SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON D.C.  20549

                                    FORM 8-K/A
 
                 CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF 
                       THE SECURITIES EXCHANGE ACT OF 1934

                      Date of Report:    September 30, 1997
                      --------------------------------------
                        (Date of earliest event reported)


                      Bion Environmental Technologies, Inc.
            ------------------------------------------------------
            (Exact Name of Registrant as Specified in its Charter)

 

       Colorado              0-19333           84-1176672
     --------------        ------------  -------------------
     (State of            (Commission     (I.R.S. Employer
    Incorporation)          File No.)     Identification No.)


      555 17th Street, Suite 3310, Denver, Colorado 80202
     -----------------------------------------------------
     (Address and Zip Code of Principal Executive Offices)


Registrant's  telephone  number  including  area  code:  (303)  294-0750




ITEM 5.  OTHER EVENTS.
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(A)          On September 30, 1997 Bion Environmental Technologies, Inc., (the
"Registrant")  signed  a contract for the design, permitting, and construction
of  its  patented Bion NMS' animal waste treatment system for a new 11,500 hog
finishing  farm  in  Randolph  County,  North  Carolina.   Bion NMS's patented
process  is  an  ecologically-friendly  biological  system which solves animal
waste  handling  concerns  and significantly reduces odor. In the process, hog
wastes  are  converted  into nutrient-rich biologically active biosolids which
the Registrant blends to become BionSoil' products such as organic fertilizers
and  soil  amendments.

(B)          On  October 8, 1997, the Registrant entered into an agreement  to
design  and  install  a number of its patented Bion NMS animal waste treatment
systems  in the States of Colorado and Nebraska. That agreement is attached as
Exhibit  10-1 to the Registrant's September 30, 1997 Form 8-K filed on October
9.  1997  and  is  hereby  incorporated  by reference. The agreement marks the
Registrant*s  initial  entry  into  the  Colorado  and Nebraska animal raising
markets. The agreement is subject to certain contingencies regarding financing
and other matters which must be resolved by November 15, 1997 (unless extended
by  mutual written agreement).  The agreement covers Phase I of a proposed hog
farm  in  eastern  Colorado  and  western  Nebraska  which  will house 330,000
finishing  hogs.  The Agreement calls for payment of $1,200,000 in fees to the
Registrant  and  an equity investment in the Registrant of  $3,000,000 through
the  purchase  of  1,000,000 Units at a purchase price of $3.00 per Unit where
one  Unit  shall  consist  of  one share of the Registrant's restricted common
stock  and  one  warrant  to purchase one share of the Registrant's restricted
stock  at a price of $7.00 per share. The agreement also covers numerous other
matters  (all  of  which  are  set  forth  in  Exhibit  10.1  attached  to the
Registrant's  September  30, 1997 Form 8-K filed on October 9. 1997) including
that  the Registrant has granted an option for design and installation of Bion
NMS systems for Phase II of the project which is contemplated to house 330,000
additional  finishing  hogs,  if  completed.

(C)     Effective October 8, 1997 the Registrant and Scott R. Sieck,  Manager,
Corporate  Development and Shareholder Relations, (collectively "the parties")
mutually  agreed  not  to  renew Mr. Sieck's year-to-year employment agreement
which  is  detailed in the Registrant*s August 30, 1996 Form 8-K.  The parties
also  agreed  that  of  Mr.  Sieck's  remaining  150,000 Class K-1 through K-3
warrants  to  purchase  the Registrant's restricted common stock, 100,000 will
now  be  cancelled  and  he  will  retain  50,000  warrants  to  purchase  the
Registrant*s restricted common stock at a price of $6.00 per share exercisable
from  March  1,  1998 through October 1, 1999.  Mr. Sieck will also be granted
options  to purchase 10,000 shares of the Registrant*s common stock at a price
of  $6.25  per share and 10,000 shares at a price of $7.25 per share, pursuant
to  the  Registrant*s  Fiscal  Year  1994  Incentive  Plan.

(D)        Effective October 3, 1997, the Registrant granted bonuses under its
Fiscal  Year  1994  Incentive  Plan  to three of its employees consisting of a
total  of  30,000 options to purchase shares of the Registrant*s common stock,
10,000  at  a  price  of  $5.40  per share, and 20,000 at a price of $6.25 per
share.


ITEM  7.    FINANCIAL  STATEMENTS  AND  EXHIBITS.
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Exhibit  10.1:          Bion  NMS  Installation  Agreement  (previously  filed
and  incorporated  herein  by  reference)






     SIGNATURES

     Pursuant  to the requirements of the Securities and Exchange Act of 1934,
the  Registrant  has duly caused this report to be signed on its behalf by the
undersigned  hereunto  duly  authorized.


               BION  ENVIRONMENTAL  TECHNOLOGIES,  INC.





Date:  October  17,  1997          By:        /s/  Jon  Northrop
                                        ------------------------
                                                   Jon  Northrop,
                                                   Chief  Executive  Officer




     INDEX  TO  EXHIBITS


Financial  Statements  and  Exhibits.
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     10.1  Bion  NMS  Installation  Agreement  (previously  filed  and
incorporated  by  reference  herein)