FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


              [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                      For the Quarter ended March 31, 2000

                         COMMISSION FILE NUMBER:  0-9562

                            COLONIAL INDUSTRIES, INC.

                          formerly  Impact Energy, Inc.

Texas                                                                 84-0818655
(Jurisdiction  of  Incorporation)        (I.R.S.  Employer  Identification  No.)

PO  Box  980459,  Houston  Texas                                      77098-0459
(Address of principal executive offices)                              (Zip Code)

Registrant's  telephone  number,  including  area  code:         (713)  526-8224


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


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

Yes  []   No  [x]  (Indicate  by check mark whether the Registrant (1) has filed
all  report  required  to  be  filed  by  Section  13 or 15(d) of the Securities
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.)

As  of  March  31,  2000,  the  number of shares outstanding of the Registrant's
Common  Stock  was  6,802,434.

                                        1
<PAGE>

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                          PART I: FINANCIAL INFORMATION
--------------------------------------------------------------------------------

                          ITEM 1.  FINANCIAL STATEMENTS

     Attached  hereto and incorporated herein by this reference are consolidated
unaudited  financial statements for the Quarter ended March 31, 2000, as Exhibit
QF1-00.

                ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                   FINANCIAL CONDITION AND PLAN OF OPERATIONS
Reg  SB  303

 (A)  PLAN  OF OPERATION. The Company is a candidate for a business combination,
joint  venture,  or  structured  acquisition,  which, if effective, would create
profitability  for  the Company and its shareholders. There are no present plans
to  pursue  any  acquisition  at  this  time.

 (B)  RESULTS  OF  OPERATIONS.  We  have  no  current  business, and have had no
operations  in  the  last  two  fiscal  years.  This  Issuer  has no business or
productive  assets  and  remains  essentially dormant, its activities limited to
maintaining  its  corporate  franchise  in  Texas,  and making required periodic
filings  and  disclosure.

 (C)  LIQUIDITY  AND  CAPITAL  RESOURCES.  We  have  no capital resources and no
liquidity.  This  Issuer  has  no  business  or  productive  assets  and remains
essentially  dormant,  its  activities  limited  to  maintaining  its  corporate
franchise  in  Texas,  and  making  required  periodic  filings  and disclosure.

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                           PART II: OTHER INFORMATION
--------------------------------------------------------------------------------

       Exhibit QF1-00     Financial Statements (Un-Audited) March 31, 2000

                                   SIGNATURES


     Pursuant  to  the requirements of the Securities Exchange Act of 1934, this
Form  10-QSB  Report for the Quarter ended March 31, 2000, has been signed below
by  the  following person on behalf of the Registrant and in the capacity and on
the  date  indicated.


March  31,  2000


                            COLONIAL INDUSTRIES, INC.

                          formerly  Impact Energy, Inc.

                                       by

/s/                    /s/
Joe  Kane              Jack  Wells
President/Director     Secretary/Treasurer

                                        2
<PAGE>

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                                 EXHIBIT QF1-00
                         UN-AUDITED FINANCIAL STATEMENTS
                           FOR THE THREE MONTHS ENDED
                                 MARCH 31, 2000
--------------------------------------------------------------------------------

                                        3
<PAGE>

                            COLONIAL INDUSTRIES, INC.
                           BALANCE SHEETS (UNAUDITED)
                   For the fiscal year ended December 31, 1999
                  And for the three months ended March 31, 2000

<TABLE>
<CAPTION>
<S>                                                    <C>          <C>
                                                         March 30,    December 30,
                                                             2000            1999
                                                       -----------  --------------
CURRENT ASSETS
Cash                                                   $        0   $           0
TOTAL CURRENT ASSETS                                            0               0
                                                       -----------  --------------
TOTAL ASSETS                                                    0               0
                                                       ===========  ==============

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable                                           49,577          49,577
Accrued interest                                           45,261          44,038
                                                       -----------  --------------
Total Current Liabilities                                  94,838          93,615
                                                       -----------  --------------
STOCKHOLDERS' EQUITY
Common Stock, no par value; authorized 75,000,000
   shares of no par value, issued and outstanding;
   6,802,434,  6,802,434  shares respectively
Additional paid-in Capital (Discount on stock)            (48,932)        (48,932)
Accumulated Surplus (Deficit)                             (45,906)        (44,683)
                                                       -----------  --------------
Total Stockholders' Equity                                (94,838)        (93,615)
                                                       -----------  --------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY             $        0   $           0
                                                       ===========  ==============
</TABLE>

   The accompanying notes are an integral part of these financial statements.
                                        4
<PAGE>

                            COLONIAL INDUSTRIES, INC.
             STATEMENTS OF LOSS AND ACCUMULATED DEFICIT (UNAUDITED)
               For the three months ended March 31, 2000 and 1999

<TABLE>
<CAPTION>
<S>                                   <C>          <C>          <C>
                                                                   Deficit
                                                                 accumulated
                                                                  during the
                                        March 30,    March 30,    development
                                            2000         1999        stage
                                      -----------  -----------  -------------
REVENUES                              $        0   $        0   $          0
                                      -----------  -----------  -------------
EXPENSES
Professional fees                              0            0            645
Interest Expense                           1,223        1,223         45,261
                                      -----------  -----------  -------------
Total Operating Expense                    1,223        1,223         45,906
                                      -----------  -----------  -------------
NET INCOME (LOSS)                        ($1,223)     ($1,223)      ($45,906)
                                      ===========  ===========  =============
NET (LOSS) PER SHARE                   ($0.00018)   ($0.00018)     ($0.03035)
                                      ===========  ===========  =============
Weighted average shares outstanding    6,802,434    6,802,434      1,512,429
                                      ===========  ===========  =============
</TABLE>

   The accompanying notes are an integral part of these financial statements.
                                        5
<PAGE>

                            COLONIAL INDUSTRIES, INC.
             STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)(UNAUDITED)
   For the period from inception of the Development Stage on January 1, 1990,
           For the fiscal years ended December 31, 1991, through 1999
                  And for the three months ended March 31, 2000

<TABLE>
<CAPTION>
<S>                                         <C>          <C>          <C>
                                                                        From inception on
                                                                          January 1, 1990
                                                                              through
                                                March 30,    March 30,       March 31,
                                                  2000         1999             2000
                                            -----------  -----------  -------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)                              ($1,223)     ($1,223)            ($45,906)
Add item not requiring the use of cash           1,223        1,223               45,906
                                            -----------  -----------  -------------------
Net use of cash from operating activities            0            0                    0
                                            -----------  -----------  -------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Issuance of common stock
Increase (decrease) in accounts payable
NET INCREASE IN CASH
CASH AT BEGINNING OF PERIOD                          0          -0-                  -0-
                                            -----------  -----------  -------------------
CASH AT END OF PERIOD                       $        0   $        0   $                0
                                            ===========  ===========  ===================
</TABLE>

   The accompanying notes are an integral part of these financial statements.
                                        6
<PAGE>

                            COLONIAL INDUSTRIES, INC.
                       STATEMENTS OF CASH FLOW (UNAUDITED)
               For the three months ended March 31, 2000 and 1999

<TABLE>
<CAPTION>
<S>                                        <C>           <C>            <C>             <C>
                                                                        Additional         Deficit
                                                                          Paid-in         Accumulated
                                                                          Capital         During the
                                           Common Stock                  (Discount on     Development
                                              Shares        Amount         Stock)            Stage
                                           ------------  -------------  --------------  -------------

Balance at beginning of development                 999  $ 13,110,115   $           0   ($13,159,047)
   stage - January 1, 1990
Net Loss December 31, 1990-1997                       0             0               0        (34,252)
                                           ------------  -------------  --------------  -------------
Balance December 31, 1997                           999    13,110,115               0    (13,193,299)

Fractional shares from stock split                1,435             0               0              0

Shares issued for acquisition of
   Colonial Industries and reorganization     6,800,000   (13,110,115)        (48,932)    13,159,047

Net Loss December 31, 1998                            0             0               0         (5,538)
                                           ------------  -------------  --------------  -------------
Balance December 31, 1998                     6,802,434             0         (48,932)       (39,790)
-----------------------------------------------------------------------------------------------------
Net (Loss) for the period ended
     December 31, 1999                                0             0               0         (4,893)
                                           ------------  -------------  --------------  -------------
Balance December 31, 1999                     6,802,434             0         (48,932)       (44,683)

Net (Loss) for the period ended
     March 31, 2000                                   0             0               0         (1,223)
                                           ------------  -------------  --------------  -------------
Balance March 31, 2000                        6,802,434  $          0        ($48,932)      ($45,906)
                                           ============  =============  ==============  =============
</TABLE>

   The accompanying notes are an integral part of these financial statements.
                                        7
<PAGE>
                            COLONIAL INDUSTRIES, INC.
                          (a Development Stage Company)
                 Notes to The Consolidated Financial Statements
                             March 31, 2000 and 1999

NOTE  I  -  Summary  of  Significant  Accounting  Policies

a.     Organization

     Colonial  Industries,  Inc. ("the Company) formerly known as Impact Energy,
Inc.,  (a Colorado corporation organized on April 1, 1980) was originally formed
to  engage  in exploration for, and development, production and sale of, oil and
gas.  During  March,  1988  Impact  contributed  all  its  producing oil and gas
properties to Southwest Sites Inc. and distributed the Ownership of Southwest to
Impact's  shareholders.  After  the  disposition  of the oil and gas properties,
Impact  began  pursuing  investment  opportunities  in  the  financial  services
industry.

     Impact  made  public announcements during 1988 stating its intent to pursue
the acquisition of failed Banks and Savings and Loans in the state of Texas.  No
acquisitions were made in 1988 although Impact did provide the financing for the
recapitalization  of  one  Texas  bank and provided the capital to refinance the
control  group  of  another.

The  Company  went  inactive  in  1989  and  has  been  dormant  ever  since.

     On  April  23,  1998,  the  Company merged with Impact Energy, Inc. a Texas
corporation  with  the  Texas  corporation being the survivor.  Then on the same
date,  the  Company merged with Colonial Industries, Inc. a Texas corporation on
April  22, 1998 and changed the name of the Company to Colonial Industries, Inc.
Colonial  has  75,000,000  no par value shares authorized, and a share for share
exchange  took  place.  A  reorganization  adjustment  was made on the books and
records  and  the  retained  deficit  was  eliminated.

b.     Accounting  Method

The  Company  recognizes income and expenses on the accrual basis of accounting.

c.     Earnings  (Loss)  Per  Share

The  computation  of earnings per share of common stock is based on the weighted
average  number  of  shares outstanding at the date of the financial statements.
                                        8
<PAGE>

                            COLONIAL INDUSTRIES, INC.
                          (a Development Stage Company)
                 Notes to the Consolidated Financial Statements
                             March 31, 2000 and 1999

NOTE  I  -  Summary  of  Significant  Accounting  Policies  (Continued)

d.     Cash  and  Cash  Equivalents

The  Company  considers  all  highly liquid investments with maturities of three
months  or  less  to  be  cash  equivalents.

e.  Provision  for  Income  Taxes

     No  provision  for income taxes has been recorded due to net operating loss
carryforwards  totaling  approximately  $1,700,000  that  will be offset against
future  taxable  income.  These  NOL carryforwards have already begun to expire.
No tax benefit has been reported in the financial statements because the Company
believes  there  is a 50% or greater chance the carryforward will expire unused.

     Deferred  tax  assets  and the valuation account is as follows at March 31,
2000  and  December  31,  1999  and  1998.
March  31,               December  31,

                                      2000               1999               1998
--------------------------------------------------------------------------------
     Deferred  tax  asset:
     NOL  carrryforward                   $  578,000     $  578,000     $578,000
     Valuation  allowance                  (578,000)     (578,000)     (578,000)
--------------------------------------------------------------------------------
     Total                               -0-               -0-               -0-
================================================================================

f.   Use  of  estimates

     The  preparation  of  financial  statements is in conformity with generally
accepted  accounting  principles  requires  management  to  make  estimates  and
assumptions  that  affect reported amounts of assets and liabilities, disclosure
of contingent assets and liabilities at the date of the financial statements and
revenues  and  expenses  during  the  reporting  period.  In  these  financial
statements,  liabilities  involve  extensive reliance on management's estimates.
Actual  results  could  differ  from  those  estimates.
                                        9
<PAGE>

                            COLONIAL INDUSTRIES, INC.
                          (a Development Stage Company)
                 Notes to the Consolidated Financial Statements
                             March 31, 2000 and 1999

NOTE  I  -  Summary  of  Significant  Accounting  Policies  (Continued)

g.     Principles  of  Consolidation

     The  Consolidated  Financial  Statements  include  the accounts of Colonial
Industries,  Inc  (formerly  Impact  Energy,  Inc.)  a Colorado corporation, its
wholly  owned  subsidiary Impact Energy, Inc. a Texas corporation and its wholly
owned  subsidiary  Colonial  Industries,  Inc.  All  intercompany  accounts  and
transactions  have  been  eliminated  in  the  consolidation.

NOTE  2  -  Going  Concern

     The  accompanying financial statements have been prepared assuming that the
Company  will  continue  as  a  going concern.  The Company has no assets and no
operating  activity  and is dependent upon financing to continue operations, The
financial  statements  do not include any adjustments that might result from the
outcome  of  this  uncertainty.  It  is  management's  plan to find an operating
company  to  merge  with  providing  necessary  operating  capital.

NOTE  3  -  Development  Stage  Company

     The  Company  is  a  development  stage  company  as  defined  in Financial
Accounting  Standards  Board  Statement No. 7. It is concentrating substantially
all  of its efforts in raising capital and developing its business operations in
order  to  generate significant revenues.  Management has elected to use January
1,  1990  as  the  date  the  Company  began  the  development  stage.

NOTE  4  -  Liens  and  Judgments

     The Company has two tax liens and one outstanding judgment.  Taxes are owed
to  the  IRS  and  the  State  of Texas in the amount of $9,812.  An outstanding
judgment  of  $39,120  is also outstanding on the records of the County Clerk of
Dallas  County,  Texas.  These  liabilities  are  reflected  on  the  records as
accounts  payable  and  accrued interest on  these  obligations  have also been
recorded through  March  31,  2000.
                                       10
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