UNITED STATES                          
                SECURITIES AND EXCHANGE COMMISSION
                     WASHINGTON, D.C.  20549


                           FORM 10-QSB


         QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
             OF THE SECURITIES EXCHANGE ACT OF 1934.

For the Quarter ended December 31, 1997Commission File No. 133-16736 


    Gulfstar Industries, Inc. (formerly TIER Environmental Services, Inc.     
      (Exact name of registrant as specified in its charter)

           Delaware                                      23-2442288            
      (State or other jurisdiction of    (I.R.S. Employer Identification Number)
      incorporation or organization)


20505 U.S. 19N. #12-283, Clearwater, FL                     34624              
 (Address of principal executive offices)                 (Zip Code)


Issuer's telephone number, (813)   441    -   4442            


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

     Yes:                No:   X 


Transitional Small Business Disclosure Format:

     Yes:   X            No:     


The number of shares outstanding of each of the registrant's classes of common
stock as of December 31, 1997 is 9,106,365 shares all of one class of $.032 par
value common stock and 75,000 shares of convertible preferred stock with a 
$10.00 par value.

<PAGE>
            GULFSTAR INDUSTRIES, INC. AND SUBSIDIARIES
           (FORMERLY TIER ENVIRONMENTAL SERVICES, INC.)



                              INDEX

                                                               PAGE 

PART I    FINANCIAL INFORMATION

          Consolidated Balance Sheet - December 31, 1997               1   

          Consolidated Statements of Operations - Three Months
            Ended December 31, 1997 and December 31, 1996              2   

          Consolidated Statement of Cash Flows - Three Months
            Ended December 31, 1997 and December 31, 1996            3-4  

          Notes to the Consolidated Financial Statements             5-6  

          Management's Discussion and Analysis of financial
            conditions and results of operations                     7-8  


PART II   OTHER INFORMATION

          Item 1.   Legal Proceedings                                  9

          Item 2.   Changes in Securities                              9
          Item 3.   Defaults Upon Senior Securities                    9

          Item 4.   Submission of Matters to a Vote of                 9
                      Security Holders

          Item 5.   Other Information                                  9

          Item 6.   Exhibits on Reports on Form 8-K                    9

Signature Page                                                        10

<PAGE>
            GULFSTAR INDUSTRIES, INC. AND SUBSIDIARIES
           (FORMERLY TIER ENVIRONMENTAL SERVICES, INC.)
                   CONSOLIDATED BALANCE SHEETS
                        DECEMBER 31, 1997





      Assets

Current Assets
  Cash                                                         $      32
      
      Total Current Assets                                            32

      Total Assets                                             $      32
      Liabilities and Stockholders' Deficit


Current Liabilities
  Unsecured creditors of subsidiary                            $ 239,885
  Class III Creditors                                             53,014
  Class IV Creditors                                             812,649
  Accrued Administrative Expense                                   8,381

      Total Current Liabilities                                1,113,929

                                                                        

Stockholders' Deficit
  Common stock, par value $.032 per share; authorized
    10,000,000  shares, issued and outstanding 9,106,365         291,404
  Convertible preferred stock, authorized 1,000,000
    shares, par value $10.00; 75,000 shares issued
    And outstanding(convertible and subject to 
    reorganization)                                              750,000
Additional paid in capital                                     3,166,718
Retained deficit (October 1, 1993)                               (59,033)
Retained deficit, subsequent to quasi-reorganization          (5,262,986)

      Total Stockholders' Deficit                             (1,113,897)

      Total Liabilities and Stockholders' Deficit             $       32














                  GULFSTAR INDUSTRIES, INC. AND SUBSIDIARIES
                 (FORMERLY TIER ENVIRONMENTAL SERVICES, INC.)
                    CONSOLIDATED STATEMENTS OF OPERATIONS




                                                           For the
                                                      Three Months Ended
                                                         December 31,
                                                       1997         1996   

Contract Revenues Earned                           $        -   $   967,260
Other fees and income                                       -             -

    Total Revenue                                           -       967,260

Cost of contract revenues earned                            -       822,028

Gross Profit                                                        144,232

Operating Expenses
  Selling and administrative expenses                   8,381       174,383
  Depreciation and amortization                             -        28,896
  Interest expense                                          -        16,502
  Provision for bad debts                                   -         2,000

Loss from operating activities                         (8,381)      (77,549)

Loss from discontinued operation of Florida
 environmental subsidiary including $1,101,929
 impairment of goodwill, $38,946 of bad debts,
 $16,403 abandonment of fixed assets,
 $196,132 cancellation of indebtedness income
 and $213,961 loss from operations during the
 phase out period                                           -    (1,136,162)

Provision for taxes                                         -             -

      Net Loss                                     $(   8,381)  $ 1,213,711)

(Loss) per share                                   $  ( .0009)  $     (.132)

Weighted average shares outstanding                 9,106,365     9,181,565














                  GULFSTAR INDUSTRIES, INC. AND SUBSIDIARIES
                (FORMERLY TIER ENVIRONMENTAL SERVICES, INC.)
                    CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                   For the Three Months Ended
                                                          December 31,
                                                       1997         1996  
OPERATING ACTIVITIES
  Cash Flows Used In Operating Activities:
    Net loss from operations                         $ (8,381)      $(77,549)
    Adjustments to reconcile net loss to cash
      used in operating activities:
    Expense reduction due to the rescission of
      common stock                                          -        (18,250)
    Depreciation and amortization                           -         28,896
    Provision for bad debts                                 -          2,000
    (Increase) decrease in accounts receivable              -        (60,716)
    (Decrease) in accounts payable and accrued 
      expenses                                          8,284        160,090
    Increase in accrued interest                            -         16,502
                                                          (97)        50,973
DISCONTINUED OPERATING ACTIVITIES:
 Cash Flows (Used In) Discontinued Operating
   Activities:
   Net loss                                                 -     (1,136,162)
   Adjustments to reconcile net loss to net cash
    used in operating activities:
    Allowance for escrow loss                               -         38,946
    Provision for bad debts                                 -         16,403
    Loss on assets disposed                                 -      1,101,929
    Impairment losses                                       -         59,571
    Cancellation of indebtedness                            -      1,616,552
    Decrease (increase) in contracts in progress            -      1,493,814
    Decrease (increase) in accounts receivable              -        720,491
    (Increase) decrease in other receivables and
      escrow deposits                                       -        304,212
    (Decrease) increase in contracts payable                -     (1,493,814)
    (Decrease) increase in accounts payable and
      accrued expenses                                      -     (1,157,891)
    Decrease (increase) in other assets                     -              -
      Net cash (used in) discontinued operating
       activities                                           -        (52,501)


INVESTMENT ACTIVITIES
  Cash Flows Used In Investment Activities:
    Capital expenditures                                    -         (2,896)
                                                            -         (2,896)











                   GULFSTAR INDUSTRIES, INC. AND SUBSIDIARIES
                  (FORMERLY TIER ENVIRONMENTAL SERVICES, INC.)
               CONSOLIDATED STATEMENTS OF CASH FLOWS - (Continued)

                                                  For the Three Months Ended
                                                          December 31,
                                                       1997         1996  
FINANCING ACTIVITIES
  Cash Flows Used In Financing Activities:
    (Repayment) of stockholder loans                        -          -
    Proceeds from loan payable - related parties
     (net)                                                  -          -
    (Decrease) increase in notes payable (net)              -          -
                                                            -          -

Net (decrease) in cash and cash equivalents               (97)    (1,528)

Cash and cash equivalents, beginning of the period        129      1,657

Cash and cash equivalents, end of the period        $      32  $     129








<PAGE>
                     GULFSTAR INDUSTRIES, INC. AND SUBSIDIARIES
                     (FORMERLY TIER ENVIRONMENTAL SERVICES, INC.)
                      NOTES TO CONSOLIDATED FINANCIAL STATEMENT
                 (For three months ended December 31, 1997 and 1996)

A.   BASIS OF PRESENTATION

     The accompanying unaudited condensed consolidated financial statements
     have been prepared in accordance with generally accepted accounting
     principles for interim financial information and with the instructions to
     Form 10-QSB and Article 10 of Regulation S-X.  Accordingly, they do not
     include all of the information and footnotes required by generally
     accepted accounting principles for complete financial statements.  In the
     opinion of management, all adjustments (consisting of normal recurring
     accruals) considered necessary for a fair presentation have been included. 
     Operating results for the three months period ended December 31, 1997 are
     not necessarily indicative of the results that may be expected for the
     year ended September 30, 1998.  Earnings per share are based on weighted
     average shares outstanding for all periods presented giving effect to
     75,000 convertible preferred shares treated as a common stock equivalent. 
     For further information, refer to the consolidated financial statements
     and footnotes thereto included in the Registrant Company and Subsidiaries'
     annual report on form 10-KSB for the year ended September 30, 1997.

B.   PURCHASE OF SUBSIDIARIES

     Acquisition and Discontinuation (during the Quarter Ending December 31,
     1996) of Tier Environmental Services, Inc.

     On September 26, 1994 Gulfstar Industries, Inc. acquired all of the common
     stock of Tier Environmental Services, Inc. through an acquisition and
     redemption by Tier Environmental Services, Inc. of its common stock
     totaling approximately $2,982,400 in value, exclusive of acquisition
     costs.  Tier's principal business is to provide environmental remediation
     services in the State of Florida, at petroleum contaminated sites
     designated by the State of Florida as sites subject to authorized
     reimbursement under the Inland Protective Trust Fund.  The acquisition was
     accounted for as a purchase in accordance with Accounting Principles Board
     Opinion No. 16.  The agreement also called for the additional issuance of
     Gulfstar stock to Tier shareholders if the Company spun off a former
     subsidiary, which in turn the Company did on September 25, 1995.  As such,
     the Company was required to issue an additional 357,133 shares which were
     included in the accompanying balance sheet and valued at $142,855.  The
     excess (approximately $2,845,220) of the total acquisition cost over the
     recorded value of assets acquired was allocated to goodwill and is being
     amortized over 20 years.  The statement of operations includes Tier's
     results of operations for the three months ended December 31, 1995 since
     Tier was acquired on September 26, 1994, and during the current quarter,
     December 31, 1996, the company recorded the discontinuation of this
     subsidiary.

     Acquisition of Plant Technical Services, Inc.

     Plant Technical Services, Inc. is engaged in the professional engineering
     business, providing consulting, design, start-up support, operation,
     maintenance, contract personnel and construction management service to
     technical industries throughout the United States.

     On September 29, 1995 Gulfstar acquired all of the common stock of Plant
     Technical Services, Inc. (PTS) through an acquisition and redemption by




                     GULFSTAR INDUSTRIES, INC AND SUBSIDIARIES
                    (FORMERLY TIER ENVIRONMENTAL SERVICES, INC)
                     NOTES TO CONSOLIDATED FINANCIAL STATEMENT
               (For the three months ended December 31, 1997 and 1996)


     PTS of its stock with the issuance of 750,000 shares of Gulfstar common
     stock, 75,000 shares of Gulfstar $10.00 preferred stock and cash and notes
     of $1,220,000, exclusive of acquisition costs.  The acquisition was
     accounted for as a purchase in accordance with Accounting Principles Board
     Opinion No. 16.  The excess (approximately $1,278,000) of the total
     acquisition cost over the recorded value of assets acquired was allocated
     $500,000 to a proprietary database PTS developed and is expected to be
     amortized over seven years and $571,144 to goodwill which is being
     amortized over 20 years.  The accompanying balance sheet includes assets
     and liabilities of PTS at December 31, 1995.  The statement of operations
     for December 31, 1994 does not include PTS since PTS was acquired on
     September 29, 1995.

C.     RELATED PARTY TRANSACTIONS

  During the quarter ending December 31, 1995, $162,600 was charged to
  operations based upon the value ascribed to services of a director and
  administrative assistant performed during the period for which they were
  issued 242,500 shares.

  Included in amounts due to related parties at December 31, 1997 for
  expenses advanced by a company affiliated with a stockholder and director
  of the company is $796,765 including $81,822 of accrued interest at 12%
  and $9,000 advanced from a corporate stockholder.

  Note payable to stockholder (the former sole stockholder of PTS) includes
  $7,145 of a non-interest bearing instrument.  Additionally, this note has
  been reduced by amounts reserved for the anticipated loss on long term
  contract and $918,944 remained at September 31,1996 and December 31,1995
  which represented the balance on the acquisition note after such
  reduction, bearing interest at 8%; interest was accrued on this note offer
  the termination of the president and during the quater ended March 31,1997 
  this note was reversed aganist the abandonment of the PTS assets including
  Goodwill, Fixed Assets and Database and recorded as cancelation of
  indebtnessess income. 



<PAGE>
               MANAGEMENT'S DISCUSSION AND ANALYSIS
        OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS




The following is management's discussion and analysis of certain significant
factors which have affected the Company's financial position and operating
results during the periods included in the accompanying condensed financial
statements including the Company's Florida operating subsidiary, as well as
information relating to the plans of the Company's current management.

ABOUT THE SUBSIDIARIES THAT WERE DISCONTINUED DURING THE YEAR ENDED 
SEPTEMBER 30,1997

TIER Environmental Services, Inc.

The primary revenue of this environmental subsidiary came from its work in 
direct cooperation with the Florida legislature towards reimbursement for 
eligible sites for environmental clean-up. The Governor's executive order 
dated March 8, 1995 in reference to the Inland Protection Trust Fund (the 
"fund") referendum has caused some confusion during the year ended September 
30,1996.

To be specific, on March 29, 1995 Governor Chiles signed into law 95-2, Laws of
Florida (SB 1290).  This law revises Florida Statute 376 as it relates to
continued and future site rehabilitation tasks for eligible sites.  Chapter 95-2
does not specifically amend or change the reimbursement regulations set forth in
Chapter 62-773, F.A.C.  As of this date, the Legislature has not finalized the
fiscal year 1995-96 budget allocation and accompanying Legislative intent
regarding the IPTF (SB 2800; HB 2585).  Therefore, the new Legislation primarily
affects what eligible sites can continue and start site rehabilitation tasks;
does not revise the allowable markups and handling fees in the Reimbursement
Rule; and does not provide any more certainty as to the actual date when a
Reimbursement Claim will be paid.

It should also be noted that the Legislature, DEP and representatives from the
petroleum clean-up industry worked during the last Legislative session to 
pay off the entire outstanding backlog of reimbursement claims through a bond 
issue. Discussions and negotiations concerning a bonding of the entire 
backlog are continuing. One investment group interested in underwriting the 
bond issue will be making a proposal to DEP and the Governor's office in an 
attempt to bond out the backlog without any additional changes to statutory 
language.

During the quarter ended December 31, 1996, due to the change in the method the
state provided funding of this program, the company discontinued operations in
this subsidiary and recorded a loss on all remaining assets of this subsidiary.

Plant Technical Services

The primary revenue sources of this subsidiary comes from utilities in North
America with high demands at peak periods for engineering professionals.

During the fourth quarter 1995 the Company's former president spent a 
substantial portion of his time pursuing one acquisition in Mexico, the Hemyc 
Group (see form 10-K for the fiscal year ended September 30, 1995) which in 
turn, the Company has  since rescinded. The Company has also continued to 
attempt to resolve a joint venture with the Hemyc Group which was 
substantially delayed as for the fiscal year ended September 30, 1995. This 
subsidiary recorded a loss on the contract to the extent it has accrued costs 
associated with the joint venture and charged the same loss to amounts due to 
the former president shareholder. The remaining assets of this joint venture 
are recorded as idle equipment as of December 31, 1996. During the quarter 
ended March 31,1997 the Company recorded the discontinuation of the 




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



operations of this subsidary, recording the abandonment of Goodwill, 
Database, Fixed Assets, net of the calculation of the liabilities directly 
associated with these assets.  

RESULTS OF OPERATIONS

Three Months Ended December 31, 1997 vs. December 31, 1996

The results of operations for the three months ended December 31, 1996 includes
the PTS subsidiary with a net loss of $77,549 and the Tier Environmental
subsidiary reported its results as discontinued operations with a net loss of
$1,136,162. The loss from operations for the three months ended December 31,1997
represent administrative expenses of $8,381.

Liquidity and Working Capital

The Company's working capital continued to decline during the quarter ended
December 31, 1996. At September 30, 1996 the Company had a deficit of $1,959,320
as compared to a deficit of $2,098,034 at December 31, 1996. At December 31,1997
the company had a working capital deficit of $1,113,897.

As a result of the above, management believes the filing of the plan of
reorganization under Chapter 11 offers the best opportunity to restore
shareholder value to the Company's stockholders in light of the results of
operations and the financial condition of the Company.


Forward looking and other statements

Forward looking statements above and elsewhere in this report that suggest that
the company will increase revenues, become profitable and achieve significant
growth through acquisitions are subject to risks and uncertainties.
Forward-looking statements include the information concerning possible or 
assumed future results of operations and cash flows. These statements are 
identified by words such as "believes," "expects," "anticipates" or similar 
expressions. Such forward looking statements are based on the beliefs of 
Gulfstar Industries Inc. and its Board of Directors in which they attempt to 
analyze the Company's competitive position in its industry and the factors 
affecting its business. Stockholders should understand that each of the 
foregoing risk factors, in addition to those discussed elsewhere in this 
document and in the documents which are incorporated by reference herein, 
could affect the future results Gulfstar Industries Inc. and could cause 
those results to differ materially from those expressed in the forward-
looking statements contained or incorporated by reference herein. In addition 
there can be no assurance that Gulfstar Industries Inc. and its Board have 
correctly identified and assessed all of the factors affecting the Company's 
business.


<PAGE>
                   PART II - OTHER INFORMATION



Item 1.     Legal Proceedings

       On May 15, 1996 the Company terminated and initiated legal action
       against the former president and shareholder of its PTS subsidiary. 
       Both subsidiaries are defendants in various litigations with
       debtors, over contract obligations and performance clauses.

Item 2.     Changes in Securities

       NONE

Item 3.     Defaults Upon Senior Securities

       NONE

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

       NONE

Item 5.     Other Information

       NONE

Item 6.     Exhibits and Reports on Form 8-K

       NONE

















<PAGE>
                            SIGNATURES



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



                               GULFSTAR INDUSTRIES, INC.
                               FORMERLY TIER ENVIRONMENTAL SERVICES, INC.




Dated: December 31, 1998,           By:/s/William O'Callaghan                  
 and submitted with                    William O'Callaghan, Acting President
 re-assigned access codes
 February 19, 1999