United States Securities and Exchange Commission
                             Washington, D.C. 20549

                                   Form 10-QSB
                                   -----------

(Mark One)
   [X]      QUARTERLY  REPORT PURSUANT TO SECTION 13 OR 15(d) OF
             THE SECURITIES EXCHANGE ACT OF 1934
               For the quarterly period ended September 30, 2002.

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

                        Commission file number : 0-30738

               Environmental Oil Processing Technology Corporation
             -------------------------------------------------------
                 (Exact name of business issuer in its charter)

         Utah                                                 82-0520055
------------------------------                            -------------------
State or other jurisdiction of                            (I.R.S. Employer
incorporation or organization)                            Identification No.)

 2801 Brandt Avenue, Nampa, Idaho                                      83687
--------------------------------------------------------------------------------
(Address of principal executive offices)                              (Zip Code)

Issuer's telephone number:     (208)-463-0063           Fax:     (208) 463-7601
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
                                (Former Address)

The number of shares of common stock  outstanding  as of September  30, 2002, is
75,967,353.

         Transitional Small Business Disclosure Format. Yes [ ], No X [ ]



                                       1

<PAGE>




                         PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

         The following financial statements are filed as part of this report:

         The Consolidated  Financial Statements of the Company for the three and
nine months ended September 30, 2002 and 2001.

         The accompanying  consolidated  financial statements have been prepared
by the Company  without  audit.  In the opinion of management,  all  adjustments
which include only normal recurring  adjustments necessary to present fairly the
financial  position,  results of operations and cash flows at September 30, 2002
and 2001 and for all periods presented have been made.

         Certain  information  and  footnote  disclosures  normally  included in
consolidated financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted. It is suggested that these
condensed  consolidated  financial  statements be read in  conjunction  with the
financial  statements and notes thereto  included in the Company's  December 31,
2001, audited consolidated  financial statements.  The results of operations for
the periods ended September 30, 2002 and 2001 are not necessarily  indicative of
the operating results for the full years.

Item 2.  Management's Discussion and Analysis:

         Results of Operations:

         During the first nine months of 2002 the Company focused its activities
on developing its used oil  refineries.  The Company  presently has two refinery
projects i.e. the pilot plant in Nampa, Idaho, and the Reno Project presently in
development which will be operated by a wholly owned subsidiary EOPT Refining of
Nevada, Inc.

         The Nampa plant became  operational  in the second quarter of 2001 with
the production of diesel,  naphtha and asphalt residuum,  all of which were sold
to local  wholesalers.  During the last several  months the plant has been under
improvement  modification  which  includes  a newly  engineered  and  fabricated
refining column and support equipment. The modifications are on hold pending the
Company  receiving the financing  necessary  for their  completion.  The Company
estimates that it needs $1,500,000 to complete the modifications.  This includes
the cost of equipment to be  installed,  to pay off its accounts  payable and to
cover the negative  cash flow expected  while the equipment is being  installed.
Management has not  identified the source of these funds and  accordingly it can
not be estimated  when the plant will begin  operating.  The  modifications  are
engineered  to improve the  quality and  quantity  of  production  of  petroleum
products.  When the modified plant is operating Management  anticipates having a
positive cash flow from the Nampa operations.

                                       2
<PAGE>

         The Reno Project consists of completing land development on 20 acres of
land which was originally  purchased for used oil refining  plants to be located
on 15 acres and a co-generation  plant for electricity on the remaining 5 acres.
The site  preparation is essentially  completed and the  engineering  and design
work for two  refining  plants is in  advanced  stages  and  presently  on hold.
Engineering  for the Reno  project is being  completed by PC&E of St.  Louis,  a
subsidiary of Emerson  (formerly  Emerson Electric) and Redd Engineering of Salt
Lake City, Utah.  Approximately  $30,000,000 is needed to construct,  locate and
start up the two plants which could be operating by the third quarter of 2003 if
financing is soon obtained.  The remaining 5 acres of the  development is "fully
permitted" for the  production of  electricity  and is currently for sale for in
excess of $20,000,000 with several parties expressing interest.

         During the second  quarter of 2001 the Company  acquired  the assets of
Artesian Oil Recovery,  Inc. in Oakland  California for the sum of $485,000,  to
provide oil for the Reno Project. Pending completion of the Reno refineries, the
oil is being trucked to the Nampa refinery or sold to other local users.

         The  settlement  of the  litigation  involving  the  separation  of the
subsidiary PDI was completed in March of 2002. Among other matters,  the Company
recovered and canceled  4,000,000  shares of its common stock from the owners of
PDI.  The  canceled  shares  were  valued  based on the net  assets in excess of
liabilities of PDI. The gain on the disposal of PDI of $294,746 recoups the loss
on the net assets in excess of liabilities  previously  recognized in the period
ending  September  30, 2001.  Accordingly,  the financial  statements  have been
restated to reflect the discontinued PDI operations.

         Operations  in the first nine months of 2002  resulted in  consolidated
revenues  of  $1,189,213  compared to $877,564 in the first nine months of 2001.
Consolidated revenues increased by 36% over the nine months of 2001. The Company
had costs of sales of $243,531  during the nine months ended September 30, 2002,
compared to $166,805  for the same period of 2001.  These costs are for the used
oil purchased,  processed and sold at the Nampa, Idaho and Artesian  facilities.
EOPT's gross margin was 80% of sales in 2002 compared to 81% in 2001.

     Selling,  general and  administrative  expense  for the nine  months  ended
September 30, 2002,  was  $1,828,757  compared to $1,705,838 for the same period
last year. The Company has stabilized these operating costs. The increase is due
to an expense of  $260,157  which was  recorded  for the value of stock  options
issued  to  non-employees.  Excluding  this non  cash  expense  these  operating
expenses  decreased by $137,238.  The Company's  business is labor intensive and
its largest  expense is payroll.  Included  in  consulting  expense for the nine
months ended  September 30, 2001, is $9,372,000  which is the value of 1,200,000
shares of common stock issued for services to a consultant  during January 2001.
Without the value of the shares issued to the consultant, consulting expense for
the first nine months of 2001 would have been  $52,855  compared to $284,157 for
the same nine months of 2002.  The Company has also  stabilized  its  consulting
costs.


                                       3
<PAGE>


         The  Company's  net  loss  from  operations  in the nine  months  ended
September 30, 2002, was $1,346,832 compared to $10,480,306 in the same period of
2001.  Excluding  the value of the shares  issued to the  consultant  in January
2001,  the  Company's  loss for the first  nine  months of 2001  would have been
$1,108,306. The increase of $238,526 was primarily due to the $260,157 which was
recorded as the value of the stock options  issued to non  employees.  Excluding
the $260,157  recorded the current loss would have been $1,086,675 or a decrease
of  $21,631.  The Company  expects its loss to decline in the fourth  quarter of
2002 with the continued growth of Artesian Oil Recovery in Oakland California.

         Operations in the third three months of 2002  resulted in  consolidated
revenues of $460,329  compared to $427,983 in the third three months of 2001, an
increase of $32,346 or 8%. The  increase  was the result of the  acquisition  of
Artesian Oil Gathering.  The Company's  gross margin was 86% in 2002 compared to
88% in 2001.

         Selling,  general and administrative expense for the three months ended
September  30, 2002,  was  $343,445  compared to $456,752 for the same period of
2001. The decrease of $113,307 was the result of management's  cost  containment
efforts.

         Liquidity and Capital Resources.

         The  Company  entered  into a funding  agreement  with a trust  fund to
borrow  $10,500,000 for the  development and expansion of the Company  business.
Some of these funds were used in  designing  and  engineering  the  refining and
production  facility in the Reno Project.  Some of the loan funds have been used
to purchase the real property for the Reno Project,  and the  permitting of some
of the property for  electrical  production.  Through  September  30, 2002,  the
Company  has  incurred  $7,629,129  for the cost of the Reno  Project  including
$1,344,104  expended in the first nine months of 2002. The Company also incurred
$266,605 and $587,973,  in the first nine months of 2002 and 2001,  respectively
on the Nampa,  Idaho facility.  The terms of the funding required the Company to
repay the full  amount  borrowed  in one year  from the date  funds  were  first
received  subject to the lender's option to extend the loan. The lender extended
the loan for an additional  six months to September 23, 2002.  The Company is in
default on the loan and the trust fund has begun  foreclosure  proceedings.  The
loan is secured by  substantially  all of the Company's assets and is guaranteed
by an  officer  and  director  of the  Company.  The  loss of  these  assets  in
foreclosure by the lender would  significantly  impare the Company's  ability to
continue as a going concern.  Management is currently considering its options to
resolve the foreclosure proceeding.

     The Company  generated cash from its operations of $436,778 during the nine
months ended September 30, 2002,  compared to generating cash from operations of
$717,899  for the  corresponding  period in the prior year.  The  difference  of
$281,121 was primarily  due to the net cash used in the operating  losses of the
Company offset by the increase in its accounts  payable and accrued  expenses of
$1,426,460 in 2002 compared to an increase of $1,526,773 of accounts payable and
accrued expenses in 2001.

                                       4
<PAGE>

         The Company's  accounts  receivable  increased by $22,141 from December
31,  2001,  to September  30, 2002,  compared to an increase of $388,229 for the
same  period of 2001.  The  increase  in 2001 was the  result  of the  Company's
expanded oil gathering business with the purchase of Artesian Oil Recovery.

         In 2001 the Company  accumulated  used oil for  processing in the Nampa
facility therefore  inventory levels increased by $105,718 in 2001 compared to a
decrease of $27,943 in the same period of 2002  because the Company sold some of
its used oil while the refinery is being refitted.

         The Company paid $25,892 of debt to banks in 2002  compared to $533,206
in 2001.  The  Company  also  repaid  related  parties  cash of $491,500 in 2001
compared to $6,700 in 2002.  The Company  borrowed  $122,035 from an officer and
director  and $46,068 from  unrelated  parties in the first nine months of 2002.
The Company  borrowed $94,990 from related parties and $6,000,000 from unrelated
parties during the same periods of 2001. The Company repaid  $210,000 of related
party debt in 2002 through the issuance of 2,333,333 shares of its common stock.
It also issued  535,714  shares to  consultants on exercise of their options and
for conversion of accounts payable of $187,500 and an additional  178,190 shares
to collectors for used oil valued at $23,615.

         The Company issued 9,600,000 shares to an officer and director upon the
exercise of his options at $0.17 per share for  3,600,000  shares and $0.085 per
share for 6,000,000  shares.  The officer and director gave the Company his note
for the exercise of the options.  The notes total $1,122,000,  are unsecured and
bear  interest at 6% per annum.  The officer  returned  6,000,000  shares in the
third quarter of 2002 for the  cancellation of a $510,000 and $11,737 of accrued
interest.

         The Company has recorded a gain from  discontinued  operations in 2002,
in the amount of $294,746  related to the PDI  separation  which is the value of
the Company's 4,000,000 shares of common stock recovered. The Company had a loss
of $2,579,600  for the same period of 2001 from the  operations  and disposal of
PDI.

         The Company is seeking  funding for the  completion of the Reno Project
and to meet its operating  costs. The Company is also  investigating,  reviewing
and  considering  additional  used oil  gathering  facilities as well as seeking
financing to acquire the same. No financing  agreements  have been formalized as
of this time and there is no assurance  that such funds will be  available  when
needed or if available will be under terms acceptable to the Company.

Forward Looking Statements.

         The  foregoing   paragraphs  in  this  MD&A  concerning  the  activity,
operations and plans of the Company, and particularly the planned development of
the Reno Project and the future of the "permitted  property" are forward-looking
statements as well as any other  statements  that are not historical in context.
The statements  provided are based on information  available to management as of
the date hereof,  and the Company assumes no obligation to revise or update such
forward-  looking  statements.  Readers are cautioned that such  forward-looking
statements  involve risk and  uncertainties  that may cause the Company's actual
results to differ materially from such forward- looking statements.

                                       5
<PAGE>


Item 3. Controls and Procedures.

         (a) Under the supervision and with the participation of our management,
including our  principal  executive  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"),  within  90  days  of the  filing  date of  this  report.  Based  on this
evaluation,  our  principal  executive  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  significant  changes  (including  corrective
actions with regard to significant  deficiencies or material  weaknesses) in our
internal  controls or in other  factors  that could  significantly  affect these
controls  subsequent to the date of the  evaluation  referenced in paragraph (a)
above.

                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings.

         EOPT v. LM  Alternative:  On September 24, 2001, EOPT filed a complaint
against LM Alternative, Inc. ("LMA") in the United States District Curt, Central
District of California, Eastern Division, Case No. EDCV 01-0699 VAP (SGLx). EOPT
seeks a money judgement against LMA. EOPT anticipates that in addition to filing
an Answer  denying EOPT's  claims,  LMA will file a  Counterclaim  seeking money
damages  against  EOPT for breach of  contract.  The case  arises as a result of
orders placed by EOPT for electrical generators, and the alleged default by LMA.
The parties have agreed on a dismissal  without  prejudice  and a moratorium  on
refiling for six months.

         American Moistening Company,  Inc v. EOPT: American Moistening Company,
Inc.  filed a Complaint  in North  Carolina in the  Superior  court  Division of
Mecklenburg  County on February 25, 2002 and seeks a money judgment against EOPT
for $165,840 for services and goods performed or manufactured. EOPT timely filed
an answer  asserting  that EOPT canceled its purchase order and that there is no
liability.  Opposing counsel is requesting a settlement proposal.  Both EOPT and
AMCO are seeking attorneys' fees and costs of litigation against the other.

         Lewis & Clark College v. EOPT:  Lewis & Clark College filed a complaint
on October 28,  2002,  in the  District  Court of the Third  Judicial  District,
Canyon  County,  Idaho,  for the  appointment  of a receiver  pending  execution
against  collateral  under  pending  foreclosure   proceedings  for  $10,500,000
principal  plus  interest  and costs.  EOPT was served on November 4, 2002,  and
intends to timely  respond to the  pleadings  on or before  November  24,  2002,
raising available legal defenses.

                                       6
<PAGE>



Item 2.           Changes in Securities.

         (a)      None
         (b)      None
         (c)      None
         (d)      N/A

Item 3.           Defaults Upon Senior Securities.    None

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

Item 5.           Other Information.

         In 2001  EOPT  received  the last of the  required  Federal  and  State
permits and approvals for construction and operation of an electrical production
facility on 5 acres of the Reno Project.  These  permits are the Federal  Energy
Regulatory  Commission's  ("FERC")  authorization to sell energy at market based
rates, the Nevada Public Utility Commission Utility  Environmental  Planning Act
Permit, the State of Nevada Department of Conservation and Natural Resources Air
Quality  operating  Permit,  and the Storey County Special Use Permit.  EVOP has
decided to not pursue the  production  of  electricity  at this time on the Reno
Project,  and is presently  negotiating  for the sale of the applicable 5 acres.
The EOPT property is near the entrance to the Tahoe-Reno  Industrial Center, one
of the largest industrial zoned developments in the United States.

         Statements  in  this  report  that  are  not  strictly  historical  are
forward-looking   statements.  The  Company  makes  these  statements  based  on
information  available  to it as of the date of this  report  and it  assumes no
responsibility to update or revise such forward-looking statements.  Editors and
investors are cautioned that such  forward-looking  statements  involve risk and
uncertainties  that may cause the Company's actual results to differ  materially
from such forward- looking statements.

Item 6.           Exhibits and Reports on Form 8-K.

                  (a)   No exhibits.

                  (b)   No Form 8-K filed during the third quarter of 2002.


                                       7
<PAGE>

                                   SIGNATURES
                                   ----------

         In accordance  with  requirements  of the Exchange Act, the  registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                            Environmental Oil Processing Technology Corporation
                                          (Registrant)

Date: November 13, 2002     By  /s/  N. Tod Tripple
                                ----------------------------------------
                                      N. Tod Tripple, President and CEO



                                  CERTIFICATION

I, N. Tod Tripple, certify that:

     1. I have reviewed this  quarterly  report on Form 10-QSB of  Environmental
Oil Processing Technology Corporation;

     2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

     3. Based on my knowledge,  the financial  statements,  and other  financial
information included in this quarterly report, fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

     4. The  registrant's  other  certifying  officers and I are responsible for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

         a) designed  such  disclosure  controls and  procedures  to ensure that
material  information  relating to the  registrant,  including its  consolidated
subsidiaries, is made known to us by others within those entities,  particularly
during the period in which this quarterly report is being prepared;

         b) evaluated the effectiveness of the registrant's  disclosure controls
and  procedures  as of a date  within 90 days prior to the  filing  date of this
quarterly report (the "Evaluation Date"); and

         c)  presented  in this  quarterly  report  our  conclusions  about  the
effectiveness of the disclosure  controls and procedures based on our evaluation
as of the Evaluation Date;

     5. The registrant's other certifying  officers and I have disclosed,  based
on our most  recent  evaluation,  to the  registrant's  auditors  and the  audit
committee  of  registrant's  board  of  directors  (or  persons  performing  the
equivalent functions):

         a) all significant  deficiencies in the design or operation of internal
controls  which  could  adversely  affect  the  registrant's  ability to record,
process,  summarize  and  report  financial  data  and have  identified  for the
registrant's auditors any material weaknesses in internal controls; and

         b) any fraud,  whether or not  material,  that  involves  management or
other  employees  who  have a  significant  role  in the  registrant's  internal
controls; and

     6. The registrant's other certifying  officers and I have indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date:    November 13, 2002
                                        /s/ N. Tod Tripple
                                        -------------------------------------
                                            N. Tod Tripple, President and CEO



                                       8
<PAGE>
                          ENVIRONMENTAL OIL PROCESSING
                             TECHNOLOGY CORPORATION
                                AND SUBSIDIARIES

                        CONSOLIDATED FINANCIAL STATEMENTS

                    September 30, 2002 and December 31, 2001

























                                       9
<PAGE>


<TABLE>
<CAPTION>

               ENVIRONMENTAL OIL PROCESSING TECHNOLOGY CORPORATION
                                AND SUBSIDIARIES
                           Consolidated Balance Sheets

                                     ASSETS

                                                              September 30,    December 31,
                                                                  2002             2001
                                                              ------------    ------------
                                                               (naudited)

CURRENT ASSETS
<S>                                                          <C>             <C>
   Cash                                                      $     38,379    $  1,076,799
   Trade accounts receivable, less allowance for
    doubtful accounts of $13,000 and $10,000, respectively        151,426         129,285
   Inventories                                                    186,615         190,943
   Other current assets                                           131,390          48,358
                                                             ------------    ------------

     Total Current Assets                                         507,810       1,445,385
                                                             ------------    ------------

PROPERTY, PLANT AND EQUIPMENT                                   4,096,492       3,878,670
   Less accumulated depreciation                                 (314,493)       (237,193)
                                                             ------------    ------------

     Property, Plant and Equipment, Net                         3,781,999       3,641,477
                                                             ------------    ------------

OTHER ASSETS

   Construction in progress                                     7,629,129       6,238,550
   Deposits                                                            40              40
   Intangible assets, net                                         347,308         394,800
   Unamortized debt issue costs                                      --            52,500
                                                             ------------    ------------

     Total Other Assets                                         7,976,477       6,685,890
                                                             ------------    ------------

     TOTAL ASSETS                                            $ 12,266,286    $ 11,772,752
                                                             ============    ============
</TABLE>

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


                                       10
<PAGE>

<TABLE>

                                ENVIRONMENTAL OIL PROCESSING TECHNOLOGY CORPORATION
                                                 AND SUBSIDIARIES
                                      Consolidated Balance Sheets (Continued)


                                  LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

                                                              September 30,   December 31,
                                                                  2002             2001
                                                              ------------    ------------
                                                              (Unaudited)
CURRENT LIABILITIES

<S>                                                           <C>             <C>
   Accounts payable                                           $    862,032    $    694,176
   Accrued expenses                                              2,298,685       1,236,081
   Notes payable - related parties                                 115,335         210,000
   Notes payable                                                10,546,068      10,525,892
                                                              ------------    ------------

     Total Current Liabilities                                  13,822,120      12,666,149
                                                              ------------    ------------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY (DEFICIT)

   Common stock, no par value; 200,000,000
    shares authorized; 75,967,353 and 73,220,116
    shares issued and outstanding, respectively                 24,272,305      23,249,988
   Note and interest receivable-related party (Note 3)            (627,291)           --
   Accumulated deficit                                         (25,200,848)    (24,143,385)
                                                              ------------    ------------

     Total Stockholders' Equity (Deficit)                       (1,555,834)       (893,397)
                                                              ------------    ------------

     TOTAL LIABILITIES AND STOCKHOLDERS'
     EQUITY (DEFICIT)                                         $ 12,266,286    $ 11,772,752
                                                              ============    ============
</TABLE>

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


                                       11
<PAGE>


<TABLE>
<CAPTION>

               ENVIRONMENTAL OIL PROCESSING TECHNOLOGY CORPORATION
                                AND SUBSIDIARIES
                      Consolidated Statements of Operations
                                   (Unaudited)



                                                            For the                            For the
                                                      Three Months Ended                  Nine Months Ended
                                                         September 30,                      September 30,
                                               ---------------------------------  --------------------------------
                                                    2002               2001            2002              2001
                                               ---------------  ----------------  ---------------  ---------------
<S>                                            <C>              <C>               <C>              <C>
NET SALES                                      $       460,329  $        427,983  $     1,189,213  $       877,564

COST OF GOODS SOLD                                      65,636            50,138          243,531          166,805
                                               ---------------  ----------------  ---------------  ---------------

GROSS MARGIN                                           394,693           377,845          945,682          710,759
                                               ---------------  ----------------  ---------------  ---------------

OPERATING EXPENSES

   Amortization of debt issue cost                        --                --             52,500             --
   Consulting                                          259,657            22,306          284,157        9,424,855
   Depreciation and amortization                        42,367            20,124          127,100           60,372
   Selling, general and administrative                 343,445           456,752        1,828,757        1,705,838
                                               ---------------  ----------------  ---------------  ---------------

     Total Operating Expenses                          645,469           499,182        2,292,514       11,191,065
                                               ---------------  ----------------  ---------------  ---------------

LOSS FROM OPERATIONS                                  (250,776)         (121,337)      (1,346,832)     (10,480,306)
                                               ---------------  ----------------  ---------------  ---------------

OTHER INCOME (EXPENSE)

   Interest expense                                     (5,283)           (7,212)          (7,139)         (41,254)
   Interest income                                          16               850            1,762            9,394
                                               ---------------  ----------------  ---------------  ---------------

     Total Other Income (Expense)                       (5,267)           (6,362)          (5,377)         (31,860)
                                               ---------------  ----------------  ---------------  ---------------

INCOME TAX EXPENSE                                        --                --               --               --
                                               ---------------  ----------------  ---------------  ---------------

LOSS FROM CONTINUING
 OPERATIONS                                           (256,043)         (127,699)      (1,352,209)     (10,512,166)

INCOME (LOSS) FROM DISCONTINUED
 OPERATIONS (Note 4)                                      --          (3,046,968)         294,746       (2,579,600)
                                               ---------------  ----------------  ---------------  ---------------

NET LOSS                                       $      (256,043) $     (3,174,667) $    (1,057,463) $   (13,091,766)
                                               ===============  ================  ===============  ===============

BASIC INCOME (LOSS) PER
 COMMON SHARE

   Loss from continuing operations             $         (0.00) $          (0.00) $         (0.01) $         (0.14)
   Income (loss) from discontinued
    operations                                            0.00             (0.04)            0.00            (0.04)
                                               ---------------  ----------------  ---------------  ---------------

     Basic income (loss) per share             $         (0.00) $          (0.04) $         (0.01) $         (0.18)
                                               ===============  ================  ===============  ===============

WEIGHTED AVERAGE SHARES
 OUTSTANDING                                        81,221,434        73,520,116       77,796,509       73,404,731
                                               ===============  ================  ===============  ===============

</TABLE>

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


                                       12
<PAGE>


<TABLE>
<CAPTION>

                                ENVIRONMENTAL OIL PROCESSING TECHNOLOGY CORPORATION
                                                 AND SUBSIDIARIES
                             Consolidated Statements of Stockholders' Equity (Deficit)



                                                                                     Note and
                                                            Common Stock             Interest                             Total
                                                     ----------------------------   Receivable-      Accumulated      Stockholders'
                                                        Shares           Amount    Related Party        Deficit     Equity (Deficit)
                                                     ------------    ------------  --------------    ------------    ------------
<S>               <C> <C>                              <C>           <C>             <C>             <C>             <C>
Balance, December 31, 2000                             72,020,116    $ 12,943,211    $       --      $ (9,255,116)   $  3,688,095

Common stock issued for services                        1,200,000       9,372,000            --              --         9,372,000

Stock options granted to employees
   below market value                                        --           561,400            --              --           561,400

Stock options granted to nonemployees
   below market value                                        --           373,377            --              --           373,377

Net loss for the year ended
   December 31, 2001                                         --              --              --       (14,888,269)    (14,888,269)
                                                     ------------    ------------    ------------    ------------    ------------

Balance, December 31, 2001                             73,220,116      23,249,988            --       (24,143,385)       (893,397)

Common stock issued for inventory
 (unaudited)                                              103,217          17,991            --              --            17,991

Common stock issued for options
 exercised (unaudited)                                    500,000         175,000            --              --           175,000

Conversion of accounts payable to
 common stock (unaudited)                                  35,714          12,500            --              --            12,500

Common stock issued for conversion
   of debt (unaudited)                                  2,333,333         210,000            --              --           210,000

Cancellation of shares returned in
 settlement agreement by Project
 Development Industries (unaudited)                    (4,000,000)       (294,746)           --              --          (294,746)

Stock options granted to nonemployees
 at market value (unaudited)                                 --           260,157            --              --           260,157

Common stock issued for options
 exercised (unaudited)                                  3,600,000         612,000        (612,000)           --              --

Common stock issued for options
 exercised (unaudited)                                  6,000,000         510,000        (510,000)           --              --

Interest accrued on related party note (unaudited)           --            27,028         (27,028)           --              --

Cancellation of shares and related party
 note and accrued interest (unaudited)                 (6,000,000)       (521,737)        521,737            --              --

Common stock issued for options exercised
 (unaudited)                                              100,000           8,500            --              --             8,500

Common stock issued for inventory
 (unaudited)                                               74,973           5,624            --              --             5,624

Net loss for the nine months ended
   September 30, 2002 (unaudited)                            --              --              --        (1,057,463)     (1,057,463)
                                                     ------------    ------------    ------------    ------------    ------------

Balance, September 30, 2002 (unaudited)                75,967,353    $ 24,272,305    $   (627,291)   $(25,200,848)   $ (1,555,834)
                                                     ============    ============    ============    ============    ============
</TABLE>


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



                                       13
<PAGE>


<TABLE>
<CAPTION>

                                ENVIRONMENTAL OIL PROCESSING TECHNOLOGY CORPORATION
                                                 AND SUBSIDIARIES
                                       Consolidated Statements of Cash Flows
                                                    (Unaudited)


                                                                                    For the Nine Months Ended
                                                                                         September 30,
                                                                            --------------------------------------
                                                                                   2002                2001
                                                                            ------------------  ------------------

CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                          <C>                   <C>
   Net loss                                                                  $ (1,057,463)         $(13,091,766)
   Adjustments to reconcile net loss to net cash
    provided by operating activities:
     Amortization of debt issue costs                                              52,500                  --
     Depreciation and amortization                                                127,100               244,260
     Common stock issued for services                                                --               9,477,000
     Loss on impairment of goodwill                                                  --               2,752,222
     Loss on impairment of net assets in excess of
      liabilities of Project Development Industries                                  --                 294,746
     Gain on disposal of subsidiary                                              (294,746)                 --
     Stock options granted below market value                                     260,157                  --
   Changes in operating assets and liabilities:
     Accounts receivable                                                          (22,141)             (388,229)
     Inventories                                                                   27,943              (105,718)
     Other assets                                                                 (83,032)                8,611
     Accounts payable and accrued expenses                                      1,426,460             1,526,773
                                                                             ------------          ------------

       Net Cash Provided by Operating Activities                                  436,778               717,899
                                                                             ------------          ------------

CASH FLOWS USED IN INVESTING ACTIVITIES

   Cash forfeited in disposal of subsidiary                                          --                 (37,932)
   Construction in progress                                                    (1,344,104)           (5,416,839)
   Capital expenditures                                                          (266,605)             (587,973)
                                                                             ------------          ------------

       Net Cash Used by Investing Activities                                   (1,610,709)           (6,042,744)
                                                                             ------------          ------------

CASH FLOWS FROM FINANCING ACTIVITIES

   Borrowings from notes payable - related parties                                122,035                94,990
   Payments on notes payable - related parties                                     (6,700)             (491,500)
   Proceeds from notes payable                                                     46,068             6,000,000
   Payments on notes payable                                                      (25,892)             (533,206)
                                                                             ------------          ------------

       Net Cash Provided by Financing Activities                                  135,511             5,070,284
                                                                             ------------          ------------

NET DECREASE IN CASH                                                           (1,038,420)             (254,561)

CASH, BEGINNING OF PERIOD                                                       1,076,799               273,215
                                                                             ------------          ------------

CASH, END OF PERIOD                                                          $     38,379          $     18,654
                                                                             ============          ============
</TABLE>

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


                                       14
<PAGE>




               ENVIRONMENTAL OIL PROCESSING TECHNOLOGY CORPORATION
                                AND SUBSIDIARIES
                Consolidated Statements of Cash Flows (Continued)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                           For the Nine Months Ended
                                                                September 30,
                                                   --------------------------------------
                                                          2002                2001
                                                   ------------------  ------------------
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
 INFORMATION:
<S>                                                <C>                 <C>
   Cash paid for interest                          $            1,189  $           41,254
   Cash paid for taxes                             $                -  $                -
</TABLE>

SUPPLEMENTAL DISCLOSURE OF NON-CASH
 FINANCING ACTIVITIES:

Nine Months ended September 30, 2001:

   The  Company  issued  1,200,000  shares of its common  stock for  services of
$9,477,000.

   The Company issued 300,000 shares of its common stock for  extinguishment  of
debt of $105,000.

Nine Months ended September 30, 2002:

   The Company issued 2,333,333 shares of its common stock for conversion of the
   $210,000 promissory note to the President of the Company.

   The  Company  issued  35,714  shares of its common  stock for  conversion  of
   accounts  payable and 500,000 shares of its common stock for accounts payable
   applied to exercise of stock options to its consultants on the Reno Project.

   The Company  issued 103,217 shares of its common stock for used oil collected
   from various companies.

   The Company issued  3,600,000  shares of its common stock to the President of
   the Company for options exercised at $0.17 per share and the President of the
   Company gave a $612,000 promissory note as payment of the exercise price (See
   Note 3).

   The Company issued  6,000,000  shares of its common stock to the President of
   the Company for options  exercised  at $0.085 per share and the  President of
   the Company gave a $510,000 promissory note as payment of the exercise price.
   During  September  2002, the President of the Company  returned the 6,000,000
   shares of the  Company's  common stock and  canceled  the related  party note
   totaling $510,000 and related accrued interest of $11,737 (See Note 3).

   The Company has accrued  interest of $15,291 for the remaining  related party
   note and has recorded the amount as a reduction of stockholder's  equity with
   an offset to contributed capital.

   The Company  issued 74,973 shares of its common stock for oil collected  from
   various companies.


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


                                       15
<PAGE>



               ENVIRONMENTAL OIL PROCESSING TECHNOLOGY CORPORATION
                                AND SUBSIDIARIES
                 Notes to the Consolidated Financial Statements
                    September 30, 2002 and December 31, 2001



NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION

         The accompanying  unaudited condensed consolidated financial statements
         have been prepared by the Company pursuant to the rules and regulations
         of the  Securities and Exchange  Commission.  Certain  information  and
         footnote  disclosures  normally  included  in  consolidated   financial
         statements prepared in accordance with accounting  principles generally
         accepted in the United States of America have been condensed or omitted
         in  accordance  with  such  rules  and  regulations.   The  information
         furnished in the interim condensed  consolidated  financial  statements
         include  normal  recurring  adjustments  and reflects all  adjustments,
         which,  in  the  opinion  of  management,  are  necessary  for  a  fair
         presentation  of  such  consolidated  financial  statements.   Although
         management  believes the  disclosures  and  information  presented  are
         adequate to make the information  not misleading,  it is suggested that
         these interim condensed  consolidated  financial  statements be read in
         conjunction  with  the  Company's  most  recent  audited   consolidated
         financial  statements  and notes  thereto  included in its December 31,
         2001 Annual Report on Form 10-KSB.  Operating results for the three and
         nine months ended September 30, 2002 are not necessarily  indicative of
         the results that may be expected for the year ending December 31, 2002.

NOTE 2 - GOING CONCERN

         The Company expects that waste oil collection by Artesian will continue
         to grow and will thus  increase  its refined oil sales.  The Company is
         modifying  its refining  plant in Nampa,  Idaho and adding a new column
         that is expected to be completed by the end of the fourth quarter 2002.
         The Company expects this to produce positive cash flows from operations
         by 2002 year-end.  The Company's loan in the amount of $10,500,000  was
         due on March 23,  2002.  However,  the Company  negotiated  a six month
         extension  with the note holder and the extended due date was September
         23,  2002.  The  Company  is  in  default  on  this  loan,  but  is  in
         negotiations  with the note holder to extend the terms.  The Company is
         building two plants in Reno,  Nevada.  The Company is seeking financing
         for the plant.  If the financing does not become  available soon enough
         then  construction  will be slowed so that the Company  does not become
         over extended. However, there can be no assurance that the Company will
         be  successful  in its  plans.  Because  the  Company  has  experienced
         substantial losses from operations and has a working capital deficit of
         $13,314,310,  there is substantial doubt about the Company's ability to
         continue as a going concern.



                                       16
<PAGE>



               ENVIRONMENTAL OIL PROCESSING TECHNOLOGY CORPORATION
                                AND SUBSIDIARIES
                 Notes to the Consolidated Financial Statements
                    September 30, 2002 and December 31, 2001


NOTE 3 - MATERIAL EVENTS

         Litigation

         On March 4, 2002,  the Company  entered  into a  Separation  Agreement,
         Settlement  Agreement  and  Mutual  Release  with  Project  Development
         Industries,  L.L.C. (PDI) and several  individuals.  During March 2002,
         the Company has paid a $155,000 invoice previously  tendered by PDI and
         PDI has returned 4 million  shares of common stock and cancelled the $6
         million contingent  promissory note. The promissory note was to be paid
         based upon  earnings  by PDI.  PDI  recorded a loss for the period from
         April  1,  1999 to  December  31,  1999 and EOPT  agreed  to defer  the
         implementation  of the  contingency but the criteria for payment of the
         note  were  never  met and the  Company  never  recorded  the note as a
         liability.

         Truck Lease

         During March 2002, the Company entered into a one-year  operating lease
         for two trucks and related equipment with Oil  Transportation  Company,
         Inc.  (OTC),  a company  owned by the  President  of the Company and an
         unrelated individual. The monthly lease payments are based on $0.50 per
         actual  running  mileage in a month.  The  Company  has prepaid OTC the
         amount  of  $20,000  that is  included  in other  current  assets as of
         September 30, 2002.

         Notes Payable

         The  Company  is in  default  on its  note  payable  in the  amount  of
         $10,500,000  which was due on September  23, 2002. On October 28, 2002,
         Lewis & Clark College filed a complaint,  in the District  Court of the
         Third Judicial District, Canyon County, Idaho, for the appointment of a
         receiver pending execution against collateral under pending foreclosure
         proceedings  for the  principal  amount of the note plus  interest  and
         costs. The Company was served on November 4, 2002 and intends to timely
         respond  to the  pleadings  on or before  November  24,  2002,  raising
         available legal defenses.

         Notes and Interest Receivable - Related Party

         On May 1, 2002, the President of the Company gave a $612,000 promissory
         note to the Company as payment of the exercise of 3,600,000  options to
         purchase the Company's  common stock at $0.17 per share. The promissory
         note bears  interest at 6% per annum,  is unsecured,  and is payable on
         October 1, 2006.

         Also,  on May 1, 2002,  the  President  of the Company  gave a $510,000
         promissory  note to the Company as payment of the exercise of 6,000,000
         options to purchase the Company's common stock at $0.085 per share. The
         promissory  note bears interest at 6% per annum,  is unsecured,  and is
         payable on May 1, 2007.  During  September  2002,  the President of the
         Company  returned  6,000,000  shares of the Company's  common stock and
         canceled the related party note totaling  $510,000 and related  accrued
         interest of $11,737.



                                       17
<PAGE>



               ENVIRONMENTAL OIL PROCESSING TECHNOLOGY CORPORATION
                                AND SUBSIDIARIES
                 Notes to the Consolidated Financial Statements
                    September 30, 2002 and December 31, 2001


NOTE 3 - MATERIAL EVENTS (Continued)

         Notes and Interest Receivable - Related Party (Continued)

         As of September 30, 2002, total interest  receivable from the remaining
         note was $15,291.  The remaining note  receivable and related  interest
         from the related party have been shown as a reduction of  stockholders'
         equity and the related interest income for the period has been recorded
         as contributed capital.

         Common Stock

         During July 2002,  the Company issued 74,973 shares of its common stock
         at $0.075 per share for  inventory  purchased  during the three  months
         ended  September 30, 2002.  Also during July 2002,  the Company  issued
         100,000 shares of its common stock for accounts  payable applied to the
         exercise of stock  options at an exercise  price of $0.085 per share to
         one of its  consultants.  During  September  2002, the President of the
         Company  returned  6,000,000  shares of the Company's  common stock and
         canceled the related party note totaling  $510,000 and related  accrued
         interest of $11,737.

NOTE 4 - DISCONTINUED OPERATIONS

         On September 14, 2001, Project Development  Industries,  LLC (PDI), the
         Company's  wholly-owned  subsidiary,  and several  individuals  filed a
         complaint in a federal  district  court  against the Company.  In March
         2002,   the  Company  and  PDI  reached  an  agreement  of  separation,
         settlement  and mutual  release.  Both PDI and the  Company  agreed and
         consented  to separate PDI from the Company  completely  and to rescind
         the  original  share  purchase  agreement  subject  to  the  terms  and
         conditions  of the  settlement.  The  Company  has  accounted  for  the
         operations  of  PDI  as  discontinued  and  has  used  PDI's  financial
         statements as of September 30, 2001. At September 30, 2001, PDI had net
         assets in excess of  liabilities  of $294,746.  An  allowance  has been
         established  for the net assets in excess of  liabilities of PDI, thus,
         the  value of the net  assets  of PDI at  December  31,  2001 was $-0-.
         During  March 2002,  PDI  returned  4,000,000  shares of the  Company's
         common stock which was then  cancelled by the  Company.  The  cancelled
         shares were valued based on the net assets in excess of  liabilities of
         PDI. The gain on the disposal of PDI recoups the loss on the net assets
         in excess of  liabilities  previously  recognized  in the period  ended
         September   30,  2001.   The  following  is  a  summary  of  loss  from
         discontinued  operations  resulting from the litigation between PDI and
         the Company for the three and nine months ended  September 30, 2002 and
         2001. The  consolidated  financial  statements have been  retroactively
         restated to reflect this event.



                                       18
<PAGE>



               ENVIRONMENTAL OIL PROCESSING TECHNOLOGY CORPORATION
                                AND SUBSIDIARIES
                 Notes to the Consolidated Financial Statements
                    September 30, 2002 and December 31, 2001


NOTE 4 - DISCONTINUED OPERATIONS (Continued)
<TABLE>
<CAPTION>

                                                                     For the                        For the
                                                               Three Months Ended              Nine Months Ended
                                                                  September 30,                  September 30,
                                                          ----------------------------  ----------------------------
                                                              2002            2001           2002           2001
                                                          -------------  -------------  -------------   ------------
                                                        (Unaudited)     (Unaudited)    (Unaudited)       (Unaudited)
<S>                                                       <C>            <C>            <C>             <C>
              NET SALES                                   $      --      $     .--      $     --        $  2,026,190

              COST OF SALES                                      --             --            --                --
                                                          -------------  -------------  -------------   ------------

              GROSS MARGIN                                       --             --            --           2,026,190

              OPERATING EXPENSES

                Consulting                                       --             --            --              74,016
                Depreciation and amortization                    --             --            --             183,888
                Selling, general and administrative              --             --            --           1,274,634
                                                          -------------  -------------  -------------   ------------

                  Total Operating Expenses                       --             --            --           1,532,538
                                                          -------------  -------------  -------------   ------------

              INCOME FROM OPERATIONS                             --             --            --             493,652
                                                          -------------  -------------  -------------   ------------

              OTHER INCOME (EXPENSE)

                Interest expense                                 --             --            --             (26,287)
                Interest income                                  --             --            --                   3
                Gain on disposal of subsidiary                   --             --            294,746           --
                Loss on impairment of goodwill                   --         (2,752,222)       --          (2,752,222)
                Loss on impairment of net assets
                 in excess of liabilities of Project
                 Development Industries                          --           (294,746)       --            (294,746)
                                                          -------------  -------------  -------------   ------------

                  Total Other Income (Expense)                   --         (3,046,968)       294,746     (3,073,252)
                                                          -------------  -------------  -------------   ------------

              INCOME TAX EXPENSE                                 --             --            --                --
                                                          -------------  -------------  -------------   ------------

              INCOME FROM DISCONTINUED
               OPERATIONS                                 $      --      $  (3,046,968) $     294,746   $ (2,579,600)
                                                          =============  =============  =============   ============

</TABLE>

                                       19
<PAGE>



               ENVIRONMENTAL OIL PROCESSING TECHNOLOGY CORPORATION
                                AND SUBSIDIARIES
                 Notes to the Consolidated Financial Statements
                    September 30, 2002 and December 31, 2001


NOTE 5 - OUTSTANDING STOCK OPTIONS

         The Company  applies  Accounting  Principles  Board ("APB") Opinion 25,
         "Accounting for Stock Issued to Employees," and related Interpretations
         in  accounting  for all  stock  option  plans.  Under APB  Opinion  25,
         compensation  cost is recognized for stock options granted to employees
         when the option price is less than the market  price of the  underlying
         common stock on the date of grant.

         As a result of  applying  APB  Opinion 25 to stock  options  granted to
         employees,  the Company did not incur an additional expense for the six
         months ended September 30, 2002.

         FASB Statement 123,  "Accounting for Stock-Based  Compensation"  ("SFAS
         No.  123"),  requires  the  Company  to  provide  proforma  information
         regarding net income and net income per share as if compensation  costs
         for the  Company's  stock  option plans and other stock awards had been
         determined in accordance with the fair value based method prescribed in
         SFAS No. 123. The Company  estimates the fair value of each stock award
         at the grant date by using the Black-Scholes  option pricing model with
         the   following   weighted   average   assumptions   used  for  grants,
         respectively;  dividend  yield of zero percent for all years;  expected
         volatility of 155.95%;  risk-free interest rates of 4.475% and expected
         lives of 5.0 years.

         As a result of applying SFAS No. 123 to stock options granted on May 1,
         2002 to  nonemployees,  the Company recorded an expense of $260,157 for
         the nine months ended  September  30, 2002.  The expense is included in
         the  selling,  general and  administrative  amount in the  statement of
         operations.

         Had  compensation  cost for the  Company's  stock  options  granted  to
         employees  been  determined  based on the fair  value at the grant date
         under the accounting provisions of SFAS No. 123, the Company would have
         recorded  an  additional  expense of  $59,127.  Also  under  these same
         provisions,  the  Company's net loss would have been changed by the pro
         forma amounts indicated below:



                                       20
<PAGE>



               ENVIRONMENTAL OIL PROCESSING TECHNOLOGY CORPORATION
                                AND SUBSIDIARIES
                 Notes to the Consolidated Financial Statements
                    September 30, 2002 and December 31, 2001


NOTE 5 - OUTSTANDING STOCK OPTIONS (Continued)
<TABLE>
<CAPTION>

                                                            For the Nine Months Ended
                                                                   September 30,
                                                     ---------------------------------------
                                                            2002                 2001
                                                     ------------------  -------------------
                                                         (Unaudited)          (Unaudited)
 <S>                                                  <C>                 <C>
              Net loss:
                As reported                          $   (1,057,463)     $   (13,091,766)
                Pro forma                            $   (1,116,590)     $   (13,091,766)

                                                            For the Nine Months Ended
                                                                  September 30,
                                                     ---------------------------------------
                                                            2002                 2001
                                                     ------------------  -------------------
                                                         (Unaudited)          (Unaudited)
              Basic loss per share:
                As reported                          $      (0.01)       $       (0.18)
                Pro forma                            $      (0.01)       $       (0.18)
</TABLE>

         A summary  of the  status of the  Company's  stock  option  plans as of
         September 30, 2002 and changes during the period is presented below:
<TABLE>
<CAPTION>

                                                                                       Weighted
                                                                                       Average
                                                                        Shares      Exercise Price
                                                                     ------------   --------------
<S>                                                                    <C>          <C>
Outstanding, December 31, 2001                                          6,950,000    $    0.190

    Granted                                                            10,050,000         0.085
    Exercised                                                         (10,200,000)        0.130
    Canceled                                                                 --        --
                                                                      -----------    -----------

Outstanding, September 30, 2002 (unaudited)                             6,800,000    $    0.120
                                                                      -----------    -----------

Exercisable, September 30, 2002 (unaudited)                             6,400,000    $    0.120
                                                                      ===========    ===========

</TABLE>

<TABLE>
<CAPTION>


                                                           Outstanding                        Exercisable
                                         -------------------------------------------- --------------------------
                                                          Weighted
                                                           Average        Weighted                      Weighted
                                            Number       Remaining         Average       Number         Average
                                         Outstanding     Contractual      Exercise    Exercisable       Exercise
              Exercise Prices            at 09/30/02         Life           Price     at 09/30/02       Price
              ---------------            -----------    ------------    ------------  -----------      ------------
<S>           <C>                           <C>                <C>           <C>          <C>           <C>
              $ 0.085                       3,950,000          5.00          $ 0.085      3,950,000     $   0.085
                0.170                       2,670,000          3.00            0.170      2,360,000         0.170
                0.350                         180,000          3.00            0.350         90,000         0.350
                                         -----------    ------------    ------------  -----------      ------------
              $ 0.085 - 0.350               6,800,000          4.16         $  0.120      6,400,000     $   0.120
                                         =============  ============    ============  =============     ===========
</TABLE>



                                       21
<PAGE>



               ENVIRONMENTAL OIL PROCESSING TECHNOLOGY CORPORATION
                                AND SUBSIDIARIES
                 Notes to the Consolidated Financial Statements
                            September 30, 2002 and 15


NOTE 5 - OUTSTANDING STOCK OPTIONS (Continued)

         On May 1,  2002,  the  Company  granted  10,050,000  stock  options  to
         officers, employees,  consultants and other individuals.  These options
         were issued with an  exercise  price of $0.085 per share.  All of these
         options  vest  immediately  and have a maturity  of five years from the
         grant date.

         Also on May 1, 2002, the President of the Company  exercised  3,600,000
         of the options at the exercise price of $0.17 per share.  As payment to
         exercise  these  options,  the President of the Company gave a $612,000
         promissory note to the Company. (See Note 3).

         And on May 1, 2002, the President of the Company exercised 6,000,000 of
         the options at the  exercise  price of $0.085 per share.  As payment to
         exercise  these  options,  the President of the Company gave a $510,000
         promissory note to the Company. During September 2002, the President of
         the Company returned the 6,000,000 shares of the Company's common stock
         and  canceled  the related  party note  totaling  $510,000  and related
         accrued interest of $11,737 (See Note 3).

NOTE 6 - OPERATING SEGMENT INFORMATION

         For the nine months ended  September 30, 2002, the Company  operated in
         two geographic  segments,  (1) waste oil collection and refining at the
         Company's headquarters in Nampa, Idaho, and (2) waste oil collection at
         the Company's offices in Oakland,  California. The results for Artesian
         in 2001 are from April 1, 2001 to September 30, 2001.
<TABLE>
<CAPTION>

                                                  For the Nine
                                                  Months Ended
                                                  September 30,           ARTESIAN              EOPTI             Totals
                                                  -------------        ------------       ------------       -------------
<S>                                                   <C>              <C>                <C>                <C>
              Net Sales                               2001             $    166,590       $    710,974       $     877,564
                                                      2002                  262,670            926,543           1,189,213

              Operating income (loss)                 2001                   47,782        (10,528,088)        (10,480,306)
                                                      2002                   42,449         (1,389,281)         (1,346,832)

              General corporate                       2001                  118,808         11,072,257          11,191,065
                                                      2002                  220,221          2,072,293           2,292,514

              Other Income (Expense)                  2001                     --              (31,860)            (31,860)
                                                      2002                     --               (5,377)             (5,377)

              Operating Assets                        2001                  519,319         12,299,853          12,819,172
                                                      2002                  439,175         11,827,111          12,266,286
</TABLE>


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<PAGE>



               ENVIRONMENTAL OIL PROCESSING TECHNOLOGY CORPORATION
                                AND SUBSIDIARIES
                 Notes to the Consolidated Financial Statements
                    September 30, 2002 and December 31, 2001


NOTE 7 - SUBSEQUENT EVENTS

         Subsequent to September 30, 2002,  the Company issued 203,455 shares of
         its common stock at $0.03 per share for inventory  purchased during the
         three months ended September 30, 2002. The total value of the shares of
         $6,103 was included in accounts payable at September 30, 2002.



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