U.S. Securities and Exchange Commission
                       Washington, D.C.  20549

                               Form 10-QSB

                               (Mark One)

       [ X ]  QUARTERLY REPORT PURSUANT SECTION 13 OR 15(d) OF THE
                    SECURITIES EXCHANGE ACT OF 1934
               For the quarterly period ended September 30, 1996

       [   ]   TRANSITION REPORT PURSUANT SECTION 13 OR 15(d) OF THE
                   SECURITIES EXCHANGE ACT OF 1934
          For the transition period from __________  to  __________

                      Commission file number 33-82188

                Atlas-Energy for the Nineties-Public #3 Ltd.
               (Name of small business issuer in its charter)

       Pennsylvania                               25-1758822
(State or other jurisdiction of       ( I.R.S. Employer identification No.)
incorporated or organization)


           311 Rouser Road, Moon Township, Pennsylvania  15108
          (Address of principal executive offices)   (Zip Code)

                     Issuer's telephone (412) 262-2830

(Former name, former address and former fiscal year, if changed since last
report)

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

                                  PART I

Item 1.  Financial Statements

     The unaudited Financial Statements of Atlas-Energy for the Nineties-
Public #3 Ltd. (the "Partnership") for the period January 1, 1996 to
September 30, 1996 follow.

Item 2.  Description of Business

     The Partnership distributed its sixth quarterly production revenue on
September 15, 1996 from production of natural gas from the Partnership's 25.5
net wells which were on line for the production period of January 1
through June 30, 1996.

     Net production revenue of $ 901,265 includes pumpers fees($275 per month
/well, while expenses for this period include $75 per month/well for
administrative costs.
     
     For the next twelve months management believes that the Partnership
has adequate capital.  The Partnership's commitments pursuant to the
drilling and operating agreement are expected to be fulfilled through
revenues generated from the sale of gas and oil.

                                  PART II

Item 1.  Legal Proceeding
         None

Item 2.  Changes in Securities
         None

Item 3.  Defaults Upon Senior Securities
         None

Item 4.  Submission of Matters to a Vote of Securities Holders
         None

Item 5.  Other Matters
         None

Item 6.  Reports on Form 8-K
         The registrant filed no reports on Form 8-K during the last
         quarter of the period covered by this report.


                       UNAUDITED FINANCIAL STATEMENTS

                ATLAS-ENERGY FOR THE NINETIES--PUBLIC #3 LTD.
                   A PENNSYLVANIA LIMITED PARTNERSHIP
                         BALANCE SHEET (Unaudited)
                            September 30, 1996
<TABLE>

<S>                                                       <C>           <C>          <S>
ASSETS                                                    9/30/96       12/31/95     Increase
                                                                                     Decrease 


Cash                                                      $   64,405    $    22,996  $   41,409
Accounts receivable                                          231,955        387,590    (155,635)   
Oil and gas drilling contracts and leases(net)             4,358,883      5,071,944    (713,061) 
Organizational and Syndication costs                         644,799        750,280    (105,481)
                                                          ===========
               TOTAL ASSETS                               $5,300,043    $ 6,232,810  $ (932,767)




LIABILITIES AND PARTNERS' CAPITAL


Accounts payable                                          $    9,870    $     8,313  $    1,557 
Partners' capital                                          5,290,172      6,224,497    (934,325)
                                                          ===========   ===========  ===========
TOTAL LIABILITIES AND PARTNERS CAPITAL                    $5,300,043      6,232,810    (932,767)

------------------------------------------------------------------------------------------------
</TABLE>

                       STATEMENT OF INCOME - (UNAUDITED)

                ATLAS-ENERGY FOR THE NINETIES--PUBLIC #3 LTD.
                   A PENNSYLVANIA LIMITED PARTNERSHIP

                 For the nine months ended September 30, 1996




     REVENUE
Natural gas sales                                         $1,194,432
Less direct operating costs:
Royalty interest                                             191,596
Other                                                        101,571
                                                           ----------
   Total Operating Cost                                      293,167 
                                                           ----------
Net Production revenues                                      901,265
Interest Income                                                8,936
                                                           ----------
Total Revenue                                                910,201


     EXPENSES
Depletion and depreciation of oil and gas wells and leases   713,061
Amortization of organizational and syndication costs         105,481
General and administrative fees                               16,043
Professional fees                                              9,251
Other                                                            950
                                                           ----------
Total Expenses                                               844,786
                                                           ----------

     NET  INCOME (LOSS)                                     $ 65,414
                                                           ==========
----------------------------------------------------------------------------

                       STATEMENT OF CASH FLOWS - (UNAUDITED)

                ATLAS-ENERGY FOR THE NINETIES--PUBLIC #3 LTD.
                   A PENNSYLVANIA LIMITED PARTNERSHIP

                  For the nine months ended September 30, 1996


Cash flows from operating activities
Net Income                                              $     65,414
Adjustments to reconcile net income to net cash
provided by operating activities:
Depletion and depreciation                                   713,061
Amortization                                                 105,481
Decrease in accounts receivable                              155,635
Increase in accounts payable                                   1,557
                                                           -----------
Net cash provided by operating activities                  1,041,148

Cash flows used in financing activities:
Capital Distributions                                      ( 999,740)
                                                           -----------
Net Increase(Decrease) in Cash                                41,409

Cash at beginning of period                                   22,996
                                                           -----------
Cash at September 30, 1996                              $     64,405
----------------------------------------------------------------------------

     STATEMENT OF CHANGES IN PARTNERS' CAPITAL ACCOUNTS - (UNAUDITED)

                ATLAS-ENERGY FOR THE NINETIES--PUBLIC #3 LTD.
                   A PENNSYLVANIA LIMITED PARTNERSHIP

              For the nine months ended September 30, 1996


                                         MANAGING
                                         GENERAL     OTHER
                                         PARTNER     PARTNERS      TOTAL


BALANCE AT JANUARY 1, 1996             $  967,906   $5,256,591 $6,224,497

Participation in revenue and expenses:

Net production revenues                   225,316      675,949    901,265
Interest Income                             2,234        6,702      8,936
Depletion and depreciation                (18,581)    (694,480)  (713,061)
Amortization                             (105,481)           0   (105,481)
Other costs                                (6,561)     (19,683)   (26,244)
                                       ----------- ------------ -----------
Net income  (loss)                         96,927      (31,512)    65,415

Distributions                            (250,036)    (749,704)  (999,740)
                                       ----------- ------------ -----------
BALANCE AT SEPTEMBER 30 , 1996         $  814,797   $4,475,375 $5,290,172

                See notes to unaudited financial statements.
----------------------------------------------------------------------------
                 NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

                ATLAS-ENERGY FOR THE NINETIES--PUBLIC #3 LTD.
                   A PENNSYLVANIA LIMITED PARTNERSHIP

                            September 30, 1996



1.      INTERIM FINANCIAL STATEMENTS

     The financial statements as of September 30, 1996 for the nine months
then ended have been prepared by the management of the Partnership without
audit, pursuant to the rules and regulations of the Securities and Exchange
Commission.  Certain information and footnote disclosures normally included
in financial statements prepared in accordance with generally accepted
accounting principles have been omitted pursuant to such rules and
regulations, although the Partnership believes that the disclosures are
adequate to make the information presented not misleading.  These financial
statements should be read in conjunction with the audited December 31, 1995
financial statements.  In the opinion of management, all adjustments
(consisting of only normal recurring accruals) considered necessary for
presentation have been included.

2.      SIGNIFICANT ACCOUNTING POLICIES

     The Partnership uses the successful efforts method of accounting for
oil and gas activities.  Costs to acquire mineral interests in oil and gas
properties, drill and equip wells and organizational and syndication costs
are capitalized.  Oil and gas properties are periodically assessed and when
unamortized costs exceed expected future net cash flows, a loss is
recognized by a charge to income.

     Capitalized costs are expensed at unit cost rates calculated annually
based on the estimated volume of recoverable gas and the related costs.


                             SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.

Atlas-Energy for the Nineties--Public #3 Ltd.

By   (Signature and Title):                     Atlas Resources, Inc.,
                                                Managing General Partner

By   (Signature and Title):                  /s/ James R. O'Mara
                                                 James R. O'Mara
                       President, Chief Executive Officer and a Director

Date:  November 15, 1996

In Accordance with the Exchange Act, this report has been signed by the
following persons on behalf of the registrant and in the capacities and on
the dates indicated.

By  (Signature and Title):                   /s/ James R. O'Mara
                                                 James R. O'Mara
                       President, Chief Executive Officer and a Director

Date:  November 15, 1996

By (Signature and Title):                   /s/ Tony C. Banks
                                                Tony C. Banks
                              Vice President and Chief Financial Officer

Date:  November 15, 1996

                             SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.

Atlas-Energy for the Nineties--Public #3 Ltd.

By   (Signature and Title):     Atlas Resources, Inc.
                                Managing General Partner

By   (Signature and Title):     /s/ James R. O'Mara
                                    James R. O'Mara
                       President, Chief Executive Officer and a Director

Date:  November 15, 1996

In Accordance with the Exchange Act, this report has been signed by the
following persons on behalf of the registrant and in the capacities and on
the dates indicated.

By  (Signature and Title):      /s/ James R. O'Mara
                                    James R. O'Mara
                       President, Chief Executive Officer and a Director

Date:   November 15, 1996

By (Signature and Title):       /s/  Tony  C. Banks
                                     Tony C. Banks
                              Vice President and Chief Financial Officer

Date:   November 15, 1996