FOR RELEASE: December 13, 1994               CONTACT:  Lee Scurry
                                                   (202) 208-3983

                      MMS ANNOUNCES WINNING BIDS FOR
                       ROYALTY GAS MARKETING PILOT 

     The U.S. Department of the Interior's Minerals Management
Service (MMS) today announced winning bids from MMS's Invitation
for Bids (IFB) to buy the federal government's royalty share of
natural gas from company-volunteered leases in the Gulf of
Mexico.  MMS opened bids on November 21, 1994, in Herndon, VA.  

     "We're extremely pleased with the number of bidders and the
quality of the bids," said MMS Acting Director Cynthia
Quarterman.  "Because participation in this pilot project is
voluntary, industry's willingness to test new approaches to
royalty collections is most gratifying."

     The IFB solicited bids on 75 leases, containing an estimated
170,800 MMBtu's of royalty gas per day.  The following companies
submitted the winning bids from among the 24 bids submitted by 23
companies:

     Company                            
     Amerada Hess Corporation
     Anadarko Trading Company
     Chevron USA, Inc.                                 
     CNG Energy Services Corporation               
     Coastal Gas Marketing Company           
     Conoco, Inc.
     Enron Gas Marketing, Inc.
     Mobil Natural Gas, Inc.                            
     Natural Gas Clearinghouse                          
     Oryx Gas Marketing Limited                    
     Texaco Gas Marketing, Inc.                   
     Vastar Resources, Inc.      

      The intent of the royalty gas marketing pilot is to see
whether taking federal gas royalties in kind, rather than
receiving cash payments, will improve the process of royalty
collection for both MMS and the gas industry.
               
     "By simplifying procedures, we expect to eliminate a lot of
paperwork associated with gas valuation," said Quarterman.  "As a
result, MMS shouldn't have to expend as much effort for audits,
and that will lower costs.

     "This pilot has evolved out of discussions with our
customers and typifies 'doing more with less.'  It is a true
example of reinventing government -- MMS trying new business
practices and procedures to work better and smarter," she said.
     
     The pilot will run for one year beginning January 1, 1995. 
In conjunction with industry producers and marketers, MMS will
evaluate the potential cost savings and benefits of the project
to decide whether it will be continued.  MMS also will analyze
revenues received to ensure fair market value.

     For more information about the pilot call Jim Mackay at
(703) 787-1354 or Jim McNamee at (303) 275-7126.

                                  --MMS--