FOR RELEASE:  August 23, 1994                 CONTACT:  Tom DeRocco
                                                     (202) 208-3983
                                                           or
                                                 Michael L. Baugher
                                                     (303) 231-3162

         MMS ISSUES ADVANCE NOTICE OF PROPOSED RULEMAKING 
              FOR INDIAN GAS VALUATION REGULATIONS (#40062)

    The Department of the Interior's Minerals Management Service
(MMS) is considering amendments to its regulations regarding the
valuation for royalty computation purposes of natural gas produced
from Indian oil and gas leases.

    In the August 4 edition of the Federal Register, the MMS
invites comments for consideration in development of future
regulations. Among the specific valuation issues for which MMS
requests comments are: dual accounting, major portion analysis and
valuation of gas sold under percentage-of-proceeds contracts. 

    Comments will be accepted until October 3, 1994, and should be
addressed to the Minerals Management Service, Royalty Management
Program, P.O. Box 25165, MS 3901, Denver, CO 80225-0165.

    "We believe that the regulations can be amended to provide
easier and more consistent application, and to better reflect
recent and continuing changes in both the industry and the
marketplace," said acting MMS Director Cynthia Quarterman. "They
can help to fulfill the Department of the Interior's trust
responsibility by assuring that Indian Tribes and allottees will
receive the maximum revenues to which they are entitled from their
mineral resources."

    The MMS is responsible for the collection, accounting for and
disbursement of nearly $4 billion annually in mineral revenues from
Federal and Indian lands.  In recent years more than $150 million
annually in mineral revenues have been collected from Indian
leases.  MMS also administers Federal natural gas, oil and mineral
leasing, exploration and production on the Outer Continental Shelf.


                              -MMS-RMP-

Subject: PR-08/23/94 Gas Valuation/MMS Issues ANPR for Indian Gas
Valuation Regulations (#40062)