FOR RELEASE:  January 27, 1994           CONTACT:  Robin Lee Cacy
                                                   (907) 271-6070
                                                            or
                                                      Tom DeRocco
                                                   (202) 208-3983


  SHELIKOF STRAIT DEFERRED FROM PROPOSED OCS SALE 149 (#40005)


     The Shelikof Strait area will be deferred from a proposed
federal offshore oil and gas lease sale in the Cook Inlet
Planning Area, the U.S. Interior Department's Minerals Management
Service (MMS) announced today.

     "As part of the public comment process on development of the
sale proposal, we have been working closely with local government
and the general public to better understand and address their
concerns," said MMS Director Tom Fry.

     "I  believe that significant progress has been made in
addressing the public's concerns," he said.  "Consistent with
this Administration's policy to resolve conflicts, further
progress is possible if we are able to concentrate our efforts in
the Cook Inlet area."  

     The revised proposed sale area in the draft environmental
impact statement (EIS) would encompass 403 blocks covering about
2.0 million acres.  In response to concerns expressed about
potential environmental effects in other portions of the proposed
sale area, the draft EIS will also evaluate alternatives to defer
additional portions of the proposed sale area and special
mitigating measures, Fry said.

     The area to be considered in the draft EIS compares with 3.7
million acres in the initial proposal.  As a result of today's
decision, the draft EIS will be delayed until later this year.

                              -MMS-

Subject: PR-1/27/94 Sale 149/Shelikof Strait Deferred from Proposed
OCS Sale 149 (#40005)