FOR RELEASE: April 20, 1995                   CONTACT: Lee Scurry
                                                   (202) 208-3983
                                    
      MMS SEEKS COMMENTS ON OFFSHORE POLICY OPTIONS (#50032)


     The U.S. Department of the Interior's Minerals Management
Service (MMS) is seeking comments on a number of policy options
for the Outer Continental Shelf (OCS) natural gas and oil
program, MMS officials announced today.

     A Call for Comment on Proposed Policy Options and
Announcement of Related Workshop was published in today's Federal
Register.  It's part of the continuing re-assessment of leasing
policies for the Central and Western Gulf of Mexico announced in
the December 7, 1993 Federal Register.  Additionally, the review
has been expanded to include MMS policies affecting tracts
already under lease. 

     "We are taking the initiative to sit down with all our
constituents to determine if there are any modifications we can
make to current MMS policies that will help us do a better job in
offshore management," said MMS Director Cynthia Quarterman, "We
are particularly interested in hearing how we can: 1) help slow
expected declines in infrastructure and production in producing
areas, 2) promote environmentally-sound development of
infrastructure in other promising areas such as deep water, and
3) continue to assure receipt of fair market value on OCS leases
for taxpayers.

     "To help us answer these questions, we're looking to States,
local governments, other federal agencies, the oil and gas
industry and environmental groups to participate in the
decisionmaking process," she said.  "No major policy changes
would be made until we've consulted with all affected parties;
and, no changes would affect our high environmental and safety
standards."

     Options under consideration include: 
     -- publication of more specific interpretive guidelines for
          the treatment of applications for royalty relief; 
     -- more flexible royalty terms on some new leases; 
     -- increased flexibility to respond to requests for
          extensions in lease terms; 
     -- modified rental and minimum bid policies; 
     -- revised bid adequacy procedures; and 
     -- coastal impact assistance.  

                                     
     "If MMS decides to adopt any of these proposals, I would
like the changes to be in place for the mid-1996 Western Gulf
sale," Quarterman said.  "However, I'm more concerned with
achieving the right balance of policies than with following any
specific time line.  Some of the options -- particularly those
involving more flexible royalty terms -- would require regulatory
changes."

     A 2-day workshop to discuss policy options will be held in
the Gulf of Mexico region in mid-June 1995.  The first day will
be devoted to an overall discussion of the various options.  The
second day will be spent on the guidelines being developed by MMS
for royalty relief on active leases.  Details will be published
in the Federal Register later this month.

     Comments should be sent to the Acting Deputy Associate
Director, Resources and Environmental Management, Minerals
Management Service (MS-4400), 381 Elden St., Herndon, VA  22070. 
Envelopes or packages should be marked "Comments on Proposed
Policy Options for the Gulf of Mexico," and should be received
within 90 days of the publication of the Notice.

                               -MMS-
Subject: PR-4/20/95 Offshore Policy/MMS Seeks Comments on
Offshore Policy Options (#50032)