Library / Laws / 113th / s / S. 783 / Reported in Senate
II
Calendar No. 152
113th CONGRESS
1st Session
S. 783
[Report No. 113–83]
IN THE SENATE OF THE UNITED STATES
April 23, 2013
Mr. Wyden (for himself,
Ms. Murkowski, Mr. King, Mr.
Schumer, Mr. Blumenthal,
Mr. Flake, Mr.
Risch, Mr. Heinrich,
Mr. Crapo, Mr.
Merkley, Mr. Casey,
Mr. Whitehouse, Mrs. Gillibrand, and Mr.
Tester) introduced the following bill; which was read twice and
referred to the
Committee on Energy and Natural
Resources
July 29, 2013
Reported by Mr. Wyden,
with an amendment
Strike out all after the enacting clause and insert
the part printed in italic
A BILL
To amend the Helium Act to improve helium stewardship,
and for other purposes.
1.
Short title
This Act may be cited as the
Helium Stewardship Act of
2013.
2.
Definitions
Section 2 of the Helium Act (50 U.S.C. 167)
is amended to read as follows:
2.
Definitions
In this Act:
(1)
Cliffside
Field
The term Cliffside Field means the helium
storage reservoir in which the Federal Helium Reserve is stored.
(2)
Federal Helium
Pipeline
The term Federal Helium Pipeline means the
federally owned pipeline system through which the Federal Helium Reserve may be
transported.
(3)
Federal Helium
Reserve
The term Federal Helium Reserve means helium
reserves owned by the United States.
(4)
Federal Helium
System
The term Federal Helium System means—
(A) the Federal Helium
Reserve;
(B) the Cliffside
Field;
(C) the Federal Helium
Pipeline; and
(D) all other
infrastructure owned, leased, or managed under contract by the Secretary for
the storage, transportation, withdrawal, purification, or management of
helium.
(5)
Federal
user
The term Federal user means a Federal agency or
extramural holder of one or more Federal research grants using helium.
(6)
Low-Btu
gas
The term low-Btu gas means a fuel gas with a
heating value of less than 250 Btu per standard cubic foot measured as the
higher heating value resulting from the inclusion of noncombustible gases,
including nitrogen, helium, argon, and carbon dioxide.
(7)
Person
The
term person means any individual, corporation, partnership, firm,
association, trust, estate, public or private institution, or State or
political subdivision.
(8)
Priority
pipeline access
The term priority pipeline access
means the first priority of delivery of crude helium under which the Secretary
schedules and ensures the delivery of crude helium to a helium refinery through
the Federal Helium System.
(9)
Qualified
bidder
(A)
In
general
The term qualified bidder means a person the
Secretary determines is seeking to purchase helium for their own use, refining,
or redelivery to users.
(B)
Exclusion
The
term qualified bidder does not include a person who was previously
determined to be a qualified bidder if the Secretary determines that the person
did not meet the requirements of a qualified bidder under this Act.
(10)
Qualifying
domestic helium transaction
The term qualifying domestic
helium transaction means any agreement entered into or renegotiated
agreement during the preceding 1-year period in the United States for the
purchase or sale of at least 20,000,000 standard cubic feet of crude or pure
helium to which any holder of a contract with the Secretary for the acceptance,
storage, delivery, or redelivery of crude helium from the Federal Helium System
is a party.
(11)
Refiner
The
term refiner means a person with the ability to take delivery of
crude helium from the Federal Helium Pipeline and refine the crude helium into
pure helium.
(12)
Secretary
The
term Secretary means the Secretary of the
Interior.
.
3.
Authority of
Secretary
Section 3 of the
Helium Act (50 U.S.C. 167a) is amended by adding at the end the
following:
(c)
Extraction of
helium from deposits on Federal land
All amounts received by the
Secretary from the sale or disposition of helium on Federal land shall be
credited to the Helium Production Fund established under section
6(d).
.
4.
Storage,
withdrawal and transportation
Section 5 of the Helium Act (50 U.S.C. 167c)
is amended to read as follows:
5.
Storage,
withdrawal and transportation
(a)
In
general
If the Secretary provides helium storage, withdrawal, or
transportation services to any person, the Secretary shall impose a fee on the
person that accurately reflects the economic value of those services.
(b)
Minimum
fees
The fees charged under subsection (a) shall be not less than
the amount required to reimburse the Secretary for the full costs of providing
storage, withdrawal, or transportation services.
(c)
Schedule of
fees
Prior to sale or auction under subsection (a), (b), or (c)
of section 6, the Secretary shall annually publish a standardized schedule of
fees that the Secretary will charge under this section.
(d)
Treatment
All
fees received by the Secretary under this section shall be credited to the
Helium Production Fund established under section 6(d).
(e)
New
storage
In accordance with this section, the Secretary shall
allow any person or qualified bidder to which crude helium is sold or auctioned
under section 6 to store that helium in the Federal Helium
Reserve.
.
5.
Sale of crude
helium
Section 6 of the Helium
Act (50 U.S.C. 167d) is amended to read as follows:
6.
Sale of crude
helium
(a)
Phase A:
Allocation transition
(1)
In
general
The Secretary shall offer crude helium for sale in such
quantities, at such times, at not less than the minimum price established under
subsection (b)(7), and under such terms and conditions as the Secretary
determines necessary to carry out this subsection with minimum market
disruption.
(2)
Federal
purchases
Federal users may purchase refined helium with priority
pipeline access under this subsection from persons who have entered into
enforceable contracts to purchase an equivalent quantity of crude helium from
the Secretary.
(3)
Duration
This
subsection applies during the period—
(A) beginning on the
date of enactment of the Helium Stewardship
Act of 2013; and
(B) ending on
September 30, 2014.
(b)
Phase B: Auction
implementation
(1)
In
general
The Secretary shall offer crude helium for sale in
quantities not subject to auction under paragraph (2), at such times, at not
less than the minimum price established under paragraph (7), and under such
terms and conditions as the Secretary determines necessary—
(A) to maximize total
recovery of helium from the Federal Helium Reserve over the long term;
(B) to maximize the
total financial return to the taxpayer;
(C) to manage crude
helium sales according to the ability of the Secretary to extract and produce
helium from the Federal Helium Reserve;
(D) to give priority
to meeting the helium demand of Federal users in the event of any disruption to
the Federal Helium Reserve; and
(E) to carry out this
subsection with minimum market disruption.
(2)
Auction
quantities
For the period described in paragraph (4) and
consistent with the conditions described in paragraph (8), the Secretary shall
annually auction to any qualified bidder a quantity of crude helium in the
Federal Helium Reserve equal to—
(A) for fiscal year
2015, 10 percent of the total volume of crude helium made available for that
fiscal year; and
(B) for each
subsequent fiscal year, a percentage of the total volume of crude helium that
is 10 percentage points greater than the percentage available for the previous
fiscal year, but not to exceed 100 percent.
(3)
Federal
purchases
Federal users may purchase refined helium-with priority
pipeline access and at the in-kind price under this subsection from persons who
have entered into enforceable contracts to purchase an equivalent quantity of
crude helium from the Secretary.
(4)
Duration
This
subsection applies during the period—
(A) beginning on
October 1, 2014; and
(B) ending on the date
on which the volume of recoverable crude helium at the Federal Helium Reserve
(other than privately owned quantities of crude helium stored temporarily at
the Federal Helium Reserve under section 5 and this section) is 3,000,000,000
standard cubic feet.
(5)
Safety
valve
The Secretary may adjust the quantities specified in
paragraph (2)—
(A) downward, if the
Secretary determines the adjustment necessary—
(i) to minimize market
disruptions that pose a threat to the economic well-being of the United States;
and
(ii) only after
submitting a written justification of the adjustment to the Committee on Energy
and Natural Resources of the Senate and the Committee on Natural Resources of
the House of Representatives; or
(B) upward, if the
Secretary determines the adjustment necessary to increase participation in
crude helium auctions or returns to the taxpayer.
(6)
Auction
format
The Secretary shall conduct each auction using a method
that maximizes revenue to the Federal Government.
(7)
Prices
The
Secretary shall annually establish, as applicable, sale and minimum auction
prices under subsection (a)(1) and paragraphs (1) and (2) using, if applicable
and in the following order of priority:
(A) The sale price of
crude helium in auctions held by the Secretary under paragraph (2).
(B) Price
recommendations and disaggregated data from a qualified, independent third
party who has no conflict of interest, who shall conduct a confidential survey
of qualifying domestic helium transactions.
(C) The
volume-weighted average price of all crude helium and pure helium purchased,
sold, or processed by persons in all qualifying domestic helium
transactions.
(D) The
volume-weighted average cost of converting gaseous crude helium into pure
helium.
(8)
Terms and
conditions
(A)
In
general
The Secretary shall require all persons that are parties
to a contract with the Secretary for the withdrawal, acceptance, storage,
transportation, delivery, or redelivery of crude helium to disclose, on a
strictly confidential basis—
(i) the volumes and
associated prices in dollars per thousand cubic feet of all crude and pure
helium purchased, sold, or processed by persons in qualifying domestic helium
transactions;
(ii) the volumes and
associated costs in dollars per thousand cubic feet of converting crude helium
into pure helium; and
(iii) refinery
capacity and future capacity estimates.
(B)
Condition
As
a condition of sale or auction to a refiner under subsection (a)(1) and
paragraphs (1) and (2), effective beginning 90 days after the date of enactment
of the Helium Stewardship Act of
2013, the refiner shall make excess refining capacity of helium
available at commercially reasonable rates to—
(i) any person
prevailing in auctions under paragraph (2); and
(ii) any person that
has acquired crude helium from the Secretary from the Federal Helium Reserve by
means other than an auction under paragraph (2) after the date of enactment of
the Helium Stewardship Act of
2013.
(9)
Use of
information
The Secretary may use the information collected under
this Act—
(A) to approximate
crude helium prices; and
(B) to ensure the
recovery of fair value for the taxpayers of the United States from sales of
crude helium.
(10)
Protection of
confidentiality
The Secretary shall adopt such administrative
policies and procedures as the Secretary considers necessary and reasonable to
ensure the confidentiality of information submitted pursuant to this
Act.
(c)
Phase C:
Continued access for Federal users
(1)
In
general
The Secretary shall offer crude helium for sale to
Federal users in such quantities, at such times, at not less than the minimum
price established under subsection (b)(7), and under such terms and conditions
as the Secretary determines necessary to carry out this subsection.
(2)
Federal
purchases
Federal users may purchase refined helium with priority
pipeline access under this subsection from persons who have entered into
enforceable contracts to purchase an equivalent quantity of crude helium from
the Secretary.
(3)
Effective
date
This subsection applies beginning on the day after the date
described in subsection (b)(4)(B).
(d)
Helium
Production Fund
(1)
In
general
All amounts received under this Act, including amounts
from the sale or auction of crude helium, 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 Act (other
than sections 16, 17, and 18), including capital investments in upgrades and
maintenance at the Federal Helium System, including—
(A) well head
maintenance at the Cliffside Field;
(B) capital
investments in maintenance and upgrades of facilities that pressurize the
Cliffside Field;
(C) capital
investments in maintenance and upgrades of equipment related to the storage,
withdrawal, transportation, purification, and sale of crude helium from the
Federal Helium Reserve;
(D) entering into
purchase, lease, or other agreements to drill new or uncap existing wells to
maximize the recovery of crude helium from the Federal Helium System if the
Secretary determines the actions to be cost-effective; and
(E) any other
scheduled or unscheduled maintenance of the Federal Helium System.
(2)
Excess
funds
Any amounts in the Helium Production Fund described in
paragraph (1) that exceed the amounts that the Secretary determines to be
necessary to carry out paragraph (1) shall be deposited in the general fund of
the Treasury.
(e)
Minimum
quantity
The Secretary shall offer for sale or auction during
each fiscal year under subsections (a), (b), and (c) a quantity of crude helium
that is the lesser of —
(1) the quantity of
crude helium offered for sale by the Secretary during fiscal year 2012;
and
(2) the maximum total
production capacity of the Federal Helium System.
(f)
Maintenance of
helium supply
The Secretary shall minimize disruption in the
supply of helium from the Federal Helium System during the transition between
phases of helium sales under subsections (a), (b), and
(c).
.
6.
Information,
assessment, research, and strategy
The Helium Act (50 U.S.C. 167 et seq.) is
amended—
(1) by repealing
section 15 (50 U.S.C. 167m);
(2) by redesignating
section 17 (50 U.S.C. 167 note) as section 20; and
(3) by inserting after
section 14 (50 U.S.C. 167l) the following:
15.
Information
(a)
Transparency
The
Secretary, acting through the Bureau of Land Management, shall make available
on the Internet information relating to the Federal Helium System that
includes—
(1) continued
publication of an open market and in-kind price;
(2) aggregated
projections of excess refining capacity;
(3) ownership of
helium held in the Federal Helium Reserve;
(4) the volume of
helium delivered to persons through the Federal Helium Pipeline;
(5) pressure
constraints of the Federal Helium Pipeline;
(6) an estimate of the
projected date when 3,000,000,000 standard cubic feet of crude helium will
remain in the Federal Helium Reserve and the final phase described in section
6(c) will begin;
(7) the amount of the
fees charged under section 5;
(8) the scheduling of
crude helium deliveries through the Federal Helium Pipeline; and
(9) other factors that
will increase transparency.
(b)
Reporting
Not
later than 90 days after the date of enactment of the Helium Stewardship Act of
2013, to provide the market with appropriate and timely information affecting
the helium resource, the Director of the Bureau of Land Management shall
establish a timely and public reporting process to provide data that affects
the helium industry, including—
(1) annual maintenance
schedules and quarterly updates, that shall include—
(A) the date and
duration of planned shutdowns of the Federal Helium Pipeline;
(B) the nature of work
to be undertaken on the Federal Helium System, whether routine, extended, or
extraordinary;
(C) the anticipated
impact of the work on the helium supply;
(D) the efforts being
made to minimize any impact on the supply chain; and
(E) any concerns
regarding maintenance of the Federal Helium Pipeline, including the pressure of
the pipeline or deviation from normal operation of the pipeline;
(2) for each unplanned
outage, a description of—
(A) the beginning of
the outage;
(B) the expected
duration of the outage;
(C) the nature of the
problem;
(D) the estimated
impact on helium supply;
(E) a plan to correct
problems, including an estimate of the potential timeframe for correction and
the likelihood of plan success within the timeframe;
(F) efforts to
minimize negative impacts on the helium supply chain; and
(G) updates on repair
status and the anticipated online date;
(3) monthly summaries
of meetings and communications between the Bureau of Land Management and the
Cliffside Refiners Limited Partnership, including a list of participants and an
indication of any actions taken as a result of the meetings or communications;
and
(4) current
predictions of the lifespan of the Federal Helium System, including how much
longer the crude helium supply will be available based on current and
forecasted demand and the projected maximum production capacity of the Federal
Helium System for the following fiscal year.
16.
Helium gas
resource assessment
(a)
In
general
Not later than 2
years after the date of enactment of the Helium Stewardship Act of 2013, the
Secretary, acting through the Director of the United States Geological Survey,
shall—
(1) in coordination
with appropriate heads of State geological surveys—
(A) complete a
national helium gas assessment that identifies and quantifies the quantity of
helium, including the isotope helium-3, in each reservoir, including
assessments of the constituent gases found in each helium resource, such as
carbon dioxide, nitrogen, and natural gas; and
(B) make available the
modern seismic and geophysical log data for characterization of the Bush Dome
Reservoir;
(2) in coordination
with appropriate international agencies and the global geology community,
complete a global helium gas assessment that identifies and quantifies the
quantity of the helium, including the isotope helium-3, in each
reservoir;
(3) in coordination
with the Secretary of Energy, acting through the Administrator of the Energy
Information Administration, complete—
(A) an assessment of
trends in global demand for helium, including the isotope helium-3;
(B) a 10-year forecast
of domestic demand for helium across all sectors, including scientific and
medical research, commercial, manufacturing, space technologies, cryogenics,
and national defense; and
(C) an inventory of
medical, scientific, industrial, commercial, and other uses of helium in the
United States, including Federal uses, that identifies the nature of the helium
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
(4) submit to the
Committee on Energy and Natural Resources of the Senate and the Committee on
Natural Resources of the House of Representatives a report describing the
results of the assessments required under this paragraph.
(b)
Authorization of
appropriations
There is authorized to be appropriated to carry
out this section such sums as are necessary.
17.
Low-Btu gas
separation and helium conservation
(a)
Authorization
The
Secretary of Energy shall support programs of research, development, commercial
application, and conservation (including the programs described in subsection
(b))—
(1) to expand the
domestic production of low-Btu gas and helium resources;
(2) to separate and
capture helium from natural gas streams; and
(3) to reduce the
venting of helium and helium-bearing low-Btu gas during natural gas exploration
and production.
(b)
Programs
(1)
Membrane
technology research
The Secretary of Energy, in consultation with
other appropriate agencies, shall support a civilian research program to
develop advanced membrane technology that is used in the separation of low-Btu
gases, including technologies that remove helium and other constituent gases
that lower the Btu content of natural gas.
(2)
Helium
separation technology
The Secretary of Energy shall support a
research program to develop technologies for separating, gathering, and
processing helium in low concentrations that occur naturally in geological
reservoirs or formations, including—
(A) low-Btu gas
production streams; and
(B) technologies that
minimize the atmospheric venting of helium gas during natural gas
production.
(3)
Industrial
helium program
The Secretary of Energy, working through the
Advanced Manufacturing Office of the Department of Energy, shall carry out a
research program—
(A) to develop
low-cost technologies and technology systems for recycling, reprocessing, and
reusing helium for all medical, scientific, industrial, commercial, aerospace,
and other uses of helium in the United States, including Federal uses;
and
(B) to develop
industrial gathering technologies to capture helium from other chemical
processing, including ammonia processing.
(c)
Authorization of
appropriations
There is authorized to be appropriated to carry
out this section such sums as are necessary.
18.
Helium-3
separation
(a)
Interagency
cooperation
The Secretary shall cooperate with the Secretary of
Energy, or a designee, on any assessment or research relating to the extraction
and refining of the isotope helium-3 from crude helium at the Federal Helium
Reserve or along the Federal Helium Pipeline, including—
(1) gas
analysis;
(2) infrastructure
studies; and
(3) cooperation with
refiners.
(b)
Feasibility
study
The Secretary, in consultation with the Secretary of
Energy, or a designee, may carry out a study to assess the feasibility of
establishing a facility to separate the isotope helium-3 from crude helium
at—
(1) the Federal Helium
Reserve; or
(2) an existing helium
separation or purification facility connected to the Federal Helium
Pipeline.
(c)
Report
Not
later than 1 year after the date of enactment of the
Helium Stewardship Act of 2013,
the Secretary shall submit to the Committee on Energy and Natural Resources of
the Senate and the Committee on Natural Resources of the House of
Representatives a report that contains a description of the results of the
assessments conducted under this section.
(d)
Authorization of
appropriations
There is authorized to be appropriated to carry
out this section such sums as are necessary.
19.
Federal agency
helium acquisition strategy
Not later than 2 years after the date of
enactment of the Helium Stewardship Act of
2013, the Secretary (in consultation with the Secretary of
Energy, the Secretary of Defense, the Director of the National Science
Foundation, and the Director of the National Institutes of Health) shall submit
to Congress a report that provides for Federal users—
(1) an assessment of
the consumption of, and projected demand for, crude and refined helium;
(2) a description of a
20-year Federal strategy for securing access to crude helium;
(3) an assessment of
the effects of increases in the price of refined helium and methods and
policies for mitigating any determined effects; and
(4) a description of a
process for prioritization of uses that accounts for diminished availability of
helium supplies that may occur over
time.
.
7.
Conforming
amendments
(a) Section 4 of the
Helium Act (50 U.S.C. 167b) is amended by striking section 6(f)
each place it appears in subsections (c)(3), (c)(4), and (d)(2) and inserting
section 6(d).
(b) Section 8 of the
Helium Act (50 U.S.C. 167f) is repealed.
8.
Existing
agreements
This Act and the
amendments made by this Act shall not in any manner affect or diminish the
rights and obligations of the Secretary of the Interior and private parties
under agreements in existence on the date of enactment of this Act, except to
the extent that the agreements are renewed or extended after that date.
9.
Regulations
The Secretary of the Interior shall
promulgate such regulations as are necessary to carry out this Act and the
amendments made by this Act, including regulations necessary to prevent unfair
acts and practices.
1.
Short title
This Act may be cited as the
Helium Stewardship Act of
2013.
2.
Definitions
Section 2 of the Helium Act (50 U.S.C. 167)
is amended to read as follows:
2.
Definitions
In this Act:
(1)
Cliffside
Field
The term Cliffside Field means the helium
storage reservoir in which the Federal Helium Reserve is stored.
(2)
Federal Helium
Pipeline
The term Federal Helium Pipeline means the
federally owned pipeline system through which the Federal Helium Reserve may be
transported.
(3)
Federal Helium
Reserve
The term Federal Helium Reserve means helium
reserves owned by the United States.
(4)
Federal Helium
System
The term Federal Helium System means—
(A) the Federal Helium
Reserve;
(B) the Cliffside
Field;
(C) the Federal Helium
Pipeline; and
(D) all other infrastructure
owned, leased, or managed under contract by the Secretary for the storage,
transportation, withdrawal, enrichment, purification, or management of
helium.
(5)
Federal
user
The term Federal user means a Federal agency or
extramural holder of one or more Federal research grants using helium.
(6)
Low-Btu
gas
The term low-Btu gas means a fuel gas with a
heating value of less than 250 Btu per standard cubic foot measured as the
higher heating value resulting from the inclusion of noncombustible gases,
including nitrogen, helium, argon, and carbon dioxide.
(7)
Person
The
term person means any individual, corporation, partnership, firm,
association, trust, estate, public or private institution, or State or
political subdivision.
(8)
Priority pipeline
access
The term priority pipeline access means the
first priority of delivery of crude helium under which the Secretary schedules
and ensures the delivery of crude helium to a helium refinery through the
Federal Helium System.
(9)
Qualified
bidder
(A)
In
general
The term qualified bidder means a person the
Secretary determines is seeking to purchase helium for their own use, refining,
or redelivery to users.
(B)
Exclusion
The
term qualified bidder does not include a person who was previously
determined to be a qualified bidder if the Secretary determines that the person
did not meet the requirements of a qualified bidder under this Act.
(10)
Qualifying domestic
helium transaction
The term qualifying domestic helium
transaction means any agreement entered into or renegotiated agreement
during the preceding 1-year period in the United States for the purchase or
sale of at least 20,000,000 standard cubic feet of crude or pure helium to
which any holder of a contract with the Secretary for the acceptance, storage,
delivery, or redelivery of crude helium from the Federal Helium System is a
party.
(11)
Refiner
The
term refiner means a person with the ability to take delivery of
crude helium from the Federal Helium Pipeline and refine the crude helium into
pure helium.
(12)
Secretary
The
term Secretary means the Secretary of the
Interior.
.
3.
Authority of
Secretary
Section 3 of the
Helium Act (50 U.S.C. 167a) is amended by adding at the end the
following:
(c)
Extraction of helium
from deposits on Federal land
All amounts received by the
Secretary from the sale or disposition of helium on Federal land shall be
credited to the Helium Production Fund established under section
6(e).
.
4.
Storage, withdrawal and
transportation
Section 5 of
the Helium Act (50 U.S.C. 167c) is amended to read as follows:
5.
Storage, withdrawal and
transportation
(a)
In
general
If the Secretary provides helium storage, withdrawal, or
transportation services to any person, the Secretary shall impose a fee on the
person that accurately reflects the economic value of those services.
(b)
Minimum
fees
The fees charged under subsection (a) shall be not less than
the amount required to reimburse the Secretary for the full costs of providing
storage, withdrawal, or transportation services, including capital investments
in upgrades and maintenance at the Federal Helium System.
(c)
Schedule of
fees
Prior to sale or auction under subsection (a), (b), or (c)
of section 6, the Secretary shall annually publish a standardized schedule of
fees that the Secretary will charge under this section.
(d)
Treatment
All
fees received by the Secretary under this section shall be credited to the
Helium Production Fund established under section 6(e).
(e)
Storage and
delivery
In accordance with this section, the Secretary
shall—
(1) allow any person or
qualified bidder to which crude helium is sold or auctioned under section 6 to
store helium in the Federal Helium Reserve; and
(2) establish a schedule for
the transportation and delivery of helium using the Federal Helium System
that—
(A) ensures timely delivery
of helium auctioned pursuant to section 6(b)(2);
(B) ensures timely delivery
of helium acquired from the Secretary from the Federal Helium Reserve by means
other than an auction under section 6(b)(2) after the date of enactment of the
Helium Stewardship Act of 2013,
including nonallocated sales; and
(C) provides priority access
to the Federal Helium Pipeline for in-kind sales for Federal users.
(f)
New refining
capacity
The Secretary shall consider any applications for access
to the Federal Helium Pipeline in a manner consistent with the schedule for
phasing out commercial sales and disposition of assets pursuant to section
6.
.
5.
Sale of crude
helium
Section 6 of the Helium
Act (50 U.S.C. 167d) is amended to read as follows:
6.
Sale of crude
helium
(a)
Phase A: Allocation
transition
(1)
In
general
The Secretary shall offer crude helium for sale in such
quantities, at such times, at not less than the minimum price established under
subsection (b)(7), and under such terms and conditions as the Secretary
determines necessary to carry out this subsection with minimum market
disruption.
(2)
Federal
purchases
Federal users may purchase refined helium with priority
pipeline access under this subsection from persons who have entered into
enforceable contracts to purchase an equivalent quantity of crude helium at the
in-kind price from the Secretary.
(3)
Duration
This
subsection applies during—
(A) the period beginning on
the date of enactment of the Helium
Stewardship Act of 2013 and ending on September 30, 2014;
and
(B) any period during which
the sale of helium under subsection (b) is delayed or suspended.
(b)
Phase B: Auction
implementation
(1)
In
general
The Secretary shall offer crude helium for sale in
quantities not subject to auction under paragraph (2), after completion of each
auction, at not less than the minimum price established under paragraph (7),
and under such terms and conditions as the Secretary determines
necessary—
(A) to maximize total
recovery of helium from the Federal Helium Reserve over the long term;
(B) to maximize the total
financial return to the taxpayer;
(C) to manage crude helium
sales according to the ability of the Secretary to extract and produce helium
from the Federal Helium Reserve;
(D) to give priority to
meeting the helium demand of Federal users in the event of any disruption to
the Federal Helium Reserve; and
(E) to carry out this
subsection with minimum market disruption.
(2)
Auction
quantities
For the period described in paragraph (4) and
consistent with the conditions described in paragraph (8), the Secretary shall
annually auction to any qualified bidder a quantity of crude helium in the
Federal Helium Reserve equal to—
(A) for fiscal year 2015, 10
percent of the total volume of crude helium made available for that fiscal
year; and
(B) for each subsequent
fiscal year, a percentage of the total volume of crude helium that is 10
percentage points greater than the percentage available for the previous fiscal
year, but not to exceed 100 percent.
(3)
Federal
purchases
Federal users may purchase refined helium with priority
pipeline access under this subsection from persons who have entered into
enforceable contracts to purchase an equivalent quantity of crude helium at the
in-kind price from the Secretary.
(4)
Duration
This
subsection applies during the period—
(A) beginning on October 1,
2014; and
(B) ending on the date on
which the volume of recoverable crude helium at the Federal Helium Reserve
(other than privately owned quantities of crude helium stored temporarily at
the Federal Helium Reserve under section 5 and this section) is 3,000,000,000
standard cubic feet.
(5)
Safety
valve
The Secretary may adjust the quantities specified in
paragraph (2)—
(A) downward, if the
Secretary determines the adjustment necessary—
(i) to minimize market
disruptions that pose a threat to the economic well-being of the United States;
and
(ii) only after submitting a
written justification of the adjustment to the Committee on Energy and Natural
Resources of the Senate and the Committee on Natural Resources of the House of
Representatives; or
(B) upward, if the Secretary
determines the adjustment necessary to increase participation in crude helium
auctions or returns to the taxpayer.
(6)
Auction
format
The Secretary shall conduct each auction using a method
that maximizes revenue to the Federal Government.
(7)
Prices
The
Secretary shall annually establish, as applicable, sale and minimum auction
prices under subsection (a)(1) and paragraphs (1) and (2) using, if applicable
and in the following order of priority:
(A) The sale price of crude
helium in auctions held by the Secretary under paragraph (2).
(B) Price recommendations and
disaggregated data from a qualified, independent third party who has no
conflict of interest, who shall conduct a confidential survey of qualifying
domestic helium transactions.
(C) The volume-weighted
average price of all crude helium and pure helium purchased, sold, or processed
by persons in all qualifying domestic helium transactions.
(D) The volume-weighted
average cost of converting gaseous crude helium into pure helium.
(8)
Terms and
conditions
(A)
In
general
The Secretary shall require all persons that are parties
to a contract with the Secretary for the withdrawal, acceptance, storage,
transportation, delivery, or redelivery of crude helium to disclose, on a
strictly confidential basis—
(i) the volumes and
associated prices in dollars per thousand cubic feet of all crude and pure
helium purchased, sold, or processed by persons in qualifying domestic helium
transactions;
(ii) the volumes and
associated costs in dollars per thousand cubic feet of converting crude helium
into pure helium; and
(iii) refinery capacity and
future capacity estimates.
(B)
Condition
As
a condition of sale or auction to a refiner under subsection (a)(1) and
paragraphs (1) and (2), effective beginning 90 days after the date of enactment
of the Helium Stewardship Act of
2013, the refiner shall make excess refining capacity of helium
available at commercially reasonable rates to—
(i) any person prevailing in
auctions under paragraph (2); and
(ii) any person that has
acquired crude helium from the Secretary from the Federal Helium Reserve by
means other than an auction under paragraph (2) after the date of enactment of
the Helium Stewardship Act of
2013, including nonallocated sales.
(9)
Use of
information
The Secretary may use the information collected under
this Act—
(A) to approximate crude
helium prices; and
(B) to ensure the recovery of
fair value for the taxpayers of the United States from sales of crude
helium.
(10)
Protection of
confidentiality
The Secretary shall adopt such administrative
policies and procedures as the Secretary considers necessary and reasonable to
ensure the confidentiality of information submitted pursuant to this
Act.
(c)
Phase C: Continued
access for Federal users
(1)
In
general
The Secretary shall offer crude helium for sale to
Federal users in such quantities, at such times, at such prices required to
reimburse the Secretary for the full costs of the sales, and under such terms
and conditions as the Secretary determines necessary to carry out this
subsection.
(2)
Federal
purchases
Federal users may purchase refined helium with priority
pipeline access under this subsection from persons who have entered into
enforceable contracts to purchase an equivalent quantity of crude helium at the
in-kind price from the Secretary.
(3)
Effective
date
This subsection applies beginning on the day after the date
described in subsection (b)(4)(B).
(d)
Phase D: Disposal of
assets
(1)
In
general
Not earlier than 2 years after the date of commencement
of Phase C described in subsection (c) and not later than January 1, 2023, the
Secretary shall designate as excess property and dispose of all facilities,
equipment, and other real and personal property, and all interests in the same,
held by the United States in the Federal Helium System.
(2)
Applicable
law
The disposal of the property described in paragraph (1) shall
be in accordance with subtitle I of title 40, United States Code.
(3)
Proceeds
All
proceeds accruing to the United States by reason of the sale or other disposal
of the property described in paragraph (1) shall be treated as funds received
under this Act for purposes of subsection (e).
(4)
Costs
All
costs associated with the sale and disposal (including costs associated with
termination of personnel) and with the cessation of activities under this
subsection shall be paid from amounts available in the Helium Production Fund
established under subsection (e).
(e)
Helium Production
Fund
(1)
In
general
All amounts received under this Act, including amounts
from the sale or auction of crude helium, shall be credited to the Helium
Production Fund, which shall be available without fiscal year limitation for
purposes determined to be necessary and cost effective by the Secretary to
carry out this Act (other than sections 16, 17, and 18), including capital
investments in upgrades and maintenance at the Federal Helium System,
including—
(A) well head maintenance at
the Cliffside Field;
(B) capital investments in
maintenance and upgrades of facilities that pressurize the Cliffside
Field;
(C) capital investments in
maintenance and upgrades of equipment related to the storage, withdrawal,
transportation, purification, and sale of crude helium from the Federal Helium
Reserve;
(D) entering into purchase,
lease, or other agreements to drill new or uncap existing wells to maximize the
recovery of crude helium from the Federal Helium System; and
(E) any other scheduled or
unscheduled maintenance of the Federal Helium System.
(2)
Excess
funds
Amounts in the Helium Production Fund in excess of amounts
the Secretary determines to be necessary to carry out paragraph (1) shall be
paid to the general fund of the Treasury and used to reduce the annual Federal
budget deficit.
(3)
Retirement of public
debt
Out of amounts paid to the general fund of the Treasury
under paragraph (2), the Secretary of the Treasury shall use $51,000,000 to
retire public debt.
(f)
Minimum
quantity
The Secretary shall offer for sale or auction during
each fiscal year under subsections (a), (b), and (c) a quantity of crude helium
that is the lesser of —
(1) the quantity of crude
helium offered for sale by the Secretary during fiscal year 2012; or
(2) the maximum total
production capacity of the Federal Helium
System.
.
6.
Information, assessment,
research, and strategy
The
Helium Act (50 U.S.C. 167 et seq.) is amended—
(1) by repealing section 15
(50 U.S.C. 167m);
(2) by redesignating section
17 (50 U.S.C. 167 note) as section 20; and
(3) by inserting after
section 14 (50 U.S.C. 167l) the following:
15.
Information
(a)
Transparency
The
Secretary, acting through the Bureau of Land Management, shall make available
on the Internet information relating to the Federal Helium System that
includes—
(1) continued publication of
an open market and in-kind price;
(2) aggregated projections of
excess refining capacity;
(3) ownership of helium held
in the Federal Helium Reserve;
(4) the volume of helium
delivered to persons through the Federal Helium Pipeline;
(5) pressure constraints of
the Federal Helium Pipeline;
(6) an estimate of the
projected date when 3,000,000,000 standard cubic feet of crude helium will
remain in the Federal Helium Reserve and the final phase described in section
6(c) will begin;
(7) the amount of the fees
charged under section 5;
(8) the scheduling of crude
helium deliveries through the Federal Helium Pipeline; and
(9) other factors that will
increase transparency.
(b)
Reporting
Not
later than 90 days after the date of enactment of the Helium Stewardship Act of
2013, to provide the market with appropriate and timely information affecting
the helium resource, the Director of the Bureau of Land Management shall
establish a timely and public reporting process to provide data that affects
the helium industry, including—
(1) annual maintenance
schedules and quarterly updates, that shall include—
(A) the date and duration of
planned shutdowns of the Federal Helium Pipeline;
(B) the nature of work to be
undertaken on the Federal Helium System, whether routine, extended, or
extraordinary;
(C) the anticipated impact of
the work on the helium supply;
(D) the efforts being made to
minimize any impact on the supply chain; and
(E) any concerns regarding
maintenance of the Federal Helium Pipeline, including the pressure of the
pipeline or deviation from normal operation of the pipeline;
(2) for each unplanned
outage, a description of—
(A) the beginning of the
outage;
(B) the expected duration of
the outage;
(C) the nature of the
problem;
(D) the estimated impact on
helium supply;
(E) a plan to correct
problems, including an estimate of the potential timeframe for correction and
the likelihood of plan success within the timeframe;
(F) efforts to minimize
negative impacts on the helium supply chain; and
(G) updates on repair status
and the anticipated online date;
(3) monthly summaries of
meetings and communications between the Bureau of Land Management and the
Cliffside Refiners Limited Partnership, including a list of participants and an
indication of any actions taken as a result of the meetings or communications;
and
(4) current predictions of
the lifespan of the Federal Helium System, including how much longer the crude
helium supply will be available based on current and forecasted demand and the
projected maximum production capacity of the Federal Helium System for the
following fiscal year.
16.
Helium gas resource
assessment
(a)
In
general
Not later than 2
years after the date of enactment of the Helium Stewardship Act of 2013, the
Secretary, acting through the Director of the United States Geological Survey,
shall—
(1) in coordination with
appropriate heads of State geological surveys—
(A) complete a national
helium gas assessment that identifies and quantifies the quantity of helium,
including the isotope helium-3, in each reservoir, including assessments of the
constituent gases found in each helium resource, such as carbon dioxide,
nitrogen, and natural gas; and
(B) make available the modern
seismic and geophysical log data for characterization of the Bush Dome
Reservoir;
(2) in coordination with
appropriate international agencies and the global geology community, complete a
global helium gas assessment that identifies and quantifies the quantity of the
helium, including the isotope helium-3, in each reservoir;
(3) in coordination with the
Secretary of Energy, acting through the Administrator of the Energy Information
Administration, complete—
(A) an assessment of trends
in global demand for helium, including the isotope helium-3;
(B) a 10-year forecast of
domestic demand for helium across all sectors, including scientific and medical
research, commercial, manufacturing, space technologies, cryogenics, and
national defense; and
(C) an inventory of medical,
scientific, industrial, commercial, and other uses of helium in the United
States, including Federal uses, that identifies the nature of the helium 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
(4) submit to the Committee
on Energy and Natural Resources of the Senate and the Committee on Natural
Resources of the House of Representatives a report describing the results of
the assessments required under this paragraph.
(b)
Authorization of
appropriations
There is authorized to be appropriated to carry
out this section $1,000,000.
17.
Low-Btu gas separation
and helium conservation
(a)
Authorization
The
Secretary of Energy shall support programs of research, development, commercial
application, and conservation (including the programs described in subsection
(b))—
(1) to expand the domestic
production of low-Btu gas and helium resources;
(2) to separate and capture
helium from natural gas streams; and
(3) to reduce the venting of
helium and helium-bearing low-Btu gas during natural gas exploration and
production.
(b)
Programs
(1)
Membrane technology
research
The Secretary of Energy, in consultation with other
appropriate agencies, shall support a civilian research program to develop
advanced membrane technology that is used in the separation of low-Btu gases,
including technologies that remove helium and other constituent gases that
lower the Btu content of natural gas.
(2)
Helium separation
technology
The Secretary of Energy shall support a research
program to develop technologies for separating, gathering, and processing
helium in low concentrations that occur naturally in geological reservoirs or
formations, including—
(A) low-Btu gas production
streams; and
(B) technologies that
minimize the atmospheric venting of helium gas during natural gas
production.
(3)
Industrial helium
program
The Secretary of Energy, working through the Advanced
Manufacturing Office of the Department of Energy, shall carry out a research
program—
(A) to develop low-cost
technologies and technology systems for recycling, reprocessing, and reusing
helium for all medical, scientific, industrial, commercial, aerospace, and
other uses of helium in the United States, including Federal uses; and
(B) to develop industrial
gathering technologies to capture helium from other chemical processing,
including ammonia processing.
(c)
Authorization of
appropriations
There is authorized to be appropriated to carry
out this section $3,000,000.
18.
Helium-3
separation
(a)
Interagency
cooperation
The Secretary shall cooperate with the Secretary of
Energy, or a designee, on any assessment or research relating to the extraction
and refining of the isotope helium-3 from crude helium and other potential
sources, including—
(1) gas analysis; and
(2) infrastructure
studies.
(b)
Feasibility
study
The Secretary, in consultation with the Secretary of
Energy, or a designee, may carry out a study to assess the feasibility
of—
(1) establishing a facility
to separate the isotope helium-3 from crude helium; and
(2) exploring other potential
sources of the isotope helium-3.
(c)
Report
Not
later than 1 year after the date of enactment of the
Helium Stewardship Act of 2013,
the Secretary shall submit to the Committee on Energy and Natural Resources of
the Senate and the Committee on Natural Resources of the House of
Representatives a report that contains a description of the results of the
assessments conducted under this section.
(d)
Authorization of
appropriations
There is authorized to be appropriated to carry
out this section $1,000,000.
19.
Federal agency helium
acquisition strategy
In
anticipation of the implementation of Phase D described in section 6(d), and
not later than 2 years after the date of enactment of the
Helium Stewardship Act of 2013,
the Secretary (in consultation with the Secretary of Energy, the Secretary of
Defense, the Director of the National Science Foundation, the Administrator of
the National Aeronautics and Space Administration, and the Director of the
National Institutes of Health) shall submit to Congress a report that provides
for Federal users—
(1) an assessment of the
consumption of, and projected demand for, crude and refined helium;
(2) a description of a
20-year Federal strategy for securing access to helium;
(3) a determination of a date
prior to January 1, 2023, for the implementation of Phase D as described in
section 6(d) that minimizes any potential supply disruptions for Federal
users;
(4) an assessment of the
effects of increases in the price of refined helium and methods and policies
for mitigating any determined effects; and
(5) a description of a
process for prioritization of uses that accounts for diminished availability of
helium supplies that may occur over
time.
.
7.
Conforming
amendments
(a) Section 4 of the Helium
Act (50 U.S.C. 167b) is amended by striking section 6(f) each
place it appears in subsections (c)(3), (c)(4), and (d)(2) and inserting
section 6(d).
(b) Section 8 of the Helium
Act (50 U.S.C. 167f) is repealed.
8.
Existing
agreements
This Act and the
amendments made by this Act shall not affect or diminish the rights and
obligations of the Secretary of the Interior and private parties under
agreements in existence on the date of enactment of this Act, except to the
extent that the agreements are renewed or extended after that date.
9.
Regulations
The Secretary of the Interior shall
promulgate such regulations as are necessary to carry out this Act and the
amendments made by this Act, including regulations necessary to prevent unfair
acts and practices.
10.
Amendments to other
laws
(a)
Secure rural schools
and community self determination program
(1)
Secure payments for
States and counties containing Federal land
(A)
Availability of
payments
Section 101 of the
Secure Rural Schools and Community Self-Determination Act of 2000 (16 U.S.C.
7111) is amended by striking 2012 each place it appears and
inserting 2013.
(B)
Elections
Section 102(b) of the Secure Rural Schools
and Community Self-Determination Act of 2000 (16 U.S.C. 7112(b)) is
amended—
(i) in paragraph (1)(A), by
striking 2012 and inserting 2013; and
(ii) in paragraph (2)(B), by
striking 2012 each place it appears and inserting
2013.
(C)
Distribution of
Payments to Eligible Counties in California
Section 103(d)(2) of the Secure Rural
Schools and Community Self-Determination Act of 2000 (16 U.S.C. 7113(d)(2)) is
amended by striking and 2012 and inserting through
2013.
(2)
Continuation of
authority to conduct special projects on federal land
Title II of the Secure Rural Schools and
Community Self-Determination Act of 2000 is amended—
(A) in section 203(a)(1) (16
U.S.C. 7123(a)(1)), by striking 2012 and inserting
2013;
(B) in section 204(e)(3)(B)(iii) (16 U.S.C.
7124(e)(3)(B)(iii)), by striking 2012 and inserting
2013;
(C) in section 205(a)(4) (16
U.S.C. 7125(a)(4)), by striking 2011 each place it appears and
inserting 2012;
(D) in section 207(a) (16
U.S.C. 7127(a)), by striking 2012 and inserting
2013; and
(E) in section 208 (16 U.S.C.
7128)—
(i) in subsection (a), by
striking 2012 and inserting 2013; and
(ii) in subsection (b), by striking
2013 and inserting 2014.
(3)
Continuation of
authority to reserve and use county funds
Section 304 of the Secure Rural Schools and
Community Self-Determination Act of 2000 (16 U.S.C. 7144) is amended—
(A) in subsection (a), by
striking 2012 and inserting 2013 ; and
(B) in subsection (b), by
striking 2013 and inserting 2014.
(4)
Authorization of
appropriations
Section 402 of
the Secure Rural Schools and Community Self-Determination Act of 2000 (16
U.S.C. 7152) is amended by striking 2012 and inserting
2013.
(b)
Abandoned well
remediation
Section 349 of the Energy Policy Act of 2005 (42
U.S.C. 15907) is amended by adding at the end the following:
(i)
Federally drilled
wells
Out of any amounts in the Treasury not otherwise
appropriated, $50,000,000 shall be made available to the Secretary, without
further appropriation and to remain available until expended, to remediate,
reclaim, and close abandoned oil and gas wells on current or former National
Petroleum Reserve
land.
.
(c)
National parks
maintenance backlog
Section 814(g) of the Omnibus Parks and
Public Lands Management Act of 1996 (16 U.S.C. 1f) is amended by adding at the
end the following:
(4)
Available
funds
Out of any amounts in the Treasury not otherwise
appropriated, $50,000,000 shall be made available to the Secretary of the
Interior, without further appropriation and to remain available until expended,
to pay the Federal funding share of challenge cost-share agreements for
deferred maintenance projects and to correct deficiencies in National Park
Service infrastructure.
(5)
Cost-share
requirement
Not less than 50 percent of the total cost of project
for funds made available under paragraph (4) to pay the Federal funding share
shall be derived from non-Federal sources, including in-kind contribution of
goods and services fairly
valued.
.
(d)
Abandoned mine
reclamation fund
Section 411(h) of the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. 1240a(h)) is amended by adding at the end
the following:
(6)
Supplemental
funding
(A)
Waiver of
limitation
Notwithstanding paragraph (5), the limitation on the
total annual payments to a certified State or Indian tribe under this
subsection shall not apply for fiscal year 2014.
(B)
Limitation on
waiver
Notwithstanding subparagraph (A), the total annual payment
to a certified State or Indian tribe under this subsection for fiscal year 2014
shall not be more than $75,000,000.
(C)
Insufficient
amounts
If the total annual payment to a certified State or
Indian tribe under paragraphs (1) and (2) is limited by subparagraph (B), the
Secretary shall—
(i) give priority to making
payments under paragraph (2); and
(ii) use any remaining funds
to make payments under paragraph
(1).
.
(e)
Soda ash
royalties
Notwithstanding section 24 of the Mineral Leasing Act
(30 U.S.C. 262) and the terms of any lease under that Act, the royalty rate on
the quantity of gross value of the output of sodium compounds and related
products at the point of shipment to market from Federal land in the 2-year
period beginning on the date of enactment of this Act shall be 4
percent.
(f)
Authorization
offset
Section 207(c) of the Energy Independence and Security Act
of 2007 (42 U.S.C. 17022(c)) is amended by inserting before the period at the
end the following: , except that the amount authorized to be
appropriated to carry out this section not appropriated as of the date of
enactment of the Helium Stewardship Act of 2013 shall be reduced by
$5,000,000.
July 29, 2013
Reported with an amendment