29–010 

Calendar No. 152 

113TH CONGRESS REPORT " ! SENATE 1st Session 113–83 

HELIUM STEWARDSHIP 

JULY 29, 2013.—Ordered to be printed 

Mr. WYDEN, from the Committee on Energy and Natural 

Resources, submitted the following 

R E P O R T 

[To accompany S. 783] 

The Committee on Energy and Natural Resources, to which was 

referred the bill (S. 783) to amend the Helium Act to improve helium stewardship, and for other purposes, having considered the 

same, reports favorably thereon with an amendment and recommends that the bill, as amended, do pass. 

The amendment is as follows: 

Strike out all after the enacting clause and insert in lieu thereof 

the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Helium Stewardship Act of 2013’’. 

SEC. 2. DEFINITIONS. 

Section 2 of the Helium Act (50 U.S.C. 167) is amended to read as follows: 

‘‘SEC. 2. DEFINITIONS. 

‘‘In this Act: 

‘‘(1) CLIFFSIDE FIELD.—The term ‘Cliffside Field’ means the helium storage 

reservoir in which the Federal Helium Reserve is stored. 

‘‘(2) FEDERAL HELIUM PIPELINE.—The term ‘Federal Helium Pipeline’ means 

the federally owned pipeline system through which the Federal Helium Reserve 

may be transported. 

‘‘(3) FEDERAL HELIUM RESERVE.—The term ‘Federal Helium Reserve’ means 

helium reserves owned by the United States. 

‘‘(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.—The term ‘Federal user’ means a Federal agency or extramural holder of one or more Federal research grants using helium. 


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‘‘(6) LOW-BTU GAS.—The term ‘low-Btu gas’ means a fuel gas with a heating 

value of less than 250 Btu per standard cubic foot measured as the higher heating value resulting from the inclusion of noncombustible gases, including nitrogen, helium, argon, and carbon dioxide. 

‘‘(7) PERSON.—The term ‘person’ means any individual, corporation, partnership, firm, association, trust, estate, public or private institution, or State or political subdivision. 

‘‘(8) PRIORITY PIPELINE ACCESS.—The term ‘priority pipeline access’ means the 

first priority of delivery of crude helium under which the Secretary schedules 

and ensures the delivery of crude helium to a helium refinery through the Federal Helium System. 

‘‘(9) QUALIFIED BIDDER.— 

‘‘(A) IN GENERAL.—The term ‘qualified bidder’ means a person the Secretary determines is seeking to purchase helium for their own use, refining, 

or redelivery to users. 

‘‘(B) EXCLUSION.—The term ‘qualified bidder’ does not include a person 

who was previously determined to be a qualified bidder if the Secretary determines that the person did not meet the requirements of a qualified bidder under this Act. 

‘‘(10) QUALIFYING DOMESTIC HELIUM TRANSACTION.—The term ‘qualifying domestic helium transaction’ means any agreement entered into or renegotiated 

agreement during the preceding 1-year period in the United States for the purchase or sale of at least 20,000,000 standard cubic feet of crude or pure helium 

to which any holder of a contract with the Secretary for the acceptance, storage, 

delivery, or redelivery of crude helium from the Federal Helium System is a 

party. 

‘‘(11) REFINER.—The term ‘refiner’ means a person with the ability to take delivery of crude helium from the Federal Helium Pipeline and refine the crude 

helium into pure helium. 

‘‘(12) SECRETARY.—The term ‘Secretary’ means the Secretary of the Interior.’’. 

SEC. 3. AUTHORITY OF SECRETARY. 

Section 3 of the Helium Act (50 U.S.C. 167a) is amended by adding at the end 

the following: 

‘‘(c) EXTRACTION OF HELIUM FROM DEPOSITS ON FEDERAL LAND.—All amounts received by the Secretary from the sale or disposition of helium on Federal land shall 

be credited to the Helium Production Fund established under section 6(e).’’. 

SEC. 4. STORAGE, WITHDRAWAL AND TRANSPORTATION. 

Section 5 of the Helium Act (50 U.S.C. 167c) is amended to read as follows: 

‘‘SEC. 5. STORAGE, WITHDRAWAL AND TRANSPORTATION. 

‘‘(a) IN GENERAL.—If the Secretary provides helium storage, withdrawal, or transportation services to any person, the Secretary shall impose a fee on the person that 

accurately reflects the economic value of those services. 

‘‘(b) MINIMUM FEES.—The fees charged under subsection (a) shall be not less than 

the amount required to reimburse the Secretary for the full costs of providing storage, withdrawal, or transportation services, including capital investments in upgrades and maintenance at the Federal Helium System. 

‘‘(c) SCHEDULE OF FEES.—Prior to sale or auction under subsection (a), (b), or (c) 

of section 6, the Secretary shall annually publish a standardized schedule of fees 

that the Secretary will charge under this section. 

‘‘(d) TREATMENT.—All fees received by the Secretary under this section shall be 

credited to the Helium Production Fund established under section 6(e). 

‘‘(e) STORAGE AND DELIVERY.—In accordance with this section, the Secretary 

shall— 

‘‘(1) allow any person or qualified bidder to which crude helium is sold or auctioned under section 6 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 

6(b)(2); 

‘‘(B) ensures timely delivery of helium acquired from the Secretary from 

the Federal Helium Reserve by means other than an auction under section 

6(b)(2) after the date of enactment of the Helium Stewardship Act of 2013, 

including nonallocated sales; and 

‘‘(C) provides priority access to the Federal Helium Pipeline for in-kind 

sales for Federal users. 


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‘‘(f) NEW REFINING CAPACITY.—The Secretary shall consider any applications for 

access to the Federal Helium Pipeline in a manner consistent with the schedule for 

phasing out commercial sales and disposition of assets pursuant to section 6.’’. 

SEC. 5. SALE OF CRUDE HELIUM. 

Section 6 of the Helium Act (50 U.S.C. 167d) is amended to read as follows: 

‘‘SEC. 6. SALE OF CRUDE HELIUM. 

‘‘(a) PHASE A: ALLOCATION TRANSITION.— 

‘‘(1) IN GENERAL.—The Secretary shall offer crude helium for sale in such 

quantities, at such times, at not less than the minimum price established under 

subsection (b)(7), and under such terms and conditions as the Secretary determines necessary to carry out this subsection with minimum market disruption. 

‘‘(2) FEDERAL PURCHASES.—Federal users may purchase refined helium with 

priority pipeline access under this subsection from persons who have entered 

into enforceable contracts to purchase an equivalent quantity of crude helium 

at the in-kind price from the Secretary. 

‘‘(3) DURATION.—This subsection applies during— 

‘‘(A) the period beginning on the date of enactment of the Helium Stewardship Act of 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 GENERAL.—The 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 QUANTITIES.—For 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; and 

‘‘(B) for each subsequent fiscal year, a percentage of the total volume of 

crude helium that is 10 percentage points greater than the percentage 

available for the previous fiscal year, but not to exceed 100 percent. 

‘‘(3) FEDERAL PURCHASES.—Federal users may purchase refined helium with 

priority pipeline access under this subsection from persons who have entered 

into enforceable contracts to purchase an equivalent quantity of crude helium 

at the in-kind price from the Secretary. 

‘‘(4) DURATION.—This 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 5 and this section) is 3,000,000,000 standard cubic feet. 

‘‘(5) SAFETY VALVE.—The 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.—The Secretary shall conduct each auction using a 

method that maximizes revenue to the Federal Government. 

‘‘(7) PRICES.—The Secretary shall annually establish, as applicable, sale and 

minimum auction prices under subsection (a)(1) and paragraphs (1) and (2) 

using, if applicable and in the following order of priority: 


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‘‘(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 GENERAL.—The 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) CONDITION.—As a condition of sale or auction to a refiner under subsection (a)(1) and paragraphs (1) and (2), effective beginning 90 days after 

the date of enactment of the Helium Stewardship Act of 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 the date of enactment of the Helium Stewardship Act of 2013, including nonallocated sales. 

‘‘(9) USE OF INFORMATION.—The Secretary may use the information collected 

under this Act— 

‘‘(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.—The Secretary shall adopt such administrative policies and procedures as the Secretary considers necessary and 

reasonable to ensure the confidentiality of information submitted pursuant to 

this Act. 

‘‘(c) PHASE C: CONTINUED ACCESS FOR FEDERAL USERS.— 

‘‘(1) IN GENERAL.—The Secretary shall offer crude helium for sale to Federal 

users in such quantities, at such times, at such prices required to reimburse the 

Secretary for the full costs of the sales, and under such terms and conditions 

as the Secretary determines necessary to carry out this subsection. 

‘‘(2) FEDERAL PURCHASES.—Federal users may purchase refined helium with 

priority pipeline access under this subsection from persons who have entered 

into enforceable contracts to purchase an equivalent quantity of crude helium 

at the in-kind price from the Secretary. 

‘‘(3) EFFECTIVE DATE.—This subsection applies beginning on the day after the 

date described in subsection (b)(4)(B). 

‘‘(d) PHASE D: DISPOSAL OF ASSETS.— 

‘‘(1) IN GENERAL.—Not earlier than 2 years after the date of commencement 

of Phase C described in subsection (c) and not later than January 1, 2023, the 

Secretary shall designate as excess property and dispose of all facilities, equipment, and other real and personal property, and all interests in the same, held 

by the United States in the Federal Helium System. 

‘‘(2) APPLICABLE LAW.—The disposal of the property described in paragraph 

(1) shall be in accordance with subtitle I of title 40, United States Code. 

‘‘(3) PROCEEDS.—All proceeds accruing to the United States by reason of the 

sale or other disposal of the property described in paragraph (1) shall be treated 

as funds received under this Act for purposes of subsection (e). 

‘‘(4) COSTS.—All costs associated with the sale and disposal (including costs 

associated with termination of personnel) and with the cessation of activities 

under this subsection shall be paid from amounts available in the Helium Production Fund established under subsection (e). 

‘‘(e) HELIUM PRODUCTION FUND.— 

‘‘(1) IN GENERAL.—All amounts received under this Act, including amounts 

from the sale or auction of crude helium, shall be credited to the Helium ProVerDate Mar 15 2010 06:46 Aug 01, 2013 Jkt 029010 PO 00000 Frm 00004 Fmt 6659 Sfmt 6621 E:\HR\OC\SR083.XXX SR083

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duction 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 Act (other than sections 16, 17, and 18), 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, 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.—Amounts in the Helium Production Fund in excess of 

amounts the Secretary determines to be necessary to carry out paragraph (1) 

shall be paid to the general fund of the Treasury and used to reduce the annual 

Federal budget deficit. 

‘‘(3) RETIREMENT OF PUBLIC DEBT.—Out of amounts paid to the general fund 

of the Treasury under paragraph (2), the Secretary of the Treasury shall use 

$51,000,000 to retire public debt. 

‘‘(f) MINIMUM QUANTITY.—The 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.’’. 

SEC. 6. INFORMATION, ASSESSMENT, RESEARCH, AND STRATEGY. 

The Helium Act (50 U.S.C. 167 et seq.) is amended— 

(1) by repealing section 15 (50 U.S.C. 167m); 

(2) by redesignating section 17 (50 U.S.C. 167 note) as section 20; and 

(3) by inserting after section 14 (50 U.S.C. 167l) the following: 

‘‘SEC. 15. INFORMATION. 

‘‘(a) TRANSPARENCY.—The 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 6(c) will begin; 

‘‘(7) the amount of the fees charged under section 5; 

‘‘(8) the scheduling of crude helium deliveries through the Federal Helium 

Pipeline; and 

‘‘(9) other factors that will increase transparency. 

‘‘(b) REPORTING.—Not later than 90 days after the date of enactment of the Helium Stewardship Act of 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— 


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‘‘(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. 

‘‘SEC. 16. HELIUM GAS RESOURCE ASSESSMENT. 

‘‘(a) IN GENERAL.—Not later than 2 years after the date of enactment of the Helium Stewardship Act of 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.—There is authorized to be appropriated 

to carry out this section $1,000,000. 

‘‘SEC. 17. 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.—The Secretary of Energy, in consultation with other appropriate agencies, shall support a civilian research program to develop advanced membrane technology that is used in the separation 

of low-Btu gases, including technologies that remove helium and other constituent gases that lower the Btu content of natural gas. 

‘‘(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 


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‘‘(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.—There is authorized to be appropriated 

to carry out this section $3,000,000. 

‘‘SEC. 18. 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.—Not later than 1 year after the date of enactment of the Helium 

Stewardship Act of 2013, the Secretary shall 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 that contains a description of the results of 

the assessments conducted under this section. 

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated 

to carry out this section $1,000,000. 

‘‘SEC. 19. FEDERAL AGENCY HELIUM ACQUISITION STRATEGY. 

‘‘In anticipation of the implementation of Phase D described in section 6(d), and 

not later than 2 years after the date of enactment of the Helium Stewardship Act 

of 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, and the Director of the National Institutes of Health) 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 January 1, 2023, for the implementation of Phase D as described in section 6(d) 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.’’. 

SEC. 7. CONFORMING AMENDMENTS. 

(a) Section 4 of the Helium Act (50 U.S.C. 167b) is amended by striking ‘‘section 

6(f)’’ each place it appears in subsections (c)(3), (c)(4), and (d)(2) and inserting ‘‘section 6(d)’’. 

(b) Section 8 of the Helium Act (50 U.S.C. 167f) is repealed. 

SEC. 8. EXISTING AGREEMENTS. 

This Act and the amendments made by this Act shall not affect or diminish the 

rights and obligations of the Secretary of the Interior and private parties under 

agreements in existence on the date of enactment of this Act, except to the extent 

that the agreements are renewed or extended after that date. 

SEC. 9. REGULATIONS. 

The Secretary of the Interior shall promulgate such regulations as are necessary 

to carry out this Act and the amendments made by this Act, including regulations 

necessary to prevent unfair acts and practices. 


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SEC. 10. AMENDMENTS TO OTHER LAWS. 

(a) SECURE RURAL SCHOOLS AND COMMUNITY SELF DETERMINATION PROGRAM.— 

(1) SECURE PAYMENTS FOR STATES AND COUNTIES CONTAINING FEDERAL

LAND.— 

(A) AVAILABILITY OF PAYMENTS.—Section 101 of the Secure Rural Schools 

and Community Self-Determination Act of 2000 (16 U.S.C. 7111) is amended by striking ‘‘2012’’ each place it appears and inserting ‘‘2013’’. 

(B) ELECTIONS.—Section 102(b) of the Secure Rural Schools and Community Self-Determination Act of 2000 (16 U.S.C. 7112(b)) is amended— 

(i) in paragraph (1)(A), by striking ‘‘2012’’ and inserting ‘‘2013’’; and 

(ii) in paragraph (2)(B), by striking ‘‘2012’’ each place it appears and 

inserting ‘‘2013’’. 

(C) DISTRIBUTION OF PAYMENTS TO ELIGIBLE COUNTIES IN CALIFORNIA.— 

Section 103(d)(2) of the Secure Rural Schools and Community Self-Determination Act of 2000 (16 U.S.C. 7113(d)(2)) is amended by striking ‘‘and 

2012’’ and inserting ‘‘through 2013’’. 

(2) CONTINUATION OF AUTHORITY TO CONDUCT SPECIAL PROJECTS ON FEDERAL

LAND.—Title II of the Secure Rural Schools and Community Self-Determination 

Act of 2000 is amended— 

(A) in section 203(a)(1) (16 U.S.C. 7123(a)(1)), by striking ‘‘2012’’ and inserting ‘‘2013’’; 

(B) in section 204(e)(3)(B)(iii) (16 U.S.C. 7124(e)(3)(B)(iii)), by striking 

‘‘2012’’ and inserting ‘‘2013’’; 

(C) in section 205(a)(4) (16 U.S.C. 7125(a)(4)), by striking ‘‘2011’’ each 

place it appears and inserting ‘‘2012’’; 

(D) in section 207(a) (16 U.S.C. 7127(a)), by striking ‘‘2012’’ and inserting 

‘‘2013’’; and 

(E) in section 208 (16 U.S.C. 7128)— 

(i) in subsection (a), by striking ‘‘2012’’ and inserting ‘‘2013’’; and 

(ii) in subsection (b), by striking ‘‘2013’’ and inserting ‘‘2014’’. 

(3) CONTINUATION OF AUTHORITY TO RESERVE AND USE COUNTY FUNDS.—Section 304 of the Secure Rural Schools and Community Self-Determination Act of 

2000 (16 U.S.C. 7144) is amended— 

(A) in subsection (a), by striking ‘‘2012’’ and inserting ‘‘2013’’ ; and 

(B) in subsection (b), by striking ‘‘2013’’ and inserting ‘‘2014’’. 

(4) AUTHORIZATION OF APPROPRIATIONS.—Section 402 of the Secure Rural 

Schools and Community Self-Determination Act of 2000 (16 U.S.C. 7152) is 

amended by striking ‘‘2012’’ and inserting ‘‘2013’’. 

(b) ABANDONED WELL REMEDIATION.—Section 349 of the Energy Policy Act of 

2005 (42 U.S.C. 15907) is amended by adding at the end the following: 

‘‘(i) FEDERALLY DRILLED WELLS.—Out of any amounts in the Treasury not otherwise appropriated, $50,000,000 shall be made available to the Secretary, without 

further appropriation and to remain available until expended, to remediate, reclaim, 

and close abandoned oil and gas wells on current or former National Petroleum Reserve land.’’. 

(c) NATIONAL PARKS MAINTENANCE BACKLOG.—Section 814(g) of the Omnibus 

Parks and Public Lands Management Act of 1996 (16 U.S.C. 1f) is amended by adding at the end the following: 

‘‘(4) AVAILABLE FUNDS.—Out of any amounts in the Treasury not otherwise 

appropriated, $50,000,000 shall be made available to the Secretary of the Interior, without further appropriation and to remain available until expended, to 

pay the Federal funding share of challenge cost-share agreements for deferred 

maintenance projects and to correct deficiencies in National Park Service infrastructure. 

‘‘(5) COST-SHARE REQUIREMENT.—Not less than 50 percent of the total cost of 

project for funds made available under paragraph (4) to pay the Federal funding 

share shall be derived from non-Federal sources, including in-kind contribution 

of goods and services fairly valued.’’. 

(d) ABANDONED MINE RECLAMATION FUND.—Section 411(h) of the Surface Mining 

Control and Reclamation Act of 1977 (30 U.S.C. 1240a(h)) is amended by adding at 

the end the following: 

‘‘(6) SUPPLEMENTAL FUNDING.— 

‘‘(A) WAIVER OF LIMITATION.—Notwithstanding paragraph (5), the limitation on the total annual payments to a certified State or Indian tribe under 

this subsection shall not apply for fiscal year 2014. 

‘‘(B) LIMITATION ON WAIVER.—Notwithstanding subparagraph (A), the 

total annual payment to a certified State or Indian tribe under this subsection for fiscal year 2014 shall not be more than $75,000,000. 


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‘‘(C) INSUFFICIENT AMOUNTS.—If the total annual payment to a certified 

State or Indian tribe under paragraphs (1) and (2) is limited by subparagraph (B), the Secretary shall— 

‘‘(i) give priority to making payments under paragraph (2); and 

‘‘(ii) use any remaining funds to make payments under paragraph 

(1).’’. 

(e) SODA ASH ROYALTIES.—Notwithstanding section 24 of the Mineral Leasing Act 

(30 U.S.C. 262) and the terms of any lease under that Act, the royalty rate on the 

quantity of gross value of the output of sodium compounds and related products at 

the point of shipment to market from Federal land in the 2-year period beginning 

on the date of enactment of this Act shall be 4 percent. 

(f) AUTHORIZATION OFFSET.—Section 207(c) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17022(c)) is amended by inserting before the period at 

the end the following: ‘‘, except that the amount authorized to be appropriated to 

carry out this section not appropriated as of the date of enactment of the Helium 

Stewardship Act of 2013 shall be reduced by $5,000,000’’. 

PURPOSE OF THE MEASURE

The purpose of S. 783 is to amend the Helium Act to improve helium stewardship, and for other purposes. 

BACKGROUND AND NEED

Helium is a naturally occurring resource that is typically extracted from natural gas and subsequently refined to higher purity 

grades for applications such as magnetic resonance imaging, semiconductor manufacturing, military aviation, research and development, pressurization and purging systems, leak detection, welding, 

and breathing mixtures. 

The Federal Government has played a significant role in the production, refining, and storage of helium for nearly a century. Recognizing the military importance of helium for use in lighter-thanair airships during World War I, Congress reserved to the Federal 

Government the ownership and the right to extract helium from all 

natural gas produced from the public lands leased under the Mineral Leasing Act in 1920. 30 U.S.C. 181. In addition, in 1925, Congress authorized the Secretary of the Interior to acquire heliumbearing lands, explore for, procure, and conserve helium-bearing 

gas, and to construct and operate facilities for the production, storage, and purification of helium through the Department of the Interior’s Bureau of Mines. Act of March 3, 1935, chapter 426, 43 Stat. 

1110. Pursuant to the Helium Act of 1925, the Bureau of Mines 

built the Cliffside Gasfield Facility near Amarillo, Texas, to 

produce helium from the Bush Dome Reservoir. 

Following World War II, helium gained new strategic importance 

in rocket development, space exploration, and scientific research. In 

1960, Congress amended the Helium Act of 1925 to encourage private natural gas producers to extract crude helium and sell it to 

the Federal Government for storage in the Bush Dome Reservoir. 

Public Law 8–77, 74 Stat 918. The 1960 amendments to the Helium Act also authorized the Bureau of Mines to borrow funds from 

the Treasury to buy helium for storage in the Federal Helium Reserve (Reserve), which the Bureau established in the Bush Dome 

Reservoir. The 1960 amendments also required the Bureau to 

repay the loan by 1985. That deadline was later extended to 1995. 

The Bureau of Mines subsequently borrowed about $252 million 

to buy helium for storage. In 1973, in the face of a large helium 

stockpile and flat-lined consumption, the United States GovernVerDate Mar 15 2010 06:46 Aug 01, 2013 Jkt 029010 PO 00000 Frm 00009 Fmt 6659 Sfmt 6602 E:\HR\OC\SR083.XXX SR083

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ment ceased acquiring additional crude helium. For the next 20 

years, annual consumption was matched by volumes of helium 

placed into storage at the Reserve, and volumes therein remained 

largely unchanged. Sales of helium were not sufficient to repay the 

debt. By 1991, the program’s debt had ballooned to $1.3 billion, 

over $1 billion of which consisted of interest on the $252 million 

borrowed. 

In 1996, Congress enacted the Helium Privatization Act, Public 

Law 104–273, to address outstanding issues with the Reserve. The 

Privatization Act required the Bureau of Land Management (BLM), 

which assumed responsibility for the program after the Bureau of 

Mines was abolished in 1996, to sell off the crude helium remaining in the Reserve in order to repay the U.S. Treasury the $1.3 billion debt, and then close the Reserve to commercial sales. The debt 

will be repaid during fiscal year 2013 and, as a consequence, the 

helium program will terminate sales of helium on October, 7, 2013, 

absent Congressional action, according to testimony and correspondence from the Department of the Interior to the Committee. 

The helium market has undergone several important changes 

since the Privatization Act was enacted. First, the majority of the 

Federal helium supply has been sold off. At current production 

rates, there is roughly five to six years of commercial supply remaining. Eventually, the helium supplies in the Reserve will become too depleted to be used, but for now it provides a critical 

source of supply during a global shortage. Second, while additional 

investments have been made in non-Federal supplies in the U.S. 

and overseas, current market conditions indicate that demand is 

outstripping supply and leading to a worldwide shortage of helium. 

Foreign demand for helium has virtually doubled since 1996, and 

as of 2007, consumption of helium outside the United States surpassed domestic consumption. 

The Reserve continues to provide a ready supply of helium for 

defense, aerospace, and scientific research. The Reserve is connected by a Federal pipeline to private helium refiners spread 

throughout northern Texas, the Oklahoma panhandle, and southern Kansas. Today, the Reserve currently supplies 40 percent of 

the domestic and 30 percent of global helium demand. 

If Congress does not extend operation of the Reserve, there will 

be significant disruption in many sectors of the economy, including 

everything from medical imaging equipment to semiconductor manufacturing. Additionally, and because BLM sales make up such a 

significant portion of global supplies, non-BLM sales are indexed to 

BLM prices. Therefore, significant volatility in BLM prices would 

be quickly passed through to the rest of the market. 

LEGISLATIVE HISTORY

S. 783 was introduced on April 23, 2013, by Senator Wyden for 

himself and Senator Murkowski. Senators Blumenthal, Casey, 

Crapo, Flake, Gillibrand, Heinrich, King, Merkley, Risch, Schumer, 

and Whitehouse are cosponsors. 

The Committee on Energy and Natural Resources held a hearing 

on S. 783 on May 7, 2013. At its business meeting on June 18, 

2013, the Committee ordered S. 783 to be favorably reported with 

an amendment in the nature of a substitute. 


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Similar legislation (H.R. 527) was also introduced in the House 

of Representatives by Representative Hastings on February 6, 

2013. The House Energy and Commerce Committee reported H.R. 

527 on April 18, 2013 (H. Rept. 113–42), and the House of Representatives passed the bill on April 26, 2013. 

Similar legislation (S. 2374) was also introduced by Senator 

Bingaman on April 26, 2012, during the 112th Congress. S. 2374 

was cosponsored by 22 Senators. The Committee held a hearing on 

the bill on May 10, 2012. S. Hrg. 112–540. 

COMMITTEE RECOMMENDATION

The Senate Committee on Energy and Natural Resources, in 

open business session on June 18, 2013, by voice vote of a quorum 

present, recommends that the Senate pass S. 783, if amended as 

described herein. 

COMMITTEE AMENDMENT

During its consideration of the bill, the Committee adopted an 

amendment in the nature of a substitute. The amendment: (1) 

clarifies that all fees imposed by the Secretary should, at minimum, reimburse the Secretary for the full cost of services provided, including any capital investments; (2) ensures timely delivery of helium acquired from the Secretary by persons in an auction 

or acquired by means other than an auction, and provides priority 

pipeline access for in-kind sales; (3) directs the Secretary to consider any new application for access to the Federal Helium Pipeline; (4) allows the extension of helium sales under Phase A (section 6(a)) if helium sales under Phase B (section 6(b)) are delayed 

or suspended; (5) requires that all capital investments be determined by the Secretary to be both necessary and cost effective; (6) 

requires that any amounts in the Helium Production Fund in excess of the amounts necessary to carry out the revised Federal Helium Program be returned to the Treasury with $51,000,000 directed to debt reduction and any additional excess funds be used 

to reduce the Federal budget deficit; (7) adds a new Phase D (section 6(d)) that directs the Secretary to dispose of all Federal Helium Reserve assets by January 1, 2023 and at a time informed by 

the Federal Helium Strategy in section 19; (8) broadens the helium-3 study to include options beyond utilization of the Federal 

Helium Reserve; (9) adds the NASA Administrator to the Federal 

Helium Strategy in section 19; (10) adds authorization amounts to 

section 16, 17, and 18; (11) further defines the scope of protections 

for existing contracts and agreements by deleting the words ‘‘in any 

manner’’ from section 8; and (12) adds a new section 10, which: (a) 

provides a one-year extension of payments under the Secure Rural 

Schools and Community Determination Act at a 5 percent reduction from the level of payments made in 2013; (b) provides 

$50,000,000 to remediate abandoned oil and gas wells on current 

or former National Petroleum Reserve lands; (c) adds $50,000,000 

in direct funding to address deferred National Parks Service maintenance with a dollar-for-dollar cost share with non-Federal 

sources; (d) provides $60,000,000 to restore payments to states and 

Indian tribes certified under the Abandoned Mine Lands program 


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for fiscal year 2014; and (e) reduces to 4 percent, for two years, the 

royalty rate for soda ash production on Federal lands. 

SECTION-BY-SECTION SUMMARY

Section 1 provides a short title. 

Section 2 amends section 2 of the Helium Act to define the terms 

used in the Act as amended. 

Section 3 amends section 3 of the Helium Act to ensure that all 

amounts received by the Secretary from the sale or disposition of 

helium on Federal lands will be credited to the Helium Production 

Fund. 

Section 4 amends section 5 of the Helium Act to direct the Secretary to impose storage, withdrawal, and transportation fees that 

reflect the economic value of those services; annually publish a 

schedule of fees; allow any person or qualified bidder to store helium in the Federal Helium Reserve; set a schedule for the transportation and delivery of helium; and consider any new applications for access to the Federal Helium Pipeline. The purpose of requiring the BLM to establish a new schedule for use of the helium 

pipeline is to ensure that there is adequate access for helium sales 

conducted under the new procedures required by the amendments 

to the Helium Act. Nothing in the amendment is intended to in any 

way vitiate existing storage contracts or to strand private helium 

paid for and currently held in storage in the Federal Helium Reserve. 

Section 5 amends section 6 of the Helium Act to establish a fourphase system for sale and auction of crude helium from, and eventual closure of, the Reserve with minimum sales prices, maximum 

sales volumes, transparency requirements, information collection, 

priority pipeline access and in-kind prices for Federal users, protection of confidential information, and other relevant terms and conditions in all phases. The purpose of the four-phase program is to 

ensure the near-term stability of helium supplies and the establishment of market-based pricing, while phasing out the Federal Government’s role in the helium supply chain. 

Subsection (a) establishes Phase A. During Phase A, BLM would 

continue to operate the Federal Helium System with minimal 

changes for one year (through September 30, 2014) in order to give 

BLM time to put new rules in place for conducting auctions, setting 

prices, and ensuring continuity of supply. 

Subsection (b) establishes Phase B. During Phase B, BLM is required to auction off increasing quantities in order to ensure that 

BLM helium prices reflect market value and that taxpayers receive 

a fair return. Beginning October 1, 2014, subsection (b) requires 

BLM to begin to auction off increasing amounts of helium—beginning at 10 percent a year—and to use price discovery associated 

with those auctions to help set the price for all BLM helium sales. 

The volume being auctioned increases steadily by an additional 10 

percentage points annually. The bill provides a ‘‘safety valve’’ to 

allow for adjustment by the Secretary of the amounts auctioned or 

allocated if these proposed auction amounts are too high or too low 

to achieve the twin goals of stability of supply and fair return to 

taxpayers. Phase B ends when 3 billion standard cubic feet of helium remain in the Federal Helium Reserve. 


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Beginning in Phase A and continuing through Phase B, the bill 

also provides that the helium refiners connected to the Federal Helium Reserve make excess refining capacity available to others at 

commercially reasonable rates as a condition of their continued 

participation in helium allocations and auctions. The intent of this 

requirement is to maximize participation in helium sales in Phases 

A and B. Without a way to have helium refined, there would be 

less or no interest in purchasing helium by parties other than the 

existing refiners. By making capacity available that is in excess of 

refiners’ operational needs and at rates that are commercially reasonable in exchange for continued direct access to the un-auctioned 

Federal helium volumes, interest in purchasing helium should increase and price discovery should improve. In 2010, the National 

Academy of Sciences reported that U.S. refining capacity connected 

to the BLM system was some 4 billion cubic feet of refined liquid 

helium with refining usage at 82 percent. 

Subsection (c) establishes Phase C. In Phase C, only Federal 

users would have access to the remaining helium. Because remaining Federal helium supplies in the Reserve are nonetheless limited, 

Phase C is not a permanent solution for Federal supplies and the 

bill requires development of a long-term Federal helium procurement strategy in anticipation of an end to the In-Kind program and 

commencement of Phase D. 

Subsection (d) establishes Phase D. In Phase D, the Federal Government ceases to supply helium and disposes of its helium supply 

assets no later than January 1, 2023. 

Subsection (e)(1) requires that all amounts received under the 

Helium Act from the sale or auction of crude helium to be credited 

to the Helium Production Fund for purposes necessary and cost effective to carry out the Helium Act. 

Subsection (e)(2) requires amounts in the Helium Production 

Fund in excess of amounts necessary to carry out the Helium Act 

to be paid to the general fund of the Treasury and used to reduce 

the annual Federal budget deficit. 

Subsection (e)(3) requires the Secretary of the Treasury to use 

$51 million of the amounts paid to the general fund under subsection (e)(2) to retire public debt. 

Subsection (f) requires the Secretary of the Interior to offer for 

sale or auction during each fiscal year under subsections (a), (b), 

and (c) an amount of crude helium that is the lesser of the quantity 

of crude helium for sale during fiscal year 2012 or the maximum 

total production capacity of the Federal Helium System. 

Section 6 adds five new sections to the Helium Privatization Act 

of 1996 related to increasing the transparency of BLM’s helium 

program and the helium market, as well as developing alternative 

supplies of helium within the U.S. and developing a long-term 

strategy for Federal procurement of helium. 

New section 15 of the Helium Act would increase the transparency of the Federal Helium Reserve by requiring the Secretary 

to make available on the Internet information including open market and in-kind prices, aggregated projections of excess refining capacity, helium ownership, crude helium delivery volumes and 

schedule, pressure constraints, projected date of Phase C commencement, and associated fees. 


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New section 16 of the Helium Act would authorize the U.S. Geological Survey to complete a national helium gas assessment that 

quantifies crude helium resources and makes available seismic and 

geophysical log data for the Bush Dome Reservoir. 

New section 17 of the Helium Act would authorize the Secretary 

of Energy to support research, development, commercial application, and conservation to expand domestic production of low-Btu 

gas and helium resources, investigate new separation and capture 

techniques, develop low-cost technologies for recycling, reprocessing, and reusing helium. 

New section 18 of the Helium Act would require the Secretary 

of the Interior to cooperate with the Secretary of Energy to complete assessments or research relating to the extraction and refining of the isotope helium-3 from crude helium as well as study the 

feasibility of establishing a facility to separate helium-3 from crude 

helium and report to Congress on such activities. 

New section 19 would require the Secretary, within 2 years of enactment, to evaluate the helium needs of Federal users and provide 

to Congress a report on the consumption of, and projected demand 

for, crude and refined helium, a description of a 20-year Federal 

strategy for securing access to helium, a determination of a date for 

the implementation of Phase D, an assessment of the effects of increases in price of refined helium and methods and policies for 

mitigating any determined effects, as well as a description of a 

process for prioritization of uses that accounts for diminished availability of helium supplies that may occur over time. 

Section 7 makes a series of technical amendments to section 4 of 

the Helium Act, and repeals section 8 of the Helium Act (relating 

to the elimination of the helium stockpile). 

Section 8 ensures the Helium Stewardship Act and the amendments made to the Helium Act by it will not affect or diminish the 

rights and obligations of existing agreements as of the date of enactment, except to the extent those agreements are renewed or extended after that date. 

Section 9 authorizes the Secretary of the Interior to promulgate 

regulations as necessary to carry out the Act. 

Section 10(a) authorizes a one-year extension of the Secure Rural 

Schools and Community Self-Determination Act at a 5 percent reduction from the level of payments made in 2013. 

Subsection (b) makes $50,000,000 out of any amount in the 

Treasury not otherwise appropriated available to address deferred 

National Parks Service maintenance and requires that those Federal funds be matched dollar-for-dollar with non-Federal sources. 

Subsection (c) makes $50,000,000 out of any amounts in the 

Treasury not otherwise appropriated available for the remediation 

of abandoned wells on Federal lands. 

Subsection (d) restores $60,000,000 in payments to states certified under the Abandoned Mine Lands program for fiscal year 

2014. 

Subsection (e) reduces the royalty rate for soda ash production on 

Federal lands to 4 percent the value of the soda ash for two years 

from the date of enactment of the Act. 

Subsection (f) amends section 207(c) of the Energy Independence 

and Security Act of 2007 by reducing the authorization of approVerDate Mar 15 2010 06:46 Aug 01, 2013 Jkt 029010 PO 00000 Frm 00014 Fmt 6659 Sfmt 6602 E:\HR\OC\SR083.XXX SR083

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priations for grants to encourage the production of advanced 

biofuels by $5,000,000. 

COST AND BUDGETARY CONSIDERATIONS

The following estimate of the costs of this measure has been provided by the Congressional Budget Office. 

S. 783—Helium Stewardship Act of 2013 

Summary: S. 783 would reauthorize, establish, or modify several 

programs related to the management of federal lands and natural 

resources and would increase certain payments to localities. Major 

provisions of the legislation 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; 

• Require BLM to sell federally owned assets, including 

rights to any remaining gases, at the Federal Helium Reserve 

by 2023; 

• Provide funds to certain counties by reauthorizing Secure 

Rural Schools payments through 2014; 

• Raise the cap on payments to states under the Abandoned 

Mine Lands program for 2014; 

• Appropriate funds to remediate, reclaim, and close abandoned oil and gas wells in Alaska; 

• Provide funds to the National Park Service (NPS) to improve infrastructure at parks; and 

• Reduce the royalty rate on soda ash and related mineral 

products from 6 percent to 4 percent for two years following 

the enactment of the bill. 

CBO estimates that enacting S. 783 would reduce net direct 

spending by $51 million over the 2014–2023 period; therefore, payas-you-go procedures apply. Enacting S. 783 would not affect revenues. 

The bill also would authorize appropriations to conduct assessments of helium supplies, establish research and development programs related to helium, and administer the Secure Rural Schools 

program. In addition, S. 783 would require BLM to comply with 

certain reporting requirements. Assuming appropriation of the authorized and necessary amounts, CBO estimates that conducting 

those activities would cost $6 million over the 2014–2018 period. 

Finally, the bill would reduce the amount authorized to be appropriated for an existing Department of Energy (DOE) grant program 

by $5 million. On net, CBO estimates that implementing those provisions would cost $1 million over the 2014–2018 period. 

S. 783 contains no intergovernmental or private-sector mandates 

as defined in the Unfunded Mandates Reform Act (UMRA). 

Estimated cost to the Federal Government: The estimated budgetary impact of S. 783 is shown in the following table. The costs 

of this legislation fall within budget functions 270 (energy), 300 

(natural resources and environment), and 800 (general government). 

Basis of estimate: For this estimate, CBO assumes that S. 783 

will be enacted near the end of 2013 and that the authorized and 

necessary amounts will be appropriated for each fiscal year. 


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Direct spending 

CBO estimates that enacting S. 783 would reduce net direct 

spending by $51 million over the 2014–2023 period. We estimate 

that the provisions regarding the Federal Helium Reserve would 

increase net offsetting receipts by $495 million and that the costs 

to carry out the mandatory spending provisions in the bill would 

total $444 million over that period. 


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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 

Helium Sales and Reserve Operations: 

Estimated Budget Authority .......................................... ¥150 ¥105 ¥80 ¥55 ¥30 ¥5 25 20 20 5 ¥420 ¥355 

Estimated Outlays ......................................................... ¥150 ¥105 ¥80 ¥55 ¥30 ¥5 25 20 20 5 ¥420 ¥355 

Helium Reserve Asset Sales: 

Estimated Budget Authority .......................................... 0 0 0 0 0 0 0 0 0 ¥140 0 ¥140 

Estimated Outlays ......................................................... 0 0 0 0 0 0 0 0 0 ¥140 0 ¥140 

Secure Rural Schools: 

Estimated Budget Authority .......................................... 270 0 0 0 0 0 0 0 0 0 270 270 Estimated Outlays ......................................................... 243 27 0 0 0 0 0 0 0 0 270 270 

Abandoned Mine Lands Payments: 

Estimated Budget Authority .......................................... 60 0 0 0 0 0 0 0 0 0 60 60 Estimated Outlays ......................................................... 24 18 12 6 0 0 0 0 0 0 60 60 

Abandoned Oil and Gas Wells: 

Budget Authority ............................................................ 50 0 0 0 0 0 0 0 0 0 50 50 Estimated Outlays ......................................................... 10 15 15 10 0 0 0 0 0 0 50 50 

National Park Service Infrastructure: 

Budget Authority ............................................................ 50 0 0 0 0 0 0 0 0 0 50 50 Estimated Outlays ......................................................... 11 13 12 8 6 0 0 0 0 0 50 50 

Soda Ash Royalty Reduction: 

Estimated Budget Authority .......................................... 7 7 0 0 0 0 0 0 0 0 14 14 Estimated Outlays ......................................................... 7 7 0 0 0 0 0 0 0 0 14 14 Total Changes, Direct Spending 

Estimated Budget Authority ................................. 287 ¥98 ¥80 ¥55 ¥30 ¥5 25 20 20 ¥135 24 ¥51 

Estimated Outlays ................................................ 145 ¥25 ¥41 ¥31 ¥24 ¥5 25 20 20 ¥135 24 ¥51 


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By fiscal year, in millions of dollars— 

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014–2018 2014–2023 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Resource Assessments and Reports: 

Estimated Authorization Level ...................................... 5 * * * * * * * * * 5 6 Estimated Outlays ......................................................... 5 * * * * * * * * * 5 6 

Secure Rural Schools Program: 

Estimated Authorization Level ...................................... * * 0 0 0 0 0 0 0 0 * * Estimated Outlays ......................................................... * * 0 0 0 0 0 0 0 0 * * 

Department of Energy Grant Program: 

Authorization Level ........................................................ ¥5 0 0 0 0 0 0 0 0 0 ¥5 ¥5 

Estimated Outlays ......................................................... ¥2 ¥1 ¥1 ¥1 0 0 0 0 0 0 ¥5 ¥5 

Total Changes, Discretionary Spending: 

Estimated Authorization Level ............................. * * * * * * * * * * 1 1 Estimated Outlays ................................................ 3 ¥1 ¥1 ¥1 * * * * * * 1 1 

Note: Components may not sum to totals because of rounding; * = less than $500,000. 


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Helium Sales and Reserve Operations. S. 783 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 to 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 bill 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 the legislation 

would lead to additional helium sales, increasing net offsetting receipts by $355 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, under the legislation, commercial sales would cease at the end of fiscal year 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 proceeds remaining from 

earlier sales 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 $70 million over 

that period to operate the reserve. 

Helium Reserve Asset Sales. S. 783 would require BLM to sell 

federally owned infrastructure at the Federal Helium Reserve as 

well as the pipeline system that connects several refineries to the 

reserve. The helium enrichment plant located at the reserve is privately owned and would not be sold under the bill. Based on information regarding the sale of similar gas storage facilities and pipelines, CBO estimates that enacting that provision would increase 

offsetting receipts from the sale of those assets by $15 million in 

2023. 

CBO expects that the reserve would still contain significant 

quantities of helium and small amounts of natural gas early in 

2023. Under the bill, the agency would be required to sell rights 

to those gases at that time. Based on information provided by 

BLM, CBO expects that the reserve would contain roughly 2 billion 

cubic feet of helium, which would probably be drawn from the reserve over a 10-year period, and nominal amounts of natural gas. 

CBO also expects that the average price of helium will be roughly 

$120 per thousand cubic feet (in 2023 dollars) over the 2023–2032 

period. The current price of crude helium, as set by BLM for commercial sales, is $84 per thousand cubic feet. Taking into account 

the risks and high costs associated with operating a depleting reserve, CBO estimates that proceeds from the sale of helium and 


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natural gas rights would increase offsetting receipts by $125 million in 2023. The amount paid for such rights could be significantly 

higher or lower than estimated depending on the costs to extract 

the helium with existing technologies and the market price for 

crude helium at the time those rights are sold. 

Secure Rural Schools. S. 783 would reauthorize payments to certain counties in 2014 under the Secure Rural Schools program. 

Under current law, those counties would receive a portion of the receipts raised from logging and other activities on Forest Service 

and BLM lands. CBO estimates that payments to those counties 

under current law would total $59 million in 2014. Under the bill, 

we estimate that payments to those counties would total $329 million over the 2014–2015 period. Thus, CBO estimates that enacting 

this provision would cost $270 million over that period. 

Abandoned Mine Lands Payments. The bill would increase the 

cap on payments to states that have completed all of their high-priority coal mine reclamation projects. Under current law, payments 

to those states are capped at $15 million a year. S. 783 would increase that cap to $75 million for 2014. Because Wyoming is the 

only state that would receive a payment exceeding $15 million 

under that program if payments were uncapped and because CBO 

expects that without the cap Wyoming would be eligible for a payment in excess of $75 million, we estimate that enacting this provision would cost $60 million over the 2014–2017 period. 

Abandoned Oil and Gas Wells. The legislation would provide $50 

million for the Secretary of the Interior to remediate, reclaim, and 

close abandoned oil and gas wells within the National Petroleum 

Reserve. The reserve consists of 23 million acres of federal land in 

northern Alaska and is currently open for commercial oil and gas 

leasing. CBO estimates that enacting this provision would cost $50 

million over the 2014–2017 period. 

National Park Service Infrastructure. S. 783 would provide $50 

million to NPS for maintenance and infrastructure projects within 

national parks. Under the bill, the agency would use those funds 

to pay a portion of the costs of projects carried out in coordination 

with nonfederal entities. CBO estimates that enacting this provision would cost $50 million over the 2014–2018 period. 

Soda Ash Royalty Reduction. The bill would require BLM to 

charge a 4 percent royalty on the value of soda ash and certain related minerals produced on federal lands for a two-year period following enactment of the legislation. That rate would be lower than 

the average rate expected under current law, which is about 6 percent over that period. That reduction in the rate would reduce offsetting receipts. 

Because CBO expects that royalty rates charged for the production of soda ash and related minerals on state and private lands 

will be higher than 4 percent, we also expect that, under the bill, 

the amount of such minerals produced on federal lands would be 

higher over the next two years than it would be under current law. 

However, CBO expects that the increase in production on federal 

lands would only partially reduce the loss of receipts from lowering 

the royalty rate. As a result, CBO estimates that enacting this provision would reduce net offsetting receipts from soda ash royalties 

by $14 million over the 2014–2015 period. 


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Spending subject to appropriation 

S. 783 would authorize the appropriation of $4 million for the 

Department of the Interior (DOI) to conduct assessments that 

would quantify the amount of helium resources in the United 

States and worldwide. The legislation also would authorize the appropriation of $1 million for DOE to develop a research and development program aimed at expanding the production of helium and 

certain other gases in the United States and conserving helium by 

developing methods to recycle and reuse it. Assuming appropriation of the authorized amounts, CBO estimates that conducting 

those activities would cost $5 million over the 2014–2018 period. 

The bill also would require BLM to comply with various reporting requirements related to helium production on federal lands. 

Based on information regarding the cost of similar activities, CBO 

estimates that complying with those requirements would have no 

significant impact on the federal budget over the 2014–2018 period 

and would cost roughly $1 million over the 2014–2023 period, assuming appropriation of the necessary amounts. 

In addition, the bill would authorize such sums as necessary to 

be appropriated to administer the Secure Rural Schools program. 

Based on information provided by the Forest Service, CBO expects 

that carrying out the program would require one employee to act 

as an administrator. We estimate that the costs of employing that 

individual would total about $300,000 over the 2014–2015 period. 

Finally, the bill would reduce the amount authorized to be appropriated for a DOE grant program that funds efforts to develop 

biofuels that reduce greenhouse gas emissions. Based on the historical spending pattern for that program, CBO estimates that implementing that provision would reduce discretionary spending by $5 

million over the 2014–2017 period, assuming appropriation actions 

consistent with the bill. 

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 S. 783 AS ORDERED REPORTED BY THE SENATE 

COMMITTEE ON ENERGY AND NATURAL RESOURCES ON JUNE 18, 2013 

By fiscal year, in millions of dollars 2013— 

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 ......................... 0 145 ¥25 ¥41 ¥31 ¥24 ¥5 25 20 20 ¥135 24 ¥51 

Intergovernmental and private-sector impact: S. 783 contains no 

intergovernmental or private-sector mandates as defined in UMRA. 

If enacted, state and local governments would receive about $330 

million over the five-year period for schools, mine reclamation, and 

other activities. The royalty reduction required by the bill would reduce federal payments to Arizona, California, Colorado, New Mexico, Utah, and Wyoming by about $14 million over fiscal years 2014 

and 2015. 


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Previous CBO estimates: On April 5, 2013, CBO transmitted a 

cost estimate for H.R. 527, the Responsible Helium Administration 

and Stewardship Act, as ordered reported by the House Committee 

on Natural Resources on March 20, 2013. CBO estimates that enacting H.R. 527 would increase net offsetting receipts by $340 million over the 2014–2023 period and increase discretionary spending 

by $11 million over that period. 

On July 11, 2013, CBO transmitted a cost estimate for H.R. 957, 

the American Soda Ash Competitiveness Act, as ordered reported 

by the House Committee on Natural Resources on May 15, 2013. 

That bill would reduce the royalty rate on soda ash and related 

minerals to 2 percent over a five-year period. 

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. 

REGULATORY IMPACT EVALUATION

In compliance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee makes the following evaluation 

of the regulatory impact which would be incurred in carrying out 

the Helium Stewardship Act of 2013. 

The bill is not a regulatory measure in the sense of imposing 

Government established standards or significant economic responsibilities on private individuals and businesses, but rather providing financial support to private industry that may be voluntarily 

applied for. 

No personal information would be collected in administering programs authorized under the bill. Therefore, there would be no impact on personal privacy. 

CONGRESSIONALLY DIRECTED SPENDING

S. 783, as reported, does not contain any congressionally directed 

spending items, limited tax benefits, or limited tariff benefits as defined in rule XLIV of the Standing Rules of the Senate. 

EXECUTIVE COMMUNICATIONS

The testimony provided by the Department of Interior on May 7, 

2013, at the Committee’s hearing on the bill, and a letter from Secretary Salazar to Chairman Wyden, dated March 1, 2013, relating 

to the Federal Helium Reserve and the helium debt, follow: 

STATEMENT OF TIMOTHY R. SPISAK, DEPUTY ASSISTANT DIRECTOR, MINERALS AND REALTY MANAGEMENT, DEPART- MENT OF THE INTERIOR, BUREAU OF LAND MANAGEMENT

Mr. Chairman and members of the Committee, thank 

you for the opportunity to testify on S. 783, the Helium 

Stewardship Act, which would make various changes to 

the Helium Privatization Act of 1996, including establishing a phased approach to drawing down the Federal 

Helium Reserve. As indicated by a National Academy of 

Sciences (NAS) report published in early 2010, the market 


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for helium has proven more volatile than expected over the 

last 15 years and the current law’s requirement that the 

Bureau of Land Management (BLM) offer for sale nearly 

all of the Reserve by 2015 could pose a threat to the availability of this resource for future U.S. research, scientific, 

technical, biomedical, and national security users of helium. The Department supports S. 783 and welcomes the 

opportunity to improve the management of this valuable 

commodity. 

BACKGROUND

Helium is a critical, non-renewable natural resource that 

plays an important role in research, medical imaging, 

space exploration, military reconnaissance, fiber optics 

manufacturing, welding and commercial diving. According 

to the NAS, helium’s best known property, being lighter 

than air, means ‘‘that every unit of helium that is produced and used today will eventually escape the Earth’s 

atmosphere and become one less unit available for use tomorrow.’’ 

The most common and economical way of capturing helium is by stripping it from natural gas during gas production. Geologic conditions in Texas, Oklahoma, and Kansas 

make the natural gas in these areas some of the most helium-rich in the United States, ranging from 0.5 to 1.5 percent of the gas extracted during production. The BLM 

plays a key role in the careful management and stewardship of the only significant long-term storage facility for 

crude helium in the world, known as the Federal Helium 

Reserve (Reserve), which supplies approximately 42 percent of domestic demand and approximately 35 percent of 

global demand for crude helium. 

THE FEDERAL HELIUM PROGRAM

Because of helium’s potential to lift military reconnaissance devices high above battlefields, the Federal government’s interest in the resource dates back to World War I. 

Recognizing this key military use for helium, the Mineral 

Leasing Act of 1920 reserved to the Federal government 

all helium produced on Federal lands—a reservation that 

remains in effect today. After World War I, recognition of 

the potential for helium recovery in the Texas Panhandle, 

Western Oklahoma, and Kansas area (collectively, the 

‘‘Hugoton’’ field) led to the development of the Federal helium program focused in that area. In 1929, the Bureau of 

Mines built the Amarillo Helium Plant and Cliffside Gasfield Facility near Amarillo, Texas, to produce heliumbearing natural gas from a naturally occurring geologic 

field known as the Bush Dome Reservoir. 

After World War II, Federal use of helium shifted toward applications related to space exploration, and in 1960 

Congress passed the Helium Amendment Act. This Act 

changed the program’s mandate from exclusive government production of helium to conservation of the resource. 

This was to be accomplished by executing contracts with 


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private natural gas producers to purchase extracted crude 

helium for the Federal government to store in the Bush 

Dome Reservoir. The Act granted the Bureau of Mines the 

authority to borrow funds from the U.S. Treasury to purchase the helium, with the expectation that the proceeds 

from future sales of helium would allow the BLM’s predecessor agency in this area, the Bureau of Mines, to repay 

the debt. This borrowing authority, established by Congress in lieu of a direct appropriation, required the Bureau 

of Mines to repay the loan by 1985. Subsequent legislation 

extended the deadline to 1995. 

Federal demands for helium rarely, if ever, met the expectations underlying the terms of the U.S. Treasury’s 

loan to the Bureau of Mines. When the 1995 deadline to 

pay off the debt arrived, the $252 million the Bureau had 

spent on privately-produced helium had increased to $1.3 

billion (principal and interest), and the Bureau of Mines 

appeared to have little prospect of repaying the debt. In 

his 1995 State of the Union address, President Bill Clinton 

stated that it was his Administration’s goal to privatize 

the Federal helium program. 

Congress subsequently passed the Helium Privatization 

Act of 1996 (HPA), which required the BLM (which assumed jurisdiction over the program after the termination 

of the Bureau of Mines) to make available for sale the vast 

majority of the stockpile of crude helium. The mandate directed the BLM to begin selling helium no later than 2005, 

in order to avoid market disruption. The BLM was to 

make a consistent amount of helium available every year 

at a price based on the amount of remaining helium debt 

and the amount of helium in storage. When Congress 

passed the HPA, there was approximately 30.5 billion 

standard cubic feet (scf) of helium in storage in the Bush 

Dome Reservoir. The HPA mandated the BLM to make 

available for sale all of the helium in excess of a 600 million scf permanent reserve. 

Additionally, the HPA required the BLM to cease all helium production, refining, and marketing activities to effectively privatize the refined helium market in the United 

States. Finally, the Act provided for the NAS to review the 

impacts of the 1996 Act. The NAS published its first study 

in 2000, and released a follow-up report in 2010. 

THE BLM’S HELIUM OPERATIONS

The BLM currently operates the Federal helium program with the primary goals of supplying helium to meet 

the Nation’s needs of Federal helium users and paying off 

the ‘‘helium debt.’’ To this end, the BLM has paid approximately $1.33 billion to the U.S. Treasury since 1995. This 

constitutes substantial progress toward eliminating the helium debt, which the HPA froze at approximately $1.37 billion. During FY 2012, the helium debt was reduced by an 

additional $180 million from Reserve sales, resulting in an 

outstanding balance of approximately $44 million at the 

end of the fiscal year. 


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According to the HPA, once the helium debt is retired, 

the Helium Production Fund (used to fund the BLM’s helium program operational expenses) would be dissolved 

and all future receipts would be deposited directly into the 

general fund of the U.S. Treasury. The BLM has generated 

enough revenue during this fiscal year through currently 

authorized helium sales to pay off the debt at the beginning of FY 2014. 

The BLM’s current helium program, with a workforce of 

51 full-time equivalents (FTE), operates not only the original storage and pipeline system, but also a crude helium 

enrichment unit, owned by private industry refiners, that 

facilitates transmission of helium to private helium operations on the BLM’s helium pipeline. The BLM is responsible for administering helium extracted from Federal resources, including management of fees and royalty contracts. These operations are not limited to the Hugoton gas 

field, but also occur in fields in Colorado, Wyoming, Utah, 

and any other state where producers extract helium from 

the Federal mineral estate. Additionally, the BLM is responsible for administering the sell-off of crude helium to 

private refiners. These sales make the most significant 

contributions toward paying off the helium debt. The agency also conducts domestic helium resource evaluation and 

reserve tracking to determine the extent of available helium resources. 

Another major part of the BLM’s helium program is the 

‘‘In-Kind’’ program, which supplies helium to Federal agencies (e.g., the Department of Energy and the National Aeronautics and Space Administration) for operations and/or 

research. Before the Helium Privatization Act, Congress 

required Federal agencies to purchase their refined helium 

supplies from the Bureau of Mines. Under the current InKind program, Federal agencies purchase all of their refined helium from private suppliers who, in turn, are required to purchase a commensurate amount of crude helium from the Reserve. In FY 2012, Federal agencies purchased $10.3 million of helium through the In-Kind program. 

THE NATIONAL ACADEMY OF SCIENCES REPORTS

In 2000, the NAS published its first analysis of the impacts of the HPA. Its general finding was that the Act 

would not have an impact on helium users. Additionally, 

the NAS report concluded that because the price-setting 

mechanism was based on the amount of the helium debt, 

and not the market for helium, the government’s significantly higher price would mean the helium refining industry would buy crude helium from the BLM only as a last 

resort for fulfilling private contracts. However, private helium refiners would still be required to purchase crude helium from the BLM under the In-Kind program. 

Over the course of the last decade, however, it has become apparent that assumptions underlying the 2000 NAS 

Report did not hold. First, the NAS’s assumption that 


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‘‘[t]he price of helium [would] probably remain stable 

through at least 2010’’ has proven faulty. The market for 

helium has seen significant fluctuations on both the demand side—which dropped significantly in 2008 after 

peaking the prior year—and on the supply side, which experienced a significant decline in private supplies between 

2006 and 2008. In the face of this volatility, prices for helium rose steadily over the course of the decade. By 2008, 

the market price for helium began to hover near the 

BLM’s price, leading to greater withdrawals from the Reserve than the 2000 NAS Report anticipated. 

Another market impact that the 2000 NAS Report did 

not address was international supply and demand for helium. According to the U.S. Department of Commerce, domestic consumption of helium decreased 2.7 percent per 

year from 2000–2007, while exports to the Pacific Rim 

grew 6.8 percent annually, exceeding the 5.1 percent 

growth rate in Europe. The international market also experienced supply issues because of refining capacity problems at plants in Qatar and Algeria, which would normally 

help supply both Europe and Asia. 

In early 2010, the NAS released a follow-up report on 

the BLM’s management of the Reserve. The report, entitled ‘‘Selling the Nation’s Helium Reserve,’’ focused on 

‘‘whether the interests of the United States have been well 

served by the [HPA] and, in particular, whether selling off 

the Reserve has had any adverse effect on U.S. scientific, 

technical, biomedical, and national security users of helium.’’ 

The 2010 NAS report, which identified some shortcomings of the 2000 report, takes a markedly different 

tone than the 2000 report. This change in approach reflects the volatility of the helium market over the last decade. The NAS report analyzes the relationship between 

supply and demand for helium on a domestic and international basis, as well as the BLM’s management of the 

Reserve under the HPA. The report concludes that the 

HPA mandated sell-off is negatively impacting the needs of 

both current and future users of helium in the United 

States. This conclusion is the driving force behind a series 

of recommendations in the report directed at the BLM and 

the United States Congress. 

S. 783, HELIUM STEWARDSHIP ACT

S. 783 addresses many of the concerns that the 2010 

NAS report identified regarding the Federal government’s 

involvement in the helium market. Most importantly, the 

bill would create a set of phased authorities for the BLM’s 

management of the Reserve, establishing a ‘‘glide path’’ 

from the sales mandated under the HPA to a scenario 

where 3 billion scf of helium would be reserved solely for 

Federal users, grant holders, or contractors. This would accomplish the original goals of the HPA—the exit of the 

Federal government from the broader helium market and 

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term supply interests for the Federal government. The Department supports S. 783 and the approach to gradually 

scale back the Federal helium program. The Administration would like to continue working with the Committee 

and sponsors on details of a technical nature. 

The bill stipulates three phases to the drawdown: ‘‘Phase 

A: Allocation Transition;’’ ‘‘Phase B: Auction Implementation:’’ and ‘‘Phase C: Continued Access for Federal Users.’’ 

Phase A would begin on the bill’s date of enactment and 

end on September 30, 2014. During Phase A, the BLM 

would be required to sell crude helium in a manner that 

would result in minimum market disruption. The Department believes that this time period is reasonable to prepare the market for broader program reforms. 

Phase B would begin on October 1, 2014, and end when 

the volume of recoverable crude helium in the Reserve 

reaches 3 billion scf. During Phase B, the BLM would balance factors involving the maximization of total recovery 

from the Reserve; the maximization of total financial return to the taxpayer; the amount of production capable 

from the Reserve; the demand of Federal users, grant holders, and contractors; and minimization of market disruption when determining the annual quantity of crude helium to offer for sale. Also during Phase B, the BLM would 

annually auction a percentage of the total crude helium offered for sale, beginning at 10 percent, and increasing by 

10 percent increments each subsequent year, up to a maximum of 100 percent. 

This percentage would be subject to adjustment if necessary to minimize market disruptions that pose a threat 

to the economic well-being of the United States. The Department supports this phased approach to implementing 

an auction system, and believes that auctions can be implemented with minimal market disruption. 

Phase C would begin when the volume of recoverable 

crude helium in the Reserve reaches 3 billion scf and presumably last until all recoverable helium has been exhausted from the Reserve. During Phase C, the BLM 

would be authorized to sell crude helium only for use by 

Federal agencies contractors, and grant holders. The Department supports the provision to reserve the remaining 

volume for Federal use. 

Other significant aspects of S. 783 involve reauthorization of the Helium Production Fund and requirements that 

the BLM disclose certain information related to the Federal helium system. Reauthorization of the Helium Production Fund is consistent with the 2014 President’s Budget, 

which includes a proposal to reauthorize the fund in combination with substantive reforms to BLM helium sales 

based on recent recommendations from the National Academy of Sciences. The Department and the BLM are committed to ensuring that the public receives a fair return on 

publicly owned energy and related resources. The Department and the BLM are also firmly committed to making 

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sible, and consider transparency and open government a 

high priority. The Department looks forward to discussing 

these issues further with the sponsors and the Committee, 

and the Administration continues to evaluate any cost implications of this legislation. 

Furthermore, the bill would require the Secretary of the 

Interior to complete several reports and studies on helium. 

These include global and national helium gas resource assessments, and, in coordination with the Secretary of Energy, national forecasts and global trends of helium demand and an inventory of helium uses in the United 

States. The bill would also direct the Secretary of Energy 

to support several areas of helium separation-related research; allow the Secretary of the Interior, in consultation 

with the Secretary of Energy, to assess the feasibility of 

establishing a facility to separate the isotope helium–3; 

and direct the Secretary of the Interior, in consultation 

with various Federal agencies, to submit a report to Congress on a Federal Agency Helium Acquisition Strategy. 

The Department supports additional studies and research 

on helium, but defers to the Department of Energy regarding the research projects for which the Department of Energy would have the lead. 

Finally, the bill specifies that its provisions shall not affect or diminish the rights and obligations of the Secretary 

of the Interior and private parties under agreements in existence on the date of enactment, and directs the Secretary 

to promulgate such regulations as are necessary. The Department supports the provision which honors existing 

agreements between the BLM and private parties. 

CONCLUSION

Thank you for the opportunity to present testimony on 

S. 783. The BLM welcomes further discussion about the 

Federal helium program and the BLM’s role in meeting future helium needs for the country, especially for Federal 

agencies that depend on helium for scientific research, 

aerospace projects, and defense purposes. Since its formal 

discovery almost 120 years ago, helium has proven to be 

an increasingly important natural resource. The expansion 

of helium-related technology and declining domestic reserves means the importance of helium as a strategic resource is likely to increase. The BLM continues to serve 

the country by effectively managing the Reserve, and 

working with natural gas producers to efficiently extract 

helium from natural gas. I would be happy to answer any 

questions the Committee may have. 


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30 


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should the 
31 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, changes in existing law made by the bill, as 

ordered 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 

Act of March 3, 1925, 43 Stat. 1110, as amended by 

Helium Act Amendments of 1960, Public Law 86–777, 74 Stat. 918, 

as amended by 

Helium Privatization Act of 1996, Public Law 104–273, 110 Stat. 

3315 

AN ACT Authorizing the conservation, production, and exploitation of helium gas, 

a mineral resource pertaining to the national defense, and to the development of 

commercial aeronautics, and for other purposes. 

Be it enacted by the Senate and House of Representatives of the 

United States of America in Congress assembled, That this Act may 

be cited as the ‘‘Helium Act’’. 

øSEC. 2. As used in this Act: 

ø(1) The term ‘‘Secretary’’ means the Secretary of the Interior; 

ø(2) The term ‘‘person’’ means any individual, corporation, partnership, firm, association, trust, estate, public or private institution, or State or political subdivision thereof; and 

ø(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.¿ 

SEC. 2. DEFINITIONS. 

In this Act: 

(1) CLIFFSIDE FIELD.—The term ‘‘Cliffside Field’’ means the 

helium storage reservoir in which the Federal Helium Reserve 

is stored. 

(2) FEDERAL HELIUM PIPELINE.—The term ‘‘Federal Helium 

Pipeline’’ means the federally owned pipeline system through 

which the Federal Helium Reserve may be transported. 

(3) FEDERAL HELIUM RESERVE.—The term ‘‘Federal Helium 

Reserve’’ means helium reserves owned by the United States. 

(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.—The term ‘‘Federal user’’ means a Federal agency or extramural holder of one or more Federal research grants using helium. 


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(6) LOW-BTU GAS.—The term ‘‘low-Btu gas’’ means a fuel gas 

with a heating value of less than 250 Btu per standard cubic 

foot measured as the higher heating value resulting from the inclusion of noncombustible gases, including nitrogen, helium, 

argon, and carbon dioxide. 

(7) PERSON.—The term ‘‘person’’ means any individual, corporation, partnership, firm, association, trust, estate, public or 

private institution, or State or political subdivision. 

(8) PRIORITY PIPELINE ACCESS.—The term ‘‘priority pipeline 

access’’ means the first priority of delivery of crude helium 

under which the Secretary schedules and ensures the delivery 

of crude helium to a helium refinery through the Federal Helium System. 

(9) QUALIFIED BIDDER.— 

(A) IN GENERAL.—The term ‘‘qualified bidder’’ means a 

person the Secretary determines is seeking to purchase helium for their own use, refining, or redelivery to users. 

(B) EXCLUSION.—The term ‘‘qualified bidder’’ does not include a person who was previously determined to be a 

qualified bidder if the Secretary determines that the person 

did not meet the requirements of a qualified bidder under 

this Act. 

(10) QUALIFYING DOMESTIC HELIUM TRANSACTION.—The term 

‘‘qualifying domestic helium transaction’’ means any agreement 

entered into or renegotiated agreement during the preceding 1- 

year period in the United States for the purchase or sale of at 

least 20,000,000 standard cubic feet of crude or pure helium to 

which any holder of a contract with the Secretary for the acceptance, storage, delivery, or redelivery of crude helium from the 

Federal Helium System is a party. 

(11) REFINER.—The term ‘‘refiner’’ means a person with the 

ability to take delivery of crude helium from the Federal Helium Pipeline and refine the crude helium into pure helium. 

(12) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 

of the Interior. 

SEC. 3. AUTHORITY OF SECRETARY. 

* * * * * * * 

(c) EXTRACTION OF HELIUM FROM DEPOSITS ON FEDERAL LAND.— All amounts received by the Secretary from the sale or disposition 

of helium on Federal land shall be credited to the Helium Production Fund established under section 6(e). 

SEC. 4. STORAGE, TRANSPORTATION AND WITHDRAWL OF CRUDE HELIUM. 

* * * * * * * 

(c) DISPOSAL OF FACILITIES.— 

* * * * * * * 

(3) PROCEEDS.—All proceeds accruing to the United States by 

reason of the sale or other disposal of such property shall be 

treated as moneys received under this chapter for purposes of 

section ø6(f)¿ 6(d) of this title. 

(4) COSTS.—All costs associated with such sale and disposal 

(including costs associated with termination of personnel) and 

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tion shall be paid from amounts available in the helium production fund established under section ø6(f)¿ 6(d) of this title. 

* * * * * * * 

(d) EXISTING CONTRACTS.— 

* * * * * * * 

(2) COSTS.—Any costs associated with the termination of contracts described in paragraph (1) shall be paid from the helium 

production fund established under section ø6(f)¿ 6(d) of this 

title. 

øSEC. 5. FEES FOR STORAGE, TRANSPORTATION, AND WITHDRAWAL. 

ø(a) IN GENERAL.—Whenever the Secretary provides helium storage withdrawal or transportation services to any person, the Secretary shall impose a fee on the person to reimburse the Secretary 

for the full costs of providing such storage, transportation, and 

withdrawal. 

ø(b) TREATMENT.—All fees received by the Secretary under subsection (a) of this section shall be treated as moneys received under 

this Act for purposes of section 167d(f).¿ 

SEC. 5. STORAGE, WITHDRAWAL AND TRANSPORTATION. 

(a) IN GENERAL.—If the Secretary provides helium storage, withdrawal, or transportation services to any person, the Secretary shall 

impose a fee on the person that accurately reflects the economic 

value of those services. 

(b) MINIMUM FEES.—The fees charged under subsection (a) shall 

be not less than the amount required to reimburse the Secretary for 

the full costs of providing storage, withdrawal, or transportation 

services, including capital investments in upgrades and maintenance at the Federal Helium System. 

(c) SCHEDULE OF FEES.—Prior to sale or auction under subsection 

(a), (b), or (c) of section 6, the Secretary shall annually publish a 

standardized schedule of fees that the Secretary will charge under 

this section. 

(d) TREATMENT.—All fees received by the Secretary under this section shall be credited to the Helium Production Fund established 

under section 6(e). 

(e) STORAGE AND DELIVERY.—In accordance with this section, the 

Secretary shall— 

(1) allow any person or qualified bidder to which crude helium is sold or auctioned under section 6 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 6(b)(2); 

(B) ensures timely delivery of helium acquired from the 

Secretary from the Federal Helium Reserve by means other 

than an auction under section 6(b)(2) after the date of enactment of the Helium Stewardship Act of 2013, including 

non-allocated sales; and 

(C) provides priority access to the Federal Helium Pipeline for in-kind sales for Federal users. 

(f) NEW REFINING CAPACITY.—The Secretary shall consider any 

applications for access to the Federal Helium Pipeline in a manner 


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consistent with the schedule for phasing out commercial sales and 

disposition of assets pursuant to section 6. 

øSEC. 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. 

ø(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) of this section, 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. 

ø(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— 

ø(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 

ø(2) adjusting the amount determined under paragraph (1) 

by the Consumer Price Index for years beginning after December 31, 1995. 

ø(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). 

ø(e)(1) All moneys received under this chapter, 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 chapter, 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 chapter 

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. 

ø(2)(A) Within 7 days after the commencement of each fiscal year 

after the disposal of the facilities referred to in section 167b(c) of 

this title, all amounts in such fund in excess of $2,000,000 (or such 

lesser sum as the Secretary deems necessary to carry out this chapter during such fiscal year) shall be paid to the Treasury and credited as provided in paragraph (1). 

ø(B) On repayment of all amounts referred to in subsection (c) 

of this section, the fund established under this section shall be terVerDate Mar 15 2010 06:46 Aug 01, 2013 Jkt 029010 PO 00000 Frm 00034 Fmt 6659 Sfmt 6602 E:\HR\OC\SR083.XXX SR083

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minated and all moneys received under this chapter shall be deposited in the general fund of the Treasury.¿ 

SEC. 6. SALE OF CRUDE HELIUM. 

(a) PHASE A: ALLOCATION TRANSITION.— (1) IN GENERAL.—The Secretary shall offer crude helium for 

sale in such quantities, at such times, at not less than the minimum price established under subsection (b)(7), and under such 

terms and conditions as the Secretary determines necessary to 

carry out this subsection with minimum market disruption. 

(2) FEDERAL PURCHASES.—Federal users may purchase refined helium with priority pipeline access under this subsection 

from persons who have entered into enforceable contracts to 

purchase an equivalent quantity of crude helium at the in-kind 

price from the Secretary. 

(3) DURATION.—This subsection applies during— 

(A) the period beginning on the date of enactment of the 

Helium Stewardship Act of 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 GENERAL.—The Secretary shall offer crude helium for 

sale in quantities not subject to auction under paragraph (2), 

at such times, 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 QUANTITIES.—For 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; and 

(B) for each subsequent fiscal year, a percentage of the 

total volume of crude helium that is 10 percentage points 

greater than the percentage available for the previous fiscal 

year, but not to exceed 100 percent. 

(3) FEDERAL PURCHASES.—Federal users may purchase refined helium with priority pipeline access under this subsection 

from persons who have entered into enforceable contracts to 

purchase an equivalent quantity of crude helium at the in-kind 

price from the Secretary. 

(4) DURATION.—This subsection applies during the period— 

(A) beginning on October 1, 2014; and 


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(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) SAFETY VALVE.—The 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.—The Secretary shall conduct each auction using a method that maximizes revenue to the Federal Government. 

(7) PRICES.—The Secretary shall annually establish, as applicable, 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 GENERAL.—The 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) CONDITION.—As a condition of sale or auction to a refiner under subsection (a)(1) and paragraphs (1) and (2), 

effective beginning 90 days after the date of enactment of 

the Helium Stewardship Act of 2013, the refiner shall make 


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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 

the date of enactment of the Helium Stewardship Act 

of 2013, including nonallocated sales. 

(9) USE OF INFORMATION.—The Secretary may use the information collected under this Act— 

(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.—The Secretary shall 

adopt such administrative policies and procedures as the Secretary considers necessary and reasonable to ensure the confidentiality of information submitted pursuant to this Act. 

(c) PHASE C: CONTINUED ACCESS FOR FEDERAL USERS.— 

(1) IN GENERAL.—The Secretary shall offer crude helium for 

sale to Federal users in such quantities, at such times, at such 

prices required to reimburse the Secretary for the full costs of 

the sales, and under such terms and conditions as the Secretary 

determines necessary to carry out this subsection. 

(2) FEDERAL PURCHASES.—Federal users may purchase refined helium with priority pipeline access under this subsection 

from persons who have entered into enforceable contracts to 

purchase an equivalent quantity of crude helium at the in-kind 

price from the Secretary. 

(3) EFFECTIVE DATE.—This subsection applies beginning on 

the day after the date described in subsection (b)(4)(B). 

(d) PHASE D: DISPOSAL OF ASSETS.— 

(1) IN GENERAL.—Not earlier than 2 years after the date of 

commencement of Phase C described in subsection (c) and not 

later than January 1, 2023, the Secretary shall designate as excess property and dispose of all facilities, equipment, and other 

real and personal property, and all interests in the same, held 

by the United States in the Federal Helium System. 

(2) APPLICABLE LAW.—The disposal of the property described 

in paragraph (1) shall be in accordance with subtitle I of title 

40, United States Code. 

(3) PROCEEDS.—All proceeds accruing to the United States by 

reason of the sale or other disposal of the property described in 

paragraph (1) shall be treated as funds received under this Act 

for purposes of subsection (e). 

(4) COSTS.—All costs associated with the sale and disposal 

(including costs associated with termination of personnel) and 

with the cessation of activities under this subsection shall be 

paid from amounts available in the Helium Production Fund 

established under subsection (e). 

(e) HELIUM PRODUCTION FUND.— (1) IN GENERAL.—All amounts received under this Act, 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 


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to be necessary and cost effective by the Secretary to carry out 

this Act (other than sections 16, 17, and 18), 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, 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.—Amounts in the Helium Production Fund 

in excess of the amounts the Secretary determines to be necessary to carry out paragraph (1) shall be paid to the general 

fund of the Treasury and used to reduce the annual Federal 

budget deficit. 

(3) RETIREMENT OF PUBLIC DEBT.—Out of amounts paid to 

the general fund of the Treasury under paragraph (2), the Secretary of the Treasury shall use $51,000,000 to retire public 

debt. 

(f) MINIMUM QUANTITY.—The 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; and 

(2) the maximum total production capacity of the Federal Helium System. 

* * * * * * * 

øSEC. 15. REPORT ON HELIUM. 

ø(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 167f of this title, 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. 

ø(b) TRANSMISSION TO CONGRESS.—Not later than 18 months before the date on which the Secretary commences offering for sale 

crude helium under section 167f of this title, the Secretary shall 

transmit to the Congress— 

ø(1) the report of the National Academy under subsection (a) 

of this section; 

ø(2) the findings of the Secretary, after consideration of the 

conclusions of the National Academy under subsection (a) of 

this section 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 

167f of this title will have a substantial adverse effect on the 

United States helium industry, United States, helium market 


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or United States, [1] scientific, technological, biomedical, or national security interests; and 

ø(3) if the Secretary determines that selling the crude helium reserves under the formula established in section 167f of 

this title 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. 15. INFORMATION. 

(a) TRANSPARENCY.—The 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 6(c) 

will begin; 

(7) the amount of the fees charged under section 5; 

(8) the scheduling of crude helium deliveries through the Federal Helium Pipeline; and 

(9) other factors that will increase transparency. 

(b) REPORTING.—Not later than 90 days after the date of enactment of the Helium Stewardship Act of 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; 


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(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. 

SEC. 16. HELIUM GAS RESOURCE ASSESSMENT. 

(a) IN GENERAL.—Not later than 2 years after the date of enactment of the Helium Stewardship Act of 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. 


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(b) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to carry out this section $1,000,000. 

SEC. 17. 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 lowBtu gas during natural gas exploration and production. 

(b) PROGRAMS.— 

(1) MEMBRANE TECHNOLOGY RESEARCH.—The Secretary of 

Energy, in consultation with other appropriate agencies, shall 

support a civilian research program to develop advanced membrane technology that is used in the separation of low-Btu 

gases, including technologies that remove helium and other constituent gases that lower the Btu content of natural gas. 

(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.—There is authorized to 

be appropriated to carry out this section $3,000,000. 

SEC. 18. 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. 


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(c) REPORT.—Not later than 1 year after the date of enactment of 

the Helium Stewardship Act of 2013, the Secretary shall 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 that contains a description of the results of the assessments 

conducted under this section. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to carry out this section $1,000,000. 

SEC. 19. FEDERAL AGENCY HELIUM ACQUISITION STRATEGY. 

In anticipation of the implementation of Phase D described in section 6(d), and not later than 2 years after the date of enactment of 

the Helium Stewardship Act of 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, and the Director of 

the National Institutes of Health) 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 January 1, 2023, for the 

implementation of Phase D as described in section 6(d) 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. 

SEC. ø17¿ 20. 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. 

SECURE RURAL SCHOOLS AND COMMUNITY SELFDETERMINATION ACT OF 2000 

Public Law 106–393, as amended by section 601(a) of the Tax Extenders and Alternative Minimum Tax Relief Act of 2008, Division C of Public Law 110–343 

AN ACT To restore stability and predictability to the annual payments made to 

States and counties containing National Forest System lands and public domain 

lands managed by the Bureau of Land Management for use by the counties for 

the benefit of public schools, roads, and other purposes. 

* * * * * * * 


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TITLE I—SECURE PAYMENTS FOR STATES AND 

COUNTIES CONTAINING FEDERAL LANDS 

SEC. 101. SECURE PAYMENTS FOR STATES CONTAINING FEDERAL 

LAND. 

(a) STATE PAYMENT.—For each of fiscal years 2008 through 

ø2012¿ 2013, the Secretary of Agriculture shall calculate for each 

eligible State an amount equal to the sum of the products obtained 

by multiplying— 

(1) the adjusted share for each eligible county within the eligible State; by 

(2) the full funding amount for the fiscal year. 

(b) COUNTY PAYMENT.—For each of fiscal years 2008 through 

ø2012¿ 2013, the Secretary of Interior shall calculate for each eligible county that received a 50–percent payment during the eligibility period an amount equal to the product obtained by 

multiplying- 

(1) the 50-percent adjusted share for the eligible county; by 

(2) the full funding amount for the fiscal year. 

SEC. 102. PAYMENTS TO STATES AND COUNTIES. 

* * * * * * * 

(b) ELECTION TO RECEIVE PAYMENT AMOUNT.— (1) ELECTION; SUBMISSION OF RESULTS.— (A) IN GENERAL.—The election to receive a share of the 

State payment, the county payment, a share of the payment and the 25-percent payment, the 50-percent payment, or a share of the 25-percent payment and the 50- 

percent payment, as applicable shall be made at the discretion of each affected county by August 1, ø2012¿ 2013 

(or as soon thereafter as the Secretary concerned determines as practicable), and August 1 of each fiscal year 

thereafter, in accordance with paragraph (2), and transmitted to the Secretary concerned by the Governor of each 

eligible State. 

* * * * * * * 

(2) DURATION OF ELECTION.— 

* * * * * * * 

(B) FULL FUNDING AMOUNT.—If a county elects to receive 

a share of the State payment or the county payment in 

ø2012¿ 2013, the election shall be effective for all subsequent fiscal years through fiscal year ø2012¿ 2013. 

* * * * * * * 

SEC. 103. TRANSITION PAYMENTS TO STATES. 

* * * * * * * 

(d) DISTRIBUTION OF PAYMENTS IN CALIFORNIA.— 

* * * * * * * 

(2) The shares of the eligible counties of the State payment 

for California under section 7112 of this title for each of the fiscal years 2011 øand 2012¿ through 2013. 

* * * * * * * 


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TITLE II—SPECIAL PROJECTS ON FEDERAL 

LAND 

* * * * * * * 

SEC. 203. SUBMISSION OF PROJECT PROPOSALS. 

(a) SUBMISSION OF PROJECT PROPOSALS TO SECRETARY CONCERNED.— 

(1) PROJECTS FUNDED USING PROJECT FUNDS.—No later than 

September 30 for fiscal year 2008 (or as soon thereafter as the 

Secretary concerned determines is practicable), and each September 30 thereafter for each succeeding fiscal year through 

fiscal year ø2012¿ 2013, each resource advisory committee 

shall submit to the Secretary concerned a description of any 

projects that the resource advisory committee proposes the Secretary undertake using any project funds reserved by eligible 

counties in the area in which the resource advisory committee 

has geographic jurisdiction. 

* * * * * * * 

SEC. 204. EVALUATION AND APPROVAL OF PROJECTS BY SECRETARY 

CONCERNED. 

* * * * * * * 

(e) IMPLEMENTATION OF APPROVED PROJECTS.— 

* * * * * * * 

(3) MERCHANTABLE TIMBER CONTRACTING PILOT PROGRAM.— 

* * * * * * * 

(B) ANNUAL PERCENTAGES.—Under the pilot program, 

the Secretary concerned shall ensure that, on a nationwide 

basis, not less than the following percentage of all approved projects involving the sale of merchantable timber 

are implemented using separate contracts: 

* * * * * * * 

(iii) For each of fiscal years 2010 through ø2012¿ 

2013, 50 percent. 

* * * * * * * 

SEC. 205. RESOURCE ADVISORY COMMITTEES. 

(a) ESTABLISHMENT AND PURPOSE OF RESOURCE ADVISORY COMMITTEES.— 

* * * * * * * 

(4) EXISTING ADVISORY COMMITTEES.— 

(A) IN GENERAL.—An advisory committee that meets the 

requirements of this section, a resource advisory committee established before September 29, ø2011¿ 2012, or 

an advisory committee determined by the Secretary concerned before September 29, ø2011¿ 2012 to meet the requirements of this section may be deemed by the Secretary 

concerned to be a resource advisory committee for the purposes of this title. 

(B) CHARTER.—A charter for a committee described in 

subparagraph (A) that was filed on or before September 


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29, ø2011¿ 2012, shall be considered to be filed for purposes of this title. 

* * * * * * * 

SEC. 207. AVAILABLITY OF PROJECT FUNDS. 

(a) SUBMISSION OF PROPOSED PROJECTS TO OBLIGATED FUNDS.— 

By September 30, 2008 (or as soon thereafter as the Secretary concerned determines is practicable), and each September 30 thereafter for each succeeding fiscal year through fiscal year ø2012¿ 

2013, a resource advisory committee shall submit to the Secretary 

concerned pursuant to section 203(a)(1) of this title a sufficient 

number of project proposals that, if approved, would result in the 

obligation of at least the full amount of the project funds reserved 

by the participating county in the preceding fiscal year. 

* * * * * * * 

SEC. 208. TERMINATION OF AUTHORITY. 

(a) IN GENERAL.—The authority to initiate projects under this 

subchapter shall terminate on September 30, ø2012¿ 2013. 

(b) DEPOSITS IN THE TREASURY.—Any project funds not obligated 

by September 30, ø2013¿ 2014, shall be deposited in the Treasury 

of the United States. 

* * * * * * * 

TITLE III—COUNTY FUNDS 

* * * * * * * 

SEC. 304. TERMINATION OF AUTHORITY. 

(a) IN GENERAL.—The authority to initiate projects under this 

subchapter terminates on September 30, ø2012¿ 2013. 

(b) AVAILABILITY.—Any county funds not obligated by September 

30, ø2013¿ 2014, shall be returned to the Treasury of the United 

States. 

* * * * * * * 

TITLE IV—MISCELLANEOUS PROVISIONS 

* * * * * * * 

SEC. 402. AUTHORIZATION OF APPROPRIATIONS. 

There are authorized to be appropriated at such sums as are necessary to carry out this Act for each of fiscal years 2008 through 

ø2012¿ 2013. 

ENERGY POLICY ACT OF 2005 

Public Law 109–58, as amended 

AN ACT To ensure jobs for our future with secure, affordable, and reliable energy. 

* * * * * * * 

TITLE III—OIL AND GAS 

* * * * * * * 


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Subtitle E—Production Incentives 

* * * * * * * 

SEC. 349. ORPHANED, ABANDONED, OR IDELED WELLS ON FEDERAL 

LANDS. 

* * * * * * * 

(h) AUTHORIZATION OF APPROPRIATIONS.— 

* * * * * * * 

(i) FEDERALLY DRILLED WELLS.—Out of any amounts in the Treasury not otherwise appropriated, $50,000,000 shall be made 

available to the Secretary, without further appropriation and to remain available until expended, to remediate, reclaim, and close 

abandoned oil and gas wells on current or former National Petroleum Reserve land. 

* * * * * * * 

OMNIBUS PARKS AND PUBLIC LANDS MANAGEMENT 

ACT OF 1996 

Public Law 104–333, as amended 

AN ACT To provide for the administration of certain Presidio properties at minimal 

cost to the Federal taxpayer, and for other purposes. 

* * * * * * * 

TITLE VIII—MISCELLANEOUS ADMINISTRATIVE AND MANAGEMENT PROVISIONS 

* * * * * * * 

SEC. 814. NATIONAL PARK SERVICE ADMINISTRATIVE REFORM. 

* * * * * * * 

(g) CHALLENGE COST-SHARE AGREEMENT AUTHORITY.— 

* * * * * * * 

(4) AVAILABLE FUNDS.—Out of any amounts in the Treasury 

not otherwise appropriated, $50,000,000 shall be made available to the Secretary of the Interior, without further appropriation and to remain available until expended, to pay the Federal 

funding share of challenge cost-share agreements for deferred 

maintenance projects and to correct deficiencies in National 

Park Service infrastructure. 

(5) COST-SHARE REQUIREMENT.—Not less than 50 percent of 

the total cost of project for funds made available under paragraph (4) to pay the Federal funding share shall be derived 

from non-Federal sources, including in-kind contribution of 

goods and services fairly valued. 

* * * * * * * 


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SURFACE MINING CONTROL AND RECLAMATION ACT 

OF 1977 

Public Law 95–87 

AN ACT To provide for the cooperation between the Secretary of the Interior and 

the States with respect to the regulation of surface coal mining operations, and 

the acquisition and reclamation of abandoned mines, and for other purposes. 

* * * * * * * 

TITLE IV—ABANDONDED MINE RECLAMATION 

* * * * * * * 

SEC. 411. CERTIFICATION 

* * * * * * * 

(h) PAYMENTS TO STATES AND INDIAN TRIBES.— 

* * * * * * * 

(6) SUPPLEMENTAL FUNDING.— (A) WAIVER OF LIMITATION.—Notwithstanding paragraph 

(5), the limitation on the total annual payments to a certified State or Indian tribe under this subsection shall not 

apply for fiscal year 2014. 

(B) LIMITATION ON WAIVER.—Notwithstanding subparagraph (A), the total annual payment to a certified State or 

Indian tribe under this section for fiscal year 2014 shall 

not be more than $75,000,000. 

(C) INSUFFICIENT AMOUNTS.—If the total annual payment to a certified State or Indian tribe under paragraphs 

(1) and (2) is limited by subparagraph (B), the Secretary 

shall— 

(i) give priority to making payments under paragraph (2); and 

(ii) use any remaining funds to make payments 

under paragraph (1). 

* * * * * * * 

ENERGY INDEPENDENCE AND SECURITY ACT OF 2007 

Public Law 110–140, as amended 

AN ACT To move the United States toward greater energy independence and security, to increase the production of clean renewable fuels, to protect consumers, to 

increase the efficiency of products, buildings, and vehicles, to promote research on 

and deploy greenhouse gas capture and storage options, and to improve the performance of the Federal Government, and for other purposes. 

* * * * * * * 

TITLE II—ENERGY SECURITY THROUGH 

INCREASED PRODUCTION OF BIOFUELS 

* * * * * * * 

SEC. 207. GRANTS FOR PRODUCTION OF ADVANCED BIOFUELS. 

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(c) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to carry out this section $500,000,000 for the period of fiscal years 2008 through 2015, except that the amount authorized to be appropriated to carry out this section not appropriated as of the date of enactment of the Helium Stewardship Act 

of 2013 shall be reduced by $5,000,000. 

* * * * * * * 

Æ 


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