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MITCHELL PAYS OFF GOVERNMENT-BACKED DEBENTURES WHICH FINANCED ORIGINAL DEVELOPMENT OF THE WOODLANDS

 MITCHELL PAYS OFF GOVERNMENT-BACKED DEBENTURES WHICH
 FINANCED ORIGINAL DEVELOPMENT OF THE WOODLANDS
 THE WOODLANDS, Texas, Sept. 24 /PRNewswire/ -- Mitchell Energy & Development Corp. today announced that it has made the final payment of $12.5 million on $50 million of government-guaranteed debentures issued in 1972 to finance development of The Woodlands, its planned community located near Houston.
 The debentures had been guaranteed under provisions of the Urban Growth and New Community Development Act of 1970. Congress passed the legislation to encourage land developers to seek positive ways to accommodate rapid population growth in and around America's cities. The Title VII provision of the act provided loan guarantees to assist private developers in raising large amounts of capital at reasonable interest rates. In return, recipients agreed to meet certain requirements, such as providing a broad range of housing types, price ranges, physical amenities and community services.
 A popular solution at the time was the concept of building "new towns," which incorporated aesthetic appeal, environmental sensitivity and a sense of community. All total, 13 new towns in 12 states broke ground with funds guaranteed by Title VII during the early '70s. Of these, The Woodlands is the only one to succeed according to the program's guidelines, which included payment of the original loans and the fulfillment of the legislation's social, economic and environmental goals.
 George P. Mitchell, chairman of Mitchell Energy & Development Corp. and The Woodlands Corporation, had begun to envision The Woodlands in the 1960s. He initiated an aggressive land acquisition program in the forests of southwestern Montgomery County, 27 miles north of downtown Houston. Some 300 real estate transactions later, Mitchell had put together a 25,000-acre parcel that he hoped would become a model for future urban planning and environmentally responsible development.
 Today The Woodlands has nearly 35,000 residents and more than 10,000 permanent jobs. Total investment in the community exceeds $2 billion, and Mitchell expects the population to top 150,000 sometime in the next century.
 Mitchell believes The Woodlands is the only new town to succeed under the Title VII program primarily because his company made a long-term commitment to quality development.
 "Building a new community takes time," he said. "I strongly felt that it was important for one developer to see the project through -- from groundbreaking to the point where The Woodlands became a mature, self-sustaining community."
 Mitchell pointed to a number of additional factors which set The Woodlands apart from the other Title VII developments, including:
 -- Proximity to Houston's international airport, a major rail line and two freeways which connect The Woodlands to Houston's commercial districts;
 -- Economic development activity to foster business growth and job-creation in conjunction with residential growth;
 -- Strong, continued financial backing from lenders and support from Mitchell Energy's other profitable operations; and
 -- The appeal of the community's heavily wooded environment, which -- along with residential and commercial development -- incorporates parks, greenbelts, lakes and large, forested areas.
 Mitchell Energy & Development Corp. is one of the nation's largest independent energy producers. Its real estate operations are directed by The Woodlands Corporation, which, in addition to developing The Woodlands, has projects in other areas of the Houston metropolitan area and on Galveston Island. The company's shares are traded on the New York Stock Exchange under the symbols MNDA and MNDB.
 -0- 9/24/92
 /CONTACT: Jack Crumpler, 713-377-6157, or Debbie Siegfried, 713-377-5658, both of Mitchell Energy & Development Corp/
 (MND) CO: Mitchell Energy & Development Corp. ST: Texas IN: OIL SU:


MA -- NY035 -- 3085 09/24/92 12:13 EDT
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Date:Sep 24, 1992
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