[House Report 113-42]
[From the U.S. Government Publishing Office]
113th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 113-42
======================================================================
RESPONSIBLE HELIUM ADMINISTRATION AND STEWARDSHIP ACT
_______
April 18, 2013.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Hastings of Washington, from the Committee on Natural Resources,
submitted the following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany H.R. 527]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 527) to amend the Helium Act to complete the
privatization of the Federal helium reserve in a competitive
market fashion that ensures stability in the helium markets
while protecting the interests of American taxpayers, and for
other purposes, having considered the same, report favorably
thereon with an amendment and recommend that the bill as
amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Responsible Helium Administration and
Stewardship Act''.
SEC. 2. DEFINITIONS.
Section 2 of the Helium Act (50 U.S.C. 167) is amended--
(1) in paragraph (1), by striking the semicolon at the end
and inserting a period;
(2) in paragraph (2), by striking ``; and'' and inserting a
period; and
(3) by adding at the end the following:
``(4) Federal helium reserve.--
``(A) In general.--The term `Federal Helium Reserve'
means the Bureau of Land Management Cliffside Gas Field
and supporting infrastructure.
``(B) Inclusions.--The term `Federal Helium Reserve'
includes--
``(i) the Cliffside Gas Field helium storage
reservoir; and
``(ii) all associated infrastructure owned,
leased, or managed under contract by the
Secretary for storage, transportation,
withdrawal, purification, or management of
helium.
``(5) Qualifying domestic helium transaction.--The term
`qualifying domestic helium transaction'--
``(A) except as provided in subparagraph (B), means
any new or newly renegotiated agreement for the
purchase or sale of at least 15,000,000 standard cubic
feet of crude helium or bulk liquid helium delivered in
the United States in the most recent full fiscal year;
and
``(B) does not include any purchase of crude helium
from the Secretary.
``(6) Tolling agreement.--The term `tolling agreement' means
an agreement between a helium refiner and another party under
which the helium refiner agrees to process the other person's
helium at an agreed upon price.''.
SEC. 3. SALE AND AUCTION OF CRUDE HELIUM.
(a) In General.--Section 6 of the Helium Act (50 U.S.C. 167d) is
amended to read as follows:
``SEC. 6. SALE OF HELIUM.
``(a) Phase A: Finalizing Debt Payoff.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall offer for sale crude helium for Federal, medical,
research, scientific, and commercial uses in such quantities,
at such times, and under such conditions as the Secretary
determines necessary to carry out this subsection with minimum
market disruption.
``(2) Minimum quantity.--The Secretary shall offer for sale
during each fiscal year under paragraph (1) a quantity of crude
helium equivalent to the quantity of crude helium produced from
the Federal Helium Reserve during fiscal year 2012.
``(3) In-kind purchase by federal agencies and grantees.--
Federal agencies, and holders of 1 or more Federal research
grants, may purchase refined helium under this subsection for
Federal, medical, research and scientific uses from persons who
have entered into enforceable contracts to purchase an
equivalent quantity of crude helium from the Secretary.
``(4) Prices and determinations.--Sales of crude helium by
the Secretary under this subsection shall be at prices
established by the Secretary that shall not be less than the
price in the last sale of crude helium from the Federal Helium
Reserve before the date of enactment of the Responsible Helium
Administration and Stewardship Act, except that any sale to a
person referred to in paragraph (3) for a purchase authorized
by that paragraph shall be at a price specified by the
Secretary.
``(5) Duration.--This subsection applies during the period--
``(A) beginning on the date of enactment of the
Responsible Helium Administration and Stewardship Act;
and
``(B) ending on the expiration of the one-year period
following such date of enactment.
``(b) Phase B: Maximizing Total Recovery of Helium and Increasing
Returns to the American Taxpayer.--
``(1) In general.--The Secretary shall offer for sale at
auction, as described in subsection (d), crude helium for
medical, research, scientific, and commercial uses in such
quantities, at such times, and under such conditions as the
Secretary determines necessary--
``(A) to maximize total recovery and conservation of
helium from the Federal Helium Reserve;
``(B) to manage crude helium sales according to the
ability of the Secretary to extract and produce helium
from the Federal Helium Reserve;
``(C) to respond to helium market supply and demand
and minimize market disruption; and
``(D) to give priority to meeting the helium demand
of Federal users through purchases under paragraph (2).
``(2) In-kind purchase by federal agencies and grantees.--Any
Federal agency, and any holder of 1 or more Federal research
grants, may purchase refined helium for Federal, medical,
research, and scientific uses from an eligible person. The
Secretary shall then provide an equivalent volume of crude
helium to the eligible person as if the eligible person was the
successful bidder for the helium at auction. Provision of
helium by the Secretary under this paragraph shall not be
considered a sale of helium by the Secretary at auction. The
Secretary shall provide such helium at the minimum price
established by the Secretary for the most recent auction held
under this subsection or such other price as may be specified
by the Secretary.
``(3) Eligible person.--For purposes of this subsection, the
term `eligible person' means a helium distributer who is
registered as such with the Secretary.
``(4) Duration.--This subsection applies during the period--
``(A) beginning on the expiration of the period
described in subsection (a)(5)(B); and
``(B) ending on the date on which the volume of
recoverable crude helium at the Federal Helium Reserve
(other than privately owned quantities of crude helium
stored temporarily at the Federal Helium Reserve under
section 5 and this section) is 3,000,000,000 standard
cubic feet.
``(5) Maximum annual sales.--Notwithstanding any provision of
subsection (d), for each fiscal year, the Secretary may not
offer or provide for sale under this subsection a total volume
of crude helium that exceeds the lesser of--
``(A) the projected maximum total production capacity
of the Federal Helium Reserve during that fiscal year;
and
``(B) the maximum refining capacity of persons
connected by pipeline to the Federal Helium Reserve
during that fiscal year.
``(c) Phase C: Access for Federal Users.--
``(1) In general.--The Secretary may offer for sale crude
helium for Federal uses (including medical, research, and
scientific uses) in such quantities, at such times, and under
such conditions as the Secretary determines necessary to carry
out this subsection.
``(2) Purchase by federal agencies and grantees.--Federal
agencies, and holders of 1 or more Federal research grants
related to helium or the use of helium, may purchase refined
helium under this subsection for Federal uses (including
medical, research, and scientific uses) from persons who have
entered into enforceable contracts to purchase an equivalent
quantity of crude helium from the Secretary.
``(3) Effective date.--This subsection applies beginning on
the day after the date described in subsection (b)(4)(B).
``(d) Auction and Minimum Prices Determination.--
``(1) In general.--Sales of crude helium by the Secretary in
auctions under subsection (b) shall be conducted under the
conditions described in this section and at no less than the
minimum price established by the Secretary.
``(2) Auction.--The Secretary shall conduct such auctions of
crude helium as soon as practical but no later than beginning
180 days after the first day of the period described in
subsection (b)(4), under the following conditions:
``(A) 60 percent of the volume of crude helium made
available in each auction shall be made available to
entities that can show the Secretary they have either
adequate refining capacity or tolling agreements for
refining in place, in accordance with the conditions
set forth in paragraph (3).
``(B) 20 percent of the volume of crude helium made
available in each auction shall be made available to
any bidder, in accordance with the conditions set forth
in paragraph (3).
``(C) In each auction after the first auction under
this subsection after the date of the enactment of the
Responsible Helium Administration and Stewardship Act,
the Secretary shall make available an additional volume
of crude helium, in an amount equivalent to the amount
made available under subparagraph (B) that the
Secretary certifies can be refined, through tolling
agreements or otherwise. Of such additional volume, a
person may not acquire in the auction a volume in
excess of the volume they demonstrate to the Secretary
they have the ability to refine through either refining
capacity or tolling agreements.
``(D) The Secretary shall conduct such auctions at
such times as the Secretary determines necessary to
ensure a reliable supply of helium and a fair return to
taxpayers, but no less frequently than 2 times each
fiscal year.
``(E) For purposes of the first auction under this
subsection after the date of the enactment of the
Responsible Helium Administration and Stewardship Act,
the Secretary may revise the percentage under
subparagraph (A) so as to make available for auction
100 percent of the volume of crude helium intended to
be offered.
``(F) The Secretary may adjust the percentages and
amount specified in subparagraphs (A) through (C),
respectively, in any auction if the Secretary
determines the adjustment is necessary to--
``(i) respond to market supply and demand and
minimize market disruption; or
``(ii) increase participation in helium
auctions.
``(G) The Secretary may conduct an auction no more
frequently than once each fiscal year of an amount of
helium equal to up to 10 percent of the volume of crude
helium to be made available at auction during the
following fiscal year. Such amount of crude helium
shall be made available to any bidder, in accordance
with the conditions set forth in paragraph (3).
Notwithstanding paragraph (3)(C), for crude helium sold
in such an auction the Secretary shall begin charging a
storage fee under clause (i) of that paragraph
beginning 1 year after the date of such auction, and
shall begin charging increasing storage fees under
clause (ii) of that paragraph beginning 270 days after
beginning charging storage fees under clause (i) of
that paragraph.
``(3) Auction conditions.--
``(A) Bidding method.--The Secretary shall conduct
each auction by sealed bid for predetermined volume
lots, unless the Secretary determines that an
alternative bidding method may result in more revenue
to the Federal Government or may increase participation
in the auction.
``(B) Bidder qualifications and limits.--In carrying
out an auction under subsection (b), the Secretary--
``(i) may accept bids only from persons the
Secretary determines are seeking to purchase
helium for their own use, for refining, or for
delivery to users; and
``(ii) may not award to a person more than 30
percent of the total volume of crude helium
offered in that auction, except that the
Secretary may adjust such limitation based on
the number of bidders in the auction.
``(C) Storage fees.--In each auction the Secretary--
``(i) shall begin charging each winning
bidder a storage fee for crude helium purchased
by the bidder that remains in the Federal
Helium Reserve, beginning on the date the
Secretary receives payment of the purchase
price for the helium; and
``(ii) beginning 270 days after the date of
the auction, shall charge increasing storage
fees that will encourage the withdrawal of the
helium no later than 2 years after the date of
the auction.
``(4) Determination of minimum sale price.--The Secretary
shall make a determination of the minimum sale price for sales
described in paragraph (1) using--
``(A) a confidential survey of qualifying domestic
helium transactions to which any holder of a contract
with the Secretary for the acceptance, storage, and
redelivery of crude helium in the Cliffside Gas Field
helium storage reservoir is a party;
``(B) current market crude helium prices as
represented by the sale price at any auction held by
the Secretary in the preceding 2 years;
``(C) the volume-weighted average cost among helium
refiners, producers, and liquefiers, in dollars per
thousand cubic feet, of converting gaseous crude helium
into bulk liquid helium;
``(D) the additional layer of cost and profit
associated with the sale or resale of bulk liquid
helium; and
``(E) the sale price for crude helium offered in the
most recent auction under paragraph (2)(G).
``(5) Authority of secretary.--The Secretary shall--
``(A) require all persons that are parties to a
contract with the Secretary for the acceptance,
storage, and redelivery of crude helium to disclose, on
a strictly confidential basis in dollars per thousand
cubic feet, the weighted average price of all crude
helium and bulk liquid helium purchased, sold, or
processed by the persons in all qualifying domestic
helium transactions during the fiscal year;
``(B) appoint a qualified independent third party to
perform data collection and analysis for the purposes
of the survey under paragraph (4)(A); and
``(C) adopt such administrative policies and
procedures as the Secretary considers necessary and
reasonable to ensure robust protection of the
confidentiality of data submitted by private persons.
``(6) Changes in minimum price.--If the Secretary believes
that the minimum price as determined by the survey under
paragraph (4)(A) may not be reflective of the current market
value of helium, or if a higher minimum price may result in
greater conservation of the Federal crude helium resource, the
Secretary may change the minimum price charged for crude helium
sold under this section by up to 10 percent of the price
determined under paragraph (4). If at any sale in which the
minimum price is increased under this paragraph all crude
helium offered is sold at the increased price, the Secretary
shall consider that increased price to be the minimum price
determined under paragraph (4) for all future sales of crude
helium under this section unless that price is further changed
in accordance with this paragraph.
``(7) Ensuring fair and nondiscriminatory acts and
practices.--The Secretary may issue such rules and regulations
with respect to ensure bidding, transfer, and refining of
helium produced from or held in the Federal Helium Reserve as
may be necessary to ensure fair and nondiscriminatory acts and
practices.
``(8) Auction records.--
``(A) Furnishing records.--Every person participating
in auctions of helium from the Federal Helium Reserve
shall furnish to the Secretary on request such records
of transactions in helium auctions as the Secretary may
require to reconstruct bidding or trading in the course
of a particular inquiry or investigation being
conducted by the Secretary for enforcement or
surveillance purposes. In requiring information
pursuant to this paragraph, the Secretary shall specify
the information required, the period for which it is
required, and the time and date on which the
information must be furnished.
``(B) Reporting requirements.--The Secretary may
issue rules to require persons participating in helium
auctions to file such reports as the Secretary
determines to be necessary for purposes of this Act.
``(C) Recordkeeping requirements.--Rules under this
subsection may require specified persons to make and
keep for prescribed periods such records as the
Secretary determines are necessary or appropriate to
ensure that such persons can comply with reporting
requirements under this subsection.
``(D) Limitation on disclosure of information.--
Notwithstanding any other provision of law, the
Secretary shall not be compelled to disclose any
proprietary information required to be kept or reported
under this subsection. Nothing in this subsection
authorizes the Secretary to withhold information from
Congress, prevents the Secretary from complying with a
request for information from any other Federal
department or agency requesting information for
purposes within the scope of its jurisdiction, or
prevents the Secretary from complying with an order of
a court of the United States in an action brought by
the United States or by the Secretary.
``(e) Helium Production Fund.--
``(1) In general.--All amounts received under this Act shall
be credited to the Helium Production Fund, which shall be
available without fiscal year limitation for purposes
considered necessary by the Secretary to carry out this
subsection.
``(2) Administrative expenses.--Amounts in the Helium
Production Fund may be used by the Secretary to conduct helium
auctions and otherwise administer this Act.
``(3) Repayment amounts.--During the period described in
subsection (a)(4), amounts in the Helium Production Fund in
excess of amounts the Secretary considers necessary to conduct
helium auctions and otherwise administer this Act shall be paid
to the general fund of the Treasury and credited against all
amounts required to be repaid to the United States under this
Act as of October 1, 1995.
``(4) Capital investments and maintenance.--Amounts in the
Helium Production Fund in excess of amounts the Secretary
considers necessary to carry out paragraphs (1) through (3) may
be used to fund the following capital investments in upgrades
and maintenance at the Federal Helium reserve:
``(A) Wellhead maintenance at the Cliffside Gas Field
helium storage reservoir.
``(B) Capital investments in maintenance and upgrades
of facilities that pressurize the Cliffside Gas Field
helium storage reservoir.
``(C) Capital investments in maintenance and upgrades
of equipment related to the storage, withdrawal,
transportation, purification, and sale of crude helium
at the Cliffside Gas Field helium storage reservoir.
``(D) Any other scheduled or unscheduled maintenance
of the Cliffside Gas Field helium storage reservoir and
helium pipeline.
``(5) Excess funds.--Amounts in the Helium Production Fund in
excess of amounts the Secretary considers necessary to carry
out paragraphs (1) through (4) shall be paid to the general
fund of the Treasury.
``(f) Extraction of Helium From Deposits on Federal Land.--All
amounts received by the Secretary from the sale or disposition of crude
helium on Federal land shall be paid to the general fund of the
Treasury and credited against all amounts required to be repaid to the
United States under this Act as of October 1, 1995.
``(g) Maintenance of Helium Supply.--The Secretary shall ensure that
there is no disruption in the supply of helium from the Federal Helium
Reserve during the transition between phases of helium sales under
subsections (a), (b), and (c).''.
(b) Report.--Not later than 1 year after the date of enactment of
this Act and annually thereafter, the Secretary of the Interior shall
submit to the Committee on Natural Resources of the House of
Representatives and the Committee on Energy and Natural Resources of
the Senate a report describing all expenditures by the Bureau of Land
Management for operation and maintenance of the Federal Helium Reserve
(as that term is defined in the amendment made by section 2(3)),
investments made by the Bureau for such reserve, and scheduled or
unscheduled maintenance of such reserve or its infrastructure to be
conducted by the Bureau.
SEC. 4. BLM TRANSPARENCY REQUIREMENTS TO FACILITATE MARKET AND SUPPLY
CHAIN INFORMATION.
The Helium Act (50 U.S.C. 167 et seq.) is further amended by
redesignating sections 15 and 17 as sections 17 and 18, and by
inserting after section 14 the following:
``SEC. 15. PIPELINE ACCESS.
``(a) Annual Report.--The Secretary, acting through the Bureau of
Land Management, shall make available on the Internet the current
refining capacity on the Federal Helium Reserve pipeline, including--
``(1) refinery capacity and future capacity estimates;
``(2) ownership of federally auctioned helium held in the
Federal Helium Reserve;
``(3) volume of helium delivered to individual buyers through
such pipeline;
``(4) for each helium refiner--
``(A) the number of tolling agreements entered into
before October 1, 2013; and
``(B) for each fiscal year thereafter--
``(i) the number of tolling agreements
entered into;
``(ii) the number of tolling requests
received; and
``(iii) the total volume of helium refined
under each tolling agreement entered into;
``(5) pipeline pressure constraints; and
``(6) other factors that will increase transparency for
persons interested in entering refining contracts with existing
refiners.
``(b) New Refining Capacity.--The Secretary shall take any
applications for new refining capacity on the Federal Helium Reserve
pipeline. To create more competition, any new refining capacity added
to the Federal Helium Reserve pipeline system shall be granted access
to crude helium that is equal to the access provided to existing
refining facilities.
``(c) Access by Purchasers of Helium.--The Secretary shall manage
Federal Helium Reserve pipeline access in a competitive manner to
ensure that all persons purchasing helium have equal access to timing
and delivery of the helium, subject to the capacity of the system.
``(d) Scheduling Deliveries.--The Secretary shall, to the greatest
extent practicable, make the scheduling of crude helium deliveries
through the Federal Helium Reserve pipeline open and transparent to all
purchasers of helium through the auction process, and to the public if
the Secretary believes that it is in the national interest.
``(e) Scheduling Priority.--
``(1) In general.--In scheduling crude helium deliveries
through the Federal Helium Reserve pipeline the Secretary shall
grant pipeline access in the following order of priority:
``(A) Helium held in the Reserve as a result of a
purchase under subsection (b)(2).
``(B) Helium sold at auction being delivered to
fulfill a tolling agreement.
``(C) Other helium sold at auction.
``(D) Helium held in the Reserve as a result of a
crude helium exchange resulting from any temporary
shutdown of the Reserve or of a refinery on the Reserve
pipeline.
``(E) Helium held in inventory in the Reserve before
the date of enactment of the Responsible Helium
Administration and Stewardship Act.
``(2) In scheduling such deliveries of helium described in
each of subparagraphs (A) through (E) of paragraph (1), the
Secretary shall grant pipeline access based on the following
order of priority:
``(A) The price paid to the United States for the
helium, giving higher priority to helium for which a
greater price was paid.
``(B) The date the helium was purchased from the
Secretary, giving higher priority to helium purchased
on an earlier date.
``(C) Any other factor the Secretary considers
appropriate to prioritize delivery.
``SEC. 16. BLM REPORTING REQUIREMENTS TO FACILITATE SUPPLY CHAIN
INFORMATION.
``(a) In General.--In order to provide the market with appropriate
and timely information affecting the helium resource, the Director of
the Bureau of Land Management shall establish, no later than 90 days
after the date of enactment of the Responsible Helium Administration
and Stewardship Act, a real-time reporting process, including reporting
over the Internet, to provide data that will affect the helium
industry, including such effects for all persons in such industry from
crude helium suppliers to end users.
``(b) Included Information.--Information provided under this section
shall include the following:
``(1) Annual maintenance schedules and quarterly updates
thereof, which shall be available on the Internet, to the
extent practicable, and shall include the following:
``(A) The date and duration of planned shutdowns of
the Federal Helium Reserve pipeline.
``(B) The nature of work to be undertaken, whether
routine, extended, or extraordinary.
``(C) The anticipated impact on the helium supply.
``(D) The efforts to minimize any impact on the
supply chain.
``(E) Any concerns regarding maintenance of the
Federal Helium Reserve pipeline, pressure of such
pipeline, or deviation from normal operation of such
pipeline.
``(2) For each unplanned outage, the following:
``(A) The beginning of the outage.
``(B) The expected duration of outage.
``(C) A description of the problem.
``(D) The estimated impact on helium supply.
``(E) A plan to correct problems, an estimate of the
potential timeframe for correction, and the likelihood
of plan success within the timeframe.
``(F) Efforts to minimize negative impacts on the
helium supply chain.
``(G) Updates on repair status and the anticipated
online date.
``(3) Minutes of meetings between the Bureau of Land
Management and the Cliffside Refiners Limited Partnership,
including--
``(A) publication of the minutes of each meeting
between the Bureau of Land Management and the Cliffside
Refiners Limited Partnership, including attendees and
their affiliations, on the Internet site of the Bureau
within 1 week after the meeting; and
``(B) indication in the minutes of any action taken
that could affect the supply or operating status
related to the Federal helium program.
``(4) Current predictions of the lifespan of the Federal
Helium Reserve, including how much longer such crude helium
supply will be available based on current and forecasted demand
and the projected maximum production capacity of the Federal
Helium Reserve for the following fiscal year.''.
SEC. 5. HELIUM RESOURCE ASSESSMENT AND HELIUM-3 SEPARATION.
(a) Helium Gas Resource Assessment.--Not later than 2 years after the
date of enactment of this Act, the Secretary of the Interior shall--
(1) in coordination with appropriate heads of State
geological surveys--
(A) complete a national helium gas assessment that
identifies and quantifies the quantity of helium,
including the isotope helium-3, in each reservoir,
including assessments of the constituent gases found in
each helium resource, such as carbon dioxide, nitrogen,
and natural gas; and
(B) make available the modern seismic and geophysical
log data for characterization of the Bush Dome
Reservoir;
(2) in coordination with appropriate international agencies
and the global geology community, complete a global helium gas
assessment that identifies and quantifies the quantity of the
helium, including the isotope helium-3, in each reservoir;
(3) in consultation with the Secretary of Energy, acting
through the Administrator of the Energy Information
Administration, complete--
(A) an assessment of trends in global demand for
helium, including the isotope helium-3;
(B) a 10-year forecast of domestic demand for helium
across all sectors, including scientific and medical
research, commercial, manufacturing, space
technologies, cryogenics, and national defense; and
(C) an inventory of medical, research, scientific,
industrial, commercial, and other uses of helium in the
United States, including Federal and commercial helium
uses, that identifies the nature of the helium use, the
amounts required, the technical and commercial
viability of helium recapture and recycling in that
use, and the availability of material substitutes
wherever possible; and
(4) submit to the Committee on Natural Resources of the House
of Representatives and the Committee on Energy and Natural
Resources of the Senate a report describing the results of the
assessments required under this subsection.
(b) Helium-3 Separation.--
(1) Interagency cooperation.--The Secretary of the Interior
shall cooperate with the Secretary of Energy, or a designee of
the Secretary of Energy, on any assessment or research relating
to the extraction and refining of the isotope helium-3 from
crude helium at the Federal Helium Reserve (as that term is
defined in the amendments made by section 2) or along the
Federal Helium Reserve pipeline system, including--
(A) gas analysis;
(B) infrastructure studies; and
(C) cooperation with private helium refiners.
(2) Feasibility study.--The Secretary of the Interior shall
assess the feasibility of establishing a facility to separate
the isotope helium-3 from crude helium at--
(A) the Federal Helium Reserve; or
(B) an existing helium separation or purification
facility connected to the Federal Helium Reserve
pipeline system.
(3) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary of the Interior shall
submit to the Committee on Natural Resources of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate a report that contains a description of
the results of the assessments conducted under this subsection.
Purpose of the Bill
The purpose of H.R. 527 is to amend the Helium Act to
complete the privatization of the Federal helium reserve in a
competitive market fashion that ensures stability in the helium
markets while protecting the interests of American taxpayers.
Background and Need for Legislation
The Responsible Helium Administration and Stewardship Act
(H.R. 527) would address the impending closure of the Federal
Helium program later this year by allowing the Federal Reserve
to continue supplying helium while also reforming our nation's
helium policy. In reforming the program, this legislation
applies free-market principles to the sale of helium from the
Reserve, ensuring its continued operation while providing
American taxpayers with a more transparent and fairer return on
the public's resources. In addition, by establishing a market
and market pricing for helium, the legislation will drive
conservation and new exploration and development of helium.
HISTORY OF DOMESTIC HELIUM
The United States government initially became interested in
helium during World War I. The U.S. Army valued it as a safe,
noncombustible alternative to hydrogen for use in buoyant
aircraft.
In 1925, Congress created the Federal Helium Program to
ensure that helium would be available to the government for
defense needs. The Bureau of Mines constructed and operated a
large helium extraction and purification plant north of
Amarillo, Texas, that went into operation in 1929. From 1929 to
1960 the federal government was the only domestic producer of
helium. During and after World War II the demand for helium
increased. In response, Congress passed amendments to the
Helium Act in 1960. The amendments provided incentives for
private natural gas producers to strip helium from natural gas
and sell it to the government. The Secretary of the Interior
was given authority to borrow money from the U.S. Treasury to
buy helium and pump it into the reserve, which eventually led
to a supply large enough to provide for all of the U.S. helium
needs and allowed some to be sold overseas. Some of this helium
was used for research, NASA's space program, and defense and
medical purposes, but most was injected into a storage facility
at the Cliffside Gas Field helium storage reservoir known as
the Federal Helium Reserve. The 1960 amendments required the
Bureau of Mines to set prices on the helium it sold that would
cover all of the Helium Program's costs and repay its debts. As
a result of the tremendous quantities of federal helium
available, the U.S. federal government became the largest
single global supplier of helium, and the global price of
helium was established based on the price set by the federal
government.
Federal demand for helium did not live up to post-war
expectations, and by the 1990s, private demand for helium far
exceeded federal demand. The government had accrued more than
$1.3 billion in federal debt from the construction of the
Reserve, the purchase of helium, and the construction of
pipelines in Texas, Kansas, and Oklahoma. In an attempt to pay
off the debt and ease the federal government out of the helium
business, in 1996 Congress passed the Helium Privatization Act
of 1996 (Public Law 104-273), which redefined the government's
role in helium production. It sought to ease the transition of
the federal government from an active purchaser and producer of
helium to simply a distributer of what was currently held in
the reserve. The 1996 law redefined the primary functions of
the federal government as simply operating and maintaining the
helium storage reservoir and pipeline system and providing
crude helium gas by contract with private companies. It also
ordered the sale of all but 600 million cubic feet of helium by
2015 at a price that would recoup the debt. In accordance with
the 1996 law, in 2005 Bureau of Land Management (BLM) began
offering for sale an annual set amount of helium at a fixed
price. BLM was made responsible for operating the Federal
Helium Reserve and providing enriched crude helium to the
refiners located along the helium pipeline. It is these
refiners that refine the crude helium and distribute it to
downstream users and helium suppliers around the country.
CURRENT STATUS
Today, helium is vital in a variety of industries other
than defense. It is essential to cooling and maintaining
superconductive magnets on MRI machines, which accounts for
more than a quarter of helium used in the United States. It is
also used in semiconductor manufacturing, fiber optics,
welding, LCD screens, rocket fuel, medical lasers, as a cooling
medium for nuclear reactors and in scientific and other
research. The BLM Federal Helium Reserve continues to be the
largest supplier of helium to U.S. industry.
The federal government currently supplies about 30 percent
of the world's supply of helium. Originally created as a
federal helium extraction and purification plant, the BLM
Reserve is today managed in a single reservoir and pipeline
system located in Texas, Oklahoma and Kansas. As noted above,
the 1996 Helium Privatization Act called for the shutdown of
federal helium refining operations and dismantling of the
facility by 1999. It also called for the sale and complete
privatization of the Helium Reserve by 2015.
The 1996 law established a formula for pricing the helium
based not on the market price, but on the minimum price
necessary to recover the $1.3 billion federal debt to build the
Helium Reserve. As a result of the federal pricing formula,
users had no incentive to preserve helium, recover it, or
search for new sources. BLM will be able to pay off the debt
sooner than expected without selling off all of the helium.
When the debt is paid off, which is predicted to occur in
October 2013, the Reserve will close with helium still
remaining in the Reserve and no way to access it. Without new
domestic sources of helium available, U.S. industries will be
forced to look overseas to other helium supplying countries
such as Algeria, Qatar, and Russia.
Further, the 1996 legislation did not adequately conform to
free market principles and inadvertently created a monopoly
system where the largest beneficiaries of the federal helium
were a small number of refiners who received annual allotments
of helium at prices significantly below market value.
In 2010, and more recently at a Full Committee hearing on
February 14, 2013, the Government Accountability Office
testified that BLM is selling crude helium for nearly half the
market price of refined Grade A helium. Helium refiners
connected to the pipeline have repeatedly refused to answer
numerous Committee inquiries regarding the prices they charge
for BLM refined helium.
NATIONAL ACADEMY OF SCIENCES REPORT
In 2010, the National Academy of Sciences issued a report
analyzing the consequences of selling off the helium reserve
and the relationship between supply and demand for helium on a
domestic and international basis. The report concluded the
current helium allotment system at below market value prices
was having negative impacts on the needs of both current and
future users of helium in the United States. It concluded that
the 1996 pricing structure has led to significant increases in
the price of helium for end users and ``[i]f the reserve
continues to be so managed, a national, essentially
nonrenewable resources of increasing importance to research,
industry, and national security will be dissipated.'' It
recommended the BLM expand helium sales to a broader array of
purchases and make the price more transparent.
The report also concluded the mandated sell-off was
negatively impacting the needs of both current and future users
of helium in the United States. The Academy suggested the
government open the Reserve to wider array of buyers, extend
the 2015 operating deadline, increase the helium price, extend
the in-kind program, promote helium recycling programs, and
develop other helium sources.
INSPECTOR GENERAL REPORTS
In 2008, a U.S. Department of the Interior (DOI) Inspector
General report showed that due to lack of oversight of the
federal helium program, BLM had circumvented the procurement
process by entering into improper cooperative agreements with
the refiners along the pipeline. This ``improper relationship''
between BLM and the refiners could cost the government and U.S.
taxpayers over $100 million by 2015.
In 2010, a follow-up Inspector General report recommended
more transparency regarding costs and billing processes between
BLM and the Cliffside Refiners' Limited Partnership. In 2012,
the DOI Inspector General issued a report concluding BLM is
selling helium at rates well below market value, the agency
does not currently have the information or capability to
determine a fair market price, and that taxpayers would be
denied millions of dollars in additional revenue if action is
not taken to correct these inconsistencies.
HELIUM-3
Helium-3 (H-3) is an isotope of helium that is frequently
used in applications related to national security, medicine,
industry, and science. H-3 absorbs neutrons, and it is this
neutron detection that allows the defense industry to use H-3
to prevent the smuggling of nuclear and radiological materials
into the U.S. The oil and gas industry also uses neutron
detectors for well logging. The world is currently experiencing
an acute shortage of H-3 and if alternative or additional
supplies are not found this shortage will impact federal
investments in homeland security, scientific research and other
areas.
The most common source of H-3 in the United States is the
nuclear weapons program. H-3 is a byproduct of the decay of
tritium, a radioactive isotope of hydrogen. Since the federal
government produces tritium for use in nuclear warheads, the
tritium needs of the nuclear weapons program is the determining
factor for how much H-3 is produced.
Until 2001, H-3 production by the nuclear weapons program
exceeded the demand, and the program accumulated a stockpile.
After the terrorist attacks of September 11, 2001, the federal
government began deploying neutron detectors at the U.S. border
to help secure the nation against smuggled nuclear and
radiological material. This created a significant new federal
demand for H-3 while at the same time the use of H-3 in medical
imaging also increased. As annual demand exceeds the annual
supply, the stockpile shrinks. Federal officials have projected
that there is insufficient H-3 to meet likely increasing future
demand and industry is currently working with the Department of
Energy to manage future predicted shortfalls.
THE RESPONSIBLE HELIUM ADMINISTRATION AND STEWARDSHIP ACT
H.R. 527 will ensure a consistent supply of helium for U.S.
manufacturers, consumers and researchers while guaranteeing
American taxpayers receive the best return for the federal
helium resource. It implements a new auction-based helium
program that requires no less than two auctions a year. As
introduced, H.R. 527 had the Secretary conducting more sales.
Increased numbers of sales will better track and establish a
market price for helium. However, concerns were raised that
frequent pricing adjustments would interfere with long term
contracting. While long term contracts include the ability for
refiners to impose multiple price increases in any given year,
taxpayers would be shortchanged as helium refiners increase
prices to respond to demand while the limited frequency of
federal auctions may leave taxpayers blind to the real value of
the helium sold on the market.
The legislation will also allow all new refiners access to
the BLM helium pipeline, rather than giving the refiners along
the pipeline exclusive access to its capacity. One of the most
detrimental decisions by BLM was the agreements signed in 2000
that locked in allotment capacity on the pipeline to specific
refiners. These allotments have stifled competition and left
only a small handful of companies as the gatekeepers of the
helium from the Federal Helium Reserve. These gatekeepers have
been the beneficiaries of the BLM's inability to track market
pricing for helium and have reaped hundreds of millions of
dollars in benefits from the sale of BLM helium at prices below
market value. The legislation directs BLM to guarantee pipeline
access to helium purchasers to schedule delivery of their
helium and directs BLM to allow access to the pipeline system
for new refining capacity to allow greater competition and
ensure a better price for the taxpayer.
H.R. 527 will also increase transparency to ensure all
parties in the helium market will be aware of the current price
of BLM helium and all planned maintenance operations and shut
downs of the Federal Helium Reserve. The need for these
provisions became clear during the summer of 2012 when a month-
long planned BLM shutdown of operations coincided with a
decrease in production by other private helium sources. This
``perfect storm'' of helium supply reductions came as a
surprise to many of the end users of helium who were not
informed of the coming shutdown until receiving force majeure
letters from their suppliers informing them their helium
deliveries would be significantly below contracted levels. The
lack of transparency by the refiners and BLM over the months
between the planning for the shutdown and the actual shutdown
left many helium users with few options for securing helium
supply and forced many to seek supply from the spot market, in
which prices are much higher. There is an obligation to keep
the public, not just the handful of refiners, informed on the
status and operations of the BLM reserve. As we have seen,
failure to do so can lead to disruption of the helium markets
and additional unnecessary costs to helium users.
Finally, H.R. 527 would ensure the continued and long-term
use of this federal helium resource by federal users and
researchers. The legislation includes provisions to ensure that
federal users and researchers can receive priority delivery of
taxpayer-owned helium supplies and can purchase this helium at
reasonable prices. The legislation would also establish a long-
term supply for federal users as the helium in the Reserve
dwindles.
Committee Action
H.R. 527 was introduced on February 6, 2013, by Congressman
Doc Hastings (R-WA), and referred to the Committee on Natural
Resources. On February 14, 2013, the Full Natural Resources
Committee held a hearing on the bill. On March 20, 2013, the
Full Natural Resources Committee held a markup of the bill.
Chairman Doc Hastings (R-WA) offered an amendment in the nature
of a substitute to the bill. Congressman Glenn Thompson (R-PA)
offered an amendment designated .007 to the Hastings amendment
in the nature of a substitute. The Thompson amendment to the
Hastings amendment was withdrawn. Congressman Alan S. Lowenthal
(D-CA) offered an amendment designated .003 to the Hastings
amendment in the nature of a substitute. The Lowenthal
amendment to the Hastings amendment was withdrawn. Congressman
Matthew A. Cartwright (D-PA) offered an amendment designated
.009 to the Hastings amendment in the nature of a substitute.
The Cartwright amendment to the Hastings amendment was
withdrawn. The amendment in the nature of a substitute was then
adopted by voice vote. The bill, as amended, was ordered
favorably reported to the House of Representatives by voice
vote.
Section-by-Section Analysis
Section 1. Short title
This section designates the bill as the ``Responsible
Helium and Stewardship Act of 2012.''
Section 2. Definitions
This section provides definitions for terms used in the
bill.
Section 3. Sale and auction of crude helium
This section continues and completes the privatization of
the Helium Reserve over a three stage process during the next
decade until the Reserve is emptied of helium. The first stage
is between enactment of the bill and the final debt payoff to
the Treasury, expected around October 1, 2013.
The second stage will continue the selloff of the crude
helium remaining in the Reserve until BLM estimates there is
only 3 billion cubic feet remaining. During this stage, BLM
shall implement a new sale and pricing structure to ensure that
taxpayers get the best return for our valuable resource.
Specifically, the bill establishes a new system for sealed bid
auctions for predetermined volumes unless the Secretary of the
Interior determines an alternative sales method will result in
more revenue. The Secretary will conduct the auctions when
determined necessary for a reliable supply of helium, but no
less frequently than two times a year. In these sales,
1. 60% of the volume of crude being sold will be
available for refiners along the pipeline and for
entities with refining tolling agreements in place
prior to the auction;
2. 20% of the crude helium will be available to any
bidder under specific conditions and with drawdown
requirements; and
3. Up to an additional 20% will be made available
equal to the amount withdrawn from the Reserve under
those amounts sold in section 2 above at the previous
auction.
The third stage will provide helium solely for federal
users and researchers and begins when the remaining Reserve
volume equals 3 billion cubic feet. This stage will continue
until the recoverable helium in the reserve is expended.
The Secretary may conduct a forward auction once per fiscal
year for up to 10 percent of the volume of crude helium to be
made available in the following year to ensure a consistent
supply of helium and allow users to plan for future business
conditions.
The Secretary will require that all participants in the
auction are involved in the helium industry and will not allow
any entity to purchase more than 20 percent of the helium
available for auction. The Secretary has the authority to
adjust this limitation based upon number of bidders in the
auction.
The Secretary will charge a storage fee for helium that
remains in the helium reserve 180 days after the helium has
been auctioned. This fee will increase in a way that will
encourage the withdrawal of the purchased helium no later than
one year after the date of the auction.
The Secretary will determine a minimum sale price for
auctions based on a confidential survey performed by a
qualified independent third party, current market crude helium
prices and the average cost among helium refiners. The
Secretary has the authority to increase the minimum price by an
additional 10% if a higher minimum price will result in greater
conservation of the Federal Helium Reserve.
The Secretary will take any steps necessary to prevent
fraudulent acts in the auctions and may require any records the
Secretary deems necessary to ensure entities are complying with
reporting requirements.
Funds from the auction will be credited to the Helium
Production Fund. The funds will be used for administration of
the Federal Helium Program, debt repayment, and capital
investments and maintenance of the Helium Reserve. Excess funds
will be deposited into the Treasury.
Section 4. BLM transparency requirements to facilitate market and
supply chain information
BLM will open up additional pipeline capacity to entities
who wish to open refining capacity on the pipeline and ensure
that anyone who purchases helium at auction will have access to
delivery of their helium.
The Secretary will grant pipeline access to helium
purchasers using priority planning, taking into consideration
price paid for the helium, auction order of the purchase, and
helium sold as a result of in-kind purchases, among other
factors.
BLM will increase transparency by posting on its website
planned maintenance, closures of the Helium Reserve, duration
of closure, and recordings of minutes of meetings between the
BLM and the Cliffside Refiners Limited Partnership.
Section 5. Helium resource assessment and helium-3 separation
This section authorizes the Secretary of the Interior to
conduct a national helium assessment within two years of
enactment that includes a 10-year forecast of domestic demand
for helium and an inventory of uses of helium in the United
States. The Secretary will also issue a report on the
feasibility of increasing helium-3 production.
Committee Oversight Findings and Recommendations
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
Compliance With House Rule XIII
1. Cost of Legislation. Clause 3(d)(1) of rule XIII of the
Rules of the House of Representatives requires an estimate and
a comparison by the Committee of the costs which would be
incurred in carrying out this bill. However, clause 3(d)(2)(B)
of that rule provides that this requirement does not apply when
the Committee has included in its report a timely submitted
cost estimate of the bill prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974. Under clause 3(c)(3) of rule
XIII of the Rules of the House of Representatives and section
403 of the Congressional Budget Act of 1974, the Committee has
received the following cost estimate for this bill from the
Director of the Congressional Budget Office:
H.R. 527--Responsible Helium Administration and Stewardship Act
Summary: H.R. 527 would authorize the Bureau of Land
Management (BLM) to retain proceeds from the sale of helium
from the Federal Helium Reserve to pay for the costs of
operating the reserve. The bill also would require BLM to
conduct domestic and global assessments of the supply of helium
and to prepare several reports related to helium production on
federal lands.
Based on information provided by BLM, CBO estimates that
enacting H.R. 527 would increase net offsetting receipts (a
credit against direct spending) by $340 million over the 2014-
2023 period; therefore, pay-as-you-go procedures apply. In
addition, CBO estimates that completing the assessments and
additional reports required under the bill would cost $11
million over the 2014-2023 period, assuming appropriation of
the necessary amounts. Enacting H.R. 527 would not affect
revenues.
The bill contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 527 is shown in the following table.
The costs of this legislation fall within budget function 300
(natural resources and environment).
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------------------------------------------------------------
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014-2018 2014-2023
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Estimated Budget Authority........................... -150 -105 -80 -55 -30 -5 25 20 20 20 -420 -340
Estimated Outlays.................................... -150 -105 -80 -55 -30 -5 25 20 20 20 -420 -340
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level........................ 5 5 * * * * * * * * 10 11
Estimated Outlays.................................... 5 5 * * * * * * * * 10 11
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: * = less than $500,000.
Basis of estimate: For this estimate, CBO assumes that the
legislation will be enacted during fiscal year 2013 and that
the necessary amounts will be appropriated for each fiscal
year.
DIRECT SPENDING
H.R. 527 would authorize BLM to retain proceeds from the
sale of helium from the Federal Helium Reserve to pay for the
costs of operating the reserve. Under current law, CBO expects
that the agency's authority to retain those proceeds will end
in 2013. After 2013, any funds necessary to operate the Federal
Helium Reserve (and sell helium) would need to be appropriated
by the Congress. Thus, under current law, any offsetting
receipts from those sales would be contingent on the
appropriation of such funds.
Because the legislation would authorize BLM to retain
proceeds from helium sales to cover the costs of operating the
Federal Helium Reserve after 2013, CBO estimates that enacting
H.R. 527 would lead to additional helium sales, increasing net
offsetting receipts by $340 million over the 2014-2023 period.
Under the bill, BLM would be authorized to sell helium to
private entities for commercial uses until the volume of
recoverable helium at the Federal Helium Reserve is drawn down
to a specified level. After that date, BLM would be authorized
to sell helium only to other federal entities for medical and
scientific uses. Based on information provided by BLM, CBO
expects that commercial sales would cease at the end of 2019.
Over the 2014-2019 period, we estimate that gross proceeds from
the commercial sale of helium would total $585 million and the
costs to operate the Federal Helium Reserve would total $160
million, resulting in a net increase in offsetting receipts
totaling $425 million.
Because CBO expects that BLM would no longer receive funds
from the sale of helium to nonfederal sources after 2019, we
expect that the agency would spend some of the remaining
proceeds to fund the operation of the Federal Helium Reserve
over the 2020-2023 period. Based on information provided by
BLM, CBO estimates that the agency would spend about $85
million over that period to operate the reserve.
SPENDING SUBJECT TO APPROPRIATION
H.R. 527 would require BLM, in coordination with other
agencies, to conduct assessments that would quantify the amount
of helium resources in the United States and worldwide. The
bill also would require the agency to complete various reports
related to helium production on federal lands. Based on
information from the Department of the Interior regarding the
costs of carrying out similar activities, CBO estimates that
conducting the assessments would cost $10 million over the
2014-2015 period and completing the reports would cost less
than $100,000 a year over the 2014-2023 period, assuming
appropriation of the necessary amounts.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in the following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 527 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON NATURAL RESOURCES ON MARCH 20, 2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
---------------------------------------------------------------------------------------------------------
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013-2018 2013-2023
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact................ 0 -150 -105 -80 -55 -30 -5 25 20 20 20 -420 -340
--------------------------------------------------------------------------------------------------------------------------------------------------------
Intergovernmental and private-sector impact: H.R. 527
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments.
Estimate prepared by: Federal Costs: Jeff LaFave; Impact on
State, Local, and Tribal Governments: Melissa Merrell; Impact
on the Private Sector: Amy Petz.
Estimate approved by: Theresa Gullo; Deputy Assistant
Director for Budget Analysis.
2. Section 308(a) of Congressional Budget Act. As required
by clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives and section 308(a) of the Congressional Budget
Act of 1974, this bill does not contain any new budget
authority, credit authority, or an increase or decrease in
revenues or tax expenditures. Based on information provided by
Bureau of Land Management, CBO estimates that enacting H.R. 527
would increase net offsetting receipts (a credit against direct
spending) by $340 million over the 2014-2023 period; therefore,
pay-as-you-go procedures apply. In addition, CBO estimates that
completing the assessments and additional reports required
under the bill would cost $11 million over the 2014-2023
period, assuming appropriation of the necessary amounts.
Enacting H.R. 527 would not affect revenues.
3. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill is to amend the Helium Act to complete
the privatization of the Federal helium reserve in a
competitive market fashion that ensures stability in the helium
markets while protecting the interests of American taxpayers.
Earmark Statement
This bill does not contain any Congressional earmarks,
limited tax benefits, or limited tariff benefits as defined
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of
the House of Representatives.
Compliance With Public Law 104-4
This bill contains no unfunded mandates.
Compliance With H. Res. 5
Directed Rule Making. The Chairman does not believe that
this bill directs any executive branch official to conduct any
specific rule-making proceedings.
Duplication of Existing Programs. This bill does not
establish or reauthorize a program of the federal government
known to be duplicative of another program. Such program was
not included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-139
or identified in the most recent Catalog of Federal Domestic
Assistance published pursuant to the Federal Program
Information Act (Public Law 95-220, as amended by Public Law
98-169) as relating to other programs.
Preemption of State, Local or Tribal Law
This bill is not intended to preempt any State, local or
tribal law.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
HELIUM ACT
* * * * * * *
Sec. 2. As used in this Act:
(1) The term ``Secretary'' means the Secretary of the
Interior[;].
(2) The term ``person'' means any individual,
corporation, partnership, firm, association, trust,
estate, public or private institution, or State or
political subdivision thereof[; and].
(3) The terms ``helium-bearing natural gas'' and
``helium-gas mixture'' mean, respectively, natural gas
and gas mixtures containing three-tenths of 1 per
centum or more of helium by volume.
(4) Federal helium reserve.--
(A) In general.--The term ``Federal Helium
Reserve'' means the Bureau of Land Management
Cliffside Gas Field and supporting
infrastructure.
(B) Inclusions.--The term ``Federal Helium
Reserve'' includes--
(i) the Cliffside Gas Field helium
storage reservoir; and
(ii) all associated infrastructure
owned, leased, or managed under
contract by the Secretary for storage,
transportation, withdrawal,
purification, or management of helium.
(5) Qualifying domestic helium transaction.--The term
``qualifying domestic helium transaction''--
(A) except as provided in subparagraph (B),
means any new or newly renegotiated agreement
for the purchase or sale of at least 15,000,000
standard cubic feet of crude helium or bulk
liquid helium delivered in the United States in
the most recent full fiscal year; and
(B) does not include any purchase of crude
helium from the Secretary.
(6) Tolling agreement.--The term ``tolling
agreement'' means an agreement between a helium refiner
and another party under which the helium refiner agrees
to process the other person's helium at an agreed upon
price.
* * * * * * *
[Sec. 6. (a) The Department of Defense, the Atomic Energy
Commission, and other agencies of the Federal Government, to
the extent that supplies are readily available, shall purchase
all major requirements of helium from persons who have entered
into enforceable contracts to purchase an equivalent amount of
crude helium from the Secretary.
[(b) The Secretary is authorized to sell crude helium for
Federal, medical, scientific, and commercial uses in such
quantities and under such terms and conditions as he
determines. Except as may be required by reason of subsection
(a), sales of crude helium under this section shall be in
amounts as the Secretary determines, in consultation with the
helium industry, necessary to carry out this subsection with
minimum market disruption.
[(c) Sales of crude helium by the Secretary shall be at
prices established by him which shall be adequate to cover all
costs incurred in carrying out the provisions of this chapter
and to repay to the United States by deposit in the Treasury,
all funds required to be repaid to the United States as of
October 1, 1995 under this section (referred to in this
subsection as ``repayable amounts''). The price at which crude
helium is sold by the Secretary shall not be less than the
amount determined by the Secretary by--
[(1) dividing the outstanding amount of such
repayable amounts by the volume (in million cubic feet)
of crude helium owned by the United States and stored
in the Bureau of Mines Cliffside Field at the time of
the sale concerned, and
[(2) adjusting the amount determined under paragraph
(1) by the Consumer Price Index for years beginning
after December 31, 1995.
[(d) Extraction of Helium From Deposits on Federal Lands.--
All moneys received by the Secretary from the sale or
disposition of helium on Federal lands shall be paid to the
Treasury and credited against the amounts required to be repaid
to the Treasury under subsection (c).
[(e)(1) All moneys received under this Act, including moneys
from sale of helium or other products resulting from helium
operations and from the sale of excess property shall be
credited to the helium production fund, which shall be
available without fiscal year limitation, for carrying out the
provisions of this Act, including any research relating to
helium carried out by the Department of the Interior. Amounts
accumulating in said fund in excess of amounts the Secretary
deems necessary to carry out this Act and contracts negotiated
hereunder shall be paid to the Treasury and credited against
the amounts required to be repaid to the Treasury under
subsection (c) of this section.
[(2)(A) Within 7 days after the commencement of each fiscal
year after the disposal of the facilities referred to in
section 4(c), all amounts in such fund in excess of $2,000,000
(or such lesser sum as the Secretary deems necessary to carry
out this Act during such fiscal year) shall be paid to the
Treasury and credited as provided in paragraph (1).
[(B) On repayment of all amounts referred to in subsection
(c), the fund established under this section shall be
terminated and all moneys received under this Act shall be
deposited in the general fund of the Treasury.]
SEC. 6. SALE OF HELIUM.
(a) Phase A: Finalizing Debt Payoff.--
(1) In general.--Subject to paragraph (2), the
Secretary shall offer for sale crude helium for
Federal, medical, research, scientific, and commercial
uses in such quantities, at such times, and under such
conditions as the Secretary determines necessary to
carry out this subsection with minimum market
disruption.
(2) Minimum quantity.--The Secretary shall offer for
sale during each fiscal year under paragraph (1) a
quantity of crude helium equivalent to the quantity of
crude helium produced from the Federal Helium Reserve
during fiscal year 2012.
(3) In-kind purchase by federal agencies and
grantees.--Federal agencies, and holders of 1 or more
Federal research grants, may purchase refined helium
under this subsection for Federal, medical, research
and scientific uses from persons who have entered into
enforceable contracts to purchase an equivalent
quantity of crude helium from the Secretary.
(4) Prices and determinations.--Sales of crude helium
by the Secretary under this subsection shall be at
prices established by the Secretary that shall not be
less than the price in the last sale of crude helium
from the Federal Helium Reserve before the date of
enactment of the Responsible Helium Administration and
Stewardship Act, except that any sale to a person
referred to in paragraph (3) for a purchase authorized
by that paragraph shall be at a price specified by the
Secretary.
(5) Duration.--This subsection applies during the
period--
(A) beginning on the date of enactment of the
Responsible Helium Administration and
Stewardship Act; and
(B) ending on the expiration of the one-year
period following such date of enactment.
(b) Phase B: Maximizing Total Recovery of Helium and
Increasing Returns to the American Taxpayer.--
(1) In general.--The Secretary shall offer for sale
at auction, as described in subsection (d), crude
helium for medical, research, scientific, and
commercial uses in such quantities, at such times, and
under such conditions as the Secretary determines
necessary--
(A) to maximize total recovery and
conservation of helium from the Federal Helium
Reserve;
(B) to manage crude helium sales according to
the ability of the Secretary to extract and
produce helium from the Federal Helium Reserve;
(C) to respond to helium market supply and
demand and minimize market disruption; and
(D) to give priority to meeting the helium
demand of Federal users through purchases under
paragraph (2).
(2) In-kind purchase by federal agencies and
grantees.--Any Federal agency, and any holder of 1 or
more Federal research grants, may purchase refined
helium for Federal, medical, research, and scientific
uses from an eligible person. The Secretary shall then
provide an equivalent volume of crude helium to the
eligible person as if the eligible person was the
successful bidder for the helium at auction. Provision
of helium by the Secretary under this paragraph shall
not be considered a sale of helium by the Secretary at
auction. The Secretary shall provide such helium at the
minimum price established by the Secretary for the most
recent auction held under this subsection or such other
price as may be specified by the Secretary.
(3) Eligible person.--For purposes of this
subsection, the term ``eligible person'' means a helium
distributer who is registered as such with the
Secretary.
(4) Duration.--This subsection applies during the
period--
(A) beginning on the expiration of the period
described in subsection (a)(5)(B); and
(B) ending on the date on which the volume of
recoverable crude helium at the Federal Helium
Reserve (other than privately owned quantities
of crude helium stored temporarily at the
Federal Helium Reserve under section 5 and this
section) is 3,000,000,000 standard cubic feet.
(5) Maximum annual sales.--Notwithstanding any
provision of subsection (d), for each fiscal year, the
Secretary may not offer or provide for sale under this
subsection a total volume of crude helium that exceeds
the lesser of--
(A) the projected maximum total production
capacity of the Federal Helium Reserve during
that fiscal year; and
(B) the maximum refining capacity of persons
connected by pipeline to the Federal Helium
Reserve during that fiscal year.
(c) Phase C: Access for Federal Users.--
(1) In general.--The Secretary may offer for sale
crude helium for Federal uses (including medical,
research, and scientific uses) in such quantities, at
such times, and under such conditions as the Secretary
determines necessary to carry out this subsection.
(2) Purchase by federal agencies and grantees.--
Federal agencies, and holders of 1 or more Federal
research grants related to helium or the use of helium,
may purchase refined helium under this subsection for
Federal uses (including medical, research, and
scientific uses) from persons who have entered into
enforceable contracts to purchase an equivalent
quantity of crude helium from the Secretary.
(3) Effective date.--This subsection applies
beginning on the day after the date described in
subsection (b)(4)(B).
(d) Auction and Minimum Prices Determination.--
(1) In general.--Sales of crude helium by the
Secretary in auctions under subsection (b) shall be
conducted under the conditions described in this
section and at no less than the minimum price
established by the Secretary.
(2) Auction.--The Secretary shall conduct such
auctions of crude helium as soon as practical but no
later than beginning 180 days after the first day of
the period described in subsection (b)(4), under the
following conditions:
(A) 60 percent of the volume of crude helium
made available in each auction shall be made
available to entities that can show the
Secretary they have either adequate refining
capacity or tolling agreements for refining in
place, in accordance with the conditions set
forth in paragraph (3).
(B) 20 percent of the volume of crude helium
made available in each auction shall be made
available to any bidder, in accordance with the
conditions set forth in paragraph (3).
(C) In each auction after the first auction
under this subsection after the date of the
enactment of the Responsible Helium
Administration and Stewardship Act, the
Secretary shall make available an additional
volume of crude helium, in an amount equivalent
to the amount made available under subparagraph
(B) that the Secretary certifies can be
refined, through tolling agreements or
otherwise. Of such additional volume, a person
may not acquire in the auction a volume in
excess of the volume they demonstrate to the
Secretary they have the ability to refine
through either refining capacity or tolling
agreements.
(D) The Secretary shall conduct such auctions
at such times as the Secretary determines
necessary to ensure a reliable supply of helium
and a fair return to taxpayers, but no less
frequently than 2 times each fiscal year.
(E) For purposes of the first auction under
this subsection after the date of the enactment
of the Responsible Helium Administration and
Stewardship Act, the Secretary may revise the
percentage under subparagraph (A) so as to make
available for auction 100 percent of the volume
of crude helium intended to be offered.
(F) The Secretary may adjust the percentages
and amount specified in subparagraphs (A)
through (C), respectively, in any auction if
the Secretary determines the adjustment is
necessary to--
(i) respond to market supply and
demand and minimize market disruption;
or
(ii) increase participation in helium
auctions.
(G) The Secretary may conduct an auction no
more frequently than once each fiscal year of
an amount of helium equal to up to 10 percent
of the volume of crude helium to be made
available at auction during the following
fiscal year. Such amount of crude helium shall
be made available to any bidder, in accordance
with the conditions set forth in paragraph (3).
Notwithstanding paragraph (3)(C), for crude
helium sold in such an auction the Secretary
shall begin charging a storage fee under clause
(i) of that paragraph beginning 1 year after
the date of such auction, and shall begin
charging increasing storage fees under clause
(ii) of that paragraph beginning 270 days after
beginning charging storage fees under clause
(i) of that paragraph.
(3) Auction conditions.--
(A) Bidding method.--The Secretary shall
conduct each auction by sealed bid for
predetermined volume lots, unless the Secretary
determines that an alternative bidding method
may result in more revenue to the Federal
Government or may increase participation in the
auction.
(B) Bidder qualifications and limits.--In
carrying out an auction under subsection (b),
the Secretary--
(i) may accept bids only from persons
the Secretary determines are seeking to
purchase helium for their own use, for
refining, or for delivery to users; and
(ii) may not award to a person more
than 30 percent of the total volume of
crude helium offered in that auction,
except that the Secretary may adjust
such limitation based on the number of
bidders in the auction.
(C) Storage fees.--In each auction the
Secretary--
(i) shall begin charging each winning
bidder a storage fee for crude helium
purchased by the bidder that remains in
the Federal Helium Reserve, beginning
on the date the Secretary receives
payment of the purchase price for the
helium; and
(ii) beginning 270 days after the
date of the auction, shall charge
increasing storage fees that will
encourage the withdrawal of the helium
no later than 2 years after the date of
the auction.
(4) Determination of minimum sale price.--The
Secretary shall make a determination of the minimum
sale price for sales described in paragraph (1) using--
(A) a confidential survey of qualifying
domestic helium transactions to which any
holder of a contract with the Secretary for the
acceptance, storage, and redelivery of crude
helium in the Cliffside Gas Field helium
storage reservoir is a party;
(B) current market crude helium prices as
represented by the sale price at any auction
held by the Secretary in the preceding 2 years;
(C) the volume-weighted average cost among
helium refiners, producers, and liquefiers, in
dollars per thousand cubic feet, of converting
gaseous crude helium into bulk liquid helium;
(D) the additional layer of cost and profit
associated with the sale or resale of bulk
liquid helium; and
(E) the sale price for crude helium offered
in the most recent auction under paragraph
(2)(G).
(5) Authority of secretary.--The Secretary shall--
(A) require all persons that are parties to a
contract with the Secretary for the acceptance,
storage, and redelivery of crude helium to
disclose, on a strictly confidential basis in
dollars per thousand cubic feet, the weighted
average price of all crude helium and bulk
liquid helium purchased, sold, or processed by
the persons in all qualifying domestic helium
transactions during the fiscal year;
(B) appoint a qualified independent third
party to perform data collection and analysis
for the purposes of the survey under paragraph
(4)(A); and
(C) adopt such administrative policies and
procedures as the Secretary considers necessary
and reasonable to ensure robust protection of
the confidentiality of data submitted by
private persons.
(6) Changes in minimum price.--If the Secretary
believes that the minimum price as determined by the
survey under paragraph (4)(A) may not be reflective of
the current market value of helium, or if a higher
minimum price may result in greater conservation of the
Federal crude helium resource, the Secretary may change
the minimum price charged for crude helium sold under
this section by up to 10 percent of the price
determined under paragraph (4). If at any sale in which
the minimum price is increased under this paragraph all
crude helium offered is sold at the increased price,
the Secretary shall consider that increased price to be
the minimum price determined under paragraph (4) for
all future sales of crude helium under this section
unless that price is further changed in accordance with
this paragraph.
(7) Ensuring fair and nondiscriminatory acts and
practices.--The Secretary may issue such rules and
regulations with respect to ensure bidding, transfer,
and refining of helium produced from or held in the
Federal Helium Reserve as may be necessary to ensure
fair and nondiscriminatory acts and practices.
(8) Auction records.--
(A) Furnishing records.--Every person
participating in auctions of helium from the
Federal Helium Reserve shall furnish to the
Secretary on request such records of
transactions in helium auctions as the
Secretary may require to reconstruct bidding or
trading in the course of a particular inquiry
or investigation being conducted by the
Secretary for enforcement or surveillance
purposes. In requiring information pursuant to
this paragraph, the Secretary shall specify the
information required, the period for which it
is required, and the time and date on which the
information must be furnished.
(B) Reporting requirements.--The Secretary
may issue rules to require persons
participating in helium auctions to file such
reports as the Secretary determines to be
necessary for purposes of this Act.
(C) Recordkeeping requirements.--Rules under
this subsection may require specified persons
to make and keep for prescribed periods such
records as the Secretary determines are
necessary or appropriate to ensure that such
persons can comply with reporting requirements
under this subsection.
(D) Limitation on disclosure of
information.--Notwithstanding any other
provision of law, the Secretary shall not be
compelled to disclose any proprietary
information required to be kept or reported
under this subsection. Nothing in this
subsection authorizes the Secretary to withhold
information from Congress, prevents the
Secretary from complying with a request for
information from any other Federal department
or agency requesting information for purposes
within the scope of its jurisdiction, or
prevents the Secretary from complying with an
order of a court of the United States in an
action brought by the United States or by the
Secretary.
(e) Helium Production Fund.--
(1) In general.--All amounts received under this Act
shall be credited to the Helium Production Fund, which
shall be available without fiscal year limitation for
purposes considered necessary by the Secretary to carry
out this subsection.
(2) Administrative expenses.--Amounts in the Helium
Production Fund may be used by the Secretary to conduct
helium auctions and otherwise administer this Act.
(3) Repayment amounts.--During the period described
in subsection (a)(4), amounts in the Helium Production
Fund in excess of amounts the Secretary considers
necessary to conduct helium auctions and otherwise
administer this Act shall be paid to the general fund
of the Treasury and credited against all amounts
required to be repaid to the United States under this
Act as of October 1, 1995.
(4) Capital investments and maintenance.--Amounts in
the Helium Production Fund in excess of amounts the
Secretary considers necessary to carry out paragraphs
(1) through (3) may be used to fund the following
capital investments in upgrades and maintenance at the
Federal Helium reserve:
(A) Wellhead maintenance at the Cliffside Gas
Field helium storage reservoir.
(B) Capital investments in maintenance and
upgrades of facilities that pressurize the
Cliffside Gas Field helium storage reservoir.
(C) Capital investments in maintenance and
upgrades of equipment related to the storage,
withdrawal, transportation, purification, and
sale of crude helium at the Cliffside Gas Field
helium storage reservoir.
(D) Any other scheduled or unscheduled
maintenance of the Cliffside Gas Field helium
storage reservoir and helium pipeline.
(5) Excess funds.--Amounts in the Helium Production
Fund in excess of amounts the Secretary considers
necessary to carry out paragraphs (1) through (4) shall
be paid to the general fund of the Treasury.
(f) Extraction of Helium From Deposits on Federal Land.--All
amounts received by the Secretary from the sale or disposition
of crude helium on Federal land shall be paid to the general
fund of the Treasury and credited against all amounts required
to be repaid to the United States under this Act as of October
1, 1995.
(g) Maintenance of Helium Supply.--The Secretary shall ensure
that there is no disruption in the supply of helium from the
Federal Helium Reserve during the transition between phases of
helium sales under subsections (a), (b), and (c).
* * * * * * *
SEC. 15. PIPELINE ACCESS.
(a) Annual Report.--The Secretary, acting through the Bureau
of Land Management, shall make available on the Internet the
current refining capacity on the Federal Helium Reserve
pipeline, including--
(1) refinery capacity and future capacity estimates;
(2) ownership of federally auctioned helium held in
the Federal Helium Reserve;
(3) volume of helium delivered to individual buyers
through such pipeline;
(4) for each helium refiner--
(A) the number of tolling agreements entered
into before October 1, 2013; and
(B) for each fiscal year thereafter--
(i) the number of tolling agreements
entered into;
(ii) the number of tolling requests
received; and
(iii) the total volume of helium
refined under each tolling agreement
entered into;
(5) pipeline pressure constraints; and
(6) other factors that will increase transparency for
persons interested in entering refining contracts with
existing refiners.
(b) New Refining Capacity.--The Secretary shall take any
applications for new refining capacity on the Federal Helium
Reserve pipeline. To create more competition, any new refining
capacity added to the Federal Helium Reserve pipeline system
shall be granted access to crude helium that is equal to the
access provided to existing refining facilities.
(c) Access by Purchasers of Helium.--The Secretary shall
manage Federal Helium Reserve pipeline access in a competitive
manner to ensure that all persons purchasing helium have equal
access to timing and delivery of the helium, subject to the
capacity of the system.
(d) Scheduling Deliveries.--The Secretary shall, to the
greatest extent practicable, make the scheduling of crude
helium deliveries through the Federal Helium Reserve pipeline
open and transparent to all purchasers of helium through the
auction process, and to the public if the Secretary believes
that it is in the national interest.
(e) Scheduling Priority.--
(1) In general.--In scheduling crude helium
deliveries through the Federal Helium Reserve pipeline
the Secretary shall grant pipeline access in the
following order of priority:
(A) Helium held in the Reserve as a result of
a purchase under subsection (b)(2).
(B) Helium sold at auction being delivered to
fulfill a tolling agreement.
(C) Other helium sold at auction.
(D) Helium held in the Reserve as a result of
a crude helium exchange resulting from any
temporary shutdown of the Reserve or of a
refinery on the Reserve pipeline.
(E) Helium held in inventory in the Reserve
before the date of enactment of the Responsible
Helium Administration and Stewardship Act.
(2) In scheduling such deliveries of helium described
in each of subparagraphs (A) through (E) of paragraph
(1), the Secretary shall grant pipeline access based on
the following order of priority:
(A) The price paid to the United States for
the helium, giving higher priority to helium
for which a greater price was paid.
(B) The date the helium was purchased from
the Secretary, giving higher priority to helium
purchased on an earlier date.
(C) Any other factor the Secretary considers
appropriate to prioritize delivery.
SEC. 16. BLM REPORTING REQUIREMENTS TO FACILITATE SUPPLY CHAIN
INFORMATION.
(a) In General.--In order to provide the market with
appropriate and timely information affecting the helium
resource, the Director of the Bureau of Land Management shall
establish, no later than 90 days after the date of enactment of
the Responsible Helium Administration and Stewardship Act, a
real-time reporting process, including reporting over the
Internet, to provide data that will affect the helium industry,
including such effects for all persons in such industry from
crude helium suppliers to end users.
(b) Included Information.--Information provided under this
section shall include the following:
(1) Annual maintenance schedules and quarterly
updates thereof, which shall be available on the
Internet, to the extent practicable, and shall include
the following:
(A) The date and duration of planned
shutdowns of the Federal Helium Reserve
pipeline.
(B) The nature of work to be undertaken,
whether routine, extended, or extraordinary.
(C) The anticipated impact on the helium
supply.
(D) The efforts to minimize any impact on the
supply chain.
(E) Any concerns regarding maintenance of the
Federal Helium Reserve pipeline, pressure of
such pipeline, or deviation from normal
operation of such pipeline.
(2) For each unplanned outage, the following:
(A) The beginning of the outage.
(B) The expected duration of outage.
(C) A description of the problem.
(D) The estimated impact on helium supply.
(E) A plan to correct problems, an estimate
of the potential timeframe for correction, and
the likelihood of plan success within the
timeframe.
(F) Efforts to minimize negative impacts on
the helium supply chain.
(G) Updates on repair status and the
anticipated online date.
(3) Minutes of meetings between the Bureau of Land
Management and the Cliffside Refiners Limited
Partnership, including--
(A) publication of the minutes of each
meeting between the Bureau of Land Management
and the Cliffside Refiners Limited Partnership,
including attendees and their affiliations, on
the Internet site of the Bureau within 1 week
after the meeting; and
(B) indication in the minutes of any action
taken that could affect the supply or operating
status related to the Federal helium program.
(4) Current predictions of the lifespan of the
Federal Helium Reserve, including how much longer such
crude helium supply will be available based on current
and forecasted demand and the projected maximum
production capacity of the Federal Helium Reserve for
the following fiscal year.
SEC. [15] 17. REPORT ON HELIUM.
(a) NAS Study and Report.--Not later than three years before
the date on which the Secretary commences offering for sale
crude helium under section 8, the Secretary shall enter into
appropriate arrangements with the National Academy of Sciences
to study and report on whether such disposal of helium reserves
will have a substantial adverse effect on United States
scientific, technical, biomedical, or national security
interests.
(b) Transmission to Congress.--Not later than 18 months
before the date on which the Secretary commences offering for
sale crude helium under section 8, the Secretary shall transmit
to the Congress--
(1) the report of the National Academy under
subsection (a);
(2) the findings of the Secretary, after
consideration of the conclusions of the National
Academy under subsection (a) and after consultation
with the United States helium industry and with heads
of affected Federal agencies, as to whether the
disposal of the helium reserve under section 8 will
have a substantial adverse effect on the United States
helium industry, United States, helium market or United
States, scientific, technological, biomedical, or
national security interests; and
(3) if the Secretary determines that selling the
crude helium reserves under the formula established in
section 8 will have a substantial adverse effect on the
United States helium industry, the United States helium
market or United States scientific, technological,
biomedical, or national security interest, the
Secretary shall make recommendations, including
recommendations for proposed legislation, as may be
necessary to avoid such adverse effects.
Sec. [17] 18. If any provision of this Act, or the
application of such provision to any person or circumstance, is
held invalid, the remainder of this Act or the application of
such provision to persons or circumstances other than those as
to which it is held invalid, shall not be affected thereby.
Exchange of Committee Correspondence
House of Representatives,
Committee on Natural Resources,
Washington, DC, April 16, 2013.
Hon. Lamar Smith, Chairman,
Committee on Science, Space and Technology,
Rayburn House Office Building, Washington, DC.
Dear Mr. Chairman: I am writing regarding the
jurisdictional interest of the Committee on Science, Space and
Technology over provisions in H.R. 527, the Responsible Helium
Administration and Stewardship Act. This bill was solely
referred to the Committee on Natural Resources, and the
Committee ordered it reported with an amendment on March 20,
2013, by voice vote.
A bipartisan bill, H.R. 527 amends the Helium Act to
complete the privatization of the Federal Helium Reserve
created under that Act in a competitive market fashion that
ensures stability in the helium markets while protecting the
interests of the American taxpayer.
Because of the importance of advancing this legislation to
the House Floor in an expeditious manner, the Committee on
Natural Resources requests that you waive a jurisdictional
claim of the Committee on Science, Space, and Technology on
this bill. By waiving a claim on H.R. 527, the jurisdictional
prerogatives of the Committee on Science, Space and Technology
will not be prejudiced in any way. Moreover, if a conference on
the bill becomes necessary, I would support your request to
have conferees named from your committee to protect your
jurisdictional interests.
Thank you for your consideration of my request. I would be
happy to include this letter and your response in the written
report on H.R. 527 or included in the Congressional Record
during debate on the bill.
Sincerely,
Doc Hastings,
Chairman.
House of Representatives,
Committee on Science, Space, and Technology,
Washington, DC, April 18, 2013.
Hon. Doc Hastings, Chairman,
Committee on Natural Resources,
Longworth House Office Building, Washington, DC.
Dear Chairman Hastings: I am writing to you concerning the
jurisdictional interest of the Committee on Science, Space, and
Technology in H.R. 527, the ``Responsible Helium Administration
and Stewardship Act.'' The bill contains provisions that fall
within the jurisdiction of the Committee on Science, Space, and
Technology.
I recognize and appreciate the desire to bring this
legislation before the House of Representatives in an
expeditious manner, and accordingly, I will waive further
consideration of this bill in Committee, notwithstanding any
provisions that fall within the jurisdiction of the Committee
on Science, Space, and Technology. This waiver, of course, is
conditional on our mutual understanding that agreeing to waive
consideration of this bill should not be construed as waiving,
reducing, or affecting the jurisdiction of the Committee on
Science, Space, and Technology.
Additionally, the Committee on Science, Space, and
Technology expressly reserves its authority to seek conferees
on any provision within its jurisdiction during any House-
Senate conference that may be convened on this, or any similar
legislation. I ask for your commitment to support any request
by the Committee for conferees on H.R. 527 as well as any
similar or related legislation.
I ask that a copy of this letter and your response be
included in the report on H.R. 527.
Sincerely,
Lamar Smith,
Chairman,
Committee on Science, Space, and Technology.
ADDITIONAL VIEWS
H.R. 527: ``The Responsible Helium Administration and Stewardship Act''
We support H.R. 527 as reported out of Committee because it
would update our nation's helium policy to ensure a continued
supply of helium for our high-tech, medical, research and
defense industries while also maximizing market transparency
and return to American taxpayers.
H.R. 527 would address the two impending crises we are
facing with respect to our nation's supply of helium. If
Congress fails to act during the next seven months, our
nation's supply of helium could be disrupted as soon as October
of this year, when the authority for the Interior Department to
continue funding and operating our nation's helium reserve is
set to expire. This could result in nearly half of the United
States' supply of helium being cut-off, leading to significant
price spikes and supply disruptions for American businesses,
consumers and researchers.
In the longer term, if we do not update our nation's helium
policy, in a few short years we may find ourselves facing even
more disruption in domestic helium supplies and even larger
price spikes when the dwindling stockpile in the Federal Helium
Reserve is exhausted. H.R. 527 would create price transparency
and enhanced competition in helium markets, thereby
incentivizing private investment in new domestic supplies of
helium. H.R. 527 would increase access to our nation's helium
reserve to entities beyond the four refining companies
currently connected to the helium pipeline, as the National
Academies of Science has recommended. It would also ensure a
steady helium supply for federal users and researchers for many
years.
We must also continue to examine our nation's helium policy
going forward. It may be in the best long-term interests of
American industry and our national security to keep this
important federal helium storage facility functioning, and to
examine ways to maximize American sourcing of helium in the
decades ahead.
We should continue to examine and evaluate the best way to
use this important asset and whether we should be treating
helium as a strategic resource so that we are not forced to
rely on insecure and irregular helium supplies from foreign
countries and pay dramatically higher prices to meet American
scientific and industrial needs. Indeed, the attack on the
Algerian natural gas plant in January 2013 demonstrated the
potential vulnerability associated with relying on helium
production from unstable regions. Given the increasingly
volatile and unpredictable political climate in the Middle East
and Persian Gulf, which is another large and growing source of
the world's helium supply, the United States should put a very
high priority on finding helium sources closer to home and in
more stable regions.
Edward J. Markey,
Ranking Member, Natural
Resources Committee.
Rush D. Holt,
Ranking Member, Subcommittee
on Energy & Mineral
Resources.