FOR RELEASE:  August 18, 1994            CONTACT:  John Barclay
                                                 (202) 208-5890


            MMS SETS AUGUST 30 INFORMATIONAL MEETING
                 FOR GAS MARKETING PILOT PROJECT (#40061)


     The Interior Department's Minerals Management Service (MMS)
has set August 30 as the date for a question-and-answer forum on
its recently announced Royalty Gas Marketing Pilot Project, MMS
officials have announced.

     The meeting, for interested gas producers, will be at the MMS
Houston Area Audit Office, 4141 N. Sam Houston Parkway E., Suite
104, Houston, TX  77032-3843.  It will begin at 10 a.m.

     The pilot program, the result of discussions between MMS and
natural gas producers, is intended to reduce paperwork and simplify
the process of royalty collection for both MMS and the industry. 
The project will involve MMS taking the Federal government's
royalty share of gas production in kind, at or near the lease, and
immediately selling it to one or more competitively chosen gas
marketers.

     The agency recently solicited volunteers for the program and
has received a favorable response from the industry.  MMS will
select pilot leases early in September from those volunteered. 
Later in the month, the agency will issue a public Invitation for
Bids to gas marketers.  MMS will enter into a contract with the
successful company or companies in November.



                              -MMS-

Subject: PR-8/18/94 Gas Marketing/MMS Sets August 30 Informational
Meeting for Gas Marketing Pilot Project (#40061)