Page 1 of 7

                              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          December 31, 1996               

                                   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 December 31, 1996 was 60,375,811.<PAGE>

FORM 10-Q                                                     Page 2 of 7

                     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 ended December 31, 1996 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
                                                      December 31,   
                                                  1996         1995

Revenues                                         $59,384      $61,436

Operating expenses                                49,147       52,738
Depreciation                                       8,114        7,530
Selling and administrative expenses                7,847        9,214
Interest expense                                   2,236        2,363

                                                  67,344       71,845

Loss before income tax benefit                    (7,960)     (10,409)

Income tax benefit                                (2,792)      (3,736)

Net loss                                         $(5,168)     $(6,673)

Loss per share                                   $  (.09)     $  (.11)

Average common shares and equivalents
  outstanding (000)                               60,376       60,421

Dividends paid per common share                     None        None

<PAGE>
FORM 10-Q                                                     Page 3 of 7

                  ROLLINS ENVIRONMENTAL SERVICES, INC.
                       CONSOLIDATED BALANCE SHEET
                             ($000 Omitted)

                                                December 31,  September 30,
               ASSETS                               1996        1996  
Current assets
  Cash and cash equivalents (includes
    short-term investments of: 
    $9,277-December; $18,166-September)           $ 11,768    $ 27,231
  Accounts receivable, net                          44,028      42,302
  Income taxes recoverable                           3,880       7,059
  Deferred income taxes                              4,901       5,616
  Other current assets                               8,985      11,356
     Total current assets                           73,562      93,564

Property and equipment, at cost     
  Land                                              31,324      31,324
  Buildings                                         76,082      75,661
  Equipment and vehicles                           303,171     303,305
  Site improvements                                 40,763      39,978
  Construction in progress                           5,385       5,525
  Accumulated depreciation                        (190,594)   (182,982)
                                                   266,131     272,811
Excess of cost over net assets of
    businesses acquired                              9,205       9,331
Other assets                                         8,718       9,261
     Total assets                                 $357,616    $384,967

     LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities 
  Accounts payable                                $ 17,909    $ 21,369
  Accrued liabilities                               21,573      34,432
  Accrued remediation and other costs                2,369       1,970
  Current maturities of long-term debt               1,238       1,728
     Total current liabilities                      43,089      59,499

Long-term debt                                     131,918     132,453
Accrued remediation and other costs                  8,369       9,829
Other liabilities                                    8,143       7,396
Deferred income taxes                               16,782      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:                   
     December-60,375,811; September-60,375,811      60,376      60,376
  Additional paid-in capital                         4,650       4,650
  Retained earnings                                 84,289      89,457
     Total shareholders' equity                    149,315     154,483
     Total liabilities and shareholders' equity   $357,616    $384,967

<PAGE>
FORM 10-Q                                                     Page 4 of 7

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



                                                         Quarter Ended 
                                                          December 31,  
                                                        1996       1995   

Cash flows from operating activities:
  Net loss                                            $(5,168)   $(6,673)
  Adjustments to reconcile net loss to net cash
    provided by (used in) operating activities:
    Expenditures charged to accrued remediation 
      and other costs                                  (1,061)    (1,160)
    Depreciation and amortization                       8,246      7,781
    Changes in assets and liabilities:
      Current and deferred income taxes                  (301)    (3,672)
      Accounts receivable                              (1,726)    (1,704)
      Accounts payable and accrued liabilities        (16,319)      (390)
      Other, net                                        3,325        (30)
    Net cash used in operating activities             (13,004)    (5,848)
            
Cash flows from investing activities:                            
  Purchase of property and equipment                   (1,434)    (2,687)
  Proceeds from sale of equipment                         -            4
    Net cash used in investing activities              (1,434)    (2,683)

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             (15,463)    (9,515)

  Beginning of period                                  27,231     38,691
  End of period                                       $11,768    $29,176
                               
Supplemental information:
  Interest paid                                       $   999    $ 1,363
  Income taxes (recovered) paid                       $(2,491)   $    64 


   
<PAGE>
FORM 10-Q                                                     Page 5 of 7

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

Results of Operations:  Three Months Ended December 31, 1996 vs. Three
Months Ended December 31, 1995

     Revenues decreased by $2,052,000 (3.3%) to $59,384,000 from the
$61,436,000 reported last year.  The decrease in revenues was the result of
higher incineration volumes processed at lower average prices and lower
transportation revenues offset in part by an increase in landfill and other
service revenues.  The Company's incineration revenues continue to be
adversely affected by industry-wide overcapacity and intense price
competition.

     Operating expenses decreased by $3,591,000 (6.8%) primarily as the
result of lower transportation, payroll, 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.

     Depreciation expense increased by $584,000 (7.8%) due mainly to an
increase in amortization of airspace for a completed landfill cell.

     Selling and administrative expenses decreased by $1,367,000 (14.8%). 
The decrease is attributable 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 13.2% in 1996 from 15.0% in 1995.

     Interest expense decreased by $127,000 (5.4%) as a result of the
reduction in long-term debt from the same period last year.

     The effective rate of income tax benefit for the quarters ended
December 31, 1996 and 1995 were 35.1% and 35.9%, respectively.

Liquidity and Capital Resources

     The cash used in operations during the first fiscal quarter of 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 fiscal quarter of 1997 and 1996, expenditures for
property and equipment were $1,434,000 and $2,687,000, respectively.  In
addition, expenditures on remediation projects at the Company's facilities
during the first fiscal quarter of 1997 and 1996 were $1,061,000 and
$1,160,000, respectively.  The Company financed its capital and remediation
expenditures during the first fiscal quarter of 1997 from available cash
resources.

     The Company's capital and remediation expenditures for the remainder
of fiscal 1997 are projected to be approximately $5,636,000.  Capital and
remediation expenditures are expected to be financed from available cash
balances, income tax refunds and proceeds from the sale of certain
nonstrategic assets.

FORM 10-Q                                                     Page 6 of 7

     For the remainder of fiscal year 1997, the Company anticipates lower
operating cash requirements as it realizes the benefits of cost reductions
and lower capital spending.  The Company believes that existing cash
balances, cash expected to be generated from operations, which includes
income tax refunds, and proceeds from the sale of certain nonstrategic
assets 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.

                       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

     None.

Item 5.  Other Information

     None.

Item 6.  Exhibits and Reports on Form 8-K

     (a)  Exhibits - none.

     (b)  Reports on Form 8-K
          No reports on Form 8-K were filed by the Company during the
quarter ended December 31, 1996.  However, on January 6, 1997, the Company
filed a report on Form 8-K wherein under Item 5 - Other Events the full
text of the letter of intent between Laidlaw, Inc. and the Company,
providing for the sale to the Company of 100% of the hazardous and
industrial waste operations of Laidlaw, was reported.
<PAGE>
FORM 10-Q                                                     Page 7 of 7
                               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:    January 24, 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