SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                   FORM 10-QSB

(Mark One)

/x/ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For the quarterly period ended October 31, 2005
                                       or

/ / TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from________ to_________

                       Commission File Number 33-19048-NY

                         MURRAY UNITED DEVELOPMENT CORP.
                        --------------------------------
        (Exact Name of Small Business Issuer as specified in its charter)

             Delaware                                 22-2856171
-------------------------------              ----------------------------------
(State or other jurisdiction of             (I.R.S. employer identification no.)
incorporation or organization)

   P.O. Box 224, Landing, New Jersey                    07850
----------------------------------------              ----------
(Address of principal executive offices)              (Zip Code)

Registrant's telephone number, including area code     (908)  979-3025

                                    No Change
            ---------------------------------------------------------
           (Former Name, Former Address, if changed since last report)

Indicate by check mark whether the Issuer:

(1) Has filed all reports required to be filed by Section 13 or 15(d) of the
Exchange Act during the past 12 months (or for such shorter period that the
registrant was required to file such reports):
Yes    x          No
   --------         ---------
(2) Has been subject to such filing requirements for the past 90 days.

Yes    x          No
   --------         ---------

84,253,434 shares of the registrant's Common Stock ,$.0001 per share, were
outstanding as of December 12, 2005.



<PAGE>



                      MURRAY UNITED DEVELOPMENT CORPORATION

                                TABLE OF CONTENTS
                                   FORM 10-QSB



                          PART I FINANCIAL INFORMATION


Item Number                                                                 Page

Item 1.             Financial Statements

                          Balance Sheets                                       2

                          Statements of Operations                             4

                          Statements of Stockholders' Deficiency               5

                          Statements of Cash Flow                              6

                          Notes to Financial Statements                        7

Item 2.             Management's Discussion and Analysis
                    Or Plan of Operation                                       9

Item 3.             Controls and Procedures                                   15



                            PART II OTHER INFORMATION

Items 1- 6.                                                                   15

Signatures                                                                    16







                                       1
<PAGE>


                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                      MURRAY UNITED DEVELOPMENT CORPORATION
                      (A Company in the Development Stage)
                                 BALANCE SHEETS
                                   (UNAUDITED)
                                     ASSETS
<TABLE>
<CAPTION>

                                            October 31, 2005             July 31, 2005

Current assets


<S>                                          <C>                         <C>
Cash & cash equivalents                      $          2,460            $           170
Loan Receivable                                         2,000                      2,000

Total current assets                         $          4,460            $         2,170


Furniture & equipment, at
cost,net of accumulated
depreciation                                          31,255                      33,338
                                             ---------------             ---------------

Total Assets                                 $        35,715             $        35,508

</TABLE>





                 The accompanying notes are an integral part of
                           the financial statements.





                                       2
<PAGE>





                      MURRAY UNITED DEVELOPMENT CORPORATION
                      (A Company in the Development Stage)
                                 BALANCE SHEETS
                                   (UNAUDITED)
                    LIABILITIES AND STOCKHOLDERS' DEFICIENCY

<TABLE>
<CAPTION>

                                                                           October 31, 2005            July 31, 2005

<S>                                                                     <C>                          <C>
Current liabilities:
     Accounts payable and Accrued Expenses                              $               26,160       $           13,820

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

    Total current liabilities                                                           26,160                   13,820

Other liabilities:
     Accrued Interest Payable                                                           39,180                  143,024
     Notes payable-other stockholder                                                 2,111,278                1,944,754
     Accrued Compensation                                                              148,128                  148,128
                                                                        -----------------------      -------------------

    Total other liabilities                                                          2,298,586                2,235,906
                                                                        -----------------------      -------------------

    Total liabilities                                                                2,324,746                2,249,726
                                                                        -----------------------      -------------------


Stockholders' deficiency:

Common Stock, par value $.0001:
     Authorized 200,000,000 shares;
     issued and outstanding
84,253,434 shares and 84,153,434                                                         8,426                    8,416
Additional paid-in capital                                                           2,573,918                2,572,028
Deficit accumulated in the development stage                                        (4,871,375)              (4,794,662)
                                                                        -----------------------      -------------------

     Total stockholders' deficiency                                                 (2,289,031)              (2,214,218)
                                                                        -----------------------      -------------------

     Total Liabilities and Stockholders' Deficiency                     $               35,715       $         $ 35,508
                                                                        =======================      ===================


</TABLE>

                 The accompanying notes are an integral part of
                           the financial statements.







                                       3
<PAGE>





                      MURRAY UNITED DEVELOPMENT CORPORATION
                      (A Company in the development Stage)

                            STATEMENTS OF OPERATIONS
              FOR THE THREE MONTHS ENDED OCTOBER 31, 2005 AND 2004


                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                                                         CUMULATIVE
                                                                                           AMOUNTS
                                                                                            FROM
                                               2005                 2004                  INCEPTION

<S>                                     <C>                   <C>                      <C>
Income
Interest income                         $             -                    -           $           66,465
                                       -----------------     ----------------         --------------------

Total Income                                          -                    -                       66,465

Expenses
Research and Development costs                        -                    -                      876,771
Licensing fees-stockholder and
affiliate                                             -                    -                       57,260
General and administrative
expenses                                         37,533               26,168                    3,024,473
Interest expense-stockholder and
affiliate                                        39,180               35,266                      979,336
                                       -----------------     ----------------         --------------------
Total Expenses                                  (76,713)             (61,434)                  (4,937,840)
                                       -----------------     ----------------         --------------------

Net loss                                $       (76,713)      $      (61,434)          $       (4,871,375)
                                       -----------------     ----------------         --------------------

Net loss per common share               $          (nil)      $         (nil)                      (0.058)

Weighted average number of
common shares out                            84,199,086           80,153,434                   84,253,434
                                       -----------------     ----------------         --------------------
</TABLE>


                 The accompanying notes are an integral part of
                           the financial statements.





                                       4
<PAGE>





                      MURRAY UNITED DEVELOPMENT CORPORATION
                      (A COMPANY IN THE DEVELOPMENT STAGE)
                 STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIENCY)
           THREE MONTHS ENDED OCTOBER 31 , 2005 AND CUMULATIVE AMOUNTS
                   FROM OCTOBER 13, 1987 (DATE 0F INCEPTION)
                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                                                                                 Deficit
                                           Common                                              Acuumulated in
                                           Stock                            Additional              the
                                         Number of                           Paid in          Developmental
                                           Shares            Amounts         Capital              Stage                  Total

<S>                                      <C>                 <C>           <C>                   <C>                  <C>
Balance July 31, 2005                    84,153,434          $ 8,416       $ 2,572,028           $ (4,794,662)        $(2,214,218)

Issuance of common stock
for services                                100,000             $ 10           $ 1,890                                    $ 1,900

Net loss for the three months
ended10/31/2005                                                                                       (76,713)            (76,713)
                                        -----------        ---------      ------------          -------------        ------------

                                         84,253,434          $ 8,426       $ 2,573,918           $ (4,871,375)        $(2,289,031)


</TABLE>


                 The accompanying notes are an integral part of
                           the financial statements.





                                       5
<PAGE>






                      MURRAY UNITED DEVELOPMENT CORPORATION
                      (A Company in the Development Stage)
                            STATEMENTS OF CASH FLOWS
                  THREE MONTHS ENDED OCTOBER 31, 2005 AND 2004
                    CUMULATIVE AMOUNTS FROM OCTOBER 13, 1987
                               (DATE OF INCEPTION)
                                   (UNAUDTIED)

<TABLE>
<CAPTION>

                                                                                                        Cumulative
                                                                      2005             2004           from Inception
                                                                  ----------------------------------
<S>                                                                  <C>              <C>              <C>
Operating activities:
Net Loss                                                             $ (76,713)       $ (61,434)       $ (4,871,374)
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciaiton and Amortization                                            2,083            2,083             229,241
Expenses paid through issuance of common stock by:
    Company                                                              1,900                -             543,185
    Principal Stockholder                                                    -                -             220,900
Changes in operating assets and liabilities:
     Loan Receivable                                                                                         (2,000)
    Accounts Payable  Accrued Expenses                                 (91,504)         (78,678)            213,448
                                                                  --------------------------------------------------
Net cash used in operating activities                                 (164,234)        (138,029)         (3,666,600)
                                                                  --------------------------------------------------

Investing Activities:
    Purchase of furniture and  equipment                                     -                -            (260,497)
                                                                  --------------------------------------------------
Net cash provided by (used in) investing activities                          -                -            (260,497)
                                                                  --------------------------------------------------

Financing activities:
    Note payable to stock holder: Proceeds                           $ 166,524        $ 138,199          $2,245,445
    Principal payments                                                       -                -            (134,167)
    Proceeds from the issuance of common stock (net)                         -                -           1,818,279
                                                                  --------------------------------------------------
Net cash provided by financing activities                              166,524          138,199           3,929,557
                                                                  --------------------------------------------------
Net increase (decrease) in cash and cash equivalents                     2,290              170               2,460
Cash and cash equivalents, beginning of period                             170            1,033                   -
                                                                  --------------------------------------------------
Cash and cash equivalents, end of period                             $   2,460        $   1,203        $      2,460
                                                                  --------------------------------------------------
 Supplemental disclosure of cash flow data:
  Interest Paid                                                      $       -        $       -        $     32,420
                                                                  --------------------------------------------------

</TABLE>







                                       6
<PAGE>





                      MURRAY UNITED DEVELOPMENT CORPORATION
                          NOTES TO FINANCIAL STATEMENTS
                            October 31, 2005 and 2004


NOTE 1 - ORGANIZATION AND BUSINESS AND BASIS OF PRESENTATION

The accompanying unaudited condensed financial statements have been prepared in
accordance with Generally Accepted Accounting Principles for interim financial
information and pursuant to the Regulation S-B of the Rules and Regulations of
the Securities and Exchanged Commission. Certain financial information and
footnote disclosure normally included in annual financial statements prepared in
accordance with Generally Accepted Accounting Principles have been condensed or
omitted. Accordingly, the accompanying financial statements should be read in
conjunction with the Company's annual financial statements and notes thereto
included in its Form 10-KSB for the year ended July 31, 2005.

The Company was incorporated on October 13, 1987 under the laws of the State of
Delaware. It was organized to further develop and exploit commercially certain
technology for a rotary internal combustion engine that would utilize
alternative fuels. The patent and related rights to the use of the technology
have been assigned to the Company.

The Company has been in the development stage since inception. Activities of the
Company have been limited to the acquisition of funds from the sale of its
common stock; the acquisition of the licensing rights for and, subsequently,
title to, the engine technology; research and development related to the
development of an initial fuel-driven prototype of the engine that was
successfully tested on a preliminary basis in January 1990; additional testing
and development of the engine prototype to obtain performance data for the
demonstration of the engine to potential licensees; research relating to the
ability of a proprietary cleaning solution, which will be licensed to the
Company, to remove air pollutants from coal burning flue gas and certain air
pollutants and contaminants from building air, as well as other industrial uses;
and research and development relating to production of hydrogen for use in
hydrogen fuel cells. The proprietary cleaning solution, for which we have been
granted trademark protection under the name Klenz-Safe, is owned by a
corporation whose sole shareholders are Mr. Anthony Campo and Mr. Dwight Foster,
the Chairman of the Board and Chief Executive Officer of the Company,
respectively. The Company intends to continue research and development on the
Klenz-Safe and hydrogen technologies during the ensuing 12-month period. Funding
will be provided through loans from the Chairman of the Company, at his sole
discretion. The Company does not intend to continue its research and development
efforts with respect to its rotary engine during the next 12-month period unless
it is able to raise the funds necessary to conduct such research, of which there
can be no assurances.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. However, as of October 31, 2005, the
Company had not been able to commercially utilize its hydrogen or engine
technology or its cleaning solution to generate revenues or cash flows from
operating activities. As a result, it has suffered recurring losses from
operations from inception that have generated the net stockholders' deficiency
of $2,289,031 as of October 31 , 2005 and have also generated significant
working capital deficiencies from time to time.



                                       7
<PAGE>



 Management does not expect the Company to generate any significant revenues or
positive operating cash flows during the twelve-month period subsequent to
October 31, 2005. The limited amount of liquid resources available at October
31, 2005, and the inability to generate operating revenues and cash flows raise
substantial doubts about the Company's ability to continue as a going concern.

The Company plans to continue research and development activities on at least a
limited basis through the twelve-month period subsequent to October 31, 2005.
However, management believes that, the net liquid assets available at October
31, 2005 will not be sufficient to enable the Company to meet its obligations
and to continue as a going concern during the ensuing twelve-month period even
on this limited basis without limiting research and development and other
operating activities more severely unless it obtains additional debt or equity
financing and/or government sponsored research.

Management believes that continuation of the Company as a going concern during
the twelve-month period subsequent to October 31 , 2005 and thereafter will
depend upon the Company's ability to obtain sufficient additional working
capital to fund research and development activities on its Klenz-Safe and
hydrogen technologies and the general and administrative expenses to be incurred
during the remaining development period. Potential sources of such working
capital include: the private or public sale of common stock, the exercise of a
substantial portion of the 15,398,000 outstanding Class B warrants prior to
their proposed expiration on March 11, 2007, 14,898,000 of which are exercisable
at $0.15 per share and 500,000 of which are exercisable at $.225 per share; and
borrowing additional amounts from related parties or other sources. However,
there can be no assurances that such financing will be available. The
accompanying financial statements do not include any adjustments that might
result from the uncertainties related to the ability of the Company to continue
as a going concern.

NOTE 2 - SUMMARY OF OTHER SIGNIFICANT ACCOUNTING POLICIES:

Cash and Cash Equivalents
         For purposes of the statement of cash flows, the Company considers
         highly liquid temporary cash investments with an original maturity of
         three months or less to be cash equivalents.

Depreciation:
         Depreciation of furniture and equipment is provided over the estimated
         useful lives of the related assets using declining balance methods.

Research and development:
         Costs and expenses related to research and development are expensed as
incurred.

Net loss per common share:
         Net loss per common share was computed on the basis of the weighted
         average number of shares of common stock outstanding during each
         period. The effect of assuming the





                                       8
<PAGE>






         exercise of outstanding warrants was antidilutive and, accordingly, not
included in the computation of net loss per share.

NOTE 3 - RELATED PARTY TRANSACTIONS:

         Information as to agreements with, and notes payable to, related
         parties is set forth in the financial statements in the July 31, 2005
         Form 10-KSB

NOTE 4 - STOCKHOLDER'S EQUITY:

         Information as to stockholders' equity is set forth in the financial
statements in the July 31, 2005 Form 10-KSB.


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF
OPERATION.

The following discussion and analysis provides information which we believe is
relevant to an assessment and understanding of our results of operations and
financial condition. This discussion should be read in conjunction with the
financial statements and notes thereto appearing elsewhere herein.

Statements in this Form 10-QSB that are not statements of historical or current
fact constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve known and unknown risks, uncertainties and other unknown factors that
could cause our actual results to be materially different from the historical
results or from any future results expressed or implied by such forward-looking
statements. In addition to statements that explicitly describe such risks and
uncertainties, readers are urged to consider statements labeled with the terms
"believes," "belief," "intends," "anticipates" or "plans" to be uncertain and
forward-looking. The forward-looking statements contained herein are also
subject generally to other risks and uncertainties that are described from time
to time in our reports filed with the Securities and Exchange Commission.


RESULTS OF OPERATIONS

We have not derived any revenues from the license or sale of our technology and
have incurred cumulative losses from our inception on October 13, 1987 through
October 31, 2005 of $4,871,375. Our revenues from our inception on October 13,
1987 through October 31, 2005 aggregating $66,465 were derived from interest
earned. Interest income was zero in the periods ended October 31, 2005 and
October 31, 2004 as a result of a lack of funds available for investment.

The cumulative loss from inception includes research and development costs of
$876,771. There were no research and development costs in the periods ended
October 31, 2005 and




                                       9
<PAGE>






October 31, 2004. We have had to reduce substantially our research and
development activities due to liquidity problems.

Our cumulative loss from inception includes general and administrative expenses
of $3,024,473. General and administrative expenses increased to $37,533 in the
period ending October 31, 2005 from $26,160 in the period ending October
31,2004, or a 43.3% increase. Increases in general and administrative expenses
can be attributed to increased professional fees.

Our cumulative loss from inception also includes past licensing fees, of which
there were none during the period, and cumulatively $57,260 since inception. The
elimination of licensing fees is the result of the legal settlement reached in
fiscal 1994.

The cumulative loss from inception also includes interest expense of $979,336 on
promissory notes payable to our principal stockholder and chairman. Interest
expense increased to $39,180 in the period ending October 31, 2005 from $35,266
in the quarter ending October 31, 2004, primarily as a result of increased loans
to us by our chairman and principal stockholder.

Our net loss of $76,713 in the period ended October 31, 2005 decreased by
$15,279, or 24.8%, over the net loss of $61,434 in October 31, 2004. Increases
in general and administrative expense caused the overall increase.


LIQUIDITY AND CAPITAL RESOURCES

At October 31, 2005, we had cash and short-term investments totaling
$2,460(compared to liquid assets of $170 at July 31, 2005), a working capital
increase of $2,290 (compared with a working capital decrease of $863 at July 31,
2005), and a total stockholders' deficiency of $2,289,031 (compared to a
deficiency of $2,214,218 at July 31, 2005). The stockholders' deficiency
increased due to the net loss of $76,713 incurred in the three months ended
October 31, 2005.

At October 31, 2005, we had current liabilities in excess of current assets of
$21,690. We have not been able to commercially utilize our technologies to
generate any revenue through that date, and as a result, we have suffered
recurring losses from operations from inception that have generated the net
capital deficiencies at October 31, 2005 as well as July 31, 2005 and
significant working capital deficiencies from time to time. We do not expect to
generate any significant revenues or positive operating cash flows during the
twelve-month period subsequent to October 31, 2005. Cash flows used by operating
activities were $164,234 and $138,029 in the periods ended October 31, 2005 and
October 31 2004, respectively. The limited amount of liquid resources available
at October 31, 2005, and our inability to generate operating revenues and cash
flows, raise substantial doubts about our ability to continue as a going
concern.




                                       10
<PAGE>




                                PLAN OF OPERATION


KLENZ-SAFE CLEANING SOLUTION

         In February 2002, we reached an agreement in principle with Mr. Anthony
Campo, the Chairman of the Company, and with Mr. Dwight Foster, Chief Executive
Officer of the Company, pursuant to which we would obtain a license to use and
sell a proprietary cleaning solution owned by Foster-Campo Corp.
("Foster-Campo"), a corporation owned by Mr. Foster and Mr. Campo. Under the
terms of the proposed license, Foster-Campo would manufacture the cleaning
solution and supply it to our customers. Foster-Campo would then invoice us for
their cost of doing so without any profit to Foster-Campo. Foster-Campo would
receive a royalty payment of 50% of our net profit on sales of the proprietary
solution to our customers. Calculation of our net profit would include, but not
be limited to, amounts Foster-Campo invoices us for supplying our customers with
the cleaning solution.

       In June 2000 Penn State Energy Institute, which is a facility of Penn
State University, agreed to conduct laboratory tests of the application of the
Klenz-Safe solution to the reduction of sulfur from coal burning flue gas. When
coal burning flue gas was introduced through Klenz-Safe using the Company's
proprietary methodology, the capture rate of sulfur exceeded 99.2% and
maintained a minimum 98% rate throughout the testing.

         Due to the success of the initial testing, Penn State Energy Institute
applied to the U.S. Department of Energy for a grant to conduct a pilot test of
Klenz-Safe's ability to capture sulfur in coal burning flue gas. Such grant
request was not funded during the Department of Energy's 2003 funding period.
During our 2004 fiscal year, Penn State informed us that the cost of further
testing, which would be conducted in a working smoke stack to simulate actual
conditions, would be approximately $100,000. We are currently attempting to form
a business relationship with one of more third parties that may assist us in
funding the cost of such testing; however, we are not able to provide any
assurances that we will be able to enter into such a business relationship. In
addition, even if we are able to enter into any such business relationship, it
is probable that we will be required to assign a partial interest in our
Klenz-Safe Technology, or the proceeds of such technology, to such third party
in consideration of such third party's agreement to assist in funding the
additional research.

         If funding for the pilot study is obtained, the pilot tests would be
conducted in a working smoke stack to simulate actual conditions. If such tests
are conducted and are successful, we intend to seek distribution partners to
assist us in marketing and selling the Klenz-Safe product to the coal burning
utility market. We cannot provide any assurances that such testing will occur
or, even if it does occur, that it will be successful.

         In 2001, we engaged a certified indoor air quality laboratory to
perform a series of laboratory tests on Klenz-Safe to determine Klenz-Safe's
ability to remove pollutants and contaminants from building air and to examine
other potential industrial uses. The tests simulated wet scrubber equipment,
which is commonly used device for removing pollutants from building air. Based
on generally known industry practices, management believes that the range of
pollutants captured by Klenz-Safe and the rate of such capture have not been
previously achieved in a single operation. The following were the material
findings of the laboratory tests:



                                       11
<PAGE>



     o    Klenz-Safe captured 90% of carbon monoxide in tested air streams;

     o    Klenz-Safe captured 70% of both nitrogen dioxide and of nitrous oxide
          in tested streams;

     o    Klenz-Safe added no detectable volatile organic compounds to the air
          stream at elevated temperatures, indicating that Klenz-Safe could be
          applied to indoor air cleaning systems without the need of additional
          filtering.

         Based on our tests of Klenz-Safe, management believes that Klenz-Safe
possesses the following environmentally beneficial attributes:

     o    Klenz-Safe is a non-toxic, non-hazardous composition that requires no
          special equipment to protect the personnel using it;

     o    Klenz-Safe achieves a higher starting alkalinity and has a longer
          operating life than can be obtained with commercial caustic materials
          or lime slurries;

     o    Klenz-Safe protects rather than corrodes metal compounds and surfaces.

         Management presently believes that Klenz-Safe may be useful in the
following applications:

     o    Air pollution control in wet scrubber equipment, which are commonly
          used to remove pollutants from building air;

     o    Containment and neutralization of liquids and compounds;

     o    Decontamination of equipment in pharmaceutical production;

     o    Air filtration in indoor air quality control;

     o    Flue and combustion gas scrubbing.

         To date, the cost of the research at Penn State was approximately
$9,000, and the cost of the research by the certified air quality laboratory was
approximately $5,000. In addition, during fiscal 2005 and 2004 we incurred $0
and approximately $4,700, respectively for research relating to Klenz Safe's
ability to remove sulfur from flue burning smoke stacks. Funding for all such
research was provided by loans to the Company from our Chairman, Mr. Anthony
Campo.



                                       12
<PAGE>



         We have presently suspended further testing of Klenz-Safe's ability to
remove sulfur and other contaminating materials from coal-burning flue gas and
to remove contaminants from building air due to a lack of funds to conduct such
testing. However, we are continuing to attempt to form business relationships
with one or more third parties that may assist us in funding the cost of such
testing. We are not able to provide any assurances that we will be able to enter
into such a business relationship. Moreover, even if we are able to enter into
such a business relationship, it is probable that we will be required to assign
a partial interest in our Klenz-Safe technology, or the proceeds of such
technology, to such third party in consideration of such third party's agreement
to assist us in funding such additional testing. We are also seeking power
plants that may be willing to conduct on-site testing.

         Additionally, we are continuing to demonstrate Klenz-Safe to potential
end-user customers to demonstrate its ability to meet intended applications of
such customers.

         We have been granted trademark protection for the name "Klenz-Safe"
from the US Patent and Trademark Office (PTO). The method of application of the
Klenz-Safe formula for removal of sulfur from coal burning flue gas was
developed by a consultant to the Company, who assigned to us his rights to such
know-how and his rights under a provisional patent application filed with the
PTO covering such know-how. In October 2002 we filed an application for a
provisional patent, which extends the Klenz-Safe technology into additional
indoor air quality applications. In February 2003, we filed an amendment to the
October 2002 provisional patent application that revised certain data contained
in the October 2002 provisional patent with the PTO application. In February
2004 we filed a non-provisional patent application relating to Klenz-Safe.
However, we cannot provide any assurances that the PTO will grant a patent on
our Klenz-Safe technology.

HYDROGEN PRODUCTION TECHNOLOGY

         In light of the energy plan of current administration encouraging the
use of hydrogen fuel cells in place of fossil fuels such as oils and gas,
management began to investigate a technology that would produce hydrogen from
sunlight through the use of a proprietary device and solution. The hydrogen gas
produced would be used to supply on demand, low cost hydrogen fuel to
hydrogen-oxygen fuel cells in order to meet stationary and mobile electric power
requirements. Stationary uses would include residential and commercial heating
systems, and mobile uses would include electric and hybrid fuel cell powered
vehicles.

         In June 2002, we entered into an oral agreement with George Johnson and
William L. Johnson (the "Inventors") to develop a method and apparatus for
production of photo galvanic hydrogen (the "PGH Technology") and to prepare and
file a provisional patent application (the "Provisional Patent Application")
relating thereto in the PTO. The Inventors further agreed that, upon filing of
the Provisional Patent Application, they would negotiate with the Company for an
assignment of all of their interest in the PGH Technology and the Provisional
Patent Application to the Company. In consideration for the Inventors' services,
the Company agreed to issue to each of the Inventors 100,000 shares of the
Company's Common Stock and to register such shares with the Securities and
Exchange Commission. The Company subsequently formalized the oral agreement with
the Inventors by a written agreement dated as of June 1, 2002.



                                       13
<PAGE>



         In July 2003, the Inventors filed the Provisional Patent Application
with the PTO. By Agreement dated October 2, 2003 , the Company entered into a
Technology Assignment Agreement with the Inventors pursuant to which the
Inventors agreed to assign to the Company all of their rights in the PGH
Technology, in the Provisional Patent Application, and in all letters patent,
both domestic and foreign, that may be granted for the PGH Technology. In
consideration for such assignment, we granted to the Inventors a right of first
refusal to perform all consulting services derived from contracts and/or grants
entered into between the Company and third parties relating to the development
of the PGH Technology. We further agreed to reimburse the Inventors up to $5,000
for their out-of pocket expenses incurred for materials and supplies to build
apparatus relating to the PGH Technology and for collecting, and testing for,
the production of hydrogen.

         Pursuant to the Technology Assignment Agreement, the Inventors executed
an Assignment of Invention & Patent Rights, dated October 2, 2003 (the
"Assignment"), under which the Inventors assigned to the Company their rights in
the PGH Technology, all applications for Letters Patent that may be filed for
the PGH Technology, and all Letters Patent for the PGH Technology in any
country.

         In October 2003, but effective as of July 18, 2003, we entered into
Consulting Agreements with each of the Inventors (the "Consulting Agreements")
pursuant to which the Inventors agreed to assist the Company in obtaining grants
from and/or contracts with third parties for research and development relating
to the PGH Technology and in obtaining a patent on the technology described in
the Provisional Patent Application. Mr. George Johnson's services under his
Consulting Agreement have terminated due to his death, and Mr. William Johnson's
services have been suspended indefinitely for personal reasons.

         In October 2004, we transferred the apparatus for our PGH Technology to
the University of Kansas for purposes of conducting further testing of the
ability of our PGH Technology to produce hydrogen. However, our discussions with
the University have been discontinued, and we are presently seeking other
parties to continue such testing.

         During fiscal 2005 and 2004, we spent $0 and approximately $8,055,
respectively, on research relating to the PGH Technology. Funding for such
research was provided by loans from our Chairman.

ROTORCAM ENGINE

         We do not expect to further develop the Rotorcam Engine during the next
12-month period. We have been advised by Southwest Research Institute that it
would take up to 4 years and $3 million in order to develop the Rotorcam Engine
for commercial sale. We therefore first intend to use any funds that may become
available to further develop our Klenz-Safe and PGH technologies, which we
believe have the potential to generate operating revenues much earlier than the
Rotorcam Engine. We will, however, continue to evaluate possible
commercialization of the Rotorcam Engine in light of future facts and
circumstances.




                                       14
<PAGE>





ITEM 3.  CONTROLS AND PROCEDURES

             The Company is a development stage company and currently has no
revenues, significant assets or independent operations. Its current Chief
Executive Officer, Dwight Foster, and its current Chief Financial and Accounting
Officer, Anthony Campo, are the only individuals who accumulate financial
information required to be disclosed in the Company's financial reports. Since
Mr. Foster and Mr. Campo are the only individuals who accumulate such
information, they have concluded that the information they accumulate is
obtained by them in such a manner as to permit them to make timely decisions
regarding disclosure. They have also concluded that the Company's controls and
procedures are effective to ensure that information required to be disclosed in
the reports that the Company files under the Exchange Act is recorded,
processed, summarized and reported within the periods required by the Exchange
Act.

             No significant changes in the Company's financial controls over
financial reporting have come to management's attention during the Company's
previous fiscal quarter that have materially affected or are likely to
materially affect the Company's internal control over financial reporting.

         As of the end of the quarterly period covered by this report, the
Company carried out an evaluation, under the supervision of the Company's Chief
Executive Officer and Chief Financial and Accounting Officer, of the
effectiveness of the design and operation of the Company's controls and
procedures, as defined in Exchange Act Rules 13a-15(e) and 15d-15(e). Based upon
that evaluation, they concluded that the Company's disclosure controls and
procedures during the prior quarterly period were effective to enable the
Company to record, process, summarize and report information required to be
included in this quarterly filing.

                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings - None

Item 2.  Unrequested Sales of Equity Securities and Use of Proceeds - None

Item 3.  Defaults upon Senior Securities

We issued a promissory note to Mr. Campo, dated August 1, 2005, in the amount of
$2,087,278, which consolidated amounts we owed to Mr. Campo under our prior
notes. The August 1, 2005 note bears interest at 7.5% per annum, which is
payable quarterly on each November 1, February 1, May 1 and August 1, and
matures on August 1, 2006. We have defaulted on our quarterly interest payment
due on November 1, 2005. As of October 31, 2005, a total of $39,180 in unpaid
interest was owed to Mr. Campo under the August 1, 2005 note. Since we do not
have any revenues, it is doubtful that we will be able to pay any interest or
principal amounts due under the August 1, 2005 note until such time as we have
operating revenues, or we raise funds from an independent source, both of which
events may not occur at any time. Mr. Campo has the right to convert unpaid
amounts due under the August 1, 2005 Note into one share of our common stock for
each $.0075 due under such note so converted up to a maximum of 89 million
shares. In addition, Mr. Campo has the right at any time to declare amounts due
under such note to be immediately due and payable.



                                       15
<PAGE>



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

Item 5.  Other Information - None

Item 6.  Exhibits


         (31)     (a) Certification of Chief Executive Officer in accordance
                  with 18 U.S.C. Section 1350, as adopted by Section 302 of the
                  Sarbanes-Oxley Act of 2002

                  (b) Certification of Principal Financial and Accounting
                  Officer in accordance with 18 U.S.C. Section 1350, as adopted
                  by Section 302 of the Sarbanes-Oxley Act of 2002


         (32)     (a) Certification of Chief Executive Officer in accordance
                  with 18 U.S.C. Section 1350, as adopted by Section 906 of the
                  Sarbanes-Oxley Act of 2002

                  (b) Certification of Principal Financial and Accounting
                  Officer in accordance with 18 U.S.C. Section 1350, as adopted
                  by Section 906 of the Sarbanes-Oxley Act of 2002














                                       16
<PAGE>






                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.

                      MURRAY UNITED DEVELOPMENT CORPORATION
                                  (Registrant)


                         By:     /s/ Dwight Foster
                                 Dwight Foster
                                 Chief Executive Officer

                         Dated:  December 12, 2005


                         By:     /s/ Anthony S. Campo
                                 Anthony S. Campo, Executive Vice President
                                 Secretary and Treasurer
                                 Chief Financial and Accounting Officer

                         Dated:  December 12, 2005



                                                        Dated: December 12, 2005