The kernel of the problem of associated petroleum gas rational use in Russia is stated in the article; the analyses of reasons that are obstacles in the way of associated petroleum gas utilization is fulfilled; the main directions of economic mechanism based on state-private cooperation in the sphere of production and use of associated petroleum gas are offered.

Methods and forms of the state administration of economics under conditions of market economy and in the sphere subsoil usage are considered in the article. The structure of the state administration mechanism in the subsoil usage area is offered in the work. The system of economic methods aimed at management, development and use of mineral resources are represented.

In article reveals a principle of ordering of existing models of industrial using by subsoil. Their author's classification on the basis of institutional economic school is offered. Opportunities of perfection of the Russian system of using by subsoil on the basis of development of contract relations are shown.