----

| x      | Quarterly                  report pursuant to section 13 or 15(d) of the Securities Exchange                  Act of                  1934  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|
|   | For                  the quarter ended September 30, 2007 or                                                                                |
|   |                                                                                                                                        |
| o      | Transition                  report pursuant to section 13 or 15(d) of the Securities Exchange                  Act of                  1934 |
|   | For                  the transition period from ___________ to                  ____________                                                |

| **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**  |

----

**APPLICABLE        ONLY TO ISSUERS INVOLVED IN BANKRUPTCY**

**PROCEEDINGS        DURING THE PRECEDING FIVE YEARS:**

| Class                                          |   | Outstanding                  Shares at November 13, 2007 |
|------------------------------------------------|--------|----------------------------------------------------------|
| Common                  stock, $.001 par value |   | 17,382,704                                               |

----

**CRESTED        CORP.**

**INDEX**

|                          |                                                                                       | Page                  No.     |
|-------------------------------|--------------------------------------------------------------------------------------------|-------------------------------|
| **PART                  I.**  | **FINANCIAL                  INFORMATION**                                                 |                          |
|                          |                                                                                       |                          |
| ITEM                  1.      | Financial                  Statements:                                                     |                          |
|                          |                                                                                       |                          |
|                          | Balance                  Sheets                                                            |                          |
|                          |    September                  30, 2007 and December 31, 2006 (Unaudited)    | 4-5                           |
|                          |                                                                                       |                          |
|                          | Statements                  of Operations (Unaudited)                                      |                          |
|                          |    Three                  and Nine Months Ended September 30, 2007 and 2006 | 6                             |
|                          |                                                                                       |                          |
|                          | Statements                  of Cash Flows (Unaudited)                                      |                          |
|                          |   Nine                  Months Ended September 30, 2007 and 2006                 | 7-8                           |
|                          |                                                                                       |                          |
|                          | Notes                  to Financial Statements (Unaudited)                                 | 9-17                          |
|                          |                                                                                       |                          |
| ITEM                  2.      | Management’s                  Discussion and Analysis of                             |                          |
|                          |    Financial                  Condition and Results of Operations           | 18-27                         |
|                          |                                                                                       |                          |
| ITEM                  3.      | Quantitative                  and Qualitative Disclosures About Market Risk           | 27                            |
|                          |                                                                                       |                          |
| ITEM                  4.      | Controls                  and Procedures                                                   | 27                            |
|                          |                                                                                       |                          |
| **PART                  II.** | **OTHER                  INFORMATION**                                                     |                          |
|                          |                                                                                       |                          |
| ITEM                  1.      | Legal                  Proceedings                                                         | 28-29                         |
|                          |                                                                                       |                          |
| ITEM                  1A.     | Risk                  Factors                                                              | 29-32                         |
|                          |                                                                                       |                          |
| ITEM                  2.      | Changes                  in Securities and Use of Proceeds                                 | 32                            |
|                          |                                                                                       |                          |
| ITEM                  3.      | Defaults                  upon Senior Securities                                           | 32                            |
|                          |                                                                                       |                          |
| ITEM                  4.      | Submission                  of Matters to a Vote of Security Holders                       | 33                            |
|                          |                                                                                       |                          |
| ITEM                  5.      | Other                  Information                                                         | 33                            |
|                          |                                                                                       |                          |
| ITEM                  6.      | Exhibits                  and Reports on Form 8-K                                          | 33                            |
|                          |                                                                                       |                          |
|                          | Signatures                                                                                 | 34                            |
|                          |                                                                                       |                          |
|                          | Certifications                                                                             | See                  Exhibits |

----

**PART        I.  FINANCIAL INFORMATION**

**ITEM        1.  Financial Statements**

| **CRESTED                    CORP.**                 |   |
|------------------------------------------------------|--------|
| **BALANCE                    SHEETS**                |   |
| **ASSETS**                                           |   |
| **(Unaudited)**                                      |   |
|                                                 |   |   |   |   |   |   |
|                                                 |   | September                    30, |   |   | December                    31, |   |
|                                                 |   | 2007 |   |   | 2006 |   |
| CURRENT                    ASSETS:                   |   |   |   |   |   |   |
| Cash                    and cash equivalents         |   | $ | 140,100 |   |   | $ | 3,236,600 |   |
| Marketable                    securities             |   |   |   |   |   |   |   |   |
| Held                    to maturity - treasury bills |   |   | 20,358,600 |   |   |   | -- |   |
| Available                    for sale                |   |   | 180,700 |   |   |   | -- |   |
| Accounts                    receivable               |   |   |   |   |   |   |   |   |
| Current                    receivable from affiliate |   |   | 198,200 |   |   |   | -- |   |
| Dissolution                    of subsidiaries       |   |   | 24,000 |   |   |   | -- |   |
| Reimbursement                    of costs            |   |   | -- |   |   |   | 72,200 |   |
| Deferred                    tax asset                |   |   | 126,800 |   |   |   | 7,442,500 |   |
|                                                 |   |   | 21,028,400 |   |   |   | 10,751,300 |   |
|                                                 |   |   |   |   |   |   |   |   |
| INVESTMENT                    IN AFFILIATE           |   |   | 12,412,600 |   |   |   | 4,280,400 |   |
|                                                 |   |   |   |   |   |   |   |   |
| DEFERRED                    TAX ASSET                |   |   | 304,700 |   |   |   | 91,300 |   |
|                                                 |   | $ | 33,745,700 |   |   | $ | 15,123,000 |   |
|                                                 |   |   |   |   |   |   |   |   |

----

| **CRESTED                    CORP.**                                          |   |
|-------------------------------------------------------------------------------|--------|
| **BALANCE                    SHEETS**                                         |   |
| **LIABILITIES                    AND SHAREHOLDERS' EQUITY**                   |   |
| **(Unaudited)**                                                               |   |
|                                                                          |   |   |   |   |   |   |
|                                                                          |   | September                    30, |   |   | December                    31, |   |
|                                                                          |   | 2007 |   |   | 2006 |   |
| CURRENT                    LIABILITIES:                                       |   |   |   |   |   |   |
| Current                    debt to affiliate                                  |   | $ | -- |   |   | $ | 13,277,200 |   |
| Liabilities                    held for sale                                  |   |   | -- |   |   |   | 1,204,900 |   |
| Income                    taxes payable                                       |   |   | 1,840,600 |   |   |   | -- |   |
| Other                    current liabilities                                  |   |   | 92,400 |   |   |   | -- |   |
|                                                                          |   |   | 1,933,000 |   |   |   | 14,482,100 |   |
|                                                                          |   |   |   |   |   |   |   |   |
| COMMITMENT                    TO FUND EQUITY INVESTEES                        |   |   | 215,600 |   |   |   | 215,600 |   |
|                                                                          |   |   |   |   |   |   |   |   |
| ASSET                    RETIREMENT OBLIGATION                                |   |   | 54,000 |   |   |   | 51,000 |   |
|                                                                          |   |   |   |   |   |   |   |   |
| COMMITMENTS                    AND CONTINGENCIES                              |   |   |   |   |   |   |   |   |
|                                                                          |   |   |   |   |   |   |   |   |
| FORFEITABLE                    COMMON STOCK, $.001 par value                  |   |   |   |   |   |   |   |   |
| 15,000                    shares issued, forfeitable until earned             |   |   | 10,100 |   |   |   | 10,100 |   |
|                                                                          |   |   |   |   |   |   |   |   |
| SHAREHOLDERS'                    EQUITY                                       |   |   |   |   |   |   |   |   |
| Preferred                    stock, $.001 par value;                          |   |   |   |   |   |   |   |   |
|  100,000                    shares authorized none issued or outstanding |   |   | -- |   |   |   | -- |   |
| Common                    stock, $.001 par value; 100,000,000 shares          |   |   |   |   |   |   |   |   |
| authorized;                    17,367,704 and 17,167,704                      |   |   |   |   |   |   |   |   |
| shares                    issued and outstanding, respectively                |   |   | 17,400 |   |   |   | 17,200 |   |
| Additional                    paid-in capital                                 |   |   | 12,186,200 |   |   |   | 11,844,400 |   |
| Unrealized                    loss                                            |   |   | (126,100 | ) |   |   | -- |   |
| Retained                    earnings (accumulated deficit)                    |   |   | 19,455,500 |   |   |   | (11,497,400 | ) |
|                                                                          |   |   | 31,533,000 |   |   |   | 364,200 |   |
|                                                                          |   | $ | 33,745,700 |   |   | $ | 15,123,000 |   |
|                                                                          |   |   |   |   |   |   |   |   |

----

| **STATEMENTS                    OF OPERATIONS**                         |   |
|-------------------------------------------------------------------------|--------|
| **(Unaudited)**                                                         |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   | Three                    months ended September 30, |   |   | Nine                    months ended September 30, |   |
|                                                                    |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
|  REVENUES:                                                         |   | $ | -- |   |   | $ | -- |   |   | $ | -- |   |   | $ | -- |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  COSTS                    AND EXPENSES:                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Accretion                    of asset retirement obligation       |   |   | 2,000 |   |   |   | 49,300 |   |   |   | 3,100 |   |   |   | 149,100 |   |
|  General                    and administrative                     |   |   | 36,100 |   |   |   | 198,800 |   |   |   | 304,600 |   |   |   | 348,200 |   |
|                                                                    |   |   | 38,100 |   |   |   | 248,100 |   |   |   | 307,700 |   |   |   | 497,300 |   |
| LOSS                    FROM CONTINUING OPERATIONS                      |   |   | (38,100 | ) |   |   | (248,100 | ) |   |   | (307,700 | ) |   |   | (497,300 | ) |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER                    INCOME AND (EXPENSES):                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest                                                          |   |   | 371,500 |   |   |   | 11,300 |   |   |   | 554,800 |   |   |   | 12,200 |   |
|  Dividends                                                         |   |   | -- |   |   |   | 27,000 |   |   |   | -- |   |   |   | 27,000 |   |
|  Loss                    on sale of marketable securities          |   |   | (1,080,200 | ) |   |   | (270,800 | ) |   |   | (4,498,800 | ) |   |   | (324,300 | ) |
|  Loss                    on exchange of Enterra Acquisition shares |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | (1,354,200 | ) |
|  Loss                    on valuation of derivatives               |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | (223,600 | ) |
|  Dissolution                    of investments                     |   |   | 148,200 |   |   |   | -- |   |   |   | 148,200 |   |   |   | -- |   |
|  Gain                    on sale of investment                     |   |   | -- |   |   |   | 3,794,800 |   |   |   | -- |   |   |   | 3,794,800 |   |
|  Litigation                    settlement                          |   |   | -- |   |   |   | (3,500,000 | ) |   |   | -- |   |   |   | (3,500,000 | ) |
|  Gain                    on sale of uranium assets                 |   |   | -- |   |   |   | -- |   |   |   | 55,905,400 |   |   |   | -- |   |
|  Gain                    (loss) on sale of assets                  |   |   | (115,900 | ) |   |   | -- |   |   |   | 284,100 |   |   |   | -- |   |
|  Gain                    (loss) on foreign exchange                |   |   | (36,600 | ) |   |   | -- |   |   |   | 214,700 |   |   |   | -- |   |
|                                                                    |   |   | (713,000 | ) |   |   | 62,300 |   |   |   | 52,608,400 |   |   |   | (1,568,100 | ) |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  INCOME                    (LOSS) BEFORE EQUITY LOSS,              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  AND                    INCOME TAXES                               |   |   | (751,100 | ) |   |   | (185,800 | ) |   |   | 52,300,700 |   |   |   | (2,065,400 | ) |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  EQUITY                    IN LOSS OF AFFILIATE                    |   |   | (789,500 | ) |   |   | (2,311,900 | ) |   |   | (4,517,000 | ) |   |   | (2,656,200 | ) |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  INCOME                    (LOSS) BEFORE                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  INCOME                    TAXES                                   |   |   | (1,540,600 | ) |   |   | (2,497,700 | ) |   |   | 47,783,700 |   |   |   | (4,721,600 | ) |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  INCOME                    TAXES:                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Current                    provision for                          |   |   | 743,500 |   |   |   | -- |   |   |   | (9,660,600 | ) |   |   | -- |   |
|  Deferred                    provision for                         |   |   | 267,400 |   |   |   | -- |   |   |   | (7,170,200 | ) |   |   | -- |   |
|                                                                    |   |   | 1,010,900 |   |   |   | -- |   |   |   | (16,830,800 | ) |   |   | -- |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  NET                    INCOME (LOSS)                              |   | $ | (529,700 | ) |   | $ | (2,497,700 | ) |   | $ | 30,952,900 |   |   | $ | (4,721,600 | ) |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  PER                    SHARE DATA                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  NET                    INCOME (LOSS) PER SHARE, BASIC             |   | $ | (0.03 | ) |   | $ | (0.15 | ) |   | $ | 1.80 |   |   | $ | (0.28 | ) |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  NET                    INCOME (LOSS) PER SHARE, DILUTED           |   | $ | (0.03 | ) |   | $ | (0.15 | ) |   | $ | 1.74 |   |   | $ | (0.28 | ) |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  BASIC                    WEIGHTED AVERAGE                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  SHARES                    OUTSTANDING                             |   |   | 17,295,965 |   |   |   | 17,149,298 |   |   |   | 17,210,927 |   |   |   | 17,149,298 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  DILUTED                    WEIGHTED AVERAGE                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  SHARES                    OUTSTANDING                             |   |   | 17,295,965 |   |   |   | 17,149,298 |   |   |   | 17,743,107 |   |   |   | 17,149,298 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **CRESTED                    CORP.**                                      |   |
|---------------------------------------------------------------------------|--------|
| **STATEMENTS                    OF CASH FLOWS**                           |   |
| **(Unaudited)**                                                           |   |
|                                                                      |   |   |   |   |   |   |
|                                                                      |   | For                    nine months ended September 30, |   |
|                                                                      |   | 2007 |   |   | 2006 |   |
| CASH                    FLOWS FROM OPERATING ACTIVITIES:                  |   |   |   |   |   |   |
| Net                    income (loss)                                      |   | $ | 30,952,900 |   |   | $ | (4,721,600 | ) |
| Adjustments                    to reconcile net income (loss) to net cash |   |   |   |   |   |   |   |   |
| used                    in by operating activities:                       |   |   |   |   |   |   |   |   |
| Equity                    in loss of affiliate                            |   |   | 4,517,000 |   |   |   | 2,656,200 |   |
| Loss                    on exchange of Enterra units                      |   |   | -- |   |   |   | 1,354,200 |   |
| Loss                    on sale of marketable securities                  |   |   | 4,498,800 |   |   |   | 324,300 |   |
| Proceeds                    from sale of trading securities               |   |   | -- |   |   |   | -- |   |
| Gain                    on sale of assets                                 |   |   | (284,100 | ) |   |   | -- |   |
| Gain                    on sale of assets to sxr                          |   |   | (55,905,400 | ) |   |   | -- |   |
| Gain                    on foreign exchange rates                         |   |   | (214,700 | ) |   |   | -- |   |
| Noncash                    interest income                                |   |   | (358,600 | ) |   |   | -- |   |
| Provision                    for income taxes                             |   |   | 7,170,000 |   |   |   | -- |   |
| Income                    taxes payable                                   |   |   | 1,812,900 |   |   |   | -- |   |
| Gain                    on sale of Pinnacle Gas                           |   |   | -- |   |   |   | (3,794,800 | ) |
| Noncash                    compensation                                   |   |   | 169,500 |   |   |   | 195,800 |   |
| Change                    in valuation of derivatives                     |   |   | -- |   |   |   | 223,600 |   |
| Accretion                    of asset retirement obligation               |   |   | 2,100 |   |   |   | 149,100 |   |
| Change                    in accounts receivable                          |   |   | 48,200 |   |   |   | -- |   |
| Net                    changes in assets and liabilities                  |   |   | -- |   |   |   | (27,800 | ) |
| NET                    CASH USED IN OPERATING ACTIVITIES                  |   |   | (7,591,400 | ) |   |   | (3,641,000 | ) |
|                                                                      |   |   |   |   |   |   |   |   |
| CASH                    FLOWS FROM INVESTING ACTIVITIES:                  |   |   |   |   |   |   |   |   |
| Proceeds                    from sale of marketable securities            |   |   | 45,362,000 |   |   |   | 2,991,000 |   |
| Proceeds                    from the sale of assets                       |   |   | 25,000 |   |   |   | 4,830,000 |   |
| Investment                    in affiliate                                |   |   | (12,030,200 | ) |   |   | (3,071,300 | ) |
| Investment                    in treasury bills                           |   |   | (20,000,000 | ) |   |   | -- |   |
| NET                    PROVIDED BY INVESTING ACTIVITIES                   |   |   | 13,356,800 |   |   |   | 4,749,700 |   |
|                                                                      |   |   |   |   |   |   |   |   |
| CASH                    FLOWS FROM FINANCING ACTIVITIES:                  |   |   |   |   |   |   |   |   |
| Issuance                    of stock                                 |   |   | 342,000 |   |   |   | -- |   |
| Income                    tax benefit from stock option exercise          |   |   | 27,700 |   |   |   | -- |   |
| Net                    activity on debt to affiliate                      |   |   | (9,231,600 | ) |   |   | 3,317,800 |   |
| NET                    CASH (USED IN) PROVIDED BY                         |   |   |   |   |   |   |   |   |
| FINANCING                    ACTIVITIES                                   |   |   | (8,861,900 | ) |   |   | 3,317,800 |   |
|                                                                      |   |   |   |   |   |   |   |   |
| NET                    INCREASE IN                                        |   |   |   |   |   |   |   |   |
| CASH                    AND CASH EQUIVALENTS                              |   |   | (3,096,500 | ) |   |   | 4,426,500 |   |
|                                                                      |   |   |   |   |   |   |   |   |
| CASH                    AND CASH EQUIVALENTS AT                           |   |   |   |   |   |   |   |   |
| BEGINNING                    OF PERIOD                                    |   |   | 3,236,600 |   |   |   | 95,100 |   |
|                                                                      |   |   |   |   |   |   |   |   |
| CASH                    AND CASH EQUIVALENTS AT                           |   |   |   |   |   |   |   |   |
| END                    OF PERIOD                                          |   | $ | 140,100 |   |   | $ | 4,521,600 |   |
|                                                                      |   |   |   |   |   |   |   |   |

----

| **CRESTED                    CORP.**                           |   |
|----------------------------------------------------------------|--------|
| **STATEMENTS                    OF CASH FLOWS**                |   |
| **(Unaudited)**                                                |   |
|                                                           |   |   |   |   |   |   |
|                                                           |   | For                    nine months ended September 30, |   |
|                                                           |   | 2007 |   |   | 2006 |   |
| SUPPLEMENTAL                    DISCLOSURES:                   |   |   |   |   |   |   |
| Interest                    paid                               |   | $ | -- |   |   | $ | -- |   |
|                                                           |   |   |   |   |   |   |   |   |
| Income                    tax paid                             |   | $ | 7,820,000 |   |   | $ | -- |   |
|                                                           |   |   |   |   |   |   |   |   |
| NONCASH                    INVESTING AND FINANCING ACTIVITIES: |   |   |   |   |   |   |   |   |
| Exchange                    of Enterra Acquisition Shares for  |   |   |   |   |   |   |   |   |
| Enterra                    Trust Units                         |   | $ | -- |   |   | $ | 3,315,300 |   |
|                                                           |   |   |   |   |   |   |   |   |
| Unrealized                    loss/gain                        |   | $ | 126,100 |   |   | $ | -- |   |
|                                                           |   |   |   |   |   |   |   |   |

----

**CRESTED              CORP.**

**1)      Basis        of Presentation**

**2)      Recent        Accounting Pronouncements**

**FIN        48   **

**FAS        157   **

----

**CRESTED                CORP.**

**SAB          108   **
*Considering the Effects          of Prior Year Misstatements when Quantifying Misstatements in Current Year          Financial Statements *

**S**
**FAS        159   **
*The        Fair Value Option for Financial Assets and Financial Liabilities *

**3)      Marketable        Securities**

|                                                 |   |   |    |   |   |       |    | Unrealized  |   |
|------------------------------------------------------|--------|--------|---------|--------|--------|------------|---------|-------------|--------|
|                                                 |   | Cost   |    |   | Value  |       |    | Gain/(Loss) |   |
|                                                 |   |   |    |   |   |       |    |        |   |
| Held                    to maturity - treasury bills |   |   |    |   | $      | 20,358,600 |    |        |   |   |
|                                                 |   |   |    |   |   |       |    |        |   |   |
| Available                    for sale securities     |   |   |    |   |   |       |    |        |   |   |
| Kobex                    shares                      |   | $      | 375,000 |   |   | $          | 180,700 |        |   | $ | (194,300 | ) |
|                                                 |   |   |    |   |   |       |    |        |   |   |   |   |

**4)      Debt**

----

**CRESTED              CORP.**

**5)      Other        Comprehensive Income (Loss)**

|                                                        |                                     |   | Nine                    months ending September 30, |   |
|-------------------------------------------------------------|------------------------------------------|--------|-----------------------------------------------------|--------|
|                                                        |                                     |   | 2007                                                |   |   | 2006 |   |
| Net                    gain/(loss)                          |                                     | $      | 30,952,900                                          |   |   | $ | (4,721,600 | ) |
|                                                        |                                     |   |                                                |   |   |   |   |   |   |
| Comprehensive                    loss from the              |                                     |   |                                                |   |   |   |   |   |
| unrealized                    loss on marketable securities |                                     |   | (194,300                                            | )      |   |   | -- |   |
|                                                        |                                     |   |                                                |   |   |   |   |   |   |
| Deferred                    income taxes on                 |                                     |   |                                                |   |   |   |   |   |
|                                                        | marketable                    securities |   |                                                | 68,200 |   |   |   | -- |   |
|                                                        |                                     |   |                                                |   |   |   |   |   |   |
| Comprehensive                    gain/(loss)                |                                     | $      | 30,826,800                                          |   |   | $ | (4,721,600 | ) |
|                                                        |                                     |   |                                                |   |   |   |   |   |   |

**6)      Earnings        Per Share**

**7)      Stock        Based Compensation**

----

**CRESTED              CORP.**

**8)      Income        Taxes**

|                                                                                               |   | Three                    Months       |       |   | Nine                    Months        |   |
|----------------------------------------------------------------------------------------------------|--------|---------------------------------------|------------|--------|---------------------------------------|--------|
|                                                                                               |   | Ended                                 |       |   | Ended                                 |   |
|                                                                                               |   | September                    30, 2007 |       |   | September                    30, 2007 |   |
| Consolidated                    book income before income tax                                      |   | $                                     | (1,540,600 | )      |                                  | $      | 47,783,700 |   |
| Prior                    year true-up and rate change                                              |   | $                                     | (203,000   | )      |                                  | $      | (203,000 | ) |
| Permanent                    differences                                                           |   | $                                     | 212,800    |   |                                  | $      | 7,400 |   |
| Taxable                    income before temporary differences                                     |   | $                                     | (1,530,800 | )      |                                  | $      | 47,588,100 |   |
|                                                                                               |   |                                  |       |   |                                  |   |   |   |
| Expected                    federal income tax expense (benefit)35%                                |   | $                                     | (535,800   | )      |                                  | $      | 16,655,800 |   |
|                                                                                               |   |                                  |       |   |                                  |   |   |   |
| Deferred                    income tax expense (benefit)                                           |   | $                                     | (267,300   | )      |                                  | $      | 7,170,200 |   |
|       Current                    expense (benefit)                   |   |                                  | (268,500   | )      |                                  | $      | 9,485,600 |   |
| Total                    federal income tax expense (benefit)                                      |   |                                  | (535,800   | )      |                                  | $      | 16,655,800 |   |
| Current                    state income tax expense net of                                         |   |                                  |       |   |                                  |
|           federal                    tax benefit |   |                                  | (475,000   | )      |                                  |   | 175,000 |   |
|        Total                    provision (benefit)             |   | $                                     | (1,010,800 | )      |                                  | $      | 16,830,800 |   |
|                                                                                               |   |                                  |       |   |                                  |   |   |   |

|                                                  |   | September                    30, |    |   | December                    31, |   |
|-------------------------------------------------------|--------|----------------------------------|---------|--------|---------------------------------|--------|
|                                                  |   | 2007                             |    |   | 2006                            |   |
| Deferred                    tax assets:               |   |                             |    |   |                            |   |
| Deferred                    compensation              |   | $                                | 181,400 |   |                            | $      | 81,000 |   |
| Accrued                    reclamation                |   |                             | 18,900  |   |                            |   | 439,600 |   |
| Allowances                    for bad debts           |   |                             |    |   |                            |   | - |   |
| Tax                    basis in excess of book        |   |                             | 104,400 |   |                            |   | - |   |
| Net                    operating loss carry forwards  |   |                             |    |   |                            |   | 6,976,600 |   |
| Tax                    credits (AMT credit carryover) |   |                             |    |   |                            |   | 44,200 |   |
| Non-deductible                    reserves and other  |   |                             | 126,800 |   |                            |   |   |   |
| Total                    deferred tax assets          |   |                             | 431,500 |   |                            |   | 7,541,400 |   |
|                                                  |   |                             |    |   |                            |   |   |   |
| Deferred                    tax liabilities:          |   |                             |    |   |                            |   |   |   |
|                                                  |   |                             |    |   |                            |   |   |   |
| Book                    basis in excess of tax basis  |   |                             |    |   |                            |   |   |   |
| Accrued                    reclamation                |   |                             |    |   |                            |   |   |   |
| Non-deductible                    reserves and other  |   |                             |    |   |                            |   | 7,600 |   |
| Total                    deferred tax liabilities     |   |                             | 0       |   |                            |   | 7,600 |   |
|                                                  |   |                             |    |   |                            |   |   |   |
| Net                    deferred tax assets            |   |                             | 431,500 |   |                            |   | 7,533,800 |   |
| Valuation                    allowance                |   |                             |    |   |                            |   |   |   |
| Net                    deferred tax assets            |   | $                                | 431,500 |   |                            | $      | 7,533,800 |   |
|                                                  |   |                             |    |   |                            |   |   |   |

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**CRESTED              CORP.**

**9)      Sale        of Marketable Securities**

**10)     Asset        Retirement Obligations**

----

**CRESTED              CORP.**

| Balance                    December 31, 2006  |   | $      | 51,000 |   |
|-----------------------------------------------|--------|--------|--------|--------|
| Revaluation                    of liability   |   |   | 900    |   |
| Accretion                    Expense          |   |   | 2,100  |   |
| Balance                    September 30, 2007 |   | $      | 54,000 |   |
|                                          |   |   |   |   |

**11)    Merger        Agreement**

**12)    Real        Estate Investment**

----

**CRESTED              CORP.**

**13)    Sutter        Gold Mining, Inc.**

**14)    Uranium        One Asset Purchase Agreement Closing**

----

**CRESTED              CORP.**

| **Revenues                    from sale of assets to Uranium One** |   |   |       |
|--------------------------------------------------------------------|--------|--------|------------|
| Release                    of refundable deposit                   |   | $      | 375,000    |   |
| Relief                    from Asset Retirement Obligations        |   |   | 3,729,200  |   |
| sxr                    Uranium One purchase of UPC position        |   |   | 2,510,500  |   |
| Reimbursable                    Costs                              |   |   | 792,600    |   |
| Receipt                    of Uranium One common stock             |   |   | 49,700,300 |   |
|                                                               |   |   |       |   |
|                                                               |   |   | 57,107,600 |   |
|                                                               |   |   |       |   |
| **Cost                    of sale of assets to Uranium One**       |   |   |       |   |
|                                                               |   |   |       |   |
| Reimbursable                    Costs                              |   |   | 1,200,500  |   |
| Pro-ration                    of property taxes                    |   |   | 1,700      |   |
|                                                               |   |   |       |   |
|                                                               |   |   |       |   |
|                                                               |   |   | 1,202,200  |   |
|                                                               |   |   |       |   |
| Net                    gain before income taxes                    |   |   | 55,905,400 |   |
|                                                               |   |   |       |   |
| Provision                    for income taxes                      |   |   | 21,395,400 |   |
|                                                               |   |   |       |   |
| Net                    gain on sale of assets to Uranium One       |   | $      | 34,510,000 |   |
|                                                               |   |   |       |   |

**15)    Payment        of Cash Bonus and Related Matters**

----

**CRESTED              CORP.**

**16)    Lucky        Jack Molybdenum Property – Kobex Resources Ltd.**

**17)    Subsequent        Event**

----

**CRESTED        CORP.**

**ITEM        2.  Management's Discussion and Analysis of Financial Condition and        Results of Operations.**

**Forward        Looking Statements**

**Overview        of Business**

**Recent        Developments**

**Sale        of Uranium Assets**

----

**Lucky        Jack Molybdenum Property – Kobex Resources Ltd.**

**Merger        Agreement**

----

**Remington        Village**

**Mineral        Prices**

----

**Results        of Operations**

**Quarter        and Nine Months Ended September 30, 2007 compared with the Quarter and Nine        Months Ended September 30, 2006**

----

**Liquidity        and Capital Resources**

----

**Capital        Resources**

----

**Capital        Requirements                                                      **

----

**Contractual        Obligations**

----

**Critical        Accounting Policies**

*Investments        - *

*Cash        Equivalents - *

*Marketable        Securities - *

*Fair        Value of Financial Instruments - *

*Stock        Based Compensation - *

*Asset        Retirement Obligations*

*Liabilities        Held for Sale*

*Revenue        Recognition*

----

*Income        Taxes*

*Use        of Accounting Estimates*

**ITEM        3.  Quantitative and Qualitative Disclosures About Market        Risk**

**ITEM        4.  Controls and Procedures**

----

**PART        II.  OTHER INFORMATION**

**ITEM        1.  Legal Proceedings**

***Water        Rights Litigation – Lucky Jack Molybdenum        Property***

| *1.  * | *Concerning                  the Application for Water Rights of Virgil and Lee Spann Ranches,                  Inc.*, *Case No. 03CW033, 03CW034, 03CW035, 03CW036 and                  03CW037.*  These related cases involve the Spann Ranches,                  Inc.’s Water Court applications to change the point of diversion through                  alternative points for the purpose of rotating a portion of their                  senior                  water rights between ditches to maximize beneficial use in the                  event of a                  major downstream senior call.  MEMCO filed Statements of                  Opposition to ensure that the final decrees to be issued by the                  Water                  Court contain terms and conditions sufficient to protect MEMCO’s water                  rights from material injury.  These cases are pending, and the                  Company and USE are awaiting proposed decrees from Applicant Spann                  Ranches, Inc. for consideration. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *2.  * | *Concerning                  the Application for Water Rights of the Town of Crested                  Butte,**Case No. 02CW63.*  This case involved an                  application filed by the Town of Crested Butte to provide for an                  alternative point of diversion.  MEMCO filed a Statement of                  Opposition to ensure that the final decree to be issued by the                  Water Court                  contains terms and conditions sufficient to protect MEMCO’s water rights                  from material injury.  The Town of Crested Butte and USECC                  reached a settlement and signed a Stipulation to protect USECC’s water                  rights pursuant to a proposed final decree.  This Stipulation                  has been signed by the Water Referee and was approved by the Water                  Court                  on September 5, 2007.  This case is now                  closed. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *3.  * | *Concerning                  the Application of the**United States of America**in the**Gunnison** **River**,**Gunnison** **County**,* *Case                  No. 99CW267*.  This case involves an application filed by                  the United States of America to appropriate 0.033 cubic feet per                  second of                  water for wildlife use and for incidental irrigation of riparian                  vegetation at the Mt. Emmons Iron Bog Spring, located in the vicinity                  of                  the Lucky Jack property.  MEMCO filed a Statement of Opposition                  to protect proposed mining operations against any adverse impacts                  by the                  water requirements of the Iron Bog on such operations.  This                  case is pending while the parties attempt to reach a settlement                  on the                  proposed decree terms and                  conditions. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| *4.  * | *Concerning                  the Application for Water Rights of the United States of America                  for                  Quantification of Reserved Right for Black Canyon of Gunnison National                  Park*, *Case No. 01CW05.*  This case involves an                  application filed by the United States of America to make absolute                  conditional water rights claimed in the Gunnison River in relation                  to the                  Black Canyon of the Gunnison National Park for, and to quantify                  in-stream                  flows for the protection and reproduction of fish and to preserve                  the                  recreational, scenic and aesthetic conditions.  MEMCO and over                  350 other parties filed Statements of Opposition to protect their                  existing                  water rights.  On August 3, 2007, the Parties signed a                  Stipulation recognizing USECC and most other Opposers position                  is that the                  flows claimed by the United States should be subordinated to the                  historical operations of the federally owned and operated Aspinall                  Unit,                  and are subject to the provisions contained in the Aspinall Unit                  Subordination Agreement between the federal government and water                  districts                  which protect junior water users in the Upper Gunnison River                  Basin.  This Stipulation has been submitted to the Water Court                  for approval.   USECC’s water rights will be protected by                  this Stipulation and there is no need for USECC to be an active                  participant in future proceedings in this case, which will involve                  quantification of the in-stream flows claimed the United States                  of America                  for the Black Canyon Park. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Sutter        Gold Mining Inc. - Quiet Title Litigation**

*USECC Gold Limited Liability Company vs. Nevada-Wabash        Mining Company, et al*

**ITEM        1A.      Risk Factors**

**The        following risk factors should be considered in evaluating the information        in        this Form 10-Q.  The reader should also consider risk factors        discussed in our annual report for the year ended December 31, 2006 filed        on        Form 10-K.**

***Risks        Associated with Entry into New Areas of Business***

----

***Possible        Need for Added Capital***
***-  ***

***No        recurring business revenues and uncertainties associated with transaction-based        revenues***
***-***

***Uncertainties        in the value of the mineral properties***

----

***Compliance        with environmental regulations ma***
***y be        costly***

***We        depend on key personnel***

***We        will seek additional business        activities***
** **
**- **

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***We        may be classified as an inadvertent investment company***

***Proposed        Federal Legislation***

**ITEM        2.                   Changes        in Securities and Use of Proceeds**

**ITEM        3.                   Defaults        upon Senior Securities**

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**ITEM        4.                   Submission        of Matters to a Vote of Security Holders**

**ITEM        5.                   Other        Information**

**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 September 30, 2007.  The events reported                  were as follows: |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                       |   |
|   |   | 1.                                                                                                                                                                                                                         | The                  report filed on July 30, 2007, under Item 8.01 referenced the final                  sale                  of the shares of sxr Uranium One. |
|   |   |                                                                                                                                                                                                                       |   |
|   |   | 2.                                                                                                                                                                                                                         | The                  report filed on August 6, 2007, under Item 1.01 referenced the                  amendment                  to the plan and agreement of merger of Crested Corp. into U.S.                  Energy                  Corp. |
|   |   |                                                                                                                                                                                                                       |   |

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**SIGNATURES**

|                                     |   | CRESTED                  CORP.                   |
|------------------------------------------|--------|--------------------------------------------------|
|                                     |   | (Company)                                        |
|                                     |   |                                             |
|                                     |   |                                             |
|                                     |   |                                             |
| Date:                  November 13, 2007 | By:    |  /s/Harold                  F. Herron       |
|                                     |   | HAROLD                  F. HERRON,               |
|                                     |   | Co-Chairman                  and President       |
|                                     |   |                                             |
|                                     |   |                                             |
|                                     |   |                                             |
|                                     |   |                                             |
| Date:                  November 13, 2007 | By:    |  /s/Robert                  Scott Lorimer   |
|                                     |   | ROBERT                  SCOTT LORIMER            |
|                                     |   | Principal                  Financial Officer and |
|                                     |   | Chief                  Accounting Officer        |

----