I 
113TH CONGRESS 
1ST SESSION 
H. R. 527 
To amend the Helium Act to complete the privatization of the Federal 
helium reserve in a competitive market fashion that ensures stability 
in the helium markets while protecting the interests of American tax-
payers, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 6, 2013 
Mr. HASTINGS of Washington (for himself, Mr. MARKEY, Mr. FLORES, and 
Mr. HOLT) introduced the following bill; which was referred to the Com-
mittee on Natural Resources 
A BILL 
To amend the Helium Act to complete the privatization of 
the Federal helium reserve in a competitive market fash-
ion that ensures stability in the helium markets while 
protecting the interests of American taxpayers, 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 ‘‘Responsible Helium 
Administration and Stewardship Act’’. 
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carry out this subsection with minimum market dis-
ruption. 
‘‘(2) MINIMUM QUANTITY.—The Secretary shall 
offer for sale during each fiscal year under para-
graph (1) a quantity of crude helium that is not less 
than the quantity of crude helium offered for sale by 
the Secretary during fiscal year 2012. 
‘‘(3) PURCHASE BY FEDERAL AGENCIES.—Fed-
eral agencies, and holders of 1 or more Federal re-
search grants, may purchase refined helium under 
this subsection for Federal, medical, and scientific 
uses from persons who have entered into enforceable 
contracts to purchase an equivalent quantity of 
crude helium from the Secretary. 
‘‘(4) PRICES AND DETERMINATIONS.—Sales of 
crude helium by the Secretary under this subsection 
shall be at prices established by the Secretary that 
shall not be less than the price in the last sale of 
crude helium from the Federal Helium Reserve be-
fore the date of enactment of the Responsible He-
lium Administration and Stewardship Act. 
‘‘(5) DURATION.—This subsection applies dur-
ing the period— 
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‘‘(A) beginning on the date of enactment of 
the Responsible Helium Administration and 
Stewardship Act; and 
‘‘(B) ending on the expiration of the one- 
year period following such date of enactment. 
‘‘(b) PHASE B: MAXIMIZING TOTAL RECOVERY OF 
HELIUM AND INCREASING RETURNS TO THE AMERICAN 
TAXPAYER.— 
‘‘(1) IN GENERAL.—The Secretary shall offer 
for sale at auction, as described in subsection (d), 
crude helium for Federal, medical, scientific, and 
commercial uses in such quantities, at such times, 
and under such conditions as the Secretary deter-
mines necessary— 
‘‘(A) to maximize total recovery and con-
servation of helium from the Federal Helium 
Reserve; 
‘‘(B) to manage crude helium sales accord-
ing to the ability of the Secretary to extract and 
produce helium from the Federal Helium Re-
serve; 
‘‘(C) to respond to helium market supply 
and demand and minimize market disruption; 
and 
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‘‘(D) to give priority to meeting the helium 
demand of Federal users in the event of any 
disruption to the Federal Helium Reserve. 
‘‘(2) PURCHASE
BY
DESIGNATED
FEDERAL 
AGENCIES
AND
GRANTEES.—Any Federal agency, 
and any holder of 1 or more Federal research 
grants, may purchase refined helium for Federal, 
medical, research, and scientific uses from an eligi-
ble person, at the minimum auction price or other 
price designated by the Secretary. The Secretary 
shall then provide an equivalent volume of crude he-
lium to the eligible person as if the eligible person 
was the successful bidder for the helium at auction. 
‘‘(3) ELIGIBLE PERSON.—For purposes of this 
subsection, the term ‘eligible person’ means a helium 
distributer who is registered as such with the Sec-
retary. 
‘‘(4) DURATION.—This subsection applies dur-
ing the period— 
‘‘(A) beginning on the expiration of the pe-
riod described in subsection (a)(5)(B); and 
‘‘(B) ending on the date on which the vol-
ume of recoverable crude helium at the Federal 
Helium Reserve (other than privately owned 
quantities of crude helium stored temporarily at 
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the Federal Helium Reserve under section 5 
and this section) is 3,000,000,000 standard 
cubic feet. 
‘‘(c) PHASE C: ACCESS FOR FEDERAL USERS.— 
‘‘(1) IN GENERAL.—The Secretary may offer 
for sale crude helium for Federal uses (including 
medical and scientific uses) in such quantities, at 
such times, and under such conditions as the Sec-
retary determines necessary to carry out this sub-
section. 
‘‘(2) PURCHASE BY FEDERAL AGENCIES AND 
GRANTEES.—Federal agencies, and holders of 1 or 
more Federal research grants related to helium or 
the use of helium, may purchase refined helium 
under this subsection for Federal uses (including 
medical and scientific uses) from persons who have 
entered into enforceable contracts to purchase an 
equivalent quantity of crude helium from the Sec-
retary. 
‘‘(3) EFFECTIVE
DATE.—This subsection ap-
plies beginning on the day after the date described 
in subsection (b)(4)(B). 
‘‘(d) AUCTION AND MINIMUM PRICES DETERMINA-
TION.— 
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‘‘(1) IN GENERAL.—Sales of crude helium by 
the Secretary under subsection (b) shall be con-
ducted at auction under the conditions described in 
this section and at no less than the minimum price 
established by the Secretary. 
‘‘(2) AUCTION.—The Secretary shall conduct 
auctions of crude helium in the Federal Helium Re-
serve as soon as practical but no later than begin-
ning 180 days after the first day of the period de-
scribed in subsection (b)(4), under the following con-
ditions: 
‘‘(A) 60 percent of the volume of crude he-
lium made available in each auction shall be 
made available to entities that can show the 
Secretary they have either adequate refining ca-
pacity or tolling agreements for refining in 
place, in accordance with the conditions set 
forth in paragraph (3). 
‘‘(B) 20 percent of the volume of crude he-
lium made available in each auction shall be 
made available to any bidder, in accordance 
with the conditions set forth in paragraph (3). 
‘‘(C) In each auction after the first auction 
under this subsection after the date of the en-
actment of the Responsible Helium Administra-
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tion and Stewardship Act, the Secretary shall 
make available an additional volume of crude 
helium, in an amount equivalent to the amount 
made available under subparagraph (B) that 
the Secretary certifies can be refined, through 
tolling agreements or otherwise. Of such addi-
tional volume, a person may not acquire in the 
auction a volume in excess of the volume they 
demonstrate to the Secretary they have the 
ability to refine through either refining capacity 
or tolling agreements. 
‘‘(D) The Secretary shall conduct such 
auctions at such times as the Secretary deter-
mines necessary to ensure a reliable supply of 
helium and a fair return to taxpayers, but no 
less frequently than 2 times each fiscal year. 
‘‘(E) For purposes of the first auction 
under this subsection after the date of the en-
actment of the Responsible Helium Administra-
tion and Stewardship Act, the Secretary may 
revise the percentage under subparagraph (A) 
so as to make available for auction 100 percent 
of the volume of crude helium intended to be of-
fered. 
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‘‘(F) The Secretary may adjust the per-
centages and amount specified in subpara-
graphs (A) through (C), respectively, in any 
auction if the Secretary determines the adjust-
ment is necessary to— 
‘‘(i) respond to market supply and de-
mand and minimize market disruption; or 
‘‘(ii) increase participation in helium 
auctions. 
‘‘(G) Notwithstanding any other provision 
of this subsection, for each fiscal year, the Sec-
retary may not offer a total volume of crude he-
lium for sale under this subsection that exceeds 
the lesser of— 
‘‘(i) the projected maximum total pro-
duction capacity of the Federal Helium 
Reserve during that fiscal year; and 
‘‘(ii) the maximum refining capacity 
of persons connected by pipeline to the 
Federal Helium Reserve during that fiscal 
year. 
‘‘(3) AUCTION CONDITIONS.— 
‘‘(A) BIDDING
METHOD.—The Secretary 
shall conduct each auction by sealed bid for 
predetermined volume lots, unless the Secretary 
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determines that an alternative bidding method 
may result in more revenue to the Federal Gov-
ernment. 
‘‘(B) BIDDER QUALIFICATIONS AND LIM-
ITS.—In carrying out an auction under sub-
section (b), the Secretary— 
‘‘(i) may accept bids only from per-
sons the Secretary determines are seeking 
to purchase helium for their own use, for 
refining, or for delivery to users; and 
‘‘(ii) may not award to a person more 
than 30 percent of the total volume of 
crude helium offered in that auction, ex-
cept that the Secretary may adjust such 
limitation based on the number of bidders 
in the auction. 
‘‘(C) STORAGE FEES.—In each auction the 
Secretary— 
‘‘(i) shall begin charging each winning 
bidder a storage fee for crude helium pur-
chased by the bidder that remains in the 
Federal Helium Reserve, beginning on the 
date the Secretary receives payment of the 
purchase price for the helium; and 
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‘‘(ii) beginning 270 days after the 
date of the auction, shall charge increasing 
storage fees that will encourage the with-
drawal of the helium no later than 2 years 
after the date of the auction. 
‘‘(4) 
DETERMINATION
OF
MINIMUM
SALE 
PRICE.—The Secretary shall make a determination 
of the minimum sale price for sales described in 
paragraph (1) using— 
‘‘(A) a confidential survey of qualifying do-
mestic helium transactions to which any holder 
of a contract with the Secretary for the accept-
ance, storage, and redelivery of crude helium in 
the Cliffside Gas Field helium storage reservoir 
is a party; 
‘‘(B) current market crude helium prices 
as represented by the sale price at any auction 
held by the Secretary in the preceding 2 years; 
‘‘(C) the volume-weighted average cost 
among helium refiners, producers, and lique-
fiers, in dollars per thousand cubic feet, of con-
verting gaseous crude helium into bulk liquid 
helium; and 
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‘‘(D) the additional layer of cost and profit 
associated with the sale or resale of bulk liquid 
helium. 
‘‘(5) AUTHORITY
OF
SECRETARY.—The Sec-
retary shall— 
‘‘(A) require all persons that are parties to 
a contract with the Secretary for the accept-
ance, storage, and redelivery of crude helium to 
disclose, on a strictly confidential basis in dol-
lars per thousand cubic feet, the weighted aver-
age price of all crude helium and bulk liquid he-
lium purchased, sold, or processed by the per-
sons in all qualifying domestic helium trans-
actions during the fiscal year; 
‘‘(B) appoint a qualified independent third 
party to perform data collection and analysis 
for the purposes of the survey under paragraph 
(4)(A); and 
‘‘(C) adopt such administrative policies 
and procedures as the Secretary considers nec-
essary and reasonable to ensure robust protec-
tion of the confidentiality of data submitted by 
private persons. 
‘‘(6) CHANGES IN MINIMUM PRICE.—If the Sec-
retary believes that the minimum price as deter-
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mined by the survey under paragraph (4)(A) may 
not be reflective of the current market value of he-
lium, or if a higher minimum price may result in 
greater conservation of the Federal crude helium re-
source, the Secretary may change the minimum 
price charged for crude helium sold under this sec-
tion by up to 10 percent of the price determined 
under paragraph (4). If at any sale in which the 
minimum price is increased under this paragraph all 
crude helium offered is sold at the increased price, 
the Secretary shall consider that increased price to 
be the minimum price determined under paragraph 
(4) for all future sales of crude helium under this 
section unless that price is further changed in ac-
cordance with this paragraph. 
‘‘(7) ENSURING FAIR ACTS AND PRACTICES.— 
The Secretary may issue such rules and regulations 
with respect to bidding, transfer, and refining of he-
lium produced from or held in the Federal Helium 
Reserve as may be necessary to prevent unfair acts 
and practices. 
‘‘(8) AUCTION RECORDS.— 
‘‘(A) FURNISHING RECORDS.—Every per-
son participating in auctions of helium from the 
Federal Helium Reserve shall furnish to the 
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Secretary on request such records of trans-
actions in helium auctions as the Secretary may 
require to reconstruct bidding or trading in the 
course of a particular inquiry or investigation 
being conducted by the Secretary for enforce-
ment or surveillance purposes. In requiring in-
formation pursuant to this paragraph, the Sec-
retary shall specify the information required, 
the period for which it is required, and the time 
and date on which the information must be fur-
nished. 
‘‘(B) REPORTING
REQUIREMENTS.—The 
Secretary may issue rules to require persons 
participating in helium auctions to file such re-
ports as the Secretary determines to be nec-
essary for purposes of this Act. 
‘‘(C) RECORDKEEPING
REQUIREMENTS.— 
Rules under this subsection may require speci-
fied persons to make and keep for prescribed 
periods such records as the Secretary deter-
mines are necessary or appropriate to ensure 
that such persons can comply with reporting re-
quirements under this subsection. 
‘‘(D) LIMITATION ON DISCLOSURE OF IN-
FORMATION.—Notwithstanding any other provi-
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sion of law, the Secretary shall not be compelled 
to disclose any proprietary information required 
to be kept or reported under this subsection. 
Nothing in this subsection authorizes the Sec-
retary to withhold information from Congress, 
prevents the Secretary from complying with a 
request for information from any other Federal 
department or agency requesting information 
for purposes within the scope of its jurisdiction, 
or prevents the Secretary from complying with 
an order of a court of the United States in an 
action brought by the United States or by the 
Secretary. 
‘‘(e) HELIUM PRODUCTION FUND.— 
‘‘(1) IN GENERAL.—All amounts received under 
this Act shall be credited to the Helium Production 
Fund, which shall be available without fiscal year 
limitation for purposes considered necessary by the 
Secretary to carry out this subsection. 
‘‘(2) ADMINISTRATIVE EXPENSES.—Amounts in 
the Helium Production Fund may be used by the 
Secretary to conduct helium auctions and otherwise 
administer this Act. 
‘‘(3) REPAYMENT AMOUNTS.—During the pe-
riod described in subsection (a)(4), amounts in the 
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Helium Production Fund in excess of amounts the 
Secretary considers necessary to conduct helium auc-
tions and otherwise administer this Act shall be paid 
to the general fund of the Treasury and credited 
against all amounts required to be repaid to the 
United States under this Act as of October 1, 1995. 
‘‘(4) CAPITAL
INVESTMENTS
AND
MAINTE-
NANCE.—Amounts in the Helium Production Fund 
in excess of amounts the Secretary considers nec-
essary to carry out paragraphs (1) through (3) may 
be used to fund the following capital investments in 
upgrades and maintenance at the Federal Helium 
reserve: 
‘‘(A) Wellhead maintenance at the Cliffside 
Gas Field helium storage reservoir. 
‘‘(B) Capital investments in maintenance 
and upgrades of facilities that pressurize the 
Cliffside Gas Field helium storage reservoir. 
‘‘(C) Capital investments in maintenance 
and upgrades of equipment related to the stor-
age, withdrawal, transportation, purification, 
and sale of crude helium at the Cliffside Gas 
Field helium storage reservoir. 
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‘‘(D) Any other scheduled or unscheduled 
maintenance of the Cliffside Gas Field helium 
storage reservoir and helium pipeline. 
‘‘(5) EXCESS FUNDS.—Amounts in the Helium 
Production Fund in excess of amounts the Secretary 
considers necessary to carry out paragraphs (1) 
through (4) shall be paid to the general fund of the 
Treasury. 
‘‘(f) EXTRACTION OF HELIUM FROM DEPOSITS ON 
FEDERAL LAND.—All amounts received by the Secretary 
from the sale or disposition of crude helium on Federal 
land shall be paid to the general fund of the Treasury and 
credited against all amounts required to be repaid to the 
United States under this Act as of October 1, 1995.’’. 
(b) REPORT.—Not later than 1 year after the date 
of enactment of this Act and annually thereafter, the Sec-
retary of the Interior shall submit to the Committee on 
Natural Resources of the House of Representatives and 
the Committee on Energy and Natural Resources of the 
Senate a report describing all expenditures by the Bureau 
of Land Management for operation and maintenance of 
the Federal Helium Reserve (as that term is defined in 
the amendment made by section 2(3)), investments made 
by the Bureau for such reserve, and scheduled or unsched-
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uled maintenance of such reserve or its infrastructure to 
be conducted by the Bureau. 
SEC. 4. BLM TRANSPARENCY REQUIREMENTS TO FACILI-
TATE MARKET AND SUPPLY CHAIN INFORMA-
TION. 
The Helium Act (50 U.S.C. 167 et seq.) is further 
amended by redesignating sections 15 through 17 as sec-
tions 17 through 19, and by inserting after section 14 the 
following: 
‘‘SEC. 15. PIPELINE ACCESS. 
‘‘(a) ANNUAL
REPORT.—The Secretary, acting 
through the Bureau of Land Management, shall make 
available on the Internet the current refining capacity on 
the Federal Helium Reserve pipeline, including— 
‘‘(1) refinery capacity and future capacity esti-
mates; 
‘‘(2) ownership of federally auctioned helium 
held in the Federal Helium Reserve; 
‘‘(3) volume of helium delivered to individual 
buyers through such pipeline; 
‘‘(4) pipeline pressure constraints; and 
‘‘(5) other factors that will increase trans-
parency for persons interested in entering refining 
contracts with existing refiners. 
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‘‘(b) NEW REFINING CAPACITY.—The Secretary shall 
take any applications for new refining capacity on the 
Federal Helium Reserve pipeline. To create more competi-
tion, any new refining capacity added to the Federal He-
lium Reserve pipeline system shall be granted access to 
crude helium that is equal to the access provided to exist-
ing refining facilities. 
‘‘(c) ACCESS
BY PURCHASERS
OF HELIUM.—The 
Secretary shall manage Federal Helium Reserve pipeline 
access in a competitive manner to ensure that all persons 
purchasing helium have equal access to timing and deliv-
ery of the helium, subject to the capacity of the system. 
‘‘(d) SCHEDULING
DELIVERIES.—The Secretary 
shall, to the greatest extent practicable, make the sched-
uling of crude helium deliveries through the Federal He-
lium Reserve pipeline open and transparent to all pur-
chasers of helium through the auction process, and to the 
public if the Secretary believes that it is in the national 
interest. 
‘‘SEC. 16. BLM REPORTING REQUIREMENTS TO FACILITATE 
SUPPLY CHAIN INFORMATION. 
‘‘(a) IN GENERAL.—In order to provide the market 
with appropriate and timely information affecting the he-
lium resource, the Director of the Bureau of Land Man-
agement shall establish, no later than 90 days after the 
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