SECURITIES AND EXCHANGE COMMISSION
                      Washington, DC 20549

                            FORM 10-Q


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

For the quarterly period ending     September 30, 1998

                               OR

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

For the transition period from             to

Commission file No.  0-19761

              OP-TECH Environmental Services, Inc.
     (Exact name of registrant as specified in its charter)

 
          Delaware                     91-1528142
(State or other jurisdiction of      (I.R.S. Employee  
incorporation or organization)      Identification No.)

               6392 Deere Road, Syracuse, NY 13206
      (Address of principal executive office)  (Zip Code)

                           (315) 463-1643
      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   or No

             APPLICABLE ONLY TO CORPORATE ISSUERS:
      Indicate  the number of shares outstanding of each  of  the
issuer's  classes  of common stock, as of the latest  practicable
date.   11,601,023

                                 INDEX


OP-TECH Environmental Services, Inc. and Subsidiaries


Part I.        FINANCIAL INFORMATION                 Page No.


Item 1.        Financial Statements (Unaudited)
               Condensed Consolidated Balance Sheets
               September   30,   1998   and  
               December   31,   1997 (Audited)..............3

               Condensed Consolidated Statements of Operation
               Three months ended September 30, 1998 
               and September 30, 1997               
               Nine months ended September 30, 1998 
               and September 30, 1997.......................4
               
               Condensed Consolidated Statements of Cash Flows
               Nine months ended September 30, 1998 
               and September 30,1997........................5

               Notes to Condensed Consolidated Financial 
               Statements (Unaudited).......................6


     Item 2.  Management's Discussion and Analysis of Financial
              Condition and Results of Operations...........8



Part II.
              OTHER INFORMATION ...........................13


              SIGNATURES...................................14


PART I - FINANCIAL INFORMATION

Item No. 1 Financial Statements

OP-TECH ENVIRONMENTAL SERVICES INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

                                             September 30      December 31,
ASSETS                                          1998               1997 
Current Assets

Cash & Cash Equivalents                      $ 18,338           $ 81,517 

Accounts receivable
(net of allowance for
doubtful accounts)
  Unaffiliated parties                      2,463,776          1,948,102 
  Affiliated parties                           21,693            126,247
                                            2,485,469          2,074,349      
                                            
Costs on uncompleted projects applicable
to future billings                            189,085            132,590
Prepaid expenses & other assets               304,302            184,445

Total Current Assets                        2,997,194          2,472,901

Property and equipment, net                 1,062,571            622,979 
Assets held for sale                        1,605,427          1,675,000
Other Assets                                   23,494              5,591

Total Assets                                5,688,686          4,776,471

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:
Bank Overdraft                                51,348             224,458     
Notes payable to bank                        757,171             500,000
                                             808,519             724,458

Accounts payable:
Unaffiliated parties                         807,359           1,008,236
Affiliated parties                            40,655             118,159
                                             848,014           1,126,395

Billings in excess of costs and estimated
profit on uncompleted projects               533,613             309,927
Accrued expenses and other liabilities       475,995             421,366
Current portion of long-term debt
and obligations under capital leases         204,641             107,911

Total Current Liabilities                  2,870,782           2,690,057 

Long-term debt                               259,757             120,944

Stockholders' Equity:
Common stock, par value $.01 per share
authorized 20,000,000 shares;
11,601,023 and 11,555,123 shares
outstanding as of September 30, 1998
and Decemver 31, 1997 respectively           116,010             115,551
Additional paid-in-capital                 7,801,747           7,773,555
Accumulated deficit                       (5,359,610)         (5,923,636)

Total Shareholders' Equity                 2,558,147           1,965,470
Total Liabilities and 
Shareholders' Equity                       5,688,686           4,776,471
     
The accompanying notes are an integral part of the financial statements.
        

OP-TECH ENVIRONMENTAL SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

                       THREE MONTHS ENDED             NINE MONTHS ENDED    
                   September 30,  September 30,  September 30,  September 30, 
                       1998           1997           1998           1997
Revenues:
Project billings 
 and services       $ 3,025,542    $ 1,518,997    $ 7,531,604    $ 5,216,166 
Project costs         2,181,844      1,101,314      5,302,814      3,712,242
Gross Margin            843,698        417,683      2,228,790      1,503,924    

Selling, general 
 and administrative 
 expenses               571,995        605,144      1,594,016      1,811,636 
Provision for 
impairment of long-
 lived assets              -           539,441          -            539,441
Operating income (loss) 271,703       (726,902)       634,774       (847,153) 

Other income and
 expense:
Interest expense         31,930         76,911         83,977        264,484
Other (income) 
 expense, net              (175)         3,706        (13,229)         3,807
                         31,755         80,617         70,748        268,291 

NET INCOME (LOSS)    $  239,948     $ (807,519)    $  564,026    $(1,115,444)

Earnings per common
 share -
 basic and dilutive  $     0.02     $    (0.17)    $     0.05    $     (0.23)   

Weighted average
 shares outstanding  11,565,379      4,853,482     11,565,379      4,853,482


The accompanying notes are an integral part of the financial statements.


OP-TECH ENVIRONMENTAL SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)


Operating activities:
Net income (loss)                   $  564,026         $(1,115,444)
Adjustments to reconcile net income
 (loss) to net cash provided by
 (used in) operating activities:
Depreciation and amortization          121,032             261,291
Gain (loss) on sale of equipment             0                (870)
Provision for impairment of 
 long-lived assets                           0             539,441
(Increase) decrease in operating
 assets and increase (decrease)
 in operating liabilities:
Accounts receivable                   (411,120)             (1,370)
Costs on uncompleted projects
 applicable to future billings         (56,495)            (80,963)
Billings and estimated profit in
 excess of costs on uncompleted
 contracts                             223,686             156,007
Prepaid expenses and other assets     (139,857)            (88,854) 
Accounts payable and accrued expenses (195,101)            167,589
Net cash provided by (used in)
 operating activities                  106,171            (163,173)

Investing activities:
Proceeds from sale of equipment              0             115,500
Purchase of property and 
 equipment                            (178,965)           (154,495)
Net cash used in 
 investing activities                 (178,965)            (38,995)

Financing Activities:
Cash overdraft                        (173,110)                  0
Net proceeds from current and
 long-term borrowings                  182,725             230,855
Net cash provided by
 financing activities                    9,615             230,855

(Decrease) increase in cash
 and cash equivalents                  (63,179)             28,687

Cash and cash equivalents
 at beginning of period                 81,517              19,077

CASH AND CASH EQUIVALENTS AT
 END OF PERIOD                      $   18,338          $   47,764

Non-cash items:
Financed equipment                  $  309,989                  
Issuance of common stock                28,651        


The accompanying notes are an integral part of the financial statements.



                 OP-TECH ENVIRONMENTAL SERVICES, INC.
   NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

1.    The  accompanying  unaudited condensed consolidated  financial
statements have been prepared in accordance with generally  accepted
accounting principals for interim financial information and with the
instructions  to  Form  10-Q  and Rule  10-01  of  Regulation   S-X.
Accordingly,  they  do  not  include  all  of  the  information  and
footnotes  required by generally accepted accounting principles  for
complete  financial  statements.   In  the  opinion  of  management,
quarterly results include all adjustments (consisting of only normal
recurring  adjustments) that the Company considers necessary  for  a
fair presentation of such information for interim periods.

      The  unaudited  consolidated  condensed  financial  statements
include  the  accounts  of the Company and  its  subsidiaries.   All
material intercompany transactions and balances have been eliminated
in consolidation.

2.    The  timing of revenues is dependent on the Company's backlog,
contract  awards, and the performance requirements of each contract.
The  Company's  revenues are also affected  by  the  timing  of  its
clients  planned remediation work as well as the timing of unplanned
emergency  spills.  Historically, planned remediation work generally
increases  during  the  third  and fourth  quarters.   Although  the
Company believes that the historical trend in quarterly revenues for
the third and fourth quarters of each year are generally higher than
the  first and second quarters, there can be no assurance that  this
will  occur  in  future periods.  Accordingly,  quarterly  or  other
interim results should not be considered indicative of results to be
expected for any quarter or for the full year.

3.    The  Company  entered  into letter  agreements  with  its  two
largest creditors, OnBank & Trust Co. ("OnBank") and O'Brien &  Gere
Limited  ("OBG Limited"), a shareholder, on October 14, 1997,  which
were  executed  as  of  December 31, 1997, whereas  OnBank  and  OBG
Limited  agreed  to  convert  all or  part  of  their  indebtedness,
including accrued interest, into Common Stock of the Company, and to
forgive  the  remaining balance.  OBG Limited, to which the  Company
was indebted for $1,540,000, including accrued interest of $140,000,
forgave  $1,000,000  of  the  debt and converted  the  balance  into
1,080,000  shares of the Company's Common Stock.  OnBank,  to  which
the  Company was indebted for $2,811,070, including accrued interest
of  $75,332, converted their debt and accrued interest for 5,622,000
shares of the Company's Common Stock. The price per share, of  $.50,
was  negotiated with the two creditors and the Company based on  the
price of recent sales and their estimates of future risk.

      As  a  result  of these transactions the Company has  positive
shareholders'  equity, and has obtained a revolving  loan  agreement
that provides for borrowings up to $1,000,000 from another financial
institution.

      The  revolving loan is subject to renewal at the bank's option
and  is  payable  on  demand, or if no demand is  made,  outstanding
advances  are  due  on  February 16, 1999 and are  guaranteed  by  a
shareholder for an amount not to exceed $500,000.

4.    The  Company  purchased technical, accounting  and  consulting
services and rented certain office space from a shareholder and  its
affiliates.   The costs for these services amounted to $253,619  and
$276,336  for  the  nine months ended September 30,  1998  and  1997
respectively.

      Additionally, the Company provided $208,546 and $1,206,289  of
remediation,  sub-contract  support  and  project  services   to   a
shareholder  and its affiliates for the nine months ended  September
30, 1998 and 1997 respectively.

                   PART I - FINANCIAL INFORMATION

Item No. 2  Management's Discussion and Analysis of
            Financial Condition and Results of Operations.



                   LIQUIDITY AND CAPITAL RESOURCES

       At  September  30,  1998,  the  Company  had  cash  and  cash
equivalents of $18,338 as compared to $81,517 at December 31, 1997.

      At  September  30,  1998, the Company had  a  working  capital
surplus  of  $126,412 compared to a deficit of $217,156 at  December
31,  1997,  with  a  current ratio of 1.04 to 1 September  30,  1998
compared to .92 to 1 at December 31, 1997.

     For the nine months ended September 30, 1998, the Company's net
cash  provided by operations was $106,171 compared to cash  used  in
operations  of  $163,173 during the nine months ended September  30,
1997.

      The  Company's cash used in investing activities  of  $178,965
during  the  first nine months of the year was attributable  to  the
purchase  of  several utility vehicles, a trailer, a  high  pressure
water   truck,  computer  equipment,  and  the  purchase   of   tank
installation equipment valued at $80,000.

      The  Company financed approximately $310,000 of new  equipment
during the nine months ended September 31, 1998, consisting of a new
vacuum  truck,  several  utility  vehicle  vehicles  and  excavation
equipment.

      The  Company has a loan agreement that provides for borrowings
up  to  $1,000,000  on  a  revolving basis,  collateralized  by  all
accounts  receivable, inventory and equipment now owned or  acquired
later.   As  of  September  30, 1998, the Company  had  $191,481  of
available borrowings on the loan.  The revolving loan is subject  to
renewal  at  the bank's option and is payable on demand,  or  if  no
demand  is  made outstanding advances are due on February 16,  1999,
and  are  guaranteed  by a shareholder for an  amount  not-to-exceed
$500,000.

     During the first nine months of 1998, all principal payments on
the Company's debt were made timely.

      Management  believes that the Company will have adequate  cash
flow to meet its obligations during the next twelve months.

     In August of 1998, the Board of Directors of the Company
authorized the sale of its wholly-owned subsidiary, St. Lawrence
Industrial Services, Inc.  Although the sale has not yet been
completed, it is not expected to have a significant impact on the
Company's financial position.

YEAR 2000

      The  Company recognizes the need to ensure its operations will
not  be  adversely  impacted by year 2000  software  failures.   The
company is addressing the risk to the availability and integrity  of
financial  systems and the reliability of operational  systems.   In
1998, the company has upgraded its financial systems to comply  with
year  2000  requirements and has also undertaken an upgrade  of  its
headquarters  information  and decision support  systems,  which  is
expected  to  be complete by March of 1999.  The Company  has  spent
approximately $40,000 to date on these system upgrades and estimates
spending approximately $15,000 over the next 6 to 12 months.

THE MASSENA PORT FACILITY

      The  Massena Port Facility is a former oil tank farm which  is
located  on the St. Lawrence River in Massena, NY.  The property  is
improved  with  several buildings and a deep water docking  facility
for  large  ocean  going  ships.  The property  is  still  a  viable
location  for  a  petroleum distribution facility  and  could  still
function  as  one  pending upgrades of tanks and diking  systems  to
current  state  and  federal guidelines.  Any improvements  such  as
these  would be treated as a capital expense in the year  they  were
incurred.  Currently, the Company uses the property for its  Massena
branch  office  headquarters,  equipment  storage  and  its  Aqueous
Treatment/360  Facility.   A wholly-owned  subsidiary  of  the  same
shareholder  currently has an option to purchase  the  Massena  Port
Facility for $2,000,000.

      In  1996,  the  Company reclassified the Massena  Property  to
Assets  Held  for Sale.  The property at that time  had  a  carrying
value of approximately $1.9 million.  Due to the significance of the
carrying  value  of  the  property, in  March  of  1997,  management
obtained  an  independent  third  party  appraisal  to  support  its
carrying  value.  Such appraisal included an evaluation  of  similar
sales  plus  a pending transaction at the time.  The appraisal  also
included  an evaluation of the time frame during which a sale  would
be expected.  Based upon the appraisal report and an estimate of the
costs  to  sell, management recognized an impairment of $308,377  on
the  property  during 1997.  As of September 30, 1998, the  carrying
value of the property is $1,605,427.

N.Y.S.D.E.C. CONSENT ORDER

      In March of 1997, the Company signed a consent order issued by
the  New  York State Department of Environmental Conservation  which
requires the Company to remediate its Massena, NY  property.

      In  the second quarter of 1997, the Company began digging test
pits   on   the   property  to  determine  the  extent   of   ground
contamination.   A total of ten test pits were dug.   Eight  of  the
pits were found to have no contamination and were closed out by  New
York  State.   The remaining two pits had low level  indications  of
contamination.  These areas were excavated late in the third quarter
of  1997.   The  Company removed approximately  40  cubic  yards  of
contaminated  material from the two pits and is  currently  awaiting
final  closure  of  the site by New York State.   The  Company  also
tested  its groundwater supply in the area.  The Company  has  spent
approximately  $60,000  to clean this site, which  was  expensed  in
1997.   As of the date of this report, the Company is awaiting final
closure  of  the consent order by the New York State  Department  of
Environmental  Conservation and the Company believes the  extent  of
the contamination is minimal and will not impair its ability to sell
the property.

SPECIAL NOTICE REGARDING FORWARD-LOOKING STATEMENTS

      The Company is including the following cautionary statement in
this  Form  10-Q to make applicable and take advantage of the  "safe
harbor"  provisions of the Private Securities Litigation Reform  Act
of  1995 for any forward-looking statement made by, or on behalf of,
the  Company.  This 10-Q, press releases issued by the Company,  and
certain  information provided periodically in writing and orally  by
the  Company's  designated  officers and agents  contain  statements
which  constitute forward-looking statements within the  meaning  of
Section  27A of the Securities Act of 1933 and Section  21E  of  the
Securities  Exchange Act of 1934.  The words expect, believe,  goal,
plan,  intend,  estimate,  and similar  expressions  and  variations
thereof  used  are intended to specifically identify forward-looking
statements.  Where  any such forward-looking  statement  includes  a
statement  of  the  assumptions or basis  underlying  such  forward-
looking statement, the Company cautions that, while it believes such
assumptions or basis to be reasonable and makes them in good  faith,
assumed  facts or basis almost always vary from actual results,  and
the  differences between assumed facts or basis and  actual  results
can  be  material, depending on the circumstances.   Where,  in  any
forward-looking statement, the Company, or its management, expresses
an  expectation or belief as to future results, such expectation  or
belief  is expressed in good faith and believed to have a reasonable
basis,  but  there  can  be  no  assurance  that  the  statement  of
expectation or belief will result or be achieved or accomplished.


                                  
                        RESULTS OF OPERATIONS

                              BILLINGS

      The  Company's project billings for the third quarter of  1998
increased 99% to $3,025,542 from $1,518,997 for the third quarter of
1997.   For  the  nine  month period ended September  30,  1998  the
Company's  billings increased 44% to $7,531,604 from $5,216,166  for
the  same period in 1997.  The Company's increase in revenues during
the  first six months of 1998 was primarily attributable to a  large
emergency  spill  response contract for a utility  customer.   Since
July,  the Company's core service revenues increased due to  several
large  industrial cleaning contracts as well as various tank removal
and  tank  installation  projects.  During the  three  months  ended
September  30,  1998, the Company's newly expanded geographic  areas
generated revenue of approximately $520,000, all of which  was  core
service  revenue  resulting from competitive  bidding  in  both  the
public and private markets.  The expanded areas produced revenue  of
approximately $750,000 for the nine months ended September 30, 1998.

                   PROJECT COSTS AND GROSS PROFIT

      Project costs for the third quarter of 1998 increased  98%  to
$2,181,844  from $1,101,314 for the same period in 1997 due  to  the
significant increase in billings.  Project costs as a percentage  of
revenues  was  72% and 73% for the three months ended September  30,
1998  and  1997  respectively.  Gross profit margin  for  the  third
quarter  of  1998 increased to 28% from 27% for the same  period  in
1997.

      For  the  nine month period ended September 30, 1998,  project
costs  increased  43%  to $5,302,814 from $3,712,242  for  the  nine
months  ended September 30, 1997, primarily due to the  increase  in
the  Company's billings.  Project costs as a percentage of  revenues
were 70% and 71% for the nine month periods ended September 30, 1998
and  1997, respectively.  The Company was able to maintain its focus
on  meeting  its  budgeted gross margin goals, even with  the  sharp
increase in sales.  Management was able to control the mix  of  work
pursued  by  the  Company, which enabled the Company  to  focus  its
efforts  in  service  areas  that produced  a  higher  gross  margin
percentage.

       SELLING, GENERAL,  ADMINISTRATIVE AND INTEREST EXPENSES

     Selling, general and administrative expenses ("SG&A")  for  the
quarter  ended  September 30, 1998 decreased  5%  to  $571,995  from
$605,144  for  the same period in 1997.  For the nine  month  period
ended  September  30, 1998, SG&A decreased 12%  to  $1,594,016  from
$1,811,636  for  the same period in 1997.  SG&A as a  percentage  of
revenues  decreased  to 19% versus 40% for the  three  months  ended
September  30, 1998.  For the nine month period ended September  30,
1998,  SG&A  decreased to 21% of revenues versus 35%  for  the  same
period  in  1997.   The  decrease in SG&A is due  to  the  Company's
ability  to  increase  the utilization of its existing  staff  while
simultaneously increasing revenues dramatically.  The Company  added
five  additional  project managers and supervisors during  the  last
five  months  and  has  kept them focused on  bidding  and  managing
projects.    Additionally,  SG&A  decreased  due  to  the  corporate
restructuring of the Company in October of 1997, which significantly
reduced depreciation and amortization expenses. In June of 1998, the
Company was able to secure lower general business insurance rates as
well as cut various other SG&A expenses.



                          INTEREST EXPENSE

      Interest expense for the nine months ended September 30,  1998
decreased 68% to $83,977 from $264,484 for the same period in  1997.
The  decrease  is primarily attributable to the Company's  financial
restructuring, which significantly reduced the Company's debt.


                          NET INCOME (LOSS)

      The  net income for the three months ended September 30,  1998
was  $239,948, or $.02 per share (basic and diluted), compared to  a
net loss of $807,519, or $.17 per share (basic and diluted), for the
same  period in 1997.  For the nine months ended September 30, 1998,
the  net income was $564,026, or $.05 per share (basic and diluted),
compared  to a net loss of ($1,115,444), or ($.23) per share  (basic
and diluted), for the same period in 1997.


                     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

                     None


Item 7.      Reports on Form 8-K

             No reports on Form 8-K were filed during the
             quarter ended September 30, 1998.



                           SIGNATURES

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.

                OP-TECH Environm ental Services, Inc.
                            (Registrant)


Date: November 13, 1998     /s/ John R. Loveland
                               John  R.  Loveland,  Chief  Executive
                                                    Officer

Date: November 13, 1998    /s/ Christopher J. Polimino
                            Christopher J. Polimino, Vice President

Date: November 13, 1998    /s/ Joseph M. McNulty
                            Joseph M. McNulty, Treasurer