EXHIBIT 5.1

                                  Ina P. Kagel
                                 Attorney At Law
                       1801 CENTURY PARK EAST, 25TH FLOOR
                          LOS ANGELES, CALIFORNIA 90067
                           TELEPHONE: ( 310) 553-9009
                            FACSIMILE: (310) 553-9693





                                                  August 8, 2001




Chancellor Group, Inc.
1800 E. Sahara Boulevard
Suite 107
Las Vegas, Nevada 89104

Re:      Registration Statement on Form S-8 Covering Common Stock to
         be Issued Pursuant to the 2001 No. 2 Stock Award Plan
         -----------------------------------------------------------

Gentlemen:

         As  counsel  for  Chancellor   Group,   Inc.  (the  "Company")  I  have
participated  in the  preparation of the  Registration  Statement which is to be
filed on Form S-8 under the  Securities  Act of 1933,  as  amended,  covering an
aggregate of 750,000 of the Company's  shares of Common Stock (the  "Shares") to
be issued pursuant to the Company's 2001 No. 2 Stock Award Plan (the "Plan").  I
have also  examined  the  proceedings  taken  and the  instruments  executed  in
connection  with the  approval by the Board of  Directors  of the Company of the
Plan.

         It is my opinion  that,  when issued  pursuant to the Plan,  the Shares
will be validly issued, fully paid and nonassessable.

         I hereby  consent  to the  filing of this  opinion as an Exhibit to the
Registration Statement.

Very truly yours,

/s/ Ina P. Kagel
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INA P. KAGEL

IPK/njh