FOR RELEASE: February 9, 1995      CONTACT:  Lee Scurry
                                             (202) 208-3983
                                             Robin Cacy
                                             (907) 271-6070


             SIMULTANEOUS LEASE SALE OFFSHORE ALASKA CANCELLED


     The Chukchi Sea and Hope Basin lease sales offshore Alaska's
north coast have been deferred by the Minerals Management Service
(MMS) due to concerns raised over natural resources and limited
interest by industry, Interior Assistant Secretary for Land and
Minerals Management Bob Armstrong announced today.

     MMS issued a Request for Interest and Comments last
September on pursuing a simultaneous sale with the Russian
Federation.  The U.S. portion of the simultaneous sale consisted
of proposed sale 148 in the Chukchi Sea Planning Area and
proposed sale 159 in the adjacent Hope Basin Planning Area.

     MMS received 17 written comments during the comment period,
which ended December 5, 1994. Two petroleum companies generally
supported the sale, but stated they had no plans to participate
in a sale at this time. Alaska Native groups and environmental
organizations expressed concerns about potential adverse affects
and opposed the proposed sale.

     "Based on our analysis, which includes the concerns raised
and the limited interest expressed by industry," said MMS Acting
Director Cynthia Quarterman, "we recommended that the planning
process for the simultaneous sale be stopped and that sales in
the Chukchi Sea and the Hope Basin be deferred.

     "Constituent interests and comments play a significant role
in our decisionmaking process.  We do listen, and in this case,
it makes sense to cancel the sales at this time," she said.  "MMS
will continue to promote the sharing of scientific and
technological information between the U.S. and the Russian
Federation, and to encourage cooperative efforts related to
assessing offshore mineral operations."

     Armstrong made the announcement at the Alaska Lands Act
Coordinating Committee's meeting in Anchorage, Alaska.

     MMS is the federal agency that manages and regulates the
nation's natural gas, oil and other mineral resources on the
Outer Continental Shelf, and collects and disburses revenues from
offshore federal mineral leases and from onshore mineral leases
on federal and Indian lands.

                                  --MMS--