Collapse to view only § 167c. Storage, withdrawal and transportation
- §§ 161 to 164. Omitted
- § 165. Repealed.
- § 166. Omitted
- § 167. Definitions
- § 167a. Authority of Secretary
- § 167b. Storage, transportation, and withdrawal of crude helium
- § 167c. Storage, withdrawal and transportation
- § 167d. Sale of crude helium
- § 167e. Intragovernmental cooperation
- § 167f. Repealed.
- § 167g. Promulgation of rules and regulations
- § 167h. Administrative procedure
- § 167i. Exclusion from Natural Gas Act provisions
- § 167j. Land conveyance in Potter County, Texas
- § 167k. Violations; penalties
- § 167l. Injunctions
- § 167m. Information
- § 167n. Helium gas resource assessment
- § 167o. Low-Btu gas separation and helium conservation
- § 167p. Helium-3 separation
- § 167q. Federal agency helium acquisition strategy
§§ 161 to 164. Omitted
§ 165. Repealed. Aug. 26, 1954, ch. 937, title V, § 542(a)(13), 68 Stat. 861
§ 166. Omitted
§ 167. Definitions
In this chapter:
(1) Cliffside Field
(2) Federal Helium Pipeline
(3) Federal Helium Reserve
(4) Federal Helium System
The term “Federal Helium System” means—
(A) the Federal Helium Reserve;
(B) the Cliffside Field;
(C) the Federal Helium Pipeline; and
(D) all other infrastructure owned, leased, or managed under contract by the Secretary for the storage, transportation, withdrawal, enrichment, purification, or management of helium.
(5) Federal user
(6) Low-Btu gas
(7) Person
(8) Priority pipeline access
(9) Qualified bidder
(A) In general
(B) Exclusion
(10) Qualifying domestic helium transaction
(11) Refiner
(12) Secretary
(Mar. 3, 1925, ch. 426, § 2, as added Pub. L. 86–777, § 2, Sept. 13, 1960, 74 Stat. 918; amended Pub. L. 113–40, § 2, Oct. 2, 2013, 127 Stat. 534.)
§ 167a. Authority of Secretary
(a) Extraction and disposal of helium on Federal lands
(1) In general
(2) Leasehold rights
(3) Limitation
(4) Regulations
(5) Existing rights
(6) Terms and conditions
(7) Prior agreements
(b) Storage, transportation, and sale
(c) Extraction of helium from deposits on Federal land
(Mar. 3, 1925, ch. 426, § 3, as added Pub. L. 86–777, § 2, Sept. 13, 1960, 74 Stat. 918; amended Pub. L. 104–273, § 3, Oct. 9, 1996, 110 Stat. 3315; Pub. L. 113–40, § 3, Oct. 2, 2013, 127 Stat. 535.)
§ 167b. Storage, transportation, and withdrawal of crude helium
(a) Storage, transportation, and withdrawal
(b) Cessation of production, refining, and marketing
(c) Disposal of facilities
(1) In general
(2) Applicable law
(3) Proceeds
(4) Costs
(5) Exception
(d) Existing contracts
(1) In general
(2) Costs
(Mar. 3, 1925, ch. 426, § 4, as added Pub. L. 86–777, § 2, Sept. 13, 1960, 74 Stat. 920; amended Pub. L. 104–273, § 3, Oct. 9, 1996, 110 Stat. 3316; Pub. L. 113–40, § 7(a), Oct. 2, 2013, 127 Stat. 544.)
§ 167c. Storage, withdrawal and transportation
(a) In general
(b) Minimum fees
(c) Schedule of fees
(d) Treatment
(e) Storage and deliveryIn accordance with this section, the Secretary shall—
(1) allow any person or qualified bidder to which crude helium is sold or auctioned under section 167d of this title to store helium in the Federal Helium Reserve; and
(2) establish a schedule for the transportation and delivery of helium using the Federal Helium System that—
(A) ensures timely delivery of helium auctioned pursuant to section 167d(b)(2) of this title;
(B) ensures timely delivery of helium acquired from the Secretary from the Federal Helium Reserve by means other than an auction under section 167d(b)(2) of this title, including nonallocated sales; and
(C) provides priority access to the Federal Helium Pipeline for in-kind sales for Federal users.
(f) New Pipeline access
(Mar. 3, 1925, ch. 426, § 5, as added Pub. L. 86–777, § 2, Sept. 13, 1960, 74 Stat. 920; amended Pub. L. 104–273, § 3, Oct. 9, 1996, 110 Stat. 3317; Pub. L. 113–40, § 4, Oct. 2, 2013, 127 Stat. 535.)
§ 167d. Sale of crude helium
(a) Phase A: allocation transition
(1) In general
(2) Federal purchases
(3) DurationThis subsection applies during—
(A) the period beginning on October 2, 2013, and ending on September 30, 2014; and
(B) any period during which the sale of helium under subsection (b) is delayed or suspended.
(b) Phase B: auction implementation
(1) In generalThe Secretary shall offer crude helium for sale in quantities not subject to auction under paragraph (2), after completion of each auction, at not less than the minimum price established under paragraph (7), and under such terms and conditions as the Secretary determines necessary—
(A) to maximize total recovery of helium from the Federal Helium Reserve over the long term;
(B) to maximize the total financial return to the taxpayer;
(C) to manage crude helium sales according to the ability of the Secretary to extract and produce helium from the Federal Helium Reserve;
(D) to give priority to meeting the helium demand of Federal users in the event of any disruption to the Federal Helium Reserve; and
(E) to carry out this subsection with minimum market disruption.
(2) Auction quantitiesFor the period described in paragraph (4) and consistent with the conditions described in paragraph (8), the Secretary shall annually auction to any qualified bidder a quantity of crude helium in the Federal Helium Reserve equal to—
(A) for fiscal year 2015, 10 percent of the total volume of crude helium made available for that fiscal year;
(B) for each of fiscal years 2016 through 2019, a percentage of the total volume of crude helium that is 15 percentage points greater than the percentage made available for the previous fiscal year; and
(C) for fiscal year 2020 and each fiscal year thereafter, 100 percent of the total volume of crude helium made available for that fiscal year.
(3) Federal purchases
(4) DurationThis subsection applies during the period—
(A) beginning on October 1, 2014; 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 167c of this title and this section) is 3,000,000,000 standard cubic feet.
(5) Safety valveThe Secretary may adjust the quantities specified in paragraph (2)—
(A) downward, if the Secretary determines the adjustment necessary—
(i) to minimize market disruptions that pose a threat to the economic well-being of the United States; and
(ii) only after submitting a written justification of the adjustment to the Committee on Energy and Natural Resources of the Senate and the Committee on Natural Resources of the House of Representatives; or
(B) upward, if the Secretary determines the adjustment necessary to increase participation in crude helium auctions or returns to the taxpayer.
(6) Auction format
(7) PricesThe Secretary shall annually establish, as applicable, separate sale and minimum auction prices under subsection (a)(1) and paragraphs (1) and (2) using, if applicable and in the following order of priority:
(A) The sale price of crude helium in auctions held by the Secretary under paragraph (2).
(B) Price recommendations and disaggregated data from a qualified, independent third party who has no conflict of interest, who shall conduct a confidential survey of qualifying domestic helium transactions.
(C) The volume-weighted average price of all crude helium and pure helium purchased, sold, or processed by persons in all qualifying domestic helium transactions.
(D) The volume-weighted average cost of converting gaseous crude helium into pure helium.
(8) Terms and conditions
(A) In generalThe Secretary shall require all persons that are parties to a contract with the Secretary for the withdrawal, acceptance, storage, transportation, delivery, or redelivery of crude helium to disclose, on a strictly confidential basis—
(i) the volumes and associated prices in dollars per thousand cubic feet of all crude and pure helium purchased, sold, or processed by persons in qualifying domestic helium transactions;
(ii) the volumes and associated costs in dollars per thousand cubic feet of converting crude helium into pure helium; and
(iii) refinery capacity and future capacity estimates.
(B) ConditionAs a condition of sale or auction to a refiner under subsection (a)(1) and paragraphs (1) and (2), effective beginning 90 days after October 2, 2013, the refiner shall make excess refining capacity of helium available at commercially reasonable rates to—
(i) any person prevailing in auctions under paragraph (2); and
(ii) any person that has acquired crude helium from the Secretary from the Federal Helium Reserve by means other than an auction under paragraph (2) after October 2, 2013, including nonallocated sales.
(9) Use of informationThe Secretary may use the information collected under this chapter—
(A) to approximate crude helium prices; and
(B) to ensure the recovery of fair value for the taxpayers of the United States from sales of crude helium.
(10) Protection of confidentiality
(11) Forward auctionsEffective beginning in fiscal year 2016, the Secretary may conduct a forward auction once each fiscal year of a quantity of helium that is equal to up to 10 percent of the volume of crude helium to be made available at auction during the following fiscal year if the Secretary determines that the forward auction will—
(A) not cause a disruption in the supply of helium from the Reserve;
(B) represent a cost-effective action;
(C) generate greater returns for taxpayers; and
(D) increase the effectiveness of price discovery.
(12) Sale schedule and frequencyFor fiscal year 2015 the Secretary shall conduct only one auction, which shall precede, and one sale, which shall take place no later than August 1, 2014, with full and final payment for the sale being made no later than September 26, 2014. Consistent with the annual volumes established under paragraph (2), effective beginning in fiscal year 2016, the Secretary may conduct auctions twice during each fiscal year if the Secretary determines that the auction frequency will—
(A) not cause a disruption in the supply of helium from the Reserve;
(B) represent a cost-effective action;
(C) generate greater returns for taxpayers; and
(D) increase the effectiveness of price discovery.
(13) One-time sale
(A) In general
(B) Volume soldThe volume of helium sold under this paragraph—
(i) shall be at least 250 million cubic feet; and
(ii) shall be made available for sale consistent with paragraph (2)(B).
(c) Phase C: continued access for Federal users
(1) In general
(2) Federal purchases
(3) Effective date
(d) Phase D: disposal of assets
(1) In general
(2) Applicable law
(3) Proceeds
(4) Costs
(e) Helium Production Fund
(1) In generalAll amounts received under this chapter, including amounts from the sale or auction of crude helium, shall be credited to the Helium Production Fund, which shall be available without fiscal year limitation for purposes determined to be necessary and cost effective by the Secretary to carry out this chapter (other than sections 167n, 167o, and 167p of this title), including capital investments in upgrades and maintenance at the Federal Helium System, including—
(A) well head maintenance at the Cliffside Field;
(B) capital investments in maintenance and upgrades of facilities that pressurize the Cliffside Field;
(C) capital investments in maintenance and upgrades of equipment related to the storage, withdrawal, enrichment, transportation, purification, and sale of crude helium from the Federal Helium Reserve;
(D) entering into purchase, lease, or other agreements to drill new or uncap existing wells to maximize the recovery of crude helium from the Federal Helium System; and
(E) any other scheduled or unscheduled maintenance of the Federal Helium System.
(2) Excess funds
(3) Retirement of public debt
(4) Report
(f) Minimum quantityThe Secretary shall offer for sale or auction during each fiscal year under subsections (a), (b), and (c) a quantity of crude helium that is the lesser of—
(1) the quantity of crude helium offered for sale by the Secretary during fiscal year 2012; or
(2) the maximum total production capacity of the Federal Helium System.
(Mar. 3, 1925, ch. 426, § 6, as added Pub. L. 86–777, § 2, Sept. 13, 1960, 74 Stat. 921; amended Pub. L. 104–273, § 4, Oct. 9, 1996, 110 Stat. 3317; Pub. L. 113–40, § 5, Oct. 2, 2013, 127 Stat. 536.)
§ 167e. Intragovernmental cooperation
The Secretary of Defense and the Chairman of the Atomic Energy Commission may each designate representatives to cooperate with the Secretary in carrying out the purposes of this chapter, and shall have complete right of access to plants, data, and accounts.
(Mar. 3, 1925, ch. 426, § 7, as added Pub. L. 86–777, § 2, Sept. 13, 1960, 74 Stat. 921.)
§ 167f. Repealed. Pub. L. 113–40, § 7(b), Oct. 2, 2013, 127 Stat. 544
§ 167g. Promulgation of rules and regulations
The Secretary is authorized to establish and promulgate such rules and regulations, as are consistent with the directions of this chapter and are necessary to carry out the provisions hereof.
(Mar. 3, 1925, ch. 426, § 9, as added Pub. L. 86–777, § 2, Sept. 13, 1960, 74 Stat. 922.)
§ 167h. Administrative procedure
(a) The provisions of subchapter II of chapter 5 of title 5 shall apply to any agency proceeding and any agency action taken under this chapter, including the issuance of rules and regulations, and the terms “agency proceeding” and “agency action” shall have the meaning specified in subchapter II of chapter 5 of title 5.
(b) In any proceeding under this chapter for the granting, suspending, revoking, or amending of any license, or application to transfer control thereof, and in any proceeding for the issuance or modification of rules and regulations dealing with the activities of licensees, the Secretary shall grant a hearing upon the request of any person whose interest may be affected by the proceeding, and shall admit any such person as a party to such proceeding. Any final order entered in any such proceeding shall be subject to judicial review in the manner prescribed in chapter 158 of title 28, and to the provisions of chapter 7 of title 5.
(Mar. 3, 1925, ch. 426, § 10, as added Pub. L. 86–777, § 2, Sept. 13, 1960, 74 Stat. 922.)
§ 167i. Exclusion from Natural Gas Act provisions
The provisions of the Natural Gas Act of June 21, 1938, as amended [15 U.S.C. 717 et seq.], shall not be applicable to the sale, extraction, processing, transportation, or storage of helium either prior to or subsequent to the separation of such helium from the natural gas with which it is commingled, whether or not the provisions of such Act apply to such natural gas, and in determining the rates of a natural gas company under sections 4 and 5 of the Natural Gas Act, as amended [15 U.S.C. 717c, 717d], whenever helium is extracted from helium-bearing natural gas, there shall be excluded (1) all income received from the sale of helium; (2) all direct costs incurred in the extraction, processing, compression, transportation or storage of helium; and (3) that portion of joint costs of exploration, production, gathering, extraction, processing, compression, transportation or storage divided and allocated to helium on a volumetric basis.
(Mar. 3, 1925, ch. 426, § 11, as added Pub. L. 86–777, § 2, Sept. 13, 1960, 74 Stat. 922.)
§ 167j. Land conveyance in Potter County, Texas
(a) In general
(b) Land description
The parcel of land referred to in subsection (a) is all those certain lots, tracts or parcels of land lying and being situated in the County of Potter and State of Texas, and being the East Three Hundred Thirty-One (E331) acres out of Section Seventy-eight (78) in Block Nine (9), B.S. & F. Survey, (some times known as the G.D. Landis pasture) Potter County, Texas, located by certificate No. 1/39 and evidenced by letters patents Nos. 411 and 412 issued by the State of Texas under date of November 23, 1937, and of record in Vol. 66A of the Patent Records of the State of Texas. The metes and bounds description of such lands is as follows:
(1) First tract
(2) Second tract
Containing an area of 331 acres, more or less.
(Mar. 3, 1925, ch. 426, § 12, as added Pub. L. 86–777, § 2, Sept. 13, 1960, 74 Stat. 923; amended Pub. L. 104–273, § 6, Oct. 9, 1996, 110 Stat. 3318.)
§ 167k. Violations; penalties
(Mar. 3, 1925, ch. 426, § 13, as added Pub. L. 86–777, § 2, Sept. 13, 1960, 74 Stat. 923.)
§ 167l. Injunctions
Whenever in the judgment of the Secretary any person has engaged or is about to engage in any act or practice which constitutes or will constitute a violation of any provision of this chapter, or any regulation or order issued or any term of a license granted thereunder, any such act or practice may be enjoined by any district court having jurisdiction of such person, and proper proceedings to this end may be instituted under the direction of the Attorney General of the United States.
(Mar. 3, 1925, ch. 426, § 14, as added Pub. L. 86–777, § 2, Sept. 13, 1960, 74 Stat. 923.)
§ 167m. Information
(a) TransparencyThe Secretary, acting through the Bureau of Land Management, shall make available on the Internet information relating to the Federal Helium System that includes—
(1) continued publication of an open market and in-kind price;
(2) aggregated projections of excess refining capacity;
(3) ownership of helium held in the Federal Helium Reserve;
(4) the volume of helium delivered to persons through the Federal Helium Pipeline;
(5) pressure constraints of the Federal Helium Pipeline;
(6) an estimate of the projected date when 3,000,000,000 standard cubic feet of crude helium will remain in the Federal Helium Reserve and the final phase described in section 167d(c) of this title will begin;
(7) the amount of the fees charged under section 167c of this title;
(8) the scheduling of crude helium deliveries through the Federal Helium Pipeline; and
(9) other factors that will increase transparency.
(b) ReportingNot later than 90 days after October 2, 2013, to provide the market with appropriate and timely information affecting the helium resource, the Director of the Bureau of Land Management shall establish a timely and public reporting process to provide data that affects the helium industry, including—
(1) annual maintenance schedules and quarterly updates, that shall include—
(A) the date and duration of planned shutdowns of the Federal Helium Pipeline;
(B) the nature of work to be undertaken on the Federal Helium System, whether routine, extended, or extraordinary;
(C) the anticipated impact of the work on the helium supply;
(D) the efforts being made to minimize any impact on the supply chain; and
(E) any concerns regarding maintenance of the Federal Helium Pipeline, including the pressure of the pipeline or deviation from normal operation of the pipeline;
(2) for each unplanned outage, a description of—
(A) the beginning of the outage;
(B) the expected duration of the outage;
(C) the nature of the problem;
(D) the estimated impact on helium supply;
(E) a plan to correct problems, including 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; and
(G) updates on repair status and the anticipated online date;
(3) monthly summaries of meetings and communications between the Bureau of Land Management and the Cliffside Refiners Limited Partnership, including a list of participants and an indication of any actions taken as a result of the meetings or communications; and
(4) current predictions of the lifespan of the Federal Helium System, including how much longer the crude helium supply will be available based on current and forecasted demand and the projected maximum production capacity of the Federal Helium System for the following fiscal year.
(Mar. 3, 1925, ch. 426, § 15, as added Pub. L. 113–40, § 6(3), Oct. 2, 2013, 127 Stat. 541.)
§ 167n. Helium gas resource assessment
(a) In generalNot later than 2 years after October 2, 2013, the Secretary, acting through the Director of the United States Geological Survey, 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 coordination 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, scientific, industrial, commercial, and other uses of helium in the United States, including Federal 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 Energy and Natural Resources of the Senate and the Committee on Natural Resources of the House of Representatives a report describing the results of the assessments required under this paragraph.
(b) Authorization of appropriations
(Mar. 3, 1925, ch. 426, § 16, as added Pub. L. 113–40, § 6(3), Oct. 2, 2013, 127 Stat. 542.)
§ 167o. Low-Btu gas separation and helium conservation
(a) Authorization
The Secretary of Energy shall support programs of research, development, commercial application, and conservation (including the programs described in subsection (b))—
(1) to expand the domestic production of low-Btu gas and helium resources;
(2) to separate and capture helium from natural gas streams; and
(3) to reduce the venting of helium and helium-bearing low-Btu gas during natural gas exploration and production.
(b) Programs
(1) Membrane technology research
(2) Helium separation technology
The Secretary of Energy shall support a research program to develop technologies for separating, gathering, and processing helium in low concentrations that occur naturally in geological reservoirs or formations, including—
(A) low-Btu gas production streams; and
(B) technologies that minimize the atmospheric venting of helium gas during natural gas production.
(3) Industrial helium program
The Secretary of Energy, working through the Advanced Manufacturing Office of the Department of Energy, shall carry out a research program—
(A) to develop low-cost technologies and technology systems for recycling, reprocessing, and reusing helium for all medical, scientific, industrial, commercial, aerospace, and other uses of helium in the United States, including Federal uses; and
(B) to develop industrial gathering technologies to capture helium from other chemical processing, including ammonia processing.
(c) Authorization of appropriations
(Mar. 3, 1925, ch. 426, § 17, as added Pub. L. 113–40, § 6(3), Oct. 2, 2013, 127 Stat. 542.)
§ 167p. Helium-3 separation
(a) Interagency cooperation
The Secretary shall cooperate with the Secretary of Energy, or a designee, on any assessment or research relating to the extraction and refining of the isotope helium-3 from crude helium and other potential sources, including—
(1) gas analysis; and
(2) infrastructure studies.
(b) Feasibility study
The Secretary, in consultation with the Secretary of Energy, or a designee, may carry out a study to assess the feasibility of—
(1) establishing a facility to separate the isotope helium-3 from crude helium; and
(2) exploring other potential sources of the isotope helium-3.
(c) Report
(d) Authorization of appropriations
(Mar. 3, 1925, ch. 426, § 18, as added Pub. L. 113–40, § 6(3), Oct. 2, 2013, 127 Stat. 543.)
§ 167q. Federal agency helium acquisition strategy
In anticipation of the implementation of Phase D described in section 167d(d) of this title, and not later than 2 years after October 2, 2013, the Secretary (in consultation with the Secretary of Energy, the Secretary of Defense, the Director of the National Science Foundation, the Administrator of the National Aeronautics and Space Administration, the Director of the National Institutes of Health, and other agencies as appropriate) shall submit to Congress a report that provides for Federal users—
(1) an assessment of the consumption of, and projected demand for, crude and refined helium;
(2) a description of a 20-year Federal strategy for securing access to helium;
(3) a determination of a date prior to September 30, 2021, for the implementation of Phase D as described in section 167d(d) of this title that minimizes any potential supply disruptions for Federal users;
(4) an assessment of the effects of increases in the price of refined helium and methods and policies for mitigating any determined effects; and
(5) a description of a process for prioritization of uses that accounts for diminished availability of helium supplies that may occur over time.
(Mar. 3, 1925, ch. 426, § 19, as added Pub. L. 113–40, § 6(3), Oct. 2, 2013, 127 Stat. 544.)