----

----

| [X] | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|-----|---------------------------------------------------------------------------------------------------|

| [  ] | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|----------------|----------------------------------------------------------------------------------------------------|

----

----

----

----

| OP-TECH      ENVIRONMENTAL SERVICES, INC. AND WHOLLY-OWNED      SUBSIDIARIES                                      |   |
|-------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED      BALANCE SHEETS                                                                                  |   |
|                                                                                                              |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |
|                                                                                                              |   | (UNAUDITED) |   |   |   |   |
|                                                                                                              |   | March      31, |   |   | December      31, |   |
|                                                                                                              |   | 2007 |   |   | 2006 |   |
|                                                                                                              |   |   |   |   |   |   |
| ASSETS                                                                                                            |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |
| Current      Assets:                                                                                              |   |   |   |   |   |   |
|    Cash                                                                                            |   | $ | 245,321 |   |   | $ | 30,981 |   |
|    Accounts      receivable (net of allowance for doubtful accounts    of                          |   |   |   |   |   |   |   |   |
|       approximately      $126,000 and $114,000, respectively)                       |   |   | 8,718,255 |   |   |   | 10,008,186 |   |
|    Costs      on uncompleted projects applicable to future    billings                             |   |   | 1,394,865 |   |   |   | 2,984,323 |   |
|    Inventory                                                                                       |   |   | 415,769 |   |   |   | 378,439 |   |
|    Current      portion of deferred tax asset                                                      |   |   | 354,000 |   |   |   | 354,000 |   |
|    Prepaid      expenses and other current assets, net                                             |   |   | 386,549 |   |   |   | 447,759 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
|            Total      Current Assets                       |   |   | 11,514,759 |   |   |   | 14,203,688 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
| Property      and equipment, net                                                                                  |   |   | 3,506,348 |   |   |   | 3,216,781 |   |
| Deferred      tax asset                                                                                           |   |   | 1,129,756 |   |   |   | 1,004,800 |   |
| Other      assets                                                                                                 |   |   | 39,898 |   |   |   | 44,898 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
|            Total      Assets                               |   | $ | 16,190,761 |   |   | $ | 18,470,167 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
| LIABILITIES      AND SHAREHOLDERS' EQUITY                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
| Current      Liabilities:                                                                                         |   |   |   |   |   |   |   |   |
|    Accounts      payable                                                                           |   | $ | 2,360,294 |   |   | $ | 4,180,070 |   |
|    Outstanding      checks in excess of bank balance                                               |   |   | 272,810 |   |   |   | 149,741 |   |
|    Billings      in excess of costs and estimated profit                                           |   |   |   |   |   |   |   |   |
|       on      uncompleted projects                                                  |   |   | 568,847 |   |   |   | 796,438 |   |
|    Accrued      expenses and other current liabilities                                             |   |   | 750,286 |   |   |   | 1,148,549 |   |
|    Accrued      litigation defense reserve                                                         |   |   | 392,770 |   |   |   | 400,000 |   |
|    Current      portion of long-term debt                                                          |   |   | 676,728 |   |   |   | 771,345 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
|            Total      Current Liabilities                  |   |   | 5,021,735 |   |   |   | 7,446,143 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
| Long-term      debt, net of current portion                                                                       |   |   | 2,310,435 |   |   |   | 2,128,193 |   |
| Note      payable to bank under line of credit                                                                    |   |   | 5,859,627 |   |   |   | 5,731,548 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
|            Total      Liabilities                          |   |   | 13,191,797 |   |   |   | 15,305,884 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
| Shareholders'      Equity:                                                                                        |   |   |   |   |   |   |   |   |
|    Common      stock, par value $.01 per share; authorized    20,000,000                           |   |   |   |   |   |   |   |   |
|       shares;      11,748,704 shares issued and outstanding                         |   |   |   |   |   |   |   |   |
|       as      of March 31, 2007 and December 31, 2006,    respectively              |   |   | 117,487 |   |   |   | 117,487 |   |
|    Additional      paid-in capital                                                                 |   |   | 6,939,888 |   |   |   | 6,925,581 |   |
|    Accumulated      deficit                                                                        |   |   | (4,074,111 | ) |   |   | (3,898,485 | ) |
|    Accumulated      other comprehensive income                                                     |   |   | 15,700 |   |   |   | 19,700 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
|            Total      Shareholders' Equity                 |   |   | 2,998,964 |   |   |   | 3,164,283 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
|            Total      Liabilities and Shareholders' Equity |   | $ | 16,190,761 |   |   | $ | 18,470,167 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of the consolidated financial      statements.                   |   |

----

| OP-TECH ENVIRONMENTAL SERVICES,      INC. AND WHOLLY-OWNED SUBSIDIARIES                       |   |
|-----------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF      OPERATIONS                                                    |   |
| (UNAUDITED)                                                                                   |   |
|                                                                                          |   |   |   |   |   |   |
|                                                                                          |   | THREE MONTHS      ENDED |   |
|                                                                                          |   | March 31, |   |   | March 31, |   |
|                                                                                          |   | 2007 |   |   | 2006 |   |
|                                                                                          |   |   |   |   |   |   |
| Project    revenue                                                                            |   | $ | 7,455,990 |   |   | $ | 7,851,240 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| Project    costs                                                                              |   |   | 5,847,230 |   |   |   | 6,329,477 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| Grossmargin                                                                                   |   |   | 1,608,760 |   |   |   | 1,521,763 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| Operating      expenses:                                                                      |   |   |   |   |   |   |   |   |
|     Payroll      expense and related payroll taxes and benefits           |   |   | 799,932 |   |   |   | 601,850 |   |
|     Office      Expense                                                   |   |   | 143,587 |   |   |   | 135,589 |   |
|     Occupancy                                                             |   |   | 186,690 |   |   |   | 149,367 |   |
|     Business      Insurance                                               |   |   | 139,461 |   |   |   | 106,359 |   |
|     Professional      Services                                            |   |   | 130,192 |   |   |   | 92,917 |   |
|     Equipment      Expenses, net of usage credit                          |   |   | 256,348 |   |   |   | 174,860 |   |
|     Other      expenses                                                   |   |   | 67,187 |   |   |   | 77,231 |   |
|                                                                                          |   |   | 1,723,397 |   |   |   | 1,338,173 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| Operating income      (loss)                                                                  |   |   | (114,637 | ) |   |   | 183,590 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| Other income and      (expense):                                                              |   |   |   |   |   |   |   |   |
|    Interest      expense                                                       |   |   | (179,844 | ) |   |   | (122,128 | ) |
|    Other,      net                                                             |   |   | 855 |   |   |   | 105 |   |
|                                                                                          |   |   | (178,989 | ) |   |   | (122,023 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |
| Net income (loss) before income      taxes                                                    |   |   | (293,626 | ) |   |   | 61,567 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| Income tax benefit      (expense)                                                             |   |   | 118,000 |   |   |   | (25,000 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |
| Net income      (loss)                                                                        |   | $ | (175,626 | ) |   | $ | 36,567 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| Earnings per common      share:                                                               |   |   |   |   |   |   |   |   |
|     Basic                                                                 |   | $ | (0.015 | ) |   | $ | 0.003 |   |
|     Diluted                                                               |   | $ | (0.014 | ) |   | $ | 0.003 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| Weighted average shares      outstanding:                                                     |   |   |   |   |   |   |   |   |
|     Basic                                                                 |   |   | 11,748,704 |   |   |   | 11,745,371 |   |
|     Diluted                                                               |   |   | 12,398,031 |   |   |   | 12,302,695 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| The accompanying notes are an      integral part of the consolidated financial    statements. |   |

----

| OP-TECH ENVIRONMENTAL SERVICES,      INC. AND WHOLLY-OWNED SUBSIDIARIES                                                                                                                            |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH      FLOWS                                                                                                                                                         |   |
| (UNAUDITED)                                                                                                                                                                                        |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |
|                                                                                                                                                                                               |   | THREE MONTHS      ENDED |   |
|                                                                                                                                                                                               |   | March 31, |   |   | March 31, |   |
|                                                                                                                                                                                               |   | 2007 |   |   | 2006 |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |
| Operating      activities:                                                                                                                                                                         |   |   |   |   |   |   |
|    Net income      (loss)                                                                                                                                                           |   | $ | (175,626 | ) |   | $ | 36,567 |   |
|    Adjustments to      reconcile net loss to net cash                                                                                                                               |   |   |   |   |   |   |   |   |
|       provided      by operating activities:                                                                                                                         |   |   |   |   |   |   |   |   |
|          Bad      debt expense                                                                                                                        |   |   | 21,958 |   |   |   | 32,954 |   |
|          Depreciation      and amortization                                                                                                           |   |   | 167,474 |   |   |   | 143,608 |   |
|          Stock      Compensation                                                                                                                      |   |   | - |   |   |   | 17,763 |   |
|          Provision      for deferred income taxes                                                                                                     |   |   | (107,949 | ) |   |   | 31,754 |   |
|          (Increase)      decrease in operating assets and                                                                                             |   |   |   |   |   |   |   |   |
|             increase      (decrease) in operating liabilities:                                                                         |   |   |   |   |   |   |   |   |
|                Accounts      receivable                                                                                 |   |   | 1,267,973 |   |   |   | (2,842,293 | ) |
|                Costs      on uncompleted projects applicable to                                                         |   |   |   |   |   |   |   |   |
|                    future      billings                                                             |   |   | 1,589,458 |   |   |   | 284,547 |   |
|                Billings      and estimated profit in excess of costs                                                    |   |   |   |   |   |   |   |   |
|                   on      uncompleted contracts                                                          |   |   | (227,591 | ) |   |   | 543,643 |   |
|                Prepaid      expenses, inventory and other assets                                                        |   |   | 28,880 |   |   |   | 120,748 |   |
|                Accounts      payable and accrued expenses                                                               |   |   | (2,225,269 | ) |   |   | 1,414,353 |   |
|                        Net      cash provided by (used in) operating activities |   |   | 339,308 |   |   |   | (216,356 | ) |
|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Investing      activities:                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|    Purchase of      property and equipment                                                                                                                                          |   |   | (457,041 | ) |   |   | (166,910 | ) |
|                       Net      cash used in investing activities                     |   |   | (457,041 | ) |   |   | (166,910 | ) |
|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Financing      activities:                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|    Outstanding checks in excess of      bank balance                                                                                                                                |   |   | 123,069 |   |   |   | (22,004 | ) |
|    Proceeds from      note payable to bank and current                                                                                                                              |   |   |   |   |   |   |   |   |
|       and      long-term borrowings, net of financing costs                                                                                                          |   |   | 4,422,677 |   |   |   | 2,469,529 |   |
|    Principal      payments on current and long-term borrowings                                                                                                                      |   |   | (4,213,673 | ) |   |   | (2,143,067 | ) |
|                      Net      cash provided by financing activities                       |   |   | 332,073 |   |   |   | 304,458 |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Increase (decrease) in      cash                                                                                                                                                                   |   |   | 214,340 |   |   |   | (78,808 | ) |
|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Cash at beginning of      period                                                                                                                                                                   |   |   | 30,981 |   |   |   | 90,928 |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Cash at end of      period                                                                                                                                                                         |   | $ | 245,321 |   |   | $ | 12,120 |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| The accompanying notes are an      integral part of the consolidated financial    statements.                                                                                                      |   |   |   |   |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                 |   | March 31, 2007 |     |   | March 31, 2006 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|----------|--------|----------------|--------|
|                                                                                                                                                 |   |           |     |   |           |   |
| Net      income (loss)                                                                                                                               |   | $              | (175,626 | )      |           | $      | 36,567 |   |
|                                                                                                                                                 |   |           |     |   |           |   |   |   |
| Other      comprehensive income (loss):Change      in fair value of cash flow hedgeNet      of income tax of $(2,700) in 2007and      $7,200 in 2006 |   |           | (4,000   | )      |           |   | 10,700 |   |
|                                                                                                                                                 |   |           |     |   |           |   |   |   |
| Comprehensive      income (loss)                                                                                                                     |   | $              | (179,626 | )      |           | $      | 47,267 |   |

|                           |   | As      Reported |       |   | As      Restated |   |
|--------------------------------|--------|------------------|------------|--------|------------------|--------|
| Current      assets            |   | $                | 11,420,859 |   |             | $      | 11,514,759 |   |
| Total      assets              |   | $                | 16,110,561 |   |             | $      | 16,190,761 |   |
| Current      liabilities       |   | $                | 4,817,019  |   |             | $      | 5,021,735 |   |
| Total      liabilities         |   | $                | 12,987,081 |   |             | $      | 13,191,797 |   |
| Accumulated      deficit       |   | $                | (3,949,595 | )      |             | $      | (4,074,111 | ) |
| Net      loss                  |   | $                | (197,806   | )      |             | $      | (175,626 | ) |
| Basic      earning per share   |   | $                | (0.02      | )      |             | $      | (0.01 | ) |
| Diluted      earning per share |   | $                | (0.02      | )      |             | $      | (0.01 | ) |

----

----

| ·   | Payroll      expense and related payroll taxes and benefits increased 33% to $799,932      from $601,850 in 2006.  The Company has hired several new      project managers since the first quarter of 2006, and has experienced an      increase in workers compensation ratespaid. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Occupancy      Expense increased 25% to $186,690 from $149,367 in 2006.  This      increase is primarily due to the new lease agreement entered into in the      fourth quarter of 2006 in Massena,NY. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Business      Insurance increased 31% to $139,461 from $106,359 in 2006.  This      increase in insurance expense is due to the increased size of the Company      as well as additional coveragepurchased. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Professional      Services increased 40% to $130,192 from $92,917 in 2006.  This      increase in professional service expense is primarily due to an increase      in Board of Director fees due to an increase in the meeting attendance      fee, and an increase in Legal fees due to a variety of legal services      performed. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Equipment      Expenses net of usage credit increased 47% to $256,348 from $174,860 in      2006.  Of this $81,488 increase, $52,287 related to higher fuel      expense due primarily to higher fuel prices, and $25,952 related to higher      depreciation expense due to equipment purchases made since the first      quarter of 2006. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | CRITICAL ACCOUNTING      POLICIES AND ESTIMATES |
|--------|-------------------------------------------------|

| (a)   | Disclosure      Controls and Procedures. |
|-----------------|------------------------------------------|

----

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

|   | None |
|--------|------|

|   | Item      1A. Risk Factors. |
|--------|-----------------------------|

|   | 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. |
|--------|---------------------------------|

|   | Item      6. Exhibits and Reports on Form8-K. |
|--------|-----------------------------------------------|

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----

----