8-K

                        SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON, D.C.

                                    FORM 8-K

                                 CURRENT REPORT


                      Pursuant to Section 13 of 15(d) of the
                         Securities Exchange Act of 1934


                                June 1, 2007
               ------------------------------------------------
               Date of Report (date of earliest event reported)


                    BION ENVIRONMENTAL TECHNOLOGIES, INC.
             ----------------------------------------------------
             Exact name of Registrant as Specified in its Charter


         Colorado                000-19333               84-1176672
- ---------------------------    ---------------   ---------------------------
State or Other Jurisdiction    Commission File   IRS Employer Identification
     of Incorporation              Number                  Number


             641 Lexington Avenue, 17th Floor, New York, NY 10022
         ----------------------------------------------------------
         Address of Principal Executive Offices, Including Zip Code


                                (212) 758-6622
             --------------------------------------------------
             Registrant's Telephone Number, Including Area Code


Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act
    (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
    (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
    Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
    Exchange Act (17 CFR 240.13e-4(c))




ITEM 1.01  ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

     On June 1, 2007, Bion Environmental Technologies, Inc. ("Bion" or the
"Company") entered into an employment agreement with Craig Scott to serve as
Vice President-Capital Markets/Investor Relations of Bion.  Among other
things, the employment agreement provides that Mr. Scott will initially
receive an annual salary of $120,000 and that he will receive options to
purchase up to an aggregate of 100,000 shares of the Company's Common Stock
that will vest over a period of two years at exercise prices ranging from
$3.00 to $7.00 per share.  The employment agreement is for a term through
August 31, 2009, but may be terminated for any reason on 30 days' notice
after September 30, 2007.

     A copy of the employment agreement with Mr. Scott is filed as an exhibit
to this report.

ITEM 8.01  OTHER EVENTS

     On June 6, 2007, Bion announced that trading of its common stock had
resumed on the OTC Bulletin Board under the symbol "BNET."

     On June 6, 2007, Bion also announced that it had named Craig Scott to
the position of Vice President - Capital Markets/Investor Relations of the
Company.

     The Company's press release dated June 6, 2007 concerning these two
matters is attached as an exhibit to this report.

ITEM 9.01  Financial Statements and Exhibits

     (d)  Exhibits

          Exhibit 10.1  Employment Agreement with Craig Scott (filed herewith
          electronically)

          Exhibit 99.1  Press Release dated June 6, 2007 (filed herewith
          electronically)


                                  SIGNATURE

     Pursuant to the requirements of the Securities 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:  June 6, 2007                   By: /s/ Mark A. Smith
                                          Mark A. Smith, President

EX-10

EXHIBIT 10.1

                                  AGREEMENT


THIS AGREEMENT is made effective the 1st day of June 2007 by and between Bion
Environmental Technologies, Inc. ("Bion") and Craig Scott ("CS").

WHEREAS Bion desires to receive the services of CS upon the terms and
conditions set forth in this Agreement;

AND WHEREAS CS desires to provide to Bion the services of CS upon the terms
and conditions set forth in this Agreement;

NOW THEREFORE, in consideration of the mutual covenants and conditions
hereinafter set forth, Bion does hereby agree to engage the services of CS,
and (with the express consent of CS as evidenced by his signature below),
upon the terms and conditions set forth in the following paragraphs:

     1)   The Term of this Agreement shall run from the June 1, 2007 through
August 31, 2009 unless Bion elects to terminate the Agreement sooner,
provided, however, that termination by Bion before September 1, 2007 shall
only be for "cause" as defined below ("Term") during which Term CS shall
serve as Bion's Vice President-Capital Markets/Investor Relations on a full-
time basis with responsibilities including without limitation investor
relations and buy- and sell-side marketing plus other related functions as
defined by Bion's President and Board of Directors from time-to-time. CS
shall report to Bion's President.

     2)   Compensation during the Term shall be as follows:

          a)   Cash compensation from Bion to CS for services provided by CS
shall be initially $10,000 per month commencing with the first month of full-
time service; Bion's Board will reevaluate the salary of CS after September
1, 2007;

          b)   Bion shall grant to CS, in aggregate, 100,000 options pursuant
to its 2006 Consolidated Incentive Plan as follows:

               i)  10,000 options exercisable at $3.00 per share, which shall
vest on June 1, 2007;

              ii)  10,000 options exercisable at $4.00 per share, which shall
vest on September 1, 2007;

             iii)  20,000 options exercisable at $4.50 per share, which shall
vest on December 1, 2007;

              iv)  20,000 options exercisable at $5.00 per share, which shall
vest on June 1, 2008;

               v)  20,000 options exercisable at $6.00 per share, which shall
vest on December 1, 2008;

              vi)  20,000 options exercisable at $7.00 per share, which shall
vest on May 31, 2009;

             vii)  which options will vest if CS is employed by Bion on the
vesting date; and

            viii)  each vested option will be exercisable until May 31, 2012.

          c)   After September 1, 2007, Bion and CS will discuss
reimbursement to CS for health insurance premiums in a manner consistent with
the treatment of other Bion employees who are similarly situated.

          d)  CS shall be reimbursed by Bion for all reasonable direct
business expenses incurred in the course of his work for Bion on a monthly
basis after submittal of expense reports with reasonably detailed accounting
to Bion; provided, however, that any travel related expenses and any items in
excess of $500 shall be pre-authorized by Bion.

     3)   For all purposes of this Agreement, Bion has the right to terminate
CS at any date without cause in its sole discretion on 30 days' notice,
except that Bion may only terminate CS for cause during the first three
months of this Agreement, with   termination for cause defined to include,
without limitation, any of the events listed below:

          a)   CS's indictment or conviction of any criminal act including,
without limitation, misappropriation of funds or property of Bion or any
other felony criminal act;

          b)   CS's misfeasance or malfeasance in office, which shall mean
fraud, dishonesty, willful misconduct or substantial neglect of duties; and

          c)   Breach by CS of any material provision of this Agreement.

     4)   CS will abide by the terms and provisions of Bion's
Confidentiality/Proprietary      Information Agreement and further agrees
that, unless expressly waived by Bion in writing, CS will require any and all
persons who have access to confidential information of Bion to execute copies
of agreements substantially similar to Exhibit A and that notwithstanding any
other terms herein; Exhibit A remains in full force and effect; and CS
expressly agree that: a) at no time during the Term or during a two (2) year
period following the end of the Term (including any extensions thereto) shall
CS compete with Bion ; b) All work product, inventions, etc. of CS pursuant
to this Agreement shall be the sole property of Bion and CS, as applicable,
shall execute such assignments and /or other documents as may be required to
fully vest such ownership in Bion; and c) all proprietary information and
other information concerning Bion acquired pursuant to the service of CS to
Bion shall at all times be and remain the sole property of Bion  regardless
of how such proprietary information is stored and upon termination of this
Agreement (w/o retaining copies), CS shall return all such proprietary
information to Bion on whatever medium it is evidenced (including w/o
limitation paper files, computer memory media, etc.)

     5)

          a)   This Agreement shall be binding upon and shall inure to the
benefit of   parties hereto and their respective successors and assigns and
any person acquiring, whether by merger, consolidation, liquidation, purchase
of assets or otherwise, all or substantially all of a party's equity or
assets and business.

          b)   It is the intention of the parties hereto that this Agreement
and the performance hereunder and all suits and special proceedings connected
herewith be construed in accordance with and pursuant to the laws of the
State of New York and that in any action, special proceeding or other
proceeding that may be brought arising out of, in connection with, or by
reason of this Agreement, the laws of the State of New York shall be
applicable and shall govern to the exclusion of the law of any other forum,
with regard to the jurisdiction in which any action or special proceeding may
be instituted.

          c)   Any claim or controversy, which arises out of or relates to
this Agreement, or breach of it, shall be settled by arbitration.

          d)   Should any party hereto waive breach of any provision of this
Agreement, that waiver shall not operate or be construed as a waiver of any
further breach of this Agreement.

          e)   In the event that any one or more of the provisions of this
Agreement or any portions there under is determined to be invalid, illegal,
or unenforceable in any respect, the validity, legality and enforceability of
the remaining provisions contained herein shall not in any way be affected or
impaired thereby.

          f)   This Agreement shall constitute the entire agreement between
the parties hereto Oral modifications of the Agreement shall have no effect.
This Agreement may be altered only by a written agreement signed by the party
against whom enforcement of any waiver, change, modification, extension or
discharge is sought.

                                     Bion Environmental Technologies, Inc.



                                     By: /s/ Mark A. Smith
                                         Mark A. Smith



                                     By: /s/ Craig Scott
                                         Craig Scott

EX-99

EXHIBIT 99.1

                      BION ENVIRONMENTAL TECHNOLOGIES, INC.

Bion Environmental Technologies, Inc. Announces Return to Trading on the
OTC Bulletin Board; Names V.P. - Capital Markets/Investor Relations

June 6, 2007.  New York, New York.  Bion Environmental Technologies, Inc.
("Bion") (OTC BB: BNET) announced today that it has resumed trading on the
OTC Bulletin Board under the same symbol (BNET), effective today.   Bion has
completed the comment process on its Form 10-SB Registration Statement with
the U.S. Securities & Exchange Commission.  Bion has been subject to the
periodic reporting requirements of the Securities Exchange Act of 1934, as
amended, since January 14, 2007.

Bion has been traded on the Pink Sheets since early 2004, when it was
delisted from the OTC Bulletin Board.  At that time, the Company elected to
discontinue its SEC filings while it was refining its technology to exploit
an evolving opportunity: integration of large-scale livestock operations with
efficient ethanol production.  Prior to its delisting, Bion had traded on the
OTC Bulletin Board since 1992.

Mark Smith, Bion's President, stated, "The timing of our return to the OTC
Bulletin Board is appropriate in light of the Company's recent progress in
moving towards commercial operations.  Bion's waste management technology
platform has demonstrated its effectiveness, as shown by the peer-reviewed
data generated at the Devries Dairy in Texas.  The Company expects to
commence development of its first Integrated Project combining livestock
operations and ethanol production in the near future."

Bion also announced that it has named Craig Scott to the position of Vice
President - Capital Markets/Investor Relations.  His duties will include
investor relations and buy- and sell-side marketing. Mr. Scott previously
served as Bion's Director of Investor Relations from 1997 to 2001 and has
been a periodic consultant to the Company from 2001 until March 2006.

From April 2005 to August 2006, Mr. Scott served in a similar role (VP -
Capital Markets upon departure) with Cano Petroleum, Inc. (Amex: CFW), an oil
and gas production company specializing in unconventional oil recovery
methods.  During that period and immediately after, Cano successfully raised
approximately $160 million in debt and equity financing and substantially
increased its institutional ownership.   Prior to that, from March 2004 to
April 2005, he was the National Sales Manager and Director of Investor
Relations for Tri-Valley Corp. (Amex: TIV).  During his tenure there, Tri-
Valley was the number one performing energy company listed on the AMEX
(2004), based on year-to-year increase of share price.
            _______________________________________________________

About Bion:  Bion Environmental Technologies, Inc.'s patented and proprietary
technology platform reduces the environmental impact of Confined Animal
Feeding Operations (CAFOs), such as dairies and cattle feeding operations,
and enables integration of large scale CAFOs, ethanol production and end-
product processing (milk, cheese, beef) in an environmentally and
economically sustainable manner (Integrated Projects).  Renewable energy -
sufficient to provide the entire thermal energy requirements for the
Integrated Project - is produced from the waste stream and utilized on-site,
as is the ethanol corn by-product, enabling increased efficiencies and
profitability for all Project facilities.   Bion intends to focus its efforts
on development, operation and ownership of Integrated Projects in multiple
states.

This material includes forward-looking statements based on management's
current reasonable business expectations.  In this document, the word
"intends," "projects," "expects" and similar expressions identify certain
forward-looking statements.  These statements are made in reliance on the
Private Securities Litigation Reform Act, Section 27A of the Securities act
of 1933, as amended.  There are numerous risks and uncertainties that could
result in actual results differing materially from expected outcomes.

For further information, please visit the Company's website at
www.biontech.com, or contact:

Mark A. Smith                          Craig Scott
President                              Vice President-Capital Markets/IR
719-256-5329                           303-843-6191 direct
mas@biontech.com                       cscott@biontech.com