FOR RELEASE:  February 23, 1995         CONTACT:  Michael Baugher 
                                                   (303) 231-3162
                                                       or
                                                      Tom DeRocco
                                                   (202) 208-3983

                   GOVERNMENT OFFERS MEDIATION SERVICES 
                         TO SETTLE ROYALTY ISSUES

     The U.S. Interior Department's Minerals Management Service
(MMS) today announced the start of a pilot project that offers
mediation services to resolve royalty disputes.

     "Historically, disputes have often been resolved through
costly and time-consuming litigation," said Acting Director
Cynthia Quarterman.  "MMS has found that many of the issues being
litigated are better resolved through alternative dispute
resolution (ADR) techniques such as mediation.  By using ADR, we
minimize delays in resolving disputes and decrease the
considerable costs in pursuing litigation.  That adds up to
better government services for the American public." 

     Quarterman said this pilot project would address only
royalty-based appeals.  "We're looking for interested parties to
join in the ADR process as well as mediators," she said.

     Mediation is a facilitated form of negotiation.  In
mediation, a neutral third party--the mediator--holds a series of
joint sessions and separate caucuses with the parties to assist
them in reaching an agreement.  Mediation is private, voluntary,
non-binding, and confidential.

     Specific goals of the ADR pilot project are to:
          -    reduce costs;
          -    streamline administrative processes; 
          -    expedite resolution of administrative appeals; and
          -    ensure better compliance.

     "MMS has made a firm commitment to ADR mechanisms because
they offer a better forum for discussing and resolving MMS policy
issues," declared Quarterman.  "ADR also provides an opportunity
for improving relationships between MMS and its royalty payors,
and expanding options for resolving disputes."

     Appellants who wish to apply for the ADR Pilot should submit
in writing:

          -    the points at issue;
          -    a proposed resolution, which may include a
               monetary offer;
          -    a Statement of Reasons or explanation showing why
               MMS should consider the ADR pilot to resolve the
               issues;
          -    the MMS docket number of the relevant appeal and
               any associated bill numbers;
          -    what type of ADR you wish to engage in: 
               mediation, non-binding arbitration, or fact
               finding; and
          -    why you want to use third party ADR.

     MMS and the payor must agree on the third party neutral
mediator, or may request a neutral organization to propose
mediators.   

     Applications to participate in the pilot or to serve as a
mediator should be submitted to:  Chief, Office of Enforcement,
Minerals Management Service, Royalty Management Program, P.O. Box
25165, MS 3030, Denver, CO 80225-0165.
     
     The ADR program was first announced in a June 13, 1994,
Federal Register notice and is being advertised through a "Dear
Payor" letter.  Cases for the pilot program must be selected by 
September 30, 1995, after which MMS will review the project and
decide whether to continue the use of third party neutrals and
the conditions for such use.

     MMS is the federal agency that manages the nation's natural
gas, oil and other mineral resources on the Outer Continental
Shelf, and collects and disburses revenues from offshore federal
mineral leases and from onshore mineral leases on federal and
Indian lands.

                                  -MMS-