----

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| [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 |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------|

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

----

| PART                I.  | FINANCIAL                INFORMATION                                                                    | Page                No. |
|-------------------------|---------------------------------------------------------------------------------------------------------|-------------------------|
|                    |                                                                                                    |                    |
| Item                1.  | Financial                Statements                                                                     |                    |
|                    |                                                                                                    |                    |
|                    | Consolidated                Balance Sheets                                                              |                    |
|                    | -September                30, 2007 (Unaudited) and December 31, 2006 (Audited)                          |  3                 |
|                    |                                                                                                    |                    |
|                    | Consolidated                Statements of Operations                                                    |                    |
|                    | -Three                months ended                September 30, 2007 and September 30, 2006 (Unaudited) |                    |
|                    | -                Nine months ended September 30, 2007 and September 30, 2006                (Unaudited) | 4                       |
|                    |                                                                                                    |                    |
|                    | Consolidated                Statements of Cash Flows                                                    |                    |
|                    | -Nine                months ended September 30, 2007 and September 30, 2006                (Unaudited)  | 5                       |
|                    |                                                                                                    |                    |
|                    | Notes                to Consolidated Financial Statements (Unaudited)                                   | 6                       |
|                    |                                                                                                    |                    |
| Item                2.  | Management's                Discussion and Analysis of Financial                                        |                    |
|                    | Condition                and Results of Operations                                                      | 8                       |
|                    |                                                                                                    |                    |
| Item                3.  | Quantitative                and Qualitative Disclosure About Market Risk                                | 10                      |
|                    |                                                                                                    |                    |
| Item                4.  | Controls                and Procedures                                                                  | 10                      |
|                    |                                                                                                    |                    |
|                    |                                                                                                    |                    |
| PART                II. | OTHER                INFORMATION                                                                        | 11                      |
|                    |                                                                                                    |                    |
|                    | SIGNATURES                                                                                              | 12                      |

----

| OP-TECH                  ENVIRONMENTAL SERVICES, INC. AND WHOLLY-OWNED                  SUBSIDIARIES                                      |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED                  BALANCE SHEETS                                                                                              |   |
|                                                                                                                                      |   | (UNAUDITED) |   |
|                                                                                                                                      |   | September                  30, |   |   | December                  31, |   |
|                                                                                                                                      |   | 2007 |   |   | 2006 |   |
| ASSETS                                                                                                                                    |   |   |   |   |   |   |
| Current                  Assets:                                                                                                          |   |   |   |   |   |   |
|                     Cash                                                                                                        |   | $ | 68,656 |   |   | $ | 30,981 |   |
|                     Accounts receivable (net of allowance for doubtful accounts of                                              |   |   |   |   |   |   |   |   |
|                        approximately $298,000 and $114,000, respectively)                                        |   |   | 7,343,920 |   |   |   | 10,008,186 |   |
|                     Costs on uncompleted projects applicable to future                  billings                                |   |   | 1,856,360 |   |   |   | 2,984,323 |   |
|                     Inventory                                                                                                   |   |   | 416,848 |   |   |   | 378,439 |   |
|                     Current portion of deferred tax asset                                                                       |   |   | 260,100 |   |   |   | 260,100 |   |
|                     Prepaid expenses and other current assets, net                                                              |   |   | 622,831 |   |   |   | 447,759 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
|                             Total Current                  Assets                       |   |   | 10,568,715 |   |   |   | 14,109,788 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Property                  and equipment, net                                                                                              |   |   | 3,403,224 |   |   |   | 3,216,781 |   |
| Deferred                  tax asset                                                                                                       |   |   | 1,222,370 |   |   |   | 1,004,800 |   |
| Other                  assets                                                                                                             |   |   | 13,961 |   |   |   | 44,898 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
|           Total                  Assets                                                 |   | $ | 15,208,270 |   |   | $ | 18,376,267 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| LIABILITIES                  AND SHAREHOLDERS' EQUITY                                                                                     |   |   |   |   |   |   |   |   |
| Current                  Liabilities:                                                                                                     |   |   |   |   |   |   |   |   |
|                     Accounts payable                                                                                            |   | $ | 2,301,081 |   |   | $ | 4,144,190 |   |
|                     Outstanding checks in excess of bank balance                                                                |   |   | -  |   |   |   | 149,741 |   |
|                        on uncompleted projects                                                                   |   |   | 994,736 |   |   |   | 796,438 |   |
|                     Accrued expenses and other current liabilities                                                              |   |   | 854,609 |   |   |   | 943,833 |   |
|                     Accrued litigation defense reserve                                                                          |   |   | 357,997 |   |   |   | 400,000 |   |
|                     Current portion of long-term debt                                                                           |   |   | 989,354 |   |   |   | 771,345 |   |
|                             Total Current                  Liabilities                  |   |   | 5,497,777 |   |   |   | 7,205,547 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Long-term                  debt, net of current portion                                                                                   |   |   | 2,011,800 |   |   |   | 2,128,193 |   |
| Note                  payable to bank under line of credit                                                                                |   |   | 4,636,701 |   |   |   | 5,731,548 |   |
|                             Total                  Liabilities                          |   |   | 12,146,278 |   |   |   | 15,065,288 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Shareholders'                  Equity:                                                                                                    |   |   |   |   |   |   |   |   |
|                     Common stock, par value $.01 per share; authorized                  20,000,000                              |   |   |   |   |   |   |   |   |
|                        shares; 11,937,039 and 11,748,704 shares issued and                  outstanding          |   |   |   |   |   |   |   |   |
|                        as of September 30, 2007 and December 31, 2006,                  respectively             |   |   | 119,371 |   |   |   | 117,487 |   |
|                     Additional paid-in capital                                                                                  |   |   | 6,991,418 |   |   |   | 6,925,581 |   |
|                     Accumulated deficit                                                                                         |   |   |  (4,054,897) |   |   |   | (3,751,789) |   |
|                     Accumulated other comprehensive income                                                                      |   |   | 6,100 |   |   |   | 19,700 |   |
|                             Total Shareholders'                  Equity                 |   |   | 3,061,992 |   |   |   | 3,310,979 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
|                             Total Liabilities and Shareholders'                  Equity |   | $ | 15,208,270 |   |   | $ | 18,376,267 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| 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 |   | NINE                MONTHS  ENDED |
|                                                                                                               | September                30, |   | September                30, |   | September                30, |   | September                30, |
|                                                                                                               | 2007 |   | 2006 |   | 2007 |   | 2006 |
|                                                                                                               |   |   |   |   |   |   |   |
| Project                revenue                                                                                     | $ | 8,109,003 |   | $ | 8,235,199 |   | $ | 24,559,953 |   | $ | 23,192,710 |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Project                costs                                                                                       |   | 5,796,063 |   |   | 6,388,227 |   |   | 18,855,611 |   |   | 17,817,650 |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Gross                margin                                                                                        |   | 2,312,940 |   |   | 1,846,972 |   |   | 5,704,342 |   |   | 5,375,060 |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Operating                expenses:                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
|     Payroll                expense and related payroll                taxes and benefits       |   | 977,174 |   |   | 683,961 |   |   | 2,715,099 |   |   | 1,921,448 |
|    Office                Expense                                                                    |   | 147,456 |   |   | 154,620 |   |   | 505,179 |   |   | 433,719 |
|    Occupancy                                                                                        |   | 161,837 |   |   | 140,045 |   |   | 514,838 |   |   | 422,185 |
|    Business                Insurance                                                                |   | 163,570 |   |   | 143,422 |   |   | 489,944 |   |   | 367,369 |
|    Professional                Services                                                             |   | 149,090 |   |   | 145,334 |   |   | 441,251 |   |   | 364,577 |
|    Equipment                Expense, net of usage                credit                             |   | 253,173 |   |   | 121,582 |   |   | 684,466 |   |   | 392,587 |
|    Litigation                Defense Reserve                                                        |   | - |   |   | 80,000 |   |   | - |   |   | 80,000 |
|     Provision                for Impairment of Land and Buildings Held for                Sale |   | - |   |   | 150,000 |   |   | - |   |   | 150,000 |
|    Other                expenses                                                                    |   | 70,368 |   |   | 83,307 |   |   | 355,512 |   |   | 389,375 |
|                                                                                                               |   | 1,922,668 |   |   | 1,750,012 |   |   | 5,706,289 |   |   | 4,521,260 |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Operating                income (loss)                                                                             |   | 390,272 |   |   | 96,960 |   |   | (1,947)  |   |   | 853,800 |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Other                income and (expense):                                                                         |   |   |   |   |   |   |   |   |   |   |   |
|   Interest                expense                                                                        |   | (145,784)  |   |   | (155,855)  |   |   | (504,713)  |   |   | (414,911)  |
|   Other,                net                                                                              |   | 817 |   |   | (2,237)  |   |   | 1,552 |   |   | (3,387)  |
|                                                                                                               |   | (144,967)  |   |   |  (158,092) |   |   | (503,161)  |   |   | (418,298)  |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Net                income (loss) before income taxes                                                               |   | 245,305 |   |   |  (61,132) |   |   | (505,108)  |   |   | 435,502 |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Income                tax benefit (expense)                                                                        |   |  (98,100) |   |   | 22,900 |   |   | 202,000 |   |   | (174,900)  |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Net                income (loss)                                                                                   | $ | 147,205 |   | $ | (38,232) |   | $ | (303,108) |   | $ | 260,602 |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                per common share:                                                                          |   |   |   |   |   |   |   |   |   |   |   |
|    Basic                                                                                            | $ | 0.012 |   | $ | (0.003) |   | $ | (0.025) |   | $ | 0.022 |
|    Diluted                                                                                          | $ | 0.012 |   | $ | (0.003) |   | $ | (0.024) |   | $ | 0.021 |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                average shares outstanding:                                                                |   |   |   |   |   |   |   |   |   |   |   |
|    Basic                                                                                            |   | 11,860,650 |   |   | 11,746,494 |   |   | 11,911,576 |   |   | 11,745,750 |
|    Diluted                                                                                          |   | 12,321,642 |   |   | 11,746,494 |   |   | 12,477,012 |   |   | 12,299,880 |
|                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| The                accompanying notes are an integral part of the financial                statements.             |

----

| OP-TECH                ENVIRONMENTAL SERVICES, INC. AND WHOLLY-OWNED                SUBSIDIARIES                                                                                                        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CONSOLIDATED                STATEMENTS OF CASH FLOWS                                                                                                                                                    |
| (UNAUDITED)                                                                                                                                                                                             |
|                                                                                                                                                                                                    | NINE                MONTHS ENDED |
|                                                                                                                                                                                                    | September                30, |   | September                30, |
|                                                                                                                                                                                                    | 2007 |   | 2006 |
| Operating                activities:                                                                                                                                                                    |   |   |   |
|                   Net income (loss)                                                                                                                                                           | $ | (303,108) |   | $ | 260,602 |
|                   Adjustments to reconcile net income (loss) to net cash                                                                                                                      |   |   |   |   |   |
|                      provided by (used in) operating activities:                                                                                                               |   |   |   |   |   |
|                         Bad debt expense                                                                                                                        |   | 228,089 |   |   | 67,644 |
|                         Depreciation and amortization                                                                                                           |   | 563,412 |   |   | 451,271 |
|                         Stock Compensation                                                                                                                      |   | 51,221 |   |   | 53,175 |
|                         Provision for deferred income taxes                                                                                                     |   |  (202,000) |   |   | 174,900 |
|                         Provision for impairment of land and buildings held for                sale                                                             |   | -  |   |   | 150,000 |
|                         (Increase) decrease in operating assets and                                                                                             |   |   |   |   |   |
|                            increase (decrease) in operating liabilities:                                                                         |   |   |   |   |   |
|                               Accounts receivable                                                                                 |   | 2,436,177 |   |   | (1,895,099) |
|                               Costs on uncompleted projects applicable to                                                         |   |   |   |   |   |
|                                   future billings                                                             |   | 1,127,963 |   |   | (781,304) |
|                               Billings and estimated profit in excess of costs                                                    |   |   |   |   |   |
|                                  on uncompleted contracts                                                          |   | 198,298 |   |   | (23,963) |
|                               Prepaid expenses, inventory and other assets                                                        |   | 480,722 |   |   | 136,887 |
|                               Accrued litigation defense reserve                                                                  |   |  (42,003) |   |   | 80,000 |
|                               Accounts payable and accrued expenses                                                               |   |  (1,932,333) |   |   | 545,810 |
|                                       Net cash provided by (used in) operating activities |   | 2,606,438 |   |   | (780,077) |
|                                                                                                                                                                                                    |   |   |   |   |   |
| Investing                activities:                                                                                                                                                                    |   |   |   |   |   |
|                   Purchase of property and equipment                                                                                                                                          |   | (749,856)  |   |   | (738,952) |
|                                      Net cash used in investing activities                     |   | (749,856)  |   |   | (738,952) |
|                                                                                                                                                                                                    |   |   |   |   |   |
| Financing                activities:                                                                                                                                                                    |   |   |   |   |   |
|                   Proceeds from issuance of common stock                                                                                                                                      |   | 16,500 |   |   | 200 |
|                   Outstanding checks in excess of bank balance                                                                                                                                |   | (149,741)  |   |   | (15,083) |
|                   Proceeds from note payable to bank and current                                                                                                                              |   |   |   |   |   |
|                      and long-term borrowings, net of financing costs                                                                                                          |   | 11,429,813 |   |   | 11,596,973 |
|                   Principal payments on current and long-term borrowings                                                                                                                      |   | (13,115,478)  |   |   | (10,143,064) |
|                                     Net cash provided by (used in) financing activities             |   | (1,818,906)  |   |   | 1,439,027 |
|                                                                                                                                                                                                    |   |   |   |   |   |
| Increase                (decrease) in cash                                                                                                                                                              |   | 37,675 |   |   | (80,003)  |
|                                                                                                                                                                                                    |   |   |   |   |   |
| Cash                at beginning of period                                                                                                                                                              |   | 30,981 |   |   | 90,928 |
|                                                                                                                                                                                                    |   |   |   |   |   |
| Cash                at end of period                                                                                                                                                                    | $ | 68,656 |   | $ | 10,925 |
|                                                                                                                                                                                                    |   |   |   |   |   |
|                   Equipment purchased through bank and other financing                sources                                                                                                 | $ | - |   | $ | - |
|                   Non-cash financing of insurance                                                                                                                                             | $ | 663,266 |   | $ | 507,472 |
|                                                                                                                                                                                                    |   |   |   |   |   |
| The                accompanying notes are an integral part of the consolidated financial                statements.                                                                                     |

----

----

|                             |   | Nine                months ended |     |   | Three                months ended |   |
|----------------------------------|--------|----------------------------------|----------|--------|-----------------------------------|--------|
|                             |   | Sept.                30, 2007    |     |   | Sept.                30, 2006     |   |   | Sept.                30, 2007 |   |   | Sept.                30, 2006 |   |
| Net                income (loss) |   |                             | (294,801 | )      |                              | $      | 260,602 |   |   |   | 155,512 |   |   |   | (38,232 | ) |

|                                       |   |   | (13,600  | ) |   |   | 4,660   |   |   |   | (15,400 | )      |   |   | (12,900 | ) |
|--------------------------------------------|--------|--------|----------|---|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|---|
| Comprehensive                income (loss) |   | $      | (308,401 | ) |   | $      | 265,262 |   |   |   | 140,112 |   |   | $      | (51,132 | ) |

----

----

| ·   | Payroll                expense and related payroll taxes and benefits increased 43% to $977,174                from $683,961 in 2006.  The increase is related to an increase                in workers compensation expense, increase in employee benefit costs                and                non-billable labor. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Equipment                expense, net of usage credit increased 108% to 253,173 from 121,582                primarily attributed to increases in fuel expense and a decrease                in                equipment utilization. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

----

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

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

|   | No                material changes |
|--------|------------------------------------|

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

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

----

|                                     |   |   |                                                   |   |
|------------------------------------------|--------|--------|--------------------------------------------------------|--------|
| /s/Charles                  B. Morgan    |   |   | /s/                  Jon S. Verbeck                    |   |
| Charles                  B. Morgan       |   |   | Jon                  S. Verbeck                        |   |
| Chief                  Executive Officer |   |   | Treasurer                  and Chief Financial Officer |   |

----

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