EXHIBIT 99.1

                      CRESTED CORP. AUDIT COMMITTEE CHARTER

                              Adopted May 30, 2000


               The  charter and powers of the Audit  Committee  of the
          Board of Directors (the "Audit Committee") shall be:

          * Overseeing  that management has maintained the reliability
          and  integrity  of the  accounting  policies  and  financial
          reporting and disclosure practices of the Company;

          * Overseeing  that management has established and maintained
          processes  to assure  that an  adequate  system of  internal
          control is functioning within the Company;

          * Overseeing  that management has established and maintained
          processes  to  assure  compliance  by the  Company  with all
          applicable laws, regulations and Company policy;

          The Audit Committee shall have the following specific powers
          and duties:

          1.  Holding such  regular  meetings as may be necessary  and
          such  special  meetings as may be called by the  Chairman of
          the Audit  Committee  or at the  request of the  independent
          accountants;

          2. Creating an agenda for the ensuing year;

          3. Reviewing the performance of the independent  accountants
          and  making   recommendations  to  the  Board  of  Directors
          regarding the  appointment or termination of the independent
          accountants;

          4. Conferring with the  independent  accountants  concerning
          the scope of their  examinations of the books and records of
          the Company and its  subsidiaries;  reviewing  and approving
          the  independent   accountants'  annual  engagement  letter;
          annual  audit  plans  and  budgets;  directing  the  special
          attention  of the  auditors  to  specific  matters  or areas
          deemed by the  Committee  or the  auditors  to be of special
          significance;  and  authorizing the auditors to perform such
          supplemental  reviews  or audits as the  Committee  may deem
          desirable;

          5. Reviewing the management and the independent  accountants
          significant  risks  and  exposures,   audit  activities  and
          significant audit findings;


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          6.  Reviewing  the  range  and cost of audit  and  non-audit
          services performed by the independent accountants;

          7.  Reviewing  the  Company's   audited   annual   financial
          statements and the independent accountants' opinion rendered
          with  respect  to  such  financial   statements,   including
          reviewing the nature and extent of any  significant  changes
          in accounting principles or the application therein;

          8.  Reviewing  the  adequacy  of the  Company's  systems  of
          internal control;

          9.  Obtaining  from  the   independent   accountants   their
          recommendations   regarding   internal  controls  and  other
          matters relating to the accounting  procedures and the books
          and  records  of  the  Company  and  its   subsidiaries  and
          reviewing the correction of controls deemed to be deficient;

          10. Providing an independent,  direct communication  between
          the Board of Directors and independent accountants;

          11.   Reviewing  the  adequacy  of  internal   controls  and
          procedures  related to executive  travel and  entertainment,
          including use of Company-owned aircraft;

          12. Reviewing with appropriate Company personnel the actions
          taken  to  ensure  compliance  with  the  Company's  Code of
          Conduct and the results of  confirmations  and violations of
          such Code;

          13.  Reviewing  the  programs  and  policies  of the Company
          designed  to  ensure  compliance  with  applicable  laws and
          regulations  and monitoring the results of these  compliance
          efforts;

          14. Reviewing the procedures established by the Company that
          monitor  the  compliance  by the  Company  with its loan and
          indenture covenants and restrictions;

          15. Reporting through its Chairman to the Board of Directors
          following the meetings of the Audit Committee;

          16.  Maintaining  minutes or other  records of meetings  and
          activities of the Audit Committee;

          17.  Reviewing  the  powers of the  Committee  annually  and
          reporting  and  making   recommendations  to  the  Board  of
          Directors on these responsibilities;


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          18.  Conducting  or  authorizing   investigations  into  any
          matters    within   the   Audit    Committee's    scope   of
          responsibilities.  The Audit Committee shall be empowered to
          retain independent counsel, accountants, or others to assist
          it in the conduct of any investigation;

          19.  Considering  such  other  matters  in  relation  to the
          financial  affairs of the Company and its  accounts,  and in
          relation  to  external  audit of the  Company  as the  Audit
          Committee may, in its discretion, determine to be advisable.


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