8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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

August 12, 2005
(Date of earliest event reported)

Gasel Transportation Lines, Inc.
(Exact name of registrant as specified in its charter)

Ohio	000-30185	311239328
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

County Road 10, Route 4, Box 181A, Marieta, OH 45750
(Address of principal executive offices) (Zip Code)  

Registrant's telephone number, including area code: (740) 373-6479

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(b) 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 2.02 Results of Operations and Financial Condition

On August 9, 2005 the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated here in by reference.

Item 9.01. Financial Statements and Exhibits.

   Exhibit 99.1. Press release dated August 15, 2005

      Exhibit Index

        99.1 Press release dated August 15, 2005

SIGNATURE

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

                
                


August 15, 2005
(Date)
                 Gasel Transportation Lines, Inc.
(Registrant)


/s/ S. GENE THOMPSON
S. Gene Thompson
President

EX-99

EXHIBIT 99.1

Gasel Transportation Lines, Inc. Announces That It has Ceased Operations and Plans to File a Petition for Liquidation under the Federal Bankruptcy Code

MARIETTA, Ohio, August 15, 2005 (PRIMEZONE) — Gasel Transportations Lines, Inc. (OTCBB:GSEL), operating as a Post Confirmation Debtor under Chapter 11 Reorganization, announced today that the negative results of its 2^nd Quarter operations indicated that its approved Plan and underlying business model was not working.

As a solution, on June 21, 2005 the Company accepted and initiated an arrangement with a larger logistics service organization to restructure its operations and business model, transitioning Gasel to a non-asset-based operation.

The U. S. Bankruptcy Court, in a status hearing on July 19, 2005, granted Gasel 90 days to submit and seek approval of the modification of its confirmed plan to transition to a non-asset-based operation, while voluntarily turning in its transportation equipment and real estate to the secured lenders by August 1, 2005, shedding its related debt and excessive operating costs.

The sudden and unexpected termination of the arrangement with the logistics company on August 1, 2005, forced Gasel to cease operations on August 12, 2005. The Company also announced that it planned shortly to file a motion to convert to Chapter 7 of the Federal Bankruptcy Code for the liquidation of the company.

Gene Thompson, who was recently appointed President of the Company to facilitate the business model transition and expand its operations, said “what a tragic turn of events for the employees, creditors, and shareholders, especially considering how far the Company had come in its reorganization. Every effort has been made to place the employees with other jobs during and after the short business model transition period. At this point, every effort will be made to close the Company and turn over the assets to the creditors and a Bankruptcy trustee properly.”

This press release may make forward-looking statements that are subject to various uncertainties and risks that could affect their outcome. Please refer to the company’s SEC filings, including Forms 10K and 10Q for a more detailed discussion of the risks. Gasel Transportation Lines, Inc.

S. Gene Thompson, President and Chief Financial Officer
740-373-6479 x 110