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 February 28, 2001 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 the number of shares  outstanding of each of the issuer's  classes
of common stock, as of the latest practicable date.

                    Class                          Outstanding at April 12, 2001
------------------------------------------       -------------------------------
        Common stock, $.001 par value                     10,421,664 Shares



<PAGE>



                                  CRESTED CORP.

                                      INDEX

                                                                       Page No.
PART I.     FINANCIAL INFORMATION

ITEM 1.     Financial Statements.

            Condensed Consolidated Balance Sheets
                February 28, 2001 and May 31, 2000...........................3-4

            Condensed Consolidated Statements of Operations
                Three and Nine Months Ended February 28, 2001
                and February 29, 2000..........................................5

            Condensed Consolidated Statements of Cash Flows
                Nine Months Ended February 28, 2001 and February 29, 2000......6

            Notes to Condensed Consolidated Financial Statements...............7

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

PART II.    OTHER INFORMATION

ITEM 1.     Legal Proceedings..............................................11-12

ITEM 6.     Exhibits and Reports on Form 8-K..................................12

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


                                        2

<PAGE>



                          PART I. FINANCIAL INFORMATION

ITEM 1.      Financial Statements.

                                  CRESTED CORP.

                      Condensed Consolidated Balance Sheets

                                     ASSETS
<TABLE>
<S>                                                      <C>              <C>
                                                February 28,          May 31,
                                                    2001                2000
                                              ----------------     -------------
                                                 (Unaudited)

CURRENT ASSETS:
    Cash and cash equivalents                  $       5,900       $      3,000

INVESTMENTS IN AFFILIATES                          6,747,000          6,342,200

PROPERTIES AND EQUIPMENT                           1,354,400          1,354,400
Less accumulated depreciation,
    depletion and amortization                    (1,205,900)        (1,205,900)
                                               --------------     --------------
                                                     148,500            148,500

OTHER ASSETS                                           2,100              2,100
                                               --------------     --------------
                                               $  6,903, 500       $  6,495,800
                                               ==============     ==============

</TABLE>


            See notes to Condensed Consolidated Financial Statements.

                                        3

<PAGE>



                                  CRESTED CORP.

                      Condensed Consolidated Balance Sheets



                      LIABILITIES AND SHAREHOLDERS' DEFICIT

<TABLE>
<S>                                                     <C>              <C>
                                               February 28,          May 31,
                                                   2001               2000
                                              ---------------   ----------------
                                                 (Unaudited)
CURRENT LIABILITIES:
      Deferred GMMV purchase option           $           --    $     2,000,000
      Current debt to affiliate                    8,477,100          8,230,200
                                               --------------   ----------------
TOTAL CURRENT LIABILITIES                          8,477,100         10,230,200

COMMITMENT TO FUND EQUITY INVESTEES                  215,600            215,600

RECLAMATION LIABILITY                                748,400            748,400

COMMITMENTS AND CONTINGENCIES

FORFEITABLE COMMON STOCK, $.001 par value
      65,000 shares issued, forfeitable until earned  43,900             43,900

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
         10,356,664 and 10,316,664 shares
          issued and outstanding                      10,500             10,400
      Additional paid-in capital                   8,756,800          8,747,200
      Accumulated deficit                        (11,348,800)       (13,499,900)
                                                -------------    ---------------
TOTAL SHAREHOLDERS' DEFICIT                       (2,581,500)        (4,742,300)
                                                -------------    ---------------
                                                $  6,903,500     $    6,495,800
                                                =============    ===============


</TABLE>

            See notes to Condensed Consolidated Financial Statements.

                                        4

<PAGE>



                                  CRESTED CORP.

                 Condensed Consolidated Statements of Operations
                                   (Unaudited)

<TABLE>
<S>                     <C>                <C>          <C>              <C>

                              Three Months Ended          Nine Months Ended
                      February 28,    February 29,  February 28,    February 29,
                     -----------------------------  ----------------------------
                        2001              2000          2001            2000
                        ----              ----          ----            ----

REVENUES:
    Mineral revenue $  14,800         $  16,600      $  48,100       $   50,100
    Interest               --               500            100            2,000
    Litigation settlement  --                --      3,566,400               --
    Other                 100                --            100            5,000
                    ----------        ----------     ----------      -----------
                       14,900            17,100      3,614,700           57,100

COSTS AND EXPENSES:
    General and
     administrative    43,600           133,700        175,900          242,900
                   -----------        ----------     ----------      -----------

INCOME (LOSS) BEFORE EQUITY LOSS
    AND TAX PROVISION (28,700)         (116,600)     3,438,800         (185,800)

EQUITY IN LOSS
  OF AFFILIATE       (540,700)         (756,600)    (1,287,700)      (1,564,200)
                   -----------       -----------    -----------      -----------

INCOME (LOSS)  BEFORE
    PROVISION FOR
    INCOME TAXES     (569,400)         (873,200)     2,151,100       (1,750,000)

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

NET INCOME (LOSS)  $ (569,400)       $ (873,200)    $2,151,100      $(1,750,000)
                   ===========       ===========    ===========     ============

NET INCOME (LOSS)
    PER SHARE, BASIC
    AND DILUTED   $     (0.07)       $    (0.08)    $     0.21      $     (0.17)
                  ============       ===========    ===========     ============

BASIC WEIGHTED AVERAGE SHARES
    OUTSTANDING    10,336,439         10,298,531     10,323,135      10,289,219
                  ============       ============   ============    ============

DILUTED WEIGHTED AVERAGE SHARES
    OUTSTANDING    10,401,439         10,363,531     10,388,135      10,354,219
                  ============       ============   ============    ============

</TABLE>






            See notes to Condensed Consolidated Financial Statements.

                                        5

<PAGE>





                                  CRESTED CORP.

                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)
<TABLE>
<S>                                             <C>                     <C>

                                                     Nine Months Ended
                                            February 28,            February 29,
                                                2001                   2000
                                                ----                   ----

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                        $   2,151,100          $  (1,750,000)
  Adjustments to reconcile net income (loss) to net cash
      provided by (used in) operating activities:
         Non cash compensation                   144,900                173,400
         Equity in loss of affiliates          1,287,700              1,564,200
         Deferred GMMV purchase option        (2,000,000)                    --
         Net changes in other assets and liabilities  --                 69,500
                                           --------------         --------------
NET CASH PROVIDED BY OPERATING ACTIVITIES      1,583,700                 57,100

CASH FLOWS FROM INVESTING ACTIVITIES:
  Investments in affiliates                   (1,540,800)                    --


CASH FLOWS FROM FINANCING ACTIVITIES:
  Net activity on long term debt to affiliate    (40,000)               (95,000)

NET INCREASE (DECREASE) IN                 --------------         --------------
  CASH AND CASH EQUIVALENTS                        2,900                (37,900)

CASH AND CASH EQUIVALENTS AT
  BEGINNING OF PERIOD                              3,000                 45,000
                                           --------------          -------------

CASH AND CASH EQUIVALENTS AT
  END OF PERIOD                            $       5,900           $      7,100
                                           ==============         ==============

SUPPLEMENTAL DISCLOSURES:
  Net noncash activity on investment
   in affiliate                            $    (151,700)          $   (223,900)
                                          ===============         ==============

 Net noncash activity on debt to affiliate $     286,900           $    415,600
                                          ===============         ==============

</TABLE>

            See notes to Condensed Consolidated Financial Statements.

                                        6

<PAGE>



                                  CRESTED CORP.

                     Notes to Condensed Financial Statements


     1) The  Condensed  Balance  Sheet as of February  28, 2001,  the  Condensed
Statements  of  Operations  and Cash Flows for the three and nine  months  ended
February  28, 2001 and  February  29,  2000,  have been  prepared by the Company
without  audit.  The Condensed  Balance Sheet at May 31, 2000,  has been derived
from the audited financial statements included in the Company's Annual Report on
Form 10-K filed for the year then  ended.  In the  opinion of the  Company,  the
accompanying  financial  statements contain all adjustments  (consisting of only
normal recurring accruals) necessary to fairly present the financial position of
the Company as of February 28, 2001 and May 31, 2000,  the results of operations
for the three and nine months ended February 28, 2001 and February 29, 2000.

     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  May 31,  2000 Form 10-K.  The results of  operations  for the periods
ended February 28, 2001 and February 29, 2000 are not necessarily  indicative of
the operating results for the full year.

     3) Debt at February 28, 2001 and May 31, 2000  consists of the balance on a
note payable to USE of $8,477,100 and $8,230,200, respectively.

     4) The reclamation  liability of $748,400 represents the Company's share of
the  liability at the Sheep  Mountain  Mines in the Crooks Gap Mining  District.
This  reclamation  work may be  performed  over  several  years  and will not be
commenced  until such time as all the uranium  mineralization  contained  in the
properties is produced or the properties are  abandoned.  It is not  anticipated
that either of these events will occur for sometime into the future.

     5) On  September  11,  2000,  the Company and USE entered into a settlement
agreement  with Kennecott  related to the pending legal  dispute.  In connection
with this  settlement  agreement,  the  Company and USE have  transferred  their
ownership  interests in GMMV to Kennecott,  including the ownership  interest in
the  Sweetwater  Mill,  the Jackpot Mine,  the Big Eagle Mine and shop,  and all
patented and  unpatented  mining  claims.  The Company and USE received  various
machinery  and  equipment  held by GMMV at the Jackpot Mine and $3.25 million in
cash from Kennecott.  In addition,  Kennecott has assumed all the liabilities of
the GMMV,  including  all  reclamation  and  bonding  requirements,  except  the
reclamation liability associated with the Green Mountain Ion Exchange Plant.

     6) The Company  adopted  EITF 00-01,  "Balance  Sheet and Income  Statement
Display  Under the Equity Method for  Investments  in Certain  Partnerships  and
Other  Unincorporated  Joint  Ventures,"  effective June 1, 2000.  This standard
requires  the  Company to account for its  investment  in USECB using the equity
method of  accounting.  The Company  previously  consolidated  its  proportional
ownership in the joint  venture  (50%) for  financial  reporting  purposes.  The
adoption of this  standard did not impact the net income  (loss) of the Company,
but did have a material effect on the financial position and the presentation of
the Company's financial statements.

     7) Certain  reclassifications  have been made to the May 31, 2000 financial
statements to conform to the classifications used as of February 28, 2001.



                                        7

<PAGE>



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  quarter  ended  February  28,  2001 be read in
conjunction with the Company's Form 10K for the year ended May 31, 2000.

Overview of Business

     The Company is engaged in the mineral development and extraction  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 Wyoming  and Montana in the Powder  River Basin and various  real
estate operations including a motel operation near Lake Powell, Utah.

     All these business 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 adopted EITF 00-01, "Balance Sheet and Income Statement Display
Under the  Equity  Method for  Investments  in  Certain  Partnerships  and Other
Unincorporated  Joint Ventures,"  effective June 1, 2000. This standard requires
the Company to account for its  investment  in USECB using the equity  method of
accounting.  The Company previously  consolidated its proportional  ownership in
the joint venture (50%) for financial reporting  purposes.  The adoption of this
standard  did not impact the net income  (loss) of the  Company,  but did have a
material effect on the financial  position and the presentation of the Company's
financial statements.

Liquidity and Capital Resources

     The  Company's  working  capital  deficit  at May 31,  2000 of  $10,227,200
decreased to a working  capital deficit of $8,471,200 at February 28, 2001. This
decrease of $1,756,000 in the working  capital  deficit was caused  primarily by
the settlement of the litigation with  Kennecott.  As a result of the settlement
with Kennecott the Company was able to recognize $2,000,000 in non-cash revenues
which had previously been carried as a deferred purchase option.  This reduction
in the working capital deficit was partially off set by increased debt to USE of
$246,900.  USE  continues  to  fund  a  significant  portion  of  the  Company's
obligations on the various ventures in which they operate jointly.

     During the nine  months  ended  February  28,  2001,  operations  generated
$1,583,700 in cash while  investing and  financing  activities  consumed cash of
$1,540,800 and $40,000, respectively for a net increase in cash of $2,900.

     During the quarter  ended  February 28,  2001,  the Company  issued  40,000
shares of its restricted  common stock, at market,  to its directors as non cash
compensation.

Capital Resources

     The Company and USE entered  into a  settlement  agreement  with  Kennecott
Energy  ("Kennecott")  on September  11, 2000.  This  settlement  agreement  was
entered into to resolve all issues in a legal  dispute  among the  companies who
were partners in the Green Mountain Mining Venture ("GMMV").  As a result of the
settlement, the Company and USE received $3,250,000 during the nine months ended
February  28,  2001.  Kennecott  assumed  the  reclamation  liabilities  on  the
Sweetwater  uranium mill and mining  properties of the GMMV. The Company and USE
are responsible  for the  reclamation  clean up of the GMIX plant which had been
used in the recovery of uranium by other companies.


                                        8

<PAGE>



     The Company  and USE have a  $1,000,000  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 February  28, 2001,  the line of
credit had been drawn down by $200,000. This obligation no longer is reported as
a liability of the Company as USECB is no longer being consolidated  pursuant to
adopting  EITF 00-01,  "Balance  Sheet and Income  Statement  Display  Under the
Equity Method for Investments in certain  Partnerships and Other  Unincorporated
Joint Ventures." The line of credit is being used for short term working capital
needs associated with operations.  The Company and USE also have a $500,000 line
of credit through their affiliate Plateau Resources.  This line of credit is for
the  development  of the Ticaboo town site in southern  Utah.  Plateau has drawn
down this  financing  facility  $300,000  which is repayable over a period of 10
years.

     Projected equity or industry partner financing of coalbed methane affiliate
Rocky  Mountain  Gas,  Inc.  ("RMG");  sale of mine,  construction  and drilling
equipment;  sale of partial ownership  interest in mineral  properties;  and the
final determination of the SMP  arbitration/litigation  will potentially provide
cash to fund the  operations  of the Company.  The Company also will continue to
receive  revenues from its  commercial  operations in southern Utah and from the
rental and fixed base airport operations in Wyoming.

     The Company  believes that these cash resources along with funding from USE
will be sufficient to sustain  operations during the balance of fiscal 2001. The
capital  resources at February 28, 2001,  will not be  sufficient,  however,  to
provide  funding for the Company's  maintenance  and  development of its coalbed
methane gas business.  RMG is seeking additional equity financing or an industry
partner arrangement to develop its coalbed methane leases.

Capital Requirements

     The Company and USE jointly  fund the holding  costs of the Sheep  Mountain
uranium  mines;  the  Plateau  uranium  mine and mill,  real  estate  commercial
operations and the development of the coalbed methane gas properties.

     In  September  2000,  the  Company  and USE  determined  that the  contract
drilling  and  construction  work that they had been doing in the  Powder  River
Basin of Wyoming and Montana in the coalbed methane  business for others did not
have sufficient profit margins to warrant  continuing the business.  As a result
of this decision,  all operations on a contract basis were stopped.  The Company
and USE are  currently  in the process of  evaluating  which  equipment  will be
needed to  develop  the RMG  properties.  Any  surplus  equipment  is being sold
privately or auctioned.

     The Company and USE through  RMG,  have  obligations  to make delay  rental
payments on RMG's portion of coalbed methane leases.

     On  December  31, 2000 RMG and  Quantum  entered  into an option and farmin
agreement with Suncor Energy  America Inc.  (Suncor").  The agreement  grants an
option to Suncor to purchase  37.5% of RMG's and 12.5% of Quantum's  interest in
111,567 acres of their coal bed methane properties.  For this option Suncor paid
$1,705,000  at  closing  which  occurred  on  February  9,  2001.  RMG  received
$1,278,800  of this  option  payment.  These  funds  were used to fund the final
payment of $1,300,000 to Quantum.

     The Suncor option period is for 12 months from closing on 105,265.69  acres
and 24 months on 6,301.37 acres.  During this option period Suncor has committed
to conduct a $2,250,000 drilling program on the properties.  RMG is obligated to
fund $250,000 of that drilling program.  At the conclusion of the option periods
Suncor must elect to  exercise  its option or return the  properties  to RMG and
Quantum.  Should Suncor elect to exercise its option the ownership  interests in
the  properties  would be RMG -12.5%,  Quantum - 37.5% and Suncor - 50%.  Should
Suncor exercise its option it is obligated to pay an additional  $3,923,700,  of
which RMG would receive $2,942,800.  Upon exercise of its option, Suncor is also
committed to pay an  additional  $841,400 as a  disportional  contribution  to a
subsequent 18 month drilling program.


                                        9

<PAGE>



     The Company  owes USE  $8,477,100  at February  28, 2001 as a result of USE
funding operations and capital expansion expenses. The Company does not have the
resources to repay this debt and must negotiate continued terms with USE or find
some other means of retiring the debt. To date, USE has not called the debt.

     It is anticipated  that none of the Company's  working capital will be used
in fiscal 2001 for the reclamation of any of its mineral property interests. The
future reclamation costs on the Sheep Mountain properties and the GMIX plant are
covered  by a  reclamation  bond  which is secured by a pledge of certain of the
Company  and USE's real  estate  assets and a cash bond on the GMIX  plant.  The
reclamation bond amount is reviewed annually by State regulatory agencies.

Results of Operations

     Revenues   for  the  nine  months  ended   February  28,  2001,   increased
significantly  by  $3,557,600  from revenues for the same period of the previous
year to  $3,614,700.  This increase was a s a result of the  recognition  of the
litigation settlement with Kennecott.  Of the $3,566,400 recognized as revenues,
$2,000,000  was a non cash  recognition  of a  deferred  purchase  option.  This
purchase  option  was  paid in cash to the  Company  in 1997 by  Kennecott.  The
balance of the revenues  recognized are the cash portion of the payments made by
Kennecott, net of accounts receivable for operations at the GMMV properties.

     Costs and  expenses  decreased  by  $67,000  during the nine  months  ended
February 28, 2001 from the same period of the prior year. This decrease was as a
result of a reduction of contract  drilling and construction work in the coalbed
methane business.

     Due to the  adoption of EITF  00-01,  "Balance  Sheet and Income  Statement
Display  under the Equity Method for  Investments  in Certain  Partnerships  and
Other  Unincorporated  Joint Ventures," the Company recorded an equity loss from
USECC in the amounts of  $1,287,700  and  $1,564,200  for the nine months  ended
February 28, 2001 and February 29, 2000, respectively.

     Operations  for the nine months ended  February  28, 2001,  resulted in net
income of  $2,151,100  as  compared  to a loss of  $1,750,000  for the same nine
months in the previous year.





                                       10

<PAGE>



                           PART II. OTHER INFORMATION

ITEM 1. Legal Proceedings

a.  Sheep Mountain Partners Arbitration/Litigation

     In 1991,  disputes  arose  between  USE/Crested,  and Nukem,  Inc.  and its
subsidiary Cycle Resource  Investment Corp.  ("CRIC"),  concerning the formation
and operation of the Sheep Mountain  Partners  ("SMP")  partnership  for uranium
mining and  marketing,  and activities of the parties  outside SMP.  Arbitration
proceedings  were initiated by CRIC in June 1991 and in July 1991, USECC filed a
lawsuit against Nukem,  CRIC and others in the U.S.  District Court (District of
Colorado)  Civil No. 91 B 1153. In February  1994,  all of the parties agreed to
exclusive  and  binding   arbitration  of  the  disputes   before  the  American
Arbitration   Association("AAA").   Following   73  hearing   days  and  various
submissions by the parties, the arbitration panel (the "Panel") entered an Order
and Award (the  "Order")  in April 1996  finding  generally  in favor of USE and
Crested on certain of their claims  (including the claims for  reimbursement for
standby  maintenance  expenses  and  profits  denied SMP in  Nukem's  trading of
uranium),  and in favor of  Nukem/CRIC  and  against  USE and Crested on certain
other claims. USE/Crested filed a petition for confirmation of the Order and the
District  Court  confirmed  the  Order  in  its  Second  Amended  Judgment  (the
"Judgment") on June 30, 1997.  Thereafter,  Nukem/CRIC  appealed the Judgment to
the 10th Circuit Court of Appeals ("10th CCA").

     On October 22, 1998, the 10th CCA issued an Order and Judgment  unanimously
affirming the U.S. District Court Second Amended Judgment without  modification.
The ruling of the 10th CCA affirmed (i) the imposition of a  constructive  trust
in favor of SMP on Nukem's rights to purchase CIS uranium,  the uranium acquired
pursuant to those rights, and the profits  therefrom;  and (ii) the damage award
against  Nukem/CRIC.  As a result of the ruling of the 10th CCA, USE and Crested
received an  additional  $6,077,264  (including  interest  and court costs) from
Nukem in February  1999 for a total net  monetary  award of  $15,468,625  in the
arbitration/litigation,  and equitable relief in the form of USE's and Crested's
interest in SMP,  which  holds the  constructive  trust over the CIS  contracts.
After  paying  the  $6,077,264,  Nukem/CRIC  filed a motion  for  entry of final
satisfaction of Judgment.  The U.S. District Court denied the motion on July 16,
1999 and on August 16, 1999,  Nukem filed a Second  Notice of Appeal to the 10th
CCA.  USECC  opposed  the  appeal  and  filed  its  brief in  opposition  to the
Nukem/CRIC's  brief in the 10th CCA. On October 16, 2000,  the 10th CCA affirmed
the Order of the  U.S.District  Court denying Nukem's motion for satisfaction of
Judgment.  Thereafter,  USECC  filed a motion to  enforce  the  Judgment  and on
February 15, 2001,  the U.S.  District  Court  entered two orders,  one granting
USECC's  motion and the  second,  appointing  a Special  master to  enforce  the
Court's  Judgment  through an accounting.  On April 2, 2001 Nukem/CRIC  produced
certain documents pursuant to the demand of USECC. The accounting is proceeding.

b.  BGBI Litigation

     USE and Crested were defendants and counter- or  cross-claimants in certain
litigation in the District Court of the Fifth  Judicial  District of Nye County,
Nevada, Civil No. 11877, brought by Bond Gold Bullfrog Inc. ("BGBI") on July 30,
1991.  BGBI (now known as Barrick  Bullfrog,  Inc.) is an  affiliate  of Barrick
Corp., a large international gold producer headquartered in Toronto, Canada. The
litigation primarily concerns  extra-lateral rights associated with two patented
mining claims owned by Parador  Mining  Company Inc.  ("Parador")  and initially
leased to a  predecessor  of BGBI,  which  claims are in and  adjacent to BGBI's
Bullfrog open pit and underground mine. USE and Crested assert certain interests
in the claims under an April 1991  assignment  and lease with Parador,  which is
subject to the lease to BGBI's predecessor.

     A partial  or  bifurcated  trial to the Court of the  extra-lateral  rights
issues was held on December 11 and 12, 1995,  to determine  whether the Bullfrog
orebody is a vein apexing on Parador's Claims.  The Court found that Parador had
failed to meet its burden of proof and therefore  Parador,  USE and Crested have
no right,  title and interest in the minerals lying beneath the adjacent  claims
of Layne  pursuant  to  extralateral  rights.  After the trial,  the Court found
against the parties on their respective claims. BGBI and Parador and USE/Crested
all appealed the decision to the Nevada Supreme Court.  On January 26, 2001, the
Nevada Supreme Court entered

                                       11

<PAGE>


an Order of Affirmance,  affirming the Trial Court's  judgment.  On December 10,
1999,  Parador filed a motion for EnBanc review and  thereafter  Parador filed a
Petition for rehearing on February 13, 2001. The motions are pending.


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

     (a)      Exhibits.  None.

     (b) Reports on Form 8-K.  During the quarter  ended  February  28, 2001 the
Company  filed one  report on Form 8-K.  On  February  1, 2001 under Item 4, the
Company  reported the change in its outside  accounting  firm to Grant  Thornton
LLP.



                                   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: April 12, 2001               By:  /s/ John L. Larsen
                                        ----------------------------------------
                                        JOHN L. LARSEN,
                                        Chairman and CEO



Date: April 12, 2001               By:  /s/ Robert Scott Lorimer
                                        ----------------------------------------
                                        ROBERT SCOTT LORIMER,
                                        Principal Financial Officer
                                        and Chief Accounting Officer

                                       12

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