FOR RELEASE:  October 31, 1994              CONTACT:  Tom DeRocco
                                                   (202) 208-3983

    MMS ROYALTY MANAGEMENT PROGRAM NETS $255 MILLION THROUGH
            SPECIAL AUDIT EFFORTS DURING FY 94 (#40083)

     The Department of the Interior's Mineral Management Service
(MMS) today announced that it collected more than $255 million
through compliance efforts including special audits and settlements
during the 1994 fiscal year which ended September 30, 1994.

     MMS collects, accounts for and disburses revenues from
companies that lease and produce minerals from federal and Indian
lands. 

     "MMS has had the biggest year ever in terms of the amount of
money collected through special audits and settlements," said
Acting MMS Director  Cynthia Quarterman.  "This is a significant
event and a clear indication that our aggressive compliance program
is literally 'paying off.'  Over the past 12 years, we've collected
more than $1.2 billion through our comprehensive audit program. 
This year's collection equals more than 20 percent of that figure."

     Quarterman noted that because of auditing activities conducted
by MMS, states and Indian tribes, substantial amounts of money came
from settlements reached with companies.  "This administration has
made a commitment to utilizing settlements as a means of resolving
long-standing disputes and collecting money long overdue.  Of the
$225 million collected this past fiscal year, about $190 million
came from settlements," she said.

     "Settlements are important in resolving legitimate royalty
disputes," explained Quarterman, "Involving, in many instances,
disagreements on the interpretation of MMS rules.  In dealing with
complex technical issues with considerable litigation risk, a
settlement may be in everyone's best interest.

     "If we're dealing with a recurring issue that needs judicial
clarification, or where the courts have clearly ruled in our
favor," Quarterman said, "we simply won't settle.  These agreements
often exclude issues which MMS or the companies may wish to resolve
through other means, such as litigation."

     Quarterman also praised state and Indian tribal auditors for
the auditing efforts they perform under cooperative agreements with
MMS.  "The 10 states and eight Indian tribes with whom we have
these agreements re very effective in their auditing activities.

     "With more than 80,000 federal and Indian leases," concluded
Quarterman, "MMS has a massive job to do, but we're working closely
with industry, and state and tribal officials to do better.  MMS is
striving to improve its collection efforts by not only resolving
long-standing issues, but by reaching out to its constituents on
rulemakings in advance to avoid future confrontation and
litigation."

                              -MMS-
Subject: PR-10/31/94 RMP/MMS RMP Nets $255M Through Special Audit
Efforts During FY 94 (#40083)