II
Calendar No. 477
104TH CONGRESS
2D SESSION
H. R. 3008
[Report No. 104–302]
IN THE SENATE OF THE UNITED STATES
MAY 1, 1996
Received; read twice and referred to the Committee on Energy and Natural
Resources
JUNE 27, 1996
Reported by Mr. MURKOWSKI, with an amendment
[Insert the part printed in italic]
AN ACT
To amend the Helium Act to authorize the Secretary to
enter into agreements with private parties for the recov-
ery and disposal of helium on Federal lands, and for
other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Helium Privatization
Act of 1996’’.
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SEC. 2. AMENDMENT OF HELIUM ACT.
Except as otherwise expressly provided, whenever in
this Act an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a
section or other provision of the Helium Act (50 U.S.C.
167 to 167n).
SEC. 3. AUTHORITY OF SECRETARY.
Sections 3, 4, and 5 are amended to read as follows:
‘‘SEC. 3. AUTHORITY OF SECRETARY.
‘‘(a) EXTRACTION AND DISPOSAL OF HELIUM ON
FEDERAL LANDS.—
‘‘(1) IN GENERAL.—The Secretary may enter
into agreements with private parties for the recovery
and disposal of helium on Federal lands upon such
terms and conditions as the Secretary deems fair,
reasonable, and necessary.
‘‘(2) LEASEHOLD RIGHTS.—The Secretary may
grant leasehold rights to any such helium.
‘‘(3) LIMITATION.—The Secretary may not
enter into any agreement by which the Secretary
sells such helium other than to a private party with
whom the Secretary has an agreement for recovery
and disposal of helium.
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‘‘(4) REGULATIONS.—Agreements under para-
graph (1) may be subject to such regulations as may
be prescribed by the Secretary.
‘‘(5) EXISTING RIGHTS.—An agreement under
paragraph (1) shall be subject to any rights of any
affected Federal oil and gas lessee that may be in
existence prior to the date of the agreement.
‘‘(6) TERMS AND CONDITIONS.—An agreement
under paragraph (1) (and any extension or renewal
of an agreement) shall contain such terms and con-
ditions as the Secretary may consider appropriate.
‘‘(7) PRIOR
AGREEMENTS.—This subsection
shall not in any manner affect or diminish the rights
and obligations of the Secretary and private parties
under agreements to dispose of helium produced
from Federal lands in existence on the date of enact-
ment of the Helium Privatization Act of 1996 except
to the extent that such agreements are renewed or
extended after that date.
‘‘(b) STORAGE, TRANSPORTATION, AND SALE.—The
Secretary may store, transport, and sell helium only in ac-
cordance with this Act.
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‘‘SEC. 4. STORAGE, TRANSPORTATION, AND WITHDRAWAL
OF CRUDE HELIUM.
‘‘(a) STORAGE, TRANSPORTATION, 
AND
WITH-
DRAWAL.—The Secretary may store, transport, and with-
draw crude helium and maintain and operate crude helium
storage facilities, in existence on the date of enactment
of the Helium Privatization Act of 1996 at the Bureau
of Mines Cliffside Field, and related helium transportation
and withdrawal facilities.
‘‘(b) CESSATION OF PRODUCTION, REFINING, AND
MARKETING.—Not later than 18 months after the date
of enactment of the Helium Privatization Act of 1996, the
Secretary shall cease producing, refining, and marketing
refined helium and shall cease carrying out all other activi-
ties relating to helium which the Secretary was authorized
to carry out under this Act before the date of enactment
of the Helium Privatization Act of 1996, except activities
described in subsection (a).
‘‘(c) DISPOSAL OF FACILITIES.—
‘‘(1) IN GENERAL.—Subject to paragraph (5),
not later than 24 months after the cessation of ac-
tivities referred to in subsection (b) of this section,
the Secretary shall designate as excess property and
dispose of all facilities, equipment, and other real
and personal property, and all interests therein, held
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by the United States for the purpose of producing,
refining and marketing refined helium.
‘‘(2) APPLICABLE LAW.—The disposal of such
property shall be in accordance with the Federal
Property and Administrative Services Act of 1949.
‘‘(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 6(f).
‘‘(4) COSTS.—All costs associated with such
sale and disposal (including costs associated with
termination of personnel) and with the cessation of
activities under subsection (b) shall be paid from
amounts available in the helium production fund es-
tablished under section 6(f).
‘‘(5) EXCEPTION.—Paragraph (1) shall not
apply to any facilities, equipment, or other real or
personal property, or any interest therein, necessary
for the storage, transportation, and withdrawal of
crude helium or any equipment, facilities, or other
real or personal property, required to maintain the
purity, quality control, and quality assurance of
crude helium in the Bureau of Mines Cliffside Field.
‘‘(d) EXISTING CONTRACTS.—