FOR RELEASE:  May 20, 1994             CONTACT: Thomas C. DeRocco
                                                (202) 208-3983
                                                       or
                                                Michael L. Baugher
                                                (303) 231-3162

             DEPARTMENT OF THE INTERIOR PRESENTS ANNUAL
        STEWARDSHIP AWARDS TO TOP MINERAL RESOURCE COMPANIES
(#40032)

       The Department of the Interior honored four American mineral
resource companies today for their outstanding business
performances with the federal government during the last year.

       El Paso Natural Gas Company, Columbia Gas Development
Corporation, Dugan Production Corporation and Jerome P. McHugh and
Associates were presented the Secretary of the Interior's Mineral
Revenues Stewardship Awards at the 1994 North American Petroleum
Accounting Conference in Dallas, Texas. 

        "It is important to recognize these companies for their
achievements over the last year," Minerals Management Service
Director Tom Fry said.  "Their professionalism has contributed to
the success of the partnership between the federal government and
industry to help serve our Nation's energy needs.

       "While many companies maintain particularly good records in
meeting payment and reporting responsibilities, these four
companies are examples of performance excellence.  They were the
best," said Fry. "Their dedicated effort saves the American
taxpayer money and assists us in meeting our obligation to manage 
the revenues from mineral resources of our Nation's public lands
responsibly."

       Since 1987, the Interior Department has been commending
exceptional performances by companies that report production and
pay royalties for federal and Indian minerals leases to the
Minerals Management Service's Royalty Management Program. More than
1,600 companies submit reports of mineral sales and production and
pay royalties for minerals that are sold or removed from these
leases. 

       The awards are given to one large and one small company in
each of two categories: production reporting and royalty reporting.
They are based on the accuracy and timeliness of submissions to
MMS, as well as cooperation in problem resolution and other actions
to improve the process.

       During Fiscal Year 1993, El Paso Natural Gas Company of El
Paso, Texas (for the second consecutive year), and Columbia Gas
Development Corporation of Houston, Texas, recorded the lowest
error rates among royalty payors in their size categories.   

       Among production reporters, Dugan Production Corporation of
Farmington, New Mexico, and Jerome P. McHugh and Associates of
Denver, Colorado, had the lowest error rates.

       Through its Royalty Management Program, the Interior
Department's Minerals Management Service is responsible for
collecting, accounting for and distributing revenues associated
with minerals from federal onshore and Outer Continental Shelf
lands--an amount that totalled $4 billion in 1993. States having
federal onshore leases within their borders receive approximately
50 percent of the revenues, except for Alaska, which receives 90
percent. States adjacent to certain federal offshore tracts also
receive a share of those revenues.

       The MMS is also charged with similar responsibilities for
revenues from minerals leases on Indian lands--more than $160
million in 1993. Indian tribes and individual allottees receive 100
percent of the royalties derived from their lands.

                            --MMS-RMP--

Subject: PR-5/20/94 Stewardship Award/D.O.I. Presents Annual
Stewardship Awards to Top Mineral Resource Companies (#40032)