FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

[X]     Quarterly  report  pursuant  to  section  13  or 15(d) of the Securities
        Exchange  Act  of  1934
        For  the  fiscal  quarter  ended  June  30,  2003  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    X     NO
                                                    ---         ---

                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, 2003
---------------------------------            -----------------------------------
Common stock, $0.001 par value                                 17,133,098 Shares


                                        1
<PAGE>
                                  CRESTED CORP.

                                      INDEX

                                                                 Page  No.
PART  I.     FINANCIAL  INFORMATION

ITEM  1.     Financial  Statements.

             Condensed  Balance  Sheets
                 June  30,  2003  and  December  31,  2002. . . . . . . . . . .3

             Condensed  Statements  of  Operations
                 Three and Six Months Ended June 30, 2003 and 2002. . . . . . .4

             Condensed  Statements  of  Cash  Flows
                 Six Months Ended June 30, 2003 and 2002. . . . . . . . . . . .5

             Notes  to  Condensed  Financial  Statements. . . . . . . . . . .6-8

ITEM  2.     Management's  Discussion  and  Analysis  of
                 Financial Condition and Results of Operations . . . . . . .9-11

ITEM  4.     Controls  and  Procedures. . . . . . . . . . . . . . . . . . .11-12

PART  II.    OTHER  INFORMATION

ITEM  1.     Legal  Proceedings. . . . . . . . . . . . . . . . . . . . . . . .13

ITEM  6.     Exhibits  and  Reports  on  Form  8-K . . . . . . . . . . . . . .13

             Signatures. . . . . . . . . . . . . . . . . . . . . . . . . . . .14

             Certifications . . . . . . . . . . . . . . . . . . . . . . . .15-18


                                        2
<PAGE>
                          PART I. FINANCIAL INFORMATION

ITEM  1.   FINANCIAL  STATEMENTS

                                  CRESTED CORP.

                            CONDENSED BALANCE SHEETS
                                     ASSETS
<TABLE>
<CAPTION>


                                                      June 30,      December 31,
<S>                                                 <C>             <C>
                                                        2003            2002
                                                    ------------   -------------
                                                    (Unaudited)

CURRENT ASSETS:
  Cash and cash equivalents                       $       3,300   $       3,300

INVESTMENTS IN AFFILIATES                             5,169,500       5,876,600

PROPERTIES AND EQUIPMENT                                896,800         896,800
  Less accumulated depreciation,
  depletion and amortization                           (886,800)       (886,800)
                                                  --------------  --------------
                                                         10,000          10,000
                                                  --------------  --------------
                                                  $   5,182,800   $   5,889,900
                                                  ==============  ==============


                      LIABILITIES AND SHAREHOLDERS' DEFICIT

                                                      June 30,      December 31,
                                                        2003            2002
                                                  --------------  --------------
CURRENT LIABILITIES:
  Current debt to affiliate                           9,326,400       8,553,900

COMMITMENT TO FUND EQUITY INVESTEES                     215,600         215,600

ASSET RETIREMENT OBLIGATION                           1,087,600         748,400

COMMITMENTS AND CONTINGENCIES

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

SHAREHOLDERS' DEFICIT
  Common stock, $.001 par value; unlimited shares
    authorized; 17,115,137 and 17,099,276
    shares issued and outstanding                        17,200          17,200
  Additional paid-in capital                         11,804,800      11,795,200
  Accumulated deficit                               (17,278,900)    (15,450,500)
                                                  --------------  --------------
TOTAL SHAREHOLDERS' DEFICIT                          (5,456,900)     (3,638,100)
                                                  --------------  --------------
                                                  $   5,182,800   $   5,889,900
                                                  ==============  ==============
</TABLE>
            See accompanying notes to condensed financial statements
                                        3
<PAGE>
                                  CRESTED CORP.

                       CONDENSED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                 Three Months Ended         Six Months Ended
                                       June 30,                 June 30,
                              ------------------------ -------------------------
                                   2003        2002        2003         2002
                              ------------- ---------- ------------ ------------
<S>                                           <C>           <C>           <C>           <C>
                              (Unaudited)  (Unaudited) (Unaudited)  (Unaudited)
REVENUES:                     $       --   $      --   $      --    $      --

COSTS AND EXPENSES:
  Accretion of asset retirement
  obligation                        22,700        --       45,400          --
  General and administrative        52,500     37,400      89,000        75,600
                              ------------- ---------- ------------ ------------
                                    75,200     37,400      134,400       75,600
                              ------------- ---------- ------------ ------------

LOSS BEFORE EQUITY LOSS, PROVISION
  FOR INCOME TAXES AND CUMMULATIVE
  EFFECT OF ACCOUNTING CHANGE      (75,200)   (37,400)    (134,400)     (75,600)

EQUITY IN LOSS OF AFFILIATES    (1,026,800)  (505,800)  (1,400,300)  (1,008,600)
                              ------------- ---------- ------------ ------------

LOSS BEFORE PROVISION FOR INCOME
  TAXES AND CUMMULATIVE
  EFFECT OF ACCOUNTING CHANGE   (1,102,000)  (543,200)  (1,534,700)  (1,084,200)

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

LOSS BEFORE CUMMULATIVE EFFECT
  OF ACCOUNTING CHANGE          (1,102,000)  (543,200)  (1,534,700)  (1,084,200)

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

NET LOSS                      $ (1,102,000) $(543,200) $(1,828,500) $(1,084,200)
                              ============= ========== ============ ============

PER SHARE DATA
NET LOSS PER SHARE,
BASIC AND DILUTED
  FROM CONTINUED OPERATIONS   $      (0.06) $   (0.03) $     (0.09) $     (0.06)
  FROM EFFECT OF ACCOUNTING
  CHANGE                            *          *             (0.02)      *
  BASIC AND DILUTED           $      (0.06) $   (0.03) $     (0.11) $     (0.06)
                              ============= ========== ============ ============

BASIC WEIGHTED AVERAGE
  SHARES OUTSTANDING            17,099,276  17,074,325  17,116,634   17,075,320
                              ============= ========== ============ ============

DILUTED WEIGHTED AVERAGE
  SHARES OUTSTANDING            17,099,276  17,074,325  17,116,634   17,075,320
                              ============= ========== ============ ============

* Less than $0.01 per share
</TABLE>
            See accompanying notes to condensed financial statements
                                        4
<PAGE>
                                  CRESTED CORP.

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

                                                           Six months ended
                                                       June 30,        June 30,
                                                    -------------  -------------
                                                         2003           2002
                                                    -------------  -------------
<S>                                              <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                          $ (1,828,500)  $ (1,084,200)
  Adjustments to reconcile net loss to net cash
    used in by operating activities:
      Equity in loss of affiliates                     1,400,300      1,008,600
      Accretion of asset retirement obligation            45,400           --
      Non cash cummulative effect
        of accounting change                             293,800           --
      Noncash compensation                                 9,600         11,400
      Net changes in assets and liabilities                 --             (100)
                                                    -------------  -------------
NET CASH USED IN OPERATING ACTIVITIES                    (79,400)       (64,300)

CASH FLOWS FROM INVESTING ACTIVITIES:
  Investment in affiliates                              (693,100)    (1,116,500)

CASH FLOWS FROM FINANCING ACTIVITES:
  Net activity on debt to affiliate                      772,500      1,180,900
                                                    -------------  -------------

NET INCREASE IN
  CASH AND CASH EQUIVALENTS                                 --              100

CASH AND CASH EQUIVALENTS AT
  BEGINNING OF PERIOD                                      3,300          3,200
                                                    -------------  -------------

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   $       --
                                                    =============  =============

  Net noncash change in reclamation liabilities     $    316,500   $       --
                                                    =============  =============
</TABLE>
            See accompanying notes to condensed financial statements
                                        5
<PAGE>
                                  CRESTED CORP.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS

     1)  The  Condensed  Balance  Sheet  as  of  June 30, 2003 and the Condensed
Statements  of Operations and Cash Flows for the three and six months ended June
30,  2003  and  2002,  have  been  prepared  by  the  Company without audit. The
Condensed  Balance Sheet at December 31, 2002, has been derived from the audited
financial  statements included in the Company's Annual Report on Form 10-K/A for
the period then ended. In the opinion of the Company, the accompanying financial
statements contain all adjustments (consisting of only normal recurring accruals
except  for  the  cumulative effect of a change in accounting principle in 2003)
necessary to fairly present the financial position of the Company as of June 30,
2003  and  the results of operations and cash flows for the three and six months
ended  June  30,  2003  and  2002.

     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,  2002  Form  10-K/A.  The results of operations for the
periods  ended  June  30,  2003  and  2002 are not necessarily indicative of the
operating  results  for  the  full  year.

     3) Debt at June 30, 2003 and December 31, 2002, consists of debt payable to
the  Company's  parent  U.S.  Energy Corp. ("USE") of $9,326,400 and $8,553,900,
respectively

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

     5)  Certain  reclassifications  have  been  made  in  the December 31, 2002
financial  statements  to  conform to the classifications used in June 30, 2003.

     6)  Although  the  Company  does not have an Incentive Stock Option Plan in
place  as of June 30, 2003, it will be proposing one for shareholder approval at
its  next  annual  meeting.  In  October  1995,  the  FASB  issued SFAS No. 123,
"Accounting  for Stock-Based Compensation", which requires the Company to record
non-employee  stock-based compensation at fair value. In December 2002, the FASB
issued  SFAS  No. 148, "Accounting for Stock Based Compensation - Transition and
Disclosure". The Company has adopted the disclosure requirements of SFAS No. 148
but  has  elected  to continue to record employee compensation expense utilizing
the  intrinsic  value  method  permitted under Accounting Principles Board (APB)
Opinion  No.  25,  "Accounting  for Stock Issued to Employees." The Company will
account  for  its employees' stock based compensation plan under APB Opinion No.
25  and  its  related  interpretations.  Accordingly,  any deferred compensation
expense  will  be  recorded  for stock options based on the excess of the market
value  of  the  common stock on date the options were granted over the aggregate
exercise price of the options. This deferred compensation will be amortized over
the  over  the  vesting  period of each option. There were no options granted to
employees  during  either  the  three  or  six  months  ended  June  30,  2003.

     7)  The Company has mine properties that are in a shut down mode in central
Wyoming  for  which  it  is responsible for one half of the reclamation expense.
These  reclamation  activities are scheduled to be completed over the next seven
years.  The  Company  cannot  predict  the  exact  amount  of  such future asset
retirement  obligations.  Estimated  future  reclamation  costs are based on the
Company's  best  engineering  estimates  considering  legal  and  regulatory
requirements.


                                        6
<PAGE>
     Effective  January  1,  2003, the Company adopted SFAS No. 143, "Accounting
for  Asset  Retirement Obligation." The statement requires the Company to record
the  fair  value of the reclamation liability on its shut down mining properties
as  of  the date that the liability is incurred with a corresponding increase in
the  book  value  of  the  properties.  The  statement further requires that the
Company  review the liability each quarter to determine whether its estimates of
timing  or  cash flows have changed as well the accretion of the total liability
on  a  quarterly  basis  for  the  passage  of  time.

     The  Company  will  also deduct from the accrued liability any actual funds
expended for reclamation during the quarter in which it is expended. As a result
of  the  Company  taking impairment allowances in prior periods on its shut down
mining  properties,  it  has  no  remaining  book  value for the properties. All
accretion  amounts  will  therefore be expensed in the quarter in which they are
recorded.  Accretion  expense  was  $22,700  for each of the three month periods
ended  March  31,  2003,  and  June  30,  2003.

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

     Balance  December  31,  2002                            $  748,400
     Impact  of  adoption  of  SFAS  No.  143                   293,800
     Addition  to  Liability                                       --
     Liability  Settled                                            --
     Accretion  Expense  -  8%  discount  rate                   45,400
                                                             ----------
     Balance  June  30,  2003                                $1,087,600
                                                             ==========

     The  following  table  shows  what  the Company's net loss and net loss per
share  would  have been in the three and six months of 2002 if the provisions of
SFAS  No.  143  had  been applied in that period, compared with net loss and net
loss  per  share  recorded  in  the  three  and  six  months  of  2003.

                       Three Months Ended June 30,     Six Months Ended June 30,
                     -----------------------------    --------------------------
                            2003        2002             2003           2002
                            ----        ----             ----           ----

Pro-Forma  net  loss    $(1,102,000)  $(565,900)     $(1,534,700)  $(1,128,800)
                        ============ ============    ============  ============
Pro-Forma earnings  per  share
     Basic and Diluted  $   (0.06)   $  (0.03)       $  (0.09)     $  (0.07)
                        ============ ============    ============  ============

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

     8)  Subsequent to June 30, 2003, the Company and USE sold their interest in
the  Ticaboo  town  site  in  southern  Utah  as the result of Plateau Resources
Limited,  a  wholly-owned  subsidiary  of  USE,  entering  into a Stock Purchase
Agreement  to  sell  all  the  outstanding  shares  of  Canyon  Homesteads, Inc.
("Canyon")  to  The  Cactus Group LLC, a newly formed Colorado limited liability
company.  The  Agreement  closed  on  August  14,  2003.


                                        7
<PAGE>
     The  Cactus  Group  purchased  all  of  the outstanding stock of Canyon for
$3,470,000. Of that amount, $349,250 was paid in cash at closing and the balance
of  $3,120,750  is  to be paid under the terms of a promissory note. Interest on
the  note  is  computed at 7.5% annually and the monthly payments are based on a
twenty  year  amortization  of  the  note  balance  with  a  balloon  payment of
$2,940,581  due  in  August 2008. The note is secured with all the assets of The
Cactus Group and Canyon along with a personal guarantee by the six principals of
The  Cactus  Group.  The Company and USE will also receive the first $210,000 in
net  proceeds  from  the  sale  of  either  single family or mobile home lots in
Ticaboo.


                                        8
<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, 2003 be read
in  conjunction  with  the Company's Form 10-K/A for the year ended December 31,
2002.

     The  following  should be read together with the disclosures under "Forward
Looking  Statements."

OVERVIEW  OF  BUSINESS

     At  June  30, 2003, the Company has interests in a uranium mine and mill in
Southern  Utah; uranium mines in central Wyoming; a gold property in California;
coalbed methane properties in the Powder River Basin of Wyoming and Montana, and
an  interest  in  cash  flows  from various real estate properties including the
townsite near Lake Powell, Utah which was sold on August 14, 2003. See Note 8 to
the  financial  statements. The mine properties are all in a shut down mode. All
these  businesses  are  operated  in conjunction with the Company's parent, U.S.
Energy  Corp.  ("USE")  through  a  joint venture between the two companies, the
USECB  Joint  Venture ("USECB"). The Company accounts for USECB using the equity
method  of  accounting.

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

     RECLAMATION  LIABILITIES  - The Company's policy is to accrue the liability
for  future  reclamation  costs  of  its mineral properties (under SFAS No. 143)
based  on  the current estimate of the future reclamation costs as determined by
internal  and  external experts. The present value of the obligation is accreted
each  period  as  the  obligation  settlement  approaches.

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

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

LIQUIDITY  AND  CAPITAL  RESOURCES

     During the six months ended June 30, 2003, the Company incurred $772,500 in
additional  debt  to  its parent, USE. This debt was incurred as a result of USE
advancing funds on behalf of the Company to fund its portion of cash obligations
in the various business ventures in which the two companies jointly participate.

     The  Company  continues  to have low cash reserves and is unable to pay its
ongoing  administrative costs or fund its cash commitments to various businesses
that  it and USE operate jointly. The Company will need to continue to negotiate
favorable terms with USE to continue to operate. To date, USE has agreed that it
will  not  call  the  indebtedness.


                                        9
<PAGE>
     The Company anticipates that the ultimate resolution of the litigation with
Nukem,  Inc.  will  improve its liquidity, See Part II, Item 1. The Company also
will  participate  equally  in  any benefits, 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, 2003 and 2002, consumed
cash  of  $79,400  and $64,300, respectively. The uses of cash in operations was
the  Company's portion of annual audit fees, professional services in connection
with  the  on-going  litigation and other administrative expenditures. Financing
activities during the six months ended June 30, 2003 and 2002, generated cash of
$772,500 and $1,180,900, respectively, as the Company borrowed money from USE to
fund  its cash commitments. Cash consumed in investing activities of $693,100 at
June  30,  2003  and  $1,116,500 at June 30, 2002 was as a result of the Company
using  the  cash  borrowed  from  USE  to fund its portion of operating costs in
investments  jointly  owned  with  USE.

CAPITAL  RESOURCES

     The  Company and USE have a $750,000 line of credit with a commercial bank.
The  line  of  credit  is  secured by various real estate holdings and equipment
belonging to the Company and USE. At June 30, 2003, the total amount of the line
of credit was available to the Company and USE. The line of credit is being used
for  short  term  working  capital  needs  associated  with  operations.

     The  Company's  cash  resources  at June 30, 2003 will not be sufficient to
sustain operations during the balance of 2003. The Company will continue to rely
upon  funding  from  USE  to  meet  its  operating,  administration  and capital
requirements.  It  is  not anticipated that during 2003 operations will generate
significant  capital  resources.

     On  August 1, 2003, the Company and USE received a judgment from the United
States  District  of  Colorado  in the amount of $20,044,184 against Nukem, Inc.
Nukem  has  indicated  its intention to post a supersedeas bond in the amount of
the Judgment plus one year's interest in anticipation of appealing the Judgment.
In  the event that the Company and USE prevail, one half of the award belongs to
the  Company.

     The  Company  and  USE  sold  their  interests  in the Ticaboo town site by
entering  into a stock purchase agreement, which closed on August 14, 2003, with
The  Cactus  Group of Denver, Colorado. The purchase price was $3,470,000 with a
cash  down  payment  of  $349,250. The balance of the amount due from The Cactus
Group  of  $3,120,750,  will  be paid in monthly payments ranging from $5,000 to
$24,000 through August of 2008, at which time a balloon payment in the amount of
$2,940,581 is due. One half of these proceeds, less expenses associated with the
transaction, belong to the Company, pursuant to a 1993 agreement between USE and
the  Company.  Some or all of the Company's share of proceeds may be paid to USE
to  reduce  borrowings  from  USE.

     The  Company  and USE may continue to sell surplus equipment or an interest
in its various mineral properties, which are jointly owned with USE. These sales
would  generate  additional  capital  resources.

CAPITAL  REQUIREMENTS

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


                                       10
<PAGE>
     The  Company  and  USE,  through RMG, have obligations to make delay rental
payments  on  RMG's  portion  of coalbed methane and natural gas leases. RMG has
entered  into various agreements with industry partners whereby a portion or all
of  its  drilling  commitments  on  the  natural gas properties are carried. The
Company  and  USE  through  RMG  continue  to seek additional funding sources to
expand  their  natural  gas  business.

     The  Company  owes USE $9,326,400 as a result of USE funding operations and
capital  expansion expenses. The Company does not have the resources to pay this
debt  and  must  negotiate  continued terms with USE or find some other means of
retiring  the  debt.  To date, USE has not called the debt 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 would be used to
retire  a  portion  or  all  of  this  indebtedness.

     It  is  anticipated  that  approximately  $110,000 will be expended for the
reclamation  by  the  Company and USE during 2003. This amount will be funded by
USE.  Future  reclamation  costs  on  the  Sheep Mountain uranium properties are
covered  by  a  reclamation bond, which is secured by a pledge of certain of the
Company  and  USE's  real estate assets. The reclamation bond amount is reviewed
annually  by  State  of  Wyoming  regulatory  agencies.

RESULTS  OF  OPERATIONS

     The  Company had no revenues during the three and six months ended June 30,
2003  and  2002.

     Costs  and  expenses  for  the  three  and  six months ended June 30, 2003,
increased  by  $58,800 and $37,800, respectively, from those reported during the
same three and six months of the previous year. The main reason for the increase
was  the  accretion of reclamation costs of $22,700 and $45,400 during the three
and  six months ended June 30, 2003. This expense was as a result of the Company
adopting  SFAS  No.  143  on January 1, 2003. The Company recorded equity losses
from  USECC  and  RMG of $1,400,300 and $1,088,600 for the six months ended June
30,  2003  and  2002,  respectively.  The primary reason for the increase in the
equity  losses  from  USECC  and  RMG are legal costs associated with the Phelps
Dodge  and  Nukem  litigations  and  the  costs associated with the formation of
Pinnacle  Gas  Resources,  Inc.,  a  minority  owned  affiliate  of  RMG.

     The Company recognized a loss of $1,102,000 and $1,828,500 during the three
and  six  months  ended June 30, 2003, as compared to a net loss of $543,200 and
$1,084,200  for  the  three  and  six  months  ended  June  30,  2002.

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

     In  the 90 day period before the filing of this Report, the chief executive
and  chief financial officers of the Company have evaluated the effectiveness of
the  Company's disclosure controls and procedures. These disclosure controls and
procedures  are  those  controls  and  other  procedures  we maintain, which are
designed  to  insure that all of the information required to be disclosed by the
Company  in  all its periodic reports filed with the SEC is recorded, processed,
summarized  and  reported,  within the time periods specified in the SEC's rules
and  forms.  Disclosure  controls  and  procedures  include, without limitation,
controls  and  procedures  designed  to  ensure  that information required to be
disclosed  by the Company in its reports filed or submitted under the Securities
Exchange  Act  of  1934  is  accumulated and communicated to Company management,
including  the  chief  executive and chief financial officers of the Company, as
appropriate  to  allow  those person to make timely decisions regarding required
disclosure.


                                       11
<PAGE>
     Subsequent  to  the  date  when the disclosure controls and procedures were
evaluated,  there  have  not  been  any  significant  changes  in  the Company's
disclosure  controls  or procedures or in other factors that could significantly
affect  such  controls  or  procedures.  No significant deficiencies or material
weaknesses in the controls or procedures were detected, so no corrective actions
needed  to  be  taken.

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

     The  statements contained in all parts of this document, including, but not
limited  to,  those  relating to the Company's schedule, estimates or results of
future drilling, budgeted and other future capital expenditures, use of offering
proceeds,  outcome and effects of litigation, the ability of expected sources of
liquidity  to implement its business strategy, level of risk and capital and any
other  statements regarding future operations, financial results, business plans
and  cash  needs  and other statements that are not historical facts are forward
looking  statements.  When  used  in  this  document,  the  words  "anticipate,"
"estimate,"  "expect,"  "may,"  "project," "believe" and similar expressions are
intended  to  be  among the statements that identify forward looking statements.
Such  statements involve risks and uncertainties, including, but not limited to,
those  relating  to  the  Company's  dependence  on  its  exploratory  drilling
activities, the volatility of natural gas prices, operating risks of natural gas
operations,  the  Company's dependence on its key personnel, factors that affect
the  Company's  ability  to manage its growth and achieve its business strategy,
risks relating to, limited operating history, technological changes, significant
capital  requirements  of  the  Company,  the  potential  impact  of  government
regulations  in  the  United  States and elsewhere, litigation, competition, the
uncertainty  of  reserve  information and future net revenue estimates, property
acquisition  risks,  availability  of  equipment,  weather and other factors, as
detailed  in  the  Company's  Annual  Report  on  Form 10-K/A for the year ended
December  31,  2002.  Should  one  or  more  of  these  risks  or  uncertainties
materialize,  or  should underlying assumptions prove incorrect, actual outcomes
may  vary  materially  from  those  discussed.

     Although  the  U.S. District Court of Colorado has ordered Nukem to pay USE
and  Crested  Corp. approximately $20,000,000, further Court proceedings in this
matter are likely. See Part II, Item 1, below. It is likely that Nukem's payment
of  the judgment will be delayed by the appeals process, and it is possible that
the  amount  of  the  judgment  may  change.


                                       12
<PAGE>
                           PART II. OTHER INFORMATION

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

     On  July  30,  2003,  U.S.  Energy Corp. (USE ) and Crested Corp. (Crested)
received  an  order  and  thereafter  a Judgment on August 1, 2003 from the U.S.
District  Court  of  Colorado  wherein  Chief  Judge  Lewis T. Babcock ordered a
Judgment  be  entered against Nukem in favor of Crested and USE in the amount of
$20,044,184.  The  Defendant  Nukem  has  indicated  to Crested  and USE that it
intends  to  appeal  the Judgment to the 10th Circuit Court of Appeals (CCA) and
that  it  will  post  a supersedeas bond in the full amount of the Judgment plus
interest  for  one  year. Crested and USE have filed a motion to alter and amend
certain  portions  of  the Order and Judgment. It is anticipated that Nukem will
also file such a motion. It is not known what the outcome will be but management
believes  the  Court will act on the motions expeditiously. Once the Court rules
on the motions, the parties will have 30 days within which time to file a notice
of  appeal  to  the  10th  CCA.

     No  other material developments in the other pending Legal Proceedings have
occurred  since they were last reported by the Company in Item 3 of its December
31,  2002  Form  10-K/A.

ITEM  2.  CHANGES  IN  SECURITIES  AND  USE  OF  PROCEEDS
          -----------------------------------------------

      NONE

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

     (a)     Exhibits.

             31      Certification Pursuant to Rule 13a-14(a) and Rule 15d-14(a)

             32      Certification  Pursuant  to  Section  1350  of  Chapter  63
                     of  title  18  of  the  United  States  Code

     (b)     REPORTS  ON  FORM  8-K.  The Company filed four reports on Form 8-K
for  the  quarter  ended  June  30,  2003.  The events reported were as follows:

          1.   The  report  filed  on April 9, 2003, under Item 5, referenced 1)
               the  extension of Option Agreement for subsidiary, Rocky Mountain
               Gas,  Inc.,  to  acquire coalbed methane properties and assets in
               the Powder River Basin and 2) the U.S. District Court of Colorado
               granting  the  Special  Master,  in the Nukem accounting case, an
               extension  of  time  to  file  his  report  to  May  1,  2003;

          2.   The  report  filed  May  12,  2003,  under Item 5, referenced the
               subsidiary,  Rocky Mountain Gas, Inc., signing a Letter of Intent
               to  enter  into an Earn-In Joint Venture with Gastar Exploration,
               Ltd.;

          3.   The  report  filed  May  12,  2003,  under Item 5, referenced the
               report  from  the  Special  Master  being  filed  "under  seal";

          4.   The  report  filed  May  29,  2003,  under Item 5, referenced the
               Amended  Minute  Order  from the U.S. District Court for Colorado
               clarifying  the  Court's  Minute  Order  of  May  19,  2003;


                                       13
<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,  2003                  By:    /s/ John L. Larsen
                                                 -------------------------------
                                                 JOHN  L.  LARSEN,
                                                 CHAIRMAN  and  CEO




Date:  August  13,  2003                  By:    /s/ Robert Scott Lorimer
                                                 -------------------------------
                                                 ROBERT  SCOTT  LORIMER
                                                 Principal Financial Officer and
                                                 Chief  Accounting  Officer


                                       14
<PAGE>
                                  CERTIFICATION
                                  -------------

       I,  Robert  Scott  Lorimer,  certify  that:

1.     I  have  reviewed  this  quarterly  report on Form 10-Q of Crested Corp.;

2.     Based  on my knowledge, this report does not contain any untrue statement
of  a  material  fact  or  omit  to  state a material fact necessary to make the
statements  made, in light of the circumstances under which such statements were
made,  not  misleading  with  respect  to  the  period  covered  by this report;

3.     Based  on  my  knowledge,  the  financial statements, and other financial
information included in this report, fairly present in all material respects the
financial  condition,  results of operations and cash flows of the registrant as
of,  and  for,  the  periods  presented  in  this  report;

4.     The  registrant's  other  certifying officer(s) and I are responsible for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange  Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
reporting  (as  defined  in  Exchange Act Rules 13a-15(f) and 15d-15(f)) for the
registrant  and  have:

     (a)  Designed  such  disclosure  controls  and  procedures,  or caused such
          disclosure  controls  and  procedures  to  be  designed  under  our
          supervision,  to  ensure  that  material  information  relating to the
          registrant,  including its consolidated subsidiaries, is made known to
          us  by others within those entities, particularly during the period in
          which  this  report  is  being  prepared;
     (b)  Designed  such  internal  control  over financial reporting, or caused
          such  internal  control  over financial reporting to be designed under
          our  supervision,  to  provide  reasonable  assurance  regarding  the
          reliability  of  financial  reporting and the preparation of financial
          statements for external purposes in accordance with generally accepted
          accounting  principles;
     (c)  Evaluated  the  effectiveness  of the registrant's disclosure controls
          and  procedures and presented in this report our conclusions about the
          effectiveness of the disclosure controls and procedures, as of the end
          of  the  period  covered  by this report based on such evaluation; and
     (d)  Disclosed  in  this  report  any  change  in the registrant's internal
          control over financial reporting that occurred during the registrant's
          most  recent fiscal quarter (the registrant's fourth fiscal quarter in
          the  case  of  an  annual  report) that has materially affected, or is
          reasonably  likely  to  materially  affect,  the registrant's internal
          control  over  financial  reporting;  and

5.     The  registrant's other certifying officer(s) and I have disclosed, based
on  our  most recent evaluation of internal control over financial reporting, to
the  registrant's  auditors and the audit committee of the registrant's board of
directors  (or  persons  performing  the  equivalent  functions):

     (a)  All  significant deficiencies and material weaknesses in the design or
          operation  of  internal  control  over  financial  reporting which are
          reasonably  likely  to  adversely  affect  the registrant's ability to
          record,  process,  summarize  and  report  financial  information; and
     (b)  Any  fraud, whether or not material, that involves management or other
          employees  who  have  a  significant role in the registrant's internal
          control  over  financial  reporting.

Dated  this  18th  day  of  August,  2003.



                                     /s/ Robert Scott Lorimer
                                     -------------------------------------------
                                     Robert  Scott  Lorimer,
                                     Chief  Financial  Officer


                                       15
<PAGE>
                                  CERTIFICATION
                                  -------------

       I,  John  L.  Larsen,  certify  that:

6.     I  have  reviewed  this  quarterly  report on Form 10-Q of Crested Corp.;

7.     Based  on my knowledge, this report does not contain any untrue statement
of  a  material  fact  or  omit  to  state a material fact necessary to make the
statements  made, in light of the circumstances under which such statements were
made,  not  misleading  with  respect  to  the  period  covered  by this report;

8.     Based  on  my  knowledge,  the  financial statements, and other financial
information included in this report, fairly present in all material respects the
financial  condition,  results of operations and cash flows of the registrant as
of,  and  for,  the  periods  presented  in  this  report;

9.     The  registrant's  other  certifying officer(s) and I are responsible for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange  Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
reporting  (as  defined  in  Exchange Act Rules 13a-15(f) and 15d-15(f)) for the
registrant  and  have:

     (a)  Designed  such  disclosure  controls  and  procedures,  or caused such
          disclosure  controls  and  procedures  to  be  designed  under  our
          supervision,  to  ensure  that  material  information  relating to the
          registrant,  including its consolidated subsidiaries, is made known to
          us  by others within those entities, particularly during the period in
          which  this  report  is  being  prepared;
     (b)  Designed  such  internal  control  over financial reporting, or caused
          such  internal  control  over financial reporting to be designed under
          our  supervision,  to  provide  reasonable  assurance  regarding  the
          reliability  of  financial  reporting and the preparation of financial
          statements for external purposes in accordance with generally accepted
          accounting  principles;
     (c)  Evaluated  the  effectiveness  of the registrant's disclosure controls
          and  procedures and presented in this report our conclusions about the
          effectiveness of the disclosure controls and procedures, as of the end
          of  the  period  covered  by this report based on such evaluation; and
     (d)  Disclosed  in  this  report  any  change  in the registrant's internal
          control over financial reporting that occurred during the registrant's
          most  recent fiscal quarter (the registrant's fourth fiscal quarter in
          the  case  of  an  annual  report) that has materially affected, or is
          reasonably  likely  to  materially  affect,  the registrant's internal
          control  over  financial  reporting;  and

10.     The registrant's other certifying officer(s) and I have disclosed, based
on  our  most recent evaluation of internal control over financial reporting, to
the  registrant's  auditors and the audit committee of the registrant's board of
directors  (or  persons  performing  the  equivalent  functions):

     (a)  All  significant deficiencies and material weaknesses in the design or
          operation  of  internal  control  over  financial  reporting which are
          reasonably  likely  to  adversely  affect  the registrant's ability to
          record,  process,  summarize  and  report  financial  information; and
     (b)  Any  fraud, whether or not material, that involves management or other
          employees  who  have  a  significant role in the registrant's internal
          control  over  financial  reporting.

Dated  this  18th  day  of  August,  2003.



                                     /s/ John L. Larsen
                                     -------------------------------------------
                                     John  L.  Larsen,
                                     Chief  Executive  Officer


                                       16
<PAGE>
                                                                      EXHIBIT 32

              Certification Pursuant to Section 1350 of Chapter 63
                      of Title 18 of the United States Code

                             as adopted pursuant to

                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


     I,  John  L.  Larsen, the Chief Executive Officer of Crested Corp., certify
that (i) the Quarterly Report on Form 10-Q for the period ended June 30, 200, as
filed  by the Company with the Securities and Exchange Commission, to which this
Certification  is  an  Exhibit,  fully complies with the requirements of Section
13(a)  of  the  Securities  Exchange  Act  of  1934,  as  amended;  and (ii) the
information  contained in the Quarterly financial statements fairly presents, in
all  material  respects,  the  financial  condition and results of operations of
Crested  Corp.




                                           /s/ John L. Larsen
                                           -------------------------------------
                                           John  L.  Larsen
                                           Chief  Executive  Officer
                                           Date:  August  18,  2003


This  certification  accompanies  this  Report  pursuant  to  Section 906 of the
Sarbanes-Oxley  Act  of  2002  and  shall not be deemed filed by the Company for
purposes  of  Section  18  of  the  Securities Exchange Act of 1934, as amended.

A  signed  original  of  this written statement required by Section 906 has been
provided to Crested Corp. and will be retained by Crested Corp. and furnished to
the  Securities  and  Exchange  Commission  or  its  staff  upon  request.


                                       17
<PAGE>
                                                                      EXHIBIT 32

              Certification Pursuant to Section 1350 of Chapter 63
                      of Title 18 of the United States Code

                             as adopted pursuant to

                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


     I,  Robert  Scott  Lorimer,  the  Chief Financial Officer of Crested Corp.,
certify that (i) the Quarterly Report on Form 10-Q for the period ended June 30,
200,  as  filed  by  the Company with the Securities and Exchange Commission, to
which  this Certification is an Exhibit, fully complies with the requirements of
Section  13(a)  of the Securities Exchange Act of 1934, as amended; and (ii) the
information  contained in the Quarterly financial statements fairly presents, in
all  material  respects,  the  financial  condition and results of operations of
Crested  Corp.




                                           /s/ Robert Scott Lorimer
                                           -------------------------------------
                                           Robert  Scott  Lorimer
                                           Chief  Financial  Officer
                                           Date:  August  18,  2003


This  certification  accompanies  this  Report  pursuant  to  Section 906 of the
Sarbanes-Oxley  Act  of  2002  and  shall not be deemed filed by the Company for
purposes  of  Section  18  of  the  Securities Exchange Act of 1934, as amended.

A  signed  original  of  this written statement required by Section 906 has been
provided to Crested Corp. and will be retained by Crested Corp. and furnished to
the  Securities  and  Exchange  Commission  or  its  staff  upon  request.


                                       18
<PAGE>