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:

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

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

o    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;

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;

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.