SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 and 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): April 18, 1996
CRESTED CORP.
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(Exact Name of Registrant as Specified in its Charter)
Colorado 0-8773 84-0608126
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(State or other (Commission (I.R.S. Employer
jurisdiction of File No.) Identification No.)
incorporation)
Glen L. Larsen Building
877 North 8th West
Riverton, WY 82501
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (307) 856-9271
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Not Applicable
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(Former Name, Former Address or Former Fiscal Year,
if Changed From Last Report)
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Item 5. - Other Events
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On April 18, 1996 the arbitration panel (the "Panel")
entered an Arbitration Order and Award (the "Order") in the Sheep
Mountain Partners Partnership ("SMP") proceedings involving
Crested Corp. (the "Registrant"), its parent U.S. Energy Corp.
("USE"), Nukem, Inc. and its wholly-owned subsidiary Cycle
Resource Investment Corporation (Nukem/CRIC). The Panel found in
favor of the Registrant and USE on certain claims made by the
Registrant and USE (including the claims for reimbursement of
standby, maintenance expenses and other expenses on the SMP
mines), and in favor of Nukem/CRIC and against the Registrant and
USE on certain other claims.
The Registrant and USE were awarded monetary damages of
approximately $7.4 million, which amount is after deduction of
monetary damages which the panel awarded in favor of Nukem/CRIC
and against the Registrant and USE. An additional amount of
approximately $4.8 million was awarded by the Panel to the
Registrant and USE, to be paid out of cash funds held in SMP bank
accounts, which accounts have been accruing operating funds from
SMP since the arbitration/litigation proceedings were commenced.
It is anticipated that such payment out of the SMP bank accounts
will be made in May 1996.
The Panel ordered that one utility supply contract for
980,000 pounds of uranium oxide held by Nukem/CRIC belonged to
SMP, and ordered such contract assigned to SMP. The contract
expires in 2000.
The fraud and RICO claims of the Registrant and USE against
Nukem and CRIC were dismissed.
The timing of payment by Nukem/CRIC to the Registrant and
USE of the $7.4 million monetary damages is presently uncertain.
The Registrant and USE intend to seek a judicial order that such
amounts be paid out of the SMP additional funds being held in the
bank accounts.
The Panel did not order SMP dissolved. The Registrant and
USE may seek to reach an agreement with Nukem/CRIC on dissolution
of SMP. If a dissolution is not achievable through negotiation,
the Registrant and USE may seek judicial intervention and the
appointment of a receiver by the courts, to wind up the
partnership affairs and distribute assets after payment of
liabilities. The timing and ultimate resolution of the
partnership dissolution matter presently is uncertain. Pending
such resolution, the Registrant and USE are hopeful that delivery
obligations under the various SMP utility supply contracts can
be met through the cooperation of Nukem/CRIC.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
CRESTED CORP.
May 9, 1996 By: s/ Max T. Evans
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MAX T. EVANS, President
