FOR RELEASE: September 24, 1993         CONTACT:  Tom DeRocco
                                                  (202) 208-3983
                                                       or
                                                  Mike Baugher
                                                  (303) 231-3162

MINERALS MANAGEMENT SERVICE AWARDS NEW MEXICO FUNDS FOR STATE'S
ASSISTANCE WITH AUDITS (#30044)

     The Department of the Interior's Minerals Management Service
(MMS) today announced that it has entered into an agreement with
the State of New Mexico that will permit the State to perform
audits of mineral leases on federal public lands within its
boundaries.

     "The agreement provides funds for a work plan under Section
205 of Federal Oil and Gas Royalty Management Act (FOGRMA) of
1982," according to MMS Director Tom Fry.  Under the agreement,
State officials will perform audits and other related reviews on
federal onshore gas, oil, coal and other solid minerals of
geothermal leases located in New Mexico.

     The MMS's Cooperative and Delegated Audit Program enables
participating states to supplement MMS's audit coverage of revenues
from leases within the State.  MMS reimburses states for the costs
of audits, such as salaries and travel expenses.  Other
participants include California, Colorado, Louisiana, Montana,
North Dakota, Oklahoma, Texas, Utah and Wyoming.

     Four Indian tribes, the Navajo Nation, the Ute, the Southern
Ute, and the Ute Mountain Ute, are similarly reimbursed for audit
work on their respective tribal lands under Section 202 of FOGRMA.

     "Last year, MMS's Royalty Management Program awarded more than
$4 million to states for auditing federal leases," Fry said. 
"Working together in this cooperative audit program, we can ensure
that the states, Indian tribes and the federal government continue
to receive an accurate accounting of the revenues to which they are
entitled."

     MMS is responsible for collecting, accounting for, auditing
and disbursing revenues associated with mineral leases on federal
and Indian lands.  The agency handles nearly $4 billion in revenues
each year.

                           --MMS-RMP--
Subject: PR-9/24/93 Sec. 205/MMS Awards NM Funds for State's
Assistance with Audits (#30044)