===============================================================================


                   U.S. SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                 FORM 10-QSB

         [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                       SECURITIES EXCHANGE ACT OF 1934
                   For the Quarter Ended September 30, 2000
                                      or
         [ ] Transition Report Pursuant to Section 13 or 15(d) of the
                       Securities Exchange Act of 1934

                        Commission file number 0-18995

                       INTERLINE RESOURCES CORPORATION
      (Exact name of small business issuer as specified in its charter)


                 Utah                                    87-0461653
      ----------------------------                ------------------------
     (State or other jurisdiction of                  (I.R.S. employer
       incorporation or organization)                  identification No.)


                 160 West Canyon Crest Road, Alpine, UT 84004
               ------------------------------------------------
                   (Address of principal executive offices)

      Registrant's telephone number, including area code: (801) 756-3031
     --------------------------------------------------------------------

     Securities registered pursuant to Section 12(b) of the Exchange Act:

     Securities registered pursuant to Section 12(g) of the Exchange Act:

                         Common Stock $.005 Par Value
                        ------------------------------
                                Title of Class

  Securities registered pursuant to Section 12(g) of the Exchange Act: None

Check  whether  the Issuer  (1) has filed all  reports  required  to be filed by
Section 13 or 15(d) of the Exchange  Act of 1934 during the  preceding 12 months
(or for such  shorter  period  that the  registrant  was  required  to file such
reports),  and (2) has been subject to such filing  requirements for the past 90
days. Yes X No____.

APPLICABLE  TO  REGISTRANTS  INVOLVED  IN  BANKRUPTCY   PROCEEDINGS  DURING
PRECEDING  FIVE EARS.  Indicate by check  whether the  Registrant  has filed all
documents  and  reports  required  to be file by  Section  12,13 or 15(d) of the
Securities  Exchange Act of 1934  subsequent to the  distribution  of securities
under a plan confirmed by a court. Yes X No____.

Common stock  outstanding at November 14, 2000 - 14,066,052  shares of $.005 par
value Common stock.


                   DOCUMENTS INCORPORATED BY REFERENCE: NONE


------------------------------------------------------------------------------


                                      1

<PAGE>




                                 FORM 10-QSB
                       INTERLINE RESOURCES CORPORATION

                              TABLE OF CONTENTS


PART I. - FINANCIAL INFORMATION

Item 1    Financial Statements                                           Page

            Condensed Consolidated Balance Sheet at September 30, 2000    5

            Condensed Consolidated Statement of Operations for the
            three and nine months ended September 30, 2000 and 1999       7

            Condensed Consolidated Statements of Cash Flows for
            nine months ended September 30, 2000 and 1999                 8

Item 2      Management's Discussion and Analysis of
            Financial Condition and Results of Operations                10



PART II. - OTHER INFORMATION

Item 1      Legal Proceedings                                           19

Item 2      Changes in the Securities                                   20

Item 3      Defaults Upon Senior Securities                             20

Item 4      Submission of Matters to a Vote of Security Holders         21

Item 5      Other Information                                           21

Item 6(a)   Exhibits                                                    21

Item 6(b)   Reports on Form 8-K                                         21

            Signatures                                                  21





                                      2

<PAGE>




                      FORWARD LOOKING INFORMATION AND RISK FACTORS


      Interline Resources Corporation (the "Company") or its representatives may
make forward looking statements,  oral or written,  including statements in this
report's Management's Discussion and Analysis of Financial Condition and Results
of  Operation,  press  release  and filings  with the  Securities  and  Exchange
Commission,  regarding  estimated future net revenues from  operations,  planned
capital expenditures  (including the amount and nature thereof),  the effects of
the Company's prior Bankruptcy  proceeding,  the Company's  projected  financial
position,  results  of  operations,   business  strategy  and  other  plans  and
objectives  for  future  operations.   These  statements  are  forward-  looking
statements,  within the meaning of Section 27A of the Securities Act of 1993 and
Section 21E of the Securities Exchange Act, which reflect  Management's  current
views with respect to future events and financial performance.

      Although the Company  believes  that the  expectations  reflected in these
forward looking  statements are  reasonable,  there can be no assurance that the
actual results or  developments  anticipated by the Company will be realized or,
even if substantially  realized, that they will have the expected effects on its
business or results of operations. Such forward-looking statements involve known
and unknown  risks,  uncertainties  and other factors which may cause the actual
results,  performance or achievements of the Company to be materially  different
from any future  results,  performance or  achievements  expressed or implied by
such forward-looking statements. Such factors include but are not limited to the
outcome of the Company's current Bankruptcy Proceeding, the timing and extent of
changes  in  commodity   prices,   unforeseen   engineering  and  mechanical  or
technological  difficulties in connection with the Company's business operations
and other risks.

      Theses  forward-looking  statements  are  subject  to  certain  risks  and
uncertainties  including,  but not limited to, future financial  performance and
future events,  competitive pricing for services,  costs of obtaining capital as
well as national,  regional and local economic conditions.  Actual results could
differ materially from those addressed in the forward-looking statements. Due to
such uncertainties and risks,  readers are cautioned not to place undue reliance
on such forward-looking statements, which speak only as of the date whereof.

     All subsequent oral and written forward-looking  statements attributable to
the Company or persons  acting on its behalf are  expressly  qualified  in their
entirety by these  factors.  The Company  assumes no obligation to update any of
these statements.






                                      3

<PAGE>




                             INTERLINE RESOURCES
                                 CORPORATION
                               AND SUBSIDIARIES



                               PART I - ITEM 1
                             FINANCIAL STATEMENTS
                                 (UNAUDITED)

                              September 30, 2000



The condensed  financial  statements included have been prepared by the Company,
without  audit,  pursuant to the rules and  regulations  of the  Securities  and
Exchange  Commission.  Certain  information  and footnote  disclosures  normally
included in financial  statements prepared in accordance with generally accepted
accounting  principles have been condensed or omitted pursuant to such rules and
regulations,  although the Company believes that the disclosures are adequate to
make the  information  presented not misleading.  The Company  presumes that the
user of this interim financial information has read or has access to the audited
financial statements for the preceding fiscal year----and in that context,  this
disclosure  is  adequate  for a fair  presentation  of the  Company's  financial
position.

In the  opinion  of the  Company,  all  adjustments  consisting  of only  normal
recurring  adjustments as of September 30, 2000,  have been made. The results of
operations for the interim period are not necessarily  indicative of the results
to be expected for the entire year.






                                      4

<PAGE>







                       INTERLINE RESOURCES CORPORATION
                               AND SUBSIDIARIES
                     Condensed Consolidated Balance Sheet
                                 (Unaudited)



                                                      Sept 30, 2000
                                                     ----------------

Assets

Current assets:
   Cash and cash equivalents                             $517,240
   Accounts receivable - trade                            311,627
   Inventories                                             18,575
   Other current assets                                    24,178
                                                    ----------------

      Total current assets                                871,620

Property, plant and equipment                           6,720,983
Accumulated depreciation and depletion                 (3,217,009)
                                                   -----------------

      Net property, plant & equipment                   3,503,974

Technology and marketing rights                           462,143
                                                   -----------------

          Total assets                                 $4,837,737
                                                   =================




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


                                      5

<PAGE>




                       INTERLINE RESOURCES CORPORATION
                               AND SUBSIDIARIES
                     Condensed Consolidated Balance Sheet
                                 (Unaudited)



Liabilities and Stockholders' Equity                        September 30, 2000
-------------------------------------                      --------------------

Current liabilities:
        Accounts payable                                         $331,959
        Accrued liabilities                                        56,428
        Note payable, related party                             3,595,920
        Current portion of long-term debt                         168,928
                                                           --------------------

            Total current liabilities                           4,153,235

Long-term debt less current maturities                            618,029
                                                           --------------------

           Total liabilities                                    4,771,264

Stockholders' equity:
        Preferred stock - $.01 par value. 25,000,000
           shares authorized; 1,000,000 series A shares
           authorized; 0 series A shares issued and o/s             -
        Common stock - $.005 par value. 100,000,000
           shares authorized; 14,066,052 shares
           outstanding at September 30, 2000                      70,330
        Additional paid-in capital                             9,209,058
        Retained earnings                                     (9,212,915)
                                                          ---------------------

         Total stockholders' equity                              66,473
                                                          ---------------------

       Total liabilities & stockholders' equity              $4,837,737
                                                         ----------------------



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





                                      6

<PAGE>




                         INTERLINE RESOURCES CORPORATION
                                AND SUBSIDIARIES
                 Condensed Consolidated Statement of Operations
                                   (Unaudited)


<TABLE>
<CAPTION>
                                     Three months ended             Nine months ended
                                           Sept 30,                       Sept 30,
                                 ----------------------------------------------------------

                                     2000          1999              2000        1999
                                 ----------------------------------------------------------
<S>                               <C>           <C>               <C>         <C>

Revenue                           $2,569,504    $1,005,671        $5,320,000  $2,746,355

Direct costs                       2,184,067       637,875         4,223,529   1,760,634
                                 ----------------------------------------------------------

Gross margin                         385,437       367,796         1,096,471     985,721

Selling, general and
   administrative expenses           245,929       243,290           729,669     718,722
Research and development               3,519        15,056            17,038      55,575
Depreciation, depletion and
 amortization                        184,638       181,522           546,513     542,712
                                 ----------------------------------------------------------

(Loss) from operations               (48,649)      (72,072)         (196,749)   (331,288)

Other income (expense) net
  Interest income (expense)          (16,154)      (15,834)          (47,096)    (45,014)
  Interest expense, related party    (76,054)      (63,000)         (228,161)   (189,000)
        Gain from sale of assets           0          -                1,500      18,908

Net loss before income taxes        (140,857)     (150,906)         (470,506)   (546,394)
                                 ----------------------------------------------------------

Income tax benefit
        Current                         -             -                 -           -
        Deferred                        -             -                 -           -
                                 ----------------------------------------------------------

Net loss                           ($140,857)    ($150,906)        ($470,506)  ($546,394)
                                 ==========================================================

Loss per common share - basic
  and diluted                         ($0.01)       ($0.01)           ($0.03)     ($0.04)
                                 ==========================================================

Weighted average shares - basic
     and diluted                  14,066,052    14,066,052        14,066,052  14,066,052
                                 ==========================================================

</TABLE>


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

                                        7



<PAGE>




                         INTERLINE RESOURCES CORPORATION
                                 AND SUBSIDIARIES
                 Condensed Consolidated Statement of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                 Nine months ended
                                                                      Sept 30,
                                                               2000             1999
                                                          ---------------------------------
<S>                                                         <C>              <C>
Cash flows from operating activities:
  Net (loss)                                                ($470,506)       ($546,394)
  Adjustment to reconcile net (loss) to net
    cash (used in) provided by operating activities:
        Depreciation, depletion and amortization              546,513          542,712
        Gain on disposal of asset                              (1,500)         (18,908)
        (Increase) decrease in:
           Accounts receivable                                209,454         (168,003)
           Inventories                                         22,197           (8,408)
           Other current assets                                (7,550)          (6,611)
        Increase (decrease) in:
           Accounts payable                                   140,946         (160,006)
           Accrued liabilities                                 16,960          (40,158)
           Deferred income                                       -               6,700
                                                          ---------------------------------

     Net cash provided (used) by operating activities        456,514          (399,076)

Cash flows from investing activities:
        Proceeds from sale of equipment                        1,500            54,763
        Decrease in Note receivable                           77,500            14,038
        Purchase of property, plant & equipment             (156,860)         (179,545)
                                                          ---------------------------------

        Net cash used in investing activities                (77,860)          (72,928)

</TABLE>


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



                                      8

<PAGE>







                         INTERLINE RESOURCES CORPORATION
                                 AND SUBSIDIARIES
                 Condensed Consolidated Statement of Cash Flows
                                    (Unaudited)

                                                        Nine months ended
                                                            Sept 30,
                                                    2000              1999
                                                ------------------------------

Cash flows from financing activities:
  Payment on long-term debt                       (117,149)        (119,557)

                                                ------------------------------

  Net cash (used) from financing activities       (117,149)        (119,557)
                                                ------------------------------


Net increase (decrease) in cash                    261,505         (591,561)

Cash, beginning of period                          255,735          762,459
                                                ------------------------------

Cash,  end of  period                             $517,240         $170,898
                                                ==============================



Non-cash investing and financing  activities:  During the the nine month periods
ended September 30, 2000 and 1999, the Company  acquired  property and equipment
in exchange for notes payable totaling $110,100 and $76,280 respectively.



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


                                      9

<PAGE>





                              PART 1 - ITEM 2.

                   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General

      Interline Resources  Corporation (the Company), is a Utah corporation with
its principal and executive  offices located at 160 West Canyon Crest Road, Utah
84004 (801)  756-3031.  The Company's  current  operating  subsidiaries  are (1)
Interline Energy Services, Inc. ("Interline Energy") a Wyoming corporation which
manages the Company's oil and gas operations located in Wyoming which consist of
natural  gas  gathering,  natural  gas  processing,  over  the  road  NGL  truck
transportation  and oil well production.  and (2) Interline  Hydrocarbons,  Inc.
("Interline  Hydrocarbons")  a Wyoming  corporation  which owns and operates the
Company's used oil refining technology.

      On September  26, 1997,  the Company  filed a Petition for  Reorganization
under  Chapter 11 (the  Petition)  of the United  States  Bankruptcy  Code.  The
Company continued its operations as a debtor-in-possession  under the Bankruptcy
Code.  The Company's  subsidiaries  did not join the Company in the Petition and
were not directly involved in the Bankruptcy Reorganization Proceedings.

      On  June  18,  1998,  the  Company  filed  a Plan  of  Reorganization  and
Disclosure  Statement  to the  Plan of  Reorganization  with the  United  States
Bankruptcy Court for the District of Utah,  Central Division.  On July 14, 1998,
the Company's Plan of  Reorganization  and  Disclosure  Statement to the Plan of
Reorganization was approved and circulation thereof was authorized by the United
States Bankruptcy Court for the District of Utah, Central Division.

      On September  10, 1998,  the Plan of  Reorganization  was confirmed by the
United States Bankruptcy Court for the District of Utah. As a result, restraints
on the  activities  of Interline  imposed by the  Bankruptcy  code were removed.
Interline  reached  agreement with its major creditor during the Chapter 11 case
and the terms of the  agreement  (See Part 1 - Item 2 -  Liquidity  and  Capital
Resources) were  incorporated in the plan. All other creditors were paid in full
under the plan.


Interline Energy Services - Oil and Gas Operations.

      The Company has been engaged in the oil and gas industry  since 1990,  and
currently operates in east-central  Wyoming near Douglas.  The Company's oil and
gas operations  include the Well Draw Gas Plant, a crude gathering  pipeline,  a
20.4% interest in the Hat Creek Partnership, NGL trucking and four producing oil
and gas wells.

                                      10

<PAGE>




Well Draw Gas Plant
      The Well Draw Gas Plant (the  "Plant"),  is a natural gas  liquids  (NGLs)
processing  plant with a 150,000  gallons per day capacity.  The Plant processes
NGL's into propane,  butane and natural  gasoline.  As part of the Plant system,
the Company owns a natural gas gathering  pipeline system.  The gathering system
is  connected  to the Well Draw Gas Plant and  supplies  a small  percentage  of
liquids for the Plant. Most of the NGL's originate from liquids that are trucked
into the Plant from outside sources.

      At the Well Draw Gas Plant ("Well  Draw") the Company  buys mixed  liquids
from several  different plants,  transports them to Well Draw,  fractionates the
liquids into commercial  propane,  butane, and natural gasoline,  and re-markets
these products for its own account.  The Company also enters into agreements for
fractionation  of liquids  for others on a fee basis.  The plant  processed  and
fractionated  a total of 99,781  gallons a day of natural  gas  liquids  for the
three months ended  September 30, 2000 compared to 93,318  gallons a day for the
three months ended  September 30, 1999. Of the total  gallons  fractionated  and
processed, 28,235 gallons per day was for the Company and 71,546 gallons per day
for others,  as compared to 11,248 and 82,070 gallons per day  respectively  for
the three month ended September 30, 2000 and 1999.

Merit (formerly Amoco) Agreement
      During  1994,  the Company  entered  into a six year  contract  with Amoco
Production Company ("Amoco") to process NGLs located at its Baroil Plant located
in Wyoming.  On December 1, 1999, Amoco Production Company sold its Baroil Plant
assets to Merit  Energy  Company  ("Merit").  The  initial  term of the six year
agreement was to expire on June 1, 2000. Thereafter,  the contract automatically
renews for one year  terms,  unless  Merit  serves the  Company  with  notice to
terminate  90 days prior to the end of a term.  The  Company  did not  receive a
termination notice from Merit, so the next expirations date is June 1, 2001. The
Merit agreement is the largest liquids  contract the Company has. To fulfill the
contract,  the Company made modifications to the Well Draw Gas Plant to increase
its processing  capacity from 90,000 to  approximately  150,000 gallons per day.
The  Company  also   constructed   an  amine  treating  unit  to  reduce  sulfur
concentrations  of the NGLs at the  Bairoil,  Wyoming  plant  where the NGLs are
collected.  During  the  three  months  ended  September  30,  2000 the  Company
processed  an average of 40,151  gallons  per day of Merit  liquids  compared to
46,023 gallons per day for the three months ended  September 30, 1999. The Merit
contract  accounted for 40.24% of the total NGLs  processed for the three months
ended September 30, 2000 and 49.32% for 1999.

Kinder Morgan (formerly KN Gas Gathering) Agreement
      During 1998, the Company  entered into an agreement with KN Gas Gathering,
Inc. ("KNGG") to process NGLs on a month to month basis. On October 7, 1999, all
assets of KNGG was  purchase by Kinder  Morgan  ("KM").  During the three months
ended September 30, 2000, the Company processed an average of 20,770 gallons per
day of NGLs under the KM  contract  compared  to 32,543  gallons per day for the
three months ended  September 30, 1999. The KM contract  accounted for 20.82% of
the total NGLs  processed by the plant for the three months ended  September 30,
2000  compared to 34.87% of the total NGLs  process for the three  months  ended
September 30, 1999.



                                      11

<PAGE>



Conoco Pipeline
      The Conoco Pipeline, purchased by the Company from Conoco Pipeline Company
in  January  of 1995 is a 180 mile  crude  gathering  and  trunk  pipeline  with
associated pumping stations and storage tanks. The pipeline  transports oil from
oil producing fields in Converse County, Wyoming to Conoco's Lance Creek Station
where it connects  with an  interstate  crude oil pipeline  system.  The Company
receives   revenues  from  operation  of  the  Conoco  Pipeline  by  charging  a
transportation fee. The pipeline gathered and transported  approximately  53,026
barrels of oil for the three months ended  September 30, 2000 compared to 66,684
for the three months ended September 30, 1999.


Hat Creek Partnership
      The  Hat  Creek  Partnership,  of  which  Interline  Energy  owns a  20.4%
interest,  owned working interests in two oil and gas wells -- the Hat Creek #2,
and CH Federal wells -- and a 13 mile gathering line  interconnected to the Well
Draw Gas Plant.  Effective  July 1, 1999,  the Company sold its interests in the
Hat Creek #2 well for the sum of $2,040 to Dakota  Oil LLC.  Dakota Oil LLC is a
company formed and owned in part by Company insiders,  to attempt a recompletion
of the  Dakota  producing  zone in the Hat Creek #2 well,  which if  successful,
would have provided  additional  natural gas reserves to the Company's Well Draw
Gas Plant. Unfortunately, the recompletion was unsuccessful.


Oil Well Production
      The  Company  owns  working  interests  in four wells  located in Converse
County,  Wyoming.  The Company is also the operator of these  wells.  During the
three months ended  September 30, 2000, the wells produced  approximately  1,244
barrels of oil and 2,850 Mcf of natural  gas  compared  to  approximately  1,312
barrels of oil and 2,907 Mcf of natural gas for the three months ended September
30, 1999.


NGL Trucking Operations
      The   Company's   NGLs   transportation   operation   consists   of  seven
tractor-trailer-pup  combination units. These units move unprocessed natural gas
liquids  to Well Draw  fractionation,  and takes  propane,  butane  and  natural
gasoline from Well Draw to various refiner, chemical plants, and end-users. When
time permits, these trucks also move liquids on a common carrier basis for third
parties.  The Company intends to continue to emphasize this profitable  business
segment,  and believes that our reputation for flexibility and customer  service
will allow us to maximize opportunities.

      During the three months ended  September 30, 2000,  the  Company's  trucks
collectively traveled 257,930 miles and carried a total of 14 million gallons of
raw and finished  product for the three months ended September 30, 2000 compared
to 223,691 miles and 10 million  gallons of raw and finish product for the three
months ended September 30, 1999.



                                      12

<PAGE>



Interline Hydrocarbon - Used Oil Refining.
      In January, 1993, the Company acquired certain patent rights to a used oil
reprocessing  technology from Petroleum  Systems Inc.,  ("PSI").  However,  as a
result  of  substantial   independent  research  and  development  of  used  oil
technologies  and processes  since 1993,  the Company has been able to develop a
new process  which does not utilize the PSI  technology.  On May 28,  1998,  the
Company filed a patent  application in the United States Patent Office for a new
and alternative method from the PSI technology for processing used oil. This new
technology has been implemented in the Korean, Australian and Spanish Plants. As
a  result,  on  September  10,  1998 the  Company  reassigned  to PSI all of the
intellectual  rights it  obtained  from it under the  assignment  agreement.  In
making that  re-assignment,  the Company  assigned  all rights it had to receive
royalties  from  any  plants  constructed  by the  Company  which  utilized  PSI
technology.

      To date, the Company has constructed or licensed six used oil plants.  For
full disclosure on each plant,  refer to the Company's  December 31, 1999 10-KSB
filing.

     Revenues to the  Company,  from its used oil refining  technology  can come
from five  sources:  1)  profits  made from  constructing  used oil  plants,  2)
granting  exclusive  territories to licensee,  3) receiving  royalties  based on
either  production  or a  flat  yearly  licensing  fee,  4)  taking  partnership
interests in  operating  Plants by either  contributing  the  technology  and/or
making cash  contributions  for partnership  interests and, 5) rather than build
plants,  sell the construction  plans and provide  consultation and expertise so
the customer can then build the Plant.

      Based on the experiences with the six Plants that have been constructed or
licensed  by the  Company,  management's  current  belief  is to stay out of the
construction  business.  Further,  until the Company  becomes  more  financially
stable,  it is  not  in a  position  to  take  interests  in  operating  Plants.
Management  believes the best way for it to capitalize  on the  technology is to
sell the construction plans for a Plant and provide consultation services to the
purchaser.

      It has also become evident to management that demanding royalties based on
production in many  situations and countries is difficult.  Unless and until the
re-refined oil produced in a Plant can be sold at higher values based on pricing
similar to base  lubricating  oils,  on-going  royalties  based on production is
difficult to obtain. This reality has been seen in both Korea, where the royalty
was terminated for the first plant,  and England where, as described in previous
filings, the royalties were reduced and not payable until profitable.

      Management  still believes that there exists  economic  justification  and
interest in the used oil  refining  technology.  The most  viable  opportunities
management has discovered  are in countries that have  governmental  concessions
resulting in economic  incentives for  collecting  and  processing  used oil. In
March of 2000,  the Company hired Delphos  International,  a Washington DC based
consulting  firm  specializing  in  international  business  development to help
develop the  technology in foreign  nations.  Delphos has  experience in working
with  world  wide   government   agencies   which  offer  special   funding  and
consideration for environmental projects throughout the world.

      From experience, management is aware of the complicated nature between the
balance of supply and demand.  Management  has become much more selective in its
consideration  of selling the  technology to  prospective  purchasers and unless
favorable conditions exist the Company discourages the purchaser. Management has
become  much more  active in  helping  potential  customers  evaluate  their end
product sales markets.

Transpacific Industries - Australia
     In September 1996, the Company signed an exclusive  purchase agreement with
Transpacific Group of Companies granting them exclusive rights to the Technology
for all of Australia. Under

                                      13

<PAGE>



the  terms of the  agreement,  Transpacific  purchased  from the  Company a
24,000  gallon per day plant for $3.4  million.  On July 16, 1997,  Transpacific
announced  that it had formed a new  Australian  national  used oil  collection,
recycling  and refining  company  called  Nationwide  Oil Pty.  Ltd.  with Shell
Australia Ltd., and Mobil Oil Australia Ltd. to own and operate the plant.

      The Company  completed  construction of the Nationwide  plant in Sydney in
August  of 1998 and the  plant  has been  operating  since  that  time.  Per the
purchase  agreement,  upon  completion  of the plant the  Company is entitled to
retention monies in the amount of $186,509 and ongoing  royalties of 6 cents per
gallon.  Since the inception of the startup of the Australian plant, the Company
has tried on many occasions to receive these outstanding sums and to resolve the
royalty issues with  Transpacific.  These negotiations have not been successful.
In February of 2000,  the Company  hired legal  counsel in  Australia  to pursue
money due under the purchase  agreement.  On July 19, 2000,  the Company filed a
claim with the  Queensland  Supreme Court  seeking  payment of the royalties due
under the License Agreement. The action is currently in the discovery stage.


Ecolube, S.A. - Madrid, Spain
      On June 10, 1998 the Company signed an engineering and marketing agreement
with Ecolube,  S.A., a subsidiary of Sener Engineering of Madrid,  Spain.  Under
the agreement, the Company provided Ecolube with engineering  specifications and
construction  drawings  for the  building  of a 24,000  gallon per day waste oil
re-refinery in Madrid.  Under the agreement,  Ecolube will construct and operate
the  plant and  produce  lubricant  base  oil.  Interline  receives  a  $534,000
engineering  and  licensing  payment  and running  royalties  of $0.0175 on each
gallon produced and sold for 10 years. Ecolube has the right to build additional
plants in the  Iberian  Peninsula  (Spain and  Portugal)  for a four year period
commencing  from the date of plant  start  up.  The  Ecolube  Plant has now been
constructed  and currently in production  trail stage.  Full  commissioning  and
acceptance is expected to be completed during the fourth quarter of 2000.


Results of Operations

      The  following  analysis  of  the  financial   condition  and  results  of
operations should be read in conjunction with the Financial Statements and Notes
thereto, included elsewhere in this report.

Total Revenues For Three Months Ended September 30, 2000 and 1999

      Revenues  increased  $1,563,833,  or 155.5%,  to $2,569,504  for the three
months ended  September 30, 2000 as compared to $1,005,671  for the three months
ended September 30, 1999. The revenue increase  included a $1,563,833 or 155.5%,
increase in oil and gas revenues.  The Company's  total  revenues,  on a segment
basis, for the three months ended September 30, 2000 and 1999 were as follows:

         Revenues For Three Months Ended September 30, 2000 and 1999

                        2000           %           1999           %
-------------------------------------------------------------------------------

Oil and Gas          $2,569,504      100%       $1,005,671      100%
Used Oil refining         0            0%            0            0%
Other                     0            0%            0            0%
-------------------------------------------------------------------------------

Total Revenue        $2,569,504      100%       $1,005,671      100%
===============================================================================


                                      14

<PAGE>


Oil and Gas Revenues
      Oil and gas  revenues  contributed  100% of total  revenues  for the three
months  ended  September  30,  2000,  as compared to a 100% for the three months
ended September 30, 1999. Revenues increased  $1,563,833 or 155.5% to $2,569,504
for the three months ended  September 30, 2000 as compared to $1,005,671 for the
three months ended September 30, 1999.

      During the three  months ended  September  30,  2000,  revenues  increased
$1,563,833,  or  155.5%.  This  revenue  increase  was  mainly  attributed  to a
$1,605,022, or 529.84% increase in liquids (NGLs) sold to the local market under
the account of the Company, a $47,996, or19.8% decrease in fractionation fees, a
$5,610 or 1.51% decrease in transportation  fees, a $10,107,  or 20.48% decrease
in crude oil tariff  fees,  a $8,621 or 29.52%  increase in crude oil sales,  an
increase of $6,411,  or 70.72% in residue sales and an $7,491  increase in other
revenues.

      The  $1,605,022,  or 529.84%  increase in liquids (NGLs) sold to the local
market  under  the  account  of the  Company  was  attributed  to the  Company's
agreement to purchase  NGL's.  On June 18, 2000,  the Company agreed to purchase
approximately  50,000  gallons a day of NGLs from a local dealer of NGLs.  These
liquids are being  processed  and  fractionated  at the Well Draw Gas Plant into
propane,  butane and  natural  gasoline.  The liquids are then being sold in the
local market place to customers established by the Company. The agreement was on
a day to day basis and was terminated on August 9, 2000.

      The decrease in fractionation  fees was mainly attributed to a decrease in
liquids (NGLs) processed for others at the Well Draw Gas Plant. During the three
months ended September 30, 2000, the Company  processed for others an average of
71,546  gallons per day of NGLs  compared to 82,070  gallons a day for the three
months ended  September 30, 1999.  The 10,524  gallons a day decrease was mainly
attributed to liquids processed for Kinder Morgan. During the three months ended
September 30, 2000,  the Company  process an average of 20,770  gallons a day of
NGLs under the KM  contract  compared  to 32,543  gallons  per day for the three
months ended September 30, 1999.

      The  Company's  Oil & Gas  Operations  revenue for the three  months ended
September 30, 2000 and 1999 were as follows:

Oil & Gas Operations Revenue For Three Months Ended September 30, 2000 and 1999


                                  2000           %           1999         %
-------------------------------------------------------------------------------

Liquids (NGL) Sold            $1,907,950      74.25%       $302,928    30.12%
Fractionation Fees               194,426       7.57%        242,422    24.11%
Transportation Fees              367,097      14.29%        372,707    37.06%
Crude Tariff Fees                 39,239       1.53%         49,346     4.91%
Crude Oil Sold                    37,825       1.47%         29,204     2.90%
Residue Gas Sold                  15,476        .60%          9,065      .90%
Other                              7,491        .29%              0        0%

-------------------------------------------------------------------------------

Total Revenue                 $2,569,504        100%     $1,005,671      100%
===============================================================================


                                      15

<PAGE>

Used Oil Refining Revenues
      Since it  commenced  operations  in the used oil  refining  business,  the
Company has primarily derived revenues attributed to fees for engineering, plant
design,  license,  exclusively or other services  associated  with the Company's
used oil refining  technology.  The revenue  attributed to the used oil refining
business varies  significantly  from quarter to quarter reflecting the status of
the Company's fees and plant design services.

      Used oil refining  revenues  contributed  $0 total revenues for both three
month  periods ended  September 30, 2000 and 1999. In June of 1998,  the Company
entered into an  engineering  and  licensing  agreement  with  Ecolube,  S.A., a
subsidiary of Sener Engineering of Madrid,  Spain.  Under the Ecolube agreement,
the Company will receive a total  engineering and licensing  payment of $534,000
and will also receive payment for assisting in the startup and  commissioning of
the plant. From the inception of the Ecolube agreement, the Company has recorded
revenues of $409,000  attributed to the engineering and licensing  agreement and
$99,834  attributed  to the startup of the plant.  During the three months ended
September 30, 2000 and 1999, the Company  received no revenues for royalties for
its used oil technology.


Direct Costs
      Direct costs increased $1,546,192,  or 242.4%, to $2,184,067 for the three
months ended  September 30, 2000 compared to $637,875 for the three months ended
September 30, 1999. As a percent of revenues,  direct costs increased to 85% for
the three  months  ended  September  30,  2000  compared to 63.43% for the three
months ended September 30, 1999.

      The  $1,546,192  increase  in direct  costs was  related to the  Company's
155.5% increase in total revenues which was mainly attributed to the Company day
to day agreement to purchase  NGLs from a local dealer.  The increase of 21.57%,
as a percent of revenues was also directly  related to the agreement to purchase
NGLs for its own account. Agreements where the Company purchase NGLs for its own
account,  carries a lower gross margin when  compared to  agreements  to process
NGLs for others on a fee basis.  The  Company  also  experience  an  increase in
repair and  maintenance  costs at the Well Draw Gas Plant and higher diesel fuel
costs relating to its trucking operation.


Selling, General and Administrative
      Selling,  general  and  administrative  expenses  consist  principally  of
salaries and benefits, travel expenses, insurance, legal and accounting, outside
contract services,  information technical services and administrative  personnel
of the Company.

      Selling, general and administrative expenses increased $2,639, or 1.08% to
$245,929  for the year ended  September  30, 2000  compared to $243,290  for the
three  months ended  September  30,  1999.  As a percent of  revenues,  selling,
general and  administrative  expenses  decrease  14.62%,  to 9.57% for the three
months ended  September  30, 2000  compared to 24.19% for the three months ended
September 30, 1999.

      The increase of $2,639, or 1.08%, in selling,  general and  administrative
expenses  were mainly  attributed  to a increase  in legal and outside  contract
service.  During 2000,  the Company  reduced its outside  legal fees by $18,577,
reduced  outside  contract  services  by  $19,759,  offset  by  an  increase  in
accounting fees of $8,732.  Legal costs were mainly  attributed to the Company's
legal proceedings and patent protection.



                                      16

<PAGE>



Depreciation and Amortization
      Depreciation  and  amortization  expenses  increased  $3,116  or  1.72% to
$184,638 for the three months ended  September 30, 2000 compared to $181,522 for
the  three  months  ended   September  30,  1999.  As  a  percent  of  revenues,
depreciation and amortization  expenses  decreased to 7.19% for the three months
ended September 30, 2000 compared to 18.05% for the three months ended September
30, 1999.


Research and Development
      Research  and  development   expenses  were  mainly  attributable  to  the
development and enhancement of the Company's used oil refining  technology.  The
Company will continue to incur research and development expenses as it continues
to develop its used oil refining technology.

      Research and development  expenses decreased $11,537, or 76.63%, to $3,519
for the three months ended  September 30, 2000 compared to $15,056 for the three
months  ended  September  30,  1999.  As a percent  of  revenues,  research  and
development  expenses decreased to .14% for the three months ended September 30,
2000 compared to 1.5% for the three months ended September 30, 1999.


 (Loss) from operations
      (Loss) from operations  decreased $23,423, or 32.50%, to $48,649 loss from
operations  for the three months ended  September 30, 2000 compared to a $72,072
loss from  operations for the three months ended September 30, 1999. The $23,423
decrease in (loss) from  operations  was  attributed  to an 155.55%  increase in
revenues  offset by an increase in repairs and  maintenance at the Well Draw Gas
Plant and higher diesel fuel costs relating to the transportation operation.


Other income (expenses)
      Net interest income (expense) increased $320, or 2.02%, to $16,154 for the
three months ended  September  30, 2000 compared to $15,834 for the three months
ended September 30, 1999. The net increase was mainly  attributed to an increase
in  interest  earned  during 2000 on the  Company's  money  market and  interest
bearing accounts.

      Interest  expense to a related  party  increased  $13,054  or  20.72%,  to
$76,054 for the three months ended  September  30, 2000  compared to $63,000 for
the three months ended  September  30, 1999.  This $13,054  increase in interest
expense to a related party was attributed to the Company note agreement with its
major creditor.  On September 22, of 1999 and 2000, the Company did not pay this
major creditor the first and second  installments  ($750,000 and $1,000,000) due
under the note  agreement.  As a result,  the note  ($3,595,920) is currently in
default.  Under the note agreement,  if default occurs any installments not paid
when due shall bear an increase in interest from seven (7%) to fourteen (14%).


Liquidity and Capital Resources
      Sources  of  liquidity  for the  Company  are  revenues  from  oil and gas
operations and revenues from the sale of its  hydrocarbon  refining  technology.
Currently,  the only consistent  ongoing revenue sources to the Company are from
its oil and gas operations in Wyoming.  The Company  receives  revenues from its
used oil  refining  technology  when a sale or  license  is  executed.  On-going
royalty fees will be received from the  Australia  Plant (see Part II - Item 1 -
Legal  Proceeding),  and the Spanish Plant when  commissioning and acceptance is
completed. While the Company continues to

                                      17

<PAGE>



work with  potential  purchasers  of its  technology,  such  sales and  expected
revenues are uncertain and unpredictable.

      On  September 9, 1998,  the plan of  reorganization  under  Chapter 11 was
confirmed by the United States  Bankruptcy  Court for the District of Utah.  The
Company reached agreement with its major creditor during the Chapter 11 case and
the terms of the  agreement  were  incorporated  in the  plan.  The terms of the
agreement  included  a  new  trust  deed  note  dated  September  22,  1998  for
$3,600,000,  together  with  interest  at the rate of 7% per annum on the unpaid
principal.  The Company is obligated to make  quarterly  payments of all accrued
interest beginning on December 22, 1998 and continuing until September 22, 2002.
The  Company  is also  obligated  to make  principal  payments  of  $750,000  on
September  22, 1999;  $1,000,000 on September 22, 2000 (the Company did not make
the first two  installments  - see below);  $1,000,000 on September 22, 2001 and
$850,000 on September  22, 2002.  The note is secured by Trust Deeds  securing a
security  interest in the Company's Alpine Office located in Alpine,  Utah and a
security  interest in all assets of Interline  Energy Service,  Inc. The Company
executed a new Pledge  Agreement with this major creditor  pledging stock of all
subsidiaries of the Company.

      In August of 1999, the Company received $4,080 for its interest in the Hat
Creek #2 well. Under the pledge agreement with this major creditor, all proceeds
from the sell of Company assets will go to pay down the principal portion of the
note.  After  applying  the  proceeds  from  this sell the note was  reduced  to
$3,595,920.

      At the time the plan was confirmed, management believed the Company's cash
from the oil and gas  operating  activities,  cash received from the sale of its
hydrocarbon  refining technology and cash retained under the reorganization plan
would be adequate to meet its operating needs in the near term and would provide
a plan to meet debt obligations.  Certain  assumptions where made in the plan of
reorganization  that the Company  would  receive cash from the  marketing of its
hydrocarbon  refining  technology.  Since September 10, 1998 when the Bankruptcy
Plan was confirmed, the Company has received $167,834 cash from the marketing of
it refining technology.

      Under the new trust  deed note,  (see new terms of trust  deed  above) the
Company is obligated to pay this major  creditor  $750,000 by September 22, 1999
and  $1,000,000 by September 22, 2000. As of November 14, 2000,  the Company has
not paid the first two principal payments due under the trust note. As a result,
the note for  $3,595,920  due to this major  creditor is  currently  in default.
Under the trust deed note if default  occurs in the payment of  installments  of
principal or interest,  the holder thereof,  at its option and without notice or
demand,  may declare the entire  principle  balance and accrued interest due and
payable.  Also if default occurs any  installments  not paid when due shall bear
interest  thereafter at the rate of fourteen percent (14%) per annum until paid.
The note is secured by Trust Deeds securing a security interest in the Company's
Alpine Office located in Alpine,  Utah and a security  interest in all assets of
Interline Energy Service, Inc. The Company executed a pledge agreement with this
major creditor pledging stock of all subsidiaries of the Company.  Per the trust
deed note and pledge  agreement,  upon default,  the major creditor can exercise
his rights and sell or demand the Company to sell the  collateral or any part of
the collateral to cure the installments in default  ($750,000 and $1,000,000) or
the total  ($3,595,920) due under the note. As of November 14, 2000, the Company
is current on all interest payments.

      In an effort to cure the  default  status  with its  major  creditor,  the
Company is seeking to sell its Alpine Office Building  located in Utah. Also the
Company is trying to raise cash from the marketing of it refining  technology or
raise additional  financing through the sale of equity,  sale of debt or assets.
If the  Company  is  unable to raise  additional  cash it may be forced to cease
operations and liquidate the assets of the Company.


                                      18

<PAGE>



      Management has put strict restraints on all capital  expenditures with the
exception of any necessary  expenditures to maintain current  operations.  As of
September 30, 2000, the Company has incurred  $156,860 in capital  expenditures.
Management is unaware of any significant  future capital  expenditures.  However
the very nature of equipment  operation,  ware and tear and  replacement in this
type of  operation  can be  significant.  The  Company  will  continue  to incur
research  and  development  costs  as  it  continues  to  develop  its  refining
technology.  At present these  activities are being performed by current Company
employees and part time contract consultants.

      The Company's  net cash  provided by operations  was $456,514 for the nine
months  ended  September  30, 2000  compared to net cash used by  operations  of
$399,076  for the nine months  ended  September  30,  1999.  The net increase of
$855,590 in cash provided by operations for the nine months ended  September 30,
2000 was mainly  attributed to a $75,888  decrease in the Company's net loss and
significant   timing  difference  in  collection  of  accounts   receivable  and
disbursement  of accounts  payable  between quarter ended September 30, 2000 and
quarter ended September 30, 1999.


                        PART II - OTHER INFORMATION

Item 1.  Legal Proceedings
         LEGAL PROCEEDINGS

Interline U.K.
      In February  1995,  the Company  formed  Interline  (UK) Limited,  a joint
venture with Whelan  Environmental  Services,  Ltd. of Birmingham,  England,  to
construct a refinery in Stoke, England. As part of the transaction,  the Company
executed a licensing  agreement  with the joint  venture  giving it the right to
own,  operate and practice the Interline used oil  technology.  The terms of the
joint  venture  provided  the Company a 40%  ownership  interest,  and under the
license agreement, the right to receive a 6 cent gross royalty per gallon of oil
processed.  The refinery was  completed in early 1996 and  officially  opened in
July 1996.  The refinery,  with a capacity to process 24,000 gallons of used oil
per day, is in current  production.  In April of 1997 the  Company  sold its 40%
interest  in the joint  venture to John Whelan for  $500,000.  Whelan is now the
sole owner of the used oil refinery in Stoke-on-Trent,  and is authorized to use
the Interline technology under the original licensing agreement.  As a result of
the realities of the pricing structure in England for used oil products, and the
higher than expected  operating  costs to operate the England plant,  the 6 cent
royalty  called for in the license  agreement  was reduced to 3 cents and is not
payable until the refinery is profitable.  To date, the Company has not received
any royalty revenue from the English plant.  Further,  John Whelan had only paid
$200,000 of the purchase price.  After attempted  settlement  negotiations broke
down, on November 19, 1998 the Company instituted a legal proceeding against him
in the High Court of Justice, Queens Bench Division,  Bristol District Registry,
Bristol Mercantile Court

      In January of 2000,  the  Company was  required  to deposit  approximately
$80,000 security bond with Bristol  Mercantile Court. The Company was also faced
with spending $50,000 to litigate the case. Due to the Company's cash restraints
and in the best interest of the Shareholders, the Company elected not to proceed
with the case and the action against John Whelan was dismissed.  The Company has
the option to re-file this claim against John Whelan for five years.

Transpacific Industries - Australia
      In September 1996, the Company signed an exclusive purchase agreement with
Transpacific Group of Companies granting them exclusive rights to the Technology
for all of Australia.  Under the terms of the agreement,  Transpacific purchased
from the Company a 24,000 gallon per day plant for $3.4 million.


                                      19

<PAGE>



      The plant was completed and has been  operating  since August of 1998. Per
the purchase agreement,  upon completion of the plant the Company is untitled to
retention monies in the amount of $186,509 and ongoing  royalties of 6 cents per
gallon.  Since the inception of the startup of the Australian plant, the Company
has tried on many occasions to receive these outstanding sums and to resolve the
royalty issues with  Transpacific.  These negotiations have not been successful.
In February of 2000,  the Company  hired legal  counsel in  Australia  to pursue
money due under the purchase  agreement.  On July 19, 2000,  the Company filed a
claim in the Queensland Supreme Court seeking payment of the royalties due under
the License Agreement. The action is currently in the discovery stage.

Item 2. Changes in Securities:
        None


Item 3. Defaults Upon Senior Securities:
      On  September 9, 1998,  the plan of  reorganization  under  Chapter 11 was
confirmed by the United States  Bankruptcy  Court for the District of Utah.  The
Company reached agreement with its major creditor during the Chapter 11 case and
the terms of the  agreement  were  incorporated  in the  plan.  The terms of the
agreement  included  a new  trust  deed  note  dated  September  22,  199,8  for
$3,600,000,  together  with  interest  at the rate of 7% per annum on the unpaid
principal.  The Company is obligated to make  quarterly  payments of all accrued
interest beginning on December 22, 1998 and continuing until September 22, 2002.
The  Company  is also  obligated  to make  principal  payments  of  $750,000  on
September  22,  1999 (the  Company did not make this  installment  - see below);
$1,000,000 on September 22, 2000;  $1,000,000 on September 22, 2001 and $850,000
on September  22, 2002.  The note is secured by Trust Deeds  securing a security
interest in the Company's  Alpine Office located in Alpine,  Utah and a security
interest in all assets of Interline Energy Service,  Inc. The Company executed a
new Pledge Agreement with this major creditor pledging stock of all subsidiaries
of the Company.

      In August of 1999, the Company received $4,080 for its interest in the Hat
Creek #2 well. Under the pledge agreement with this major creditor, all proceeds
from the sell of Company assets will go to pay down the principal portion of the
note.  After  applying  the  proceeds  from  this sell the note was  reduced  to
$3,595,920.

      Under the new trust  deed note,  (see new terms of trust  deed  above) the
Company is obligated to pay this major  creditor  $750,000 by September 22, 1999
and  $1,000,000 by September 22, 2000. As of November 14, 2000,  the Company has
not paid the first two principal payments due under the trust note. As a result,
the note for  $3,595,920  due to this major  creditor is  currently  in default.
Under the trust deed note if default  occurs in the payment of  installments  of
principal or interest,  the holder thereof,  at its option and without notice or
demand,  may declare the entire  principle  balance and accrued interest due and
payable.  Also if default occurs any  installments  not paid when due shall bear
interest  thereafter at the rate of fourteen percent (14%) per annum until paid.
The note is secured by Trust Deeds securing a security interest in the Company's
Alpine Office located in Alpine,  Utah and a security  interest in all assets of
Interline Energy Service, Inc. The Company executed a pledge agreement with this
major creditor pledging stock of all subsidiaries of the Company.  Per the trust
deed note and pledge  agreement,  upon default,  the major creditor can exercise
his rights and sell or demand the Company to sell the  collateral or any part of
the collateral to cure the installments in default  ($750,000 and $1,000,000) or
the total  ($3,595,920) due under the note. As of November 14, 2000, the Company
is current on all interest payments.

            In an effort to cure the default status with its major creditor, the
Company is seeking to sell its Alpine Office Building  located in Utah. Also the
Company is trying to raise cash from the

                                      20

<PAGE>



marketing of it refining  technology or raise additional  financing  through the
sale of  equity,  sale of debt or  assets.  If the  Company  is  unable to raise
additional cash it may be forced to cease operations and liquidate the assets


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


Item 5. Other Information:
        None


Item 6(a). Exhibits:
           None


Item 6(b) Form 8-K:
          None



                                      21

<PAGE>


                                  SIGNATURES

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


Dated: November 14, 2000                  INTERLINE RESOURCES CORPORATION



                                          By: /s/ Michael R. Williams
                                         ----------------------------------
                                           Michael R. Williams
                                           CEO/President
                                           Principal Executive Officer
                                           Director


                                          By: /s/ Mark W. Holland
                                         ----------------------------------
                                           Mark W. Holland
                                           Chief Financial Officer/Director


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

     Date                          Title                  Signature
   --------                      ---------             --------------
November 14, 2000              CEO/President         /s/ Michael R.  Williams
                               and Director          -------------------------
                                                         Michael R. Williams

November 14, 2000              Director/            /s/ Laurie Evans
                               Secretary            -------------------------
                                                        Laurie Evans



                                      22