INNOVATION #2


FOR RELEASE:  October 12, 1995                        CONTACT:  Tom DeRocco
                                                             (202) 208-3983
                                                          Michael L.Baugher
                                                             (303) 231-3162


               MMS ANNOUNCES $1.1 MILLION IN PROGRAMMATIC
         SAVINGS THROUGH PROCESS STREAMLINING AND NEW TECHNOLOGY
  
     The U.S. Department of the Interior's Minerals Management Service (MMS)
announced today that it is implementing the first phase of changes recommended
by a special National Performance Review Laboratory that re-engineered the
MMS's mineral lease and payor data processes.  These innovations will result
in programmatic efficiencies valued at approximately $1.1 million, when fully
implemented in 1997.  The changes will involve streamlining processes and the
use of new computer imaging technology that will increase efficiency, improve
customer service, and will eventually produce a paper-free environment for
these processes.  

     "These programmatic savings come at a critical time and will enable us
to ensure that the overall service provided by MMS will remain at its current
high level despite tight budgetary constraints."  said MMS Director Cynthia
Quarterman.   

     The Common Reference Data Reinvention Laboratory was initiated in
September 1994.  The laboratory's emphasis was on the categories and level of
information required by the oil and gas Payor Information Form (PIF), the way
it is processed, and how it may be improved.  The PIF is submitted by the
royalty payor when production begins to establish an account and identify
selling arrangements and revenue sources.     

     A three-month pilot was conducted from April - June 1995 to test the PIF
process as re-engineered by MMS.  A new Computer Output to Laser Disk imaging
system allowed the forms to be processed into the system using an electronic
image.  

     "The results of the pilot program showed that MMS was able to
dramatically reduce its processing time from 14 to 3 working days, which will
result in more timely distribution of both data and revenues to our State and
Indian customers," Quarterman said.

     "In the second phase in this process, our customers will participate in 
the redesign of the PIF itself, eliminating unneeded data fields and
simplifying the format of those that remain.  This will result in immediate
and direct administrative efficiencies for our industry customers," explained
Quarterman.  

     "In addition, the recently established Royalty Policy Committee will
consider all royalty reporting methods and requirements including electronic
reporting of information.  This should result in simplified reporting of the
information currently provided by the PIF and possibly the elimination of the
form.

     "This experience shows that Government can be improved through
reinvention, and that our employees--as resident experts--are in a position to
make important recommendations," concluded Quarterman.  "MMS will continue to
seek out and implement innovative improvements in consultation with our State,
Indian and industry customers.  Our goal is to make the agency more
efficient, more cost-effective and more responsive to our customers and the
American taxpayers."

     MMS is the federal agency that manages the Nation's natural gas, oil and
other mineral resources on the Outer Continental Shelf, and collects, accounts
for, and disburses about $4 billion yearly in revenues from mineral leases on
federal and Indian land.
  
                                   -MMS-