**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION** ****


Washington,
      D.C. 20549





**FORM
      10-QSB**





(Mark
      One)





**x QUARTERLY
      REPORT
      UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT**


**OF
      1934**





For
      the
      quarterly period ended September 30, 2006





**o TRANSITION
      REPORT
      PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES**


**EXCHANGE
      ACT OF 1934**





For
      the
      transition period from _____ to _______





Commission
      file number: 000-30065





**INTREPID
      TECHNOLOGY & RESOURCES, INC., AND SUBSIDIARIES**


(exact
      name of registrant as specified in its charter)





**Idaho**
            **82-0230842**(State
                or other jurisdiction of
              incorporation
                or organization)
            (IRS
                Employer
              Identification
                No.)







501
      West
      Broadway, Suite 200,


Idaho
      Falls, Idaho 82304


(Address
      of principal executive offices)





(208)
      529-5337


(Issuer's
      telephone number)





**Idaho**


(State
      or
      other jurisdiction of incorporation or organization)


Registrant's
      telephone number, including area code:





Check
      whether the issuer (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Exchange Act during the past 12 months (or for such shorter period
      that the registrant was required to file such reports), and (2) has been subject
      to such filing requirements for the past 90 days.





Yes X No
      __





State
      the
      number of shares outstanding of each of the issuer's classes of common equity,
      as of the last practicable date:





241,513,075 **** shares
      of common stock, $0.005 par value per share, as of November 10,
      2006.





Transitional
      Small Business Disclosure Format (check one): Yes __ No X







**TABLE
      OF CONTENTS**





**Part
      I - FINANCIAL INFORMATION**





Item
            1.
            Financial
                StatementsBalance
                Sheets
            3Statements
                of Operations
            4Statements
                of Cash Flows
            5Notes
                to Unaudited Financial Statements
            6





Item
            2.
            Management’s
                Discussion and Analysis
            9Results
                of Operations
            9Capital
                Requirements
            12Item
            3.
            Controls
                and Procedures
            14





**Part
      II - OTHER INFORMATION**





Item
            1.
            Legal
                Proceedings
            15Item
            2.
            Changes
                in Securities
            15Item
            3.
            Defaults
                Upon Senior Securities
            15Item
            4.
            Submission
                of Matters to a Vote of Security Holders
            15Item
            5.
            Other
                Information
            15Item
            6.
            Exhibits
            15Signature
                Page
            16Certifications
            17





2


**PART
      I. FINANCIAL INFORMATION**


**ITEM
      1. FINANCIAL STATEMENTS**




**INTREPID
        TECHNOLOGY AND RESOURCES, INC.**
 **CONSOLIDATED
        BALANCE SHEETS**
 
 September
                  30,
              
              June
                  30,2006
              
              2006ASSETS
              
              (Unaudited)
              
              (Audited)Current
                  assets:Cash
              
              $
              235,332
              
              
              716,203Accounts
                  receivable, net
              
              
              40,282
              
              
              53,252Prepaid
                  expenses
              
              
              1,313
              
              
              66,076Bond
                  offering costs
              
              
              165,635
              
              
              138,896Other
                  assets
              
              
              1,945
              
              
              2,245Total
                  current assets
              
              
              444,507
              
              
              976,672Property,
                  plant, and equipment, net
              
              
              3,162,605
              
              
              2,218,392Total
                  assets
              
              $
              3,607,112
              
              
              3,195,064LIABILITIES
                  AND STOCKHOLDERS' EQUITYCurrent
                  liabilities:Accounts
                  payable
              
              $
              224,337
              
              
              187,140Accrued
                  expenses
              
              
              272,727
              
              
              271,089Note
                  payable
              
              
              746,746
              
              
              556,264Total
                  current liabilities
              
              
              1,243,810
              
              
              1,014,493Commitments
                  and contingenciesStockholders'
                  equity:Preferred
                  stock, $1 par value; 5,000,000 sharesauthorized,
                  no shares issued and outstanding
              
              
              -
              
              
              -Common
                  stock, $.005 par value; 350,000,000 sharesauthorized,
                  240,418,590 and 230,100,973 sharesissued
                  and outstanding, respectively
              
              
              1,202,093
              
              
              1,150,505Additional
                  paid-in capital
              
              
              9,610,929
              
              
              9,183,892Stock
                  subscription receivable
              
              
              (16,200
              )
              
              (16,200
              )Accumulated
                  deficit
              
              
              (8,433,520
              )
              
              (8,137,626
              )Total
                  stockholders' equity
              
              
              2,363,302
              
              
              2,180,571Total
                  liabilities and stockholders' equity
              
              $
              3,607,112
              
              
              3,195,064





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





3


**INTREPID
        TECHNOLOGY AND RESOURCES, INC.**


**UNAUDITED
        CONSOLIDATED STATEMENTS OF OPERATIONS**
 **Three
        Months Ended September 30, 2006 and 2005**
  2006
              
              2005Revenues,
                  net
              
              $
              149,253
              
              
              140,989Costs
                  of revenues
              
              
              61,283
              
              
              86,247Gross
                  profit
              
              
              87,970
              
              
              54,742Operating
                  expenses:General
                  and administrative
              
              
              342,773
              
              
              329,531Research
                  and development
              
              
              45,097
              
              
              107,239Loss
                  from operations
              
              
              (299,900
              )
              
              (382,028
              )Other
                  income (expense):Interest
                  income
              
              
              4,010
              
              
              -Interest
                  expense
              
              
              (4
              )
              
              (51,110
              )Loss
                  before provision for income taxes
              
              
              (295,894
              )
              
              (433,138
              )Provision
                  for income taxes
              
              
              -
              
              
              -Net
                  loss
              
              $
              (295,894
              )
              
              (433,138
              )Net
                  loss per common share - basic and diluted
              
              $
              -
              
              
              -Weighted
                  average common shares - basic and diluted
              
              
              238,246,000
              
              
              143,982,000





The
      accompanying notes are an integral part of these financial
      statements




4


**INTREPID
      TECHNOLOGY AND RESOURCES, INC.**


**UNAUDITED
        CONSOLIDATED STATEMENTS OF CASH FLOWS**


**Three
        Months Ended September 30, 2006 and 2005**
  2006
              
              2005Cash
                  flows from operating activities:Net
                  loss
              
              $
              (295,894
              )
              
              (433,138
              )Adjustments
                  to reconcile net loss to net cashused
                  in operating activities:Stock
                  compensation expense
              
              
              31,000
              
              
              46,336Depreciation
              
              
              15,724
              
              
              13,499Interest
                  expense on debentures
              
              
              -
              
              
              9,480(Increase)
                  decrease in:Accounts
                  receivable
              
              
              12,970
              
              
              36,528Prepaid
                  expenses
              
              
              7,763
              
              
              4,157Other
                  assets
              
              
              300
              
              
              400Increase
                  (decrease) in:Accounts
                  payable
              
              
              37,197
              
              
              (52,866
              )Accrued
                  expenses
              
              
              1,638
              
              
              9,258Net
                  cash used in operating activities
              
              
              (189,302
              )
              
              (366,346
              )Cash
                  flows from investing activities:Purchases
                  of property and equipment
              
              
              (487,455
              )
              
              (23,905
              )Net
                  cash used in investing activities
              
              
              (487,455
              )
              
              (23,905
              )Cash
                  flows from financing activities:Proceeds
                  from long-term debt
              
              
              -
              
              
              450,000Payments
                  on long-term debt
              
              
              -
              
              
              (483,998
              )Payments
                  on note payable
              
              
              (225,000
              )Bond
                  offering costs
              
              
              (26,739
              )
              
              -Issuance
                  of common stock
              
              
              472,125
              
              
              565,752Common
                  stock offering costs
              
              
              (24,500
              )
              
              (30,250
              )Net
                  cash provided by financing activities
              
              
              195,886
              
              
              501,504Net
                  increase (decrease) in cash
              
              
              (480,871
              )
              
              111,253Cash,
                  beginning of period
              
              
              716,203
              
              
              65,737Cash,
                  end of period
              
              $
              235,332
              
              
              176,990




The
      accompanying notes are an integral part of these financial statements





5





INTREPID
      TECHNOLOGY AND RESOURCES, INC.


NOTES
      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


September
      30, 2006 and 2005








Note
      1
      - Summary of Significant Accounting Policies





Basis
      of Presentation





The
      accompanying unaudited consolidated financial statements have been prepared
      in
      accordance with United States generally accepted accounting principles ("U.S.
      GAAP") for interim financial information and with instructions to Form 10-QSB
      of
      Regulation S-X. Accordingly, they do not include all of the information and
      footnotes required by U.S. GAAP for complete financial statements. The
      preparation of the consolidated financial statements in conformity with U.S.
      GAAP requires management to make estimates and assumptions that affect the
      amounts reported in the consolidated financial statements and accompanying
      notes. Actual results could differ from estimates. In the opinion of management,
      all adjustments, which consist of normal and recurring adjustments, necessary
      for fair presentation have been included. These financial statements should
      be
      read in conjunction with the financial statements and notes thereto included
      in
      the Company's 2006 Annual Report on Form 10-KSB for the year ended June 30,
      2006, as filed with the Securities and Exchange Commission.





Stock-Based
      Compensation





The
      Company has stock-based employee compensation plans, which authorized the grant
      of stock options to eligible employees and directors. Effective July 1, 2006,
      the Company adopted Statement of Financial Accounting Standards (SFAS) 123R, *Share-Based
      Payment* ,
      using
      the modified prospective method. This statement requires the Company to
      recognize compensation cost based on the grant date fair value of options
      granted to employees and directors. As of June 30, 2006, the Company’s issued
      and outstanding stock options were 100 percent vested, and the Company did
      not
      grant any stock options during the quarter ended September 30, 2006. Therefore,
      there was no compensation cost related to adoption of the statement. Prior
      to
      July 1, 2006, the Company accounted for its stock-based employee compensation
      plans under the recognition and measurement principles of APB Opinion 25, *Accounting
      for Stock Issued to Employees* ,
      and
      related Interpretations, and had adopted the disclosure-only provisions of
      SFAS
      123, *Accounting
      for Stock-Based Compensation* .
      Accordingly, no compensation cost, related to employee options, was recognized
      in the financial statements prior to July 1, 2006, as all options granted to
      employees under those plans had exercise prices equal to or greater than the
      market value of the underlying common stock on the date of grant.





Principles
      of Consolidation





The
      consolidated financial statements include the accounts of Intrepid Technology
      and Resources, Inc. and its wholly-owned subsidiaries. All significant
      intercompany balances and transactions have been eliminated.





Reclassifications





During
      the quarter ended September 30, 2006, the Company reclassified certain amounts
      on the balance sheets. The amounts payable to Cannon Builders were reclassified
      from the line item titled current portion of long-term debt at June 30, 2006,
      to
      the line item titled note payable





6




Note
      2
      - Going Concern





As
      of
      September 30, 2006, the Company has negative working capital, has incurred
      a
      loss, and has negative cash flows from operations. These factors raise
      substantial doubt about the Company’s ability to continue as a going
      concern.





The
      Company has partially mitigated the Going Concern as a result of entering into
      the agreement with Cornell Capital as discussed in Note 4 below. Management
      has
      also engaged an investment banking firm to obtain bond financing under a State
      of Idaho approved bond inducement resolution to expand operations and production
      capabilities as discussed in Note 6 below.




Note
      3
      - Supplemental Cash Flow Information





Actual
      amounts paid for interest and income taxes for the three months ended September
      30, 2006 and 2005, are approximately as follows:




2006
              
              2005Interest
              
              $
              5,568
              
              
              1,300Income
                  taxes
              
              $
              -
              
              
              -




During
      the three months ended September 30, 2006, the Company:





|· | Reclassified
              $57,000 of prepaid expense to property, plant and
              equipment.
|- | -----------------------------------------------------------------------------------------------------

|· | Acquired
              property, plant, and equipment in exchange for an increase in the note
              payable of $415,482.
|- | --------------------------------------------------------------------------------------------------------------------------------




During
      the three months ended September 30, 2005, the Company:





|· | Issued
              203,585 shares of common stock in exchange for accounts payable and
              accrued expenses of $5,479.
|- | ----------------------------------------------------------------------------------------------------------------------------------

|· | Issued
              2,727,273 shares of common stock in exchange for long-term debt of
              $150,000.
|- | ---------------------------------------------------------------------------------------------------------------



Note
      4
      - Standby Equity Distribution Agreement





On
      March
      10, 2005, the Company entered into a Standby Equity Distribution Agreement
      (SEDA) with Cornell Capital Partners, LP (Cornell). Pursuant to the SEDA, the
      Company may, at its discretion, periodically sell to Cornell shares of common
      stock for a total purchase price of up to $25 million. For each share of common
      stock purchased under the SEDA, Cornell will pay the Company 99% of the lowest
      closing bid price of the common stock on the Over-the-Counter Bulletin Board
      or
      other principal market on which the Company's common stock is traded for the
      five days immediately following the notice date. Cornell will retain 5% of
      each
      advance under the SEDA. As of September 30, 2006, there remains 1,971,535 shares
      of common stock that are available to be issued under this
      agreement.




Note
      5
      - Note Payable





Note
      payable consists of a 7.5% convertible note payable to a contractor, due on
      demand, and secured by common stock.





7


Note
      6
      - Subsequent Events





On
      November 7, 2006, the Company completed a transaction to enter into a bond
      agreement for the construction financing of its two solid waste disposal
      facilities. The bonds issued under the agreement will be issued by The
      Industrial Development Corporation of Gooding County, Idaho, a public
      corporation duly organized and existing under the constitution and the laws
      of
      the State of Idaho. The bonds have a face value of $7,640,000, an interest
      rate
      of 7.5%, and mature on November 1, 2024.





On
      November 7, 2006, the note payable discussed in Note 5 was paid in
      full.




8


**ITEM
      2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
      OPERATIONS**





The
      following discussion contains forward-looking statements that involve known
      and
      unknown risks and uncertainties which may cause actual results in future periods
      to differ materially from those indicated herein as a result of a number of
      factors, including, but not limited to, those set forth under Legal Proceedings,
      and the discussion below. When the Company uses words like "may," "believes,"
      "expects," "anticipates," "should," "estimate," "project," "plan," their
      opposites and similar expressions, the Company is making forward-looking
      statements. These expressions are most often used in statements relating to
      business plans, strategies, anticipated benefits or projections about the
      anticipated revenues, earnings or other aspects of our operating results. We
      make these statements in an effort to keep stockholders and the public informed
      about our business and have based them on our current expectations about future
      events. Such statements should be viewed with caution. These statements are
      not
      guarantees of future performance or events. As noted elsewhere in this report,
      all phases of our business are subject to uncertainties, risks and other
      influences, many of which the Company has no control over. Additionally, any
      of
      these factors, either alone or taken together, could have a material adverse
      effect on the Company and could change whether any forward-looking statement
      ultimately turns out to be true. The Company undertakes no obligation to
      publicly release updates or revisions to these statements. The following
      discussion should be read in conjunction with audited consolidated financial
      statements and the notes filed thereto on Form 10-KSB with the U.S. Securities
      and Exchange Commission for the year ending June 30, 2006.





**RESULTS
      OF OPERATIONS**





**Revenue**





Revenue
      for the quarter ended September 30, 2006, increased 6% to $149,253 compared
      to
      $140,989 for the same period of 2005. This increase was mainly the result of
      revenue from the Whitesides digester plant and increased sales of contracted
      “work for others” over the corresponding periods of one year ago. The Company
      intends to continue to pursue opportunities for outside contracting with
      increased emphasis on providing technical expertise to other 3 rd party
      biofuels projects. The Company’s current principal focus is on the completion of
      the expansion and construction of its two major Biogas fuels facilities. Both
      facilities are scheduled to be in full production in June 2007, with revenue
      streams beginning shortly thereafter. For biofuels facilities that the Company
      designs, constructs and operates for others, it is anticipated that revenue
      will
      be recognized more rapidly, as such services are provided.




In
      the
      three month period ending September 30, 2006, the Company’s primary customers
      were Oak Ridge Associated Universities (ORAU) and Global Design-Build Solutions
      (GdbS). During the corresponding period in 2005, the primary customers were
      the
      Idaho National Laboratory (“INL”) and ORAU. ORAU and GdbS both provided more
      than ten percent of the total recognized revenue during the 2006 period and
      during the 2005 period, both INL and ORAU provided more than ten percent of
      the
      total revenue recognized by the Company.




**Direct
      Operating Costs**





Direct
      operating costs for the three months ending September 30, 2006 and 2005, were
      $61,283 and $86,247 respectively, representing a 29% decrease. The decrease
      is
      due to improved operating efficiencies of the Whitesides plant. The Company
      continues its efforts to reduce direct costs by streamlining costs, exercising
      greater fiscal restraint, and improved management.





**Gross
      Profit**





The
      Company generated a gross profit of $87,970 in the quarter ended September
      30,
      2006 compared to gross profit of $54,742 for the same quarter in 2005. As
      discussed above, the favorable increase for the three months ending September
      30, 2006 was due to increased revenues and improved operating efficiencies.





9


**General
      and Administrative Expenses**





For
      the
      three months ended September 30, 2006, general and administrative expenses
      were
      $342,773 compared to $329,531 for the same quarter ended September 30, 2005.
      This 4% increase was largely the result of increased travel expenses related
      to
      marketing.





**Interest
      Income**





For
      the
      three months ended September 30, 2006, the Company received $4,010 of interest
      income on investment capital. The Company received $0 of interest income on
      investment capital for the corresponding period in 2005.





**Interest
      Expense**





For
      the
      three months ended September 30, 2006, the Company had interest expense of
      $4
      compared to $51,110 for the same period ending September 30, 2005. The 2005
      interest expense was for interest paid on debentures and notes that were
      subsequently paid in full. With the bond offering consummated on November 7,
      2006 to finance the first two biogas facilities, interest expense is likely
      to
      increase in future periods.





**Net
      Loss**





For
      the
      three months ended September 30, 2006, the Company had a net loss of $295,894
      compared to a net loss of $433,138 for the same period ended September 30,
      2005.
      In 2005, the loss was due to a significant drop in engineering contract revenue,
      while the transition to the biofuels business was starting up. For 2006, the
      transition to the new biofuels business accelerated, but substantive revenues
      will not be generated until the first expanded facility is online and biogas
      is
      sold.




**MANAGEMENT'S
      PLAN OF OPERATION**





Providing
      engineering and technical services has been the primary source of revenue,
      and
      hence the primary business focus, in the past. The Company expects to continue
      providing such services in the future, but with a shift in emphasis toward
      providing consulting services to 3 rd party
      developers of biofuels projects. In fiscal year 2007, the Company will expand
      its efforts to become a significant producer and distributor of biogas products
      and a facilities service provider. The following discussion provides an overview
      of our progress in making the transition.





The
      fundamental aspects of the Company's business model are:





·
            Utilize
                cutting edge, but established, technology for the production of biogas
                from large animal operations


·
            Maintain
                equity positions on all biogas projects·
            Begin
                operations in known territory (Idaho), and expand into other western
                states as resources permit


·
            Maximize
                the utilization of our public company status in the financing of
                our
                projects·
            Market
                biogas products to local gas utilities, industrial users, and
                transportation users


·
            Team
                with experienced companies for the marketing and distribution of
                biogas
                products


10





DEVELOPMENT
      PLAN





The
      Company will design, construct and operate production facilities consistent
      with
      the business model described above.





The
      centerpiece of this development plan is an exclusive geographic and case-by-case
      national agreement for anaerobic digestion technology that produces biogas
      with
      a higher concentration of methane than competing processes. This technology
      has
      a successful 6-year operational history and has been demonstrated with both
      cow
      and swine waste.





Our
      goal
      is to become the premier biogas company in the United States. Our approach
      is to
      use superior technology and know-how to convert manure waste from dairy and
      feedlot operations into high BTU biogas that can be further processed to produce
      (1) pipeline quality gas for sale to a gas utility or a marketing and
      distribution company; (2) combustion gas to fuel boilers for processing
      materials; (3) liquid natural gas for transportation fuel, peaking, and/or
      remote community service; and, eventually, (4) hydrogen to energize fuel cells
      for transportation and distributed or non-distributed energy sources. Our range
      of services include:





|- | Designing,
              building, and operating biofuels facilities
|- | --------------------------------------------------------------------

|- | Performing
              value-added processing of raw biogas and residual products of digestion
              for various applications
|- | ---------------------------------------------------------------------------------------------------------------------------------------

|- | Marketing,
              transportation and sales of processed gas
|- | ------------------------------------------------------------------




ITR
      currently has a biogas production plant in Rupert, Idaho that has been in
      operation for over 18 months and is consistently producing 99% purity natural
      gas (methane) with a heating value in excess of 1000 Btu/cubic foot. This plant
      is a commercial prototype facility that can be employed to demonstrate the
      economic viability of the four product lines listed above. The plant is
      currently undergoing a 5-fold expansion to accommodate a corresponding expansion
      of the diary upon which it is located. The bulk of the gas produced at the
      plant
      is under contract for sale to the local gas utility via a 15-year Supply and
      Purchase Agreement. A small portion of the gas is used on-site for plant process
      heating and for heating water for dairy operations.





The
      Development Plan involves discrete projects that will ultimately bring 250,000
      Magic Valley dairy cows under production to create the “Magic Valley Biogas
      Field” in the Magic Valley area of south-central Idaho. The first project will
      provide facilities and infrastructure to process manure from 50,000 dairy cows
      and will be executed in two distinct phases:





Phase
      I
      consists of 10,500 cows located on 2 different dairies and establishes the
      west
      and east anchor points to the Magic Valley Westside field as well as expands
      the
      Rupert plant to full capacity. Construction is underway on both facilities
      and
      will be completed in CY 2007.





Phase
      II
      consists of 30,000 cows located on 3-5 different dairies (depending on outcomes
      of individual dairymen’s current consolidation and expansion plans).
      Construction will be initiated in CY 2007 and conclude in CY-2008.





This
      project will be financed through a combination of debt and equity. It is
      anticipated that the debt portion will be financed through the sale of bonds
      and
      the equity will come from equity partners that will include dairymen, equity
      capital group(s), or other private investors and from retained earnings
      generated through building biogas plants of third parties. Capital cost will
      be
      approximately $40 million, the first phase of which will be just over $10
      million. These funds will provide for anaerobic digester plants constructed
      at
      participating dairies, gas conditioning clean-up equipment for processing the
      raw biogas to pipeline quality standards, and a supporting gas line gathering
      system to transport the clean gas to the gas utility distribution system. A
      majority of the costs (approximately 70%) is for construction of the digesters.





This
      project will provide over 1 billion cubic feet of biogas annually, which, in
      turn, will yield over 1 million mcf of clean gas for sale to the local gas
      utility or marketing and distribution company.





11




***Additional
      Information***





The
      Company plans to increase sales and expand its engineering and scientific
      services into the biofuels area. Revenue generated will be used to meet cash
      flow requirements with any excess being used to support and develop the
      Company’s biofuels production initiatives.





At
      the
      present time the Company does not anticipate paying dividends, cash or
      otherwise, on it’s Common Stock in the foreseeable future. Future dividends will
      depend on earnings, if any, of the Company, its financial requirements and
      other
      factors. The Company believes that the terms of the Settlement Agreement
      relative to divestiture of its mining and mineral rights of the Garnett mine
      in
      Montana have the potential to provide moderate future working capital. The
      Company has obtained bond financing under a State of Idaho approved bond
      inducement resolution, and is seeking other investment capital to support these
      projects and the existing and ongoing operations of the Company.




**CAPITAL
      RESOURCES AND LIQUIDITY**





As
      the
      Company expands into the biofuels business, it will face continuing challenges
      to finance this growth. This is particularly true of Phase I of the Magic Valley
      development projects described above. To obtain the funds necessary to complete
      these capital assets, the Company has obtained bond financing as of November
      7,
      2006. The approximately $7 million will be available for these design and
      construction efforts. This debt will be payable over a 18 year period, starting
      after the anticipated commencement of full operations at these two facilities.
      Management believes that these funds will be adequate to complete these
      facilities.





In
      addition to the capital expenditures for these first facilities, financing
      resources are needed to support operations. The Company has made reasonable
      efforts to meet cash flow demands from ongoing operations but the Company still
      may not always be able to obtain funds under the Standby Equity Distribution
      Agreement (SEDA) or obtain sufficient amounts to satisfy the Company’s working
      capital or other capital needs. The Company finished the quarter ended September
      30, 2006 with cash available of $235,332 compared to $716,203 at June 30, 2006
      The Company believes that it will be necessary to continue to supplement the
      cash flow from operations with the use of outside resources such as investment
      capital by issuance of debenture notes and stock. The Company plans to use
      any
      additional funding to assist in the biogas production facility that is
      considered construction in progress, a component of Property, plant and
      equipment on the balance sheet.





As
      of
      September 30, 2006, the Company had negative working capital of $799,303
      compared to a deficit of $37,821 as of June 30, 2006. The current ratio at
      September 30, 2006 was: 0.36:1 and 0.96:1 at June 30, 2006. This increased
      deficit is due primarily to $879,032 of increased capital expenditures.





During
      the three months ended September 30, 2006, the Company used net cash of $189,302
      for operating activities, compared to $366,346 of net cash used in operating
      activities for the 2005 period. The decrease of cash used by operating
      activities is due mainly to the reduced net loss.





During
      the three months ended September 30, 2006, the Company used $487,455 in
      investing activities, primarily in biogas generating facility construction
      costs, compared to $23,905 used in the year earlier period.





During
      the three months ended September 30, 2006, financing activities provided
      $195,886 in net cash, including $472,125 received from the issuance of common
      stock and $225,000 paid on construction debt. In the comparable period for
      2005,
      the Company had $501,504 of net cash provided by financing activities, of which
      $565,752 was proceeds from stock sales.





12


Standby
      Equity Distribution Agreement .





The
      Company has a Standby Equity Distribution Agreement (SEDA) with Cornell Capital
      Partners LP. As of September 30, 2006 the Company has issued 82,203,550 shares
      under this agreement, plus an initial issuance of $500,000 worth of the
      Company’s stock as a commitment fee for this commitment. Under this agreement,
      the Company may issue stock worth up to $25,000,000, through March 2007. As
      of
      September 30, 2006 an additional $20,000,000 was potentially available under
      this agreement. It is the Company’s intent to utilize this relationship only to
      the extent necessary to finance the transition of the Company’s operations to
      the biofuels business.





Seasonal
      Changes -The
      Company’s operating revenue is generally not affected by seasonal
      changes.





**RECENT
      ACCOUNTING PRONOUNCEMENTS**





Statement
      of Financial Accounting Standards (“SFAS”) No. 151, “Inventory Costs - an
      amendment of ARB No. 43, Chapter 4”, SFAS No. 152, “Accounting for Real Estate
      Time-Sharing Transactions - an amendment of FASB Statements No. 66 and 67”, SFAS
      No. 153, “Exchanges of Nonmonetary Assets - an amendment of APB Opinion No 29”,
      and SFAS No. 154, “Accounting Changes and Error Corrections - a replacement of
      APB Opinion No. 20 and FASB Statement No. 3”, were recently issued.  SFAS
      No 151, 152, 153, and 154 have no current applicability to the Company or their
      effect on the financial statements would not have been significant.





In
      December 2005, the FASB issued SFAS 123 (revised 2005), “Accounting for Stock
      Based Compensation.” This statement supersedes APB Opinion No. 25, “Accounting
      for Stock Issued to Employees.” This revised statement establishes standards for
      the accounting of transactions in which an entity exchanges its equity
      instruments for goods and services, including the grant of stock options to
      employees and directors. The Statement is effective for the Company’s fiscal
      year beginning July 1, 2006, and will require the Company to recognize
      compensation cost based on the grant date fair value of the equity instruments
      its awards. The Company currently accounts for those instruments under the
      recognition and measurement principles of APB Opinion 25, including the
      disclosure-only provisions of the original SFAS 123. Accordingly, no
      compensation cost from issuing equity instruments has been recognized in the
      Company’s financial statements. The Company estimates that the required adoption
      of SFAS 123 (R) will not have a negative impact on its consolidated financial
      statements.





**RISK
      FACTORS**





The
      Company’s current and primary focus is obtaining permits and developing
      favorable properties for alternative and renewable energy production, and
      providing the associated engineering design and construction management services
      required to support the construction and operation of related facilities, and
      cannot provide any guarantees of profitability at this time. The Company will
      continue to expand its engineering services base, “work for others” to generate
      additional revenue to augment working capital requirements in support of its
      alternative and renewable energy efforts. The realization of profits is
      dependent upon successful execution of new business opportunities and the
      development of prototype digester models and implementation of the digester
      project for renewable energy. The Company is dependent upon inducing larger
      companies or private investors to purchase these “turn-key” alternative
      renewable energy generation and production facilities. These projects when
      developed and depending on their success will be the future of the Company.
      The
      Company may not be successful in these efforts.





Our
      operating results are difficult to predict in advance and may fluctuate
      significantly, and a failure to meet the expectations of analysts or our
      stockholders would likely result in a substantial decline in our stock price.





Factors
      that are likely to cause our results to fluctuate include the following:





-
      The
      amount and timing of our operating expenses and capital expenditures;


-
      The
      success or failure of the alternative energy and biofuels projects currently
      underway;


-
      The
      timing, rescheduling or cancellation of engineering customer’s work orders;


-
      Our
      ability to specify, develop, complete, introduce and market biofuels and bring
      them to volume production in a timely manner;


-
      The
      rate of adoption and acceptance of new industry standards in our target markets;


-
      Any
      other unforeseen activities or issues.





13


There
      is
      a limited public market for our common stock. Our common stock is listed on
      the
      OTC Bulletin Board, and there is a limited volume of sales, thus providing
      a
      limited liquidity into the market for our shares. As a result of the foregoing,
      stockholders may be unable to liquidate their shares.





We
      are
      subject to various risks associated with the development of the biofuels and
      alternative energy market place and if we do not succeed our business will
      be
      adversely affected.





Our
      performance will largely depend on our ability to develop and implement the
      anaerobic digester biogas field concept and generate gas and fiber co-products
      for sale. We intend to respond to technological advances and emerging industry
      standards and practices on a timely and cost-effective basis however, we cannot
      predict if we will be effective or succeed in the development of the biofuels
      and alternative energy markets. If we are unable, for technical, legal,
      financial or other reasons, to adapt in a timely manner to develop and operate
      in the biofuels market, our business, results of operations and financial
      condition could be materially adversely affected.





If
      we
      need additional financing, we may not be able to obtain further financing or
      it
      may only be available on terms unfavorable to us or to our stockholders.





Available
      cash resources may not be sufficient to meet our anticipated working capital
      and
      capital expenditure requirements, if the anaerobic digester does not produce
      revenue for at least 12 months. It may become necessary to raise additional
      funds to respond to business contingencies, which could include the need to:





-
      Fund
      additional project expansion for the biofuels production;


-
      Fund
      additional marketing expenditures;


-
      Develop
      additional alternative energy projects or enhance the WOBF gas products;


-
      Enhance
      our operating infrastructure;


-
      Hire
      additional personnel;


-
      Acquire
      other complementary businesses or technologies.





If
      we
      raise additional funds through the issuance of equity or convertible debt
      securities, the percentage ownership of our stockholders would be reduced,
      and
      these newly issued securities might have rights, preferences or privileges
      senior to those of existing stockholders. Additional financing might not be
      available on terms favorable to us, or at all. If adequate funds were not
      available or were not available on acceptable terms, our ability to fund our
      operations, take advantage of unanticipated opportunities, develop or enhance
      our products or otherwise respond to competitive pressures would be
      significantly limited.





**ITEM
      3. CONTROLS AND PROCEDURES**




(a)  Under
      the
      supervision and with the participation of our management, including our
      principal executive officer and principal financial officer, we conducted an
      evaluation of our disclosure controls and procedures, as such term is defined
      under Rule 13a-14(c) promulgated under the Securities Exchange Act of 1934,
      as
      amended (the “Exchange Act”), as of the end of the period covered by this
      report. Based on this evaluation, our principal executive officer and principal
      financial officer concluded that our disclosure controls and procedures are
      effective in alerting them on a timely basis to material information relating
      to
      our Company (including its consolidated subsidiaries) required to be included
      in
      our reports filed or submitted under the Exchange Act.




(b)  There
      have been no changes (including corrective actions with regard to significant
      deficiencies or material weaknesses) in our internal controls over financial
      reporting that has materially affected or could materially affect these internal
      controls over financial reporting.





14




**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**




Exhibit
                No.
            Description
            Incorporated
                by Reference from Registrant's31.1
            Rule
                13a-14(a)/15d-14(a) Certification of Principal Executive
                Officer
            November
                14, 200631.2
            Rule
                13a-14(a)/15d-14(a) Certification of Principal Financial Officer
                by
                Vice-President, Secretary and Treasurer
            November
                14, 200632
            Certification
                pursuant to 18 U.S.C. SECTION 1350****by
                Chairman and Chief Executive Officer and Vice-President, Secretary
                and
                Treasurer
            November
                14, 2006





15


**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.





INTREPID
                TECHNOLOGY & RESOURCES, INC.*(Registrant)*Date:
                November 14, 2006
            By:/s/
                Dr. Dennis D. Keiser,*Chief
                Executive Officer &*
              ***Acting
                Chief Financial Officer*Date:
                Novmeber 14, 2006
            By:/s/
                Bradley J. Frazee,*Vice
                President, Secretary,*
              ***and
                Treasurer*





16