FOR RELEASE:  April 14, 1995                 CONTACT:  Lee Scurry
                                                   (202) 208-3983

             INTERIOR SIGNS AGREEMENT WITH NAVAJO ALLOTTEES,
                     SETTLING LONG STANDING LAWSUIT (#50027)


     The U.S. Department of the Interior's Minerals Management
Service (MMS), Bureau of Land Management (BLM) and Bureau of
Indian Affairs (BIA) have reached an agreement with Navajo
allottees to settle a 1984 class action suit, Interior officials
announced today.

     "This agreement is a landmark in Indian minerals
management," said Deputy Assistant Secretary for Land and
Minerals Management Sylvia Baca, "and as such, major components
of the agreement will be implemented for all Indian mineral
leases, not just the Navajo allottees who brought the suit.  It
also signals the Administration's and the Department's continued
efforts to work with Indian Tribes and their members."

     Assistant Secretary for Indian Affairs Ada Deer said, "This
reaffirms the commitment of all Interior Department agencies to
work together to fulfill federal trust responsibilities for
American Indians.  The advancements in the tri-bureau office in
Farmington, New Mexico strengthen our ability to meet these
responsibilities."

     The case alleged that the Department was not in compliance
with the Federal Oil and Gas Royalty Management Act (FOGRMA) and
was not properly accounting for Indian mineral resources.  A 1989
consent decree settled certain general issues, but disagreements
remained on specific Interior responsibilities.

     The final agreement addresses all issues raised in the
dispute by the Navajo allottees and provides for:
     -- Increased internal controls on royalty data and payments.
     -- Revisions to audit and valuation procedures.
     -- Enhancement of Interior's trust responsibility via the   

        tri-bureau office in Farmington.
     -- Establishment of procedures to distribute interest from  

        funds in certain Indian accounts.
     -- New procedures for production verification.

     "The process of getting to this agreement -- working jointly
among our three bureaus and with the allottees -- emphasizes the
effectiveness of our improved coordination between the Department
and Indian allottees.  After 11 years of often contentious
litigation, we are finally putting aside past differences and
charting a course for the successful future of Indian minerals
management," said MMS Director Cynthia Quarterman.  
    
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Subject: PR-4/14/95 Navajo Nation/Interior Signs Agreement with
Navajo Allottees, Settling Longstanding Lawsuit (#50027)