,632)

Accumulated Other Comprehensive
 Income (Loss), Beginning
 of Year                           $        308       $        288

Other Comprehensive
 Income (Loss)                     $          -       $         20

Accumulated Other Comprehensive
 Income (Loss),
 End of Year                       $        308       $        308
</table>

<page><PAGE>
CALIFORNIA-ENGELS MINING COMPANY
STATEMENTS OF OPERATIONS
(Unaudited)
<table>
<caption>
                                   Three Months Ended September 30,
                                   2001               2000
                                   ----------         ----------
<S>                                <C>                <C>
REVENUE
  Timber and rock revenue          $   98,241         $      480
  Dividend income                         764                200
  Interest income                       4,068              2,717
    Total revenue                  $  103,073         $    3,397

OPERATING AND GENERAL EXPENSES
   Depreciation                    $      505                501
   Director fees                            -              2,000
   Insurance                                -                  -
   Miscellaneous                          387                268
   Office and storage rents             2,127              3,127
   Office expenses                        380                460
   Professional fees                      685                930
   Reclamation plan expense                 -             12,738
   Repairs and maintenance                226                  -
   Taxes and licenses                   8,965                222
   Travel and per diem                      -                230
   Vehicle expense                      1.904                249
   Wages and related taxes              2,437              3,334
     Total Operating and
     General Expenses              $   17,616         $   24,059

     Income (Loss) from
     Operations                    $   85,457         $  (20,662)

OTHER INCOME and (EXPENSE)
   Depletion                       $   (6,326)        $        -
   Gain on sale of land                     -            143,240
   Interest                            (3,210)            (4,752)
   Timber harvest expense             (77,982)            (4,600)
   Timber management expense                -              9,919
   Office and bookkeeping
    service                             4,425              5,790
     Total Other Income
     and (Expense)                 $  (83,093)        $  149,597

   Income (Loss) Before Taxes      $    2,364         $  128,935

Provision for income taxes         $   (6,316)        $  (29,824)

   Net Income (Loss)               $   (3,952)        $   99,111

Income (Loss) Per Share            $   (0.005)        $    0.130
</table>

<page><PAGE>
CALIFORNIA-ENGELS MINING COMPANY
STATEMENTS OF OPERATIONS
(Unaudited)
<table>
<caption>
                                   Nine Months Ended September 30,
                                   2001               2000
                                   ----------         ----------
<S>                                <C>                <C>
REVENUE
  Timber and rock revenue          $  591,798         $    1,525
  Dividend income                       2,140                967
  Interest income                      11,733              5,706
    Total revenue                  $  605,671         $    8,198

OPERATING AND GENERAL EXPENSES
   Depreciation                    $    1,514         $    1,503
   Director fees                            -              2,000
   Insurance                            1,860              1,900
   Miscellaneous                          557                631
   Office and storage rents             8,882              9,383
   Office expenses                      2,606              3,140
   Professional fees                    4,335              3,970
   Reclamation plan expense               240             12,738
   Repairs and maintenance              1,396              1,050
   Taxes and licenses                  13,617              3,111
   Travel and per diem                    405                714
   Vehicle expense                      2,883                945
   Wages and related taxes              8,359              9,511
     Total operating and
     general expenses              $   46,654         $   50,596

     Net income (loss) from
     operations                    $  559,017            (42,398)

OTHER INCOME and (EXPENSE)
   Depletion                       $  (39,315)        $        -
   Gain on sale of land                     -            143,240
   Interest                            (9,972)           (12,679)
   Timber harvest expense            (489,138)            (4,600)
   Timber management expense          (10,513)            (1,560)
   Office and bookkeeping
    service                            17,975             22,365
     Total other income
     and(expense)                  $ (530,963)        $  146,766

   Income (Loss) Before Taxes      $   28,054         $  104,368

Provision for income taxes         $   (6,316)        $  (29,824)

   Net Income (Loss)               $   21,738         $   74,544

Income (Loss) Per Share            $    0.029         $    0.098
</table>

<page><PAGE>
CALIFORNIA-ENGELS MINING COMPANY
STATEMENTS OF CASH FLOWS
(Unaudited)
<table>
<caption>
                                   Three Months Ended September 30,
                                   2001               2000
                                   ---------          ------------
CASH FLOWS FROM OPERATING
ACTIVITIES
<S>                                <C>                <C>
   Net Income (loss)               $  (3,952)          $    99,111
   Adjustments to reconcile
    net income (loss) to net
    cash provided (used) by
    operating activities:
     Depreciation and depletion        6,831                   501
     Amortization of GNMA discount         -                     -
     (Gain) loss on sale
      of securities                        -                     -
     (Gain) loss on sale of land           -              (143,228)

   (Increase) decrease in assets
      Prepaid expenses                 5,874                 4,360
      Deposits                             -                     -

    (Decrease) increase in liabilities
     Taxes payable                       442                23,284
     Accrued expenses                    (63)               (5,520)

        Net cash provided (used)
        by operating activities    $   9,132           $   (21,492)

<caption>
CASH FLOWS FROM INVESTING ACTIVITIES
<S>                                <C>                 <C>
  Payments received on
   notes receivable                $   5,390           $    2,096
  Notes issued                             -                  194
  Purchases of securities
   and investments                         -                    -
  Proceeds from sale
   of securities                           -                    -
  Proceeds from sale of land               -               98,248
  Return of principal GNMA               201                  304
  Capital expenditures                     -                    -
     Net cash Provided (Used) by
      investing activities         $   5,591           $  100,842
</table>

<page><PAGE>
CALIFORNIA-ENGELS MINING COMPANY
STATEMENTS OF CASH FLOWS
(Unaudited)
<table>
<caption>
                                   Three Months Ended September 30,
                                   2001               2000
                                   ---------          ----------
<S>                                <C>                <C>
CASH FLOWS FROM FINANCING ACTIVITIES
  Purchase and retirement
   of treasury shares              $     (75)         $        -
  Notes payable                            -             (17,000)
  Payments on notes payable           (2,026)            (11,703)

      Net cash provided (used) by
       financing activities        $  (2,101)         $  (28,703)

Net increase (decrease) in
 cash and cash equivalents         $  12,622          $   50,647

CASH AND CASH EQUIVALENTS,
Beginning of Period                $  94,987          $    3,820

CASH AND CASH EQUIVALENTS,
End of Period                      $ 107,609          $   54,467


SUPPLEMENTAL DISCLOSURE of
CASH FLOW INFORMATION
  Cash paid during the year:
    Income taxes                   $   5,874          $   25,464
    Interest                       $   3,210          $    4,752

SUPPLEMENTAL DISCLOSURE of
NONCASH INVESTING ACTIVITIES
  Unrealized holding gains
   (losses) arising during
   period                          $       -          $        -
 Issuance of notes receivable
  for sales of property            $       -          $   96,800
</table>

<page><PAGE>
CALIFORNIA-ENGELS MINING COMPANY
STATEMENTS OF CASH FLOWS
(Unaudited)
<table>
<caption>
                                   Nine Months Ended September 30,
                                   2001               2000
                                   --------           ---------
CASH FLOWS FROM OPERATING
ACTIVITIES
<S>                                <C>                <C>
   Net Income (Loss)               $ 21,738           $  74,544
   Adjustments to reconcile
    net income (loss) to net
    cash provided (used) by
    operating activities:
     Depreciation and depletion       40,829              1,503
     Amortization of GNMA discount         -                  -
     (Gain)loss on sale
     of securities                         -                  -
     (Gain) loss on sale of land           -            (143,228)

   (Increase) decrease in assets
      Prepaid expenses                 5,874                   -
      Deposits                             -                   -

    Increase (decrease) in liabilities
      Taxes payable                      442              18,587
     Accrued expenses                 (7,346)             (7,020)

        Net Cash Provided (Used)
        by Operating Activities     $ 61,537          $  (55,614)

<caption>
CASH FLOWS FROM INVESTING ACTIVITIES
<S>                                <C>                <C>
  Payments received on
   notes receivable                 $ 13,101           $    4,683
  Notes issued                             -              (49,117)
  Purchases of securities
   and investments                       (26)                 (26)
  Proceeds from sale
   of securities                           -                    -
  Proceeds from sale of land               -               98,248
  Return of principal GNMA               602                  613
  Capital expenditures                     -                 (762)
     Net cash Provided (Used) by
      Investing Activities          $ 13,677           $   53,639
</table>

<page><PAGE>
CALIFORNIA-ENGELS MINING COMPANY
STATEMENTS OF CASH FLOWS
(Unaudited)
<table>
<caption>
                                   Nine Months Ended September 30,
                                   2001               2000
                                   ---------          ----------
<S>                                <C>                <C>
CASH FLOWS FROM FINANCING ACTIVITIES
  Purchase and retirement of
   treasury shares                 $  (1,125)         $        -
  Notes payable                            -                   -
  Payments on notes payable           (5,942)            (14,853)

      Net Cash Provided (Used) by
       Financing Activities        $  (7,067)         $  (14,853)

Net Increase (Decrease) in
 Cash and Cash Equivalents         $  68,147          $  (16,828)

CASH AND CASH EQUIVALENTS,
Beginning of Period                $  39,462          $   71,295

CASH AND CASH EQUIVALENTS,
End of Period                      $ 107,609          $   54,467


SUPPLEMENTAL DISCLOSURE of
CASH FLOW INFORMATION
  Cash paid during the year:
    Income taxes                   $   5,874          $   29,824
    Interest                       $   9,972          $   12,679

SUPPLEMENTAL DISCLOSURE of
NONCASH INVESTING ACTIVITIES
  Unrealized holding gains
   (losses) arising during
   period                          $       -          $        -
 Issuance of notes receivable
  for sales of property            $       -          $   96,800
</table>

<page><PAGE>
CALIFORNIA-ENGELS MINING COMPANY
NOTES TO FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying financial statements are unaudited but, in the
opinion of the management, include all adjustments, consisting solely
of normal items, necessary for a fair presentation.  Interim results
are not necessarily indicative of results for a full year.

These financial statements should be read in conjunction with the
financial statements and notes which are included in the Company's
Annual Report on Form 10-K for the year ended December 31, 1999.  The
accounting policies set forth in those annual financial statements are
the same as the accounting policies utilized in the preparation of
these financial statements, except as modified for appropriate interim
financial statement presentation.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS
AND RESULTS OF OPERATIONS

Liquidity and Capital Resources

During the 30 years its mining properties were leased, the Company
endeavored to increase working capital, total assets and shareholder's
equity in the event that its lessee, Placer Dome U.S. Inc., terminated
its Mining Lease and Option to Purchase agreement and return the
mining properties to the Company.  This event occurred effective April
20, 1993.  Thus, funds were available to begin preparation of a Non-
Industrial Timber Management Plan which was approved by the California
Department of Forestry and became effective July 2, 1999.  The
objective of the Company is to earn income from the sale of its timber
so funds are available for the maintenance of its properties and the
implementation of its timber management plan.

The Company has completed the harvesting and hauling portion of its mechanical
thinning/biomass project pursuant to its Non-Industrial Timber Management Plan
on the Upper Engels portion of its Engels parcel.  During the first nine
months of the year the Company's thinning harvest produced 1,331,000 board
feet of small logs generating sufficient funds to pay for the project.  No
further mechanical thinning/harvesting is planned for this year.  However hand
thinning on steeper over-stocked areas pursuant to the California Forest
Improvement Program as well as hand thinning projects funded by the Company
are ongoing.


Results of Operations

The Company had net loss, for the three months ending September 30, of $3,952
in 2001, compared to net gain of $99,111 in the 2000 period.  The change in
net income for the third quarter of 2001 compared with the corresponding
period in 2000 was due to changes in amount of revenue from timber thinning
and harvest projects.

The Company's principal sources of income are office management and
bookkeeping fees, sale of timber, interest, dividends, capital gains
and sale of rock and sand.  There is no assurance that any of the
sources of income will continue at current rates into the
future.

<page><PAGE>
Cautionary Statement for Purposes of the "Safe Harbor" Provisions of
the Private Securities Litigation Reform Act of 1995

The matters discussed in this report on Form 10-Q, when not historical
matters, are forward-looking statements that involve a number of risks
and uncertainties that could cause actual results to differ materially
from projected results. Such factors include, among others, the
speculative nature of mineral exploration, commodity prices,
production and reserve estimates, environmental and government
regulations, availability of financing, force majeure events, and
other risk factors as described from time to time in the Company's
filings with the Securities and Exchange Commission. Many of these
factors are beyond the Company's ability to control or predict. The
Company disclaims any intent or obligation to update its forward-looking
statements, whether as a result of receiving new information,
the occurrence of future events, or otherwise.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Commodity Prices

The Company's earnings and cash flow may be significantly impacted by
changes in the market price of timber.  Timber prices fluctuate and
may be affected by numerous factors, such as seasonal demand,
production levels, economic policies of central banks, interest rates
and producer hedging.


PART II - OTHER INFORMATION

Item 1.  Legal Proceedings.

          None

Item 2.  Changes in Securities.

          None

Item 3.  Defaults upon Senior Securities.

          None

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

          None

Item 5.  Other Information.

          None

Item 6.  Exhibits and Reports on Form 8-K.

          None


<page><PAGE>
SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.


CALIFORNIA-ENGELS MINING COMPANY
Registrant



October 14, 2001                     By: /s/ Norman A. Lamb
                                     Norman A. Lamb, President
                                     and Chief Executive Officer


October 14, 2001                     By: /s/ James E. Brousseau
                                     James E. Brousseau, Secretary-
                                     Treasurer and Chief
                                     Financial Officer