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): July 20, 1998
CRESTED CORP.
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Exact Name of Registrant as Specified in its Charter)
Colorado 0-8773 83-0608126
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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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Registrant and its parent U.S. Energy Corp. today announced that on July
20, 1998, Registrant and U.S. Energy Corp. joined Uranium Producers of America,
(a trade association representing United States' uranium mining production
companies) and other uranium producers in filing a suit in the U.S. District
Court of Wyoming against the United States Department of Energy (DOE) and the
acting Secretary. The Plaintiffs in the action (including Registrant and U.S.
Energy Corp.), are seeking declaratory and injunctive relief designed to halt
the DOE from transferring large amounts of uranium to the United States
Enrichment Corporation (USEC).
This action has been taken because the uranium producers believe that the DOE
had unlawfully transferred uranium resources to USEC. USEC is the
Government-owned corporation that now operates the Federal Government's uranium
enrichment enterprise. UPA contends that DOE has violated federal law intended
to protect domestic uranium producers by transferring large quantities of
uranium from Government stockpiles to USEC in direct violation of restrictions
set by Congress in the USEC Privatization Act of 1996 and the Energy Policy Act
of 1992. As a result of receiving the material from DOE, USEC will have an
enormous competitive advantage over existing private uranium producers.
On May 18, 1998, the DOE authorized a significant transfer of uranium to USEC
that was in excess of the statutory limits, failed to receive the fair market
price for the material, and failed to consider adequately the impact that this,
and previous transfers would have on the domestic uranium producers.
Crew Schmitt, President of the UPA stated that, "Uranium producers are extremely
concerned that DOE has engaged in a pattern of actions designed to swell USEC's
inventory of uranium through improper transfers from the Government stockpile."
Mr. Schmitt said that, "DOE's actions will have an adverse impact on the market
that was not planned for in the Energy Policy Act nor in the USEC Privatization
Act. This is not in the long term interest of the country because it could
displace primary production and destroy competition in the uranium market." He
added that: "DOE appears to be willfully ignoring congressionally imposed
limitations on transfers that were specifically designed to maintain the
integrity of the domestic uranium production market."
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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.
Dated: July 21, 1998 By: /s/ Daniel P. Svilar
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Daniel P. Svilar, Secretary
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