[Federal Register Volume 63, Number 144 (Tuesday, July 28, 1998)]
[Rules and Regulations]
[Pages 40175-40180]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-20003]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management

30 CFR Part 602; 43 CFR Part 3195

[WO-130-1820-00-24 1A]
RIN 1004-AD24


Helium Contracts

AGENCY: Bureau of Land Management, Interior.

ACTION: Interim rule with request for comments.

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[[Page 40176]]

SUMMARY: The Bureau of Land Management (BLM) is issuing an interim rule 
to implement the requirements of the Helium Privatization Act of 1996. 
This rule establishes the procedures of the helium program and defines 
the obligations of Federal helium suppliers and Federal helium users. 
Also, this interim rule removes the Bureau of Mines regulations 
governing helium distribution contracts because this responsibility is 
now under BLM's jurisdiction.

DATES: This rule is effective on July 28, 1998. Written comments must 
be received on or before August 27, 1998.

ADDRESSES: Comments: If you wish to comment, you may submit your 
comments by any one of several methods. You may mail comments to Bureau 
of Land Management, Administrative Record, Room 401LS, 1849 C Street, 
NW, Washington, DC 20240. You may also comment via the Internet to 
WOC<a href="/cdn-cgi/l/email-protection#9bf4f6f6fef5efdbecf4b5f9f7f6b5fcf4ed"><span class="__cf_email__" data-cfemail="f19e9c9c949f85b1869edf939d9cdf969e87">[email protected]</span></a>. Finally, you may hand-deliver comments to BLM at 
1620 L Street, NW, Room 401, Washington, DC. See SUPPLEMENTARY 
INFORMATION for more detail on comment procedures.

FOR FURTHER INFORMATION CONTACT: Shirlean Beshir, Regulatory Affairs 
Group (WO-630), Bureau of Land Management, Mail Stop 401LS, 1849 ``C'' 
Street, NW, Washington, DC 20240; telephone (202) 452-5033 (Commercial 
or FTS) and Timothy R. Spisak, (806) 324-2602 (Commercial or FTS). 
Individuals who use a telecommunications device for the deaf (TDD) may 
call the Federal Information Relay Service (FIRS) at 1-800-877-8339 
between 8:00 a.m. and 8:00 p.m., Eastern Time, Monday through Friday.

SUPPLEMENTARY INFORMATION:

Why Is BLM Issuing These Regulations?

    BLM is issuing these regulations to implement the requirements of 
the Helium Privatization Act of 1996, Public Law 104-273 (the Act), and 
to remove the Bureau of Mines regulations at 30 CFR 602 governing 
helium distribution contracts because this responsibility is now under 
BLM's jurisdiction. BLM is adding these interim regulations as a new 
Part 3195 to BLM's oil and gas regulations.

What Are the Primary Requirements of the Helium Privatization Act?

    The Act primarily requires that:
    <bullet> BLM discontinue producing, marketing, and selling refined 
helium.
    <bullet> Persons who supply a major helium requirement to Federal 
agencies must contract with BLM to purchase an equivalent amount of 
crude helium from BLM.
    <bullet> BLM use a legislatively mandated formula for determining 
the minimum price for crude helium. '

How Does the Helium Privatization Act Set the Price for Helium?

    The Act uses a formula by which income from crude helium sales is 
to repay the sizeable debt the Federal Helium Program owes to the 
United States Treasury.

Who Administers the Federal Helium Program?

    The Federal Helium Program is administered by the Department of the 
Interior, Bureau of Land Management, Helium Operations, which is 
responsible for the production, conservation, sale, and distribution of 
helium. Helium Operations was transferred from the Bureau of Mines 
(BOM) to BLM in 1996 by the Secretary of the Interior when BOM was 
abolished. Unlike many other BLM programs, this program does not deal 
with lands or minerals issues in their traditional sense. The Helium 
Operations Headquarters in Amarillo, Texas, provides management, 
engineering, and support services for Federal facilities and pipelines 
in Texas, Oklahoma, and Kansas, regardless of whether or not the helium 
involved is produced from Federal lands.

How Is the Federal Helium Program Financed?

    The Federal Helium Program is financed by income from the sale, 
storage, and analysis of helium, and not by appropriations from 
Congress. Any income in excess of that needed for operations is turned 
over to the Treasury. Over the last 3 years, an average of about $8 
million per year has been returned to the Treasury.

From Whom Must Federal Agencies Purchase Their Major Helium 
Requirements?

    The Department of Defense, Department of Energy, National 
Aeronautics and Space Administration, other Federal agencies and their 
contractors must purchase their major helium requirements from 
``Federal helium suppliers.'' Federal helium suppliers are persons who 
have entered into contracts to purchase from BLM an amount of crude 
helium equivalent to the amount of refined helium supplied to a Federal 
agency. These contracts are called In-Kind Crude Helium Sales 
Contracts. This interim rule establishes procedures governing the sale 
of crude helium to Federal agencies with major helium requirements. The 
In-Kind Crude Helium Sales Contracts establish additional terms of the 
relationship and responsibilities of Federal helium buyers, Federal 
helium suppliers, and BLM.

What Are the Major Differences Between the Old BOM Regulations and 
These Regulations?

------------------------------------------------------------------------
          Old BOM regulations                   These regulations       
------------------------------------------------------------------------
The price of the helium was not set by   The minimum crude helium price 
 regulation. Refined helium sales         is mandated in the Act and    
 prices were set by BOM.                  includes BLM's cost to        
                                          administer crude helium sales.
------------------------------------------------------------------------
The helium contract language was in the  The contract language is not in
 regulations.                             the new regulations, so that  
                                          BLM will be able to revise the
                                          contract language when it is  
                                          necessary, without formal     
                                          rulemaking.                   
------------------------------------------------------------------------
The term ``helium distribution           The new term ``Federal helium  
 contractor'' meant a private helium      supplier'' means a private    
 supplier who is an authorized refined    helium supplier who is        
 helium distributor.                      authorized to sell refined    
                                          helium to a Federal agency or 
                                          agency contractor and who is  
                                          required to purchase an       
                                          equivalent amount of crude    
                                          helium from BLM.              
------------------------------------------------------------------------
A ``Major helium requirement'' was       A ``Major helium requirement'' 
 5,000 cubic feet per month.              is 200,000 cubic feet per     
                                          year. To reduce the           
                                          administrative burden on      
                                          smaller agencies and          
                                          suppliers, BLM raised the     
                                          helium volume that is         
                                          considered a major helium     
                                          requirement. This allows      
                                          Federal helium users to       
                                          procure ``nonmajor'' helium   
                                          requirements more economically
                                          and efficiently. The higher   
                                          threshold still covers over 90
                                          percent of the Federal refined
                                          helium delivered over the last
                                          three years.                  

[[Page 40177]]

                                                                        
The ``helium use location'' was not an   By specifying expected helium  
 issue.                                   requirements by helium use    
                                          location, consolidated helium 
                                          purchases are not as likely to
                                          push nonmajor helium          
                                          requirements into the more    
                                          expensive major helium        
                                          requirement category.         
------------------------------------------------------------------------
The helium-buying agency was required    The helium-buying agency must  
 to identify in procurement documents     clearly identify which helium 
 when ``Bureau of Mines Helium'' was      use locations have been       
 required so that the private helium      determined to need a major    
 distributor would know that they had     helium requirement so that the
 to account for the helium sale.          helium supplier can accurately
                                          charge the buyer and report   
                                          the major helium requirement  
                                          sales to BLM.                 
------------------------------------------------------------------------
The Helium Distribution Contractors      In addition to annual reporting
 were required to report annually on      by Federal helium suppliers,  
 the refined helium sales/purchases       quarterly reporting by Federal
 made to and from Federal agencies or     helium suppliers and buyers is
 other Helium Distribution Contractors.   instituted. The quarterly     
                                          reports will help BLM verify  
                                          refined helium sales made to  
                                          Federal agencies by Federal   
                                          helium suppliers.             
------------------------------------------------------------------------
Refined helium shortages for Federal     Since the Act ordered the      
 needs were minimized because the         Government-owned helium       
 Federal Government, acting as its own    refinery to be shut down, BLM 
 helium refiner, had adequate back-up     cannot directly prevent helium
 procedures and equipment.                shortages. These regulations  
                                          require that, under an In-Kind
                                          Crude Helium Sales Contract,  
                                          the Federal Government has    
                                          priority over non-government  
                                          refined helium needs.         
------------------------------------------------------------------------

Procedural Matters

Waiver of Notice of Proposed Rulemaking and 30-Day Delay of Effective 
Date

    In accordance with 5 U.S.C. 553(b)(B), we find good cause exists 
for waiving the general notice of proposed rulemaking because such 
notice is impracticable. The BLM needs to have these regulations in 
effect at the earliest possible date because Congress mandated that the 
transition from the BLM supplying refined helium to Federal agencies to 
replenishing Federal helium suppliers' refined helium with crude helium 
occur within 18 months of the enactment of the Act (i.e., April 9, 
1998), and the Helium Distribution Contracts under prior regulations 
have expired. Therefore, these new regulations, which carry out the 
Congressional mandate, must be in place to provide guidance to Federal 
helium users in their purchases of major helium requirements. 
Nevertheless, BLM will consider all timely-filed comments. Furthermore, 
under 5 U.S.C. 553(d)(3), there is good cause for making this interim 
rule effective immediately. No private entity needs to reorder its 
affairs to come into compliance with this rule, but only is affected as 
it contracts with BLM. In addition, Congress has mandated that these 
changes occur within 18 months of enactment.

Comments

    If you wish to comment, you may submit your comments by any one of 
several methods. You may mail comments to Bureau of Land Management, 
Administrative Record, Room 401LS, 1849 C Street, NW, Washington, DC 
20240. You may also comment via the Internet to WOC<a href="/cdn-cgi/l/email-protection#a6c9cbcbc3c8d2e6d1c988c4cacb88c1c9d0"><span class="__cf_email__" data-cfemail="1c7371717972685c6b73327e7071327b736a">[email protected]</span></a>. 
Please submit comments as an ASCII file avoiding the use of special 
characters and any form of encryption. Please also include ``attn: 
AD24'' and your name and return address in your Internet message. If 
you do not receive a confirmation from the system that we have received 
your Internet message, contact us directly on (202) 452-5030.
    Comments, including names and street addresses of respondents, will 
be available for public review at this address during regular business 
hours (7:45 a.m. to 4:15 p.m.), Eastern time, Monday through Friday, 
except holidays. BLM will also post all comments on its home page 
(www.blm.gov) at the end of the comment period. Individual respondents 
may request confidentiality, which BLM will consider on a case-by-case 
basis. If you wish to request that BLM consider withholding your name, 
home street address, Internet address, or personal telephone number 
from public review or from disclosure under the Freedom of Information 
Act, you must state this prominently at the beginning of your comment. 
Such requests will be honored to the extent allowed by law. All 
submissions from organizations or businesses, and from individuals 
identifying themselves as representatives or officials of organizations 
or businesses, will be made available for public inspection in their 
entirety.
    Finally, you may hand-deliver comments to BLM at 1620 L Street, NW, 
Room 401, Washington, DC.

Executive Order 12866

    This document is not a significant rule and is not subject to 
review by the Office of Management and Budget under Executive Order 
12866. This interim rule will not have an effect of $100 million or 
more on the economy. It will not adversely affect in a material way the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities. The interim rule merely provides the BLM a means to 
document and bill sales of refined helium to Federal agencies and their 
contractors. The total maximum dollar value of the crude helium sales 
is estimated at about $15 million annually. The crude helium sales 
required by legislation replace the BLM refined helium sales being 
discontinued by the same legislation. The interim rule adds a small 
administrative cost to track crude and refined helium sales. This rule 
will not create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency. This rule does not alter the 
budgetary effects or entitlements, grants, user fees, or loan programs 
or the rights or obligations of their recipients. This rule merely 
fulfills the requirements of the Act, and does not raise novel legal or 
policy issues.

Regulatory Flexibility Act

    The Department certifies that this document will not have a 
significant economic effect on a substantial number of small entities 
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). This 
interim rule outlines the reporting requirements of Federal helium 
users and Federal helium suppliers. In addition, this interim rule 
raises refined helium sales thresholds from those contained in the 
prior regulations. The prior provisions would have required more small 
refined helium distributors to participate in refined helium sales 
reporting and subsequent crude helium purchases.

Small Business Regulatory Enforcement Fairness Act (SBREFA)

    The Department has determined that this interim rule is not a major 
rule

[[Page 40178]]

under 5 U.S.C. 804(2), the Small Business Regulatory Enforcement 
Fairness Act. This interim rule is not a major rule because total 
annual helium sales under the Act are not likely to exceed $15 million, 
well below the $100 million statutory threshold. Furthermore, any 
increases in cost will be borne by the Federal Government and in any 
event are mandated by the Act. Any effect on competition is the result 
of the Act. The interim rule merely provides the BLM a means to 
document and bill sales of refined helium to Federal agencies and their 
contractors. The crude helium sales required by legislation replace the 
BLM refined helium sales being discontinued by the same legislation. 
The interim rule adds a small administrative cost to track crude and 
refined helium sales.

Unfunded Mandates Reform Act

    This interim rule does not impose an unfunded mandate on State, 
local, or tribal governments, or the private sector of more than $100 
million per year. The interim rule does not have a significant or 
unique effect on State, local, or tribal governments, or the private 
sector. A statement containing the information required by the Unfunded 
Mandates Reform Act (2 U.S.C. 1531 et seq.) is not required. The 
interim rule merely provides the BLM a means to document and bill sales 
of crude helium to Federal helium suppliers based on their sales of 
refined helium to Federal agencies and their contractors. The total 
maximum dollar value of the crude helium sales is estimated at about 
$15 million annually. The crude helium sales required by the Helium 
Privatization Act of 1996 would replace the BLM refined helium sales 
being discontinued by the same legislation. The interim rule adds a 
small administrative cost to track crude and refined helium sales.

Executive Order 12630

    In accordance with Executive Order 12630, the interim rule does not 
have significant takings implications. A takings implication assessment 
is not required. Since the interim rule defines the obligations arising 
under future contracts, there will be no private property rights 
impaired as a result.

Executive Order 12612

    In accordance with Executive Order 12612, the interim rule does not 
have sufficient federalism implications to warrant the preparation of a 
Federalism Assessment. This interim rule does not impose any 
obligations on any other Government nor preempt any regulatory 
authority of any State.

Executive Order 12988

    In accordance with Executive Order 12988, the Office of the 
Solicitor has determined that this interim rule does not unduly burden 
the judicial system and meets the requirements of sections 3(a) and 
3(b)(2) of the Order.

Paperwork Reduction Act

    The information required by these regulations is the same as the 
information required by the In-Kind Crude Helium Sales Contracts. The 
information collections contained in the In-Kind Crude Helium Sales 
Contracts have been approved by OMB under Approval No. 1004-0179. The 
In-Kind Crude Helium Sales Contracts require Federal helium suppliers 
and Federal agencies to which the Federal helium suppliers sell the 
helium to provide specific information to BLM.

National Environmental Policy Act

    This rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. However, BLM has 
prepared an Environmental Assessment (EA) in accordance with section 
102(2)(C) of the National Environmental Policy Act of 1969, 42 U.S.C. 
4332(2)(C). BLM has placed the EA and Finding of No Significant Impact 
(FONSI) on file in the BLM Administrative Record at the address 
specified previously. BLM invites the public to review these documents 
by contacting us at the addresses listed above (see ADDRESSES), and 
suggests that anyone wishing to submit comments in response to the EA 
and FONSI do so in accordance with the Comments section above, or 
contact us directly.
    Author. The principal author of this rule is Timothy Spisak, Helium 
Operations, Bureau of Land Management, Amarillo, Texas, (806) 324-2602 
(Commercial or FTS), assisted by Shirlean Beshir of BLM's Regulatory 
Affairs Group, Bureau of Land Management, 1849 C Street, NW, 
Washington, DC 20240; Telephone: (202) 452-5033 (Commercial or FTS).

List of Subjects

30 CFR Part 602

    Government contracts, helium, reporting and recordkeeping 
requirements.

43 CFR Part 3195

    Government contracts, mineral royalties, oil and gas exploration, 
public lands-mineral resources, reporting and recordkeeping 
requirements, and surety bonds.

    Dated: July 13, 1998.
Sylvia V. Baca,
Deputy Assistant Secretary, Land and Minerals Management.

    Accordingly, under the authority of 5 U.S.C. 301 and for the 
reasons stated above, BLM amends 30 CFR Chapter VI and 43 CFR Chapter 
II as follows:

30 CFR CHAPTER VI

PART 602--[REMOVED]

    1. Remove 30 CFR part 602.

43 CFR CHAPTER II

    2. Add 43 CFR part 3195 to read as follows:

PART 3195--HELIUM CONTRACTS

Sec.

General Information

3195.10  What is the purpose of these regulations?
3195.11  What terms do I need to know to understand this subpart?
3195.12  What is an In-Kind Crude Helium Sales Contract?
3195.13  If I am a Federal helium supplier or buyer, what reports 
must I submit to BLM?
3195.14  How should I submit reports?

Federal Agency Requirements

3195.20  Who must purchase major helium requirements from Federal 
helium suppliers?
3195.21  When must I use an authorized Federal helium supplier?
3195.22  When must my contractors or subcontractors use an 
authorized Federal helium supplier?
3195.23  How do I get a list of authorized Federal helium suppliers?
3195.24  What must I do before contacting a non-Federal helium 
supplier for my helium needs?
3195.25  What information must be in my purchase order/contract for 
a major helium requirement?
3195.26  What information must I report to BLM?
3195.27  What do I do if my helium requirement becomes a major 
helium requirement after the initial determination has been made?

Federal Helium Supplier Requirements

3195.30  How do I become a Federal helium supplier?
3195.31  What are the general terms of an In-Kind Crude Helium Sales 
Contract?
3195.32  Where can I find a list of Federal agencies that use 
helium?
3195.33  What information must I report to BLM?
3195.34  What happens to my Helium Distribution Contracts?
3195.35  What happens if I have an outstanding obligation to 
purchase refined helium under a Helium Distribution Contract?
3195.36  What happens if there is a shortage of helium?

[[Page 40179]]

3195.37  Under what circumstances can BLM terminate me as an 
authorized Federal helium supplier?

    Authority: 50 U.S.C. 167a.

General Information


Sec. 3195.10  What is the purpose of these regulations?

    The purpose of these regulations is to establish procedures 
governing the sale of helium to Federal agencies with major helium 
requirements. In order to sell a major helium requirement to a Federal 
agency, a Federal helium supplier must be under contract with BLM to 
purchase from BLM an amount of crude helium equivalent to the amount of 
refined helium it has supplied to the Federal agency.


Sec. 3195.11  What terms do I need to know to understand this subpart?

    To understand this subpart you need to know that:
    BLM means the Bureau of Land Management, Helium Operations, United 
States Department of the Interior, Amarillo, TX 79101.
    Buyer means anyone who is purchasing refined helium for a Federal 
agency or Federal agency contractor.
    Crude helium means a helium-gas mixture containing no more than 
ninety-nine (99) percent helium by volume.
    Federal agency means any department, independent establishment, 
commission, administration, foundation, authority, board, or bureau of 
the United States, or any corporation owned, controlled, or in which 
the United States has a proprietary interest, as these terms are used 
in 5 U.S.C. 101-105; 5 U.S.C. 551(1); or in 18 U.S.C. 6, but does not 
include Federal agency contractors.
    Federal helium supplier means a private helium merchant who has an 
In-Kind Crude Helium Sales Contract with an effective date of January 
1, 1998, or later, with BLM, and who has helium available for sale to:
    (1) Federal agencies; or
    (2) Private helium purchasers for use in Federal Government 
contracts.
    Helium means the element helium regardless of its physical state.
    Helium use location means the location where the major helium 
requirement will be used.
    Like (equivalent) amount of crude helium means the amount of crude 
helium measured at a pressure of 14.65 pounds per square inch absolute 
(psia) and a temperature of 60 degrees Fahrenheit (F), and rounded up 
to the nearest thousand (1,000) cubic feet, that is equivalent to a 
specified amount of refined helium measured at 14.7 psia and 70 degrees 
Fahrenheit.
    Major helium requirement means an estimated refined helium 
requirement greater than 200,000 standard cubic feet (scf) of gaseous 
helium or 7510 liters of liquid helium delivered to a helium use 
location per year.
    Standard cubic foot (SCF) means the volume of gaseous helium 
occupying one cubic foot at a pressure of 14.7 psia and a temperature 
of 70 degrees Fahrenheit. One liter of liquid helium is equivalent to 
26.63 scf of gaseous helium. One U.S. gallon of liquid helium is 
equivalent to 100.8 scf of gaseous helium. One pound of liquid helium 
is equivalent to 96.72 scf of gaseous helium. If BLM approves, you may 
use appropriate gaseous equivalents of volumes of helium mixtures 
different from these figures.


Sec. 3195.12  What is an In-Kind Crude Helium Sales Contract?

    It is a written contract between BLM and a Federal helium supplier 
requiring that whenever a supplier sells a major helium requirement to 
a Federal agency or its contractors, the supplier must purchase a like 
amount of crude helium from BLM.


Sec. 3195.13  If I am a Federal helium supplier or buyer, what reports 
must I submit to BLM?

    In accordance with the In-Kind Crude Helium Sales Contract:
    (a) Federal helium suppliers and buyers must report the total 
itemized quarterly deliveries of major helium requirements within 45 
calendar days after the end of the previous quarter (see Secs. 3195.26 
and 3195.33).
    (b) Federal helium suppliers must report the annual cumulative 
helium delivery report by November 15 of each year (see Sec. 3195.33).


Sec. 3195.14  How should I submit reports?

    You must submit reports by:
    (a) Mail;
    (b) Fax;
    (c) E-mail; or
    (d) Any other method to which you and BLM agree.

Federal Agency Requirements


Sec. 3195.20  Who must purchase major helium requirements from Federal 
helium suppliers?

    (a) The Department of Defense;
    (b) The National Aeronautics and Space Administration;
    (c) The Department of Energy;
    (d) Any other Federal agency; and
    (e) Federal agency contractors.


Sec. 3195.21  When must I use an authorized Federal helium supplier?

    You must use an authorized Federal helium supplier for any major 
helium requirement.


Sec. 3195.22  When must my contractors or subcontractors use an 
authorized Federal helium supplier?

    An authorized Federal helium supplier must be used whenever the 
contractor or subcontractor uses a major helium requirement in 
performance of a Federal contract.


Sec. 3195.23  How do I get a list of authorized Federal helium 
suppliers?

    You must request the list from BLM in writing.


Sec. 3195.24  What must I do before contacting a non-Federal helium 
supplier for my helium needs?

    You must make an initial determination about the annual helium 
demand for each helium use location for the expected life of the 
purchase order/contract. If the annual helium demand for a helium use 
location is a major helium requirement, it must be supplied by a 
Federal helium supplier.


Sec. 3195.25  What information must be in my purchase order/contract 
for a major helium requirement?

    A purchase order/contract must state each helium use location and 
whether the anticipated demand exceeds the amount defined as a major 
helium requirement at each helium use location.


Sec. 3195.26  What information must I report to BLM?

    In accordance with the In-Kind Crude Helium Sales Contract, within 
45 days of the end of each quarter, you must report to BLM (see 
Sec. 3195.13) the following:
    (a) The name of the company from which you purchased a major helium 
requirement;
    (b) The amount of helium you purchased and the date it was 
delivered; and
    (c) The helium use location.


Sec. 3195.27  What do I do if my helium requirement becomes a major 
helium requirement after the initial determination has been made?

    As soon as you determine that your forecasted demand of helium for 
a particular helium use location will become a major helium 
requirement, you must purchase your helium (for that helium use 
location) from an authorized Federal helium supplier for the remainder 
of the purchase order/contract as a major helium requirement.

Federal Helium Supplier Requirements


Sec. 3195.30  How do I apply to become a Federal helium supplier?

    In order to become a Federal helium supplier,

[[Page 40180]]

    (a) You must be a private helium merchant and demonstrate to BLM in 
writing that you have:
    (1) Adequate financial resources to pay for BLM helium and helium 
related services;
    (2) Adequate facilities and equipment to meet delivery schedules 
and quality standards required by Federal helium buyers; and
    (3) A satisfactory record of performance in the distribution of 
helium or other compressed gases.
    (b) You must fill out and execute BLM's In-Kind Crude Helium Sales 
Contract and submit it to BLM for approval.


Sec. 3195.31  What are the general terms of an In-Kind Crude Helium 
Sales Contract?

    A BLM helium In-Kind Crude Helium Sales Contract requires you to:
    (a) Deliver helium to a Federal agency specified helium use 
location;
    (b) Purchase crude helium from BLM equivalent to the amount of 
refined helium you sold to Federal agencies;
    (c) Report to BLM the amount of refined helium you sold to Federal 
agencies; and
    (d) Maintain records for inspection and audit by BLM in accordance 
with 30 U.S.C. 17.13(b).


Sec. 3195.32  Where can I find a list of Federal agencies that use 
helium?

    You must request from BLM in writing the list of Federal agencies 
that have purchased a major helium requirement during the past year.


Sec. 3195.33  What information must I report to BLM?

    (a) In accordance with the In-Kind Crude Helium Sales Contract, 
within 45 days of the end of each quarter, you must report to BLM (see 
Sec. 3195.13) the following:
    (1) The name of the Federal agency to which you supplied helium;
    (2) The amount of helium you delivered and the date you delivered 
it; and
    (3) The helium use location.
    (b) In accordance with the In-Kind Crude Helium Sales Contract, by 
November 15 of each year, you must report to BLM (see Sec. 3195.13) the 
following:
    (1) The name of the Federal agency to which you supplied helium; 
and
    (2) The cumulative amount of helium delivered during the previous 
fiscal year for each Federal agency.


Sec. 3195.34  What happens to my Helium Distribution Contracts?

    Helium Distribution Contracts between BLM and a helium distributor 
have been terminated. You must execute an In-Kind Crude Helium Sales 
Contract before you sell a major helium requirement to a Federal 
agency.


Sec. 3195.35  What happens if I have an outstanding obligation to 
purchase refined helium under a Helium Distribution Contract?

    If you were obligated to buy refined helium under a Helium 
Distribution Contract, your In-Kind Crude Helium Sales Contract 
requires you to buy an equivalent amount of crude helium in lieu of 
that obligation.


Sec. 3195.36  What happens if there is a shortage of helium?

    If there is a shortage of helium (either company specific or 
industry wide) which would cause you to defer helium shipments to a 
buyer, you must, in accordance with your In-Kind Crude Helium Sales 
Contract, give the United States priority over non-government 
requirements.


Sec. 3195.37  Under what circumstances can BLM terminate me as an 
authorized Federal helium supplier?

    BLM has the authority to terminate you as an authorized Federal 
helium supplier for:
    (a) Nonpayment for a like amount of crude helium;
    (b) Not reporting helium deliveries according to your In-Kind Crude 
Helium Sales Contract and these regulations;
    (c) Not taking delivery of a purchase of a like amount of crude 
helium not covered by a valid helium storage contract; or
    (d) Any other breach of contract or violation of these regulations.

[FR Doc. 98-20003 Filed 7-27-98; 8:45 am]
BILLING CODE 4310-84-P


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