FOR RELEASE:  December 7, 1993                         CONTACT:   Tom DeRocco
                                                               (202) 208-3983


           MMS SEEKS COMMENTS ON LEASING POLICIES, PROCEDURES (#30055)

       The Department of the Interior's Minerals Management Service (MMS)
       announced today that it is seeking comments on its leasing policies
       in the Central and Western Gulf of Mexico.

       The announcement was made in today's Federal Register.

       The Department hopes to incorporate useful suggestions into future
       leasing policies and procedures.  "We need to assure that we're
       managing the public's resources in the most efficient way possible,
       that we're encouraging competition, that we're providing all necessary
       protection for the environment and that we're obtaining fair market
       value for the taxpayer," MMS Director Tom Fry said.

       "The current leasing policies and procedures may be accomplishing these
       objectives," he said, "but we must examine the options to make sure.
       We're looking to States, industry and others to help create a viable
       leasing program that will not get ahead of the public will."

       Fry cited many changes affecting leasing in the Central and Western
       Gulf of Mexico that have occurred in the last decade.  The Outer
       Continental Shelf (OCS) program is faced with new conditions, including
       lower real oil prices, maturation of activity in the Gulf of Mexico,
       advances in 3-D seismic survey technology and a new mix of companies
       participating in lease sales.

       Those changes are prompting MMS to re-evaluate leasing policies for
       Central and Western Gulf of Mexico sales under the existing, 1992-97
       Natural Gas and Oil Resource Management Program.

                                           (more)

       Fry stressed that no major policy changes will be considered "...until
       we've heard from all the parties.  We have already heard comments on
       these complex issues, and we will consider them thoroughly.  We want to
       assure all interested parties that we are listening, and that we intend
       to work with them."

       Concerns have been raised that areawide sales may make planning and
       assessing the effects of leasing difficult for states to address and may
       exaggerate the negative effects of price volatility on communities.  Two
       alternative approaches which have been suggested include restrictions on
       tracts offered or restrictions on the number of tracts leased.  Either
       could respond to concerns that too much acreage is being offered or
       maintained in inventory.

       On the other hand, Fry noted that areawide lease sales encourage 3-D
       seismic exploration and allow companies with a variety of approaches
       and operating strategies to participate in sales.

       MMS hopes to receive comments from States, local governments, other
       Federal agencies, the oil and gas industry, environmental groups, and
       other interested individuals and groups on what policies continue to
       work well and which should be changed.  In addition to general
       observations, today's Federal Register notice requests comments on
       whether MMS should continue to offer large, contiguous areas of tracts
       each year, whether there should be restrictions on the acreage leased
       in any particular sales, whether the size of individual tracts
       should be changed, whether the minimum bid (usually $25 per acre) should
       be raised, and whether MMS should offer lower royalty rates to encourage
       exploration and development in deep-water tracts or in selected
       shallow-water tracts.

       Comments or information should be sent to the Program Director,
       Office of Program Development and Coordination, Minerals Management
       Service (MS-4430), 381 Elden St., Herndon, VA  22070.  Envelopes or
       packages should be marked "Comments on Alternative Leasing Policies
       for the Gulf of Mexico" and should be received within 60 days of the
       publication of the Notice.

                                            -MMS-

       SUBJECT: MMS seeks comments on alt. lsng.(#30055)