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  quarter  ended  June  30,  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 August 13, 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)
             June 30, 2004 and December 31, 2003 . . . . . . . . . . . . . . . 3

           Condensed Statements of Operations (Unaudited)
             Three Months and Six Months Ended June 30, 2004 and  2003 . . . . 4

           Condensed Statements of Cash Flows (Unaudited)
             Six Months Ended June 30, 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>


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


                                                       June 30,      December 31,
                                                         2004            2003
                                                    --------------  --------------
<S>                                                 <C>             <C>
CURRENT ASSETS:
  Cash and cash equivalents                         $       3,300   $       3,300

INVESTMENTS IN AFFILIATES                               5,254,400       4,373,800

PROPERTIES AND EQUIPMENT                                  896,800         896,800
  Less accumulated depreciation,
  depletion and amortization                             (886,800)       (886,800)
                                                    --------------  --------------
                                                           10,000          10,000
                                                    --------------  --------------
                                                    $   5,267,700   $   4,387,100
                                                    ==============  ==============


                                  CRESTED CORP.
                            CONDENSED BALANCE SHEETS
                                  (UNAUDITED)
                      LIABILITIES AND SHAREHOLDERS' DEFICIT

                                                        June 30,     December 31,
                                                             2004            2003
                                                    --------------  --------------
CURRENT LIABILITIES:
  Current debt to affiliate                         $  11,210,500   $   9,408,300
  Asset retirement obligation                              50,000              --
                                                    --------------  --------------
                                                       11,260,500       9,408,300

COMMITMENT TO FUND EQUITY INVESTEES                       215,600         215,600

ASSET RETIREMENT OBLIGATION                             1,074,500       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                                 (19,115,000)    (18,122,200)
                                                    --------------  --------------
                                                       (7,293,000)     (6,300,200)
                                                    --------------  --------------
                                                    $   5,267,700   $   4,387,100
                                                    ==============  ==============
</TABLE>


                                      -3-
<PAGE>


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

                                                         Three Months Ended           Six Months Ended
                                                              June 30,                    June 30,
                                                              --------                    --------

                                                         2004          2003          2004          2003
                                                     ------------  ------------  ------------  ------------
<S>                                                  <C>           <C>           <C>           <C>
REVENUES:                                            $        --   $        --   $        --   $        --

 COSTS AND EXPENSES:
   Accreation of asset retirement obligation              27,900        22,700        45,400        45,400
   Change in estimate of asset retirement obliation       25,800            --        25,800            --
   General and administrative                             92,900        52,500       132,900        89,000
                                                     ------------  ------------  ------------  ------------
                                                         146,600        75,200       204,100       134,400
                                                     ------------  ------------  ------------  ------------

 LOSS BEFORE EQUITY LOSS, PROVISION
   FOR INCOME TAXES AND CUMULATIVE
   EFFECT OF ACCOUNTING CHANGE                          (146,600)      (75,200)     (204,100)     (134,400)

 EQUITY IN LOSS OF AFFILIATES                           (318,800)   (1,026,800)     (788,700)   (1,400,300)
                                                     ------------  ------------  ------------  ------------

 LOSS BEFORE PROVISION FOR INCOME
  TAXES AND CUMULATIVE
  EFFECT OF ACCOUNTING CHANGE                           (465,400)   (1,102,000)     (992,800)   (1,534,700)

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

 LOSS BEFORE CUMULATIVE EFFECT
  OF ACCOUNING CHANGE                                   (465,400)   (1,102,000)     (992,800)   (1,534,700)

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

 NET LOSS                                            $  (465,400)  $(1,102,000)  $  (992,800)  $(1,828,500)
                                                     ============  ============  ============  ============

 PER SHARE DATA
 NET LOSS PER SHARE, BASIC AND DILUTED
   BEFORE CUMULATIVE EFFECT OF
     ACCOUNTING CHANGE                               $     (0.03)  $     (0.06)  $     (0.06)  $     (0.09)
   FROM EFFECT OF ACCOUNTING CHANGE                           --            --            --         (0.02)
                                                     ------------  ------------  ------------  ------------
   BASIC AND DILUTED                                 $     (0.03)  $     (0.06)  $     (0.06)  $     (0.11)
                                                     ============  ============  ============  ============

 BASIC AND DILUTED WEIGHTED AVERAGE
   SHARES OUTSTANDING                                 17,118,098    17,099,276    17,118,098    17,116,634
                                                     ============  ============  ============  ============
</TABLE>


                                      -4-
<PAGE>


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

                                                     Six months ended
                                                          June 30,
                                                 ------------  ------------
                                                     2004          2003
                                                 ------------  ------------
<S>                                              <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                       $  (992,800)  $(1,828,500)
  Adjustments to reconcile net loss to net cash
    used in by operating activities:
      Equity in loss of affiliates                   788,700     1,400,300
      Settlement of asset retirment obligations       25,800            --
      Accretion of asset retirement obligation        45,400        45,400
      Non cash cummulative effect
        of accounting change                              --       293,800
      Noncash compensation                                --         9,600
                                                 ------------  ------------
NET CASH USED IN OPERATING ACTIVITIES               (132,900)      (79,400)

CASH FLOWS FROM INVESTING ACTIVITIES:
  Investment in affiliates                        (1,669,300)     (693,100)

CASH FLOWS FROM FINANCING ACTIVITES:
  Net activity on debt to affiliate                1,802,200       772,500
                                                 ------------  ------------

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>


                                      -5-
<PAGE>


                                  CRESTED CORP.

              NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

     1)  The  Condensed  Balance  Sheet  as  of  June 30, 2004 and the Condensed
Statements  of  Operations  for the three and six months ended June 30, 2004 and
2003,  and  Statements  of Cash Flows for the six months ended June 30, 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 adopted in 2003)
necessary to fairly present the financial position of the Company as of June 30,
2004  and  the results of operations for the three and six months ended June 30,
2004  and  2003  and cash flows for the six months ended June 30, 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  June  30,  2004  and 2003 are not necessarily indicative of the operating
results  for  the  full  year.

     3) Debt at June 30, 2004 and December 31, 2003, consists of debt payable to
the  Company's  parent  U.S. Energy Corp. ("USE") of $11,210,500 and $9,408,300,
respectively.  This  debt  has  been  incurred  as  a  result of USE funding the
Company's  portion  of joint operations and investments. The Company will either
have  to  retire this debt by the payment of cash, conveyance of property or the
issuance of additional shares of common stock to USE. USE has agreed not to call
the  note  prior  to the settlement of lawsuit with Nukem, Inc. in which USE and
the  Company  have  a  $20 million judgment. The Nukem case is currently pending
before  the  10th  Circuit  Court of Appeals. The Company and USE may enter into
some  interim  payment  of  a  portion  of  the  debt by the issuance of equity.

     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  had  no  outstanding stock options or warrants at December 31, 2003 and
June  30,  2004.  The Company's management has adopted an Incentive Stock Option
Plan  (ISOP).  2,000,000 shares of common stock are reserved for grant under the
ISOP. Approval of the ISOP will be sought from the shareholders at the September
2,  2004  Annual Meeting. No options have been granted under the ISOP as of June
30,  2004.

     5)  The  Company  has  uranium  properties  that are in a shut down mode in
central  Wyoming  for  which  it  is responsible for one half of the reclamation
expense.  The  preparation of financial statements in conformity with accounting
principles  generally  accepted  in  the  United  States  of  America  requires
management  to  make  estimates  for these reclamation expenses based on certain
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.

     The  Company  records the estimated fair value of the reclamation liability
on  its  shut  down  uranium  properties  as  of  the date that the liability is
incurred  with  a corresponding increase in the properties. Actual results could
differ  from  those  estimates.  The  reclamation  liabilities are reviewed each


                                      -6-
<PAGE>


quarter to determine whether estimates for the total asset retirement obligation
is  sufficient  to  complete  the  reclamation  work  required.

     The Company deducts actual funds expended from the accrued liability during
the  quarter  in  which  it  is  expended.  As a result of the Company having no
remaining  net  book value for the properties and has no economic benefits to be
received in future periods all changes in estimates are charged to operations in
the  quarter  in  which  they  are  recorded.

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

          Balance  December  31,  2003                    $1,053,300
          Addition  to  Liability                             25,800
          Liability  Settled                                    --
          Accretion  Expense  -  8%  discount  rate           45,400
                                                       -------------
          Balance  June  30,  2004                        $1,124,500
                                                          ==========

     These  reclamation  activities  are scheduled to be completed over the next
several  years.

     6)  The  Company  has  reviewed  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 July 30, 2003, the Company and USE 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  the Company and USE 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. The
10th  Circuit  Court  of  Appeals has scheduled oral arguments for September 27,
2004.  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 and six months ended June 30, 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 10-Q 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, whenever 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 through affiliates and its relationship with U.S.
Energy  Corp.  ("USE"), a majority shareholder of the Company, in a uranium mill
in  Southern  Utah;  uranium  properties  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
uranium  and  gold  properties are all in a shut down mode. All these businesses
are  operated  in  conjunction  with USE through a joint venture between the two
companies,  the  USECB  Joint  Venture ("USECC"). The Company accounts for USECC
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  estimated  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. The Company deducts actual funds expended
from  the  accrued  liability  during  the quarter in which it is expended. As a
result  of the Company having no remaining net book value for the properties and
has  no  economic  benefits  to  be  received  in  future periods all changes in
estimates  are  charged to operations in the quarter in which they are recorded.

CONTRACTUAL OBLIGATIONS
-----------------------

     There have been no material changes outside the ordinary course of business
in  the  Company's  contractual obligation from those discussed in the Company's
annual  report  on  Form  10-K  for  the  year  ended  December  31,  2003.


                                      -8-
<PAGE>


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 six months ended June 30, 2004, the Company incurred $1,802,200
in  additional  debt to 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. The
Company  also  relies  on  advances  from  USE to pay its ongoing administrative
costs.  The Company will either have to retire this debt by the payment of cash,
conveyance  of  property or the issuance of additional shares of common stock to
USE. USE has agreed not to call the note prior to the settlement of lawsuit with
Nukem,  Inc. in which USE and the Company have a $20 million judgment. The Nukem
case  is currently pending before the 10th Circuit Court of Appeals. The Company
and  USE  may  enter  into  some interim payment of a portion of the debt by the
issuance  of  equity.

     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  six  months ended June 30, 2004 and 2003, consumed
$132,900  and  $79,400,  respectively.  The  uses  of cash in operations was the
Company's  portion of audit fees, professional services in connection with audit
and  litigation  fees,  the settlement of asset retirement obligations and other
administrative expenditures. Cash consumed in investing activities of $1,699,300
at  June  30,  2004  and  $693,100  at  June  30,  2003 was used to increase the
Company's  investment  in  USECC  and  RMG.  Financing activities during the six
months  ended  June  30,  2004 and 2003, consisted of borrowings from USE in the
amounts  of  $1,802,200  and  $772,500,  respectively.

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 June 30, 2004, the total amount of the line
of  credit was available to the Company and USE and has been renewed to December
2004. The line of credit is used for short term working capital needs associated
with  operations.

     Funding for Rocky Mountain Gas ("RMG") drilling commitments are provided by
cash  that RMG has on hand and third party working interest owners. In addition,
the  Company, USE and RMG are seeking additional financing in the form of either
debt  or  equity. RMG also has a $25,000,000 Credit Agreement with an investment
banking  firm  for  the purchase of coalbed methane properties. During the first
quarter  of  2004,  RMG  used  $3,750,000  of  this credit agreement to purchase
coalbed  methane  producing properties in the Powder River Basin of Wyoming. All
net  proceeds  from  the property's projected production are swept to retire the
$3,750,000  obligation.

     The  Company's  cash  resources  at June 30, 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,


                                      -9-
<PAGE>


administration  and  capital  requirements.  It  is anticipated that during 2004
operations  will  not  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 Notice of Appeal to the 10th Circuit Court of Appeals on
October  3,  2003.  On  October  15,  2003 the Company and USE filed a Notice of
Cross-Appeal  to  the 10th Circuit Court of Appeals. Oral Arguments for the case
have  been  set  for  September  27, 2004. In the event that the Company and USE
prevail,  one half of the award belongs to the Company. A significant portion of
the  award  may  be  used  to  retire  indebtedness  to  USE.

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

     The  Company  and  USE jointly fund the holding costs of the Sheep Mountain
uranium  properties  (Wyoming);  the  Plateau  uranium property and mill (Utah);
costs  associated  with  their  joint  real estate, and the development of RMG's
coalbed  methane  gas  properties.

     RMG  has  drilling  commitments  during  2004  in the amount of $1,100,000.
Although  no  assurance can be given that the drilling will result in additional
production.  Management of RMG has made every effort to maximize the information
that  can  be  obtained  from  the  commitment  of  these  funds.

     The  Company  owes USE $11,210,500 as a result of USE funding operating and
investment  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 $100,000 will be spent on reclamation
of the Company's and USE's interests in uranium properties in Wyoming during the
last  six  months  of  2004.  The  estimated  reclamation costs on these Wyoming
uranium  properties  are  covered  by  a reclamation bond, which is secured by a
pledge  of  certain real estate assets. As the reclamation liability is reviewed
regularly  by  government  regulatory  agencies,  the actual final amount of the
liability  could  change.

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

     The  Company had no revenues during the three and six months ended June 30,
2004  and  2003.

     Costs  and  expenses  for  the  six months ended June 30, 2004 increased to
$204,100  compared  to  costs of $134,400 recognized during the six months ended
June  30, 2003. This increase came as a result of increased fees associated with
professional  services and a charge to earnings due to excess monies expended on
reclamation  from  those  planned  in  the  amount  of  $25,800.

     The  Company  recorded an equity loss from USECC of $788,700 during the six
months  ended  June 30, 2004 as compared to equity losses of $756,000 from USECC
and  $644,300 from RMG or a total of $1,400,300 during the six months ended June
30,  2003.  The  primary  reason  for the decrease in the equity losses was as a
result  of  the discontinuation of the recognition of RMG's equity losses due to
no  value  remaining  on  the  books  of  the Company for its investment in RMG.


                                      -10-
<PAGE>


     The  Company  recorded  $293,800  as  the  cumulative  effect of accounting
changes as a result of the adoption of SFAS 143 during the six months ended June
30, 2003. No similar transaction was recognized during the six months ended June
30,  2004.

     The  Company  recorded a net loss of $992,800 or $0.06 per share during the
six months ended June 30, 2004, as compared to a net loss of $1,828,500 or $0.11
per  share  for  the  six  months  ended  June  30,  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  six  months  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.


                                      -11-
<PAGE>


                           PART II. OTHER INFORMATION

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

     a.  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. Oral arguments are scheduled before a panel of
the  10th  Circuit  for  September  27,  2004.

     b.  The U. S. District Court of Colorado entered various orders in the case
of Phelps Dodge Corporation et. al. vs. Crested Corp. and U. S. Energy Corp. The
orders  addressed  three motions for partial summary judgment by Phelps Dodge as
follows: 1) granted Phelps Dodge's request for partial summary judgment that the
1999  merger  of  Cyprus  Amax  and  CAV  Corp. was not a sale that triggered an
obligation  of PD to pay $3.75 million to USECC.; 2) held in favor of USECC that
there are genuine issues of fact that require a trial on the issue whether USECC
must  accept  transfer  of the Mount Emmons Water Treatment Plant along with the
mining  properties,  and  3)  granted Phelps Dodge's request for partial summary
judgment  that  certain  USECC  counterclaims  for  breach  of  contract, unjust
enrichment,  negligence,  and  a  accounting  by  dismissed.

     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 no reports on Form 8-K for
the  quarter  ended  June  30,  2004.


                                      -12-
<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: August 13, 2004                       By:  /s/John  L.  Larsen
                                               -------------------------------
                                                 JOHN L. LARSEN,
                                                 CHAIRMAN and CEO




Date: August 13, 2004                       By:  /s/Robert Scott Lorimer
                                               -------------------------------
                                                 ROBERT SCOTT LORIMER
                                                 Principal Financial Officer and
                                                 Chief Accounting Officer


                                      -13-
<PAGE>