FOR RELEASE:  August 7, 1995                CONTACT:  Tom DeRocco
                                                   (202) 208-3983
                                               Michael L. Baugher
                                                    (303)231-3162

              MMS SEEKS COMMENTS ON PROPOSED ALLOWANCE RULES 
                           FOR OIL, GAS AND COAL

     The Department of the Interior's Minerals Management Service
(MMS) announced today that it is seeking comments on proposed
amendments to streamline regulations regarding allowance rules
for oil, gas and coal; the notice appeared in the August 7
edition of the Federal Register.
 
    "This is a first step in alleviating regulatory burdens
associated with allowances.  These proposed rules represent the
joint efforts of a study group established over a year ago and
comprised of MMS, states, tribes and industry representatives,"
said MMS Director Cynthia Quarterman.

     The proposed rules modify the requirements for filing forms
for transportation and processing allowances for oil and gas, and
transportation and washing allowances for coal.

     Quarterman noted that under its charter, the study group did
not consider eliminating allowance form reporting as an option,
but that in a more recent development, the Federal Gas Valuation
Negotiated Rulemaking Committee recommend eliminating allowance
forms altogether for Federal gas valuation purpose.  "MMS
proceeded with publishing the proposed rules because they cover
oil, coal, and non-methane gas which were not considered by the
Negotiated Rulemaking Committee," she said.

     Comments will be accepted until October 6, 1995.  Written
comments regarding the proposed rule should be mailed or
delivered to Minerals Management Service, Royalty Management
Program, Rules and Procedures Staff, Federal Center, Denver,
Colorado,  80225-0165.

     MMS is the federal agency responsible for managing the
nation's natural gas, oil and other offshore mineral resources,
and collects and disburses about $4 million yearly in revenues
from offshore mineral leases and from onshore mineral leases on
federal and Indian lands.

                                   -MMS-