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

                                  Form 10-QSB/A
                                 Amendment No. 1
(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, 2001.

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

                        Commission file number : 0-29509

               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, 2001, is
73,520,116.

              Transitional Small Business Disclosure Format. Yes    , No   X .
                                                                ---       ---

                                        1

<PAGE>



                    The following items were the subject of a
                  Form 12b-25 and are included herein: Item 1.,
                  "Financial Statements" and Item 2., "Manage-
                    ment's Discussion and Plan of Operation".


                         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
months and nine months ended  September  30, 2001,  reviewed by HJ & Associates,
certified public accountants.

               ENVIRONMENTAL OIL PROCESSING TECHNOLOGY CORPORATION
                                AND SUBSIDIARIES

                        CONSOLIDATED FINANCIAL STATEMENTS

                    September 30, 2001 and December 31, 2000


                                       2
<PAGE>


<TABLE>
<CAPTION>

               ENVIRONMENTAL OIL PROCESSING TECHNOLOGY CORPORATION
                                AND SUBSIDIARIES
                           Consolidated Balance Sheets


                                     ASSETS
                                     ------

                                                          September 30,         December 31,
                                                             2001                   2000
                                                         ------------          ------------
                                                            (Unaudited)
<S>                                                      <C>                   <C>
CURRENT ASSETS

   Cash                                                  $     18,654          $    273,215
   Trade accounts receivable, less allowance for
     doubtful accounts of $10,000 and $23,000,
     respectively                                             161,393               403,998
   Inventories                                                119,266                13,548
   Loan proceeds                                            4,500,000                  --
   Other current assets                                        75,836               105,264
                                                         ------------          ------------

     Total Current Assets                                   4,875,149               796,025
                                                         ------------          ------------
PROPERTY, PLANT AND EQUIPMENT                               2,735,700             2,332,146
   Less accumulated depreciation                             (208,556)             (293,439)
                                                         ------------          ------------
     Property, Plant and Equipment, Net                     2,527,144             2,038,707
                                                         ------------          ------------
OTHER ASSETS

   Construction in progress                                 5,416,839                  --
   Deposits                                                        40                    40
   Goodwill, net                                                 --               2,929,786
   Net assets in excess of liabilities
     of discontinued operations (Note 3)                         --                    --
                                                         ------------          ------------
     Total Other Assets                                     5,416,879             2,929,826
                                                         ------------          ------------
     TOTAL ASSETS                                        $ 12,819,172          $  5,764,558
                                                         ============          ============

</TABLE>


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



                                       3
<PAGE>


<TABLE>
<CAPTION>

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


                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      ------------------------------------

                                                            September 30,              December 31,
                                                                2001                      2000
                                                            ------------             ------------
                                                            (Unaudited)

<S>                                                         <C>                      <C>
CURRENT LIABILITIES

   Current portion of notes payable                         $ 10,500,000             $     81,731
   Accounts payable                                            1,180,077                  136,544
   Accrued expenses                                              828,276                  534,740
   Line of credit                                                   --                    387,367
   Notes payable - related parties                               237,490                  239,838
   Deferred revenue                                                 --                        135

     Total Current Liabilities                                12,745,843                1,380,355
                                                            ------------             ------------
LONG-TERM DEBT

   Notes payable - related parties                                  --                    632,000
   Notes payable                                                    --                     64,108
                                                            ------------             ------------
     Total Long-Term Debt                                           --                    696,108
                                                            ------------             ------------
       Total Liabilities                                      12,745,843                2,076,463
                                                            ------------             ------------
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY

   Common stock, no par value; 200,000,000
    shares authorized; 73,520,116 and 72,020,116
    shares issued and outstanding, respectively               22,420,211               12,943,211
   Accumulated deficit                                       (22,346,882)              (9,255,116)

     Total Stockholders' Equity                                   73,329                3,688,095
                                                            ------------             ------------
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY             $ 12,819,172             $  5,764,558
                                                            ============             ============
</TABLE>

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


                                       4
<PAGE>


<TABLE>
<CAPTION>

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


                                                                For the                          For the
                                                          Nine Months Ended                 Three Months Ended
                                                            September 30,                     September 30,
                                                       2001           2000              2001              2000
                                                   ----------      ----------      ----------      ----------
<S>                                              <C>             <C>             <C>             <C>
NET SALES                                        $    877,564    $    844,096    $    427,983    $    291,568

COST OF GOODS SOLD                                    166,805            --            50,138            --
                                                   ----------      ----------      ----------      ----------
GROSS MARGIN                                          710,759         844,096         377,845         291,568

SELLING, GENERAL AND
 ADMINISTRATIVE EXPENSES                           11,191,065       2,167,079         499,182         924,787
                                                   ----------      ----------      ----------      ----------
LOSS FROM OPERATIONS                               10,480,306      (1,322,983)       (121,337)       (633,219)
                                                   ----------      ----------      ----------      ----------
OTHER INCOME (EXPENSE)

   Interest expense                                   (41,254)        (29,246)         (7,212)           --
   Interest income                                      9,394          11,146             850              10
                                                   ----------      ----------      ----------      ----------
     Total Other Income (Expense)                     (31,860)        (18,100)         (6,362)             10
                                                   ----------      ----------      ----------      ----------
INCOME TAX EXPENSE                                       --              --              --              --
                                                   ----------      ----------      ----------      ----------
LOSS FROM CONTINUING
 OPERATIONS                                       (10,512,166)     (1,341,083)       (127,699)       (633,209)

 LOSS FROM DISCONTINUED
 OPERATIONS (Note 3)                               (2,579,600)       (742,432)     (3,046,968)       (285,376)
                                                   ----------      ----------      ----------      ----------
NET LOSS                                         $(13,091,766)   $ (2,083,515)   $ (3,174,667)   $   (918,585)

BASIC LOSS PER SHARE

   Loss from continuing operations               $      (0.14)   $      (0.02)   $      (0.00)   $      (0.01)
   Loss from discontinued operations                    (0.04)          (0.01)          (0.04)          (0.00)
                                                   ----------      ----------      ----------      ----------
     Basic loss per share                        $      (0.18)   $      (0.03)   $      (0.04)   $      (0.01)
                                                   ==========      ==========      ==========      ==========
WEIGHTED AVERAGE SHARES
 OUTSTANDING                                       73,404,731      70,518,670      73,520,116      70,518,670
                                                   ==========      ==========      ==========      ==========
</TABLE>

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



                                       5
<PAGE>

<TABLE>
<CAPTION>

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

                                                                           Additional                               Total
                                                     Common Stock           Paid-In         Accumulated          Stockholders'
                                               Shares          Amount       Capital           Deficit               Equity
                                              -----------   -----------   -----------       ------------         -----------
<S>                                            <C>          <C>           <C>               <C>                  <C>
Balance,
 December 31, 1999                             69,683,870   $11,443,277   $  (400,000)      $( 7,296,319)        $  3,746,958

Performance on stock
 subscription                                        --            --         400,000               --               400,000

Fractional shares issued                              116          --            --                 --                  --

Common stock issued for cash                    2,106,130     1,090,000          --                 --             1,090,000

Common stock issued for services                  230,000       230,000          --                 --               230,000

Forgiveness of note payable as
 contribution of capital                             --         179,934          --                 --               179,934

Net loss for the year ended
 December 31, 2000                                   --            --            --           (1,958,797)         (1,958,797)
                                              -----------   -----------   -----------       ------------         -----------
Balance, December 31, 2000                     72,020,116    12,943,211          --           (9,255,116)          3,688,095

Common stock issued for services
 (unaudited)                                    1,500,000     9,477,000          --                 --             9,477,000

Net loss for the nine months ended
 September 30, 2001 (unaudited)                      --            --            --          (13,091,766)        (13,091,766)
                                              -----------   -----------   -----------       ------------         -----------
Balance, September 30, 2001
 (unaudited)                                   73,520,116   $22,420,211   $      --         $(22,346,882)        $    73,329
                                              ===========   ===========   ===========       ============         ===========

</TABLE>


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



                                       6
<PAGE>

<TABLE>
<CAPTION>

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

                                                                                      For the
                                                                                  Nine Months Ended
                                                                                    September 30,
                                                                             2001                   2000
                                                                         -------------           -------------
CASH FLOWS FROM OPERATING ACTIVITIES

<S>                                                                     <C>                      <C>
   Net loss                                                             $  (13,091,766)          $  (2,083,515)
   Adjustments to reconcile net loss to net cash
    used by operating activities:
     Depreciation and amortization                                             244,260                 596,225
     Loss on impairment of goodwill                                          2,752,222                    --
     Loss on impairment of net assets in excess
       of liabilities of Project Development Industries                        294,746                    --
     Common stock issued for services                                        9,477,000                    --
   Changes in operating assets and liabilities:
     Accounts receivable                                                      (388,229)                152,177
     Inventories                                                              (105,718)                 (4,035)
     Other assets                                                                8,611                  (2,253)
     Accounts payable and accrued expenses                                   1,526,773                  13,115
                                                                         -------------           -------------
       Net Cash Provided (Used) by Operating Activities                        717,899              (1,328,286)
                                                                         -------------           -------------
CASH FLOWS USED IN INVESTING ACTIVITIES

   Cash forfeited in disposal of Project Development Industries                (37,932)                   --
   Construction in progress                                                 (5,416,839)                   --
   Capital expenditures                                                       (587,973)               (133,028)
                                                                         -------------           -------------
       Net Cash (Used) by Investing Activities                              (6,042,744)               (133,028)
                                                                         -------------           -------------
CASH FLOWS FROM FINANCING ACTIVITIES

   Proceeds from sale of common stock                                             --                 1,103,999
   Borrowings from notes payable - related parties                              94,990                 797,435
   Payments on notes payable - related parties                                (491,500)                   --
   Proceeds from notes payable                                               6,000,000                    --
   Payments on notes payable                                                  (533,206)                (23,464)
                                                                         -------------           -------------
       Net Cash Provided by Financing Activities                             5,070,284               1,877,970
                                                                         -------------           -------------
NET INCREASE IN CASH AND CASH EQUIVALENTS                                     (254,561)                416,656

CASH AND EQUIVALENTS, BEGINNING OF PERIOD                                      273,215                 193,007
                                                                         -------------           -------------
CASH AND EQUIVALENTS, END OF PERIOD                                      $      18,654           $     609,663
                                                                         =============           =============
</TABLE>

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


                                       7
<PAGE>


<TABLE>
<CAPTION>

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

                                                                                      For the
                                                                                  Nine Months Ended
                                                                                    September 30,
                                                                             2001                   2000
                                                                         -------------           -------------
CASH FLOWS FROM OPERATING ACTIVITIES

<S>                                                                     <C>                      <C>
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
 INFORMATION:

   Cash paid for interest                                                $     n41,254             $    43,869
   Cash paid for taxes                                                   $       - -  $                   --

SUPPLEMENTAL DISCLOSURE OF
 NON-CASH FINANCING ACTIVITIES:

Year ended December 31, 2000:

   The  President  of the Company  forgave a $179,934  note  payable to him as a
   contribution of capital to the Company.
</TABLE>

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


                                       8
<PAGE>



               ENVIRONMENTAL OIL PROCESSING TECHNOLOGY CORPORATION
                                AND SUBSIDIARIES
                 Notes to the Consolidated Financial Statements
                    September 30, 2001 and December 31, 2000


NOTE 1 -      CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

              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, 2001 and
              2000 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, 200 audited consolidated financial statements.  The results of
              operations  for the periods ended  September 30, 2001 and 2000 are
              not necessarily  indicative of the operating  results for the full
              years.

NOTE 2 -      MATERIAL EVENTS

              On September  14, 2001,  Project  Development  Industries,  L.L.C.
              (PDI),  the  Company's   wholly-owned   subsidiary,   and  several
              individuals  filed a federal district court complaint  against the
              Company, in the United States District Court of Colorado, Case No.
              EDCV 01WM-1714. PDI seeks declaratory judgment, injunction, breach
              of Services  Contract and unjust  enrichment.  In  particular,  in
              August  1999,  the Company and PDI  entered  into a certain  Share
              Purchase  Agreement that was subsequently  amended.  PDI seeks the
              Court  to  declare  the  legal   meaning  and  effect  of  certain
              provisions of that Agreement,  more particularly,  whether PDI can
              rescind the Agreement, receive its Membership Interest Certificate
              back and retain 7 million shares of the Company's stock. As to the
              other  claims,  PDI seeks an unstated  amount of money damages for
              damages it allegedly incurred by the Company's alleged breach of a
              Services  Contract  Agreement.  The Company has until  December 7,
              2001, to answer or otherwise  plead to the complaint.  The Company
              has defenses and counterclaims  available to it against PDI, which
              the Company will actively  pursue and which will be presented when
              it files its Answer and  Counterclaim in this case. PDI has sought
              a jury trial. In addition to the underlying causes of action,  PDI
              is seeking  attorneys'  fees and costs of litigation.  The amounts
              sought are uncertain.

              On September 24, 2001, the Company filed a federal  district court
              complaint  against LM Alternative,  Inc.,  ("LMA"),  in the United
              States District  Court,  Central  District of California,  Eastern
              Division,  Case No. EDCV 01-0699 VAP (SGLx).  The Company  seeks a
              money  judgment  against LMA as prayed for in the  Compliant.  The
              Complaint was served on LMA on Friday,  September 28, 2001. At the
              request of the attorney for LMA, LMA was granted an enlargement of
              time  within  which to file its  Answer  to the  Complaint.  It is
              anticipated  that in  addition  to filing an  Answer  denying  the
              Company's  claims,  LMA will  file a  Counterclaim  seeking  money
              damages against the Company for breach of contract. Most recently,
              the parties began a process of  establishing a mediation  schedule
              and informal  exchange of  discovery  with a view towards a mutual
              settlement  of their  opposing  claims.  The  Company is unable to
              comment on the probability of a mutual settlement.  If the parties
              are unable to settle this matter, then LMA will file its Answer to
              the Complaint and any Counterclaim it may have against the Company
              and the case will proceed to trial.  The respective  claims of the
              Company against LMA and the amount of damages sought are set forth
              in the Company's Complaint.


                                       9
<PAGE>


               ENVIRONMENTAL OIL PROCESSING TECHNOLOGY CORPORATION
                                AND SUBSIDIARIES
                 Notes to the Consolidated Financial Statements
                    September 30, 2001 and December 31, 2000


NOTE 3 -      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  (see  Note 2).
              Because  it is not  possible  to  evaluate  the  likelihood  of an
              unfavorable  outcome or estimate the extent of potential loss, the
              Company has  accounted for the  operations of PDI as  discontinued
              and has used PDI's financial statements as of the previous quarter
              at June 30, 2001.  At June 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  September  30,  2001  was  $-0-.  The
              following  is a  summary  of  loss  from  discontinued  operations
              resulting  from the  litigation  between PDI and the Company.  The
              consolidated financial statements have been retroactively restated
              to reflect this event.  However,  if the outcome of the litigation
              is favorable to the Company and the discontinued operations of PDI
              are  subsequently  retained,  the  Company  will  reverse the loss
              previously  accrued in connection  with the  accounting for PDI as
              discontinued operations.

<TABLE>
<CAPTION>

                                                           For the                            For the
                                                     Nine Months Ended                  Three Months Ended
                                                         September 30,                      September 30,
                                                    2001             2000              2001              2000
                                             ----------------  ---------------   ---------------  ----------------
<S>                                          <C>               <C>               <C>              <C>
NET SALES                                    $      2,026,190  $     2,213,818   $             -  $        373,084

COST OF SALES                                               -                -                 -                 -
                                             ----------------  ---------------   ---------------  ----------------
GROSS MARGIN                                        2,026,190        2,213,818                 -           373,084

SELLING, GENERAL AND
 ADMINISTRATIVE                                     1,532,538        2,956,266                 -           658,466
                                             ----------------  ---------------   ---------------  ----------------
LOSS FROM OPERATIONS                                  493,652         (742,448)                -          (285,382)

OTHER INCOME (EXPENSE)

   Interest expense                                   (26,287)               -                 -                 -
   Interest income                                          3               16                 -                 6
   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)                  (3,073,252)              16        (3,046,968)                6
                                             ----------------  ---------------   ---------------  ----------------
INCOME TAX EXPENSE                                          -                -                 -                 -
                                             ----------------  ---------------   ---------------  ----------------
LOSS FROM DISCONTINUED
 OPERATIONS                                  $     (2,579,600) $      (742,432)  $    (3,046,968) $       (285,376)
                                             ================  ===============   ================  ===============

</TABLE>



                                       10
<PAGE>


               ENVIRONMENTAL OIL PROCESSING TECHNOLOGY CORPORATION
                                AND SUBSIDIARIES
                 Notes to the Consolidated Financial Statements
                    September 30, 2001 and December 31, 2000


NOTE 4 -      SUBSEQUENT EVENTS

              Subsequent to September 30, 2001, the Company received the last of
              the  required   Federal  and  State   permits  and  approvals  for
              construction and operation of an electrical production facility on
              the Reno  Project.  The  Company  has  decided  to not  pursue the
              production of electricity at this time on the Reno Project, and is
              presently considering the sale of that portion of the Reno Project
              real property  allocated to the production of  electricity,  which
              consists of approximately five acres.

              On October 3, 2001, the Company  entered into a contract with PC&E
              as a  division  of Emerson  (formerly  Emerson  Electric)  for the
              design,  fabrication,   installation  and  start  up  of  two  oil
              processing  plants for the Reno  Project.  The total amount of the
              contract shall not exceed  $300,000 with monthly  payments made as
              work is performed.

              On October 16, 2001, the Company entered into a contract with REDD
              Engineering  for the  engineering  and  fabrication  of three  new
              columns designed for the production of diesel and naptha which are
              to be used in the Nampa plant and the two Reno Project plants, and
              for the redesign of the Nampa plant existing column for processing
              trans-mix as well as for a new column for processing  trans-mix in
              one of the Reno Project Plants.

              On November 9, 2001, the Company received the remaining $4,500,000
              of the $10,500,000  loan from a trust fund for proceeding with the
              Reno  Project.  A portion  of the  proceeds  was used to close the
              escrow account for the purchase of approximately 20.6 acres in the
              Reno Project.

                                       11
<PAGE>

Item 2.           Management's Discussion and Plan of Operation:

         Results of Operations:

         During the first nine months of 2001 the Company focused its activities
on developing  its used oil refinery  operations  through its Reno Project which
will be operated by its wholly owned subsidiary EOPT Power Group - Nevada,  Inc.
The Company has acquired a 20 acre  industrial  site with plans to construct two
refining  plants.   Originally  EOPT  had  planned  to  enter  the  business  of
co-generation of electrical  power. The economics of co-generation of electrical
power have  substantially  changed  therefor  the Company has decided to abandon
this  area of  business.  Fabrication  of the  refining  plants  is  tentatively
scheduled for completion in the latter part of 2002. To facilitate the gathering
of used oil for the Reno  Project,  the Company  acquired the assets of Artesian
Oil Recovery, Inc. in Oakland,  California during the second quarter of 2001 for
the sum of  $485,000.  Pending  the  completion  of the  refineries  in the Reno
Project, the used oil is being trucked to Nampa for processing.
         The pilot  refining  plant in Nampa  became  fully  operational  in the
second quarter of 2001. The plant  production meets  specifications  for diesel,
naphtha  and  residuum  for  asphalt  and  the  Company  is  selling  all of its
production to local wholesalers. With the oil gathered by Artesian Oil Recovery,
the  Company  has  sources  for  sufficient  feed oil to supply the Nampa  plant
requirements.
         During August the officers of PDI elected to withdraw from their merger
with the Company. At the present time the Company is in litigation with PDI over
the settlement of this matter. Accordingly,  for the present time, the financial
statements  have been  restated for PDI's  discontinued  operations  pending the
resolution of the litigation.
         Operations  in the  third  quarter  of 2001  resulted  in  consolidated
revenues  of  $427,983  compared  to  $291,568  in the  third  quarter  of 2000.
Consolidated  revenues increased by $136,415 from the third quarter of 2000. The
Company had costs of sales of $50,138  during the three months  ended  September
30, 2001. These costs are for the used oil purchased,  processed and sold at the
Nampa, Idaho and Artesian facilities  beginning in 2001. EOPT's gross margin was
88% of sales.  During 2000 the Company was not buying used oil  therefore  there
was no related cost of sales.  During this time the Company was gathering  waste
oil at minimal cost.
             Selling,  general administrative expense for the three months ended
September 30, 2001,  was $499,182  compared to $924,787 for the same period last

                                       12
<PAGE>


year The decrease is due to the reduction in labor cost due to the completion of
the refinery in Nampa.
            EOPT  refines  used  oil  into  diesel  fuel,  and  other  petroleum
products.  These  products have a higher sales price than used oil alone,  which
can only be used as burner fuel or road base.
            Consolidated revenues in the first nine months of 2001 were $877,564
compared to $844,096 in the first nine months of 2000.
         The Company's  business is labor  intensive and its largest  expense is
payroll.  Included  in selling,  general  administrative  expenses  for the nine
months  ended  September  30,  2001,  is  $9,477,000  which is the  value of the
1,500,000  shares of common  stock  issued for  services  during  January  2001.
6,564,999  shares were  originally  issued to a  consultant  for  services to be
rendered to the Company,  however,  the Company  cancelled  5,364,999  shares by
agreement  with the  consultant.  The  balance of the shares  were left with the
consultant for services rendered to that point.  Without the value of the shares
issued to the consultant,  selling,  general  administrative expense fo the nine
months of 2001 would have decreased by $453,014 compared to the same nine months
of 2000. The decrease is due to the completion of the  development of the Nampa,
Idaho facility.
         The Company's  cost cutting  efforts and the Nampa  facility going into
production  have combined to decrease its net loss from operations from $633,209
in the three months ended September 30, 2000, to $127, 699 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
$1,035,166 compared to $1,341,083 for the first nine months of 2000. The Company
expects its loss to decline  even  further in the fourth  quarter of 2001 with a
full six months of  operations  in Nampa and the Artesian Oil Recovery  Company.
The Reno facility is not expected to contribute to operations  results until the
fourth quarter of 2002.

         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 expended for the electrical  production facility in the
Reno  Project,  which is currently in  litigation  for recovery of unused funds.
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.
The Company received net loan proceeds of $6,000,000 in the first nine months of
2001,  $500,000  in  October,  and the  remaining  $4,000,000  was  received  in
November.  Through  September 30, 2001, the Company has incurred  $5,416,839 for
the cost of the Reno  Project.  The terms of the funding  require the Company to
repay the full  amount  borrowed  in one year  from the date  funds  were  first
received.  The  Company  will  need to  consider  other  financing  to repay the
obligation in a timely manner.
         As reported above,  the Company issued a net of 1,500,000 shares of its
common stock for services rendered to consultants. The shares were valued at the
trading price of the shares of the date of issue.  The total value of the shares
issued for the consulting services was $9,477,000.
         The Company  generated cash from operations of $717,899 during the nine
months  ended  September  30,  2001,  compared  to using cash in  operations  of
$1,328,286 for the corresponding period in the prior year.
           It is management's intent to raise additional  capital,  through debt
and/or equity financing. There is no assurance that such funds will be available
or that the terms for such funds will be acceptable to the Company.
         The Company's accounts  receivable  increased by $388,229 from December
31, 2000,  to September  30, 2001.  The increase was the result of the Company's
expanded oil gathering business with the purchase of Artesian Oil Recovery.  The

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Company  has also  begun to  accumulate  used oil for  processing  in the  Nampa
facility therefore inventory levels increased by $105,718 in the same period.
         The Company paid $533,206 of debt to banks.  Accrued expenses increased
by $293,536 primarily due to the interest accrued on the trust fund loans in the
amount of $181,479.  This interest has been  capitalized in the cost of the Reno
Project. Accounts payable increased by $1,043,533 due to the construction of the
Reno facility.
         The Company has  recorded a loss from  discontinued  operations  in the
amount of  $2,579,600  related  to the PDI  separation.  $2,752,222  of the loss
relates to the write-off of PDI goodwill.
         The  Company is  presently  investigating,  reviewing  and  considering
additional used oil gathering facilities as well as seeking additional financing
to acquire same. No agreements have been formalized as of this time.


                           PART II - OTHER INFORMATION

Item 1.           Legal Proceedings.

         Project Development Industries, L.L.C., ("PDI") and several individuals
(prior owners of PDI) filed a federal  district court complaint  against EOPT on
September 14, 2001, in the United States  District  Court of Colorado,  Case No.
EDCV 01 WM-1714 in which  Plaintiffs  seek  declaratory  judgement,  injunction,
breach of Services Contract and unjust Enrichment.  In particular,  in August of
1999, EOPT and Plaintiffs  entered into a certain Share Purchase  Agreement that
was subsequently amended. Plaintiffs seek the Court to declare the legal meaning
and effect of certain provisions of that Agreement,  more particularly,  whether
Plaintiffs  can rescind the  Agreement,  receive  back the  ownership of PDI and
retain 7 million  shares of EOPT stock  issued for the  purchase  of PDI.  As to
other claims,  Plaintiffs  seek (a) an unstated amount of money for damages they
allegedly  incurred by EOPT's alleged breach of Services Contract  Agreement and
(b) attorney fees and costs of litigation.  EOPT has defenses and  counterclaims
which EOPT  intends to actively  pursue.  EOPT has until  December  7, 2001,  to
answer or otherwise plead to the complaint.

         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
commenced a mediation  schedule and informal  exchange of discovery  with a view
towards a mutual  settlement  of their  opposing  claims.  If the  mediation  is
unsuccessful,  LMA will file its responsive  pleadings and the case will proceed
to trial.

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


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Item 5.           Other Information.

         On  October  3,  2001,  EOPT  entered  into a  contract  with PC&E as a
division of Emerson  (formerly  Emerson  Electric) for the design,  fabrication,
installation and start up of two oil processing plants for the Reno Project. The
engineering  of the  plants  is  currently  in  progress  and EOPT is  currently
negotiating  with  different  sources for the funding of the  fabrication of the
plants.  In  addition  on October 16,  2001,  EOPT  signed a contract  with REDD
Engineering for the  engineering  and fabrication of three new columns  designed
for production of diesel and naphtha which are to be used in the Nampa plant and
the two Reno Project  plants,  and for a redesign of the Nampa plant's  existing
column for  processing  trans-mix  as well as for a new  column  for  processing
trans-mix in one of the Reno Project plants. .

         EOPT  recently  received  the last of the  required  Federal  and State
permits and approvals for construction and operation of an electrical production
facility on 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  considering  the sale of that  portion of the Reno  Project  real
property  allocated  to  the  production  of  electricity,   which  consists  of
approximately 5 acres of the project.  The EOPT property is near the entrance to
the  Tahoe-Reno   Industrial   Center,  one  of  the  largest  industrial  zoned
developments in the United States.

         On Friday  November 9, 2001,  EOPT received the remaining  $4.5 Million
dollars of the $10.5  Million  dollar loan from a trust fund for the  proceeding
with the Reno Project.  With some of the funding, EOPT closed the escrow for the
purchase of  approximately  20.6 acres of property in the Tahoe-Reno  Industrial
Park. The  development  and completion of the two oil processing  plants for the
Reno Project is scheduled for completion in the latter part of 2002.

         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 except as attached to the 8K/A report following.

          (b)       Exhibit  99.1:  Form 8-K-A dated August 28, 01 together with
                    Exhibit 99.1  attached  thereto,  both of which are attached
                    hereto.


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<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 19,  2001         By /s/ N. Tod Tripple
                                         -------------------------------------
                                             N. Tod Tripple, President and CEO


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