FOR RELEASE:  July 1, 1994                   CONTACT:  Lee Scurry
                                                   (202) 208-3983

        MMS AWARDS $200,000 CONTRACT TO THE STATE OF NEW JERSEY
(#40046)

     The Department of the Interior's Minerals Management Service
(MMS) has awarded a $200,000 contract to the New Jersey Department
of Environmental Protection and Energy to conduct the second phase
of a study of sand deposits offshore the state, MMS officials
announced today.

     "Locating sources of sand on the Outer Continental Shelf (OCS)
is an important component in combating coastal erosion," MMS
Director Tom Fry said.  "As MMS prepares to meet future demand for
OCS sand resources, we are working increasingly closer with
involved states.

     "This two-year study with New Jersey will examine basic
geological, economic, and environmental data on nearby federal sand
deposits that have the potential for future beach nourishment,"
said Fry.

     The study will: 1) identify New Jersey shoreline that is
experiencing the worst erosion; 2) identify the nearest suitable
sand source in federal waters; 3) compile necessary data relevant
to the sand source; and 4) investigate environmental issues related
to dredging in federal waters.  Funding for the study will be in
two $100,000 installments, with the second payment contingent on
the availability of funds.

     The project is a continuation of a 1992 cooperative agreement.

Similar efforts to evaluate marine mineral resources in federal
waters have been initiated with all other states on the East Coast
and the Gulf of Mexico.

     MMS administers federal offshore mineral programs and manages
the federal and Indian mineral royalty program.  The MMS Office of
International Activities and Marine Minerals (INTERMAR) is
responsible for the management of OCS sand resources.  For more
information contact INTERMAR at (703) 787-1300.

                              -MMS-

Subject: PR-07/06/94 Sand Resources/MMS Awards $200,000 Contract to
the State of New Jersey (#40046)