Page 1 of 8

                              UNITED STATES
                   SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.  20549


                                FORM 10-Q

(Mark One)

/ X /     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
          SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended          March 31, 1997                    

                                   OR
 
/___/     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
          SECURITIES AND EXCHANGE ACT OF 1934
       
For the transition period from                       to                   

Commission file number        1-8368       

                       ROLLINS ENVIRONMENTAL SERVICES, INC.               
         (Exact name of registrant as specified in its charter)


         DELAWARE                                         51-0228924      
(State or other jurisdiction of                        (I.R.S. Employer
 incorporation or organization)                       Identification No.)


One Rollins Plaza, Wilmington, Delaware                          19803    
(Address of principal executive offices)                      (Zip Code)

                                 (302) 426-2784                           
          (Registrant's telephone number, including area code)


                                                                          
                       (Former name of registrant)

     Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Sections 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.

                                                 Yes   X     No _____ 

     The number of shares of the registrant's common stock outstanding as
of March 31, 1997 was 60,375,811.


FORM 10-Q                                                     Page 2 of 8

                     PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements
     The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with the instructions to Form 10-Q and do
not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.  In the
opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included. 
Operating results for the quarter and six months ended March 31, 1997 are
not necessarily indicative of the results that may be expected for the year
ending September 30, 1997.  These statements should be read in conjunction
with the financial statements and notes thereto included in the Company's
Annual Report on Form 10-K for the year ended September 30, 1996.


                  ROLLINS ENVIRONMENTAL SERVICES, INC.
                  CONSOLIDATED STATEMENT OF OPERATIONS
               ($000 Omitted Except for Per Share Amounts)

                                      Quarter Ended    Six Months Ended
                                        March 31,          March 31,    
                                     1997      1996     1997      1996

Revenues                           $ 46,553  $58,731  $105,937  $120,167

Operating expenses                   48,965   54,259    98,112   106,997
Depreciation                          7,783    8,419    15,897    15,949
Selling and administrative expenses   7,424    8,720    15,271    17,934
Interest expense                      2,126    2,311     4,362     4,674
                                     66,298   73,709   133,642   145,554

Loss before income tax benefit      (19,745) (14,978)  (27,705)  (25,387)

Income tax benefit                   (7,406)  (5,417)  (10,198)   (9,153)

Net loss                           $(12,339) $(9,561) $(17,507) $(16,234)

Loss per share                     $   (.20) $  (.16) $   (.29) $   (.27)

Average common shares and 
   equivalents outstanding (000)                        60,385    60,378

Dividends paid per common share      None      None       None     None


<PAGE>
FORM 10-Q                                                     Page 3 of 8
                  ROLLINS ENVIRONMENTAL SERVICES, INC.
                       CONSOLIDATED BALANCE SHEET
                             ($000 Omitted)
                                                March 31, September 30,
               ASSETS                             1997        1996  
Current assets
  Cash and cash equivalents (includes
    short-term investments of: 
    $16,988-March; $18,166-September)           $ 19,612    $ 27,231
  Accounts receivable, net                        35,936      42,302
  Income taxes recoverable                          -          7,059
  Deferred income taxes                            5,101       5,616
  Other current assets                             6,540      11,356
     Total current assets                         67,189      93,564

Property and equipment, at cost     
  Land                                            31,324      31,324
  Buildings                                       76,129      75,661
  Equipment and vehicles                         304,027     303,305
  Site improvements                               40,780      39,978
  Construction in progress                         5,970       5,525
  Accumulated depreciation                      (198,215)   (182,982)
                                                 260,015     272,811
Excess of cost over net assets of
    businesses acquired                            9,080       9,331
Other assets                                       9,135       9,261
     Total assets                               $345,419    $384,967

     LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities 
  Accounts payable                              $ 19,615    $ 21,369
  Accrued liabilities                             17,488      34,432
  Accrued remediation and other costs              2,387       1,970
  Income taxes payable                               399         -
  Current maturities of long-term debt             1,728       1,728
     Total current liabilities                    41,617      59,499

Long-term debt                                   131,428     132,453
Accrued remediation and other costs                7,723       9,829
Other liabilities                                  8,531       7,396
Deferred income taxes                             19,144      21,307
 
Commitments and contingent liabilities
  See Part II, Item 1 Legal Proceedings
Shareholders' equity               
  Preferred stock, $1 par value,
     1,000,000 shares authorized; issued and
     outstanding - None 
  Common stock, $1 par value, 120,000,000 shares 
     authorized; issued and outstanding:                   
     March-60,375,811; September-60,375,811       60,376      60,376
  Additional paid-in capital                       4,650       4,650
  Retained earnings                               71,950      89,457
     Total shareholders' equity                  136,976     154,483
     Total liabilities and shareholders' equity $345,419    $384,967

FORM 10-Q                                                     Page 4 of 8


                  ROLLINS ENVIRONMENTAL SERVICES, INC.
                  CONSOLIDATED STATEMENT OF CASH FLOWS
                             ($000 Omitted)



                                                    Six Months Ended 
                                                        March 31,    
                                                    1997        1996

Cash flows from operating activities:
  Net loss                                        $(17,507)  $(16,234)
  Adjustments to reconcile net loss to net cash
    used in operating activities:
    Expenditures charged to accrued remediation 
      and other costs                               (1,689)    (1,537)
    Depreciation and amortization                   16,161     16,362
    Changes in assets and liabilities:
      Current and deferred income taxes              5,810        728
      Accounts receivable                            6,366        508 
      Accounts payable and accrued liabilities     (18,698)    (6,675)
      Other, net                                     6,064      1,423 
    Net cash used in operating activities           (3,493)    (5,425)
            
Cash flows from investing activities:
  Purchase of property and equipment                (3,101)    (5,788)
  Proceeds from sale of equipment                      -          119
    Net cash used in investing activities           (3,101)    (5,669)

Cash flows from financing activities:
  Repayment of long-term debt                       (1,025)      (984)
    Net cash used in financing activities           (1,025)      (984)
  
Cash and cash equivalents:
Net decrease in cash and cash equivalents           (7,619)   (12,078)

  Beginning of period                               27,231     38,691
  End of period                                   $ 19,612   $ 26,613
                               
Supplemental information:

  Interest paid                                   $  4,531   $  4,862
  Income taxes recovered                          $(16,008)  $ (9,880)




<PAGE>
FORM 10-Q                                                     Page 5 of 8

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

Results of Operations:  Six Months Ended March 31, 1997 vs. Six Months
Ended March 31, 1996

     Revenues decreased by $14,230,000 (11.8%) to $105,937,000 from the
$120,167,000 reported last year.  Incineration revenues decreased by
$9,580,000, which was the result of higher incineration volumes processed
at lower average prices.  Transportation, landfill and other revenues
decreased by $4,650,000 which primarily was the result of the expiration of
a large disposal contract with one customer in December 1996.  The
Company's incineration revenues continue to be adversely affected by
industry-wide overcapacity and intense price competition.

     Operating expenses decreased by $8,885,000 (8.3%) to $98,112,000 from
the $106,997,000 reported last year.  The decrease was the result of lower
transportation, insurance and maintenance costs offset in part by higher
costs related to the increased incineration volumes and the use of
subcontractors to dispose of various waste streams outside the Company's
permitted capabilities.  Operating expenses as a percentage of revenues
increased to 92.6% in 1997 from 89.0% in 1996.

     Depreciation expense for the six months ended March 31, 1997 was
essentially the same as last fiscal year.

     Selling and administrative expenses decreased $2,663,000 (14.8%).  The
decrease is attributed to the continued integration of various acquisitions
into the existing business and continued Company-wide costs containment
efforts.  As a percentage of revenues, selling and administrative expenses
decreased to 14.4% in 1997 from 14.9% in 1996.

     Interest expense decreased by $312,000 (6.7%) primarily as the result
of the reduction in long-term debt from the same period last year.

     The effective rates of income tax benefit for the six months ended
March 31, 1997 and 1996 were 36.8% and 36.1%, respectively.

Results of Operations:  Quarter Ended March 31, 1997 vs. Quarter Ended
March 31, 1996.

     Revenues decreased by $12,178,000 (20.7%) to $46,553,000 from the
$58,731,000 reported last year.  Incineration revenues decreased by
$7,116,000 which was the result of lower incineration volumes processed at
lower average prices.  Transportation, landfill and other revenues
decreased by $5,062,000 which was the result of lower incineration volumes
and the expiration of a large disposal contract with one customer in
December 1996.  The Company's incineration revenues continue to be
adversely affected by industry-wide overcapacity and intense price
competition.




FORM 10-Q                                                     Page 6 of 8

     Operating expenses decreased by $5,294,000 (9.8%) to $48,965,000 from
the $54,259,000 reported last year.  The decrease in operating expense
reflects the lower levels of incineration volumes and lower transportation
costs.  Operating costs as a percentage of revenues increased to 105.2% in
1997 from 92.4% in 1996 mainly due to the large component of the Company's
cost structure which is fixed.

     Depreciation expense decreased $636,000 (7.6%) mainly due to a
decrease in the amortization of airspace which resulted from lower landfill
revenues.

     Selling and administrative expenses decreased by $1,296,000 (14.9%). 
The decrease is attributed to the continued integration of various
acquisitions into the existing business and continued Company-wide costs
containment efforts.  As a percentage of revenues, selling and
administrative expenses increased to 15.9% in 1997 from 14.8% in 1996
mainly due to the lower levels of revenues.

     Interest expense decreased by $185,000 (8.0%) primarily as a result of
the reduction in long-term debt from the same period last year.

     The effective rates of income tax benefit for the three months ended
March 31, 1997 and 1996 were 37.5% and 36.2%, respectively.

Liquidity and Capital Resources

     The cash used in operations during the first six months of fiscal 1997
is not representative of the Company's expectations for future quarters due
to the unfavorable working capital changes experienced.  The decrease in
cash was mainly due to RES (NJ) and the EPA settling the outstanding claims
with the Bridgeport Rental & Oil Services Superfund Site for a payment of
$13,035,000.

     During the first six months of fiscal 1997 and 1996, expenditures for
property and equipment were $3,101,000 and $5,788,000, respectively.  In
addition, expenditures on remediation projects at the Company's facilities
for the first six months of fiscal 1997 and 1996 were $1,689,000 and
$1,537,000, respectively.  The Company financed its capital and remediation
expenditures from available cash resources which included income tax
refunds.

     The Company's projected capital and remediation expenditures for the
remainder of fiscal 1997 are approximately $3,864,000.  Capital and
remediation expenditures are expected to be financed from available cash
balances.

     For the remainder of fiscal year 1997, the Company anticipates lower
operating cash requirements as it realizes the benefits of cost reductions
and a lower capital spending.  The Company believes that existing cash
balances and cash expected to be generated from operations will be
sufficient to meet the Company's cash requirements for the remainder of
fiscal 1997.  For further details, see pages 8 and 9 of the Company's 1996
Annual Report on Form 10-K.


FORM 10-Q                                                     Page 7 of 8


                       PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

   There have been no additional significant legal proceedings nor any
material changes in the legal proceedings reported on pages 4 and 5 of the
Company's Annual Report on Form 10-K for the fiscal year ended September
30, 1996.

Item 2.  Changes in Securities

   None.

Item 3.  Defaults Upon Senior Securities

   None.

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

   The Company's Annual Meeting of Shareholders was held on January 31,
1997.  With regard to Proposal No. 1 of the NOTICE OF ANNUAL MEETING OF
SHAREHOLDERS TO BE HELD ON JANUARY 31, 1997 to elect three Class III
Directors to the Board of Directors, Nicholas Pappas, John W. Rollins and
Don S. Stansberry, Jr. were elected.  At the meeting, 48,263,782,
48,259,102 and 48,564,299 affirmative votes were cast for Nicholas Pappas,
John W. Rollins and Don C. Stansberry, Jr., respectively.  There were no
votes cast against any nominee and 4,075,968, 4,080,648 and 3,775,451 votes
were withheld from Nicholas Pappas, John W. Rollins and Don C. Stansberry,
Jr., respectively.

Item 5.  Other Information

   None.

Item 6.  Exhibits and Reports on Form 8-K

   (a)    Exhibit 3(ii) - By-Laws.
          By-Laws of Rollins Environmental Services, Inc. as last amended
          on January 31, 1997

   (b)    Reports on Form 8-K.
          On January 6, 1997, a report on Form 8-K was filed reporting that
          Rollins Environmental Services, Inc. ("Rollins") had entered into
          a letter of intent with Laidlaw, Inc. (("Laidlaw") which provides
          for the sale to Rollins of 100% of the outstanding stock of the
          United States and Canadian subsidiaries conducting the hazardous
          and industrial waste operations of Laidlaw.  The full text of the
          letter of intent was disclosed.






FORM 10-Q                                                     Page 8 of 8

   (b)    Reports on Form 8-K (continued).
          On February 7, 1997, a report on Form 8-K was filed reporting
          that on February 6, 1997, Rollins Environmental Services, Inc.
          had entered into a stock purchase agreement with Laidlaw, Inc.,
          among others, which provides for the sale to Rollins of 100% of
          the outstanding stock of the United States and Canadian
          subsidiaries conducting the hazardous and industrial waste
          operations of Laidlaw.  The stock purchase agreement among
          Rollins Environmental Services, Inc., Laidlaw, Inc. and Laidlaw
          Transportation, Inc. dated as of February 6, 1997 was filed as
          Exhibit 2.1 to the Form 8-K.


                               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.

   DATE:    May  9, 1997       ROLLINS ENVIRONMENTAL SERVICES, INC.   
                                             (Registrant)


                              /s/ John V. Flynn, Jr.                
                              John V. Flynn, Jr.
                              President and Chief Operating Officer


                              /s/ Frank H. Minner, Jr.              
                              Frank H. Minner, Jr.
                              Group Vice President-Finance and Treasurer 
                              Chief Financial Officer   
                              Chief Accounting Officer