Hi AMMRL participants:
Sorry if this topic has been covered in the recent helium discussions and
my head was in the sand. I was just forwarded the letter from Linde below
about the impending end of the BLM in-kind helium program. I do not have
permission from Linde to distribute this, but hope that is OK; my intention
is to alert anyone who may not have been informed or might appreciate a
reminder. It seems that a crisis is looming for us if legislation to extend
the program is not enacted by October. According to congress.gov (see
below) House bill 527 was passed in the House in April. Senate bill 783 has
been introduced, but not passed. If in the USA, please write your senators
(and representatives?) and ask others to do the same. Thanks.
Margaret
Linde LLC
15 July 2013
Re: Update on urgent helium legislation and call to action:
Dear In-Kind Helium Customer:
We want to provide you the latest information regarding the continued
operations of the
Bureau of Land Managementıs Federal Helium Reserve and to ask you to
encourage your
Representatives in Congress to take the necessary steps to avoid the
Reserveıs complete
shutdown in early October.
Urgent Congressional action is needed this fall to continue the operations
of the Bureau of Land
Managementıs Federal Helium Reserve, which currently supplies 30% of the
worldıs helium and
100% of the helium used in critical federally funded activities. Without
enactment of legislation
by October 7, the Helium Reserve will cease operations, which will initiate
an immediate
suspension of deliveries of in-kind helium to Federal Helium Suppliers and
to end-user
participants in the U.S. Department of the Interiorıs In-Kind helium
program.
We all need to strongly urge Congress to act immediately. You are an
important customer of the
in-kind helium program, and because your activities depend on a reliable
supply of in-kind
helium, we wanted to update you on the crisis the industry could face, and
what Linde is doing to
help ensure that in-kind helium supplies are not interrupted.
Background:
Key provisions of the Helium Act of 1996 are set to expire in October of
this year. Unless these
provisions are extended by Congress, the BLM has taken the position that it
cannot continue to
operate the crude helium production facilities in Amarillo, TX and that it
must cease the supply of
in-kind crude helium to Federal Helium Suppliers. Responsible Congressional
committees are
working very hard to reauthorize the helium program, and Linde has been
offering technical
expertise to policymakers and urging key legislators to act quickly:
· Linde has testified twice at Congressional hearings on this legislation;
· My colleagues have met multiple times with committee aides drafting the
bills.
· We have consulted with senior BLM officials and urged them to put
contingency plans in
place;
· Linde executives at every level have met with relevant Congressmen and
Senators to
highlight the urgency of action on this legislation
· Finally, Linde has even explored private funding of BLM operations, a
suggestion that was
rejected by the BLM as not permissible under existing law.
Linde LLC
While lawmakers are working diligently to move this legislation forward, it
is an unfortunate fact
that moving any piece of legislation through Congress is a difficult
endeavor in todayıs political
environment. There is no certainty that legislation (S. 783 in the Senate
and H.R. 527 in the
House) will be approved and signed by the President in time to avoid an
interruption of in-kind
helium supply.
Because of the importance of refined helium to the U.S. economy, every
effort is being made by
industry and government leaders to have a back-up plan in place.
Specifically:
· A provision has been added to an Appropriations bill in the House
(Interior Department
Appropriations) to temporarily extend the helium program for an additional
year to give
Congress more time to enact a permanent solution. Appropriations bills are
considered
³must-pass² legislation because they keep the government funded.
· In the event Congress cannot agree on a full Appropriations bill by early
October, they may
agree to a Continuing Resolution (a common funding technique) which would
extend
funding of the government at current levels for a period of time while the
full
Appropriations bill is developed and passed. Under that scenario, funding of
the BLM to
operate the helium facilities would need to be explicitly stipulated in the
Continuing
Resolution.
As the impending deadline approaches in October, we expect a flurry of
activity in Washington,
along with a significant amount of nervousness in the marketplace. I want to
assure you that
Linde is doing everything possible to encourage the passage of responsible
legislation that will
renew the BLMıs helium program in a manner that reduces volatility and
ensures a reliable
supply. At the same time, we are urging Congress to approve a temporary
extension of the
program to create more breathing room and will follow this up with a
relevant communications
program.
What You Can Do:
I would like to recommend that you contact your representatives and senators
to urge them to
actively support the extension of the BLMıs helium program, particularly the
temporary extension
contained in the House Interior Department Appropriations bill, or the
Continuing Resolution, the
shorter-term funding option. This will give Congress additional time to
approve a more
comprehensive bill to continue the BLM helium program.
If you have any questions or would like additional information, please
contact our Head of
Government Affairs: Mike McGowan (Michael.mcgowan_at_linde.com Office:
908-771-1086), who
can provide you with a standard template letter to congress should you
require this and he would
be happy to discuss this matter with you.
Sincerely,
Eric Bass
Strategic Product Manager | Helium & LNG | Linde LLC
Tel: 908.508.3933 | Mob: 908.342.2203 | Fax: 908.771.1468
Summary: H.R.527 ‹ 113th Congress (2013-2014)
Shown Here:
Passed House amended (04/26/2013)
Responsible Helium Administration and Stewardship Act - (Sec. 2) Amends the
Helium Act to define the "Federal Helium Reserve" as the Bureau of Land
Management (BLM) Cliffside Gas Field and supporting infrastructure,
including: (1) the Cliffside Gas Field helium storage reservoir; and (2) all
associated infrastructure owned, leased, or managed under contract by the
Secretary of the Interior (Secretary) for helium storage, transportation,
withdrawal, purification, or management.
Defines "qualifying domestic helium transaction" as any new or newly
negotiated agreement for the purchase or sale of at least 15 million
standard cubic feet of crude helium or bulk liquid helium delivered in the
United States in the most recent full fiscal year, excluding the purchase of
crude helium from the Secretary.
(Sec. 3) Revises requirements for the sale of helium by dividing sales into
three phases: (1) Phase A: Finalizing Debt Payoff, (2) Phase B: Maximizing
Total Recovery of Helium and Increasing Returns to the American Taxpayer,
and (3) Phase C: Access for Federal Users.
Directs the Secretary (who currently is merely authorized) to offer for sale
crude helium for federal, medical, research, scientific, and commercial uses
(stated uses) in such quantities, at such times, and under such conditions
(stated conditions) as necessary to carry out Phase A with minimum market
disruption. Requires the Secretary, during Phase A, to offer for sale during
each fiscal year a quantity of crude helium equivalent to the quantity of
crude helium produced from the Federal Helium Reserve during FY2012.
Authorizes agencies and holders of federal research grants to purchase
refined helium during Phase A from persons who have entered into enforceable
contracts to purchase an equivalent quantity of crude helium from the
Secretary.
Requires the Secretary to establish prices for crude helium sales during
Phase A that are not less than the price in the last sale of crude helium
from the Reserve before enactment of this Act, except that any sale to
agencies or grant holders for an authorized purchase shall be at a price
specified by the Secretary.
Terminates Phase A one year after this Act's enactment.
Requires the Secretary, during Phase B, to offer for sale at auction crude
helium for the stated uses and under the stated conditions as necessary to:
(1) maximize total recovery and conservation of helium from the Reserve; (2)
manage crude helium sales according to the Secretary's ability to extract
and produce helium from the Reserve; (3) respond to helium market supply and
demand and minimize market disruption; and (4) give priority to meeting the
helium demand of federal users through certain in-kind purchases by federal
agencies and grantees.
Authorizes federal agencies and holders of federal research grants, during
Phase B, to purchase refined helium for federal, medical, research, and
scientific uses from a helium distributer registered with the Secretary.
Requires the Secretary then to provide an equivalent volume of crude helium
to the distributer as if the distributer was the successful bidder for the
helium at auction, and at the minimum price established for the most recent
auction or another price specified by the Secretary.
Terminates Phase B when the volume of recoverable crude helium at the
Reserve (other than privately owned quantities of crude helium stored there
temporarily) is 3 billion standard cubic feet.
Limits the total volume of crude helium offered for sale during a fiscal
year to the lesser of: (1) the Reserve's projected maximum total production
capacity, or (2) the maximum refining capacity of persons connected by
pipeline to the Reserve.
Authorizes the Secretary during Phase C to offer crude helium for sale for
federal uses (including medical, research, and scientific uses) under the
stated conditions as necessary to carry out Phase C.
Authorizes federal agencies and holders of federal helium-related research
grants to purchase refined helium under such Phase from persons with
enforceable contracts to purchase an equivalent quantity of crude helium
from the Secretary.
Requires sales of crude helium by the Secretary in each Phase B auction to
be conducted under the following conditions: (1) at least 60% (adjustable up
to 100%) of the volume sold shall be made available to entities with either
adequate refining capacity or tolling agreements for refining in place; (2)
20% of the volume sold shall be made available to any bidder, under specific
conditions; and (3) up to an additional 20% volume that can be refined shall
be made available in auctions after the first one through tolling agreements
or otherwise. Authorizes the Secretary to adjust such percentages and
amounts in any auction if necessary to respond to market supply and demand
and minimize market disruption or increase auction participation.
Requires the Secretary to conduct auctions under Phase B: (1) within 180
days after the end of Phase A; and (2) when necessary to ensure a reliable
supply of helium and a fair return to taxpayers, but at least twice each
fiscal year.
Requires the Secretary to conduct each auction by sealed bid for
predetermined volume lots, unless an alternative bidding method may result
in more revenue to the government or increase auction participation.
Authorizes the Secretary to conduct a forward auction, available to any
bidder, once each fiscal year for up to 10% of the volume of crude helium to
be made available at auction during the following fiscal year.
Directs the Secretary, in carrying out a Phase B auction, to accept bids
only from persons seeking to purchase helium for their own use, for
refining, or for delivery to users. Prohibits the award to a person in a
Phase B auction of more than 30% of the total volume offered, except that
the Secretary may adjust such limitation based on the number of bidders.
Requires the Secretary to charge each winning bidder a storage fee for
purchased crude helium that remains in the Reserve.
Requires the Secretary to determine minimum sale prices under Phase B using
specified factors.
Authorizes the Secretary to change the minimum price charged for crude
helium sold by up to 10% if the Secretary believes that it may not reflect
the current market value of helium, or if a higher minimum price may result
in greater conservation of the federal crude helium resource.
Directs the Secretary to: (1) require all parties to a contract for the
acceptance, storage, and redelivery of crude helium to disclose, on a
confidential basis, the weighted average price of all crude helium and bulk
liquid helium purchased, sold, or processed by them in qualifying domestic
helium transactions during the fiscal year; and (2) appoint a qualified
independent third party to perform data collection and analysis for a
confidential survey to assist in determining the minimum sale price.
Requires auction participants to furnish, upon request, auction transaction
records required by the Secretary to reconstruct bidding or trading in the
course of a particular inquiry or investigation conducted for enforcement or
surveillance purposes.
Authorizes the use of the Helium Production Fund (HP Fund) to conduct helium
auction and otherwise administer the Act. Requires transfer to the Treasury
general fund during a specified period, to reduce the annual federal budget
deficit, of any amounts in the HP Fund exceeding those needed for auctions
and general administration.
Authorizes the use of remaining amounts in the HP Fund for the following
capital investments in upgrades and maintenance at the Reserve: (1) wellhead
maintenance at the Cliffside Gas Field helium storage reservoir; (2) capital
investments in maintenance and upgrades of facilities that pressurize such
reservoir; (3) capital investments in maintenance and upgrades of equipment
related to the storage, withdrawal, transportation, purification, and sale
of crude helium at such reservoir; and (4) any other maintenance of such
reservoir and helium pipeline.
Requires payment to the Treasury general fund of all amounts received from
the sale or disposition of crude helium on federal land, and the crediting
of such amounts against all amounts required to be repaid to the United
States under the Act as of October 1, 1995.
Requires the Secretary to ensure that there is no disruption in the supply
of helium from the Reserve during the transition between phases of helium
sales.
(Sec. 4) Directs the Secretary, acting through the BLM, to: (1) publicize on
the Internet certain information regarding the current refining capacity on
the Federal Helium Reserve pipeline, and (2) take any applications for new
refining capacity on the pipeline. Requires any such new refining capacity
added to the pipeline system to be granted access to crude helium equal to
the access provided to existing refining facilities.
Requires the Secretary, in scheduling crude helium deliveries through such
pipeline, to grant pipeline access in a specified order of priority.
Requires the BLM Director to establish a real-time reporting process,
including reporting over the Internet, providing specified data affecting
the helium industry (including effects for all industry persons from crude
helium suppliers to end users).
(Sec. 5) Directs the Secretary to: (1) complete a national helium gas
resource assessment identifying the quantity of helium in each reservoir
(including the isotope helium-3); (2) make available the modern seismic and
geophysical log data for characterization of the Bush Dome Reservoir; (3)
complete a global helium gas assessment, including an assessment of trends
in global demand; (4) complete an a 10-year forecast of domestic demand for
helium across all sectors; (5) complete an inventory of helium uses in the
United States that identifies the nature of each use, the amounts required,
the technical and commercial viability of helium recapture and recycling in
that use, and the availability of material substitutes wherever possible;
and (6) complete an assessment of options for ensuring a domestic helium
supply in the future.
Requires the Secretary also to: (1) cooperate with the Secretary of the
Department of Energy (DOE) on any assessment or research relating to the
extraction and refining of the isotope helium-3 from crude helium at either
the Federal Helium Reserve or along the Reserve pipeline system; (2) assess
the feasibility of establishing a facility to separate the isotope helium-3
from crude helium at either the Reserve or at an existing helium separation
or purification facility connected to the Reserve pipeline system; and (3)
report on such assessments.
(Sec. 6) Authorizes the Secretary to allow any person not connected to the
Federal Helium Reserve to connect to it for storing helium, subject to any
required storage fees. Requires withdrawal of such helium to be governed by
the Act.
S.783 <
http://beta.congress.gov/bill/113th-congress/senate-bill/783?q=s783>
‹ 113th Congress (2013-2014)
BILL
Latest Title: Helium Stewardship Act of 2013
Sponsor: Sen. Wyden, Ron [D-OR]
<
http://beta.congress.gov/member/ron-wyden/1247?q=s783> (Introduced
04/23/2013)
Cosponsors: 14
<
http://beta.congress.gov/bill/113th-congress/senate-bill/783/cosponsors?q=s
783>
Latest Action: 07/29/2013 Placed on Senate Legislative Calendar under
General Orders. Calendar No. 152.
Received on Mon Aug 26 2013 - 05:13:13 MST