FOR RELEASE:  September 6, 1994       CONTACT:  Robin Lee Cacy
                                                (907) 271-6070
                                                  800-764-2627

      MMS ISSUES REQUEST FOR INTEREST ON RUSSIAN PROPOSAL
            FOR SIMULTANEOUS OIL AND GAS LEASE SALE
                IN CHUKCHI SEA AND HOPE BASIN  (#40064)

     The U.S. Department of Interior's Minerals Management Service
(MMS) is evaluating the level of interest of the energy industry in
a proposed simultaneous sale in the U.S. portion of the Chukchi Sea
and Hope Basin offshore Alaska and in the regions of the Chukchi
Sea offshore the Russian Far East.

     MMS is the agency which administers natural gas and oil
leasing, exploration and development on the U.S. Outer Continental
Shelf (OCS).

     A Request for Interest and Comments (RFIC) will be published
in the Federal Register on September 6, 1994.

     The Russian Federation, Committee on Geology, has proposed
that simultaneous oil and gas lease sales be held on both sides of
the international border separating the two nations.  The
simultaneous sales are a way of integrating the training being
provided by MMS on the management of oil and gas resources with the
development of an actual proposal for the private sector.  The
sales are proposed for late 1997 in the Russian Northern and
Southern Chukchi Sea Area and the U.S.'s Chukchi Sea and Hope Basin
Planning areas.

     Russian officials had already planned a sale in the Chukchi
Sea as part of the Russian Far East Oil and Gas Leasing Program
prior to making the proposal for a simultaneous sale.  

     The proposed U.S. sale is part of MMS's current five-year plan
and is subject to the same approval and comment process as all
other OCS sales.

     "We're interested in determining if combining our resources in
this remote area would benefit both Russia and the United States by
allowing us to coordinate environmental protection measures and
increase the scientific data available to each country," said
acting MMS Director Cynthia Quarterman.  "Simultaneous sales would
also allow industry to better plan exploration and development
activities in the entire Chukchi Sea area.  This project will
enable MMS to share with their Russian counterparts their
experience in developing well understood environmental safety and
economic conditions that are to be met by the private sector."
  
     In June, U.S. and Russian officials signed a Memorandum of
Understanding to foster cooperation in regulating exploration for
and development of offshore oil, gas and mineral resources.  MMS
has been engaged recently in helping train Russian offshore
officials in the environmentally sound development of oil and gas
resources under a program funded by the U.S. Agency for
International Development.

     MMS is issuing the RFIC to evaluate interest in the proposal
to hold simultaneous lease sales with the Russian Federation in the
Chukchi Sea and Hope Basin areas.  The RFIC asks the oil and gas
industry to provide up-to-date information on its interest in
leasing and exploring within the proposed sale area.  Other
interested parties are asked to provide comments and concerns about
particular geologic, environmental, biological, archaeological, or
socio-economic conditions, potential conflicts and other
information that might bear upon potential leasing and development.

     The area being considered for leasing in the U.S. Chukchi Sea
includes about 24 million acres in water depths ranging from 69 to
approximately 328 feet.  The proposed U.S. Chukchi area ranges from
nine to 300 miles offshore Alaska's northwest coast, and is
identified as proposed OCS lease Sale 148.

     Two lease sales have been held in the Chukchi Sea Planning
Area.  Drilling in the planning area began in 1989.  Industry has
drilled four exploratory wells, none of which were determined to be
commercial.

     The area being considered for leasing in the U.S. Hope Basin
includes about 4.6 million acres in water depths of 69 to 200 feet,
and is identified as proposed OCS lease Sale 157.  The distance
from shore ranges from 9 to 100 miles.

     No lease sales have been held in the area.

     The Russian Northern Chukchi Sea Planning Area includes
approximately 19 million acres in water depths from about 33 to 395
feet.  The distance from shore ranges from 6 to 310 miles.

     The Russian Southern Chukchi Sea Planning Area under
consideration for leasing in this proposal includes approximately
57 million acres in water depths of about 16 to 328 feet and
ranging from 6 to 280 miles offshore.

     The RFIC for the proposed sale will be published in the
Federal Register on September 6, 1994.  Responses should be
received no later than 90 days following publication.  Letters
should be marked "Comments on U.S./Russian Proposed Simultaneous
Leasing in the Chukchi Sea," and sent to the Regional Supervisor,
Leasing and Environment, Alaska OCS Region, 949 East 36th Avenue,
Anchorage,  Alaska 99508-4302.  Telephone responses may be made to
the Regional Supervisor, Leasing and Environment at (907) 271-6045.

                               -MMS-

Subject: PR-09/06/94 Simultaneous Sale/MMS Issues Request for
Interest on Russian Proposal for Simultaneous Oil and Gas Lease
Sale in Chukchi Sea and Hope Basin (#40064)