Pre-heat oven to 350° F.
Drop rice in boiling water and boil uncovered for five minutes. Drain well.
While the rice is cooking, sauté the vegetables and slowly cook in the butter for 5-6 minutes.
Add drained rice, stir to coat rice with the melted butter.
Add stock or bouillon, herbs and seasonings.
Bring to boil and cover and then place the casserole (2½ qt) into lower third of pre-heated oven.
Bake for 30-35 minutes or longer - until rice has absorbed all the liquid, rice is tender and grains are separate.
If necessary add more liquid to complete the cooking.
Discard bay leaf.
Fluff rice with fork and correct seasoning.
Rice may be prepared well in advance of serving. Re-heat when needed.