UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                    FORM 10-Q

(Mark One)

[X]  Quarterly  report under Section 13 or 15(d) of the Securities  Exchange Act
     of 1934

         For the quarterly period ended March 31, 2010

[  ] Transition  report under Section 13 or 15(d) of the  Securities  Exchange
     act of 1934

         For the transition period from _______________ to _________________

                        Commission File Number: 001-32998

                     Energy Services of America Corporation
                     --------------------------------------
             (Exact Name of Registrant as Specified in its Charter)

         Delaware                                       20-4606266
-------------------------------          --------------------------------------
(State or Other Jurisdiction of          (I.R.S. Employer Identification Number)
Incorporation or Organization)

100 Industrial Lane, Huntington, West Virginia                     25702
----------------------------------------------                   ---------
(Address of Principal Executive Office)                          (Zip Code)

                                 (304) 399-6315
                                 ---------------
               (Registrant's Telephone Number including area code)

         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 twelve months (or for such shorter period that the
Registrant was required to file such reports) and (2) has been subject to such
requirements for the past 90 days. YES  X     NO
                                      ----       ----.
                Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such files). YES __ NO __.

         Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, or a non-accelerated filer. See definition of
"accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange
Act. (Check one):

Large Accelerated Filer [ ]   Accelerated Filer [ ]   Non-Accelerated Filer [ ]

Smaller Reporting Company   [X]

As of May14, 2010 there were issued and outstanding 12,092,307 shares of the
Registrant's Common Stock.

     Indicate  by check mark  whether  the  Registrant  is a shell  company  (as
defined in Rule 12b-2 of the Exchange Act).    YES         NO     X
                                                  ------      --------

Transitional Small Business Disclosure Format (check one)  Yes       No  X
                                                               ----     ---
<PAGE>



Part 1: Financial Information

Item 1. Financial Statements (Unaudited):

         Consolidated Balance Sheets                                          1

         Consolidated Statements of Income                                    2

         Consolidated   Statements of Cash Flows                              3

         Consolidated Statements of Changes in Stockholders' Equity           4

         Notes to Unaudited Consolidated Financial Statements                 5

Item 2.  Management's Discussion and Analysis of Financial Condition
          and Results of Operations                                           7

Item 3.  Quantitative and Qualitative Disclosures about Market Risk          17

Item 4T.  Controls and Procedures                                            17

Part II:    Other Information

Item 1A.  Risk Factors                                                       17

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds       17

Item 4..   Removed and Reserved                                              18

Item 6.   Exhibits                                                           18

Signatures                                                                   19



<PAGE>
                        ENERGY SERVICES OF AMERICA CORPORATION
                              CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>

                                                                                             March 31,          September 30,
Assets                                                                                         2010                 2009
                                                                                           -------------        ------------
                                                                                            (Unaudited)           (Audited)
Current Assets
<S>                                                                                          <C>                 <C>
     Cash and cash equivalents                                                               $ 1,179,477         $ 2,829,988
     Accounts receivable-trade                                                                 9,953,066          16,636,095
     Allowance for doubtful accounts                                                            (283,207)           (283,207)
     Retainages receivable                                                                     2,979,929           3,135,461
     Other receivables                                                                            89,111             141,530
     Costs and estimated earnings in excess of billings on uncompleted contracts              10,139,901           7,870,120
     Deferred tax asset                                                                        3,743,385           2,991,173
     Prepaid expenses and other                                                                4,641,664           2,320,679
                                                                                           -------------        ------------
        Total Current Assets                                                                  32,443,326          35,641,839
                                                                                           -------------        ------------
Property, plant and equipment, at cost                                                        36,500,846          35,350,004
     less accumulated depreciation                                                            (9,256,257)         (6,424,355)
                                                                                           -------------        ------------
                                                                                              27,244,589          28,925,649
Goodwill                                                                                      38,469,163          38,469,163
                                                                                           -------------        ------------
     Total Assets                                                                           $ 98,157,078       $ 103,036,651
                                                                                            ============       =============
Liabilities and Stockholders' Equity
Current Liabilities
     Current maturities of long-term debt                                                    $ 7,308,144         $ 7,254,624
     Lines of credit and short term borrowings                                                 8,422,730           7,885,579
     Accounts payable                                                                          5,044,309           5,375,962
     Accrued expenses and other current liabilities                                            4,332,804           5,717,730
     Billings in excess of costs and estimated earnings on uncompleted contracts                 409,762               4,501
                                                                                           -------------        ------------
        Total Current Liabilities                                                             25,517,749          26,238,396
                                                                                           -------------        ------------
     Long-term debt, less current maturities                                                   9,112,608          10,497,844
     Long-term debt, payable to shareholder                                                    5,100,000           5,600,000
     Deferred income taxes payable                                                             6,046,523           6,364,968
                                                                                           -------------        ------------
        Total Liabilities                                                                     45,776,880          48,701,208
                                                                                           -------------        ------------
Stockholders' equity

     Preferred stock, $.0001 par value
        Authorized 1,000,000 shares, none issued
     Common stock, $.0001 par value
        Authorized 50,000,000 shares
          Issued and outstanding 12,092,307
          shares                                                                                   1,209               1,209

     Additional paid in capital                                                               55,976,368          55,976,368
     Retained earnings                                                                        (3,597,379)         (1,642,134)
                                                                                           -------------        ------------
     Total Stockholders' equity                                                               52,380,198          54,335,443
                                                                                           -------------        ------------
     Total liabilities and stockholders' equity                                             $ 98,157,078       $ 103,036,651
                                                                                            ============       =============
</TABLE>
The Accompanying Notes are an Integral Part of These Financial Statements
                                       1
<page>

                     ENERGY SERVICES OF AMERICA CORPORATION
                        CONSOLIDATED STATEMENTS OF INCOME
                                    Unaudited

<TABLE>
<CAPTION>
                                                   Three Months Ended  Three Months Ended   Six Months Ended    Six Months Ended
                                                         March 31,         March 31,            March 31,           March 31,
                                                           2010              2009                 2010                2009
                                                       (Unaudited)       (Unaudited)          (Unaudited)         (Unaudited)
                                                   ------------------  ------------------   -----------------   ----------------
<S>                                                <C>                 <C>                  <C>                 <C>
Revenue                                            $    20,295,342     $   18,944,621       $   50,247,079      $   52,623,667
                                                                 -
Cost of revenues                                        21,468,697         21,202,424           46,654,708          56,477,545
                                                   ------------------  ------------------   -----------------   ----------------

     Gross profit (loss)                                (1,173,355)        (2,257,803)           3,592,371         (3,853,878)
Selling and administrative expenses                      2,766,444          1,952,884            6,183,835           3,667,634
                                                   ------------------  ------------------   -----------------   ----------------
     Income (loss) from operations                      (3,939,799)        (4,210,687)          (2,591,464)        (7,521,512)

Other income (expense)
     Interest income                                        11,099             13,537               27,177             49,810
     Other nonoperating income (expense)                   199,275           (406,900)             319,722           (245,085)
     Interest expense                                     (383,037)          (456,197)            (804,571)          (872,969)
     Gain (loss) on sale of equipment                       13,866             (1,533)              13,247             (9,097)
                                                   ------------------  ------------------   -----------------   ----------------
                                                          (158,797)          (851,093)            (444,425)        (1,077,341)
                                                   ------------------  ------------------   -----------------   ----------------
     Income (loss) before income taxes                  (4,098,596)        (5,061,780)          (3,035,889)        (8,598,853)
     Income tax expense (benefit)                       (1,505,791)        (2,193,738)          (1,080,644)        (3,536,302)
                                                   ------------------  ------------------   -----------------   ----------------
Net income (loss)                                  $    (2,592,805)    $   (2,868,042)      $   (1,955,245)     $  (5,062,551)
                                                   ==================  ==================   =================   ================
     Weighted average shares outstanding-basic          12,092,307         12,092,307           12,092,307         12,092,307

     Weighted average shares-diluted                    12,092,307         12,092,307           12,092,307         12,092,307

     Net income (loss) per share basic             $         (0.21)    $        (0.24)      $        (0.16)     $       (0.42)
                                                   ==================  ==================   =================   ================
     Net income (loss) per share diluted           $          (0.21)   $        (0.24)      $        (0.16)     $       (0.42)
                                                   ==================  ==================   =================   ================
</TABLE>


The Accompanying Notes are an Integral Part of These Financial Statements
                                       2

<page>


                        ENERGY SERVICES OF AMERICA CORPORATION
                         CONSOLIDATED STATEMENTS OF CASH FLOWS
                                       Unaudited
<TABLE>
<CAPTION>
                                                                                         Six Months Ended      Six Months Ended
                                                                                             March 31,             March 31,
Operating activities                                                                          2010                   2009
                                                                                         --------------        --------------
<S>                                                                                      <C>                   <C>
Net income (loss)                                                                        $   (1,955,245)       $   (5,062,551)
Adjustments to reconcile net income (loss) to net cash provided by (used in)
 operating activities:

     Depreciation expense                                                                      3,052,041            2,911,986
    (Gain) loss on sale/disposal of equipment                                                    (13,247)               9,097
    Provision for deferred taxes                                                              (1,070,657)                   -
    (Increase) decrease in contracts receivable                                                6,683,029           24,445,366
    (Increase) decrease in retainage receivable                                                  155,532            1,463,098
    (Increase) decrease in other receivables                                                      52,419                7,366
    (Increase) decrease in cost and estimated earnings in excess of billings
       on uncompleted contracts                                                               (2,269,781)           2,746,343
    (Increase) decrease in prepaid expenses                                                   (1,053,879)          (2,717,154)
    Increase (decrease) in accounts payable                                                     (331,653)          (6,702,143)
    Increase (decrease) in accrued expenses                                                   (1,272,734)          (3,204,943)
    Increase (decrease) in billings in excess of cost and estimated earnings
       on uncompleted contracts                                                                  405,261              (72,398)
    Increase (decrease) in income taxes payable                                                        -           (1,461,461)
    Increase (decrease) in deferred income taxes payable                                               -           (1,662,463)
                                                                                          --------------        -------------
Net cash provided by (used in) operating activities                                            2,381,086           10,700,143
                                                                                          --------------        -------------
Cash flows from investing activities:
Investment in property & equipment                                                            (1,152,614)            (984,596)
Proceeds from sales of property and equipment                                                    441,622                7,232
                                                                                          --------------        -------------
Net cash provided by (used in) investing activities                                             (710,992)            (977,364)
                                                                                          --------------        -------------
Cash flows from financing activities:
Repayment of loans from shareholders                                                            (500,000)            (100,000)
Borrowings on lines of credit and short term debt, net of (repayments)                            70,045           (3,246,209)
Proceeds from long term debt                                                                           -              834,019
Principal payments on long term debt                                                          (2,890,650)         (10,627,911)
                                                                                          --------------        -------------
Net cash provided by (used in) financing activities                                           (3,320,605)         (13,140,101)
                                                                                          --------------        -------------
Increase (decrease) in cash and cash equivalents                                              (1,650,511)          (3,417,322)
Cash beginning of period                                                                       2,829,988           13,811,661
                                                                                          --------------        -------------
Cash end of period                                                                        $    1,179,477        $  10,394,339
                                                                                          ==============        =============
Supplemental schedule of noncash investing and financing activities:
Insurance premiums financed                                                               $    1,267,160        $           -
                                                                                          ==============        =============
Purchases of property & equipment under financing agreements                              $      646,742        $      48,566
                                                                                          ==============        =============
Short term borrowing renewed as long term note                                            $      800,000        $           -
                                                                                          ==============        =============
Supplemental disclosures of cash flows information:
Cash paid during the year for:
Interest                                                                                  $      813,124        $     916,326
                                                                                          ==============        =============
Income taxes                                                                              $       78,700        $   1,500,000
                                                                                          ==============        =============
</TABLE>
The Accompanying Notes are an Integral Part of These Financial Statements
                                       3
<page>

                     ENERGY SERVICES OF AMERICA CORPORATION
           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                  For Six Months Ended March 31, 2010 and 2009
<TABLE>
<CAPTION>


                                                Common Stock                                                        Total
                                          ------------------------         Additional Paid      Retained         Stockholders'
                                            Shares         Amount           in Capital          Earnings            Equity
                                          ----------      --------          -----------        -----------        -----------

<S>                                      <C>              <C>              <C>                <C>                 <C>
Balance at September 30, 2008             12,092,307      $  1,209         $55,976,368         $ 4,279,640        $60,257,217

Net Income (Loss)                                  -             -                   -          (5,062,551)        (5,062,551)
                                          ----------      --------         -----------         -----------        -----------
Balance at March 31, 2009                 12,092,307      $  1,209         $55,976,368         $  (782,911)       $55,194,666
                                          ==========      ========         ===========         ===========        ===========

Balance at September 30, 2009             12,092,307      $  1,209         $55,976,368         $(1,642,134)       $54,335,443

Net Income (Loss)                                  -             -                   -          (1,955,245)        (1,955,245)
                                          ----------      --------         -----------         -----------        -----------
Balance at March 31, 2010                 12,092,307      $  1,209         $55,976,368         $(3,597,379)       $52,380,198
                                          ==========      ========         ===========         ===========        ===========
</TABLE>

The Accompanying Notes are an Integral Part of These Financial Statements
                                       4

<page>

                     ENERGY SERVICES OF AMERICA CORPORATION
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.   BUSINESS AND ORGANIZATION:

Energy  Services  of  America  Corporation,  formerly  known as Energy  Services
Acquisition  Corp., (the Company) was incorporated in Delaware on March 31, 2006
as a blank check company whose objective was to acquire an operating business or
businesses.  On September 6, 2006 the Company sold 8,600,000 units in the public
offering at a price of $6.00 per unit.  Each unit  consisted of one share of the
Company's  common stock and two common stock purchase  warrants for the purchase
of a share of common stock at $5.00.  The warrants could not be exercised  until
the later of the  completion of the business  acquisition or one year from issue
date.  The Company  operated as a blank check  company until August 15, 2008. On
that date the Company acquired S.T. Pipeline,  Inc. and C.J. Hughes Construction
Company,  Inc. with proceeds from the Company's  Initial Public Offering.  S. T.
Pipeline  and C. J Hughes  are  operated  as wholly  owned  subsidiaries  of the
Company.

         Interim Financial Statements

The accompanying  unaudited financial  statements have been prepared pursuant to
the rules and regulations of the Securities and Exchange  Commission ("SEC") and
should be read in conjunction with the Company's  audited  financial  statements
and footnotes  thereto for the years ended  September 30, 2009 and 2008 included
in the Company's  Form 10-K filed  December 23, 2009.  Certain  information  and
footnote  disclosures  normally included in annual financial statements prepared
in accordance with accounting principles generally accepted in the United States
of America have been omitted pursuant to interim  financial  reporting rules and
regulations of the SEC.  However,  the Company believes that the disclosures are
adequate  to make  the  information  presented  not  misleading.  The  financial
statements  reflect all adjustments  (consisting  primarily of normal  recurring
adjustments)  that  are,  in the  opinion  of  management  necessary  for a fair
presentation of the Company's financial position and results of operations.  The
operating  results  for the  periods  ended  March  31,  2010  and  2009 are not
necessarily indicative of the results to be expected for the full year.

         Principles of Consolidation

The consolidated financial statements of Energy Services include the accounts of
Energy Services and its wholly owned subsidiaries.  All significant intercompany
accounts and  transactions  have been  eliminated in  consolidation.  Unless the
context  requires  otherwise,  references  to  Energy  Services  include  Energy
Services and its consolidated subsidiaries.

         Reclassifications

Certain reclassifications have been made in prior years' financial statements to
conform to classifications used in the current year.

                                       5
<page>


2.  UNCOMPLETED CONTRACTS

Costs, estimated earnings, and billings on uncompleted contracts as of March 31,
2010 and September 30, 2009 are summarized as follows:

<TABLE>
<CAPTION>

                                                            March 31, 2010      September 30, 2009
                                                            --------------      ------------------

<S>                                                         <C>                   <C>
Costs incurred on contracts in progress                     $ 63,917,330          $ 37,568,730
Estimated earnings, net of estimated losses                    3,573,552             7,102,336
                                                            ------------          ------------
                                                              67,490,882            44,671,066

Less   Billings to date                                       57,760,743            36,805,447
                                                            ------------          ------------
                                                            $  9,730,139          $  7,865,619
                                                            ============          ============

Costs and estimated earnings in excess of billings on
     uncompleted contracts                                  $ 10,139,901           $  7,870,120
Less Billings in excess of costs and estimated earnings
     on uncompleted Contracts                                    409,762                  4,501
                                                            ------------           ------------
                                                            $  9,730,139           $  7,865,619
                                                            ============           ============
</TABLE>

Backlog at March 31, 2010 and September  30, 2009 was $136.0  million and $144.0
million respectively.

3.  FAIR VALUE MEASUREMENTS

The carrying amount for borrowings under the Company's revolving credit facility
approximates  fair value because of the variable market interest rate charged to
the  Company for these  borrowings.  The fair value of the  Company's  long term
fixed rate debt to unrelated  parties was estimated using a discounted cash flow
analysis  and a yield  rate  that was  estimated  based on the  borrowing  rates
currently  available  to the  Company  for bank  loans  with  similar  terms and
maturities,  which is a level 3 input.  It was not  practicable  to estimate the
fair value of notes payable to related parties,  The fair value of the aggregate
principal amount of the Company's  fixed-rate debt of $14.0 million at March 31,
2010 was $14.3 million.

 4.  EARNINGS PER SHARE

The amounts  used to compute the basic and  diluted  earnings  per share for the
three  months  ended March 31, 2010 and the six months  ended March 31, 2010 and
the three  months  ended March 31, 2009 and the six months  ended March 31, 2009
are illustrated below:

                                       6

<page>
<TABLE>
<CAPTION>

                                                         Three Months Ended              Six Months Ended
                                                              March 31                        March 31,
                                                        2010             2009           2010          2009
                                                        ----             ----           ----          ----

<S>                                                 <C>            <C>             <C>             <C>
Net  Income (Loss) from continuing operations       $ (2,592,805)  $ (2,868,042)   $ (1,955,245)   $(5,062,551)
available to common shareholders

Weighted average shares outstanding basic             12,092,307     12,092,307      12,092,307     12,092,307

Effect of dilutive warrants                                  -0-            -0-             -0-            -0-
                                                    ------------   ------------    ------------    -----------
Weighted average shares outstanding diluted           12,092,307     12,092,307      12,092,307     12,092,307

Net Income (Loss) per share-basic                   $      (0.21)  $      (0.24)   $      (0.16)    $    (0.42)
                                                    ============   ============    ============     ==========
Net Income (Loss) per share-diluted                 $      (0.21)  $      (0.24)   $      (0.16)    $    (0.42)
                                                    ============   ============    ============     ==========
</TABLE>

Warrants  to purchase  share of common  stock that have been  excluded  from the
determination of diluted  earnings per share because they are antidilutive  (the
exercise price is higher than the current  market price) is 20,276,923  warrants
for all periods presented.

5.  RECENT ACCOUNTING PRONOUNCEMENTS

In January  2010,  the FASB issued an Account  Standards  Update (ASU)  entitled
Improving  Disclosures  about Fair Value  Measurements.  The ASU amends the FASB
accounting  standards  regarding  disclosures  of fair  value  measurements  and
requires  new  disclosures  about  transfers in and out of Levels 1 and 2 of the
fair value hierarchy,  and also disclosures about activity in Level 3 fair value
measurements.  Portions  of this ASC  update on  disclosures  is  effective  for
reporting  periods  beginning  after  December 15, 2009, and the adoption by the
Company will not have an impact on financial results.


ITEM 2. Management's  Discussion and Analysis of Financial Condition and Results
of Operations

You should read the following  discussion of the financial condition and results
of  operations  of  Energy  Services  in  conjunction  with  the "  Consolidated
Financial  information " appearing in this section of this report as well as the
historical  financial  statements and related notes contained  elsewhere herein.
Among other things, those historical  consolidated  financial statements include
more detailed information  regarding the basis of presentation for the following
information.

Forward Looking Statements

Within Energy Services' financial statements and this discussion and analysis of
the financial condition and results of operations, there are

                                       7
<page>

included   statements   reflecting   assumptions,   expectations,   projections,
intentions or beliefs about future events that are intended as  "forward-looking
statements" under the Private Securities  Litigation Reform Act of 1995. You can
identify  these  statements  by the fact that  they do not  relate  strictly  to
historical or current facts.  They use words such as  "anticipate,"  "estimate,"
"project,"  "forecast," "may," "will," "should,"  "could," "expect,"  "believe,"
"intend" and other words of similar meaning.

These  forward-looking  statements are not guarantees of future  performance and
involve or rely on a number of risks,  uncertainties,  and assumptions  that are
difficult to predict or beyond Energy  Services'  control.  Energy  Services has
based its  forward-looking  statements on  management's  beliefs and assumptions
based on  information  available to  management at the time the  statements  are
made.  Actual outcomes and results may differ materially from what is expressed,
implied and  forecasted by  forward-looking  statements and any or all of Energy
Services'  forward-looking  statements  may  turn out to be  wrong.  They can be
affected  by  inaccurate   assumptions   and  by  known  or  unknown  risks  and
uncertainties.

All of the  forward-looking  statements,  whether written or oral, are expressly
qualified by these  cautionary  statements and any other  cautionary  statements
that  may  accompany  such  forward-looking  statements  or that  are  otherwise
included in this report.  In addition,  Energy  Services  does not undertake and
expressly  disclaims  any  obligation  to update or revise  any  forward-looking
statements to reflect events or  circumstances  after the date of this report or
otherwise.

Company Overview

Energy  Services was formed on March 31, 2006, to serve as a vehicle to effect a
merger,  capital stock  exchange,  asset  acquisition or other similar  business
combination with an operating  business.  It operated as a "Blank Check Company"
until  August  15,  2008 at which time it  completed  the  acquisitions  of S.T.
Pipeline,  Inc. and C.J. Hughes Construction  Company, Inc. The Company acquired
S.T.  Pipeline for $16.2 million in cash and $3.0 million in a promissory  note.
As of May 14, 2010 no payments have been made on the  promissory  note. The C.J.
Hughes purchase price totalled $34.0 million,  one half of which was in cash and
one half in Energy Services  common stock.  The  acquisitions  are accounted for
under the purchase  method and the financial  results of both  acquisitions  are
included in the results of Energy Services from the date of acquisition.

Since the  acquisitions,  Energy  Services  has been  engaged in one  segment of
operations which is providing contracting services for energy related companies.
Currently  Energy  Services  primarily  services  the  gas,  oil and  electrical
industries though it does some other incidental work. For the gas industry,  the
Company is  primarily  engaged in the  construction,  replacement  and repair of
natural gas pipelines and storage  facilities for utility  companies and private
natural gas companies.  Energy Services is involved in the  construction of both
interstate and intrastate pipelines, with an emphasis on the latter. For the oil
industry  the  Company  provides a variety of  services  relating  to  pipeline,
storage  facilities  and plant work. For the  electrical  industry,  the Company
provides  a  full  range  of  electrical  installations  and  repairs  including
substation  and  switchyard  services,  site  preparation,  packaged  buildings,
transformers  and other ancillary work with regards  thereto.  Energy  Services'
other services include liquid pipeline construction,  pump station construction,
production  facility  construction,  water  and  sewer  pipeline  installations,
various  maintenance and repair services and other services  related to pipeline
construction.  The  majority  of the  Company's  customers  are  located in West
Virginia,  Virginia,  Ohio, Kentucky and North Carolina. The Company builds, but
does not own,  natural gas  pipelines  for its  customers  that are part of both
interstate and intrastate  pipeline systems that move natural gas from producing
regions  to  consumption  regions as well as  building  and  replacing  gas line
services to individual customers of the various utility companies.

                                       8
<page>

The Company enters into various types of contracts,  including  competitive unit
price,  cost-plus  (or time and  materials  basis)  and fixed  price  (lump sum)
contracts.  The terms of the contracts will vary from job to job and customer to
customer  though most contracts are on the basis of either unit pricing in which
the Company  agrees to do the work for a price per unit of work performed or for
a fixed  amount for the  entire  project.  Most of the  Company's  projects  are
completed  within one year of the start of the work. On occasion,  the Company's
customers  will require the posting of  performance  and/or  payment  bonds upon
execution of the contract, depending upon the nature of the work performed.

The Company generally  recognizes revenue on unit price and cost-plus  contracts
when units are  completed  or services  are  performed.  Fixed  price  contracts
usually  result in recording  revenues as work on the contract  progresses  on a
percentage  of  completion  basis.  Under  this  accounting  method,  revenue is
recognized based on the percentage of total costs incurred to date in proportion
to total estimated  costs to complete the contract.  Many contracts also include
retainage  provisions under which a percentage of the contract price is withheld
until the project is complete and has been accepted by the customer.

Second Quarter Overview

The following is an overview for the three months and six months ended March 31,
2010:

                                      Three Months Ended        Six Months Ended
                                        March 31, 2010           March 31, 2010
                                        (In Millions)             (In Millions)

  Sales                                  $   20.3                  $   50.2
  Cost of Revenues                           21.5                      46.6
                                         --------                  --------
  Gross Profit (Loss)                        (1.2)                      3.6
  Selling & Adm. Expense                      2.7                       6.2
  Other Income (Expense)                     (0.2)                     (0.4)
                                         --------                  --------
  Net Income (Loss) before income taxes      (4.1)                     (3.0)
  Income Taxes  (Benefit)                    (1.5)                     (1.1)
                                         --------                  --------
  Net Income (Loss)                      $   (2.6)                 $   (1.9)
                                         ========                  ========

The second  quarter  for the  Company is  typically  a very slow  period for our
business  line.  The weather  plays a major role in our  operations  during this
period of time. The weather in the Mid Atlantic states this year was extreme and
caused major work stoppages which resulted in larger than expected losses.

While the  inclement  weather  caused a delay in  projects  starting,  we do not
expect any contracts to have a loss at  completion,  or for the profit margin to
be lower than bid.

The Company's cash and cash equivalents  decreased by $5.3 million, with working
capital  decreasing  by $3.1 million  during the quarter  ending March 31, 2010.
Accounts  receivable and retainage  receivable  decreased by $2.8 million during
the  quarter  ending  March  31,  2010 and  long-term  debt  increased  by $22.0
thousand.

                                       9
<page>
Quarter Ending and Year To Date March 31, 2010 and 2009 Comparison

Revenues.  Revenues  increased by $1.4 million  (7.1%) to $20.3  million for the
three months ended March 31, 2010 and decreased by $2.4 million  (4.5%) to $50.2
million for the six months ended March 31, 2010  compared to the same periods in
2009. The increase in revenues for the three months ended March 31, 2010 was due
to the company  wrapping up some projects  during that period.  The decreases in
revenues for the six month period  resulted  from the  completion of some larger
projects during the period in 2009 which did not reoccur in 2010. Severe weather
conditions also limited our ability to generate revenue during this quarter.

Cost of Revenues. The Cost of Revenues increased by $0.3 million (1.3%) to $21.5
million for the three months ended March 31, 2010 and  decreased by $9.8 million
(17.4%) to $46.7 million for the six months ended March 31, 2010 compared to the
same periods  ending in 2009. The increase in cost is related to the increase in
revenue for the three months ended March 31,  2010.  The large  decrease in cost
for the current six month period was a result of large losses  during the period
in 2009 which did not reoccur in fiscal 2010.

Gross Profit  (Loss).  Gross loss  decreased by $1.1 million  (48%) to a loss of
$1.2 million for the three months ended March 31, 2010  compared to a gross loss
of $2.3  million for the prior year.  The gross loss for the three  months ended
was driven primarily by severe winter weather conditions in January and February
that  impacted  the  entire  Mid  Atlantic  states.  Weather  conditions  in our
operating  region were severe  during this  quarter  which forced many pieces of
equipment,  both  owned and  rented,  to be under  utilized  or to sit idle.  In
preparation  for the upcoming work in the third and fourth  quarter of this year
the Company  spent $1.1 million over and above what was allocated to the jobs to
ensure  the  equipment  was in good shape when it would go to the field in April
and May of 2010, which is included in cost of revenues. Productivity and thereby
profits on the few jobs that attempted to work during this period was reduced by
the weather conditions as well. Gross Profit was $3.6 million for the six months
ended  March 31,  2010  compared  to a gross loss of $3.9  million  for the same
period ending in 2009. This return to profitability  during the six month period
reflects  the fact that the  Company had two  particular  projects at one of the
operating  subsidiaries  which lost $3.2 million for the quarter ended  December
31,  2008,  resulting  in a gross loss for the six months  ended March 31, 2009.
There was a  combination  of events  that  resulted in the losses on these jobs.
First,  the customer had several  other  projects that were supposed to start in
the quarter  that they  decided to delay.  The pricing had been  established  on
these projects under the assumption that all of the projects would be completed.
When that did not occur many costs that would have been spread over all the jobs
then had to be absorbed into these two existing  jobs.  In addition,  there were
unplanned  work  stoppages  initiated by the customer for the  Thanksgiving  and
Christmas  holidays  which  resulted  in added  payroll  costs of  approximately
$450,000.  These jobs have been  completed  and we believe  that the  results of
these jobs are not indicative of future performance.

Based on the  Company's  current  backlog it is  anticipated  that the third and
fourth fiscal  quarters will show marked  improvement in both revenues and gross
margin.

Selling  and  administrative  expenses.   Selling  and  administrative  expenses
increased by $0.8 million  (41.7%) for the three months ended March 31, 2010 and
increased  by $2.5  million  (68.6%)  for the six months  ended  March 31,  2010
compared to the same period ending in 2009.  These  increases were primarily due
to additional  administrative  expenses, such as accounting,  professional fees,
taxes and insurance costs to support our informational and regulatory compliance
needs.

Income  (Loss) from  Operations.  Loss from  operations  decreased  $0.3 million
(6.4%) to a loss of $3.9 million for the three months ended March 31, 2010 and

                                       10
<page>

decreased  $4.9  million  (65.5%) to a loss of $2.6  million  for the six months
ended March 31,  2010  compared to the same  periods  ending in 2009.  This is a
function of the previous categories.

Other  Income  (Expense).  Other income and expense  decreased by $0.69  million
(81.3%) for the three months ended March 31, 2010 and decreased by $0.63 million
(58.7%)  for the six months  ended  March 31,  2010  compared to the same period
ending in 2009.  These  decreases  were  primarily  due to the fact the  Company
incurred  penalties  and  interest  expenses  in 2009  that did not occur in the
current year.

Net Income  (Loss).  Net (Loss)  decreased by $0.28 million (9.6%) to a net $2.6
million  loss for the three  months  ended March 31, 2010 and  decreased by $3.1
million  (61.4%) to a net loss of $1.96  million for the six month  period ended
March 31, 2010  compared to the same  periods in the prior  year.  The  decrease
occurred due to the various  changes as previously  discussed,  principally  the
increase in selling and administrative expenses, partially offset by an increase
in gross profit.

Comparison of Financial Condition

The Company had total assets at March 31, 2010 of $98.2 million, a decrease from
$103.0  million at September  30, 2009.  Some of the primary  components  of the
balance  sheet were accounts  receivable  which totaled $9.95 million a decrease
from $16.6  million at September  30, 2009.  This  reduction  resulted  from the
reduced  revenue  earned during the six months ending March 31, 2010 compared to
the same period in the previous  year as well as  collections  of prior  quarter
receivables. Other major categories of assets at March 31, 2010 included cash of
$1.2 million and fixed assets less  accumulated  depreciation  of $27.2 million.
Liabilities  totaled $45.8  million,  a decrease from $48.7 million at September
30, 2009. This decrease was primarily due to reductions in accounts  payable and
debt which were paid down with the collections on accounts receivable.

Stockholders'  Equity.  Stockholders'  equity  decreased  from $54.3  million at
September 30, 2009 to $52.4 million at March 31, 2010.  This decrease was due to
the net loss of $1.9 million for the six months  ended March 31,  2010.  We have
not paid any dividends on our common stock,  nor have we  repurchased  shares of
our common stock.

Liquidity and Capital Resources

Cash Requirements

We anticipate that our cash and cash equivalents on hand at March 31, 2010 which
totaled $1.2 million  along with our credit  facilities  available to us and our
anticipated  future cash flows from operations  will provide  sufficient cash to
meet our operating needs.  However,  with the anticipated future energy shortage
nationwide  and the increased  demand for our  services,  we could be faced with
needing  significant  additional  working capital.  Also, current general credit
tightening  resulting from the general  banking and other  economic  contraction
that  occurred in the second half of 2008,  has  impaired  the  availability  of
credit  facilities  for future  operational  needs.  A prolonged  restriction in
borrowing capacity may limit the growth of the Company.

Sources and uses of Cash

The net loss for the six  months  ended  March 31,  2010 was $2.0  million.  The
depreciation expense was $3.1 million. Contracts, other receivables and prepaids
provided $3.6 million while accounts payable and accrued expenses used $1.6

                                       11

<page>
million. Net cash provided by operating  activities was $2.4 million.  Financing
activities consumed $3.3 million. The lines of credit and short-term  borrowings
increased by $70 thousand and long term debt was reduced by $2.9 million  during
this period.

As of March 31,  2010,  we had $1.2  million  in cash,  working  capital of $6.9
million and long term debt, net of current maturities of $14.2 million.

Long Term Debt and Loan Covenants

The Company entered into a fifteen million dollar  ($15,000,000)  Line of Credit
agreement  with a regional bank on August 20, 2009.  Interest will accrue on the
line of credit at an annual rate based on "Wall Street  Journal" Prime Rate (the
Index)  with a floor of six percent  (6.0%).  Cash  available  under the line is
calculated  based on a percentage  of the  Company's  accounts  receivable  with
certain exclusions along with seventy five percent of certain unencumbered fixed
assets.  Major items excluded from calculation are seventy-five percent (75%) of
receivables   from  bonded  jobs,   seventy-five   percent  (75%)  of  retainage
receivables, and items greater than one hundred twenty (120) days old.

At March 31, 2010 the Company had access to $12.6  million on the Line of Credit
based on its borrowing base certificate, of which it had drawn $ 7.5 million. As
receivables increase during the next few months access to the entire $15 million
Line of Credit should  occur.  The access to the  additional  cash from the Line
along with anticipated collections of receivables should provide ample operating
capital.

If additional  working capital isn't available the company's  growth and ability
to undertake  larger projects will be reduced  significantly  which could have a
significant  negative  impact on the  Company's  operating  margins  and overall
financial strength.

     The following are the major covenants of the line:

Current  Ratio must be not less than 1.1 in the first year. As of March 31, 2010
our current ratio was 1.27.

Debt to tangible  net worth must not exceed 3.5 during the first year.  Our debt
to tangible net worth at March 31, 2010 was 3.29.

Capital Expenditures  (CAPEX) must not exceed $7.5 million.  CAPEX from the loan
date was approximately $1.2 million.

Dividends shall not exceed 50% of taxable income without prior bank approval. No
dividends have been declared.

The Company was in  compliance  with all loan  covenants as of the period ending
March 31, 2010.

Off-Balance Sheet transactions

Due to the nature of our industry, we often enter into certain off-balance sheet
arrangements  in the  ordinary  course  of  business  that  result  in risks not
directly reflected in our balance sheets.  Though for the most part not material
in nature, some of these are:

                                       12
<page>

Leases

Our work often requires us to lease various facilities,  equipment and vehicles.
These  leases  usually are short term in nature,  one year or less,  though when
warranted we may enter into longer term leases. By leasing  equipment,  vehicles
and  facilities,  we are able to reduce  our  capital  outlay  requirements  for
equipment  vehicles and  facilities  that we may only need for short  periods of
time.   The   Company   currently   rents  two   parcels  of  real  estate  from
stockholders-directors  of the company under  long-term  lease  agreements.  The
first  agreement calls for monthly rental payments of $5,000 and extends through
January 1, 2012. The second agreement is for the Company's  headquarter  offices
and is rented from a  corporation  in which two of the  Company's  directors are
shareholders.  The second agreement began November 1, 2008 and runs through 2011
with options to renew.  This second  agreement  provides for a monthly rental of
$7,500.

Letters of Credit

Certain  customers or vendors may require  letters of credit to secure  payments
that  the  vendors   are  making  on  our  behalf  or  to  secure   payments  to
subcontractors,  vendors,  etc. on various customer projects. At March 31, 2010,
the  Company  was  contingently  liable on an  irrevocable  Letter of Credit for
$950,000 to  guarantee  payments  of  insurance  premiums  to the group  captive
insurance company through which one of the wholly owned subsidiaries obtains its
auto, workers compensation and general liability insurance.


Performance Bonds

Some customers,  particularly  new ones, or governmental  agencies require us to
post bid bonds,  performance  bonds and payment bonds.  These bonds are obtained
through  insurance  carriers and  guarantee to the customer that we will perform
under the terms of a contract and that we will pay  subcontractors  and vendors.
If we fail to perform under a contract or to pay subcontractors and vendors, the
customer may demand that the insurer make payments or provide services under the
bond.  We must  reimburse the insurer for any expenses or outlays it is required
to make. Depending upon the size and conditions of a particular contract, we may
be  required  to post  letters  of  credit or other  collateral  in favor of the
insurer.  Posting of these  letters  or other  collateral  reduce our  borrowing
capabilities.  Historically,  the  Company  has never  had a payment  made by an
insurer  under these  circumstances  and does not  anticipate  any claims in the
foreseeable  future.  At March 31, 2010,  we had $161.9  million in  performance
bonds outstanding.

Concentration of Credit Risk

In the  ordinary  course of business  the company  grants  credit  under  normal
payment terms,  generally without  collateral,  to our customers,  which include
natural gas and oil companies,  general contractors,  and various commercial and
industrial  customers  located  within the United States.  Consequently,  we are
subject to potential  credit risk related to business and economic  factors that
would affect these companies.  However, we generally have certain statutory lien
rights with respect to services  provided.  Under certain  circumstances such as
foreclosure,  we may take  title  to the  underlying  assets  in lieu of cash in
settlement of  receivables.  The Company had three  customers  that exceeded ten
percent of revenues for the six months  ended March 31, 2010.  At March 31, 2010
those  customers  accounted  for 38.3% of revenue.  One  customer  exceeded  ten
percent of accounts receivable with 12.5%.

                                       13

<page>

Litigation

The Company is a party from time to time to various  lawsuits,  claims and other
legal  proceedings that arise in the ordinary course of business.  These actions
typically seek, among other things,  compensation for alleged personally injury,
breach of contract and/or property damages, punitive damages, civil penalties or
other  losses,  or injunctive or  declaratory  relief.  With respect to all such
lawsuits, claims, and proceedings, we record reserves when it is probable that a
liability has been incurred and the amount of loss can be reasonably  estimated.
We do not believe that any of these  proceedings,  separately  or in  aggregate,
would be expected to have a material  adverse effect on our financial  position,
results of operations or cash flows.

Related Party Transactions

Total long-term debt at March 31, 2010 was $21.5 million, of which, $8.1 million
was  payable to certain  directors,  officers  and former  owners of an acquired
company.  The related  party debt  consist of a $5.1  million note due in August
2011,  a $3.0  million  note  payable in three  payments of $1.0 million each on
August 15, 2009, 2010 and 2011.

Inflation

Due to relatively low levels of inflation  during the six months ended March 31,
2009 and 2010, inflation did not have a significant effect on our results.

Recent Accounting Pronouncements

In January  2010,  the FASB issued an Account  Standards  Update (ASU)  entitled
Improving  Disclosures  about Fair Value  Measurements.  The ASU amends the FASB
accounting  standards  regarding  disclosures  of fair  value  measurements  and
requires  new  disclosures  about  transfers in and out of Levels 1 and 2 of the
fair value hierarchy,  and also disclosures about activity in Level 3 fair value
measurements.  Portions  of this ASC  update on  disclosures  is  effective  for
reporting  periods  beginning  after  December 15, 2009, and the adoption by the
Company will not have an impact on financial results.

Critical Accounting Policies

The discussion and analysis of the Company's  financial condition and results of
operations are based on our consolidated  financial statements,  which have been
prepared in accordance  with  accounting  principles  generally  accepted in the
United  States.  The  preparation  of these  consolidated  financial  statements
requires us to make estimates and assumptions  that affect the reported  amounts
of assets and  liabilities,  disclosures  of contingent  assets and  liabilities
known to exist at the date of the consolidated financial statements and reported
amounts of revenues and expenses  during the reporting  period.  We evaluate our
estimates on an ongoing  basis,  based on historical  experience  and on various
other  assumptions that are believed to be reasonable  under the  circumstances.
There can be no  assurance  that  actual  results  will not  differ  from  those
estimates. Management believes the following accounting policies affect our more
significant  judgments and estimates used in the preparation of our consolidated
financial statements.

                                       14
<page>
Revenue  Recognition.  Revenues from fixed price contracts are recognized  using
the  percentage-of-completion  method,  measured  by  the  percentage  of  costs
incurred to date to total  estimated  costs for each contract.  These  contracts
provide for a fixed amount of revenues for the entire  project.  Such  contracts
provide that the customer  accept  completion of progress to date and compensate
us the services rendered,  measured in terms of units installed,  hours expended
or some other measure of progress.  Contract costs include all direct  material,
labor and  subcontract  costs and  those  indirect  costs  related  to  contract
performance,  such as indirect labor, tools and expendables.  The cost estimates
are  based  on the  professional  knowledge  and  experience  of  the  Company's
engineers,  project  managers  and  financial  professionals.   Changes  in  job
performance,  job conditions, and others all affect the total estimated costs at
completion.  The effects of these changes are  recognized in the period in which
they occur.  Provisions for the total estimated losses on uncompleted  contracts
are made in the period in which such losses are  determined.  The current  asset
"Costs and estimated  earnings in excess of billings on  uncompleted  contracts"
represents  revenues  recognized  in excess of amounts  billed  for fixed  price
contracts.  The current  liability  "Billings  in excess of costs and  estimated
earnings on  uncompleted  contracts"  represents  billings in excess of revenues
recognized for fixed price contracts.

Revenue on all costs plus and time and material contracts are recognized when
services are performed or when units are completed.

Goodwill.  The Company has  selected  July 1 as the date of the annual  goodwill
impairment  evaluation,  which is the first day of our  fourth  fiscal  quarter.
Goodwill was assigned to the  operating  units at the time of  acquisition.  The
reporting  units to which  goodwill was  assigned  are CJ Hughes  ("CJ") and its
subsidiary  Contractors  Rental  Corp  ("CRC") as one unit,  Nitro  Electric  (a
subsidiary  of CJ  Hughes-"Nitro")  and to ST  Pipeline.  The  assignment  to CJ
consolidated  and ST Pipeline was based on the purchase  price of each  company.
Both  purchases  were  supported by fairness  opinions.  The  allocation  of the
goodwill arising from the purchase of CJ was allocated  between CJ/CRC and Nitro
based on an  internally  prepared  analysis of the relative  fair values of each
unit.

CJ Hughes and its  subsidiary  CRC are considered one reporting unit because CRC
almost exclusively provides labor for CJ as a subcontractor.  There have been no
material   operational  changes  to  any  reporting  units  since  the  date  of
acquisition.  Although the Company uses a centralized  management approach,  the
reporting  units have continued to perform  similar  services to those performed
prior to the acquisition.  There have been no sales of equipment,  other than in
the ordinary course of business,  or dispositions of lines of business by any of
the operating units.

The Company's  annual  impairment  analysis at July 1, 2009  indicated a control
value for the  Company  and for each of the  reporting  units in excess of their
respective book values. Accordingly, no loss from impairment was charged against
earnings.  Management  considered  the fact that fair  value  estimates  contain
assumptions,  and note that a ten  percent  (10%)  decline in fair value of each
reporting unit would not change the results of our assessment.

The Company's  valuation was based on management's  projected  operating results
for the next fiscal year.  The fair value of the reporting  units was determined
using a weighted  combination of a market  approach to value  utilizing  pricing
multiples of guideline  publicly  traded  companies,  a market approach to value
utilizing  pricing  multiples of guideline merger and acquisition  transactions,
and an income approach to value utilizing a discounted cash flow model.

                                       15

<page>
The Company's market capitalization, including the market cap of both the common
stock and the outstanding warrants, continues to be at a level below book value,
and has been since shortly after the acquisition of the operating  companies and
the associated  redemption of common shares. At March 31, 2010 the market cap of
the Company was at 99% of book value.  The Company  believes  that the low stock
price is  attributable  to larger than usual  discounts for minority  shares and
lack of  marketability  due to the low trading  volume and the  complex  capital
structure that includes  warrants and a unit purchase option.  While stock price
is generally  viewed as one  indication of fair value (before  application  of a
control  premium),  for the reasons  stated the  Company  believes it should not
place too much  reliance on stock price alone.  For the July 1, 2009  impairment
testing  management  obtained a  valuation  of the  Company  that  indicated  no
impairment.  The Company's  stock price since that date has been  generally flat
and trading has been sporadic. However, the stock price has generally been above
the level that it was at during the period  immediately before and after July 1,
2009 including at the quarterly  reporting dates,  which management  believes is
indicative of no further deterioration in fair value of the Company.

Management  will  continue  to  assess  at each  reporting  date  the need for a
goodwill impairment test under the Accounting Standards Codification if an event
occurs or  circumstances  change that would more likely than not reduce the fair
value of a  reporting  unit  below its  carrying  amount.  Management  will also
continue to monitor the stock price of the Company,  including  trading  volume,
for any trends  since the last  annual  impairment  test that  might  indicate a
decline in fair value of the Company.

Income Taxes.  The Company has recorded a deferred tax asset of $2.7 million for
the tax benefits  attributable  to deductible  temporary  differences  and carry
forwards.  The majority of the  Company's  deferred  tax asset  relates to a net
operating loss of $5.7 million incurred in the prior year. The recorded deferred
tax asset must be reduced by a valuation allowance if it is more likely than not
that  some  portion  or all of the  deferred  tax  asset  will not be  realized.
Management has determined that the prior year operating loss was attributable in
large part to losses on two large contracts,  and does not expect such losses to
repeat. Current operating profits and projected profits based on current backlog
with historical  gross margins,  will be more than sufficient to produce taxable
income in an amount  equal to or  greater  than the  operating  loss  carryover.
Additional  work  continues  to be  negotiated  and bid at  levels  that  should
maintain  backlog at or near the current  level.  It is also noted that prior to
acquisition  the  operating  companies  had  a  history  of  operating  profits.
Management also considered the deferred tax liability of $6.4 million associated
with the book to tax differences in the basis of fixed assets resulting from the
purchase  accounting  adjustments at the time of the  acquisitions.  This timing
difference will reverse over the next seven years. Management has concluded that
no valuation allowance against the deferred tax asset should be recorded at this
time.

Management's conclusion that the realization of the net operating loss carryover
is more likely than not was based on all available evidence at the balance sheet
date,  and will be  reassessed  at each  reporting  date.  Failure  to  maintain
historical  revenues  and gross  margins may call into  question  the  Company's
ability to realize  the  deferred  tax asset and a  valuation  allowance  may be
established at that time.

Outlook

The following statements are based on current expectations. These statements are
forward looking, and actual results may differ materially.

                                       16

<page>
We  expect  to see  spending  from  our  customers  on  their  transmission  and
distribution  systems  increasing  over the next few years as demand  returns to
normalized  levels. The Company's backlog at March 31, 2010 was $136 million and
while adding  additional  business projects appears likely, no assurances can be
given that the Company  will be  successful  in bidding on projects  that become
available.

If the increased  demand moves to expected levels in fiscal 2010 and beyond,  we
believe  that the Company  will  continue to have  opportunities  to continue to
improve both revenue volumes and the margins thereon.

If growth continues, we will be required to make additional capital expenditures
for equipment to keep up with that need.  Currently,  it is anticipated  that in
fiscal 2010, the Company's capital expenditures will be between $2.0 million and
$4.0  million.  However,  if the  customer  demands  grow,  this number could be
significantly  higher.  Significantly  higher capital  expenditure  requirements
could impair our cash flows and require additional  borrowings.  Please see Long
Term Debt and Loan Covenants on page 12.

ITEM 3.  Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market  risks,  primarily  related to increases in fuel prices
and adverse changes in interest rates, as discussed below.

Fuel Prices.  Our exposure to market risk for changes in fuel prices  relates to
our consumption of fuel and the price we have to pay for it. As prices rise, our
total fuel cost rises.  We do not feel that this risk is significant  due to the
fact  that we  would be able to pass a  portion  of  those  increases  on to our
customers.

Interest  Rate.  Our exposure to market rate risk for changes in interest  rates
relates to our borrowings from banks.  Some of our loans have variable  interest
rates. Accordingly,  as rates rise, our interest cost would rise. We do not feel
that this risk is significant.

ITEM 4T. Controls and Procedures

Under the supervision and with the  participation  of our management,  including
our Chief  Executive  Officer and Chief  Financial  Officer,  we  evaluated  the
effectiveness  of the  design  and  operation  of our  disclosure  controls  and
procedures  (as defined in Rule 13a-15(e)  under the Securities  Exchange Act of
1934) as of the end of the  period  covered  by this  report.  Based  upon  that
evaluation,  the Chief Executive  Officer and Chief Financial  Officer concluded
that,  as of the end of the  period  covered  by  this  report,  our  disclosure
controls and procedures were effective to ensure that information required to be
disclosed in the reports that Energy  Services of America  Corporation  files or
submits under the Securities  Exchange Act of 1934, is (1) recorded,  processed,
summarized  and reported,  within the time periods  specified in the SEC's rules
and forms, and (2) accumulated and communicated to our management  including our
Chief  Executive  Officer,  as appropriate to allow timely  decisions  regarding
required disclosure.

There has been no change in Energy  Services of America  Corporation's  internal
control over financial reporting during Energy Services of America Corporation's
second  quarter  of  fiscal  year  2010  that  has  materially  affected,  or is
reasonably likely to materially affect, Energy Services of America Corporation's
internal control over financial reporting.

                                       17
<page>

                                     PART II

                                OTHER INFORMATION



ITEM 1A. Risk Factors

Please see the information  disclosed in the "Risk Factors"  section of our Form
10-K as filed with the Securities and Exchange  Commission on December 23, 2009,
and which is incorporated herein by reference.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds.

          (a) There have been no  unregistered  sales of  securities  during the
          past two years.

          (b) None.

          (c) Energy  Services of America  Corporation  did not  repurchase  any
          shares of its common stock during the relevant period.

ITEM 4.  Removed and Reserved

ITEM 6. Exhibits

     31.1         Certification of Chief Executive Officer pursuant to Rule
                  13a-14(a) of the Securities Exchange Act of 1934, as amended,
                  as adopted pursuant to Section 302 of the Sarbanes-Oxley Act
                  of 2002
     31.2         Certification of Chief Financial Officer pursuant to Rule
                  13a-14(a) of the Securities Exchange Act of 1934, as amended,
                  as adopted pursuant to Section 302 of the Sarbanes-Oxley Act
                  of 2002
     32           Certification of Chief Executive Officer and Chief Financial
                  Officer pursuant to 18 U.S.C. Section 1350, as adopted
                  pursuant to Section 906 of the Sarbanes-Oxley Act of 2002




                                       18


<page>


                                   SIGNATURES


     Pursuant to the  requirements of Section 13 of the Securities  Exchange Act
of 1934,  the  Company has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.




                                          ENERGY SERVICES OF AMERICA CORPORATION




Date: May 14, 2010                        By:  /s/ Edsel R. Burns
      ------------                             ---------------------------------
                                                   Edsel R. Burns
                                                   Chief Executive Officer


Date: May 14, 2010                          By: / s/ Larry A. Blount
     -------------                              -----------------------------
                                                     Larry A. Blount
                                                     Chief Financial Officer
                                       19




<PAGE>
                                                                    Exhibit 31.1

                    Certification of Chief Executive Officer
            Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

         I, Edsel R. Burns, certify that:

1.   I have reviewed this  Quarterly  Report on Form 10-Q of Energy  Services of
     America Corporation;

2.   Based on my knowledge, this report does not contain any untrue statement of
     a material  fact or omit to state a  material  fact  necessary  to make the
     statements made, in light of the circumstances  under which such statements
     were made,  not  misleading  with  respect  to the  period  covered by this
     report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in  this  report,  fairly  present  in all  material
     respects the financial  condition,  results of operations and cash flows of
     the registrant as of, and for, the periods presented in this report;

4.   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules  13a-15(e) and 15d-15(e))  and internal  control over
     financial  reporting  (as  defined  in  Exchange  Act Rules  13a-15(f)  and
     15d-15(f) for the registrant and have:


     a)   designed  such  disclosure  controls  and  procedures  or caused  such
          disclosure   controls  and   procedures  to  be  designed   under  our
          supervision,  to ensure  that  material  information  relating  to the
          registrant,  including its consolidated subsidiaries, is made known to
          us by others within those entities,  particularly during the period in
          which this report is being prepared;

     b)   designed such internal  control over  financial  reporting,  or caused
          such internal  control over  financial  reporting to be designed under
          our  supervision,   to  provide  reasonable  assurance  regarding  the
          reliability  of financial  reporting and the  preparation of financial
          statements for external purposes in accordance with generally accepted
          accounting principals;

     c)   evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures and presented in this report our conclusions  about the
          effectiveness of the disclosure controls and procedures, as of the end
          of the period covered by this report based on such evaluation; and

     d)   disclosed  in this  report  any  change in the  registrant's  internal
          control over financial reporting that occurred during the registrant's
          most recent fiscal quarter (the registrant's  fourth fiscal quarter in
          the case of an annual  report)  that has  materially  affected,  or is
          reasonably  likely to materially  affect,  the  registrant's  internal
          control over financial reporting; and

5.   The registrant's other certifying  officers and I have disclosed,  based on
     our most recent evaluation of internal control over financial reporting, to
     the registrant's  auditors and the audit committee of registrant's board of
     directors (or persons performing the equivalent functions):


     a)   all significant  deficiencies and material weaknesses in the design or
          operation  of internal  control  over  financial  reporting  which are
          reasonably  likely to  adversely  affect the  registrant's  ability to
          record, process, summarize and report financial information; and

     b)   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          control over financial reporting.




Date: May 14, 2010                          /s/ Edsel R. Burns
      ------------                  --------------------------------------------
                                                Edsel R. Burns
                                                Chief Executive Officer


<PAGE>

                                                                    Exhibit 31.2

                    Certification of Chief Financial Officer
            Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

         I, Larry A. Blount, certify that:


1.   I have reviewed this  Quarterly  Report on Form 10-Q of Energy  Services of
     America Corporation;

2.   Based on my knowledge, this report does not contain any untrue statement of
     a material  fact or omit to state a  material  fact  necessary  to make the
     statements made, in light of the circumstances  under which such statements
     were made,  not  misleading  with  respect  to the  period  covered by this
     report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in  this  report,  fairly  present  in all  material
     respects the financial  condition,  results of operations and cash flows of
     the registrant as of, and for, the periods presented in this report;

4.   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules  13a-15(e) and 15d-15(e))  and internal  control over
     financial  reporting  (as  defined  in  Exchange  Act Rules  13a-15(f)  and
     15d-15(f) for the registrant and have:


     a)   designed  such  disclosure  controls  and  procedures  or caused  such
          disclosure   controls  and   procedures  to  be  designed   under  our
          supervision,  to ensure  that  material  information  relating  to the
          registrant,  including its consolidated subsidiaries, is made known to
          us by others within those entities,  particularly during the period in
          which this report is being prepared;

     b)   designed such internal  control over  financial  reporting,  or caused
          such internal  control over  financial  reporting to be designed under
          our  supervision,   to  provide  reasonable  assurance  regarding  the
          reliability  of financial  reporting and the  preparation of financial
          statements for external purposes in accordance with generally accepted
          accounting principals;

     c)   evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures and presented in this report our conclusions  about the
          effectiveness of the disclosure controls and procedures, as of the end
          of the period covered by this report based on such evaluation; and

     d)   disclosed  in this  report  any  change in the  registrant's  internal
          control over financial reporting that occurred during the registrant's
          most recent fiscal quarter (the registrant's  fourth fiscal quarter in
          the case of an annual  report)  that has  materially  affected,  or is
          reasonably  likely to materially  affect,  the  registrant's  internal
          control over financial reporting; and

5.   The registrant's other certifying  officers and I have disclosed,  based on
     our most recent evaluation of internal control over financial reporting, to
     the registrant's  auditors and the audit committee of registrant's board of
     directors (or persons performing the equivalent functions):


     a)   all significant  deficiencies and material weaknesses in the design or
          operation  of internal  control  over  financial  reporting  which are
          reasonably  likely to  adversely  affect the  registrant's  ability to
          record, process, summarize and report financial information; and

     b)   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          control over financial reporting.



Date: May 14, 2010                            /s/  Larry A. Blount
      ------------                          ------------------------------------
                                                   Larry A. Blount
                                                   Chief Financial Officer


<page>


                                                                      Exhibit 32

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


Edsel R. Burns Chief  Executive  Officer and Larry A.  Blount,  Chief  Financial
Officer of Energy Services of America  Corporation  (the "Company") each certify
in their  capacity  as  officers  of the  Company  that they have  reviewed  the
Quarterly  report of the  Company on Form 10-Q for the  quarter  ended March 31,
2010 and that to the best of their knowledge:

     1.   the report fully complies with the  requirements  of Sections 13(a) of
          the Securities Exchange Act of 1934; and

     2.   the  information  contained  in the  report  fairly  presents,  in all
          material respects,  the financial  condition and results of operations
          of the Company.



Date:  May 14, 2010                 /s/  Edsel R. Burns
       ------------        --------------------------------------------
                                         Edsel R. Burns
                                         Chief Executive Officer


Date:  May 14, 2010                 /s/  Larry A. Blount
       ------------        --------------------------------------------
                                         Larry A. Blount
                                         Chief Financial Officer