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, 2006
                                                     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 669, Huntington, New York 11743 (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
   ------    ------

173,253,434 shares of the registrant's Common Stock ,$.0001 per share, were
outstanding as of December 14, 2006.






<PAGE>



                      MURRAY UNITED DEVELOPMENT CORPORATION

                                TABLE OF CONTENTS
                                   FORM 10-QSB



                          PART I FINANCIAL INFORMATION


Item Number                                                               Page

Item 1.       Financial Statements

                    Balance Sheets                                        2-3

                    Statements of Operations                              4

                    Statements of Stockholders' Deficiency                5

                    Statements of Cash Flow                               6

                    Notes to Financial Statements                         7-9

Item 2.       Management's Discussion and Analysis
              Or Plan of Operation                                        10-15



              PART II OTHER INFORMATION

Items 1-6.                                                                16-18

Signatures                                                                19-25



<PAGE>

                             PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

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


                                         October 31, 2006        July 31, 2006
                                         ----------------      ---------------

Current assets


Cash & cash equivalents                  $           184       $        1,707
Loan Receivable                                    2,000                2,000
                                         ----------------      ---------------

Total current assets                     $         2,184       $        3,707
                                         ----------------      ---------------

Total assets                             $         2,184       $        3,707
                                         ================      ===============


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


<PAGE>

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

<TABLE>
<CAPTION>

                                                            October 31, 2006             July 31, 2006
                                                            ----------------             -------------

<S>                                                       <C>                       <C>
Current liabilities:
     Accounts payable and Accrued Expenses                  $            55,544       $            26,435
                                                            --------------------      --------------------

    Total current liabilities                                            55,544                    26,435

Other liabilities:
     Accrued Interest Payable                                           117,012                   100,684
     Notes payable-other stockholder                                    879,978                   868,878
     Accrued Compensation                                               148,128                   148,128
                                                            --------------------      --------------------

    Total other liabilities                                           1,145,118                 1,117,690
                                                            --------------------      --------------------

    Total liabilities                                                 1,190,162                 1,144,125
                                                            --------------------      --------------------


Stockholders' deficiency:

Common Stock, par value $.0001:
     Authorized 200,000,000 shares;
     issued and outstanding
173,253,434 shares and 173,253,434                                       17,326                    17,326
Additional paid-in capital                                            3,232,521                 3,232,521
Deficit accumulated in the development stage                         (4,448,325)               (4,390,265)
                                                            --------------------      --------------------

     Total stockholders' deficiency                                  (1,198,478)               (1,140,418)
                                                            --------------------      --------------------

     Total Liabilities and Stockholders' Deficiency         $             2,184       $             3,707
                                                            ====================      ====================

</TABLE>

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


<PAGE>
                      MURRAY UNITED DEVELOPMENT CORPORATION
                      (A Company in the development Stage)
                            STATEMENTS OF OPERATIONS
              FOR THE THREE MONTHS ENDED OCTOBER 31, 2006 AND 2005

<TABLE>
<CAPTION>
                                                                                            CUMULATIVE
                                                                                              AMOUNTS
                                                                                               FROM
                                               2006                   2005                   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                                            41,732                 37,533               3,145,593
Interest expense-stockholder and
affiliate                                           16,328                 39,180               1,057,166
                                         ------------------     ------------------      ------------------
Total Expenses                                      58,060                 76,713               5,136,790


Net Gain (Loss) before tax               $         (58,060)     $         (76,713)      $      (4,437,825)
                                         ------------------     ------------------      ------------------
Other Income
-------------
Debt Forgiveness                                         -                      -                 632,500

Net Income (Loss)                        $         (58,060)     $         (76,713)      $      (4,437,825)
                                         ==================     ==================      ==================

Net loss per common share                $            (Nil)     $            (Nil)      $          (0.026)

Weighted average number of
common shares outstanding                      173,253,434             84,199,086             173,253,454
                                         ------------------     ------------------      ------------------

</TABLE>

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


<PAGE>
                      MURRAY UNITED DEVELOPMENT CORPORATION
                      (A COMPANY IN THE DEVELOPMENT STAGE)
                 STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIENCY)
THREE MONTHS ENDED OCTOBER 31, 2006 AND CUMULATIVE AMOUNTS FROM OCTOBER 13, 1987
                               (DATE 0F INCEPTION)
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                    Common                                               Deficit
                                     Stock                            Additional      Accumulated in
                                   Number of                            Paid in      the Developmental
                                    Shares           Amounts            Capital            Stage                  Total
                               ---------------  ---------------   ----------------  ---------------------    -----------------
<S>                             <C>             <C>              <C>                <C>                      <C>

Balance July 31, 2006              173,253,434  $      $ 17,326   $      3,232,521  $          (4,390,265)   $      (1,140,418)

Net Gain (Loss) at 10/31/2006                                                       $             (58,060)   $         (58,060)

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

                                   173,253,434  $      $ 17,326   $      3,232,521  $          (4,448,325)   $      (1,198,478)
                             =================  ===============   ================  =====================    =================
</TABLE>


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




<PAGE>
                      MURRAY UNITED DEVELOPMENT CORPORATION
                      (A Company in the Development Stage)
                            STATEMENTS OF CASH FLOWS
                  THREE MONTHS ENDED OCTOBER 31, 2006 AND 2005
                    CUMULATIVE AMOUNTS FROM OCTOBER 13, 1987
                               (DATE OF INCEPTION)
                                   (UNAUDTIED)

<TABLE>
<CAPTION>
                                                                                                `          Cumulative
                                                                       2006              2005           from Inception
                                                                  ----------------   --------------    -----------------
<S>                                                                     <C>               <C>              <C>
Operating activities:
Net Income (Loss)                                                 $       (58,060)   $     (76,713)    $     (4,448,325)
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation and Amortization                                                   -            2,083              260,495
Forgiveness of debt income                                                                                     (632,500)
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                                     45,437          (91,504)             706,808
                                                                  ----------------   --------------    -----------------
Net cash used in operating activities                                     (12,623)        (164,234)          (3,351,437)
                                                                  ----------------   --------------    -----------------

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

Financing activities:
    Note payable to stockholder: Proceeds                         $        11,100    $     166,524     $      1,934,025
    Principal payments                                                          -                -             (126,687)
    Proceeds from the issuance of common stock (net)                            -                -            1,804,760
                                                                  ----------------   --------------    -----------------
Net cash provided by financing activities                                  11,100          166,524            3,612,098
                                                                  ----------------   --------------    -----------------
Net increase (decrease) in cash and cash equivalents                       (1,523)           2,290                  184
Cash and cash equivalents, beginning of period                              1,707              170                    -
                                                                  ----------------   --------------    -----------------
Cash and cash equivalents, end of period                          $           184    $       2,460     $            184
                                                                  ----------------   --------------    -----------------
 Supplemental disclosure of cash flow data:
  Interest Paid                                                   $             -    $           -     $              -
                                                                  ----------------   --------------    -----------------

</TABLE>




<PAGE>


                      MURRAY UNITED DEVELOPMENT CORPORATION
                          NOTES TO FINANCIAL STATEMENTS
                            October 31, 2006 and 2005


NOTE 1 - ORGANIZATION AND BUSINESS AND BASIS OF PRESENTATION

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 did not conduct any research and development activities on its
Klenz-Safe or hydrogen technologies during fiscal 2005 or fiscal 2006 and does
not intend to conduct such research and development during the ensuing twelve
months unless it is able to obtain funds from third parties to do so, of which
there can be no assurances. The Company has also not conducted research and
development on the Rotocam engine during its 2001 through 2006 fiscal years.
Presently, management has decided to discontinue efforts to conduct further
research on its engine technology unless the Company receives expressions of
interest to fund such research and development from third parties, 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, 2006, the
Company had not been able to commercially utilize its engine, cleaning solution
or hydrogen technology 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 $1,187,978 as
of October 31, 2006 and have also generated significant working capital
deficiencies from time to time.

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, 2006. The limited amount of liquid resources available at October
31, 2006, and the Company's inability to generate operating revenues and cash
flows raise substantial doubts about the Company's ability to continue as a
going concern.

Management believes that the net liquid assets available at October 31, 2006
will not be sufficient to enable the Company to meets its obligations and to
continue as a going concern during the ensuing twelve-month period and that the
Company's ability to continue as a going concern during such period 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 government grants, the private
or public sale of common stock (the Company has historically depended primarily
on the sale of equity securities to finance its operations) and borrowing
additional amounts from related parties or other sources. However, there can be
no assurance 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.

<PAGE>

In the opinion of management, the financial statements reflect all adjustments
(consisting of only normal and recurring adjustments) necessary to present
fairly the financial position, results of operations and cash flows for those
periods presented.


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. As of October 31,
2006, all of the Company's furniture and equipment is fully depreciated.

Estimates:

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reported period. Actual
results could differ from those estimates.

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


<PAGE>

Income Taxes:

Income taxes are provided for the tax effects of transactions reported in the
financial statements and consists of taxes currently due plus deferred taxes
related primarily to differences between the bases of assets and liabilities for
financial and income tax reporting. The deferred tax assets and liabilities
represent the future tax return consequences of those differences, which will
either be taxable or deductible when the assets and liabilities are recovered or
settled.

Deferred taxes also are recognized for operating losses that are available to
offset future federal income taxes. The Company accounts for investment tax
credits using the flow-through method, and thus reduces income tax expense in
the year the related assets are placed in service.

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, 2006
         Form 10-KSB filed with the SEC.

NOTE 4 - STOCKHOLDER'S EQUITY:

         Information as to stockholders' equity is set forth in the financial
         statements in the July 31, 2006 Form 10-KSB.


<PAGE>

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, 2006 of $4,448,325. Our revenues from our inception on October 13,
1987 through October 31, 2006 aggregating $66,465 were derived from interest
earned and $632,500 for the forgiveness of debt by the majority shareholders
which occurred on December 27, 2005. Interest income was zero in the periods
ended October 31, 2006 and October 31, 2005 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, 2006 and October 31, 2005. 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 $3,156,093. General and administrative expenses decreased to $41,732 in the
period ending October 31, 2006 from $37,533 in the period ending October 31,
2005, or a 11.00% increase. Increases in general and administrative
expenses can be attributed to increased professional fees.

Our cumulative loss from inception includes past licensing fees of $57,260.
There were no licensing fees during the periods ended October 31, 2006 and
October 31, 2005. 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 $1,057,166
on promissory notes payable to our principal stockholder and chairman. Interest
expense decreased to $16,328 in the period ending October 31, 2006 from $39,180
in the period ending October 31, 2005, primarily as a result of the forgiveness
of debt by our chairman and principal stockholder.

<PAGE>

Our net loss of $58,060 in the period ended October 31, 2006 decreased by
$18,653 over the net loss of $76,713 in October 31, 2005. The reduction of
professional fee expense and interest expense caused the overall increase.

LIQUIDITY AND CAPITAL RESOURCES

At October 31, 2006, we had cash and short-term investments totaling $184
(compared to liquid assets of $1,707 at July 31, 2006), a working capital
decrease of $1,523 (compared with a working capital increase of $1,537 at July
31, 2006), and a total stockholders' deficiency of $1,198,478 (compared to a
deficiency of $1,140,418 at July 31, 2006). The stockholders' deficiency
decreased due to the forgiveness of debt by our chairman and principal
stockholder caused the overall increase.

At October 31, 2006, we had current liabilities in excess of current assets of
$42,860. We have not been able to commercially utilize our engine technology 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, 2006 as well as July 31, 2006 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, 2006. Cash flows used during the
period ended October 31, 2006 were $12,623 and cash flows used during the period
ended October 31, 2005 were $164,234. The limited amount of liquid resources
available at October 31, 2006, and our inability to generate operating revenues
and cash flows, raise substantial doubts about our ability to continue as a
going concern.

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 will manufacture the cleaning
solution and supply it to our customers. Foster-Campo will then invoice us for
their cost of doing so without any profit to Foster-Campo. Foster-Campo will
receive a royalty payment of 50% of our net profit on sales of the proprietary
solution to our customers. Calculation of our net profit will 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, 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.

<PAGE>

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 fiscal year ended July 31, 2004, 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
a 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:

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

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

     -    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; and

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

<PAGE>

     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.

We are currently attempting to form a business relationship with one or more
third parties that may assist us in funding the cost of further testing of
Klenz-Safe's ability to remove contaminants from building air on a cost
effective basis; 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 such additional testing.

We are also presently continuing to demonstrate Klenz-Safe to potential end-user
customers. At such customers' request, we are performing further tests on
Klenz-Safe to determine its ability to meet the particular intended applications
of such customers.

To date, the cost of the research conducted by Penn State was approximately
$9,000, and the cost of the research conducted by the certified air quality
laboratory was approximately $5,000. In addition, during fiscal 2003 and 2004 we
incurred approximately $10,000 and $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.

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.

<PAGE>

HYDROGEN PRODUCTION TECHNOLOGY

In light of the energy plan of the current administration encouraging the use of
hydrogen fuel cells in place of fossil fuels such as oils and gas, management
has begun 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 with 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.

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. The Company intends to file the Assignment with the PTO.

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. All services under such Consulting Agreements
have been suspended by the Inventors for personal reasons. In October 2004, we
transferred the apparatus for our PGH Technology to the University of Kansas for

<PAGE>

purposes of conducting further testing of our PGH Technology to determine its
ability to produce hydrogen. Initial results of such testing were positive, and
we have engaged in negotiations to attempt to reach an agreement with a
professor at the University of Kansas to perform further testing on our PGH
Technology. We are unable to provide any assurances that such agreement will be
reached. During fiscal 2004, we spent approximately $4,500 on research relating
to the PGH Technology Funding for such research was provided by loans from our
Chairman.

POTENTIAL MARKETS FOR COMPANY'S PRODUCTS

We believe that the potential markets for our Klenz-Safe products include, the
chemical production, manufacturing, food processing, pharmaceutical production
and indoor air quality control industries. Potential markets for the Company's
hydrogen technology include residential and commercial heating systems and
electric and hybrid fuel cell powered vehicles.

Markets that may be available for the Rotorcam Engine include, off-road terrain
equipment, such as earth-moving farm equipment, tanks, pony engines, marine
engines, generators, and co-generation systems that are used to cool, as well as
to provide an electrical power source for home and industry.

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.


ITEM 3.  CONTROLS AND PROCEDURES

As of the end of the period covered by this report, the Company carried out an
evaluation, under the supervision and the with the participation of the
Company's management, including the Company's Chief Executive Officer and its
Chief Financial 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, the Company's Chief Executive Officer
and its Chief Financial Officer concluded that the Company's disclosure controls
and procedures are effective in enabling the Company to record, process,
summarize and report information required to be included in the Company's
periodic SEC filings within the required time period.

There have been no significant changes in our internal controls or in other
factors that could significantly affect these controls subsequent to the
Evaluation Date.


<PAGE>


                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings - None

Item 2.  Changes in Securities and Use of Proceeds

On October 1, 2004, the Board of Directors approved the issuance of one (1)
million shares of the Company's Common Stock to Mr. John Byrne for his services
as a consultant to the Company between October 2003 and September 2005 in
connection with the development of the Company's hydrogen technology. Such
shares were issued to Mr. Byrne on November 30, 2004, and on such date the
closing sale price of the Company's Common Stock was $.0065. Therefore, based
solely on such closing sale price, the market value of the one (1) million
shares issued to Mr. Byrne on the date of issuance was approximately $6,500. The
shares issued to Mr. Byrne were issued without registration pursuant to Section
4(2) of the Securities Act of 1933 and are therefore "restricted" securities.
Such shares may not therefore be transferred without either the registration of
such shares with the Securities and Exchange Commission or an exemption from
such registration requirements pursuant to the Securities Act of 1933, as
amended.

On November 5, 2004, the Board of Directors approved the issuance of two (2)
million shares of the Company's Common Stock to the Company's Chief Executive
Officer, Dwight Foster, in consideration for his having served as President of
the Company from December 1998 to April 2002, as its Chief Executive Officer
from April 2002 to the date of grant, and as a Director of the Company from
March 2000 to the date of grant, in all such cases without any cash
compensation. Such shares were issued to Mr. Foster on November 5, 2004, and on
such date the closing sale price of the Company's Common Stock was $.0055.
Therefore, based solely on such closing sale price, the market value of the two
(2) million shares issued to Mr. Foster on the date of issuance was
approximately $11,000. The shares issued to Mr. Foster were issued without
registration pursuant to Section 4(2) of the Securities Act of 1933 and are
therefore "restricted" securities. Such shares may not therefore be transferred
without either the registration of such shares with the Securities and Exchange
Commission or an exemption from such registration requirements pursuant to the
Securities Act of 1933, as amended.

On December 17, 2004, Mr. Anthony Campo, the Chairman of the Board and Executive
Vice President of the Company, exercised a right to convert $7,500 of
indebtedness owed by the Company to Mr. Campo into 1,000,000 shares of our
Common Stock. The number of shares for which Mr. Campo exercised his conversion
right was computed at a rate of $.0075 for each such share of Common Stock. Mr.
Campo's conversion right is contained in a Promissory Noted dated August 1, 2004
in the principal amount of $1,876,014 issued by the Company to Mr. Campo. Under
the terms of the Promissory Note, Mr. Campo was given the right to convert all
or any portion of the unpaid principal and/or interest of the Note of a rate of
one share of Common Stock for each 3/4 of one cent of such principal and
interest converted, up to a maximum of 90,000,000 shares. The terms of such
Promissory Note are further described in our Form 10-KSB for the fiscal year
ended July 31, 2004. The shares issued to Mr. Campo were issued without
registration pursuant to Section 4(2) of the Securities Act of 1933 and are
therefore "restricted" securities. Such shares may not therefore be transferred
without either the registration of such shares with the Securities and Exchange
Commission or an exemption from such registration requirements pursuant to the
Securities Act of 1933, as amended.

<PAGE>

Item 3.  Defaults upon Senior Securities

In September 2006, the Board approved the issuance of a new note to Mr. Campo
dated as of August 1, 2006 in the principal amount of $969,562 (the "2006
Note"). The 2006 Note reflected the conversion by Mr. Campo of $667,500 of
indebtedness under the 2005 Note into 89 million shares of the Company's Common
Stock in December 2005; the forgiveness by Mr. Campo of $632,500 of additional
indebtedness under the 2005 Note in December 2005; additional loans in the
amount of $81,600 made by Mr. Campo to the Company between August 1, 2005 and
July 31, 2006; and accrued interest on principal amounts outstanding under the
2005 Note between August 1, 2005 and July 31, 2006 in the amount of $100,684.
Except for a decrease in the principal amount of the 2006 Note and the
elimination of the conversion right resulting from Mr. Campo's full exercise of
such right in December 2005, the terms of such note are the same as the terms of
the 2005 Note.

Since we do not have any revenues, it is very doubtful that we will be able to
pay any interest or principal amounts due under the 2006 Note until such time as
we have operating revenues or until we raise funds from an independent source,
both of which events may not occur at any time. However, should the Merger,
discussed in Item 5 below be concluded, Mr. Campo has agreed to cancel all
existing indebtedness under the 2006 Note as partial consideration for his
receipt of shares in the Merger equaling 0.71% of the outstanding capital stock
of the Company on a fully diluted basis.

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

Item 5.  Other Information:

As previously discussed in our July 31, 2006 Form 10-KSB, in August 2006,
management was approached by representatives of American Metal Technologies
Group ("AMTG"), a company with operations located in the People's Republic of
China, to determine whether management might be interested in having the Company
engage in a merger with AMTG. AMTG is engaged in the business of manufacturing
and sales of precision investment casting and metal fabrication products and of
electronic circuit boards for home appliances and motion controllers in China.

In September 2006, we entered into a non-binding letter of intent ("Letter of
Intent") pursuant to which we would merge with AMTG. Under the terms of the
Letter of Intent, the parties agreed to engage in a merger transaction pursuant
to which the Company would acquire all of the outstanding capital stock of AMTG
in return for issuance to the shareholders and consultants of AMTG of that
number of shares of our Common Stock that would result in such shareholders'
owning approximately 85.57% of the total outstanding shares of Common Stock of
the Company.

The Company and AMTG entered into a Stock Purchase Agreement dated as of
November 6, 2006 (the "Agreement") pursuant to which upon closing the
shareholders and consultants of AMTG would own 85.57% of the total outstanding

<PAGE>

shares of Common Stock of the Company on a fully diluted basis, and existing
Murray shareholders would own 12.22% of the shares of common stock of the
Company on a fully diluted basis. In addition, Mr. Campo would receive 0.71% of
such common stock on a fully diluted basis as partial consideration for his
agreement to cancel approximately $900,000 of indebtedness from the Company to
him. Stockholders holding 15,398,000 Class "B" warrants and Mr. Dwight Foster,
who currently holds an option to purchase 6,000,000 shares of the Company, would
receive similar rights to purchase an aggregate of 1.52% of the common stock of
the Company on a fully diluted basis. AMTG further agreed to pay up to $50,000
of the Company's legal, accounting and other expenses incurred from the date of
the Agreement, subject to completion of the transaction and certain other
conditions.

Although the Agreement has been executed, only limited due diligence was
available to the Company with respect to AMTG and the transaction is subject to
certain terms and conditions including, but not limited to, mutually
satisfactory due diligence investigations by each of the Company and AMTG.

If the business combination is ultimately concluded, present management and
stockholders of the Company will not have control of a majority of the voting
shares of the Company. In addition, new directors and officers would be
appointed and the Company's directors and officers would resign.

Upon satisfactory completion of the respective due diligence, and the
transaction being binding upon the parties, the Company intends to file a Form
8-K which will provide its stockholders with detailed disclosure of the material
terms and conditions of the Agreement as well as a detailed description of the
business of AMTG.

If the transaction with AMTG is not completed, which is not presently
contemplated to happen, management intends simultaneously to seek another
business combination and to continue to look for companies to assist the Company
in attempting to develop and commercialize its Klenz-Safe and PGH technologies.
Depending upon the timing, terms and nature of the opportunities presented as a
result of any such efforts, management will determine whether to engage in a
business combination with an operating company or pursue the development and
commercialization of one or both of the Company's Klenz-Safe and PGH
technologies.


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 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 Officer in accordance
                  with 18 U.S.C. Section 1350, as adopted by Section 906 of the
                  Sarbanes-Oxley Act of 2002

         (B)      Reports on Form 8-K - None



<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 15, 2006


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

                                Dated:  December 15, 2006


Pursuant to the requirements of Securities Exchange Act of 1934, this report has
been signed below by the following persons on behalf of the registrant and in
the capacities and on the dates indicated.

                                                    /s/ Anthony S. Campo
                                                    ------------------------
                                                    Anthony S. Campo,
                                                    Chairman of the Board


                                                    /s/ Dwight Foster
                                                    ------------------------
                                                    Dwight Foster, Director




                                                    Dated: December 15, 2006