CHILLICOTHE, Ohio (AP) _ John Cougar Mellencamp attracted 5,000 fans to two free concerts, including Gov. Richard Celeste, who danced to the music with two of his daughters.

The governor and Noelle and Natalie Celeste danced in the press balcony of the Shoemaker Center on the Ohio University-Chillicothe campus Wednesday during Mellencamp's second show.

The concerts resulted from about two years of negotiations between radio station WFCB-FM and Mellencamp's manager. In April 1986, WFCB disc jockey Chip Arledge presented Mellencamp with a petition signed by 6,200 people, each pledging to pay $20 per ticket to see Mellencamp in this south-central Ohio city.

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ANN ARBOR, Mich. (AP) - Michigan football Coach Bo Schembechler delivered written marching orders to Wolverines players and staff while continuing to recover from a second quadruple heart bypass operation.

Schembechler remained in the intensive care unit of St. Joseph Mercy Hospital, where his condition improved Wednesday from satisfactory to fair, nursing supervisor Val Greaves said.

''He's doing as well as the doctors have expected,'' Greaves said. ''They're quite happy with his progress.''

Schembechler could not speak Wednesday but wrote, ''Go do it without me'' on a piece of paper Wednesday and gave to staff members, who are preparing for Michigan's Jan. 2 game against Alabama in the Hall of Fame Bowl.

Schembechler, whose history of heart trouble includes a heart attack suffered the day before the 1970 Rose Bowl game, underwent quadruple bypass surgery Tuesday for the second time since 1976.

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INDIANAPOLIS (AP) - Former Los Angeles Mayor Sam Yorty lost more than $50,000 in fees and attorney Melvin M. Belli was ordered to yield about $4,000 in a dispute over the estate of an heir to a pharmaceutical fortune.

The Indiana Court of Appeals ruled Wednesday in the case of Elena Yee Lutz, who employed both attorneys during her fight in California and Indiana to get a share of the estate of her husband, Herbert B. Lutz, an heir to the Eli Lilly fortune.

Mrs. Lutz received $813,944 in money and stock, then took the attorneys to court to contest their fees.

The appeals court said a Boone Circuit Court award of $56,268 to Yorty could not be supported by evidence. Yorty worked as Mrs. Lutz's liaison with foreign countries on her import trading business and also worked on the will contest.

The court concluded that the evidence ''does not demonstrate Yorty performed $50,000 worth of legal services.''

Belli's fee should have been 10 percent, as called for under an agreement between the lawyer and his client, the court said. His fee was reduced from $85,394 to $81,394.

Lutz had inherited most of his money from his second wife, the late Evelyn Lilly Lutz, who died in 1970. Lutz died in 1982.

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PLAINS, Ga. (AP) - Billy Carter says he feels confident he'll ''lick'' his cancer and get back to work.

''Boredom is the worst of it,'' the 50-year-old brother of former president Jimmy Carter said in an interview published Thursday in The Atlanta Constitution.

''You know I am a workaholic. I like to be busy, and when this is over I hope to go back to my job with Arabi Homes (a modular home firm) on a consulting basis, at least,'' he said.

He looked at his wife, Sybil, and said: ''I hope I will have lived a useful life and had something to offer other people. Sybil is going out talking to people about alcohol and drug abuse, and I want to go with her and talk where it will help.''

Carter, known for his beer-drinking antics during his brother's 1976 presidential campaign, quit drinking nine years ago.

Billy Carter learned in September that he had inoperable pancreatic cancer. His father, James Earl Carter, and sister, Ruth Carter Stapleton, died of the disease.

Carter, who has six children, said he would return to Emory University Hospital here Dec. 27 to resume chemotherapy.

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WASHINGTON (AP) - The American Association of Community and Junior Colleges said Thursday it has selected Brig. Gen. Fred A. Gorden, the commandant of cadets at the U.S. Military Academy, as its 1988 alumnus of the year.

Gorden is a 1962 graduate of West Point, but he spent a year at Kellogg Community College in Battle Creek, Mich., before entering the military academy in 1958.

Dale Arnell, association president, said: ''General Gorden is a good example of an individual who has achieved tremendous success ... after establishing his educational foundation at a community college.''

The award will be presented at the group's convention in April.