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 Department of the Interior
 AGENCY: Bureau of Land Management (BLM), Interior.
 ACTION: Notice implementing fourth conservation helium sale.
 SUMMARY: The purpose of this action is to continue implementation of the terms of the Helium Privatization Act (HPA) of 1996 dealing with the disposal of the Conservation Helium Reserve. The HPA requires the Department of the Interior (DOI) to 
                        *offer for sale*, beginning no later than 2005, a portion of the Conservation Helium stored underground at the Cliffside Field, north of Amarillo, Texas. The DOI, in consultation with the private helium industry, has determined that private companies, with refining capacity along the crude helium pipeline, will need a supply of helium in excess of that available from their own storage accounts and that available from crude helium extractors in the region. Given the current market, Conservation Helium sold in this sale will cause minimal market disruption. This sale will be conducted in four parts, with one-fourth of the annual sale amount offered each quarter of Fiscal Year 2006.
 DATES: Submit bids for the first quarter sale and other documentation as required in Notice on or before November 7, 2005. Bids for the remaining three quarters must be submitted according to the following schedule: Second Quarter—December 1, 2005, through December 31, 2005.
                    Third Quarter—March 1, 2006, through March 31, 2006.
                    Fourth Quarter—June 1, 2006, through June 30, 2006.
 ADDRESSES: You may submit your bids and other documentation as required in this Notice to the BLM, Amarillo Field Office, 801 S. Fillmore, Suite 500, Amarillo, TX 79101-3545, Attention: Crude Helium Sales Analyst.
 FOR FURTHER INFORMATION CONTACT: Connie H. Neely, (806) 356-1027. Individuals who use a telecommunications device for the deaf may call the Federal Information Relay Service at 1-800-877-8339 between 8 a.m. and 8 p.m., eastern time, Monday through Friday.


SUPPLEMENTARY INFORMATION: 1.01 What Is the Purpose of the Sale? The purpose of this sale is to continue implementation of the terms of the HPA of 1996 dealing with the disposal of the Conservation Helium Reserve. The HPA requires the DOI to 
                    *offer for sale*, beginning no later than 2005, a portion of the Conservation Helium stored underground at the Cliffside Field, north of Amarillo, Texas. The DOI, in consultation with the private helium industry, has determined that private companies, with refining capacity along the crude helium pipeline, will need a supply of helium in excess of that available from their own storage accounts and that available from crude helium extractors in the region. This is the fourth in a series of sales that the Department will conduct to dispose of the Conservation Helium stored underground at the Cliffside Field. The annual sales are being conducted in a manner intended to prevent pure helium market disruptions from occurring to end users; shortages of crude helium to pure helium refiners; and an oversupply of crude helium on the market for crude helium extractors. Subsequent sales may be adjusted as needed. 1.02 What Terms Do I Need To Know To Understand This Sale? *Allocated Sale*
                    —That portion of the annual sale volume of Conservation Helium that will be set aside for purchase by the Crude Helium Refiners. *Annual Conservation Helium Sale*
                    —The sale of a certain volume of Conservation Helium to private entities conducted annually beginning no later than 2005. *Bidder*
                    —Any entity or person who submits a request for purchase of a volume of the Annual Conservation Helium Sale and has met the qualifications contained in part 1.05 in this Notice. *BLM*
                    —The Bureau of Land Management. *Conservation Helium*
                    —The crude helium purchased by the U.S. Government under the authority of the Helium Act of 1960 and stored underground in the Cliffside Field. *Crude Helium*
                    —A partially refined gas containing about 70 percent helium and 30 percent nitrogen. However, the helium concentration may vary from 50 to 95 percent. *Crude Helium Refiners*
                    —Those entities with a capability of refining crude helium and having a connection point on the crude helium pipeline and a valid Helium Storage Contract as of the date of a Conservation Helium Sale. *Excess Volumes*
                    —Allocated sale volumes not requested by the Crude Helium Refiners. *Helium Storage Contract*
                    —A contract between the BLM and a private entity allowing the private entity to store crude helium in underground storage at the Cliffside Field. 
                    ( print page 58465) *HPA*
                    —The Helium Privatization Act of 1996. *In-Kind Crude Helium*
                    —Conservation Helium purchased by private refiners in exchange for like amounts of pure helium sold to Federal agencies and their contractors in accordance with the HPA. *MMcf*
                    —One million cubic feet of gas measured at standard conditions of 14.65 pounds per square inch (psi) and 60° F. *Mcf*
                    —One thousand cubic feet of gas measured at standard conditions of 14.65 psi and 60° F. *Non-Allocated Sale*
                    —That portion of the annual sale volume of Conservation Helium that will be offered to all qualified bidders. 1.03 What Volume of Conservation Helium Will Be Offered in the Fiscal Year 2006 Annual Conservation Helium Sale? The volume of helium available for this sale is 2,100 MMcf and will be offered in four equal quarterly increments of 525 MMcf. In accordance with the HPA, this volume was determined by dividing the total volume of stored Conservation Helium less the statutory required reservation of 600 MMcf for Government purposes less estimated In-Kind Crude Helium transfers for 12 years divided by 12. This volume represents a straight-line basis for offering the helium for sale in accordance with the HPA. Any helium not sold during the First, Second, or Third Quarter Sales will be carried over to the succeeding Quarter and reallocated according to the formula in Section 2.03. Any helium remaining unsold after the Fourth Quarter sale will be held in reserve for possible future sales. 1.04 At What Price Will the Conservation Helium Be Sold? The Conservation Helium will be sold at the same price as In-Kind Crude Helium. In accordance with the HPA, this price covers helium debt repayment and its escalation by the Consumer Price Index since the helium debt was frozen in 1995. Additionally, the price includes administrative and storage costs associated with the Conservation Helium calculated on a per Mcf basis. For Fiscal Year 2006 that price is $56.50 per Mcf. 1.05 Am I Qualified to Purchase Conservation Helium at This Sale? Any person, firm, partnership, joint stock association, corporation, or other domestic or foreign organization operating partially or wholly within the United States who meets one or more of the following requirements is qualified to submit a purchase request: Operates a helium purification plant within the U.S.; or
                Operates a crude helium extraction plant within the U.S.; or
                Is a wholesaler of pure helium or purchases helium for resale within the U.S.; or
                Is a consumer of pure helium within the U.S.; or
                Has an agreement with a helium refiner to provide its helium processing needs, commonly referred to as a “tolling agreement.” All entities requesting participation in the Non-Allocated Sale must submit proof of being qualified to purchase Conservation Helium and must either have a Helium Storage Contract with the BLM or have a third-party agreement in place with a valid storage contract holder so that all Conservation Helium sold to the bidder will be properly covered by a Helium Storage Contract (including associated storage charges). 1.06 When Will the Conservation Helium Be Offered for Sale? The BLM, Amarillo Field Office, will accept requests for purchase of Conservation Helium for the First Quarter from final publication of this Notice until November 7, 2005. On the next business day after this Notice closes, requests to purchase Conservation Helium for the First Quarter will be opened and evaluated. Upon evaluation, volumes of this Conservation Helium Sale will be apportioned and allocated according to the Sale rules described in this Notice. Bids for the remaining three quarters must be submitted according to the following schedule: Second Quarter—December 1, 2005, through December 31, 2005.
                Third Quarter—March 1, 2006, through March 31, 2006.
                Fourth Quarter—June 1, 2006, through June 30, 2006. On the next business day after close of each quarterly Sale, requests to purchase Conservation Helium for each Quarter will be opened and evaluated. Upon evaluation, volumes of this Conservation Helium Sale will be apportioned and allocated according to the Sale rules described in this Notice. 1.07 What Must I Do To Submit a Request for Purchase? You must submit the following information to the BLM, Amarillo Field Office: Billing address information and name(s) of principle officers of the company.
                Proof of being an entity qualified to purchase Conservation Helium at this sale as defined in part 1.05 above. Documents such as invoices for sale or purchase of helium, Helium Storage Contracts, or other relevant documents may be submitted as proof of qualification.
                The amount (in Mcf) of Conservation Helium requested.
                Certified check or money order in the amount of $1,000 made payable to the BLM. This money will be used to cover administrative expenses to conduct this sale and is nonrefundable.
                The above information and nonrefundable $1,000 fee only needs to be submitted the first time a prospective purchaser submits a bid. Prospective purchasers are not required to submit bids every quarter and may participate in only the quarterly sales they deem appropriate. 1.08 Where Do I Send My Request for Purchase? All requests for purchase of helium, as part of this Sale, must be sent by certified mail to: Bureau of Land Management, Amarillo Field Office, 801 S. Fillmore, Suite 500, Amarillo, TX 79101-3545, Attention: Crude Helium Sales Analyst. 1.09 When Do I Need To Submit Payment for Any Conservation Helium Sold to Me? Successful purchasers will submit payments according to the following schedule: First Quarter request by October 30, 2005, or 30 days after notification of the award volumes, whichever is later.
                Second Quarter Request by February 6, 2006.
                Third Quarter Request by May 8, 2006.
                Fourth Quarter Request by August 7, 2006. Conservation Helium will not be transferred to the purchaser's storage account until payment is received for that portion. 1.10 To Whom Do I Make Payments for Awarded Conservation Helium Volumes? Make checks payable to the BLM at the address listed in part 1.08 in this Notice. 1.11 What Are the Penalties for Not Paying for the Conservation Helium in a Timely Manner? If BLM does not receive payment for a Quarterly Sale by the due dates in Section 1.09, the purchaser will forfeit its quarterly purchase unless the purchaser can show that payment was late through no fault of its own. However, penalty interest will be 
                    ( print page 58466)
                    assessed in accordance with the Debt Collection Act of 1982, 31 U.S.C. 951-953. 1.12 How Will I Know if I Have Been Successful in My Purchase Request? Successful purchasers will be notified in writing by BLM no later than 1 week after the bid opening for each Quarter of the awarded volumes and payment schedule. Allocated Sale 2.01 What Is the Allocated Sale? That portion of the annual sale volume of Conservation Helium that will be set aside for purchase by the Crude Helium Refiners. 2.02 Who Will Be Allowed to Purchase Conservation Helium in the Allocated Sale? Only those who meet the definition of Crude Helium Refiners as defined in part 1.02 in this Notice. 2.03 What Volume of Conservation Helium Is Available in the Allocated Sale? The amount available will be 90 percent of the total volume of the Annual Conservation Helium Sale—1,890 MMcf, or 472,500 Mcf per quarter 2.04 How Will the Conservation Helium Be Apportioned Among the Refiners? The apportionment to each Crude Helium Refiner will be based on its percentage share (rounded to the nearest 
                    1/10
                     of 1 percent) of the total refining capacity as of October 1, 2000, connected to the BLM crude helium pipeline. 2.05 What Will Happen if a Refiner or Refiners Request an Amount Other Than Their Share of What Is Offered for Sale? If one or more refiners request less than their allocated share, any other refiner(s) that requested more than their share will be allowed to purchase the excess volume based on proportionate shares of remaining refining capacities.
                Requests by the Crude Helium Refiners that are in excess of the amount available above will be carried over to the Non-Allocated Sale and considered a separate bid under the Non-Allocated Sale rules. 2.06 What Will Happen if the Total Amount Requested by the Crude Helium Refiners Is Less Than the 472,500 Mcf Offered in the Quarterly Allocated Sale? Any excess volume not sold to the Crude Helium Refiners will be added to the Non-Allocated Sale volume. 2.07 Do You Have a Hypothetical Example of How an Allocated Sale Would Be Conducted? 525,000 Mcf available for total sale with 90 percent available for Allocated Sale (472,500 Mcf). Bidder—allocated sale
Installed refining 
                             capacity
Refiner bid volume*
Allocated volume*
Excess volume requested*
Proration percent
Excess allocated*
Total allocated*
Carryover to non-allocated sale*Refiner A
10%
56,250
47,250
9,000
20%
9,000
56,250
0Refiner B
50%
187,500
187,500
0
0%
0
187,500
0Refiner C
40%
246,250
189,000
57,250
80%
39,750
228,750
17,500Total
100%
490,000
423,750
66,250
100%
48,750
472,500
0*All volumes in Mcf.
 After the initial allocation, Refiner B has received all requested. However, 66,250 Mcf is deemed excess of the total in the first iteration of the Allocated Sale and reallocated to the two remaining refiners based on the refining capacity between them. With the reallocation, Refiner A gets all requested, but Refiner C is still short by 18,250 Mcf. Additionally, 750 Mcf remains unallocated and without any other Refiners is awarded to Refiner C, who now has a remaining request of 17,500 Mcf that is posted into the Non-Allocated Sale. All percentages used in the calculation will be rounded to the nearest 
                    1/10
                     of 1 percent. All volumes calculated will be rounded to the nearest 1 Mcf. Non-Allocated Sale 3.01 What Is the Non-Allocated Sale? That portion of the annual sale volume of Conservation Helium that will be offered to all qualified bidders. 3.02 What Is the Minimum Volume I Can Request? The minimum request is 5 MMcf. 3.03 What Volume of Conservation Helium Is Available for the Non-Allocated Sale? The total volume of Conservation Helium available for the non-allocated portion of the quarterly Sale is 52,500 Mcf per quarter plus any additional helium that is not sold as part of the Allocated Sale and helium carried-over from previous quarters as described in Sec 1.03. 3.04 How Is the Ratio of Allocated to Non-Allocated Sale Volumes Determined? According to the terms of the HPA, the BLM must conduct the Annual Conservation Helium Sales in a manner not to cause undue helium market disruptions; and therefore, the majority of the Conservation Helium is being offered as part of the Allocated Sale. Currently, 
                    *the Crude Helium Refiners have refining capacity roughly double what can be supplied*
                     through the Annual Conservation Helium Sales. Although there are other crude helium supplies available to the Crude Helium Refiners, these supplies are declining each year. The BLM must be sensitive to the Crude Helium Refiners requirements while maintaining a balance with other helium industry requirements. The exact ratio of Allocated to Non-Allocated Sale volumes may change for subsequent Annual Conservation Helium Sales. 3.05 How Will the Non-Allocated Conservation Helium Be Apportioned Among the Bidders? The Conservation Helium will be apportioned equally in 1 Mcf increments among the bidders with no prospective bidder receiving more than its request. 3.06 What Will Happen if the Bidders Request More Than What Is Made Available for Sale in Part 3.03 of this Notice? If one or more bidders request less than their apportioned amount, any other bidder(s) that requested more than its apportioned amount will be allowed to purchase equally apportioned amounts of the remaining volume available for this sale.
                If all bidders request more than their apportioned amount, each bidder will receive its apportioned amount as determined in part 3.05 in this Notice.( print page 58467) 3.07 What Will Happen if a Bidder Requests Less Than Its Apportioned Amount? Any bidder requesting less than the calculated apportioned volume will receive the amount of its request and amounts remaining will be reapportioned in accordance with part 3.05 in this Notice. 3.08 Do You Have a Hypothetical Example of How a Non-Allocated Sale Would Be Conducted? 525 MMcf available for total sale with 10 percent available for Non-Allocated Sale (52,500 Mcf). Bidder—non-allocated sale
Bid volume*
Appointed volume*
Excess volume requested*
Proration percent
Excess apportioned*
Total apportioned*
Amount 
                             requested not received*Refiner C
17,500
13,125
4,375
50%
3,750
16,875
625Company D
25,000
13,125
11,875
50%
3,750
16,875
8,125Company E
12,500
12,500
0
0%
0
12,500
0Company F
6,250
6,250
0
0%
0
6,250
0Total
61,250
45,000
16,250
100%
7,500
52,500
8,750*All volumes in MMcf.
 In this example, three companies submit a request and there is a carryover amount from one of the Crude Helium Refiners in the Allocated Sale that is considered as a separate request. Each bidder would be apportioned 13,125 Mcf, (
                    *i.e.*, 52,500 Mcf of Non-Allocated Conservation Helium 4 ÷bidders = 13,250 Mcf per bidder). After the initial allocation, Companies E and F have received all the helium they requested. However, 7,500 Mcf is deemed excess in the first iteration of the Non-Allocated Sale and reallocated to the two remaining bidders. With the reallocation, Refiner C and Company D each receives an additional 3,750 Mcf. No more helium is available, Refiner C and Company D do not receive all that they requested, and the sale is complete. All percentages used in the calculation will be rounded to the nearest 
                    1/10M
                     of 1 percent. All volumes calculated will be rounded to the nearest 1 Mcf. Linda S.C. Rundell, State Director, New Mexico.


[FR Doc. 05-20083 Filed 10-5-05; 8:45 am] BILLING CODE 9971-EK-P