Achievements of the Department of Interior for 1981 in the areas of natural resources, parks, wildlife areas, water, Western lands, Indian reservations, and island territories are reported. Section 1 outlines increases in onshore and offshore oil and gas, coal, and geothermal leases on federal lands. Section 2 describes results in the change of policy from acquiring more land to preserving the nation's parks, wildernesses, and wildlife refuge systems. Section 3 reports the partnership between Western states and the federal government to avert a water crisis in the next decade. Accomplishments include 10 new Western water projects, operation of 2 giant wind turbines, and revitalization of the Bureau of Reclamation. Section 4 notes the improvement in the relationship between the government and Western states, a result, among others, of revenue sharing, honoring states' rightful claims to land granted when they entered the union, and transferring federal land to state and local government. Section 5 outlines ways in which the Department has helped Indian tribes and island territories achieve economic self-reliance and governmental self-determination. The final section describes achievements in management, regulatory reform, red tape reduction, and national control. Numerous charts and photographs are included. (KC)