January 6, 1995


The New York Times
Editor-In-Chief
229 W. 43rd Street
New York, NY  10036

Dear Editor:

The Times recently ran a series of stories on the efforts of
major energy firms to drill for oil in deep waters of the Gulf of
Mexico.  The phenomenal early success of these efforts, the paper
implied, bodes well for both the oil industry and the American
consumer.

It's good news for the American taxpayer, as well.  A healthy
share of the profits from wells in U.S. national waters goes
straight through the Interior Department's Minerals Management
Service (MMS) and into the Treasury.

The MMS oversees natural gas and oil activities on the Outer
Continental Shelf (OCS) and collects, audits and distributes
royalties from offshore and onshore wells on federal and Indian
lands.  It's a small agency, but this David makes a Goliath-sized
contribution to the federal coffers:  more than $4 billion per
year, $3 billion of that from the OCS.

Some of the money the MMS collects from offshore drilling and
production goes into historic preservation projects.  A good
share goes to the Land and Water Conservation Fund, which
provides money for acquisitions of National Park lands as well as
state and local scenic and recreational facilities.  Money from
offshore natural gas and oil production, for example, funds
inner-city neighborhood parks in Manhattan and green belt bike
paths along the river in Boise, Idaho.  Offshore production
provides benefits even for states and cities far from the Gulf
Coast.

Natural gas is the cleanest burning fossil fuel we have.  About
3/4 of the energy produced on the OCS is in the form of natural
gas.  In fact, about a quarter of this country's natural gas
supply comes from the OCS.  The MMS has worked closely with the
offshore industry in the development and evaluation of new
technologies for deepwater operations.  The MMS also conducts
regular, unannounced inspections of natural gas and oil
installations on the OCS to assure compliance with safety and
environmental protection requirements.

Increased activity in the Gulf's deep waters means less
dependence on imports for the nation's needed energy, less money
out of the pockets of taxpayers and more financial and aesthetic
benefits for all Americans.    

                              Sincerely,



                              Cynthia Quarterman
                              Acting Director