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):May 24, 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)
Item 5. - Other Events
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On May 24, 1996, the United States District Court for the
District of Colorado (the "Court") in Civ. Case No. 91-B-1153,
issued an order remanding the Sheep Mountain Partners Arbitration
back to the three member panel of arbitrators (the "Panel") that
issued an Order and Award on April 18, 1996 (the "Award")
favoring Registrant and its parent U.S. Energy Corp. ("USE").
See Registrant's Form 8-K dated as of April 18, 1996 reporting
the Award of the Panel.
The Court directed the Panel to consider, without taking
further evidence, and rule upon two motions (the "Nukem Motions")
filed by Nukem, Inc. ("Nukem") and Cycle Resources Investment
Corporation ("CRIC") which requested correction of the Award in
certain respects. The Nukem Motions are based on what Nukem and
CRIC claim to be errors and inconsistencies in two of the 36
claims addressed in the Award that they allege improperly
increased the damages awarded to Registrant and USE by an
aggregate amount exceeding $16 million. Registrant and USE filed
opposition with the Panel to the Nukem Motions on June 14, 1996
and believe that the operative legal standard of review that
governs collateral attacks on arbitration awards precludes Nukem
and CRIC's claim that the Award should be reopened. Registrant
and USE have asserted in its opposition that each position
advanced in the Nukem Motions has been previously considered by
the Panel before it issued its Award; that there were no evident
material miscalculations of figures by the Panel, and that none
of the alleged errors or inconsistencies cited in the Nukem
Motions satisfies the standard required for modification of the
Award under the Federal Arbitration Act (9 U.S.C. 1 et seq.) and
prevailing case law. Nevertheless, the impact, if any, of the
Nukem Motions on the Award cannot be determined until the Panel
rules on the motions and the Court considers the Panel's ruling.
On June 24, 1996, Registrant and USE received the reply to their
opposition to Nukem's two motions. The Panel is expected to
reach a decision early in July 1996.
Registrant and USE have separately petitioned the Court for
confirmation of the Award and filed motions with the Court for
dissolution of the Sheep Mountain Partnership ("SMP"); for the
appointment of a receiver to oversee the obligations of SMP to
make deliveries of uranium concentrates to utilities and
supervise the formal dissolution of SMP, and for an order
directing distribution of the escrowed SMP accounts held by two
banks. These motions and petition for confirmation of the Award
were stayed by the Court pending a ruling by the Panel on the
Nukem Motions.
The Sheep Mountain Partners Arbitration/Litigation was
reported in Item 3 - Legal Proceedings - in Registrant's Form 10-
K for fiscal year ended May 31, 1995 and the Award was reported
in Registrant's Form 8-K dated as of April 18, 1996, each of
which has been filed with the Securities and Exchange Commission.
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.
June 25, 1996 By: s/ Max T. Evans
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MAX T. EVANS, President
