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MMS PLANS TO TEST MEDIATION SERVICES

March 6, 1995

The Minerals Management Service plans a pilot project to test the use of mediation services to resolve disputes over royalties on U.S. leases. Cynthia Quarterman, acting MMS director, said such disputes often have been resolved through costly, time consuming lawsuits. MMS found that many issues taken to court are better resolved by other means such as mediation. MMS said the pilot project will cover only royalty based appeals. It is looking for parties to act as mediators and applicants to

The Minerals Management Service plans a pilot project to test the use of mediation services to resolve disputes over royalties on U.S. leases.

Cynthia Quarterman, acting MMS director, said such disputes often have been resolved through costly, time consuming lawsuits. MMS found that many issues taken to court are better resolved by other means such as mediation.

MMS said the pilot project will cover only royalty based appeals. It is looking for parties to act as mediators and applicants to use the process.

Goals of the pilot are to reduce costs, streamline administrative processes, speed resolution of administrative appeals, and ensure better compliance.

Applications for the pilot project may be submitted to the MMS enforcement office in Denver. Cases for the pilot program will be chosen by Sept. 30.