FOR RELEASE:  November 2, 1994                CONTACT:  Tom DeRocco
                                                     (202) 208-3983

        OCS POLICY COMMITTEE SETS UP OPA 90 SUBCOMMITTEE (#40085)


      The Outer Continental Shelf (OCS) Policy Committee today
approved establishment of a subcommittee to assist in recommending
solutions to implementing the financial responsibilities section of
the Oil Pollution Act of 1990 (OPA 90), under jurisdiction of the
Minerals Management Service (MMS).  Assistant Secretary of the
Interior for Land and Minerals Management Bob Armstrong made the
request to the Committee meeting in McLean, VA November 1 and 2.

      The Committee, formed under the Minerals Management Advisory
Board, advises the Secretary of the Interior on issues related to
offshore minerals management, including the leasing and production
of offshore natural gas and oil.  Members of the Committee, who are
appointed by the Secretary, include representatives from each
coastal state, the gas and oil industry, the environmental
community, small business, marine mining, fisheries, local
government, and ex officio members from the Departments of
Commerce, Defense, State, Transportation, and Energy, and the
Environmental Protection Agency.

      MMS is responsible for promulgating regulations to implement
Section 1016(c) of OPA `90, which requires evidence of financial
responsibility for offshore facilities.  Section 1016(c) requires
parties responsible for facilities meeting the definition of
"offshore facility" to demonstrate that they can pay the costs of
cleanup and damages caused by an oil spill; the law sets the level
of financial responsibility at $150 million.

      Noting that implementation of OPA's financial responsibility
provisions could potentially result in significant economic impacts
on a wide range of industries, facilities and small businesses,
Armstrong asked the Committee to assist MMS as it grapples with the
issues.

      "Given the potential magnitude of the impact of these
regulatory issues, I believe it is important for the Committee to
provide us with their advice and recommendations to resolve them in
a fair and equitable manner," said Armstrong.  "To the extent that
any of these issues cannot be reasonably resolved through our
administrative process, I ask the Committee to help us consider the
most appropriate legislative solution.

      "The goal of MMS has been and always will be to meet the
spirit and intent of the Act without placing undue burdens on the
private sector," said Armstrong.  "The diverse interests and points
of view embodied in the OCS Policy Committee make this group a
logical choice to help MMS."

      Armstrong told the Committee that the Interior Department's
Solicitor is completing an analysis of the OPA statute and
legislative history which is expected to be available later this
month.  "We have requested a formal legal opinion that will address
the Department's latitude in developing regulations," said
Armstrong.

      "We've asked the Solicitor to examine three issues critical
to writing a rule that embodies OPA principles without imposing
onerous financial burdens on large segments of our national
economy," he declared.  The issues are:

      -- What facilities fall within the definition of an "offshore
facility" and are, therefore, subject to OPA financial
responsibility requirements?

      -- Can the level of financial responsibility that an offshore
facility must demonstrate be based on the pollution risk it
represents?

      -- Can facilities that handle small quantities of oil and are

therefore a minimal risk to the environment be exempted from the
financial responsibility requirements?

      According to Paul Kelly, chairman of the OCS Policy
Committee, "I'm happy MMS recognizes the difficulties we see in
these requirements and is taking an active role in resolving them. 
We are pleased to be able to play a part in seeking reasonable
solutions."

      Kelly will appoint subcommittee members within the next
month.  Armstrong asked that the subcommittee report back to the
full Committee their recommendations at the Spring 1995 meeting.


                                        -MMS-

Subject: PR-11/02/94 OPA 90/OCS Policy Committee Sets Up OPA 90
Subcommittee (#40085)