FOR RELEASE:  August 17, 1994                CONTACT: Lee Scurry
                                                    202-208-3983
                                                         or
                                                  Barney Congdon
                                                    504-736-2595

                     HIGH BIDS TOTAL $60 MILLION
              IN WESTERN GULF OF MEXICO LEASE SALE 150 (#40058)


     High bids totaling $60,399,786 were offered today in a federal
offshore natural gas and oil lease sale in the Western Gulf of
Mexico.  A total of 57 companies participated in Sale 150, held in
New Orleans, Louisiana.

     The Department of the Interior's Minerals Management Service
(MMS) received 266 bids on 210 tracts, comprising approximately
1.09 million acres located offshore Texas and Louisiana.  The total
of all bids submitted was $73,633,488.

     "This amounts to the largest number of bids received in a
Western Gulf of Mexico sale in four years," said MMS Acting
Director Cynthia Quarterman.

     "It's an outstanding example of balancing environmental
protection with energy resource development," said Quarterman. 
"The 35.9 million acres in this planning area contain not only
natural gas and oil, but also the Flower Garden Banks National
Marine Sanctuary, which is managed by the National Oceanic and
Atmospheric Administration (NOAA).

     "Working with all interested parties to successfully integrate
environmental values into our mission is one of our top
priorities," she said.

     The Department's Five-Year Plan selects offshore areas with
the highest potential for recovery of hydrocarbon resources while
balancing environmental concerns and providing protection for
marine and coastal habitats.  Estimated recoverable hydrocarbons
expected to be developed through Sale 150 are about 40 million
barrels of oil and 0.65 trillion cubic feet of natural gas.
  
      The highest bid received was $2,104,704, submitted by Enron
Oil and Gas Company for Matagorda Island block 586, located
approximately 30 miles offshore Texas in Federal waters.  The
greatest number of bids received on a single block was four --
received on both Mustang Island block 810 and High Island block 94.

     On blocks receiving less than three bids, the highest bid will
go through an evaluation process before a lease is awarded to
assure that taxpayers receive fair market value.  If a block
receives three or more bids it is assumed the high bid represents
fair market value.  Each block is approximately nine square miles.

                             -MMS-     

Subject: PR-8/17/94 Sale 150/High Bids Total $60 Million in Western
GOM Sale 150 (#40058)