FOR RELEASE:   September 26, 1995           CONTACT:  Tom DeRocco
                                                   (202) 208-3983
                                                   Barney Congdon
                                                   (504) 736-2595
                                     
                   MMS APPROVES NEW CHEVRON EXPLORATION
                          WELL OFFSHORE PENSACOLA

     The Minerals Management Service (MMS) yesterday approved
Chevron U.S.A. Inc.'s revised plan to drill an exploration well
for natural gas 26.4 miles offshore Pensacola, Florida, in a
water depth of 244 feet.

     MMS granted approval for the plan after consultation with
the State of Florida, the National Marine Fisheries Service, and
the U.S. Fish and Wildlife Service in Panama City.  Chevron filed
this revised plan, seeking MMS approval in March 1995.  The well
will be drilled to test the norphlet formation at this site.  The
norphlet formation is a prolific gas production zone first found
offshore Alabama that extends a considerable distance into waters
offshore Florida.  

     MMS granted approval for this well on the area called Destin
Dome Block 57 only after requiring:

          that Chevron have a standby response boat with oil
          recovery equipment on site in the case of an accidental
          oil spill from fuel transfer operations;

          that a survey of the ocean floor be done to
          characterize sea life on the bottom and provide for its
          protection;

          that Chevron have an up-to-date oil spill contingency
          plan; and, 

          that the rate of discharge of drilling muds and
          cuttings from the drilling of the well be controlled.


     MMS also conducted a thorough environmental review both of
the original plan in 1987 and this revised plan.  The latest
environmental assessment analyzed effects on fisheries, coastal
resources, biological communities, socioeconomic effects, other
resources and the chance of an oil spill.

     This revised plan moved the well site 350 meters northwest
of a site that had been approved by MMS and the State of Florida
in 1987.

     In addition, Chevron had to obtain a water discharge permit
and air emissions permit from EPA before proceeding.

     Chevron may begin drilling this exploratory well in the very
near future, and it will take approximately 150 days.  It will be
done using a jackup rig called the ENSCO 87.  During the 150
days, MMS will have its professional inspector personnel check
the drilling rig to make sure it is being operated safely.

     This exploration well follows two earlier wells drilled by
Chevron in 1988 and 1990 that found commercial quantities of
natural gas on Block 56, and a dry well drilled in 1994 on nearby
Block 97. This latest well will help further delineate the size
of Chevron's discovery.

     Chevron acquired this lease in 1984 in Lease Sale No. 79 at
a cost of $1.3 million.  Other owners of the lease include Conoco
Inc. and Murphy Exploration and Production Company.  If these
leases were to be put into production after additional MMS
approvals, Chevron would pay the  U.S. Treasury 16-2/3 percent of
the value of the gas production in royalties. 

     For more information, contact:

          Mr. Barney Congdon
          Public Affairs Officer
          1201 Elmwood Park Boulevard
          New Orleans, Louisiana  70123
          (504) 736-2595

                                   -MMS-