OVERVIEW OF FINAL REGULATIONS ON
               COMPRESSED NATURAL GAS AND GASOHOL
(T.D. 8609)

     These regulations provide rules for the tax on compressed
natural gas and the reduced gasoline tax rate for gasohol, a
blend of gasoline and alcohol.

     The CNG tax of 48.54 cents per thousand cubic feet is
generally imposed when the fuel is delivered to the tank of a
motor vehicle or motor boat.  If this transaction involves a
sale, the seller is responsible for paying the tax.  If it is not
a sale, the operator of the vehicle or boat is generally
responsible.  Rules for the deposit of this tax appear in the
instructions to Form 720, Quarterly Federal Excise Tax Return.

     The reduced gasohol rate applies to three types of gasohol -
- containing at least 10%, 7.7% or 5.7% alcohol.  The regulations
allow tolerance for blends that contain slightly less alcohol. 
For example, the 10% category blend must contain at least 9.8%
alcohol.

     The regulations provide that gasohol made from alcohol
produced from ethers like ethyl tertiary butyl ether is eligible
for the reduced tax rate.  Such gasohol is usually produced at a
refinery and the tax may be imposed when the fuel leaves the
refinery.

     These rules became effective October 1, 1995, except for the
tolerance rule, which was effective August 7, 1995.

     An explanation and text of these regulations can be found
beginning on page 40079 of the Federal Register of August 7,
1995.
     For further information about the contents of the
regulations, please contact Frank Boland at (202) 622-3130 (not a
toll-free call).