SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C.  20549

                                   FORM 10-QSB

(X)     QUARTERLY  REPORT  PURSUANT  TO  SECTION  13  OR  15(d)  OF  THE
                        SECURITIES EXCHANGE ACT OF 1934
                For the quarterly period ended September 30, 1998

                                       OR

( )     TRANSITION  REPORT  PURSUANT  TO  SECTION  13  OR  15(d)  OF  THE
                        SECURITIES EXCHANGE ACT OF 1934
              For the transition period from          to
                                             ---------  ---------

     Commission  File  Number:  0-21609
                                -------


                          CHASE PACKAGING CORPORATION
    -----------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

           Texas                                     93-1216127
-------------------------------          -----------------------------------
(State or other jurisdiction of          (I.R.S. Employer Identification No.)
incorporation or organization)

          c/o Ann W. Green, 26 Broadway, 8th Floor, New York, NY 10004
          ------------------------------------------------------------
              (Address of principal executive offices)   (Zip Code)

                                 (212) 510-0686
        ----------------------------------------------------------------
                (Issuer's telephone number, including area code)


Check  whether  the Issuer (1) filed all reports required to be filed by Section
13  or  15(d)  of  the  Securities  Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was required to file such
reports),  and  (2) has been subject to such filing requirements for the past 90
days.  YES    NO   X
          ---     ---

Indicate  the  number  of  shares outstanding of each of the issuer's classes of
common  stock,  as  of  the  latest  practicable  date.


              Class                         Outstanding  at  September 30, 1998
--------------------------------------     -------------------------------------
Common Stock, par value $.10 per share               7,002,964 shares


<PAGE>
<TABLE>
<CAPTION>

                                    - INDEX -

                                                                              PAGE(S)
                                                                              -------
<S>         <C>                                                               <C>
PART I.     Financial Information:

ITEM 1.     Financial Statements

            Condensed Balance Sheets - September 30, 1998 (Unaudited)
            and December 31, 1997                                                  3.

            Condensed Statements of Operations (Unaudited) - Three and Nine
            Months Ended September 30, 1998 and 1997                               4.

            Condensed Statements of Cash Flows (Unaudited) -
            Nine Months Ended September 30, 1998 and 1997.                         5.

            Notes to Interim Condensed Financial Statements (Unaudited)            6.


ITEM 2.     Management's Discussion and Analysis or Plan of Operation              8.


PART II.    Other Information                                                      9.


SIGNATURES                                                                        10.


EXHIBITS:   Exhibit 27 - Financial Data Schedule
</TABLE>


                                                                         Page 2.
<PAGE>
PART I.  FINANCIAL  INFORMATION:

ITEM I.  FINANCIAL  STATEMENTS:

<TABLE>
<CAPTION>
                          CHASE PACKAGING CORPORATION
                          ---------------------------
                            CONDENSED BALANCE SHEETS
                            ------------------------

                                   - ASSETS -


                                                       SEPTEMBER      December
                                                        30, 1998      31, 1997
                                                      ------------  ------------
                                                      (UNAUDITED)
<S>                                                   <C>           <C>
CURRENT ASSETS:
  Cash and cash equivalents                           $   154,124   $   126,408
  Accounts receivable                                           -        57,012
                                                      ------------  ------------
TOTAL ASSETS                                          $   154,124   $   183,420
                                                      ============  ============




               - LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) -

CURRENT LIABILITIES:
  Accounts payable                                    $   133,390   $   134,037
  Accrued expenses                                         23,279        23,279
                                                      ------------  ------------
TOTAL CURRENT LIABILITIES                                 156,669       157,316
                                                      ------------  ------------




COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' (EQUITY) DEFICIT:
  Preferred stock $1.00 par value; 4,000,000
    shares authorized, none issued                              -             -
  Common stock, $.10 par value 25,000,000 authorized
    7,002,964 issued in 1998 and 1997                     700,296       700,296
  Additional paid-in capital                            2,914,207     2,914,207
  Accumulated deficit                                  (3,617,048)   (3,588,399)
                                                      ------------  ------------
                                                           (2,545)       26,104
                                                      ------------  ------------

                                                      $   154,124   $   183,420
                                                      ============  ============
</TABLE>

                       See notes to financial statements.


                                                                         Page 3.
<PAGE>

<TABLE>
<CAPTION>

                                        CHASE PACKAGING CORPORATION
                                        ---------------------------
                                          STATEMENTS OF OPERATIONS
                                          ------------------------
                                                 (UNAUDITED)

                                                            THREE MONTHS ENDED         Nine Months Ended
                                                               SEPTEMBER 30,              September 30
                                                         ------------------------  -------------------------
                                                             1998         1997         1998         1997
                                                         ------------  ----------  ------------  -----------
<S>                                                      <C>           <C>         <C>           <C>
NET SALES                                                $     -       $  583,909  $     -       $4,389,425
                                                         ------------  ----------  ------------  -----------

COSTS AND EXPENSES:
  Cost of sales                                                  -        252,561         -       4,241,478
  Selling, general and administrative expense                  9,805      294,916       28,649      997,216
  Interest expense                                               -            -           -         114,165
                                                         ------------  ----------  ------------  -----------
TOTAL COSTS AND EXPENSES                                       9,805      547,477       28,649    5,352,859
                                                         ------------  ----------  ------------  -----------

INCOME (LOSS) BEFORE EXTRAORDINARY ITEM
  AND INCOME TAXES                                            (9,805)      36,432      (28,649)    (963,434)
  Income tax expense                                            -            -            -            -
                                                         ------------  ----------  ------------  -----------
INCOME (LOSS) BEFORE EXTRAORDINARY ITEM                       (9,805)      36,432      (28,649)    (963,434)
  Extraordinary item -gain from extinguishment of debt          -            -            -         173,893
                                                         ------------  ----------  ------------  -----------

NET INCOME (LOSS)                                        $    (9,805)  $   36,432  $   (28,649)  $ (789,541)
                                                         ============  ==========  ============  ===========

WEIGHTED AVERAGE COMMON SHARES
  OUTSTANDING                                              7,002,964    7,002,964    7,002,964    7,002,964
                                                         ============  ==========  ============  ===========

INCOME (LOSS) PER COMMON SHARE
  Income (loss) per share before extraordinary item      $      -      $      .01  $      -      $     (.13)
  Extraordinary item                                            -            -            -             .02
                                                         ------------  ----------  ------------  -----------

INCOME (LOSS) PER SHARE                                  $      -      $      .01  $      -      $     (.11)
                                                         ============  ==========  ============  ===========
</TABLE>

                       See notes to financial statements.


                                                                         Page 4.
<PAGE>
<TABLE>
<CAPTION>
                                    CHASE PACKAGING CORPORATION
                                    ---------------------------
                                     STATEMENTS OF CASH FLOWS
                                     ------------------------
                                            (UNAUDITED)

                                                                           Nine Months Ended
                                                                             September 30,
                                                                       -------------------------
                                                                          1998          1997
                                                                       -----------  ------------
<S>                                                                    <C>          <C>
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                                             $  (28,649)  $  (789,541)
  Adjustments to reconcile net loss to net cash provided by operating
    activities:
      Gain on disposal of property and equipment                                -       (20,808)
      Depreciation and amortization                                             -       180,481
      Gain from extinguishment of debt                                          -      (173,893)
      Non-cash expenses                                                         -        62,428
  Change in assets and liabilities:
      Accounts receivable                                                  57,012     1,478,968
      Inventories                                                               -       764,664
      Prepaid expenses                                                          -        70,566
      Accounts payable                                                       (647)     (137,981)
      Accrued liabilities                                                       -      (258,340)
      Advance billings                                                          -       (37,382)
                                                                       -----------  ------------
        NET CASH PROVIDED BY OPERATING ACTIVITIES                          27,716     1,139,162
                                                                       -----------  ------------


CASH FLOWS FROM INVESTING ACTIVITIES:
  Capital expenditures                                                          -      (113,360)
  Proceeds from sale of property and equipment                                  -     1,176,461
  Other assets                                                                  -        (1,650)
                                                                       -----------  ------------
        NET CASH PROVIDED BY INVESTING ACTIVITIES                               -     1,061,451
                                                                       -----------  ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Principal payments of debt obligations                                        -      (350,000)
  Net payments on line of credit                                                -    (1,390,392)
  Capital contributed                                                           -         9,318
                                                                       -----------  ------------
        NET CASH (USED IN) FINANCING ACTIVITIES                                 -    (1,731,074)
                                                                       -----------  ------------

NET INCREASE IN CASH                                                       27,716       469,539
CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD                         126,408        21,378
                                                                       -----------  ------------
CASH AND CASH EQUIVALENTS, AT END OF PERIOD                            $  154,124   $   490,917
                                                                       ===========  ============
SUPPLEMENTAL CASH FLOW INFORMATION
  Cash paid during the period for:
    Interest                                                           $        -   $    94,156
</TABLE>

                       See notes to financial statements.


                                                                         Page 5.
<PAGE>
                           CHASE PACKAGING CORPORATION
                           ---------------------------
                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------
                               SEPTEMBER 30, 1998
                               ------------------
                                   (UNAUDITED)


NOTE 1  - BASIS  OF  PRESENTATION:

          On  June  25,  1997,  Chase  Packaging  Corporation  ("Chase"  or "the
          Company")  announced to employees and creditors that Chase would begin
          an orderly liquidation of all Chase's assets beginning at the close of
          business  on June 30, 1997. On July 25, 1997, the Company notified its
          creditors  by  mail  that  the  Company would commence with an orderly
          liquidation of all its remaining assets outside of a formal bankruptcy
          or  receivership  proceeding  in  a  manner intended to maximize asset
          values. The Company's Board of Directors determined that it was in the
          best  interest of the Company and all of its creditors to liquidate in
          an  orderly  fashion  and  this was completed as of December 31, 1997.

          As  previously  disclosed,  in  May 1996, a formal plan was adopted to
          reorganize TGC Industries, Inc. (TGC) and Chase. Pursuant to the plan,
          the  following  actions  were  taken:

          1.   TGC  liquidated  Chase  (Old Chase) with TGC receiving all of Old
               Chase's  assets  and liabilities in cancellation of the Old Chase
               stock  held by TGC. TGC formed a new wholly-owned subsidiary, New
               Chase,  and  transferred to it, all of the assets and liabilities
               received in the liquidation of Old Chase, except TGC retained the
               manufacturing  facility  located in Portland, Oregon and canceled
               Old  Chase's  note  payable  to  TGC.

          2.   TGC  contributed  $2,716,403  as additional capital to New Chase.

          3.   Effective  July  31,  1996,  TGC spun-off New Chase by a dividend
               distribution  to  the  stockholders  of  record of TGC common and
               preferred  stock. At the same time, the name was changed from New
               Chase  to  Chase  Packaging  Corporation.

          In  the  opinion  of  management,  the  accompanying unaudited interim
          condensed financial statements of the Company, contain all adjustments
          necessary (consisting of normal recurring accruals or adjustments only
          to present fairly the Company's financial position as of September 30,
          1998  and  the  results of its operations and cash flows for the three
          and  nine  month  periods  ended  September  30,  1998  and  1997.

          The  accounting policies followed by the Company are set forth in Note
          2  to the Company's financial statements included in its Annual Report
          on  Form  10-KSB  for  the  year  ended  December  31,  1997  which is
          incorporated  herein  by reference. Specific reference is made to this
          report  for a description of the Company's securities and the notes to
          consolidated  financial  statements.

          The  results  of  operations for the nine-month period ended September
          30,  1998 are not necessarily indicative of the results to be expected
          for  the  full  year.


                                                                         Page 6.
<PAGE>
                          CHASE PACKAGING CORPORATION
                          ---------------------------
                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------
                               SEPTEMBER 30, 1998
                               ------------------
                                  (UNAUDITED)


NOTE 2  - INCOME  (LOSS)  PER  COMMON  SHARE:

          Income (loss) per common share before and after extraordinary gain for
          the  three  and  nine  month  periods  were calculated by dividing net
          income  (loss)  for the period by the number of shares outstanding for
          the  period  ended  September  30,  1998  and  1997.


NOTE 3  - EXTRAORDINARY  ITEM  -  GAIN  FROM  EXTINGUISHMENT  OF  DEBT:

          On  March  18,  1997,  TGC  sold  the  Portland,  Oregon  facility for
          $2,430,000  with  $1,780,000  of  the proceeds applied against Chase's
          outstanding  mortgage  indebtedness  to  Union  Camp  Corporation with
          respect  to  such facility. The $1,780,000 payment to Union Camp, when
          combined  with  a  principal payment of $350,000 made to Union Camp on
          January  7,  1997  from  the  sale  proceeds  of Chase's polypropylene
          weaving equipment, resulted in the Union Camp note being declared paid
          in  full  as  of  March  19, 1997. A gain from debt extinguishments of
          $173,893 was recognized in the 1997 first quarter as a result of these
          payments.  The  gain  consisted of $4,383 in principal and $169,510 in
          interest carried on the Company's financial statements and forgiven by
          Union  Camp. Due to the Company's net operating loss position there is
          no  income  tax  applicable  to  the  gain.


                                                                         Page 7.
<PAGE>
ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
          RESULTS OF  OPERATIONS

          INTRODUCTION:

          Chase  Packaging Corporation (the Company) has experienced cash losses
          for  the  past  four  years  in spite of numerous infusions of working
          capital  and an aggressive program of inventory and expense reduction.
          During  1997,  the  Board  of  Directors  determined  that  an orderly
          liquidation  was  in  the  best interest of the Company and all of its
          creditors and retained the firm of Edward Hostmann, Inc. to assist the
          Company  in  such  liquidation.

          As  part  of  the  liquidation  progress, effective July 21, 1997, the
          Company  sold most of its assets in Idaho Falls, Idaho (excluding real
          estate)  to  Lockwood  Packaging Corporation for $330,000. The Company
          also sold the Idaho Falls real estate (land and building). During July
          and  August  of  1997  Chase  sold  most of its inventory in Portland,
          Oregon,  to  other packaging companies. The Company also sold its band
          label extruder for $125,000 with remaining inventory and machinery and
          equipment  sold  at  an  August  14  auction  for  gross  proceeds  of
          approximately  $340,000.  As  of  December  31,  1997, the Company had
          completed  the  liquidation  of  all  of  its  assets.

          RESULTS  OF  OPERATIONS:

          As  a result of the cessation of operations and the liquidation of its
          assets  as  discussed above, the Company generated no revenues for the
          three  and nine month periods ended September 30, 1998. Administrative
          expenses  incurred  during  the  three  and  nine  month periods ended
          September 30, 1998, aggregated $9,805 and $28,649, respectively, which
          amounts  represent  the  loss  for  the  respective  periods. Revenues
          generated  for  the  three  and nine month periods ended September 30,
          1997  were  $583,909  and  $4,389,425,  respectively.  Total costs and
          expenses  for  the  three  month  period  ended September 30, 1997 was
          $547,477  and the Company reflected income of $36,432 for that period.
          Total costs and expenses for the nine month period ended September 30,
          1997  was  $5,352,859 and the Company reflected a loss of $789,541 for
          that  period  after recording an extraordinary gain of $173,893 due to
          the  extinguishment  of  debt.


          FINANCIAL  CONDITION:

          As  a  result  of  the  liquidation  completed  in 1997, the Company's
          remaining  cash  balance  as of September 30, 1998 was $154,124. These
          remaining  funds will be used to pay continuing expenses, professional
          fees  incurred  by  the trustee and any remaining unsecured creditors.
          Although  it  is  difficult to determine the final return to unsecured
          creditors  from such liquidation, the Company estimates at the present
          time  that  general creditors will receive a distribution equal to ten
          to  fifteen  percent  (10-15%)  of  each  creditor's  claim.


                                                                         Page 8.
<PAGE>
                           PART II. OTHER INFORMATION


Item  1.  Legal  Proceedings

          None

Item  2.  Changes  in  Securities

          None

Item  3.  Defaults  upon  Senior  Securities

          None

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

          None

Item  5.  Other  Information

          None

Item  6.  Exhibits  and  Reports

          None


                                                                         Page 9.
<PAGE>
                                   SIGNATURES



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



                                        CHASE  PACKAGING  CORPORATION
                                        -----------------------------





                                        -----------------------------
Date:  May  6,  2002                    Ann  W.  Green
                                        (Assistant  Secretary
                                        and  Principal  Financial  and
                                        Accounting  Officer)


                                                                        Page 10.
<PAGE>