FOR RELEASE: April 17, 1995                  CONTACT: Lee Scurry
                                                    (202)208-3983


           MMS AND SHELL SETTLE LONGSTANDING CLAIMS     
        THROUGH ALTERNATIVE DISPUTE RESOLUTION (#50030)


     The U.S. Department of the Interior's Minerals Management
Service (MMS) has agreed with Shell Oil Company to settle a
longstanding and complex case regarding Outer Continental Shelf
(OCS) natural gas and oil leases, MMS officials announced today.

     "This agreement signifies a major accomplishment for this
Administration by taking a first step in resolving issues that
have long bedeviled the Federal Government," said MMS Director
Cynthia Quarterman.  "In this case, we have been able to
reconcile very controversial and divisive issues in an amicable
and creative manner. 

     "Our arrangement is to trade claims," Quarterman explained.
"Shell has agreed to drop its claims against the government
regarding breach of contract and unconstitutional takings of its
OCS leases offshore North Carolina, Florida and Alaska.  In
exchange, the Interior Department will drop royalty claims on
monies Shell received under two gas contract settlements
resolving pricing disputes with Shell's purchasers.

     "I am a strong advocate for alternative dispute resolution
techniques and hope other companies are encouraged to follow
Shell in the spirit of negotiation.  It's always advantageous to
resolve disputes directly between the parties rather than through
the courts," she said.  "More importantly, it is our obligation
to negotiate in the best interest of the American taxpayer --
this agreement will save American taxpayers and consumers money."

     MMS is the federal agency that manages the nation's natural
gas, oil and other mineral resources on the OCS, and collects and
disburses about $4 billion yearly in revenues from offshore
federal mineral leases and from onshore mineral leases on federal
and Indian lands.

                            --MMS--

Subject: PR-4/17/95 Shell/MMS & Shell Settle Longstanding Claims
through Alternative Dispute Resolution (#50030)