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 November 30, 2000 or
[        Transition report pursuant to section 13 or 15(d) of the Securities
         Exchange Act of 1934 For the transition period from _______ to ________

Commission file number   0-8773
                       ----------

                                  CRESTED CORP.
--------------------------------------------------------------------------------
               (Exact Name of Company as Specified in its Charter)

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

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

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


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


     Indicate  by check  mark  whether  the  Company  (1) has filed all  reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934 during the preceding 12 months (or for such shorter period that the Company
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days.

                                 YES   X     NO
                                    -------     -------

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

                    Class                        Outstanding at January 12, 2001
--------------------------------------------    --------------------------------
        Common stock, $.001 par value                   10,381,664 Shares



<PAGE>



                                  CRESTED CORP.

                                      INDEX

                                                                        Page No.
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements.

        Condensed Consolidated Balance Sheets
         November 30, 2000 and May 31, 2000..................................3-4

        Condensed Consolidated Statements of Operations
         Three and Six Months Ended November 30, 2000 and 1999.................5

        Condensed Consolidated Statements of Cash Flows
         Six Months Ended November 30, 2000 and 1999...........................6

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

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

PART II.OTHER INFORMATION

ITEM 4. Submission of Matter to a vote of Security Holders....................11

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

        Signatures............................................................11


                                        2

<PAGE>



                          PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements.

                                  CRESTED CORP.

                      Condensed Consolidated Balance Sheets

                                     ASSETS
<TABLE>
<S>                                         <C>                <C>
                                               November 30,          May 31,
                                                   2000               2000
                                             ---------------     ---------------
                                                (Unaudited)

CURRENT ASSETS:
    Cash and cash equivalents                $       19,000     $         3,000
    Litigation settlement receivable, net           812,500                  --
                                              --------------      --------------
TOTAL CURRENT ASSETS                                831,500               3,000

INVESTMENTS IN AFFILIATES                         6,569,300           6,342,200

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

OTHER ASSETS                                          2,100               2,100
                                               -------------      --------------
                                             $    7,551,400      $    6,495,800
                                               =============      ==============

</TABLE>


            See notes to Condensed Consolidated Financial Statements.

                                        3

<PAGE>



                                  CRESTED CORP.

                      Condensed Consolidated Balance Sheets



                      LIABILITIES AND SHAREHOLDERS' DEFICIT

<TABLE>
<S>                                           <C>                <C>
                                                 November 30,         May 31,
                                                    2000               2000
                                              ---------------    ---------------
                                                 (Unaudited)
CURRENT LIABILITIES:
      Deferred GMMV purchase option           $           --     $    2,000,000
      Current debt to affiliate                    8,565,300          8,230,200
                                              ---------------    ---------------
TOTAL CURRENT LIABILITIES                          8,565,300         10,230,200

COMMITMENT TO FUND EQUITY INVESTEES                  215,600            215,600

RECLAMATION LIABILITY                                748,400            748,400

COMMITMENTS AND CONTINGENCIES

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

SHAREHOLDERS' DEFICIT:
      Preferred stock, $.001 par value;
         100,000 shares authorized
         none issued or outstanding                       --                 --
      Common stock, $.001 par value;
         20,000,000 shares authorized
         10,316,664 shares issued and outstanding     10,400             10,400
      Additional paid-in capital                   8,747,200          8,747,200
      Accumulated deficit                        (10,779,400)       (13,499,900)
                                              ----------------   ---------------
TOTAL SHAREHOLDERS' DEFICIT                       (2,021,800)        (4,742,300)
                                              ----------------   ---------------
                                               $   7,551,400     $    6,495,800
                                              ================   ===============

</TABLE>


            See notes to Condensed Consolidated Financial Statements.

                                        4

<PAGE>



                                  CRESTED CORP.

                 Condensed Consolidated Statements of Operations

<TABLE>
<S>                         <C>           <C>           <C>           <C>
                                Three Months Ended           Six Months Ended
                                    November 30,                November 30,
                            -------------------------      ---------------------
                                2000         1999          2000            1999
                                ----         ----          ----            ----
                            (Unaudited)  (Unaudited)    (Unaudited)  (Unaudited)
REVENUES:
 Mineral revenue            $   16,600    $  16,400     $   33,300    $  33,500
 Interest                          100          900            100        1,500
 Litigation settlement       3,566,400           --      3,566,400           --
 Other                              --           --             --        5,000
                            -----------   ----------    -----------  -----------
                             3,583,100       17,300      3,599,800       40,000

COSTS AND EXPENSES:
 General and administrative     52,600       65,600        132,300      109,200
                            -----------   ----------    -----------  -----------

INCOME (LOSS) BEFORE EQUITY LOSS
 AND TAX PROVISION           3,530,500      (48,300)     3,467,500      (69,200)

EQUITY IN LOSS OF AFFILIATE   (406,100)    (337,100)      (747,000)    (807,600)
                            -----------   ----------    -----------  -----------

INCOME (LOSS)  BEFORE
 PROVISION FOR INCOME TAXES  3,124,400     (385,400)     2,720,500     (876,800)

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

NET INCOME (LOSS)           $3,124,400    $(385,400)    $2,720,500    $(876,800)
                            ===========   ==========    ===========   ==========

NET INCOME (LOSS)PER SHARE
 BASIC AND DILUTED          $     0.30    $   (0.04)    $     0.26    $   (0.08)
                            ===========   ==========    ===========   ==========

BASIC WEIGHTED AVERAGE
 SHARES OUTSTANDING         10,316,664   10,284,664     10,316,664    10,284,664
                            ==========   ===========    ===========   ==========

DILUTED WEIGHTED AVERAGE
 SHARES OUTSTANDING         10,381,664   10,349,664     10,381,664   10,349,664
                            ===========  ===========    ===========  ===========

</TABLE>






            See notes to Condensed Consolidated Financial Statements.

                                        5

<PAGE>





                                  CRESTED CORP.

                 Condensed Consolidated Statements of Cash Flows
<TABLE>
<S>                                             <C>                <C>
                                                         Six Months Ended
                                                            November 30,
                                                --------------------------------
                                                      2000              1999
                                                      ----              ----
                                                  (Unaudited)        (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                              $   2,720,500     $   (876,800)
  Adjustments to reconcile net income (loss) to net cash
   provided by (used in) operating activities:
     Non cash compensation                             122,900          107,600
     Equity in loss of affiliates                      747,000          807,600
     Deferred GMMV purchase option                  (2,000,000)              --
     Litigation settlement receivable, net            (812,500)              --
   Net changes in components
     of working capital                                     --            1,600
                                                 --------------    -------------
NET CASH PROVIDED BY OPERATING ACTIVITIES              777,900           40,000
                                                 --------------    -------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Investments in affiliates                           (744,900)              --
                                                 --------------    -------------
NET CASH USED IN INVESTING ACTIVITIES                 (744,900)              --
                                                 --------------    -------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Net activity on long term debt to affiliate          (17,000)              --
                                                 --------------    -------------
NET CASH USED IN FINANCING ACTIVITIES                  (17,000)              --
                                                 --------------    -------------

NET INCREASE  IN
  CASH AND CASH EQUIVALENTS                             16,000           40,000

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

CASH AND CASH EQUIVALENTS AT
  END OF PERIOD                                  $      19,000     $     85,000
                                                 ==============    =============

SUPPLEMENTAL DISCLOSURES:
  Net noncash activity on investmentin affiliate $    (229,200)    $     63,100
                                                 ==============    =============

  Net noncash activity on debt to affiliate      $     352,100     $    170,700
                                                 ==============    =============
</TABLE>


            See notes to Condensed Consolidated Financial Statements.

                                        6

<PAGE>



                                  CRESTED CORP.

                     Notes to Condensed Financial Statements


     1) The  Condensed  Balance  Sheet as of November  30, 2000,  the  Condensed
Statements  of  Operations  and Cash  Flows for the three and six  months  ended
November 30, 2000 and 1999, have been prepared by the Company without audit. The
Condensed  Balance  Sheet at May 31,  2000,  has been  derived  from the audited
financial  statements included in the Company's Annual Report on Form 10-K filed
for the year  then  ended.  In the  opinion  of the  Company,  the  accompanying
financial  statements  contain  all  adjustments   (consisting  of  only  normal
recurring  accruals)  necessary to fairly present the financial  position of the
Company as of November 30, 2000 and May 31, 2000,  the results of operations for
the three and six months ended November 30, 2000 and November 30, 1999.

     2) Certain  information  and  footnote  disclosures  normally  included  in
financial statements prepared in accordance with accounting principles generally
accepted in the United  States have been  condensed or omitted.  It is suggested
that these  financial  statements be read in conjunction  with the Company's May
31, 2000 Form 10- K. The results of operations  for the periods  ended  November
30, 2000 and 1999 are not  necessarily  indicative of the operating  results for
the full year.

     3) Debt at November 30, 2000 and May 31, 2000  consists of the balance on a
note payable to USE of $8,565,300 and $8,230,200, respectively.

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

     5) On  September  11,  2000,  the Company and USE entered into a settlement
agreement  with Kennecott  related to the pending legal  dispute.  In connection
with this  settlement  agreement,  the  Company and USE have  transferred  their
ownership  interests in GMMV to Kennecott,  including the ownership  interest in
the  Sweetwater  Mill,  the Jackpot Mine,  the Big Eagle Mine and shop,  and all
patented and  unpatented  mining  claims.  The Company and USE received  various
machinery and equipment  held by GMMV at the Jackpot Mine and $3.25 million from
Kennecott.  The Company and USE received  $1.625  million of this payment during
the six months ended  November 30, 2000 and $1.625  million in January  2001. In
addition,  Kennecott has assumed all the liabilities of the GMMV,  including all
reclamation  and  bonding   requirements,   except  the  reclamation   liability
associated with the Green Mountain Ion Exchange.

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

     7) Certain  reclassifications  have been made to the May 31, 2000 financial
statements to conform to the classifications used as of November 30, 2000.



                                        7

<PAGE>



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


     The  following  is  Management's  Discussion  and  Analysis of  significant
factors  which have  affected the  Company's  liquidity,  capital  resources and
results of operations during the periods included in the accompanying  financial
statements. For a detailed explanation of the Company's Business Overview, it is
suggested that Management's  Discussion and Analysis of Financial  Condition and
Results  of  Operations  for the  quarter  ended  November  30,  2000 be read in
conjunction with the Company's Form 10K for the year ended May 31, 2000.

Overview of Business

     The Company is engaged in the mineral development and extraction  business.
The Company has interests in a uranium mine and mill in Southern  Utah,  uranium
mines in  Central  Wyoming,  a gold  property  in  California,  coalbed  methane
properties  in Wyoming  and Montana in the Powder  River Basin and various  real
estate operations including a motel operation near Lake Powell, Utah.

     All these business are operated in conjunction  with the Company's  parent,
U.S. Energy Corp. ("USE") through a joint venture between the two companies, the
USECB Joint Venture ("USECB").

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

Liquidity and Capital Resources

     The  Company's  working  capital  deficit  at May 31,  2000 of  $10,227,200
decreased to a working  capital deficit of $7,733,800 at November 30, 2000. This
decrease of $2,493,400 in the working  capital  deficit was caused  primarily by
the settlement of the litigation with  Kennecott.  As a result of the settlement
with Kennecott the Company was able to recognize $2,000,000 in non-cash revenues
which had previously been carried as a deferred purchase option.  This reduction
in current  liabilities  combined with the recording of $812,500 in a settlement
receivable for the final payment from Kennecott which was received on January 4,
2001 resulted in a total decrease in the working  capital deficit of $2,812,500.
This reduction in the working capital deficit was partially off set by increased
debt to USE of  $335,100.  USE  continues to fund a  significant  portion of the
Company's obligations on the various ventures in which they operate jointly.

     During  the six  months  ended  November  30,  2000,  operations  generated
$777,900 while investing and financing activities consumed $744,900 and $17,000,
respectively for a net increase in cash of $16,000.

Capital Resources

     The Company and USE entered  into a  settlement  agreement  with  Kennecott
Energy  ("Kennecott")  on September  11, 2000.  This  settlement  agreement  was
entered into to resolve all issues in a legal  dispute  among the  companies who
were partners in the Green Mountain Mining Venture ("GMMV").  As a result of the
settlement,  the Company and USE received $1,625,000 during the six months ended
November  30,  2000 and  $1,625,000  in  January  2001.  Kennecott  assumed  the
reclamation liabilities on the Sweet water uranium mill and mining properties of
the GMMV. The Company and USE are responsible  for the  reclamation  clean up of
the  GMIX  plant  which  had  been  used in the  recovery  of  uranium  by other
companies.


                                        8

<PAGE>



     The Company  and USE have a  $1,000,000  line of credit  with a  commercial
bank.  The line of credit  is  secured  by  various  real  estate  holdings  and
equipment  belonging to the Company and USE. At November  30, 2000,  the line of
credit had been drawn down by $850,000.  This total indebtedness had been repaid
as of January 12, 2001 leaving the entire $1,000,000 line of credit available to
fund  operations  in the third and fourth  quarter of Fiscal  2001.  The line of
credit is being  used for short  term  working  capital  needs  associated  with
operations.  The  Company  and USE also have a $500,000  line of credit  through
their affiliate Plateau Resources. This line of credit is for the development of
the Ticaboo town site in southern  Utah.  Plateau has drawn down this  financing
facility $300,000 which is repayable over a period of 10 years.

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

     The Company  believes that these cash resources along with funding from USE
will be  sufficient  to sustain  operations  during  fiscal  2001.  The  capital
resources at November  30, 2000,  will not be  sufficient,  however,  to provide
funding for the Company's maintenance and development of its coalbed methane gas
business.  RMG is seeking  additional  equity  financing or an industry  partner
arrangement to develop its coalbed methane leases.

Capital Requirements

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

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

     The Company and USE through  RMG,  have  obligations  to make delay  rental
payments  on RMG's  portion of  coalbed  methane  leases.  In  addition,  RMG is
committed  to pay  Quantum  Energy,  L.L.C.  ("Quantum")  one final  payment  of
$1,300,000  on or before  January  31,  2001.  If RMG does not make  this  final
payment,  it can be  extended to  February  28,  2001 but  penalty and  interest
payments must also be made. If the final payment of $1,300,000 is ultimately not
made to Quanum, RMG must assign 12% of its undivided 50% working interest in the
properties to Quantum.

     On  December  31, 2000 RMG and  Quantum  entered  into an option and farmin
agreement with Suncor Energy  America Inc.  (Suncor").  The agreement  grants an
option to Suncor to purchase  37.5% of RMG's and 12.5% of Quantum's  interest in
111,633.77 acres of their coal bed methane properties. For this option Suncor is
obligated to pay  $1,706,813 at closing which is scheduled on or before  January
31, 2001. RMG will receive  $1,280,110 of this option payment which will be used
to fund the $1,300,000 obligation to Quantum.

     The option  period is for 12 months from closing on 105,172.4  acres and 24
months on 6,461.37  acres.  During this option  period  Suncor has  committed to
conduct a $2,250,000  drilling  program on the  properties.  RMG is obligated to
fund $250,000 of that drilling program.  At the conclusion of the option periods


                                        9

<PAGE>



Suncor must elect to exercise  its option or return the  properties  to RMG
and Quantum.  Should Suncor elect to exercise its option the ownership interests
in the properties would be RMG -12.5%,  Quantum - 37.5% and Suncor - 50%. Should
Suncor exercise its option it is obligated to pay an additional  $3,926,600,  of
which RMG would receive $2,944,900.  Upon exercise of its option, Suncor is also
committed to pay an  additional  $841,400 as a  disportional  contribution  to a
subsequent 18 month drilling program.

     The Company  owes USE  $8,565,300  at November  30, 2000 as a result of USE
funding operations and capital expansion expenses. The Company does not have the
resources to repay this debt and must negotiate continued terms with USE or find
some other means of retiring the debt. To date, USE has not called the debt.

     The Company has attended  appeals  hearings with the IRS in Denver Colorado
to discuss  resolving  issues raised in audits for fiscal 1995 and 1996. A final
settlement  agreement  has not yet been  approved  but it is  believed  that the
settlement will not have a material affect on the Company.

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

Results of Operations

     Revenues   for  the  six  months  ended   November   30,  2000,   increased
significantly  by  $3,559,800  from revenues for the same period of the previous
year to  $3,599,800.  This increase was a s a result of the  recognition  of the
litigation settlement with Kennecott.  Of the $3,566,400 recognized as revenues,
$2,000,000  was a non cash  recognition  of a  deferred  purchase  option.  This
purchase  option  was  paid in cash to the  Company  in 1997 by  Kennecott.  The
balance of the revenues  recognized are the cash portion of the payments made by
Kennecott, net of accounts receivable for operations at the GMMV properties.

     Costs and  expenses  increased  by  $23,100  during  the six  months  ended
November 30, 2000 over the same period of the prior year. This increase was as a
result of work done in the coalbed methane business.

     Due to the  adoption of EITF  00-01,  "Balance  Sheet and Income  Statement
Display  under the Equity Method for  Investments  in Certain  Partnerships  and
Other  Unincorporated  Joint Ventures," the Company recorded an equity loss from
USECC in the amounts of $747,000 and $807,600 for the six months ended  November
30, 2000 and November 30, 1999, respectively.

     Operations  for the six months ended  November  30,  2000,  resulted in net
income of  $2,720,500  as compared to a loss of $876,800 for the same six months
in the previous year.





                                       10

<PAGE>


ITEM 4. Submission of Matter to a vote of Security Holders

     On December 8, 2000,  the annual meeting of  shareholders  was held and the
only issue considered was the reelection of the five directors:  John L. Larsen,
Max T. Evans, Daniel P. Svilar,  Kathleen R. Martin and Michael D. Zwickl. These
directors  were  reelected  for a term  expiring at the next  succeeding  annual
meeting and until their  successors are duly elected or appointed and qualified.
With respect to the  reelection  of the five  directors,  the votes cast were as
follows:


  Name of Director            For           Against       Abstain       Withheld
  ----------------            ---           -------       -------       --------
  John L. Larsen          8,864,933           4,350       46,620          2,200
  Max T. Evans            8,845,594           4,350       36,250         21,039
  Daniel P. Svilar        8,862,633           4,350       46,620          1,100
  Kathleen R. Martin      8,861,655           4,350       46,620          5,478
  Michael D. Zwickl       8,864,533           4,350       46,620          2,100



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


     (a) Exhibits. None.

     (b) Reports on Form 8-K.  During the quarter  ended  November  30, 2000 the
Company  filed two reports on Form 8-K. On September  12, 2000 under Item 5, the
Company  reported the  settlement of litigation  with  Kennecott  concerning the
Green  Mountain  Mining  Venture.  On October 17, 2000 the Company  reported the
affirmation  by the Tenth  Circuit  Court of Appeals of the ruling of the United
States District Court of Colorado in the Nukem litigation.



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



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

                                       11

<PAGE>