FOR RELEASE:  July 20, 1995                  CONTACT: Lee Scurry
                                                  (202) 208-3983

MMS ANNOUNCES ROYALTY-IN-KIND MARKETING PILOT WORKSHOPS

     The U.S. Department of the Interior's Minerals Management
Service (MMS) will hold three one-day workshops to discuss ways
to expand the ongoing pilot program for collecting Federal
royalties in-kind, MMS officials announced.

     The workshops will be held: August 22 in Houston, August 24
in Denver, and September 15 in New Orleans.  Further information
about the workshops, which will be open to the public, was
published in the Federal Register on Wednesday, July 19.

     MMS initiated its Gas Marketing Pilot in the Gulf of Mexico
on January 1, 1995.  For the one-year project, gas is being taken
at or near the lease and sold to competitively chosen gas
marketing companeis.  Preliminary assessment of the pilot
indicates that it will be a successful effort.

     As a first step in pursuing a possible expansion, the
workshops will explore a variety of topics, including:

     --   Prospects for in-kind collection of oil royalties.
     --   Selection of areas for future royalty-in-kind pilot(s).
     --   Non-jurisdictional pipelines in taking royalty gas.
     --   Aggregation of leases and the use of alternate bid
          procedures.
     --   Lessee responsibilities in providing Federal in-kind
          gas royalties.
     --   Appropriate index prices in gas royalty in-kind.
     --   Alternative contract terms.
     --   Audit rights in contracts with gas marketers,
          agreements with lessees.
     --   Gas sales contract and Volunteer Agreement as the basis
          for royalty in-kind regulations.
     --   Conditions on auction participation and structure.

     Registration should be made no later than August 4.  To
register, contact: Ruby Minor or LaVerne Gailliard by phone at
202/208-3398 or 202-208-3822, by facsimile at 202/208-3118, or by
mail at MMS, Mail Stop 4013, 1849 C Street, NW; Washington, DC
20240.  For more information, call: Hugh Hilliard at 202/208-3398
or John Bratland at 202/208-3979.

                                 -MMS-