FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

[X]  Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange
     Act  of  1934  For  the  fiscal  quarter  ended  March  31,  2004  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  0-8773
                                  CRESTED CORP.
--------------------------------------------------------------------------------
              (Exact Name of Company as Specified in its Charter)

              Colorado                                       84-0608126
-------------------------------------------        -----------------------------
(State  or  other  jurisdiction  of                     (I.R.S.  Employer
incorporation  or  organization)                       Identification  No.)

   877 North 8th West, Riverton, WY                             82501
-------------------------------------------        -----------------------------
(Address of  principal  executive  offices)               (Zip  Code)

Company's telephone number, including area code:          (307)  856-9271
                                                   -----------------------------

                                      NONE
--------------------------------------------------------------------------------
      (Former name, address and fiscal year, if changed since last report)

     Indicate  by  check  mark  whether  the  Company  (1) has 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 Company
was  required  to  file  such  reports), and (2) has been subject to such filing
requirements  for  the  past  90  days.
                                 YES X   NO
                                    ---    ---

     Indicate  by  check mark whether the registrant is an accelerated filer (as
defined  in  Rule  12b-2  of  the  Exchange  Act).
                                 YES     NO X
                                    ---    ---

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS

     Indicate  by  check mark whether the registrant has filed all documents and
reports  required  to  be  filed  by  Sections 12, 13 or 15(d) of the Securities
Exchange  Act  of 1934 subsequent to the distribution of securities under a plan
confirmed  by  a  court.

                                 YES     NO
                                    ---    ---

     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 May 17, 2004
-------------------------------------------        -----------------------------
Common  stock,  $0.001  par  value                       17,133,098  Shares


<PAGE>


                                  CRESTED CORP.

                                      INDEX

                                                                       Page  No.
PART  I.  FINANCIAL  INFORMATION

ITEM  1.  Financial  Statements.

          Condensed  Balance  Sheets  (Unaudited)
            March  31,  2004  and  December  31,  2003 . . . . . . . . . . . . 3

          Condensed  Statements  of  Operations  (Unaudited)
            Three  Months  Ended  March  31,  2004  and  2003. . . . . . . . . 4

          Condensed  Statements  of  Cash  Flows  (Unaudited)
            Three  Months  Ended  March  31,  2004  and  2003. . . . . . . . . 5

          Notes  to  Condensed  Financial  Statements  (Unaudited) . . . . . 6-7

ITEM  2.  Management's  Discussion  and  Analysis  of
            Financial  Condition  and  Results  of  Operations . . . . . .  8-10

ITEM  4.  Controls  and  Procedures. . . . . . . . . . . . . . . . . . . . .  10

PART  II. OTHER  INFORMATION

ITEM  1.  Legal  Proceedings . . . . . . . . . . . . . . . . . . . . . . . .  11

ITEM  6.  Exhibits  and  Reports  on  Form  8-K. . . . . . . . . . . . . . .  11

          Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . .  12

          Certifications . . . . . . . . . . . . . . . . . . . . . . . . . 13-16


                                      -2-
<PAGE>


                          PART 1. FINANCIAL INFORMATION

ITEM  1.  FINANCIAL  STATEMENTS

                                  CRESTED CORP.
                            CONDENSED BALANCE SHEETS
                                  (UNAUDITED)
                                     ASSETS
<TABLE>
<CAPTION>


                                                             March 31,     December 31,
<S>                                                        <C>            <C>
                                                               2004            2003
                                                           -------------  --------------
CURRENT ASSETS:
  Cash and cash equivalents                                $      3,300   $       3,300

INVESTMENTS IN AFFILIATES                                     4,815,000       4,373,800

PROPERTIES AND EQUIPMENT                                        896,800         896,800
  Less accumulated depreciation,
  depletion and amortization                                   (886,800)       (886,800)
                                                           -------------  --------------
                                                                 10,000          10,000
                                                           -------------  --------------
Total assets                                               $  4,828,300   $   4,387,100
                                                           =============  ==============


                      LIABILITIES AND SHAREHOLDERS' DEFICIT

CURRENT LIABILITIES:
  Current debt to affiliate                                $ 10,359,400   $   9,408,300
  Asset retirement obligation                                    50,000              --
                                                           -------------  --------------
                                                             10,409,400       9,408,300

COMMITMENT TO FUND EQUITY INVESTEES                             215,600         215,600

ASSET RETIREMENT OBLIGATION                                   1,020,800       1,053,300

COMMITMENTS AND CONTINGENCIES

FORFEITABLE COMMON STOCK, $.001 par value
  15,000 shares issued, forfeitable until earned                 10,100          10,100

SHAREHOLDERS' DEFICIT
  Preferred stock, $.001 par value;
     100,000 shares authorized none issued or outstanding            --              --
  Common stock, $.001 par value; 20,000,000 shares
    authorized; 17,118,098
    shares issued and outstanding                                17,200          17,200
  Additional paid-in capital                                 11,804,800      11,804,800
  Accumulated deficit                                       (18,649,600)    (18,122,200)
                                                           -------------  --------------
                                                             (6,827,600)     (6,300,200)
                                                           -------------  --------------
Total liabilities and shareholders' deficit                $  4,828,300   $   4,387,100
                                                           =============  ==============
</TABLE>


            See accompanying notes to condensed financial statements.


                                      -3-
<PAGE>


                                  CRESTED CORP.
                       CONDENSED STATEMENTS OF OPERATIONS
                                  (UNAUDITED)
<TABLE>
<CAPTION>

                                                 Three Months Ended
                                                      March 31,
                                              --------------------------
                                                  2004          2003
                                              ------------  ------------
<S>                                           <C>           <C>
REVENUES:                                     $        --   $        --

 COSTS AND EXPENSES:
   Accreation of asset retirement obligation       17,500        22,700
   General and administrative                      40,000        36,500
                                              ------------  ------------
                                                   57,500        59,200
                                              ------------  ------------

 LOSS BEFORE EQUITY LOSS, PROVISION
   FOR INCOME TAXES AND CUMULATIVE
   EFFECT OF ACCOUNTING CHANGE                    (57,500)      (59,200)

 EQUITY IN LOSS OF AFFILIATES                    (469,900)     (373,500)
                                              ------------  ------------

 LOSS BEFORE PROVISION FOR INCOME
  TAXES AND CUMULATIVE
  EFFECT OF ACCOUNTING CHANGE                    (527,400)     (432,700)

 PROVISION FOR INCOME TAXES                            --            --
                                              ------------  ------------

 LOSS BEFORE CUMULATIVE EFFECT
  OF ACCOUNING CHANGE                            (527,400)     (432,700)

 CUMULATIVE EFFECT OF
   ACCOUNTING CHANGE                                   --      (293,800)
                                              ------------  ------------

 NET LOSS                                     $  (527,400)  $  (726,500)
                                              ============  ============

 PER SHARE DATA
 NET LOSS PER SHARE, BASIC AND DILUTED
   FROM CONTINUED OPERATIONS                  $     (0.03)  $     (0.02)
   FROM EFFECT OF ACCOUNTING CHANGE                    --         (0.02)
   BASIC AND DILUTED                          $     (0.03)  $     (0.04)
                                              ============  ============

 BASIC AND DILUTED WEIGHTED AVERAGE
   SHARES OUTSTANDING                          17,118,098    17,115,137
                                              ============  ============
</TABLE>


            See accompanying notes to condensed financial statements.


                                      -4-
<PAGE>


                                  CRESTED CORP.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)
<TABLE>
<CAPTION>

                                                   Three months ended
                                                        March 31,
                                                 ----------------------

                                                    2004        2003
                                                 ----------  ----------
<S>                                              <C>         <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                       $(527,400)  $(726,500)
  Adjustments to reconcile net loss to net cash
    used in by operating activities:
      Equity in loss of affiliates                 469,900     373,500
      Accretion of asset retirement obligation      17,500      22,700
      Non cash cummulative effect
        of accounting change                            --     293,800
      Noncash compensation                              --       9,600
                                                 ----------  ----------
NET CASH USED IN OPERATING ACTIVITIES              (40,000)    (26,900)

CASH FLOWS FROM INVESTING ACTIVITIES:
  Investment in affiliates                        (911,100)   (170,700)

CASH FLOWS FROM FINANCING ACTIVITES:
  Net activity on debt to affiliate                951,100     197,600
                                                 ----------  ----------

NET INCREASE IN
  CASH AND CASH EQUIVALENTS                             --          --

CASH AND CASH EQUIVALENTS AT
  BEGINNING OF PERIOD                                3,300       3,300
                                                 ----------  ----------

CASH AND CASH EQUIVALENTS AT
  END OF PERIOD                                  $   3,300   $   3,300
                                                 ==========  ==========

SUPPLEMENTAL DISCLOSURES:
  Interest paid                                  $      --   $      --
                                                 ==========  ==========

  Income tax paid                                $      --   $      --
                                                 ==========  ==========

NONCASH INVESTING AND FINANCING ACTIVITIES:
  Issuance of stock to outside directors         $      --   $   9,600
                                                 ==========  ==========
</TABLE>


            See accompanying notes to condensed financial statements.


                                      -5-
<PAGE>


                                  CRESTED CORP.

              NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

     1)  The  Condensed  Balance  Sheet  as  of March 31, 2004 and the Condensed
Statements  of  Operations  and  Cash Flows for the three months ended March 31,
2004  and  2003,  have been prepared by the Company without audit. The Condensed
Balance  Sheet at December 31, 2003, has been derived from the audited financial
statements  included  in the Company's Annual Report on Form 10-K for the period
then ended. In the opinion of the Company, the accompanying financial statements
contain all adjustments (consisting of only normal recurring accruals except for
the  cumulative effect of a change in accounting principle in 2003) necessary to
fairly  present  the  financial position of the Company as of March 31, 2004 and
the  results  of  operations and cash flows for the three months ended March 31,
2004  and  2003.

     2)  Certain  information  and  footnote  disclosures  normally  included in
financial statements prepared in accordance with accounting principles generally
accepted  in  the United States of America have been condensed or omitted. It is
suggested  that  these  financial  statements  be  read  in conjunction with the
Company's December 31, 2003 Form 10-K. The results of operations for the periods
ended  March  31,  2004 and 2003 are not necessarily indicative of the operating
results  for  the  full  year.

     3)  Debt  at March 31, 2004 and December 31, 2003, consists of debt payable
to the Company's parent U.S. Energy Corp. ("USE") of $10,359,400 and $9,408,300,
respectively

     4)  The Company presents basic and diluted earnings per share in accordance
with  the  provisions  of  Statement  of Financial Accounting Standards No. 128,
"Earnings  per  Share."  Basic and diluted earnings per common share is based on
the  weighted average number of common shares outstanding during the period. The
Company  has  no  outstanding  stock  options  or  warrants.

     5)  The Company has mine properties that are in a shut down mode in central
Wyoming for which it is responsible for one half of the reclamation expense. The
Company  records  the  fair  value of the reclamation liability on its shut down
mining  properties  as  of  the  date  that  the  liability  is  incurred with a
corresponding  increase  in  the  properties.  The  reclamation  liabilities are
reviewed  each  quarter  to  determine whether estimates of timing or cash flows
have  changed  as well the accretion of the total liability on a quarterly basis
for  the  passage  of  time.

     The  Company  will  also deduct from the accrued liability any actual funds
expended for reclamation during the quarter in which it is expended. As a result
of  the  Company  taking impairment allowances in prior periods on its shut down
mining properties, it has no remaining net book value for the properties and has
no  economic benefits to be received in future periods. All changes in estimates
will  therefore  be  charged  to  operations  in  the  quarter in which they are
recorded.

     6)  The  preparation  of financial statements in conformity with accounting
principles  generally  accepted  in  the  United  States  of  America  requires
management  to  make  estimates and assumptions. These estimates and assumptions
affect  the  reported  amounts  of  assets  and  liabilities  and  disclosure of
contingent  assets  and liabilities at the date of the financial statements, and
the  reported  amounts  of  revenues  and  expenses during the reporting period.
Actual  results  could  differ  from  those  estimates.


                                      -6-
<PAGE>


     The  following  is  a  reconciliation  of  the  total  liability  for asset
retirement  obligations  (unaudited)

     Balance  December  31,  2003             $1,053,300
     Addition  to  Liability                         --
     Liability  Settled                              --
     Accretion  Expense  -  8% discount rate      17,500
                                              ----------
     Balance  March  31,  2004                $1,070,800
                                              ==========

     These  reclamation  activities  are scheduled to be completed over the next
several  years. The Company cannot predict the exact amount of such future asset
retirement  obligations.  Estimated  future reclamation costs are based upon the
Company's  best  engineering  estimates  considering  legal  and  regulatory
requirements.

     The  Company  has  reviewed  other  current outstanding statements from the
Financial  Accounting  Standards  Board  and  does not believe that any of those
statements  will  have  a material adverse affect on the financial statements of
the  Company  when  adopted.

     7) On January 30, 2004, Rocky Mountain Gas, Inc., an equity investee of the
Company,  closed  on the acquisition of the assets of Hi-Pro, Production LLC for
$6,800,000.  The  transaction  was  structured  as  an  asset  purchase.

     8)  On  July  30,  2003,  U.S.  Energy  Corp.  ("USE")  and  Crested  Corp.
("Crested")  received  an Order and thereafter a Judgment on August 1, 2003 from
the U.S. District Court of Colorado wherein Chief Judge Lewis T. Babcock entered
an  Order  that Judgment be entered against Nukem/CRIC ("Nukem") in favor of USE
and  Crested  in  the  total amount of $20,044,184. The Judgment was entered and
defendant  Nukem  posted  a  supersedeas bond in the full amount of the Judgment
plus interest for one year, which was approved by the Court. On October 3, 2003,
Nukem,  as  Appellants,  filed  a  Notice of Appeal to the 10th Circuit Court of
Appeals  and  thereafter  on October 15, 2003, USE and Crested filed a Notice of
Cross-Appeal  to  the  10th  Circuit.  As of April 30, 2004 all briefs from both
parties  had  been filed with the 10th Circuit Court of Appeals. It is not known
when or if the 10th Circuit Court of Appeals will hear oral arguments or when it
will  make  its  rulings. In the event the Company and USE prevail, one half the
award  belongs to the Company. A significant portion of the award may be used to
retire  indebtedness  to  USE.


                                      -7-
<PAGE>


                                  CRESTED CORP.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         -----------------------------------------------------------------------
OF  OPERATIONS.
--------------

     The  following  is  Management's  Discussion  and  Analysis  of significant
factors,  which  have  affected  the  Company's liquidity, capital resources and
results  of operations during the periods included in the accompanying financial
statements. For a detailed explanation of the Company's Business Overview, it is
suggested  that  Management's Discussion and Analysis of Financial Condition and
Results  of  Operations  for  the  three  months ended March 31, 2004 be read in
conjunction  with  the Company's Form 10-K for the year ended December 31, 2003.

FORWARD  LOOKING  STATEMENTS
----------------------------

     This  Report  on  Form 10Q includes "forward-looking statements" within the
meaning  of Section 21E of the Securities Exchange Act of 1934, as amended ("the
Exchange Act"). All statements other than statements of historical fact included
in  this  Report,  are  forward-looking statements. In addition, when ever words
like "expect", "anticipate: or "believe" are used, we are making forward looking
statements.  For  all the above reasons, actual results may vary materially from
the  forward-looking  statements  and there is no assurance that the assumptions
used  are  necessarily  the  most  likely  to  occur.

OVERVIEW  OF  BUSINESS
----------------------

     The  Company  has  interests  in  a uranium mine and mill in Southern Utah;
uranium mines in central Wyoming; a gold property in California; coalbed methane
properties  in  southwestern  Wyoming  and the Powder River Basin of Wyoming and
Montana  and  various  real  estate properties. The mine properties are all in a
shut  down  mode.  All  these  businesses  are  operated in conjunction with the
Company's  parent, U.S. Energy Corp. ("USE") through a joint venture between the
two companies, the USECB Joint Venture ("USECB"). The Company accounts for USECB
using  the  equity  method  of  accounting.

CRITICAL  ACCOUNTING  POLICIES
------------------------------

     RECLAMATION  LIABILITIES  - The Company's policy is to accrue the liability
for  future  reclamation costs of its mineral properties under SFAS 143 based on
the  current  estimate of the future reclamation costs as determined by internal
and  external  experts.  The  present  value  of the obligation is accreted each
period  as  the  date  of  obligation  settlement  approaches.

RECENT  ACCOUNTING  PRONOUNCEMENTS
----------------------------------

     The  Company  has  reviewed  all  current  outstanding  statements from the
Financial  Accounting  Standards  Board  and  does not believe that any of those
statements  will  have  a material adverse effect on the financial statements of
the  Company  when  adopted.

LIQUIDITY  AND  CAPITAL  RESOURCES
----------------------------------

     During the three months ended March 31, 2004, the Company incurred $951,100
in additional debt to its parent, USE. This debt was incurred as a result of USE
advancing funds on behalf of the Company to fund its portion of cash obligations
in the various business ventures in which the two companies jointly participate.


                                      -8-
<PAGE>


     The  Company  continues  to have low cash reserves and is unable to pay its
ongoing  administrative  costs  as  well as fund its cash commitments to various
businesses that it and USE operate jointly. The Company must negotiate favorable
terms  on  the  debt  due  to  USE  to  continue  to  operate.

     The Company anticipates that the ultimate resolution of the litigation with
Nukem,  Inc.  will  improve  its  liquidity (see "Capital Resources" below). The
Company  also will participate equally in any benefits or liabilities, which may
come  from  the outcome of litigation that the Company and USE have pending with
Phelps  Dodge  Corporation.

     Operations  during the three months ended March 31, 2004 and 2003, consumed
$40,000  and  $26,900,  respectively.  The  uses  of  cash in operations was the
Company's  portion  of  audit fees, professional services in connection with the
on-going  litigation and other administrative expenditures. Financing activities
during  the  three  months ended March 31, 2004 and 2003, generated $951,100 and
$197,600,  respectively, as the Company borrowed money from USE to fund its cash
commitments. Cash consumed in investing activities of $911,100 at March 31, 2004
and  $170,700  at  March  31, 2003 was as a result of the Company using the cash
borrowed  from USE to fund its portion of operating costs in investments jointly
owned  with  USE.

CAPITAL  RESOURCES
------------------

     The  Company and USE have a $750,000 line of credit with a commercial bank.
The  line  of  credit  is  secured by various real estate holdings and equipment
belonging  to  the  Company  and USE. At March 31, 2004, the total amount of the
line of credit was available to the Company and USE and has been renewed to June
2004. The line of credit is used for short term working capital needs associated
with  operations.

     The  Company's  cash  resources at March 31, 2004 will not be sufficient to
sustain operations during the balance of 2004. The Company will continue to rely
upon  funding  from  USE  to  meet  its  operating,  administration  and capital
requirements.  It  is  not anticipated that during 2004 operations will generate
significant  capital  resources.

     On  August 1, 2003, the Company and USE received a judgment from the United
States District of Colorado in the amount of $20,044,184 against Nukem, Inc. The
Judgment  was  entered and defendant Nukem posted a supersedeas bond in the full
amount  of  the  Judgment  plus interest for one year, which was approved by the
Court.  Nukem  filed  a  motion  to  alter  and  amend portions of the Order and
Judgment  and  a  motion  to  remand  the case to the Arbitration Panel. USE and
Crested also filed a motion to alter and amend certain portions of the Order and
Judgment.  The  motions  were  overruled.  In the event that the Company and USE
prevail,  one  half  of  the  award  belongs  to  the  Company.

     To  generate  capital  resources  the  Company and USE may continue to sell
surplus  equipment or an interest in their various mineral properties, which are
jointly  owned  with  USE.

CAPITAL  REQUIREMENTS
---------------------

     The  Company  and  USE jointly fund the holding costs of the Sheep Mountain
uranium  mines;  the  Plateau uranium mine and mill; costs associated with their
joint  real  estate  and the development of the Rocky Mountain Gas, Inc. ("RMG")
natural  gas  properties.

     The  Company  and  USE,  through RMG, have obligations to make delay rental
payments  on  RMG's  portion of natural gas leases. RMG has entered into various
agreements  with  industry  partners


                                      -9-
<PAGE>


where a portion or all of its drilling commitments on the natural gas properties
are carried. The Company and USE through RMG continue to seek additional funding
sources  to  expand  their  natural  gas  business.

     The  Company  owes USE $10,359,400 as a result of USE funding operating and
capital  expansion  expenses.  The  Company does not have the resources to repay
this debt and must continue to negotiate terms with USE or find some other means
of  retiring  the debt.  To date, USE has not called the debt and has agreed not
to call the debt.  Should the Company and USE prevail in the Nukem litigation, a
significant  portion of the Company's portion of the award may be used to retire
a  portion  or  all  of  this  indebtedness.

     It  is  anticipated  that  approximately  $50,000  will be expended for the
reclamation  of  any of the Company's interests in uranium properties in Wyoming
during  2004.  The  Company  will  borrow its portion of these reclamation funds
from  USE.  The Company and USE are required to provide the necessary capital to
perform  the  reclamation  work  on these properties.  The estimated reclamation
costs  on  these  Wyoming  uranium properties are covered by a reclamation bond,
which  is  secured  by  a pledge of certain of the Company and USE's real estate
assets.  The  reclamation  bond  amount  is reviewed annually for sufficiency by
State  of  Wyoming  regulatory  agencies.

RESULTS  OF  OPERATIONS
-----------------------

     The  Company  had  no revenues during the three months ended March 31, 2004
and  2003.

     Costs  and  expenses for the three months ended March 31, 2004 decreased to
$57,500  compared  to  costs of $59,200 recognized during the three months ended
March  31,  2003.  The  Company  recorded  equity  losses  from USECC and RMG of
$469,900  and  $373,500  during  the three months ended March 31, 2004 and 2003,
respectively.  The  primary  reason  for  the increase in the equity losses from
USECC  and  RMG  are  the  costs  associated  with  the purchase of Hi-Proof RMG
Pinnacle  Gas Resources, Inc., a minority owned affiliate.  The Company recorded
$293,800  as  the  cumulative  effect  of  accounting changes as a result of the
adoption  of  SFAS  143  during  the  three  months  ended  March  31,  2003.

     The  Company  recorded a net loss of $527,400 during the three months ended
March 31, 2004, as compared to a net loss of $726,500 for the three months ended
March  31,  2003.

ITEM  4.  CONTROLS  AND  PROCEDURES
          -------------------------

     Our  management,  under  the  supervision and with the participation of our
Chief  Executive  Officer  ("CEO")  and  Chief  Financial  Officer  ("CFO"), has
evaluated the effectiveness of our disclosure controls and procedures as defined
in Securities and Exchange Commission ("SEC") Rule 13a-15(e) and 15d-15(e) as of
the  end  of  the  period  covered  by this report.  Based upon that evaluation,
management  has  concluded  that  our  disclosure  controls  and  procedures are
effective to ensure that information we are required to disclose in reports that
we  file  or  submit  under  the  Securities  Exchange  Act  is  communicated to
management,  including the CEO and CFO, as appropriate to allow timely decisions
regarding  required  disclosure  and  is  recorded,  processed,  summarized  and
reported  within  the  time  periods  specified  in  the SEC's rules and forms.

     During  the  fiscal  quarter  covered  by  this  report, there have been no
significant  changes  in  internal  control  over  financial reporting that have
materially affected, or are reasonably likely to materially affect, our internal
control  over  financial  reporting.


                                      -10-
<PAGE>


                           PART II. OTHER INFORMATION

ITEM  1.  LEGAL  PROCEEDINGS
          ------------------

     On  July  30, 2003, U.S. Energy Corp. ("USE") and Crested Corp. ("Crested")
received  an  Order  and  thereafter  a Judgment on August 1, 2003 from the U.S.
District Court of Colorado wherein Chief Judge Lewis T. Babcock entered an Order
that  Judgment  be  entered  against  Nukem/CRIC  ("Nukem")  in favor of USE and
Crested  in  the  total  amount  of  $20,044,184.  The  Judgment was entered and
defendant  Nukem  posted  a  supersedeas bond in the full amount of the Judgment
plus  interest  for  one  year,  which was approved by the Court.  On October 3,
2003,  Nukem,  as Appellants, filed a Notice of Appeal to the 10th Circuit Court
of Appeals and thereafter on October 15, 2003, USE and Crested filed a Notice of
Cross-Appeal  to  the  10th  Circuit.  As of April 30, 2004 all briefs from both
parties  had been filed with the 10th Circuit Court of Appeals.  It is not known
when or if the 10th Circuit Court of Appeals will hear oral arguments or when it
will  make  its  rulings.

     No  other material developments in the other pending Legal Proceedings have
occurred since they were last reported by the Company in Item 1 of its Form 10-K
for  the  year  ended  December  31,  2003.

ITEM  2.  CHANGES  IN  SECURITIES  AND  USE  OF  PROCEEDS       NONE
          -----------------------------------------------

ITEM  3.  DEFAULTS  UPON  SENIOR  SECURITIES                    Not  applicable
          ----------------------------------

ITEM  4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS   Not  applicable
          ---------------------------------------------------

ITEM  5.  OTHER  INFORMATION                                    Not  applicable
          ------------------

ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K
          -------------------------------------

     (a)     Exhibits.

          31.1    Certification  of  Chief  Executive  Officer  Pursuant to Rule
                  13a-15(e)  /  Rule  15d-15(e)
          31.2    Certification  of  Chief  Financial  Officer  Pursuant to Rule
                  13a-14(a)  /  Rule  15(e)/15d-15(e)
          32.1    Certification  of  Chief  Executive  Officer  Pursuant  to  18
                  U.S.C.  Section  1350,  as  adopted  by  Section  906  of  the
                  Sarbanes-Oxley  Act  of  2002
          32.2    Certification of Chief Financial Officer Pursuant to 18 U.S.C.
                  Section 1350, as adopted by Section 906 of the  Sarbanes-Oxley
                  Act of 2002

     (b)     REPORTS  ON  FORM  8-K.  The Company filed two reports on Form 8-K
for  the  quarter  ended  March  31, 2004.  The events reported were as follows:

             1.     The report filed  on February 17, 2004, under Items 2 and 7,
                    Referenced the Company's  subsidiary,  Rocky  Mountain  Gas,
                    Inc.  (RMG)  purchasing coalbed methane  properties  in  the
                    Power  River  Basin  of  Wyoming.

             2.     The 8/KA report filed on March 5, 2004, under Items 2 and 7,
                    Referenced the  Company's  subsidiary,  Rocky  Mountain Gas,
                    Inc.  (RMG)  purchasing coalbed methane  properties  in  the
                    Power  River  Basin  of  Wyoming.


                                      -11-
<PAGE>


                                   SIGNATURES


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

                                        CRESTED  CORP.
                                        (Company)



Date:  May  17,  2004                   By:     /s/John  L.  Larsen
                                           -------------------------------------
                                           JOHN  L.  LARSEN,
                                           CHAIRMAN  and  CEO




Date:  May  17,  2004                   By:     /s/Robert  Scott  Lorimer
                                           -------------------------------------
                                           ROBERT  SCOTT  LORIMER
                                           Principal  Financial  Officer  and
                                           Chief  Accounting  Officer


                                      -12-
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