FOR RELEASE:  March 16, 1993             CONTACT:   Tom DeRocco
                                                 (202) 208-3983
                                                          or
                                                 Barney Congdon
                                                 (504) 736-2595

                MMS ANNOUNCES BOUNDARY AGREEMENT
                      WITH STATE OF ALABAMA (#30013)


     The Minerals Management Service (MMS) of the Department of
the Interior today announced that the Administration and the
State of Alabama have officially resolved a long time
Federal/State offshore boundary dispute.

          The U.S. Supreme Court recently granted a joint motion
of the State and the Administration for a supplemental decree
which fixes Alabama's seaward boundary in the Gulf of Mexico at
its 1983 location.

     The agreement establishes a permanent, consistent boundary
between State and Federal waters in the Gulf.  The agreed-to
division is the same as one in effect when the existing oil and
gas leases were issued, and requires no adjustment in lease
boundaries or royalties paid into the State and Federal Treasury.

     "We're very pleased that this compromise resolves a
disagreement which had presented continuing problems for leasing
and management of oil and gas reserves offshore Alabama," Acting
MMS Director Carolita Kallaur said.  "This conclusion will lead
to healthy and productive coordination between Federal and State
agencies.

     "The successful resolution of this issue has the potential
to free up significant natural gas reserves by assuring a climate
of legal stability," Kallaur said. "This decision will contribute
to President Clinton's goal of increasing the nation's use of
this clean, alternative fuel."
                              -MMS-

BOUNDARY AGREEMENT WITH ALABAMA(#30013)