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 March 31, 1998Commission 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:   X            No:     


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 March 31, 1998 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 - March 31, 1998                   1  

          Consolidated Statements of Operations - Six Months
            Ended March 31, 1998 and Six Months Ended
            March 31, 1997                                              2  

          Consolidated Statement of Changes in Stockholders Equity
            for the Year and Six Months Ended March 31, 1998          3-4 

          Statement of Cash Flows - Six Months Ended March 31, 1998 
          and Six Months Ended March 31, 1997                         5-6 

          Notes to Financial Statements                               7-8 

          Management's Discussion and Analysis of financial
          conditions and results of operations                       9-10


PART II   OTHER INFORMATION

          Item 1.   Legal Proceedings                                11 

          Item 2.   Changes in Securities                            11 

          Item 3.   Defaults Upon Senior Securities                  11 

          Item 4.   Submission of Matters to a Vote of
                    Security Holders                                 11 

          Item 5.   Other Information                                11 

          Item 6.   Exhibits on Reports on Form 8-K                  11 

Signature Page                                                       12 



<PAGE>
                      GULFSTAR INDUSTRIES, INC.
              (FORMERLY TIER ENVIRONMENTAL SERVICES, INC.)
                           AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEET
                           MARCH 31, 1998






      Assets

Current Assets
  Cash                                                        $       32
 
     Total Current Assets                                             32

      Total Assets                                            $       32




      Liabilities and Stockholders' Equity

Current Liabilities
 Unsecured creditors of subsidiary                             $ 239,885
 Class III Creditors                                              53,014
 Class IV Creditors                                              812,649
 Accrued administrative expenses                                  16,764

      Total Current Liabilities                                1,122,312

Stockholders' Equity
  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          (5,271,369)

      Total Stockholders' Deficit                             (1,122,280)

      Total Liabilities and Stockholders' Deficit             $       32











See notes to the consolidated financial statements.
                                                                1



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





                                                           For the
                                                       Six Months Ended
                                                           March 31,
                                                         1998         1997   

Contract Revenues Earned                            $       -   $  967,260
Other Income                                                -            -

  Total Revenue                                             -      967,260

Cost of contract revenues earned                            -      823,028

Gross Profit                                                -      144,232

Operating Expenses
  Selling and administrative expenses                 (16,764)     174,383
  Depreciation and amortization                             -       28,896
  Interest expense                                          -       32,386
  Provision for bad debts                                   -        2,000

Loss from operations                                  (16,764)     (93,433)

Loss from discontinued operations of Florida
  environmental subsidiary including $1,101,929      
  of 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)

Loss from discontinued operations of Texas
  engineering consulting subsidiary including
  $492,590 of impairment of goodwill, $113,359
  of bad debts, $1,151,092 abandonment of data
  base and fixed assets, $28,997 depreciation
  and amortization, $1,556,981 cancellation of
  indebtedness income and $144,576 loss from
  operations during the phase out period                    -     (231,277)

Income (loss) before taxes                            (16,764)  (1,460,872)

Benefit from (provision for) income taxes                   -            -

      Net (Loss)                                    $ (16,764) $(1,460,872)

Income (loss) per share                           $     (.002)  $    (.159)

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



See notes to the consolidated financial statements.
                                                                2

<PAGE>
                              GULFSTAR INDUSTRIES, INC.  
              (FORMERLY TIER ENVIRONMENTAL SERVICES, INC. AND SUBSIDIARIES)
        CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE
                PERIOD FROM OCTOBER 1, 1997 THROUGH MARCH 31, 1998
                                




                                    Common Stock        Preferred Stock
                                  Shares     Amount     Shares     Amount  

Balance, October 1, 1997       9,509,123 $  304,292     75,000  $ 750,000

Recision of contingent common
 stock from prior acquisition   (357,133)   (11,428)         -          -
 (Unaudited)

Recision of common stock for
 services (Unaudited)            (45,625)    (1,460)         -          -

Net loss for year ended
  September 30, 1997
  (Unaudited)                          -          -          -          -

Balance, September 30, 1997
  (Unaudited)                  9,106,365    291,404     75,000    750,000

Retained deficit prior to re-
 organization charged to
 additional paid in capital            -          -          -          -

Net income for the six months
  ended March 31, 1998                 -          -          -          -

Balance, March 31, 1998        9,106,365  $ 291,404 $   75,000  $ 750,000























See notes to the consolidated financial statements.
                                                                3



<PAGE>


                                        Retained
                                        Deficit
                                       Subsequent
                                        to Quasi-
                        Quasi-        Reorganization
      Additional     Reorganization        and
       Paid In         (10-1-93)      Reorganization
       Capital         Adjustment      (of 7-22-97 )         Total  

     $3,314,934     $  (59,033)        $(3,793,733)     $  516,460


       (131,426)             -                   -        (142,854)



        (16,790)             -                   -         (18,250)



              -              -          (1,460,872)     (1,460,872)


      3,166,718        (59,033)         (5,254,605)     (1,105,516)



              -              -             (16,794)        (16,794)


                                                                

     $3,166,718       $ 59,033         $(5,271,369)    $(1,122,280)






















See notes to the consolidated financial statements.
                                                                4



<PAGE>
                       GULFSTAR INDUSTRIES, INC.  
      FORMERLY TIER ENVIRONMENTAL SERVICES, INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF CASH FLOWS




                                                           For the
                                                        Six Months Ended
                                                            March 31,
                                                        1998         1997   
                                                                  (Unaudited)
OPERATING ACTIVITIES
  Cash Flows From (Used In) Operating Activities:
    Net loss                                       $  (16,764)    $  (93,433)
    Adjustments to reconcile net loss to net
      cash used in operating activities:
    Depreciation and amortization                           -         28,896
    Expense reduction via recision of common stock          -        (18,250)
    Provision for bad debts                                 -          2,000
    Decrease (increase) in accounts receivable              -        (60,716)
    Increase in accounts payable and accrued
      expenses                                         16,667        160,090
    Increase in accrued interest                            -         32,386
         Net cash from (used in) operating activities     (97)        50,973

DISCONTINUED OPERATING ACTIVITIES:
  Cash Flows (Used In) Discontinued Operating
   Activities:
   Net loss                                                 -     (1,367,439)
   Adjustments to reconcile net loss to net cash
    used in operating activities:
    Depreciation and amortization                           -         28,997
    Provision for bad debts                                 -        152,305
    Loss on assets disposed                                 -      1,167,495
    Impairment losses                                       -      1,594,519
    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                                      -     (1,037,529)
      Net cash (used in) discontinued operating
        activities                                          -        (52,501)

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

Cash and cash equivalents, beginning of year              129          1,657

Cash and cash equivalents, end of year              $      32     $      129






See notes to the consolidated financial statements.
                                                                5


<PAGE>
                     GULFSTAR INDUSTRIES, INC.
               FORMERLY TIER ENVIRONMENTAL SERVICES, INC.
               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                  (For six months ended March 31, 1998)



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 six month period ended March 31, 1998 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 
  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 six months ended
  March 31, 1996, and for the six months ended March 31, 1997, the Tier
  operating revenues were included in discontinued operations through the
  quarter ending December 31, 1996, which was when the company recorded the
  discontinuation of this subsidiary.









                                                                6



<PAGE>
                     GULFSTAR INDUSTRIES, INC.
               FORMERLY TIER ENVIRONMENTAL SERVICES, INC.
               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                  (For six months ended March 31, 1998)



B.     PURCHASE OF SUBSIDIARIES - (Continued)

  Acquisition and Discontinuation (during the quarter ending March 31, 1997)
  of Plant Technical Services, Inc.

  Plant Technical Services, Inc. was 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
  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 was expected to be
  amortized over seven years and $571,144 to goodwill which was being
  amortized over 20 years. The statement of operations for the six months
  ended March 31, 1996 includes the results of operations for PTS.  In
  fiscal 1997, the statement of operations includes PTS' results of
  operations for the first quarter ended December 31, 1996, and discontinued
  operations for the second quarter ended March 31, 1997.

C.     RELATED PARTY TRANSACTIONS

  During the six months ending March 31, 1996, $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 March 31, 1997 for expenses
  advanced by a company affiliated with a stockholder and director of the
  company is $724,943 plus accrued interest through March 31, 1997 of
  $87,705 at 12%, and $9,000 advanced from a corporate stockholder, which is
  non-interest bearing.

  Note payable to stockholder (the former sole stockholder of PTS) had
  included $7,145 of a non-interest bearing instrument.  Additionally, this
  note had been reduced by amounts reserved for the anticipated loss on long
  term contract and $918,944 remained  which represents the balance on the
  acquisition note after such reduction, bearing interest at 8%.  $36,760 of
  interest was accrued on this note and is included in interest expense and
  accrued expenses for the six month period ending March 31, 1996, and the
  balance including accrued interest of $72,760 was recorded as cancellation
  of indebtedness income with the discontinuation of this subsidiary in the
  quarter ending March 31, 1997




                                                                7


<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 WHICH 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.

During the quarter ending December 31, 1996, the Company discontinued operations
in 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 complete or 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, as well as the other assets of this subsidiary, including fixed 
assets, database, and goodwill were recorded as losses, net of the 
liabilities directly associated with the purchase of the subsidiary and the
idle equipment, and included is discontinued operations.







                                                                8

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





RESULTS OF OPERATIONS

Six Months Ended March 31, 1998 vs. March 31, 1997

The results of operations for the six months ended March 31, 1997 includes
operations of the PTS subsidiary through December and the parent company through
March 31, 1997 for a loss of $93,433 on revenues of $967,260 and the Tier
environmental subsidiary reported a loss from discontinued operations of
$1,136,162 including an operating loss of $213,961 during the phase out period
effective for the quarter ended December 31, 1996, and the PTS reported a loss
of $231,277 from the discontinuation of its operations including an operating
loss of $144,576 during the phase out period, during the quarter ended March 31,
1997.  The result of operations for the six months ended March 31,1998 consisted
of a loss on administrative expenses totally $ 16,764.


Liquidity and Working Capital

The Company's working capital continued to remain negative during the quarter
ended March 31, 1997.  Despite the discontinuation of both subsidiaries and the
reversal of liabilities associated with the operating assets of these
subsidiaries. At September 30, 1996 the Company had a deficit of $1,959,320 as
compared to a deficit of $1,105,516 at March 31, 1997.  On September 30, 1997 
the company had a deficit of $1,105,516 as compared to a deficit of $1,122,280.

As a result of the above management believes that filing of the plan of
reorganization under Chapter 1, 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.

INFLATION

The rate of inflation has had little impact on the Company's results of
operations and is not expected to have significant impact on continuing
operations.

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.

                                                                9

<PAGE>
                   PART II - OTHER INFORMATION



Item 1.     Legal Proceedings

       On May 15, 1995 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

































                                                               11

<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











































                                                               12