U.S.
      SECURITIES AND EXCHANGE COMMISSION


Washington,
      D.C. 20549




**AMENDMENT
          NO. 1 TO**


**FORM
      10-QSB**




[X]
      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)


OF
      THE
      SECURITIES EXCHANGE ACT OF 1934


For
      the
      quarterly period ended June 30, 2006





OR





[
 ]
      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)


OF
      THE
      SECURITIES EXCHANGE ACT OF 1934


For
      the
      transition period from ________ to ________










**Summit
      Environmental Corporation, Inc.**


(Exact
      name of registrant as specified in its charter)








Texas
              (state
                ofincorporation)
            333-48659
              (Commission
                File Number)
            73-1537206
              (IRS
                EmployerI.D.
                Number)




210
      South
      Green


Longview,
      TX 75601


800-522-7841


____________________________________________________


(Address
      and telephone number of registrant's principal


executive
      offices and principal place of business)








Check
      whether the issuer (1) filed all reports required to be filed by Section 13
      or 15(d) of the Exchange Act during the past twelve months (or for such shorter
      period that the registrant was required to file such reports), and (2) has
      been
      subject to such filing requirements for the past 90 days. Yes X No
      __





As
      of
      August 14, 2006, there were 26,418,687 shares of the Registrant's Common Stock,
      par value $0.001 per share, outstanding.





Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act). Yes [ ]   No [X]





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












**TABLE
      OF CONTENTS**




PagePART
                  I - FINANCIAL INFORMATION
              
              3Item
                  1. Financial Statements
              
              3Item
                  2. Management’s Discussion and Analysis or Plan of
                  Operation
              
              17Item
                  3. Controls and Procedures
              
              29PART
                  II - OTHER INFORMATION
              
              30Item
                  1. Legal Proceedings
              
              30Item
                  2. Unregistered Sales of Equity Securities
              
              31Item
                  6. Exhibits and Reports on Form 8-K
              
              31SIGNATURES
              
              34







2





**PART
      I - FINANCIAL INFORMATION**











**Item
                1.**
            
            **Financial
                Statements**





Condensed
                Balance Sheets June 30, 2006 (Unaudited) andDecember
                31, 2005 (Audited)
            
            4Statements
                of Operations (Unaudited) Three Months Ended June 30, 2006 and
                2005
            
            5Statements
                of Operations (Unaudited) Six Months Ended June 30, 2006 and
                2005
            
            6Statements
                of Cash Flows (Unaudited) Six Months Ended June 30, 2006 and
                2005
            
            7Notes
                to Financial Statements(Unaudited)
            
            8








3


**SUMMIT
        ENVIRONMENTAL CORPORATION, INC.**


**CONDENSED
        BALANCE SHEETS**
  June
                  30, 2006
                (Unaudited)
              
              
              December
                  31, 2005
                (Audited)**Assets****Current
                  Assets**Cash
                  and Cash Equivalents
              
              $
              157,232
              
              $
              316,798Accounts
                  Receivable, less allowance for doubtfulaccounts
                  of $169,317
              
              
              209,653
              
              
              356,429Inventory
              
              
              989,924
              
              
              1,056,890Restricted
                  Cash
              
              
              50,000
              
              
              50,000Prepaid
                  Expenses
              
              
              130,294
              
              
              117,932Total
                  Current Assets
              
              
              1,537,103
              
              
              1,898,049**Property
                  and Equipment at Cost**Property
                  and Equipment
              
              
              369,107
              
              
              359,962Accumulated
                  Depreciation and Amortization
              
              
              (66,377
              )
              
              (59,150
              )Net
                  Property and Equipment
              
              
              302,730
              
              
              300,812**Other
                  Assets**Prepaid
                  Royalties
              
              
              453,103
              
              
              460,354Deposits
              
              
              2,118
              
              
              2,180Patents
                  -net of accumulated amortizationof
                  $1,207,299 and $1,128,133
              
              
              1,167,701
              
              
              1,246,867Licenses-net
                  of accumulated amortizationof
                  $73,978 and $63,120
              
              
              251,742
              
              
              262,600Total
                  Other Assets
              
              
              1,874,664
              
              
              1,972,001**Total
                  Assets**
              
              $
              3,714,497
              
              $
              4,170,862**Liabilities
                  and Stockholders' Equity****Current
                  Liabilities**Accounts
                  Payable
              
              $
              180,773
              
              $
              270,478Notes
                  Payable
              
              
              472,993
              
              
              630,047Accrued
                  Liabilities
              
              
              75,651
              
              
              85,046Total
                  Current Liabilities
              
              
              729,417
              
              
              985,571**Stockholders'
                  Equity**Preferred
                  stock, par value $.001; 10,000,000shares
                  authorized, no shares issued
              
              $
              -
              
              $
              -Common
                  stock, par value $.001; 40,000,000shares
                  authorized, 25,805,893 shares issued
              
              
              25,807
              
              
              25,697Additional
                  Paid in Capital
              
              
              12,711,688
              
              
              11,490,200Accumulated
                  Deficit
              
              
              (9,727,415
              )
              
              (8,305,606
              )Treasury
                  Stock - 10,000 shares
              
              
              (25,000
              )
              
              (25,000
              )Total
                  Stockholders' Equity
              
              
              2,985,080
              
              
              3,185,291**Total
                  Liabilities and Stockholders' Equity**
              
              $
              3,714,497
              
              $
              4,170,862


*The
        accompanying notes are an integral part of this financial
        statement*




4


**SUMMIT
        ENVIRONMENTAL CORPORATION, INC.**


**STATEMENTS
        OF OPERATIONS**
 **(Unaudited)**
  **Three
                  Months Ended****June
                  30,****2006**
              
              
              **2005****Sales**
              
              $
              127,311
              
              $
              145,171**Returns
                  and Allowances**
              
              
              -
              
              
              -**Net
                  Sales**
              
              
              127,311
              
              
              145,171**Cost
                  of Sales**Cost
                  of sales
              
              
              41,879
              
              
              65,255**Gross
                  Profit**
              
              
              85,432
              
              
              79,916**Operating
                  Expenses**Selling,
                  general, and administrative expenses
              
              
              625,850
              
              
              329,646Amortization
              
              
              45,012
              
              
              42,503Depreciation
              
              
              3,614
              
              
              2,939Total
                  operating expense
              
              
              674,476
              
              
              375,088**Net
                  Earnings (Loss) from Operations**
              
              
              (589,044
              )
              
              (295,172
              )**Other
                  Income (Expense)**Interest
                  income
              
              
              2,953
              
              
              1,015Interest
                  expense
              
              
              (36,364
              )
              
              (2,635
              )Royalty
                  income
              
              
              507Gain/Loss
                  on Sale of Asset
              
              
              -
              
              
              -Miscellaneous
              
              
              (20,585
              )
              
              (1,182
              )Total
                  other income (expense)
              
              
              (53,489
              )
              
              (2,802
              )**Net
                  Loss**
              
              $
              (642,533
              )
              $
              (297,974
              )**Net
                  Earnings (Loss) per Share**
              
              $
              (0.02
              )
              $
              (0.01
              )**Weighted
                  Average Shares**
              
              
              25,799,847
              
              
              23,365,572
















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




5


**SUMMIT
        ENVIRONMENTAL CORPORATION, INC.**


**STATEMENTS
        OF OPERATIONS**
 **(Unaudited)**
  **Six
                  Months Ended****June
                  30,****2006**
              
              
              **2005****Sales**
              
              $
              327,613
              
              $
              355,356**Returns
                  and Allowances**
              
              
              -
              
              
              (306
              )**Net
                  Sales**
              
              
              327,613
              
              
              355,050**Cost
                  of Sales**Cost
                  of sales
              
              
              159,184
              
              
              196,745**Gross
                  Profit**
              
              
              168,429
              
              
              158,305**Operating
                  Expenses**Selling,
                  general, and administrative expenses
              
              
              1,386,720
              
              
              543,850Amortization
              
              
              90,024
              
              
              83,087Depreciation
              
              
              7,227
              
              
              5,744Total
                  operating expense
              
              
              1,483,971
              
              
              632,681**Net
                  Earnings (Loss) from Operations**
              
              
              (1,315,542
              )
              
              (474,376
              )**Other
                  Income (Expense)**Interest
                  income
              
              
              4,534
              
              
              2,120Interest
                  expense
              
              
              (63,588
              )
              
              (3,442
              )Royalty
                  income
              
              
              1,475Gain/Loss
                  on Sale of Asset
              
              
              -
              
              
              -Miscellaneous
              
              
              (48,690
              )
              
              (3,526
              )Total
                  other income (expense)
              
              
              (106,269
              )
              
              (4,848
              )**Net
                  Loss**
              
              $
              (1,421,811
              )
              $
              (479,224
              )**Net
                  Earnings (Loss) per Share**
              
              $
              (0.06
              )
              $
              (0.02
              )**Weighted
                  Average Shares**
              
              
              25,748,137
              
              
              23,170,870
















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




6


**SUMMIT
        ENVIRONMENTAL CORPORATION, INC.**


**STATEMENTS
        OF CASH FLOWS**
 **(Unaudited)**
  **Six
                  Months Ended****June
                  30,****2006**
              
              
              **2005****Cash
                  Flows from Operating Activities**Net
                  loss
              
              $
              (1,421,811
              )
              $
              (479,224
              )Adjustments
                  to reconcile net earnings (loss) to cashused
                  in operating activitiesAmortization
              
              
              90,024
              
              
              83,087Bad
                  debt expenseProvision
                  for inventory lossesCumulative
                  effect of change in accounting principle
              
              
              -
              
              
              -Depreciation
              
              
              7,227
              
              
              5,744Gain
                  (loss) on sale of assets
              
              
              -
              
              
              -Recission
                  of Lady Burd asset purchase agreement
              
              
              -
              
              
              -Common
                  stock and options issued for services
              
              
              478,157
              
              
              33,075Change
                  in assets and liabilitiesAccounts
                  receivable
              
              
              146,776
              
              
              (25,367
              )Inventory
              
              
              66,966
              
              
              (216,320
              )Prepaid
                  expenses and deposits
              
              
              (5,049
              )
              
              17,009Accounts
                  payable
              
              
              (89,705
              )
              
              85,663Accrued
                  liabilities
              
              
              (9,395
              )
              
              4,891Net
                  cash used in operating activities
              
              
              (736,810
              )
              
              (491,442
              )**Cash
                  Flows from Investing Activities**Acquisition
                  of property and equipment
              
              
              (9,143
              )
              
              (1,227
              )Organization
                  costs
              
              
              -
              
              
              -Acquisition
                  of licenses/patents
              
              
              
              
              
              -Proceeds
                  from sale of equipment
              
              
              -
              
              
              -Net
                  cash used in investing activities
              
              
              (9,143
              )
              
              (1,227
              )**Cash
                  Flows from Financing Activities**Loan
                  proceeds
              
              
              
              
              
              150,000Loan
                  principal repayments
              
              
              (157,054
              )
              
              -Loan
                  principal repayments - related party
              
              
              -
              
              
              -Proceeds
                  from sale of stock
              
              
              743,441
              
              
              288,000Net
                  cash provided by financing activities
              
              
              586,387
              
              
              438,000**Net
                  Increase (Decrease) in Cash**
              
              
              (159,566
              )
              
              (54,669
              )Cash
                  - Beginning of Period
              
              
              316,798
              
              
              460,257Cash
                  - End of Period
              
              $
              157,232
              
              $
              405,588










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




7


SUMMIT
        ENVIRONMENTAL CORPORATION, INC.
 NOTES
        TO
        THE CONDENSED FINANCIAL STATEMENTS
 June
        30,
        2006
 (Unaudited)
  
 The
        balance sheet of Summit Environmental Corporation, Inc., the “company”, at
        December 31, 2005 has been taken from the company’s audited financial statements
        at that date. The balance sheet at June 30, 2006, the statement of operations
        for the three months and six months ended June 30, 2006, and the statement
        of
        cash flows for the six months ended June 30, 2006 have been prepared by the
        company without audit. The financial statements have been prepared in conformity
        with accounting principles generally accepted in the United States of America
        for interim financial reporting. Accordingly, they do not include all of
        the
        information and notes required by accounting principles generally accepted
        in
        the United States of America for complete financial statements. These financial
        statements contain such adjustments as management feels are necessary to
        present
        fairly, in all material aspects, the financial position and results of operation
        of the company. Operating results for the three and six months ended June
        30,
        2006 are not necessarily indicative of the results, which may be expected
        for
        the fiscal year ended December 31, 2006. The interim financial statements
        should
        be read in conjunction with the audited financial statements of the company
        for
        the year ended December 31, 2005.
 
 1.
              SIGNIFICANT
                  ACCOUNTING POLICIES
 
 Business  Activity
 
 Summit
                  Environmental Corporation, Inc. (the “company”) was organized in
                  accordance with the Business Corporation Act of the State of Texas
                  on
                  February 2, 1998, for the purpose of merging (the “merger”) with Summit
                  Technologies, Inc., a Texas corporation. The company continued
                  to exist as
                  the surviving corporation under its present name pursuant to the
                  provisions of the Texas Business Corporation Act. The merger was
                  effected
                  on December 2, 1998 as a tax-free reorganization accounted for
                  as a
                  pooling of interests.
 
 The
                  company markets fire suppression materials, environmentally safe
                  cleaning
                  chemicals, and natural, botanical cosmetic products. The products
                  are
                  proprietary or are under exclusive license. Marketing efforts include
                  “infomercials” and other television and radio promotion, videotapes, and
                  personal demonstrations. Products are marketed domestically and
                  internationally.
 
 RevenueRecognition
 
 The
                  Company follows the provisions of SEC Staff Accounting Bulletin
                  (SAB) No.
                  104,*"Revenue Recognition"*which was issued in December 2003, and recognizes revenues when
                  its
                  products are shipped to customers (terms are FOB shipping point),
                  at which
                  time evidence of a completed transaction and customer acceptance
                  exists
                  and when title passes. Appropriate provisions for estimated returns
                  of
                  product and other allowances have been made in the accompanying
                  financial
                  statements. SAB No. 104 codified, revised and rescinded certain
                  sections
                  of Staff Accounting Bulletin (SAB) No. 101,*"Revenue Recognition in Financial Statements",*in
                  order to make this interpretive guidance consistent with current
                  authoritative accounting guidance and SEC rules and
                  regulations.
  8
 SUMMIT
          ENVIRONMENTAL CORPORATION, INC.
 NOTES
          TO
          THE CONDENSED FINANCIAL STATEMENTS
 June
          30,
          2006
 (Unaudited)
 Revenues
                  earned under royalty agreements are recognized when the respective
                  products are sold and the royalty amounts attributable to the Company
                  have
                  been determined.
 
 Revenues
                  earned under consulting contracts are recognized when the services
                  are
                  completed and the amounts due to the Company have been
                  determined.
 
 The
                  Company provides a reserve for sales returns and allowances in
                  the same
                  period as the related revenues are recognized, based on individual
                  circumstances and historical
                  experience.
 
 Cash
                  and cash equivalents
 
 The
                  company maintains cash balances at financial institutions located
                  in
                  Longview, Texas, which at times may exceed federally insured limits.
                  The
                  company has not experienced any losses in such accounts and believes
                  it is
                  not exposed to any significant credit risk on cash and cash
                  equivalents.
 
 The
                  company considers all highly liquid investments with a maturity
                  of three
                  months or less when purchased to be cash
                  equivalents.
 
 AccountsReceivable
 
 The
                  Company records accounts receivable at net realizable value. This
                  value
                  includes an appropriate allowance for estimated uncollectible accounts
                  to
                  reflect any loss anticipated on the accounts receivable balances
                  andcharged
                  to the provision for doubtful accounts. The Company calculates
                  this
                  allowance based on historical write-offs, level of past due accounts
                  and
                  relationships with and economic status of the
                  customers.
 
 As
                  of December 31, 2005, the Company has financed, with recourse,
                  certain
                  accounts receivable. The related credit facilities are subject
                  to recourse
                  in that the Company is obligated to pay amounts due to the participating
                  financial institution in the event the customer fails to pay. The
                  outstanding balance on such receivables at June 30, 2006, was $44,755.
                  Fees associated with these transactions are recorded as interest
                  expense
                  in the statement of operations. The agreement allows the Company
                  to
                  finance an aggregate amount of $1,000,000.
 9
 SUMMIT
            ENVIRONMENTAL CORPORATION, INC.
 NOTES
            TO
            THE CONDENSED FINANCIAL STATEMENTS
 June
            30,
            2006
 (Unaudited)
 Inventory
 
 Inventory
                  is recorded at the lower of cost or market, with the cost being
                  determined
                  by the first-in, first-out method.
 
 The
                  Company periodically reviews inventory to determine which products,
                  if
                  any, are no longer marketable. The Company establishes a reserve
                  for
                  obsolete inventory to reduce its cost to management’s estimate of its net
                  realizable value based on forecasts of sales for ensuing years
                  and other
                  factors.
  IntangibleAssets
 
 Patents
                  and licenses costs are recorded at cost. Amortization is computed
                  on the
                  straight-line method over the identifiable lives of the patents
                  and
                  licenses. The Company has adopted the provisions of Statement of
                  Financial
                  Accounting Standards (SFAS) No. 142,*Goodwill and Other Intangible Assets,*effective
                  for periods beginning January 1, 2002, and thereafter. SFAS 142
                  addresses
                  financial accounting and reporting for acquired goodwill and other
                  intangible assets and supersedes APB Opinion No. 17,*Intangible
                  Assets*.
                  Specifically, the statement addresses how intangible assets that
                  are
                  acquired should be accounted for in financial statements upon their
                  acquisition, as well as how goodwill and other intangible assets
                  should be
                  accounted for after they have been initially recognized in the
                  financial
                  statements. The statement requires intangible assets to be reviewed
                  for
                  impairment whenever events or changes in circumstances indicate
                  that their
                  carrying amounts may not be recoverable and that a loss shall be
                  recognized if the carrying amount of an intangible exceeds its
                  fair
                  value.
 
 IncomeTaxes
 
 The
                  Company provides for income taxes under the asset and liability
                  method.
                  Under the asset and liability method, deferred tax assets and liabilities
                  are recognized for the future tax consequences attributable to
                  differences
                  between the financial statement carrying amounts of existing assets
                  and
                  liabilities and their respective tax bases. Deferred tax assets
                  and
                  liabilities are measured using enacted tax rates expected to apply
                  to
                  taxable income in the years in which those temporary differences
                  are
                  expected to be recorded or settled. The effect on deferred tax
                  assets and
                  liabilities of a change in tax rates is recognized in income in
                  the period
                  that includes the enactment date. Valuation allowances are recognized
                  to
                  limit recognition of deferred tax assets where appropriate. Such
                  allowances may be reversed when circumstances provide evidence
                  that the
                  deferred tax assets will more likely than not be
                  realized.
  10
 SUMMIT
            ENVIRONMENTAL CORPORATION, INC.
 NOTES
            TO
            THE CONDENSED FINANCIAL STATEMENTS
 June
            30,
            2006
 (Unaudited)
 
 PropertyandEquipment
 
 Depreciation
                  and amortization are provided in amounts sufficient to relate the
                  cost of
                  depreciable assets to operations over their estimated service lives
                  by the
                  straight-line method.
 
 Major
                  repairs or replacements of property and equipment are capitalized.
                  Maintenance, repairs and minor replacements are charged to operations
                  as
                  incurred.
 
 When
                  units of property are retired or otherwise disposed of, their cost
                  and
                  related accumulated depreciation are removed from the accounts
                  and any
                  resulting gain or loss is included in
                  operations.
 
 The
        estimated service lives used in determining depreciation and amortization
        are:
  Description
                Estimated
                    Service LifeOffice
                    furniture and equipment
                5-7
                    yearsBuilding
                    and improvements
                39
                    years
 Advertising  and  Marketing
 
 Advertising
                  and marketing costs are expensed as incurred, which totaled $73,161,
                  $166,878, $27,471 and $53,697 for the three and six months ended
                  June 30,
                  2006 and 2005, respectively.
 
 Shipping
                  and handling costs
 
 The
                  Company includes shipping and handling costs in “Selling, general and
                  administrative expenses” for purposes of income statement presentation.
                  Shipping and handling costs were approximately $6,000, $19,700,
                  $8,500 and
                  $13,400 for the three and six months ended June 30, 2006 and 2005,
                  respectively.
 
 Research
                  and development costs
 
 The
                  costs associated with research and development activities are expensed
                  as
                  incurred. Total research and development costs were approximately
                  $28,500,
                  $29,000, $22,000 and $28,000, for the three and six months ended
                  June 30,
                  2006 and 2005, respectively.
  11
 SUMMIT
              ENVIRONMENTAL CORPORATION, INC.
 NOTES
              TO
              THE CONDENSED FINANCIAL STATEMENTS
 June
              30,
              2006
 (Unaudited)
 Use  of  Estimates
 
 The
                  preparation of financial statements in conformity with accounting
                  principles generally accepted in the United States of America requires
                  management to make estimates and assumptions that affect certain
                  reported
                  amounts and disclosures. Accordingly, actual results could differ
                  from
                  those estimates.
 
 Per
        Share Information
 
 The
                  Company has adopted the provisions of Statement of Financial Accounting
                  Standards (SFAS) No. 128, "*Earnings
                  per Share*."
                  SFAS No. 128 requires the presentation of basic earnings (loss)
                  per share
                  (EPS) and diluted EPS. Basic EPS iscalculated
                  by dividing net income or loss (available to common stockholders)
                  by the
                  weighted average number of common shares outstanding for the period.
                  Diluted earnings per share reflects the potential dilution that
                  could
                  occur if securities or other contracts to issue common stock, such
                  as
                  stock options, warrants, convertible preferred stock and convertible
                  debentures, were exercised or converted into common stock. Potential
                  dilutive securities (stock warrants, stock options) have not been
                  considered since the Company reported a net loss and, according,
                  their
                  effect would be antidilutive.
 
 Stock-Based
        Compensation
 
 Effective
        January 1, 2006, the Company adopted the provisions of SFAS No. 123R,
        " *Share-Based
        Payment* ,"
        which
        is a revision of SFAS No. 123, " *Accounting
        for Stock-Based Compensation* ."
        This
        statement now requires the Company to recognize compensation costs related
        to
        stock-based payment transactions (i.e. granting of stock options and warrants
        to
        employees) in the financial statements. With limited exceptions, the amount
        of
        compensation cost will be measured based on the grant-date fair value of
        the
        equity or liability instruments issued. In addition, liability awards will
        be
        remeasured each reporting period. Compensation cost will be recognized over
        the
        period that an employee provides services in exchange for the award.
 
 The
        Company has adopted the Modified Prospective Application method of accounting
        and disclosing transition to this new accounting policy. Under this method,
        this
        statement applies to new awards and to awards modified, repurchased, or
        cancelled after January 1, 2006. Additionally, compensation cost for the
        portion
        of awards for which the requisite service has not been rendered that are
        outstanding as of January 1, 2006, would be recognized as the requisite service
        is rendered after 2005. The compensation cost for those earlier awards would
        be
        attributed to periods beginning after 2005. The Company did not have any
        options
        outstanding as of January 1, 2006, for which the requisite service had not
        been
        performed.
 12
 SUMMIT
              ENVIRONMENTAL CORPORATION, INC.
 NOTES
              TO
              THE CONDENSED FINANCIAL STATEMENTS
 June
              30,
              2006
 (Unaudited)
  The
        amount of compensation expense related to options issued for services during
        the
        three and six months ended June 30, 2006, and recognized in the financial
        statements, was $100,029, or $.004 per share, and $200,058, or $.004 per
        share.
 2.
                PATENT
 
 On
                  November 2, 1998, the company purchased via issuance of common
                  stock and a
                  note payable, patent rights and intellectual property rights to
                  various
                  fire suppression products for a purchase price of $2,375,000. This
                  purchase required initial cash payments of $150,000 and 1,625,000
                  shares
                  of common stock of the company to be issued and delivered to BioGenesis
                  Enterprises, Inc. The estimated aggregate amortization expense
                  of patent
                  rights for each of the five succeeding years is $158,333 per year.
                  Amortization expense was $39,583 for the three month periods ended
                  June
                  30, 2006 and 2005, and $75,592 and $77,379 for the six month periods
                  ended
                  June 30, 2006 and 2005,
                  respectively.
 
 3.
                LICENSES
 
 Prior
                  to 2005, licenses for exclusive marketing rights to various products
                  have
                  been acquired for fees totaling $175,200 from related parties.
                  During
                  2005, the Company purchased a license for exclusive marketing and
                  development rights to certain proprietary trade secret chemical
                  formulations. The license was acquired for 240,000 shares of common
                  stock
                  and was valued at $150,000 based on the stock price at that time.
                  The
                  prices paid were demanded by the seller. The company is the
                  manufacturer/supplier of the products. The estimated aggregate
                  amortization expense of licenses for each of the five succeeding
                  years is
                  $21,715 per year. The weighted-average amortization period for
                  licenses is
                  15 years. Amortization expense was $5,429 for the three month periods
                  ended June 30, 2006 and 2005, and $10,858 for the six month periods
                  ended
                  June 30, 2006 and 2005.
 
 Worldwide
                  exclusive marketing rights to BioRemediation Technology developed
                  by
                  Mohsen C. Amiran, Ph.D. were acquired for stock in the amount of
                  360,000
                  shares and warrants for 180,000 shares of stock exercisable at
                  $1.00 per
                  share during the first quarter of
                  2003.
 
 During
                  the first quarter of 2006, the Company entered into an agreement
                  with
                  BioGenesis Enterprises, Inc. for the exclusive license to use and
                  implement certain proprietary chemicals, and a marketing and technology
                  license agreement with Asah Terra Nigeria Joint Venture #1, Inc.
                  The
                  license with BioGenesis is not in effect as of June 30, 2006 (see
                  Footnote
                  9). The provisions of these agreements are disclosed in previously
                  filed
                  Forms 8-K.
  13
 SUMMIT
              ENVIRONMENTAL CORPORATION, INC.
 NOTES
              TO
              THE CONDENSED FINANCIAL STATEMENTS
 June
              30,
              2006
 (Unaudited)
 4.
                    NOTES PAYABLE
 As
                    of June 30, 2006, notes payable consisted of the
                    following:Note
                    payable, Pacific Business Capital Corporation, duein
                    monthly installments of $8,500, including interest at36%,
                    maturing June 2006. Secured by building.
                
                $
                242,338Note
                    payable, Austin Bank, interest is payable monthly at9.25%,
                    with a balloon payment due August 2006. Secured bya
                    $50,000 certificate of deposit at Austin Bank and thepersonal
                    guaranty of a stockholder.
                
                
                185,900Note
                    payable, Pacific Business Capital Corporation, dueon
                    demand. Interest is computed based on the accountsreceivable
                    purchase discount rate of 1.5% plus an additional.1%
                    per day for past-due accounts. Secured by the Company’saccounts
                    receivable, inventory, property and equipment and theguaranty
                    of one of its officers.
                
                
                44,755472,993Less
                    current maturities
                
                
                472,993Non-current
                    maturities
                
                $
                0
  The
        building loan payable to Pacific Business Capital
 Corporation
        is expected to be refinanced with a $560,000 note
 payable
        to Paul and Gloria Burke, due in monthly
 installments
        of $6,561, including interest at 13%. The
 amortization
        period is 20 years and the maturity date is
 60
        months
        from the funding date. Secured by
 the
        building and the guaranty of one of its officers.
 This
        loan
        has not been funded as of August 21, 2006.
 
 5.
                  LEASES
 
 The
                  company is obligated under various operating leases for equipment,
                  vehicles, and office and warehouse space. Rent expense for all
                  operating
                  leases was $6,017, $13,500, 14,501 and $28,153 for the three and
                  six
                  months ended June 30, 2006 and 2005,
                  respectively.
  14
 SUMMIT
              ENVIRONMENTAL CORPORATION, INC.
 NOTES
              TO
              THE CONDENSED FINANCIAL STATEMENTS
 June
              30,
              2006
 (Unaudited)
  6.
                  COMMON STOCK
 Private
        Placement
 
 During
                  the first quarter of 2006, 1,001,669 subscriptions to shares of
                  common
                  stock were sold in a private placement. During the second quarter
                  of 2006,
                  60,000 subscriptions to shares of common stock were sold in a private
                  placement.
 
 Common
        Stock Options
 
 The
                  sole director and stockholders approved the 1998 Stock Option Plan
                  (the
                  “Plan”) of the company whereby, at the discretion of the directors or
                  of a
                  Stock Option Committee appointed by the board of directors, invited
                  employees of the company or directors of the company or consultants
                  to the
                  company will have the option of subscribing to common shares of
                  the
                  company based on a price determined by the directors or Stock Option
                  Committee. The number of shares subject to the Plan is
                  500,000.
 
 In
                  February 2004, the board of directors adopted the 2004 Stock Option
                  Plan
                  (the “2004 Plan”). The number of shares subject to the 2004 Plan is
                  1,000,000.
 
 During
        January 2006, the Board approved the issuance of 440,000 options to purchase
        shares of common stock at $.92, in exchange for services to be rendered during
        2006.
 
 At
                  June 30, 2006, there were 385,000 options to purchase shares of
                  common
                  stock outstanding pursuant to the Plan and 1,220,000 options to
                  purchase
                  shares of common stock outstanding pursuant to the 2004
                  Plan.
 
 Warrants
 
 There
                  were 4,626,776 warrants outstanding at June 30, 2006, 3,565,107
                  warrants
                  exercisable at $0.50 per share through December 31, 2006 and 1,061,669
                  warrants exercisable at $2.00 per share through March 3,
                  2007.
 7.
                  RELATED
                      PARTY TRANSACTIONS
 The
        following transactions occurred between the company and related
        parties:
 
 The
                  company and another business with common shareholders share office
                  space
                  and the related expenses.
 15
 SUMMIT
              ENVIRONMENTAL CORPORATION, INC.
 NOTES
              TO
              THE CONDENSED FINANCIAL STATEMENTS
 June
              30,
              2006
 (Unaudited)
 
 The
        company acquired a patent from BioGenesis Enterprises, Inc. (BioGenesis)
        on
        November 2, 1998 (see Note 2) pursuant to which advanced royalty fees totaling
        $500,000 were paid. The purchase agreement requires the company to pay
        BioGenesis a periodic royalty of $.40 per 16-oz. can and an equivalent
        (approximately 7 percent) on all other product categories using the fire
        suppressant technology. One-half of all periodic royalty fees due to BioGenesis
        will be credited against the advance royalty fee (until fully recovered)
        and
        one-half will be paid to BioGenesis in cash on the 30th of each month based
        upon
        invoiced sales through the close of the preceding month. The company has
        prepaid
        royalties to BioGenesis totaling $460,354 as of December 31, 2005 and $453,103
        as of June 30, 2006. Included in accounts payable is $3,143 due to BioGenesis
        at
        June 30, 2006, for goods received and royalties due. We credited against
        the
        advance royalties $3,143 for the second quarter of 2006 and $7,527 for the
        second quarter of 2005. The product certification process that the Company
        was
        subjected to took 5-1/2 years to complete before it was allowed to begin
        test
        marketing, which first occurred in 2004.
 
 8.
                CONCENTRATIONS
 Approximately
                  77 percent of the sales during the six months ended June 30, 2006
                  were
                  made to three customers and 83 percent of the sales during the
                  six months
                  ended June 30, 2005 were made to two
                  customers.
 
 9.
              COMMITMENTS
                  AND CONTENGENCIES
 
 The
                  Company has a commitment to BioGenesis Enterprises, Inc. for the
                  acquisition of certain proprietary remediation technology licenses
                  in
                  exchange for 500,000 shares of the Company’s common stock and 500,000
                  stock purchase options. The transaction has not been completed
                  at June 30,
                  2006.


16


**Item
      2.**   **Management's
      Discussion and Analysis or Plan of Operation**





*The
      following discussion and analysis should be read in conjunction with the
      financial statements and the accompanying notes thereto for the six-month period
      ended June 30, 2006 and is qualified in its entirety by the foregoing and by
      more detailed financial information appearing elsewhere. See "Item 1. Financial
      Statements." The discussion includes management’s expectations for the
      future.*





**Results
      of Operations - Second Quarter of 2006 Compared to Second Quarter of
      2005**





Summit
      Environmental’s sales for Q2 2006 were 88 percent of Q2 2005 sales - $127,311 in
      Q2 2006 compared to $145,171 in Q2 2005. Gross margin was 67 percent for Q2
      2006
      compared to 55.0 percent for Q2 2005.




Operating
      expenses increased 80 percent during Q2 2006 over Q2 2005. Operating expenses
      increased by $299,388 from $375,088 in Q2 2005 to $674,476 in Q2 2006. The
      increase was due primarily to the following: Marketing and travel expenses
      increased due to the efforts headed up by Paul Kowalenko (Director of
      International and Forest Service Sales), Robert Heggie (Director of Retail
      Sales
      Development) and Gordon Lewis (Director of Remediation and Engineering). Our
      new
      completed products liability insurance required a $41,000 deposit in January
      which will be expensed over the year. Consulting fees and travel reimbursement
      expense increased due to four persons now being involved in marketing where
      previously there had only been one.





Amortization
      and depreciation were $48,626 in Q2 2006 and $45,442 in Q2 2005.





Summit
      had a net loss of $642,533 for Q2 2006, up from a net loss of $297,975 for
      Q2
      2005, a $344,558 or a 116 percent increase. The increase in the net loss was
      attributed primarily to our increase in marketing and associated travel expense.
      We added Gordon Lewis as director of Engineering and Remediation in November
      of
      2005 and Rob Heggie as Director of Retails Sales and New Product Development.
      Through Gordon Lewis, we have opened up environmental work in Nigeria with
      Shell
      Oil of Nigeria. An April 2006 trip was prepared for in February and March with
      materials and equipment being purchased and shipped to Nigeria. Rob Heggie
      has
      been instrumental in working with management in developing a new line of
      environmental aerosol products. The company introduced the first of five new
      products in May. The first quarter saw expense for the development of packaging,
      both the can design and box design. There have been artwork, dies and set up
      expenses for the new products. We have purchased an initial inventory of can
      shells for MoldOut, our first of the five new products. Additionally, through
      Mr. Heggie’s efforts we have begun to develop products for a company that makes
      fire resistant nylon covering for wiring harnesses in aircraft. Another product
      we have begun to develop is a retardant for the materials used in the mattress
      and bedding industry. We are developing polymers with fire retardant material
      that would be added to the materials in liquid state as the materials are made
      to produce mattresses and pillows. Chemicals that are currently being used
      produce toxic gasses when burning. There are environmental regulations in
      California currently requiring fire retardant materials to be used in the
      manufacturing process. These required regulations are scheduled to be required
      nationwide by the end of 2007 according to current industry requirements.
      Additionally, we are developing an aerosol product to aid in the elimination
      of
      bed bugs, lice and mites. Meetings with industry leaders in these fields
      required a considerable amount of travel.





17


**Results
      of Operations - First Two Quarters of 2006 Compared to First Two Quarters of
      2005**





Summit
      Environmental’s sales for the first two quarters of 2006 were 92 percent of the
      first two quarters of 2005 sales - $327,613 in the first two quarters of 2006
      compared to $355,050 in the first two quarters of 2005. Gross margin was 51
      percent for the six months ended June 30, 2006 compared to 44.6 percent for
      the
      six months ended June 30, 2005. Sales have not reached a level to generate
      consistent gross margin percentages.




Operating
      expenses increased 135 percent during the first two quarters of 2006 over the
      first two quarters of 2005. Operating expenses increased by $851,290 from
      $632,681 in the six months ended June 30, 2005 to $1,483,971 in the six months
      ended June 30, 2006. The increase was due primarily the addition of Gordon
      Lewis
      and Rob Heggie the directors of engineering/remediation and retail sales
      development respectively. We have increased our marketing efforts that now
      involve weekly travel of Mr. Lewis, Mr. Heggie, Paul Kowalenko, director of
      international sales and certifications and Keith Parker, our CEO. We have opened
      venues in remediation and fire retardancy in the aviation industry and mattress
      industry, expanded our efforts in the wildland/wildfire environment with an
      aggressive program of infield demonstrations and sales meetings with the United
      States Forest Service, the U.S. Department of Interior Bureau of Land Management
      and the California Department of Forestry. The use of FlameOut by both aircraft
      and helicopter has begun in the above mentioned venues with favorable results
      on
      fires most recently (August 2006) in Northern California. Mr. Lewis, Dr. Amiran
      and Keith Parker made a trip to Nigeria in May for the purpose of building
      a
      test site for remediation of oil field site waste contamination. Mr. Lewis
      was
      in Nigeria for a month. We have achieved better than expected or anticipated
      levels of reduction in the TPH (total petroleum hydrocarbon) on the test site.
      We have developed the prototypes for five new aerosol products which utilize
      the
      technology used in New Orleans in our 2005 cleanup of the New Orleans Arena
      after Hurricane Katrina. We have completed the preparation for a new DR (direct
      response) television sales campaign featuring FlameOut Aerosol Fire
      Extinguishers. Our expenses included commercial development and filming,
      fulfillment center setup and purchase of prepaid long distance time from the
      call center. With all of the increased business volume potential beginning
      is
      September 2006, our completed product liability insurance premiums increased
      to
      $100,000 for 2006 with over $80,000 of the premium paid by the end of June
      2006.





Amortization
      and depreciation were $97,251 in the first six months of 2006 and $88,831 in
      the
      first six months of 2005.





Summit
      had a net loss from operations of $1,421,811 for the first two quarters of
      2006,
      up from a net loss of $479,224 for the first two quarters of 2005, a $942,587
      or
      a 197 percent increase. The increase in the net loss was attributed primarily
      to
      the additional marketing, travel, insurance premium, television commercial,
      fulfillment and new product development expense outlined above.





18


**OVERVIEW
      - RECENT DEVELOPMENTS**





In
      2006
      we began to introduce a product and service expansion developed during the
      4 th Quarter
      of 2005. The areas for new products and services were divided into three areas:
      International and Forest Service Sales, Retail Business Development and
      Environmental Hazard Remediation.





Paul
      Kowalenko is the company’s Director for International and Forest Service related
      sales. Paul is also involved with new product certifications and the
      introduction of FlameOut to NASCAR in 2006. In 2005, a new type of aircraft
      began to emerge as the next tool for wildland wildfires. These aircraft are
      ST-802s by name and broadly referred to as SEATS. We provided certification
      materials, marketing materials and video presentations to various SEAT base
      directors in West Texas and New Mexico in late February. Air drops were
      conducted from these new AT-802 planes in late April. U.S. Forest Service and
      Bureau of Land Management personnel were present for the demonstrations. The
      observation was, that with FlameOut added to water, significant amounts of
      water
      collected on the ground versus nothing more than mist from the plain water
      drops. Due to FlameOut’s biodegradation properties, FlameOut is being looked at
      additionally as a short-term retardant. We make no claims for our product being
      a retardant but that of a fire suppressor. However, due to the encapsulation
      and
      emulsification capabilities and biodegradation, a residual of FlameOut is a
      temporary retardancy. On June 1, 2006 we received our first GSA contract order
      for FlameOut from the U.S. Department of Interior , Bureau of Land Management.





Paul
      met
      with the CDF (California Department of Forestry) in July 2006. Test drops from
      air tankers and helicopters with water drop buckets have been scheduled since
      Paul’s meeting. The outbreak of fires in California has made setting the
      timetable for the drop test, in order to prove the benefit of our technology,
      frustrating to the company. The years of previous methods have shown that water
      cannot be dropped from the air and be strategically placed on the ground. The
      same thesis exists when foam suppressants are added to the water. FlameOut
      consistently provides visual evidence that no longer supports this 50-year-old
      method of attempting to combat fires. FlameOut, unlike other fire foam
      suppressing agents, possesses technological capabilities, found in no other
      products. FlameOut is an encapsulator and a cooling agent. When dropped from
      an
      airplane the addition of FlameOut to water creates a “thunderstorm” or “wind
      shear” condition. When you consider that heat rises and the additional cooling
      capabilities that FlameOut gives the water, FlameOut slams to the ground
      creating a foam blanket (if from CAF system) or saturates the ground (if by
      open
      hatch type drop). The amount of product making its way to the ground leaves
      observers astounded. We are spending an enormous amount of time and resources
      continuing to penetrate the 50-year-old bureaucratic method resistance to
      change. When FlameOut is dropped, it will lay a wet line or foam blanket
      (depending on the dispensing method employed) on the ground that will protect
      property, create instantaneous fire breaks, save resources in both property
      and
      finances and perhaps stop a catastrophic disaster, in an environmentally safe
      manner.





Robert
      Heggie, Director of Retail Sales Development, heads our efforts in several
      new
      areas we are developing. One area is that of environmental aerosol cleaning
      and
      problem-solving products for use in and around the home. Our new category name
      has changed from what was previously identified as Summit’s Aerosol Fire
      Fighting Technology to Summit’s “FlameOut Family of Products” featuring
      environmental aerosol technology. The new aerosol products showcase the products
      we used in the cleanup project of the New Orleans Arena after Hurricane Katrina.
      All of these products feature FlameOut as the carrying agent for other
      remediation chemicals which are all non-toxic. The products in the line are
      named: OdorOut, MoldOut, CleanOut, SpotOut and OilOut. OdorOut began being
      marketed separately to veterinary hospitals as a stand alone product in May
      2006.





19


In
      May
      2006, we were invited to Texas A&M University School of Veterinary Medicine.
      We utilized two products we used in New Orleans during September and October
      2005 in the aftermath of Hurricane Katrina. We were contracted by Superdome
      Management Group (SMG) to clean the New Orleans Arena where the NBA Hornets
      play
      basketball. Two of the products used there were Ultimate Odor Control 1106
      and
      Ultimate Clean Remediation 850. These products remediate odors and solid waste
      and biodegrade the matter from inorganic to organic in the process. At A&M
      we are conducting tests for anticipated letters of recommendation from the
      pathology departments, small and large animal hospitals. These recommendations
      will be part of our marketing for a niche market of these products through
      veterinary hospitals for use in the hospitals. Also hospitals will be wholesale
      dealers to deliver these same products to consumers.





We
      conducted introductory meetings in two new markets where our polymer fire
      retardant technology can be used to develop, for specific industries, products
      that will not burn. One use is for specialized sleeves or jackets used as wiring
      harness groupings of cables in the aviation industry. Our director of research
      and development, Dr. Mohsen Amiran, is developing a spray material that can
      be
      used to slow down the burn-through process for a nylon thread that is used
      to
      make these harnesses. Our goal is to produce retardant base material to be
      added
      to liquids during the manufacturing process in order to make finished products
      such as threads and chording fire retardant. Initial material samples were
      pre-tested by our customer and then submitted by them to the FAA for pre-burn
      certification tests. Several preliminary reports and results from our customer
      are very favorable. This success allows us to move forward and is discussed
      in
      the Outlook section.





We
      will
      announce the customer in a news release when our customer is ready to grant
      us
      permission for the release.





An
      additional venue is the introduction of the same polymer technology to the
      bedding and mattress industry. A new federal law prohibits the use of chemicals
      that produce toxic by-products when bedding and mattresses burn. Our polymer
      fire retardant does not produce toxic by-products. Additionally, we will be
      developing an additional aerosol product that would prevent the reproduction
      and
      manifestation of bed bugs, mites and lice, which is a major issue within the
      bedding and mattress industry.





In
      both
      of these newly identified aviation and bedding and mattress venues, we have
      aligned ourselves with industry leaders to act as our strategic alliance
      marketing consultants for the marketing of the products.





Gordon
      Lewis, our Director of Engineering and Remediation, has focused on completing
      our previously verbal agreements (December 2004) with Asah Terra Nigeria
      Limited. The process gained momentum based on two key events at the end of
      2005
      and beginning of 2006. The first event in




20


October
          2005 was the successful introduction of our remediation technology (previously
          acquired from Dr. Amiran in 2003) in the New Orleans Arena in the aftermath
          of
          Hurricane Katrina. We used FlameOut as a carrying agent for the active
          remediation agents Ultimate Odor Control 1106, Ultimate Clean 850 remediation
          enhancer and our newly acquired (2005) Mold and Fungus Control Product.
          The
          second event was our successful negotiation and licensing agreement with
          BioGenesis (Exhibit 10.12 filed with Form 8-K February 1, 2006). In this
          agreement we acquired an exclusive worldwide license for marketing rights
          to
          various proprietary chemicals and a non-exclusive worldwide license for
          marketing rights to certain proprietary remediation technologies. However,
          in
          the agreement, when we name a particular customer, the marketing rights
          to that
          customer become exclusive to Summit. This was the second key piece to completing
          the agreements with Asah Terra and its customer, Shell Oil of
          Nigeria.





With
      these two tools in place, the Joint Venture Licensing and Marketing Agreement
      between Summit and Asah Terra was executed in March 2006 (Exhibit 10.17 filed
      with Form 8-K March 3, 2006). Gordon Lewis spent the balance of the first
      quarter acquiring samples from Nigeria for Dr. Amiran to run analyses. We worked
      with BioGenesis personnel to develop the irrigation system necessary for setting
      up the site to remediate the contaminated material, prepare for the first order
      for chemicals from Asah Terra and secure additional materials needed for the
      site preparation. These steps were completed in April and shipped to Nigeria.
      During the first week of May 2006, Dr. Mohsen Amiran, Gordon Lewis and Keith
      Parker accompanied Tom Hilton, President of Asah Terra Nigeria, to Port
      Harcourt, Nigeria where we began this much anticipated project. By the
      20 th of May a
      successful biopile had been constructed in the treatment of the contaminated
      pond. Schedules were established in order to pull samples from the biopile
      every
      two weeks in order to provide documentation of the reduction of TPH (Total
      Petroleum Hydrocarbon) levels from the contaminated soil. During the excavation
      process, we discovered a much more involved contamination than merely soil
      with
      some crude mixed. We hit a pocket of slush which when analyzed showed diesel
      fuel, emulsifiers, drilling mud and pure crude. This contamination provides
      remediation evaluation and processes different from those initially introduced
      to Summit prior to our May trip. Further investigation provided us information
      from Shell Oil, Nigeria, that there are over 2,400 sites that require
      remediation. By mid June we were asked to submit a new proposal for the
      remediation of 15,000 cubic meters of contamination at this site.





Initial
      details provided us information on what was expected to be 715 cubic meters.
      Nearly 400 of these previously mentioned sites are classified as “infamous” or
“moderate” legacy sites. What this means is that the complete history of the
      site is not recorded.





To
      more
      efficiently provide the desired end result to Shell, a much larger operation
      for
      remediation than the biopile method is required.





Many
      different types of equipment and technologically designed systems from
      BioGenesis must be assembled and shipped to Nigeria. Shell Oil, Nigeria, is
      awaiting our final proposal which is anticipated for delivery from Summit to
      Shell by the end of August 2006.





In
      addition, Gordon Lewis, has brought our current file with the US EX-IM Bank
      (Export-Import) for the purpose of taking advantage of various government
      programs for financing both equipment and service invoices which include credit
      insurance.





21


Also,
      Gordon Lewis and Rob Heggie have been working in concert with the development
      of
      a direct response television marketing initiative for FlameOut Aerosol Fire
      Extinguishers. Our television commercial was produced during the fourth quarter
      of 2005. We have executed agreements for media purchasing and a fulfillment
      center. The target date to begin has been moved forward to September 2006.
      Our
      main goal of creating additional sales for the company will have a secondary
      goal of building some branding identity for our retailing partners. FlameOut
      Aerosol Fire Extinguisher will appear on the shelves of a new retail marketing
      partner with 5,500 stores on September 1, 2006. We will release the name in
      a
      press release when we have our customer’s approval.





We
      had
      another successful airing for Firepower on QVC during the second quarter and
      another on July 31, 2006. We received another order from QVC on August 1, 2006
      for an August Airing of FirePower. Through our QVC agent, Live Link TV, we
      are
      proposing to QVC the introduction of our new environmental aerosol products
      using the branding created by two years of Firepower. The retail line of
      OdorOut, MoldOut, SpotOut, OilOut and CleanOut would be named OdorPower,
      MoldPower, SpotPower, OilPower and CleanPower.





**OUTLOOK**





*The
      statements made in this Outlook are based on current plans and expectations.
      These statements are forward looking, and actual results may vary considerably
      from those that are planned.*





**Events
      and Trends** **.**





The
      following events and trends are expected to have a material impact on our
      business:





We
      began
      the cleanup of a contaminated pond (petroleum waste) near Port Harcourt,
      Nigeria, during the first week of May, 2006. We executed a Joint Venture
      Agreement with Asah Terra Nigeria Limited in March 2006. It is estimated that
      Shell Oil has committed $10 billion for environmental cleanup over the next
      10
      years. During March of 2006 we began analyzing soil and sludge samples from
      Nigeria for the first cleanup project.  Gordon Lewis, PE will be heading
      the project for Summit, which is named as General Contractor in the agreements
      related to this cleanup. We discovered more contamination and in more aggressive
      stages than was previously revealed. We were asked by Shell Oil, Nigeria, after
      the discovery of more advanced contamination, to prepare a proposal for the
      cleaning of 15,000 cubic meters. Originally we were looking at 715 cubic meters.
      Due to the age of the sites some have been there so long that there are no
      records of their beginning. Our proposal for the first site is approximately
      $3.5 million.





We
      will
      be introducing through some of our retail marketing partners five new
      environmental household solutions products in mid-year 2006.  These
      products include the products we used in New Orleans for the Arena
      cleanup.  The products will be featured as the FlameOut Family of Products:
      OdorOut, CleanOut, MoldOut, SpotOut and OilOut. In each of these products
      FlameOut is the carrying agent. Due to the encapsulation and remediation
      properties of FlameOut, we experienced great success in New Orleans with
      formulas very similar to what we are calling MoldOut, OdorOut, and CleanOut.




22




The
      first
      prototype cans of OdorOut were well received immediately upon referrals in
      the
      Veterinary Hospital Market. Some of the initial veterinarians using OdorOut
      made
      calls to Texas A&M University referring us to the School of Veterinary
      Medicine. In May we met with the staff of several departments at A&M.
      Demonstrations during the trip produced currently ongoing evaluations in the
      pathology department, small and large animal hospitals. We have also developed
      a
      couple of specialty products for evaluation that would be marketed through
      veterinary hospitals.





SafeTree
      Christmas Tree protector will be introduced in October in Bed Bath and Beyond
      in
      their Trim-a-Tree section.





We
      are
      beginning a process of developing our first branded product off of FirePower
      at
      QVC. We have begun the development and submission of PowerOut-Odor Eliminator,
      a
      twin sister product to OdorOut, in a two-pack offering.





In
      June,
      we shipped our first orders of FlameOut to HEB Food Stores.





We
      received our first order from the Yellowstone Club Private Ski Resort in Big
      Sky, Montana in March 2005.  Fire Chief Steve Hauck at the Yellowstone Club
      makes television appearances with CEO Keith Parker for media promotions for
      the
      aerosol fire extinguishers, Firepower and FlameOut. Subsequent appearances
      with
      Chief Hauck are scheduled for Labor Day weekend and October (Fire Prevention
      Month) supporting our newest retail marketing partner to be announced in August
      2006.





On
      March
      15, 2006 the Federal Consumer Products Safety Commission (CPSC) under the
      authority of the Flammable Fabrics Act issued its final ruling on the
      requirements to make mattresses and mattress sets safer from the risk of the
      flashover caused by open flame fires. The Ruling is effective July 1, 2007
      when
      all mattresses and mattress sets sold in the USA must be compliant with the
      new
      standard under penalty of fines and possible recall. “These improved mattresses
      should result in significant reductions in deaths and injuries associated with
      the risk of mattress fires. The Commission estimates that the standard could
      limit the size of mattress fires to the extent that 240 to 270 deaths and 1,150
      to 1,330 injuries could potentially be eliminated annually”, quotes the CPSC in
      its March 15, 2006 release. “The Commission is issuing this flammability
      standard to reduce deaths and injuries related to mattress fires, particularly
      those initially ignited by open flame sources such as lighters, candles and
      matches. Although the Commission has a flammability standard directed toward
      cigarette ignition of mattresses [16 CFR Part 1632] a significant number of
      mattress fires are ignited by open flame sources and are not directly addressed
      by that standard”, states the CPSC. Summit Environmental’s management team met
      with mattress industry leaders and attended industry-sponsored workshops in
      July
      2006 to understand the challenges the mattress industry faces to become
      compliant with this new open flame law. The result of that investigation has
      convinced Summit’s management team that our fire retardant technology and our
      experience with FlameOut Fire Suppressor will provide the mattress industry
      with
      retardancy options unlike any other on the market today. During the third
      quarter of 2006 Summit will be working with raw material suppliers to the
      mattress industry and mattress manufactures to test and validate the
      effectiveness of our unique solutions. The current complement of fire retardant
      technologies available to the industry, be they chemical barriers or physical
      barriers, are only being used because they are the only ones available. Summit’s
      industry advisors are excited about the potential that our new technology will
      bring to this multi-billion dollar market that manufactures over 30 million
      mattresses every year.





23


**Material
      Commitments for Capital Expenditures** **.**





We
      have
      the following material commitments for capital expenditures during
      2006:





Media
      relations of $80,000, research and development for aerosol fire extinguishers
      of
      $65,000, legal and audit fees of $150,000, product development and packaging
      design of $50,000, research and development of the new environmental aerosol
      products of $75,000, television commercial development for FlameOut and
      Firepower aerosols of $80,000, initial media placement for television of
      $500,000 and international travel for environmental cleanup project (initial
      trips) of $100,000.





To
      obtain
      the funds for such expenditures, we recently completed a $744,000 private
      placement of shares of common stock to existing and new shareholders of the
      company.  In addition, we had our property at 210 South Green Street,
      Longview, appraisal completed in April 2006. The appraisal for $700,000 was
      shopped for a permanent lender. We reached an agreement with a private lender
      for 20 year mortgage at 13% interest. The funds received of $560,000 will allow
      us to pay off the bridge loan of $239,000 we originally obtained from Pacific
      Business Capital, leaving the balance for additional operating capital. Also,
      we
      have approximately 3,600,000 warrants that can be exercised at an exercise
      price
      of 50 cents per share through 12-31-2006.





**Important
      Factors** **.**





We
      work
      closely with American Business Associates (AmBiz). AmBiz assists with
      introductions into military, homeland security and emergency management venues.
      . More about AmBiz can be found at www.americanbusinessassociates.com .
      Through
      AmBiz’s efforts, we submitted FlameOut® and FlameOut® Foam to the U. S. Air
      Force chemical testing center at Tyndal Air Force Base in Florida. We also
      are
      attempting to introduce FlameOut® to the US Air Force testing center at Little
      Rock, Arkansas for use in the Air Force fleet of C-130 tankers in 2006 for
      inland, wildfire applications. In July 2006, we began the testing of FlameOut
      for all types of fires with the California Department of Forestry.





**FlameOut** **®** is not
      just a fire suppressant. It is non-toxic, biodegradable and has significant
      encapsulation features that surround and smother particles it contacts. We
      demonstrated its fire-fighting and fire-retardant qualities before FEMA,
      Homeland Security, Arizona State Emergency Management, the Office of Emergency
      Management and the Bureau of Land Management in July 2004. Additional wildfire
      application testing began in April and May in New Mexico with the new fleet
      of
      wildfire fighting aircraft, the AT-802. This effort has been headed by Paul
      Kowalenko. The following details the areas of our efforts.





April
      2006, Midland Texas - Summit performed FlameOut proficiency testing from the
      AT-802 under the observation of the Texas Forest Service (TFS) and United States
      Forest Service (USFS). The results showed significant ground coverage from
      both
      1% and 0.5% FlameOut drops comparison to plain water drops. Comments were made
      by the pilots and ground observers that FlameOut was dropping just like the
      much
      heavier and more costly, highly viscous long term retardants.





24


May
      2006,
      Okotoks Alberta - Under the observation and back-up protection of the Okotoks
      Fire Department, multiple test blocks of three-year-old cured grassland were
      treated with FlameOut and tested over discrete time periods. In temperature
      conditions similar to wildland fire situations FlameOut proved to be a complete
      fire inhibitor up to 15 minutes after cured grass had been treated with a 1%
      solution of FlameOut. The ignition source was a 40,000 BTU propane Tiger Torch
      that was applied directly into the treated blocks for 5 seconds and then
      removed. At 15 minutes the flames readily self-extinguish and at 20 minutes
      the
      flames creep but eventually self-extinguish. Under freshly treated blocks the
      Tiger Torch was left in place for over 4 minutes with absolutely no supporting
      fire and the only direct burner area charred. A second series of tests was
      performed to measure FlameOut’s ability to block the progression of a fire when
      it runs into FlameOut treated grass. A three-foot-wide border around the outside
      of a 16-foot diameter circle was treated with 1% FlameOut. The center of the
      untreated circle was ignited with Tiger Torch and allowed to burn into the
      three- foot treated barrier. The flames spread to the barrier in approximately
      5-7 minutes, depending on wind direction. The fire was stopped along the entire
      circumference of the 16-foot circle when the flames reached the treated barrier.
      Not only did the fire self-extinguish but the barrier eliminated the smoke
      from
      the burning grass.





June
      2006, Roswell NM - The Federal Bureau of Land Management (BLM) district office
      in Roswell, NM and the Federal Fish & Wildlife office at the Roswell Bitter
      Lake Wildlife Refuge had expressed to their Single Engine Air Tanker (SEAT)
      contractor (AeroTech) an interest in replacing long-term retardant with another
      chemical less toxic to their grassland eco-systems but still an effective direct
      attack suppressant. Within 48 hours of receiving the call Summit had both
      product and manpower on scene to work with the Fire Management Office (FMO).
      Roswell sits on the eastern slopes of the mountains, with the Lincoln National
      Forest and the mountain resort area of Ruidoso to the west, and expansive
      grassland and ranching in every other direction. The FMO utilizes SEAT aircraft
      to assist with rapid attack. There are two other SEAT bases under NM state
      authority within close proximity providing overlapping coverage. In May the
      National office for the BLM deployed a National Aerial Task Force (ATF) squadron
      of three SEATS to Roswell. The ATF and the contract SEAT took part in a full
      interagency ground and air stimulation fire exercise. The agencies involved
      in
      the exercise and then attending the post-exercise briefing included the BLM,
      F&W, NM State, Municipal and USFS. During the exercise eight aerial drops
      were made by the SEATs. The first seven drops were done with water. The last
      drop was done with a 1% solution of FlameOut. By everyone’s account that were
      present at the field location, the FlameOut drop was noticeably different than
      the seven prior water drops. Comments from the Air Attack officer circling
      2,000
      feet above the engine chiefs and crews that were directly in view of the drops
      stated that FlameOut came down much straighter than the water, that the drop
      pattern was much tighter, and that there was considerably more moisture on
      the
      ground than with the water only - much like they would have expected of long
      term-retardant, not foam. The BLM FMO placed an order for FlameOut and then
      shared it with two other state SEAT bases and the Bitter Lake F&W engine
      crews.





25


July
      2006, Yreka CA - In early July California Department of Forestry and Fire
      Protection (CDF) became aware of FlameOut’s new qualification for SEATs on the
      USFS Qualified Products List (QPL). CDF’s initial response was that wildland
      foams were not suitable for high-speed air drops from air tankers because all
      previously known foams break apart in the air, which allowed Summit to introduce
      evidence to the contrary. Further discussions and product demonstrations
      revealed to Summit that CDF is not just wildland fire fighting service but
      also
      a full emergency response organization responding to all classes of fires,
      hazmat incidents, motor vehicle accidents and all other emergency situations.
      Those discussions have led to a fuller understanding of how Summit’s products,
      including our multi-class fire foam FlameOut and our bioremediation Ultimate
      Clean products could be of value to the state. On August 1, 2006, Summit
      received an official invitation from CDF for immediate evaluation at two CDF
      helitack bases that will conduct our Field Operational Evaluation of FlameOut
      as
      soon as possible. Each base will utilize 100 gallons of FlameOut. Paul Kowalenko
      will be dispensing information to the captains at two helitack bases and arrange
      a training date so they can learn what makes FlameOut different from the other
      Class A foams they have used. Evaluation forms will be used to record their
      impressions on how well the product worked for them. The demonstration consisted
      of using Evergreen Aviation’s 747 Supertanker to disperse **FlameOut** **®** as a
      compressed-air foam over a path 100 to 125 feet wide for 20,000
      feet.





The
      success of the demonstration has led us to consider **FlameOut** **®** as the
      carrying agent for additional products that address environmental issues. Dr.
      Amiran, one of our directors and the inventor of **FlameOut** **®** ,
      is
      addressing this expanded use of **FlameOut** **®** - uses
      such as treating toxic spills or chemical exposure, cleaning the air of free
      radicals in the event of terrorist attacks, and a fire retardant sealant to
      be
      sprayed on a structure prior to evacuating an area threatened by a wildfire.
      The
      successful drop of FlameOut by Evergreen Aviation’s 747 equipped with a
      10,000-gallon compressed foam air tank (CAF) demonstrated to us physical
      properties of FlameOut that at the time were not known. The idea of mixing
      other
      compatible products with FlameOut (odor control, mold and fungus control and
      a
      toxic remediation enhancer), using the FlameOut as a carrying agent in order
      to
      utilize these other remediation products for catastrophic exposures began to
      evolve during the second half of 2004. It was during the aftermath of Hurricane
      Katrina that Summit CEO, Keith Parker, dispatched Paul Kowalenko and later
      Gordon Lewis to New Orleans to attempt to apply this theoretical application
      of
      our products. We utilized backpack CAF units developed by Inteligard to dispense
      FlameOut and mix the previously mentioned remediation chemicals. We executed
      a
      contract to remediate solid body waste, decomposing waste and the associated
      odors in this environment and to eliminate black mold and mildew. We were
      awarded a contract by Superdome Management Group to remediate the over 1,000,000
      square feet of the New Orleans Arena where the New Orleans Hornets play
      professional basketball. Our successful cleaning of the arena was a key factor
      to our completing our negotiations with Asah Terra and its customer Shell Oil
      of
      Nigeria. Our successful introduction of our environmental technology and
      concepts provided the impetus we needed to move forward.





Our
      expanded use of FlameOut as a carrying agent for these other chemicals provided
      us $448,000 in sales in the fourth quarter of 2005. We have taken the
      remediation technology to Nigeria for the purpose of proving our technology
      on a
      contaminated well site that has been left abandoned and untreated with no known
      solution for remediation before the introduction of our technology. We have
      met
      with the managing director of the Zalul Corporation in Israel with regards
      to
      the remediation of polluted rivers and environmental cleanup from the residue
      caused by the bombs and fires resulting form the recent Lebanese/Israel
      conflict. More about Zalul is available at www.zalul.org .
      We have
      evaluation studies being conducted at Texas A&M University School of
      Veterinary Medicine on Ultimate Odor Control, one of the main products used
      in
      our project in New Orleans.





26


**Ultimate
      Clean** **TM** **Products** **.**





We
      have
      developed new “environmental remediation and decontamination” products for
      retail sales from our successful experience in New Orleans. In this regard,
      we
      move from marketing our “aerosol fire fighting technology” to “environmental
      aerosol technology”. New aerosol products, marketed as the FlameOut Family of
      Products, will feature **FlameOut®** as the
      carrying agent for products under the branding of “The FlameOut Family of
      Products” named Odor Out TM, Oil Out TM, SpotOut TM, MoldOutTM, and CleanOutTM. We
      plan on the initial retail introduction by end 2006 through several of our
      established customers currently selling FlameOut aerosol fire extinguishers.





We
      are
      continuing to develop and expand on the completion of our remediation and
      decontamination project at the New Orleans Superdome Arena. We performed an
      additional mold and fungus decontamination at the Superdome and a couple of
      individual rooms during the second week of October. Marketing strategies are
      being developed on how to expand on the success we have experienced. In order
      to
      facilitate the development of our newly created Remediation Division, we have
      hired as Director of Engineering and Remediation, Mr. Gordon Lewis, PE in fourth
      quarter of 2005. Gordon graduated from Humboldt State University in California
      with a degree in Environmental Engineering and is formerly the Supervising
      Engineer for the Desert Water Agency in Palm Springs, California; Engineer
      for
      the Water Resources Board, California Water Quality Control Board; and Civil
      Engineer in Palm Springs with specialty in municipal water and sewer
      management.





Mr.
      Lewis
      has been working directly with the Asah Terra Nigeria Limited principals since
      December 2005. We executed an exclusive Licensing and Marketing agreement with
      Asah Terra Nigeria limited on March 3, 2006 (filed as Exhibit 10.17).





Asah
      Terra is working with the Nigerian Government and Shell Oil of Nigeria in
      providing consultation and product solutions using our Ultimate Clean chemicals
      with specific applications for what is estimated at up to ten years of existing
      clean-up of contamination. One of the first sites that we will be cleaning
      is a
      stagnate lake that allows bacteria to grow. When it rains, the overflow provides
      such a large amount of toxic residue that this site has been linked to being
      a
      leading cause of the deaths of infants and young children in Nigeria. We
      executed an exclusive licensing agreement with BioGenesis on February 1, 2006
      (filed as Exhibit 10.12), giving Summit exclusive marketing rights by license
      for Ultimate Clean chemicals and BioGenesis Soil and Water Remediation. We
      are
      working in conjunction with BioGenesis and Dr. Amiran to begin this work for
      Asah Terra on the first two contracts. There are reported by Asah Terra to
      be
      thousands of these sites in Nigeria. They have been mandated by the Nigerian
      Government for environmental cleanup.





Summit
      also acquired the rights to specific companies, areas, and projects via the
      licensing agreement. Shell Oil of Nigeria contaminated sites resulting from
      years of petroleum production in Nigeria, and Nigeria represents one of the
      areas of exclusivity for Summit utilizing BioGenesis soil and water remediation
      technology.





27


We
      began
      the initial site testing and application process during the first week of May
      2006. Dr. Mohsen Amiran, Gordon Lewis and Keith Parker accompanied Tom Hilton,
      President of Asah Terra, to Lagos, Nigeria. The initial product application,
      technology, training and follow-up procedures were taught by Dr. Amiran to
      Asah
      Terra personnel in Nigeria. In June 2006, we were requested by Shell Oil,
      Nigeria, to provide a proposal for the cleaning of 15,000 cubic meters of
      contaminated soil and slush. Our initial proposal is for approximately $3.5
      million (USD). We anticipate negotiated resolutions producing a contract during
      the third quarter of 2006.





**Off-Balance
      Sheet Arrangements**





Our
      company has not entered into any transaction, agreement or other contractual
      arrangement with an entity unconsolidated with us under which we have





·
            an obligation under a guarantee
              contract, ·
            a
                retained or contingent interest in assets transferred to the
                unconsolidated entity or similar arrangement that serves as credit,
                liquidity or market risk support to such entity for such
                assets,


·
            an
                obligation, including a contingent obligation, under a contract that
                would
                be accounted for as a derivative instrument,
                or


·
            an
                obligation, including a contingent obligation, arising out of a variable
                interest in an unconsolidated entity that is held by, and material
                to, us
                where such entity provides financing, liquidity, market risk or credit
                risk support to, or engages in leasing, hedging, or research and
                development services with, us.





**Contractual
      obligations**





The
      following table sets forth, as of the end of the latest fiscal year-end balance
      sheet, information with respect to our known contractual
      obligations.





**Payments
                Due-by Period****Contractual**
              **Obligations**
            **Total**
            **Less
                Than**
              **1
                Year**
            **1-3
                Years**
            **3-5
                Years**
            **More
                Than**
              **5
                Years**Long-Term
                Debt Obligations
            $630,047
            $630,047Capital
                Lease Obligations
            $   
                       0Operating
                Lease Obligations
            $   
                       0Other
                Long-Term Liabilities Reflected on Our Balance Sheet under
                GAAP
            $ 
                         0Total
            $630,047
            $630,047





28





*Our
      future results of operations and the other forward-looking statements contained
      in this Outlook involve a number of risks and uncertainties. Among the factors
      that could cause actual results to differ materially are the following: the
      inability of the company to obtain needed additional capital, loss of personnel,
      particularly chief executive officer B. Keith Parker, as a result of accident
      or
      for health reasons, interruptions in the supply of inventory from manufacturers
      of the inventory, the development of a competing fire suppressant by a
      well-capitalized competitor that either is able to develop a new product with
      the same attributes as our fire suppressant or is able to discover the additives
      to our fire suppressant that give it its unique and superior qualities, and
      an
      accident involving life or serious bodily harm that fairly or unfairly would
      bring into question the safety of using the company’s fire suppressant
      products.*





**Item
      3.**   **Controls
      and Procedures**





Evaluation
      of disclosure controls and procedures .
      The
      Company carried out an evaluation, under the supervision and with the
      participation of the Company's management, including the Company's Chief
      Executive Officer and Chief Financial Officer, of the effectiveness of the
      design and operation of the Company's disclosure controls and procedures as
      of
      the end of the period covered by this report. Based upon that evaluation, the
      Chief Executive Officer and Chief Financial Officer concluded that the Company's
      disclosure controls and procedures provide reasonable assurances that the
      information the Company is required to disclose in the reports it files or
      submits under the Securities Exchange Act of 1934 is recorded, processed,
      summarized and reported within the time period required by the Commission's
      rules and forms. There were no significant changes in the Company's internal
      control over financial reporting during the period covered by this report that
      have materially affected, or are reasonably likely to materially affect our
      internal controls over financial reporting.


**PART
      II - OTHER INFORMATION**





**Item
                1.**
            
            **Legal
                Proceedings**





In
      March
      2003 we were sued by Lady Burd Exclusive Cosmetics, Inc. for $43,000 in a
      collection lawsuit, Lady Burd Exclusive Cosmetics, Inc. v. Summit Environmental
      Corporation, Case No. 104268/03, Supreme Court of the State of New York, County
      of New York. We filed a cross-petition against Lady Burd for breach of contract
      and unpaid commissions, in the amount of $45,000. In April we settled the New
      York suit by paying Lady Burd what we had said we owed all along but
      significantly less than what it claimed. We paid $22,550 for invoices. All
      other
      claims of debt in this suit were dismissed.





In
      March,
      2003, we filed an action against Lady Burd Exclusive Cosmetics, Inc., Case
      Number 2003-589-A in the 188 th District
      Court, Gregg County, Texas, for fraud and misrepresentation regarding our
      earlier purchase of patent rights to a “permanent” lipstick we sell under the
      name “Sugar Kiss Lip” collection. After paying $50,000 and 500,000 shares of our
      common stock to Lady Burd we discovered that Lady Burd had never filed for
      a
      patent. After agreeing to a settlement through both our New York and Texas
      counsel, Lady Burd refused to perform as agreed. This led to our appearing
      in
      court in




29




New
      York
      as mentioned above. We did not dismiss our Texas patent fraud suit. Roberta
      Burd, President and CEO of Lady Burd Exclusive Cosmetics was deposed on May
      10,
      2006, in Longview, Texas. In June 2006, we agreed to a mutual settlement due
      to
      continued cost of litigation. We have received the formulas for the liquid
      lip
      color and have established a relationship with a new laboratory for the products
      production. We continue to have the endorsement of the Kilgore College
      Rangerettes and several key high school drill teams in Texas. During the
      litigation we discontinued seeking new drill team customers. With all suits
      settled and possession of the manufacturing capabilities at a private
      laboratory, we will begin a new marketing campaign in August and September
      2006.





No
      director, officer or affiliate of the company, and no owner of record or
      beneficial owner of more than 5.0% of the securities of the company, or any
      associate of any such director, officer or security holder is a party adverse
      to
      the company or has a material interest adverse to the Company in reference
      to
      any litigation.





**Item
                2.**
            
            **Unregistered
                Sales of Equity Securities**





The
      table
      below sets forth issuances of our common stock during the first half of 2006
      not
      previously reported in transactions exempt from registration pursuant to the
      provisions of Regulation D, Rule 506:





**Date**
            **Person**
            **No.
                of**
              **Shares**
            **Price**
              **Per
                Share**
            **Type
                of**
              **Consideration**04-05-06
            Keith
                Parker
            22,500
            $0.88
            Services
                as an officer of Summit04-05-06
            Paula
                Parker
            15,000
            $0.88
            Services
                as an officer of Summit04-05-06
            Chris
                Dellinges
            30,000
            $0.88
            Services
                as an officer of Summit04-05-06
            Paul
                Kowalenko
            8,040
            $0.93
            Services
                as director of marketing04-05-06
            Gordon
                Lewis
            12,000
            $0.88
            Services
                as director of marketing04-05-06
            Mohsen
                Amiran
            22,500
            $0.88
            Research
                and development services07-17-06
            Keith
                Parker
            22,500
            $0.58
            Services
                as an officer of Summit07-17-06
            Paula
                Parker
            15,000
            $0.58
            Services
                as an officer of Summit07-20-06
            Chris
                Dellinges
            30,000
            $0.52
            Services
                as an officer of Summit07-20-06
            Paul
                Kowalenko
            10,794
            $0.69
            Services
                as director of marketing07-20-06
            Gordon
                Lewis
            12,000
            $0.52
            Services
                as director of marketing07-20-06
            Mohsen
                Amiran
            22,500
            $0.52
            Research
                and development services





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





**(a)**
            **Exhibits**





Exhibit
      No.      Description





2.1
            
            -
            Agreement
                of Merger of July 14, 1998, between Summit Environmental Corporation,
                Inc.
                and Summit Technologies, Inc.**





3.1
            
            -
            Articles
                of Incorporation of Summit Environmental Corporation,
                Inc.*




30





3.1.1
            
            -
            Amendment
                to Articles of Incorporation of Summit Environmental Corporation,
                Inc.**





3.2
            
            -
            Bylaws
                of Summit Environmental Corporation,
                Inc.*





5
            
            -
            Opinion
                of Thomas J. Kenan, Esquire, on the legality of the securities being
                registered.+++





10.1
            
            -
            1998
                Stock Option Plan adopted by Summit Environmental Corporation,
                Inc.*





10.3
            
            -
            Limited
                Exclusive Marketing Bilateral Agreement Between Moonlighting Distribution
                Corporation-USA and Summit Technologies, Inc. (Poder Sexual, Ultimate
                Stressex and/or Poder 24)*





10.4
            
            -
            Limited
                Exclusive Marketing Bilateral Agreement among B. Keith Parker,
                individually and as Chairman of the Board and CEO of Moonlighting
                Distribution Corporation-USA, d/b/a Moonlighting International, and
                Summit
                Technologies, Inc. (FireKare,**FirePower
                911****Ô**,
                Super Cold Fire, and**Flame
                Out®**)*





10.6
            
            -
            Exclusive
                Marketing Bilateral Agreement between Moonlighting Distribution
                Corporation-USA and Summit Technologies, Inc.
                (Trim-Away)**





10.7
            
            -
            November
                2, 1998 Amendment to April 27, 1998 Letter of Intent between BioGenesis
                Enterprises, Inc. and Summit Technologies, Inc., and April 27, 1998
                Letter
                of Intent.***





10.8
            
            -
            2004
                Stock Option Plan adopted by Summit Environmental Corporation,
                Inc.+





10.9
            
            -
            Royalty
                Agreement between BioGenesis Enterprises, Inc. and Summit Environmental
                Corporation, Inc.+*





10.10
            
            
            Amendment
                Six to Letter of Intent between BioGenesis Enterprises, Inc. and
                Summit
                Environmental Corporation, Inc. dated July 29,
                1999.+*





10.11
            
            
            Letter
                dated December 1, 1999 from Thomas J. Kenan to BioGenesis outlining
                terms
                of acceptance and executed by BioGenesis Enterprises,
                Inc.+*





10.12
            
            -
            License
                Agreement - Consumer Chemicals and Proprietary Remediation Technology,
                executed 02-01-06 by BioGenesis Enterprises, Inc. and Summit Environmental
                Corporation, Inc.+++





10.13
            
            -
            Service
                Agreement by and between SMG and Summit Environmental Corporation
                dated
                September 25, 2005.**+




31




10.14
            
            -
            Marketing,
                Distribution, and Sales Agreement between Summit Environmental Corporation
                and Global Trade Marketing Inc. dated August 5,
                2003.**+





10.15
            
            -
            Advisory
                Services Agreement between AmBiz Associates, L.L.C. and Summit
                Environmental Corporation, Inc. dated February 25,
                2004.**+





10.16
            
            -
            Distribution,
                and Sales Agreement between Summit Environmental Corporation and
                VASA,
                Ltd. dated September 1, 2004.**+





10.17
            
            -
            Marketing
                and Technology License Agreement executed March 3, 2006 by Summit
                Environmental Corporation, Inc. and Asah Terra Nigeria Joint Venture
                #1,
                Inc. Summit’s agreement with A & H Enterprises, Inc. is similar in
                virtually all respects to the agreement with Asah Terra Nigeria Joint
                venture #1 Agreement.++*





14
            
            -
            Code
                of Ethics for the Chief Executive officer and Senior Financial
                Officers.*+





16.1
            
            -
            Letter
                of November 24, 2004 of Lane Gorman Trubitt, L.L.P. agreeing with
                the
                statements made in Form 8-K by Summit Environmental Corporation,
                Inc.,
                concerning Summit’s change of principal independent
                accountants.++





23
            
            -
            Consent
                of Lane Gorman Trubitt, L.L.P. to be named as an expert in the
                Registrant's Form 10-KSB for the fiscal year ended December 31, 2003,
                which is incorporated herein. (Superseded by Exhibit
                23.2.)





23.1
            
            -
            Consent
                of Thomas J. Kenan, Esquire, to the reference to him as an attorney
                who
                has passed upon certain information contained in the Registration
                Statement.(Superseded
                by Exhibit 23.3.)





23.2
            
            -
            Consent
                of Lane Gorman Trubitt, L.L.P. to be named as an expert in the
                Registrant's Form 10-KSB for the fiscal year ended December 31, 2003,
                which is incorporated herein.





23.3
            
            -
            Consent
                of Thomas J. Kenan, Esquire, to the reference to him as an attorney
                who
                has passed upon certain information contained in the Registration
                Statement.





31
            
            -
            Certification
                of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as
                adopted
                pursuant to Section 302 of the Sarbanes-Oxley Act of
                2002.





31.1
            
            -
            Certification
                of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as
                adopted
                pursuant to Section 302 of the Sarbanes-Oxley Act of
                2002.





32
            
            -
            Certification
                of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as
                adopted
                pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002.




32





32.1
            
            -
            Certification
                of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as
                adopted
                pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002.





*
            Previously
                filed with Form SB-2; Commission File No. 333-48675 incorporated
                herein.


**
            Previously
                filed with Amendment No. 1 to Form SB-2; Commission File No. 333-48675
                incorporated herein.


***
            Previously
                filed with Amendment No. 5 to Form SB-2; Commission File No. 333-48675
                incorporated herein.


+
            Previously
                filed with Form 10-KSB Annual Report FYE 12-31-03, Commission File
                No.
                333-48675 incorporated herein.


++
            Previously
                filed with Form 8-K November 22, 2004; Commission File No. 333-48659
                incorporated herein.


+++
            Being
                filed with Form SB-2 Am 1, Commission File No. 333-122402 incorporated
                herein.


+*
            Previously
                filed with Amendment No. 2 to Form 10-KSB 12-31-04, Commission File
                No.
                333-48675 incorporated herein.


*+
            Previously
                filed with Form 10-KSB Annual Report FYE 12-31-04, Commission File
                No.
                333-48675 incorporated herein.


**+
            Being
                filed with Form SB-2 Am 2, Commission File No. 333-122402 incorporated
                herein.


++*
            Filed
                with Form 8-K March 3, 2006, Commission file No. 333-48659 incorporated
                herein.








**SIGNATURES**





Pursuant
      to the requirements of the Exchange Act of 1934, the Registrant has duly caused
      this report to be signed on its behalf by the undersigned hereunto duly
      authorized.





Date:
        September 19 ,
        2006


Summit
                  Environmental Corporation, Inc.By
                  */s/ B. Keith
                  Parker*B. Keith Parker, Chief Executive
                  Officer










33