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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0001028269-01-500142.txt : 20020413
<SEC-HEADER>0001028269-01-500142.hdr.sgml : 20020413
ACCESSION NUMBER:		0001028269-01-500142
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20011219
ITEM INFORMATION:		Other events
FILED AS OF DATE:		20011220

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			US ENERGY CORP
		CENTRAL INDEX KEY:			0000101594
		STANDARD INDUSTRIAL CLASSIFICATION:	METAL MINING [1000]
		IRS NUMBER:				830205516
		STATE OF INCORPORATION:			WY
		FISCAL YEAR END:			0531

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-06814
		FILM NUMBER:		1819779

	BUSINESS ADDRESS:	
		STREET 1:		877 NORTH 8TH WEST
		STREET 2:		GLEN L LARSEN BLDG
		CITY:			RIVERTON
		STATE:			WY
		ZIP:			82501
		BUSINESS PHONE:		3078569271

	MAIL ADDRESS:	
		STREET 1:		877 NORTH 8TH WEST
		CITY:			RIVERTON
		STATE:			WY
		ZIP:			82501

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	WESTERN STATES MINING INC
		DATE OF NAME CHANGE:	19851229
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f8k_dec19-01.txt
<DESCRIPTION>FORM 8-K, UPDATE ON RMG 12/19/01
<TEXT>
                       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):

                      December 20, 2001 (December 19, 2001)


                                U.S. ENERGY CORP.
- --------------------------------------------------------------------------------
              Exact Name of Registrant as Specified in its Charter)

           Wyoming                      0-6814               83-0205516
- --------------------------------    --------------     -------------------------
(State or other jurisdiction          (Commission         (I.R.S. Employer
      of incorporation)                File No.)         Identification No.)


     Glen L. Larsen Building
     877 North 8th West
     Riverton, WY                                             82501
- --------------------------------------------------     -------------------------
     (Address of Principal Executive Offices)                (Zip Code)


       Registrant's telephone number, including area code: (307) 856-9271


                                 Not Applicable
- --------------------------------------------------------------------------------
               (Former Name, Former Address or Former Fiscal Year,
                          if Changed From Last Report)




<PAGE>



ITEM 5.  OTHER EVENTS

     On December 19, 2001,  U.S.  Energy Corp.  and Crested  Corp.  provided the
following  update  on the  development  activities  of  their  subsidiary  Rocky
Mountain Gas, Inc.  ("RMG"),  on RMG's  coalbed  methane  projects in the Powder
River Basin of Wyoming and Montana.

Clearmont
- ---------

     To  date,  a total of 22 wells  have  been  drilled  and  completed  on the
Clearmont,  Wyoming  properties (8 wells in the Roland coal at a depth of +/-400
feet and 14 wells in the Anderson  coal at a depth of +/-900  feet).  Dewatering
continues  on the initial six well test pod.  Additional  wells will be place on
pump and begin dewatering once a permanent water discharge permit from the state
of  Wyoming  is  received.  An  exploratory  well was  drilled  to 2,200 feet to
evaluate the deeper coals in this area;  preliminary  results  indicate  several
potentially  productive  deeper  coals and three gas-  charged  sandstones.  RMG
anticipates  development of the deeper coals will follow after the establishment
of  production  and cash flow  from the  Roland  and  Anderson  coals.  Drilling
continues  with two drilling  rigs  operation on the Clearmont  property.  CCBM,
Inc.,  a wholly  owned  subsidiary  of Carrizo Oil & Gas,  Inc.,  is funding the
initial  phase of this  drilling  program  pursuant to an agreement  between the
parties dated July 10, 2001. RMG is the operator on the project.

     RMG  recently  added  approximately  1,200  gross  acres  to the  Clearmont
properties  and  is  currently  evaluating  additional  acreage  and  production
packages. A 1,543 foot exploratory well was recently drilled on this new acreage
and it  encountered  more than 1000 net feet of coal,  including a 30-foot thick
wall coal seam.

     In order to deliver gas from the Clearmont project to end-user markets, RMG
is currently negotiating with pipeline companies in the area. Upon entering into
an agreement, RMG will go forward with the construction of the gas gathering and
compression system.

Castle Rock
- -----------

     Suncor Energy (Natural Gas) America Inc.  ("Suncor") recently completed the
$2.5 million  exploration  drilling  program on the Castle Rock properties under
the terms of the February 13, 2001 Option Agreement.  The Castle Rock properties
are located in the northeastern  portion of the Powder River Basin of Montana. A
total of 17 wells were drilled. Five of these were drilled as a pilot program to
evaluate the commercial  potential of the coast in the Fort Union  Formation (at
approximately 1,000 feet) on the southern portion of he property. All five wells
have  been  placed  on pump  and are in the  initial  phase of  dewatering.  The
remaining 11 wells were drilled on various  portions of the property to evaluate
the  reservoir  quality of the  numerous  coals know to exist down to a depth of
1,300 feet.  Extensive  core,  mud and  electric  log data was obtained on these
wells which is currently in the process of being fully  evaluated.  Results from
these wells will be used to help  determine the next phase of exploration on the
property.


                                        2

<PAGE>


     After  Suncor  evaluates  the  results of the  recently  completed  17 well
program,  its  management  has until  February 8, 2002 to  exercise  its option.
Should Suncor decide to exercise and complete the agreement, Suncor will pay RMG
an additional cash  consideration  and fund $3,000,000 of a $4,000,000  drilling
program on the  property.  Upon exercise of the option,  RMG's working  interest
would be  reduced  to 12.5%  subject to  further  reductions  under the  Carrizo
agreement.



                                   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.

                                           U.S. ENERGY CORP.


Dated: December 20, 2001               By:    /s/   Daniel P. Svilar
                                           -------------------------------------
                                           DANIEL P. SVILAR, Assistant Secretary



                                        3

<PAGE>



</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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