Helium Privatization Act of 1996
PL 104-273 (H.R.4168), enacted 10/09/1996

PUBLIC LAW 104-273—OCT. 9, 1996 
110 STAT. 3315 
Public Law 104-273 
104th Congress 
An Act 
To amend the Helium Act to authorize the Secretary to enter into agreements 
n f
- q iQQfi 
with private parties for the recovery and disposal of helium on Federjd lands, 
——!: 
and for other piuposes. 
[H.R. 4168] 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled. 
Helium 
Privatization Act 
SECTION 1. SHORT TITLE. 
of 1996. 
This Act may be cited as the "Helium Privatization Act of 
1996". 
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 provision, the reference shall 
be considered to be made to a section or other provision of the 
Helium Act (50 U.S.C. 167-167n). 
SEC. 3. AUTHORITY OF SECRETARY. 
Sections 3, 4, and 5 are amended to read as follows: 
50 USC 
167a-167c. 
"SEC. 3. AUTHORITY OF SECRETARY. 
"(a) EXTRACTION AND DISPOSAL OF HELIUM ON FEDERAL 
LANDS.— 
"(1) IN GENERAL.—^The Secretary may enter into agree-
ments 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 lease-
hold 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 agree-
ment for recovery and disposal of helium. 
"(4) REGULATIONS.—^Agreements under paragraph (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 para-
graph (1) (and any extension or renewal of an agreement) 
shall contain such terms and conditions as the Secretary may 
consider appropriate. 
110 STAT. 3316 
PUBLIC LAW 104-273—OCT. 9, 1996 
"(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 enactment 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 accordance with this Act. 
"SEC. 4. STORAGE, TRANSPORTATION, AND WITHDRAWAL OF CRUDE 
HELIUM. 
"(a) 
STORAGE, 
TRANSPORTATION, 
AND WITHDRAWAL.—The 
Secretary may store, transport, and withdraw 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 transpor-
tation 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, refin-
ing, and marketing refined helium and shall cease carrying out 
all other activities 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 activities referred to in sub-
section (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 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 person-
nel) and with the cessation of activities under subsection (b) 
shall be paid fi-om amounts available in the helium production 
fund established 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.— 
"(1) IN GENERAL.—^All contracts that were entered into by 
any person with the Secretary for the purchase by the person 
fi*om the Secretary of refined helium and that are in effect 
PUBLIC LAW 104-273—OCT. 9, 1996 
110 STAT. 3317 
on the date of the enactment of the Hehum Privatization Act 
of 1996 shall remain in force and effect until the date on 
which the refining operations cease, as described in subsection 
(b). 
"(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 6(f). 
"SEC. 5. FEES FOR STORAGE, TRANSPORTATION AND WITHDRAWAL. 
"(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 Sec-
retary for the full costs of providing such storage, transportation, 
and withdrawal. 
"(b) TREATMENT.—^All fees received by the Secretary under sub-
section (a) shall be treated as moneys received under this Act 
for purposes of section 6(f).". 
SEC. 4. SALE OF CRUDE HELIUM. 
(a) Subsection 6(a) is amended by striking "from the Secretary" 
50 USC I67d. 
and inserting "from persons who have entered into enforceable 
contracts to purchase an equivalent amount of crude helium fi"om 
the Secretary". 
(b) Subsection 6(b) is amended— 
(1) by inserting "crude" before "helium"; and 
(2) by adding the following at the end: "Except as may 
be required by reason of subsection (a), sales of crude helium 
under this section shall be in amounts as the Secretary deter-
mines, in consultation with the helium industry, necessary 
to carry out this subsection with minimum market disruption.". 
(c) Subsection 6(c) is amended— 
(1) by inserting "crude" after "Sales of; and 
(2) by striking "together with interest as provided in this 
subsection" and all that follows through the end of the sub-
section and inserting "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— 
"(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 
"(2) adjusting the amount determined under paragraph 
(1) by the Consumer Price Index for years beginning after 
December 31, 1995.". 
(d) Subsection 6(d) is amended to read as follows: 
"(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).". 
(e) Subsection 6(e) is repealed. 
(f) Subsection 6(f) is amended— 
(1) by striking "(f)" and inserting "(e)(1)"; and 
(2) by adding the following at the end: 
"(2)(A) Within 7 days after the commencement of each fiscal 
year after the disposal of the facilities referred to in section 4(c), 
110 STAT. 3318 
PUBLIC LAW 104-273—OCT. 9, 1996 
all amounts in such fund in excess of $2,000,000 (or such lesser 
sum as the Secretary deems necessary to carry out this Act during 
such fiscal year) shall be paid to the Treasury and credited as 
provided in paragraph (1). 
"(B) On repa5m(ient of all amounts referred to in subsection 
(c), the fund established under this section shall be terminated 
and all moneys received under this Act shall be deposited in the 
general fund of the Treasury.". 
SEC. 5. ELIMINATION OF STOCKPILE. 
50 use I67f. 
Section 8 is amended to read as follows: 
"SEC. 8. ELIMINATION OF STOCKPILE. 
"(a) STOCKPILE SALES.— 
"(1) COMMENCEMENT.—Not later than January 1, 2005, 
the Secretary shall commence offering for sale crude helium 
from helium reserves owned by the United States in such 
amounts as would be necessary to dispose of all such helium 
reserves in excess of 600,000,000 cubic feet on a straight-
line basis between such date and January 1, 2015. 
"(2) TIMES OF SALE.—The sales shall be at such times 
during each year and in such lots as the Secretary determines, 
in consultation with the helium industry, to be necessary to 
carry out this subsection with minimum market disruption. 
"(3) PRICE.—The price for all sales under paragraph (1), 
as determined by the Secretary in consultation with the helium 
industry, shall be such price as will ensure repayment of the 
amounts required to be repaid to the Treasury under section 
6(c). 
"(b) DISCOVERY OF ADDITIONAL RESERVES.—The discovery of 
additional helium reserves shall not affect the duty of the Secretary 
to make sales of helium under subsection (a).". 
SEC. 6. LAND CONVEYANCE IN POTTER COUNTY, TEXAS. 
50 use 167j. 
Section 12 is amended to read as follows: 
"SEC. 
12. 
LAND 
CONVEYANCE 
IN 
POTTER 
COUNTY, 
TEXAS. 
"(a) IN GENERAL.—The Secretary of the Interior shall transfer 
all right, title, £ind interest of the United States in and to the 
parcel of land described in subsection (b) to the Texas Plains Girl 
Scout Council for consideration of $1, reserving to the United States 
such easements as may be necessary for pipeline rights-of-way. 
"(b) LAND DESCRIPTION.—The parcel of land referred to in sub-
section (a) is all those certain lots, tracts or parcels of land l3dng 
and being situated in the County of Potter and State of Texas, 
and being the East Three Hundred Thirty-One (E331) acres out 
of Section Seventy-eight (78) in Block Nine (9), B.S. & F. Survey, 
(some times known as the G.D. Landis pasture) Potter County, 
Texas, located by certificate No. 1/39 and evidenced by letters 
patents Nos. 411 and 412 issued by the State of Texas under 
date of November 23, 1937, and of record in Vol. 66A of the Patent 
Records of the State of Texas. The metes and bounds description 
of such lands is as follows: 
"(1) FIRST TRACT.—One Hundred Seventy-one (171) acres 
of land known as the North part of the East part of said 
survey Seventy-eight (78) aforesaid, described by metes and 
bounds as follows: 
PUBLIC LAW 104-273—OCT. 9, 1996 
110 STAT. 3319 
"Beginning at a stone 20 x 12 x 3 inches marked 
X, set by W.D. Twichell in 1905, for the Northeast corner 
of this survey and the Northwest corner of Section 59; 
"Thence, South 0 degrees 12 minutes East with the 
West line of said Section 59, 999.4 varas to the Northeast 
comer of the South 160 acres of East half of Section 78; 
"Thence, North 89 degrees 47 minutes West with the 
North line of the South 150 acres of the East half, 956.8 
varas to a point in the East line of the West half Section 
78; 
"Thence, North 0 degrees 10 minutes West with the 
East line of the West half 999.4 varas to a stone 18 x 
14 X 3 inches in the middle of the South line of Section 
79; 
"Thence, South 89 degrees 47 minutes East 965 varas 
to the place of beginning. 
"(2) SECOND TRACT.—One Hundred Sixty (160) acres of 
land known as the South part of the East part of said survey 
No. Seventy-eight (78) described by metes and bounds as 
follows: 
"Beginning at the Southwest corner of Section 59, a 
stone marked X and a pile of stones; Thence, North 89 
degrees 47 minutes West with the North line of Section 
77, 966.5 varas to the Southeast corner of the West half 
of Section 78; Thence, North 0 degrees 10 minutes West 
with the East line of the West half of Section 78; 
"Thence, South 89 degrees 47 minutes East 965.8 varas 
to a point in the East line of Section 78; 
"Thence, South 0 degrees 12 minutes East 934.6 varas 
to the place of beginning. 
"Containing an area of 331 acres, more or less.". 
SEC. 7. REPORT ON HELIUM. 
Section 15 is amended to read as follows: 
50 USC 167m. 
"SEC. 15. REPORT ON HELIUM. 
"(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 8, 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. 
"(b) TRANSMISSION TO CONGRESS.—Not later than 18 months 
before the date on which the Secretary commences offering for 
sale crude helium under section 8, the Secretary shall transmit 
to the Congress— 
"(1) the report of the National Academy under subsection 
(a); 
"(2) the findings of the Secretary, after consideration of 
the conclusions of the National Academy under subsection (a) 
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 8 will have 
a substantial adverse effect on the United States helium indus-
try. United States, helium market or United States, scientific, 
technological, biomedical, or national security interests; and 
110 STAT. 3320 
PUBLIC LAW 104-273—OCT. 9, 1996 
"(3) if the Secretary determines that selling the crude 
helium reserves under the formula established in section 8 
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.". 
Approved October 9, 1996. 
LEGISLATIVE HISTORY—H.R. 4168: 
CONGRESSIONAL RECORD, Vol. 142 (1996): 
Sept. 26, considered and passed House. 
Sept. 28, considered and passed Senate. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996): 
Oct. 9, Presidential statement.