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, 1997

                                       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  of  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, 1997
            ------------------                ----------------------------------
Common  Stock,  par  value  $.10  per  share               7,002,964  shares


<PAGE>
<TABLE>
<CAPTION>

                                   -  INDEX  -

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

ITEM  1.     Financial  Statements


              Statement  of  Net  Assets  in  Liquidation  as  of  September  30,  1997         3.

              Statements  of  Operations  for the Three and Nine Month Periods Ended September
              30,  1997  and  1996                                                              4.

              Statements of Changes in Net Assets in Liquidation for September 30, 1997         5.

              Statements  of  Cash  Flows  for the Nine Month Periods Ended September 30,
              1997  and  1996                                                                   6.

              Notes  to  Financial  Statements.                                                 8.


ITEM  2.      Management's Discussion  and  Analysis  of Financial Condition and
              Results of Operations                                                            11.

PART  II.     Other  Information                                                               12.


SIGNATURES                                                                                     13.


EXHIBITS:     Exhibit  27  -  Financial  Data  Schedule



</TABLE>













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

ITEM  I.     FINANCIAL  STATEMENTS:

                           CHASE PACKAGING CORPORATION
                           ---------------------------
               (A WHOLLY-OWNED SUBSIDIARY OF TGC INDUSTRIES, INC.
                    THROUGH SEPTEMBER 30, 1996 - SEE NOTE 1)

                   STATEMENT  OF  NET  ASSETS  IN  LIQUIDATION
                   -------------------------------------------
                                   (UNAUDITED)

                                   -  ASSETS  -
<TABLE>
<CAPTION>

                                                                     SEPTEMBER,
                                                                      30, 1997
                                                                     ----------
<S>                                                                  <C>
ASSETS:
Cash and cash equivalents                                            $ 490,917
Accounts receivable, net of allowance for doubtful accounts of $-0-    155,417
Prepaid expenses                                                         8,754
                                                                     ----------

                                                                     $ 655,088
                                                                     ==========




                         - LIABILITIES AND SHAREHOLDERS' DEFICIT -


LIABILITIES:
   Trade accounts payable                                            $ 774,922
   Accrued expenses                                                    120,736


SHAREHOLDERS' DEFICIT:
    Deficit of assets in liquidation                                  (240,570)
                                                                     ----------

                                                                     $ 655,088
                                                                     ==========

</TABLE>

                       See notes to financial statements.

                                     Page 3
<PAGE>


                           CHASE PACKAGING CORPORATION
                           ---------------------------
               (A WHOLLY-OWNED SUBSIDIARY OF TGC INDUSTRIES, INC.
                    THROUGH SEPTEMBER 30, 1996 - SEE NOTE 1)

                            STATEMENTS OF OPERATIONS
                            ------------------------
                                   (UNAUDITED)
<TABLE>
<CAPTION>



                                                          Three  Months  Ended      Nine  Months  Ended
                                                               September 30,           September 30,
                                                        -----------------------  -------------------------

                                                           1997        1996          1997          1996
                                                        ----------  -----------  ------------  ------------
<S>                                                     <C>         <C>          <C>           <C>
NET SALES                                               $  583,909  $2,646,303   $ 4,389,425   $ 7,360,986
                                                        ----------  -----------  ------------  ------------

COSTS AND EXPENSES:
Cost of sales                                              252,561   2,597,931     4,241,478     7,254,907
Selling, general and administrative expense                294,916     409,424       997,216     1,366,661
Interest expense                                              -        109,023       114,165       527,673
                                                        ----------  -----------  ------------  ------------
TOTAL COSTS AND EXPENSES                                   547,477   3,116,378     5,352,859     9,149,241
                                                        ----------  -----------  ------------  ------------

INCOME (LOSS) BEFORE
  EXTRAORDINARY ITEM AND INCOME
  TAXES                                                     36,432    (470,075)     (963,434)   (1,788,255)
   Income tax expense                                         -           -             -             -
                                                        ----------  -----------  ------------  ------------

INCOME (LOSS) BEFORE
  EXTRAORDINARY ITEM                                        36,432    (470,075)     (963,434)   (1,788,255)
 Extraordinary item -gain from extinguishment of debt         -           -          173,893          -
                                                        ----------  -----------  ------------  ------------

NET INCOME (LOSS)                                       $   36,432  $ (470,075)  $  (789,541)  $(1,788,255)
                                                        ==========  ===========  ============  ============

WEIGHTED AVERAGE COMMON SHARES
  OUTSTANDING                                            7,002,964   6,960,714     7,002,964     6,960,714
                                                        ==========  ===========  ============  ============

INCOME (LOSS) PER COMMON SHARE
  Income (loss) per share before extraordinary item     $      .01  $     (.07)  $      (.13)  $      (.26)
  Extraordinary item                                          -           -              .02          -
                                                        ----------  -----------  ------------  ------------

INCOME (LOSS) PER SHARE                                 $      .01  $     (.07)  $      (.11)  $      (.26)
                                                        ==========  ===========  ============  ============






</TABLE>

                       See notes to financial statements.

                                   Page  4.

<PAGE>

                           CHASE PACKAGING CORPORATION
                           ---------------------------
               (A WHOLLY-OWNED SUBSIDIARY OF TGC INDUSTRIES, INC.
                    THROUGH SEPTEMBER 30, 1996 - SEE NOTE 1)

          STATEMENT  OF  CHANGES  IN  NET  ASSETS  IN  LIQUIDATION
          --------------------------------------------------------
                                   (UNAUDITED)

<TABLE>
<CAPTION>



                                              SEPTEMBER
                                               30, 1997
                                             ------------
<S>                                              <C>
NET ASSETS BEFORE WRITE-DOWN IN LIQUIDATION  $ 1,721,963

  Write-down of assets in liquidation         (1,962,533)
                                             ------------

DEFICIT OF ASSETS IN LIQUIDATION             $  (240,570)
                                             ============





</TABLE>








                       See notes to financial statements.

                                   Page  5.

<PAGE>

                           CHASE PACKAGING CORPORATION
                           ---------------------------
               (A WHOLLY-OWNED SUBSIDIARY OF TGC INDUSTRIES, INC.
                    THROUGH SEPTEMBER 30, 1996 - SEE NOTE 1)

                            STATEMENTS OF CASH FLOWS
                            ------------------------
                                   (UNAUDITED)
<TABLE>
<CAPTION>


                                                                                 Nine  Months  Ended
                                                                                    September  30,
                                                                                   ---------------

                                                                                   1997          1996
                                                                               ------------  ------------
<S>                                                                                <C>           <C>
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                                                       $  (789,541)  $(1,788,255)
Adjustments to reconcile net loss to net cash provided by (used in) operating
 activities:
(Gain) loss on disposal of property and equipment                                  (20,808)        8,629
Non-cash compensation                                                                    -         3,600
Depreciation and amortization                                                      180,481       474,854
Gain from extinguishment of debt                                                  (173,893)            -
Non-cash expenses                                                                   62,428        43,500
Change in assets and liabilities:
Accounts receivable                                                              1,478,968      (277,619)
Inventories                                                                        764,664     1,362,974
Prepaid expenses                                                                    70,566       (10,433)
Accounts payable                                                                  (137,981)     (765,644)
Accrued liabilities                                                               (258,340)      126,636
Advance billings                                                                   (37,382)      (59,421)
                                                                               ------------  ------------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                              1,139,162      (881,179)
                                                                               ------------  ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures                                                              (113,360)     (117,896)
Proceeds from sale of property and equipment                                     1,176,461         9,000
Other assets                                                                        (1,650)       (1,125)
                                                                               ------------  ------------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES                              1,061,451      (110,021)
                                                                               ------------  ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments of debt obligations                                            (350,000)   (1,704,168)
Net payments on line of credit                                                  (1,390,392)     (891,612)
Received from parent                                                                     -       858,542
Capital contributed                                                                  9,318     2,716,403
                                                                               ------------  ------------
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES                             (1,731,074)      979,165
                                                                               ------------  ------------

NET INCREASE (DECREASE) IN CASH                                                    469,539       (12,035)
CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD                                   21,378        25,123
                                                                               ------------  ------------
CASH AND CASH EQUIVALENTS, AT END OF PERIOD                                    $   490,917   $    13,088
                                                                               ============  ============
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the period for:
Interest                                                                       $    94,156   $   430,208

See notes to financial statements.
</TABLE>

                       See notes to financial statements.
                                Page  6.


<PAGE>
                           CHASE PACKAGING CORPORATION
                           ---------------------------
               (A WHOLLY-OWNED SUBSIDIARY OF TGC INDUSTRIES, INC.
                    THROUGH SEPTEMBER 30, 1997 - SEE NOTE 1)

                      STATEMENTS OF CASH FLOWS (CONTINUED)
                      ------------------------------------
                                   (UNAUDITED)



NON-CASH  INVESTING  AND  FINANCING  ACTIVITIES:

(i)          During  the  1997  first  quarter,  Chase  incurred rent expense of
$55,427  for  use of the manufacturing facility owned by TGC.  TGC converted the
rent  receivable  to  equity  in  Chase.









                    See notes to financial statements.

                              Page  7.


<PAGE>

                           CHASE PACKAGING CORPORATION
                           ---------------------------
                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------
                               SEPTEMBER 30, 1997
                               ------------------
                                   (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 of its 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.  As a result of this plan of liquidation, the accompanying
unaudited  financial statements reflect a change in the basis of accounting used
to  determine  the  amounts  at  which assets and liabilities are carried from a
going  concern  basis  to  a  liquidation basis.  The statement of net assets in
liquidation,  statements  of  operations,  statements  of  cash  flows  and  the
statement  of  changes  in  net  assets  in  liquidation  have  been prepared in
accordance with the instructions to Form 10-QSB and therefore do not include all
information  and  footnotes necessary for a fair presentation in conformity with
generally  accepted  accounting  principles.  The  statement  of  changes in net
assets  in liquidation contains only the write-down of assets as of the close of
business  on  September  30,  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.

The  financial  statements  are  presented  on  the  basis  that  the  principal
operations of Old Chase continued with the formation of New Chase, therefore the
statements  of  operations  and  cash  flows for the three and nine months ended
September 30, 1996 consist of three and nine months operations of Old Chase as a
wholly-owned  subsidiary  of  TGC.


                                    Page 8.
<PAGE>
                           CHASE PACKAGING CORPORATION
                           ---------------------------
                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------
                               SEPTEMBER 30, 1997
                               ------------------
                                   (UNAUDITED)


NOTE   2   -     MANAGEMENT  PRESENTATION:

In  the  opinion  of  management,  all adjustments (consisting of write-downs to
realizable  value) considered necessary for a fair presentation of net assets in
liquidation, statements of operations, statements of cash flows, and the related
statement  of  changes in net assets in liquidation have been made.  For further
information,  refer  to  the  financial  statements  and  the  footnotes thereto
included  in  the  Company's  Annual Report for the year ended December 31, 1996
filed  on  Form  10-KSB.

NOTE   3   -     LOSS  PER  COMMON  SHARE:

Loss  per  common  share before and after extraordinary gain for the quarter and
nine  months  ended  September 30, 1997 were calculated by dividing net loss for
the  period by the number of shares outstanding for the period.  Loss per common
share  for the quarter and nine months ended September 30, 1996 was based on the
assumption  that  the  6,960,714  shares  of  common  stock  issued  under  the
reorganization  plan  were  issued  at  the  beginning  of  the  period.


NOTE   4   -     EXTRAORDINARY  ITEM  -  GAIN  FROM  EXTINGUISHMENT  OF  DEBT:

On  March  18,  1997, TGC sold its 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.


NOTE  5   -     LOAN  DEFAULTS:

As  a  result  of  the  March  18, 1997 sale of the Portland facility to TGC and
subsequent  payment  made to Union Camp, the Company cured its default condition
under  the terms of the Union Camp Promissory Note as the Note was declared paid
in  full.  The Company also cured its cross-default condition with the bank as a
result  of  the  payment  to  Union Camp.  In addition, the Company resolved the
violation of the tangible net worth covenant in the Accounts Financing Agreement
with  the  bank  due  to  the contribution made by TGC to the paid-in capital of
Chase  during  the  first  quarter  of  1997.


                                    Page 9.

<PAGE>

                           CHASE PACKAGING CORPORATION
                           ---------------------------
                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------
                               SEPTEMBER 30, 1997
                               ------------------
                                   (UNAUDITED)
                                   -----------


NOTE  6   -     LIQUIDATION:

As  part  of  the  Company's plan of liquidation, effective July 21, 1997, Chase
sold to Lockwood Packaging Corporation Idaho (Lockwood), the Company's operation
at  Idaho  Falls,  Idaho,  as  a  going  concern.

The  assets  sold  included  substantially  all  of  the  Company's  equipment,
furniture,  fixtures,  and  other  assets  located in the Company's Idaho Falls,
Idaho  facility for a total of $75,000.  In addition, the Company sold inventory
from  the Idaho Falls operation to Lockwood for $255,000.  The total proceeds of
$330,000  were  deposited with the Company's bank to pay down the Company's loan
balance  with  this  bank.

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.  Inventory and equipment has been sold to other packaging
concerns  and  an auction was held on August 14, 1997 to liquidate the remaining
inventory,  equipment  and  supplies at the Company's Portland, Oregon facility.

The  table  below  sets forth the assets of Chase on a going concern basis as of
September  30,  1997  and  the  corresponding  write-down  to  the estimated net
realizable  value  at  time  of  disposal:
<TABLE>
<CAPTION>



                          Going concern basis Liquidation
                           9/30/97 balance    write-down   Net realizable value
                           ----------------  -----------  ---------------------
<S>                                <C>            <C>           <C>
Cash                       $        490,917  $         -  $             490,917
Accounts receivable (net)           155,417            -                155,417
Inventories                         870,995      870,995                      -
Prepaid expenses                    280,829      272,075                  8,754

Land and building                    80,209       80,209                      -
Machinery and equipment             739,254      739,254                   -___
                           ----------------  -----------  ---------------------

TOTAL                      $      2,617,621  $ 1,962,533  $             655,088
                           ================  ===========  =====================

</TABLE>

                                    Page 10

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

     RESULTS  OF  OPERATIONS:

Revenues  were  $583,909 for the three months ended September 30, 1997, compared
to revenues of $2,646,303 for the same period of 1996.  Net income for the three
months  ended  September  30,  1997  was  $36,432  as  compared to a net loss of
$470,075  for  the  three  months  ended  September  30,  1996.

Revenues  for  the  first  nine  months  of  1997  was $4,389,425 as compared to
revenues  of  $7,360,986  for  the  first nine months of 1996.  Net loss for the
first  nine  months of 1997 was $789,541 as compared to a net loss of $1,788,255
for  the  first  nine  months  of  1996.

The  40% reduction in revenues for the nine months ended September 30, 1997 when
compared  to the same period of 1996 was the result of continued sluggish demand
for  the  Company's woven polypropylene onion bags and consumer-size mesh potato
bags.  Competition  from  cheap  import  onion  bags  and  low market prices for
potatoes  were  the  primary  factors  impacting  the  lower  demand for Chase's
products.  Although  costs  throughout the operations were lower in 1997 than in
1996,  the  expense reductions could not offset rapidly declining revenues.  The
continuation  in  operating  losses,  when  combined  with  the  decision of the
Company's  secured  lender  not to renew the Company's operating line of credit,
resulted  in the decision of Chase's Board of Directors to liquidate the Company
in  an  orderly  fashion.


FINANCIAL  CONDITION:

Chase  Packaging  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.  The Board of Directors therefore determined that an orderly
liquidation  of  Chase  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, Chase sold most of
its  assets  in Idaho Falls, Idaho (excluding real estate) to Lockwood Packaging
Corporation  Idaho  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 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  a  result of the orderly liquidation, the Company paid down its loan balance
with its secured lender.  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 11
<PAGE>
                           PART II.  OTHER INFORMATION


Item  15     Other  Information

a.     On  June  23,  1997,  Mr.  William  J. Barrett and Mr. Herbert M. Gardner
resigned  as  directors  of Chase Packaging Corporation.  The resignation of Mr.
Barrett and Mr. Gardner were not due to any disagreement with the Company on any
matter  relating  to  the  Company's  operations,  policies  or  practices.

Item  6.     Exhibits  and  Reports  on  Form  8-K

     None







                                    Page 12


<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 13