113 S783 IS: Helium Stewardship Act of 2013
U.S. Senate
2013-04-23
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.This Act may be cited as
the Helium Stewardship Act of
2013
.
2.Section 2 of the Helium Act (50 U.S.C. 167)
is amended to read as follows:
2.In this Act:
(1)The term Cliffside Field means the helium
storage reservoir in which the Federal Helium Reserve is stored.
(2)The term Federal Helium Pipeline means the
federally owned pipeline system through which the Federal Helium Reserve may be
transported.
(3)The term Federal Helium Reserve means helium
reserves owned by the United States.
(4)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)The term Federal user means a Federal agency or
extramural holder of one or more Federal research grants using helium.
(6)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)The
term person means any individual, corporation, partnership, firm,
association, trust, estate, public or private institution, or State or
political subdivision.
(8)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)
(A)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)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 transactionThe 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)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)The
term Secretary means the Secretary of the
Interior.
.
3.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 landAll 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 transportationSection 5 of the Helium Act (50 U.S.C. 167c)
is amended to read as follows:
5.Storage,
withdrawal and transportation
(a)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)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)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)All
fees received by the Secretary under this section shall be credited to the
Helium Production Fund established under section 6(d).
(e)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.Section 6 of the Helium
Act (50 U.S.C. 167d) is amended to read as follows:
6.
(a)Phase A:
Allocation transition
(1)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 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)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)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)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 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)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)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)The Secretary shall conduct each auction using a method
that maximizes revenue to the Federal Government.
(7)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)
(A)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)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)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
confidentialityThe 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)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 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)This subsection applies beginning on the day after the date
described in subsection (b)(4)(B).
(d)
(1)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)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)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 supplyThe 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 strategyThe 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.
(a)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)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)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 appropriationsThere is authorized to be appropriated to carry
out this section such sums as are necessary.
17.Low-Btu gas
separation and helium conservation
(a)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)
(1)Membrane
technology researchThe 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 technologyThe 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 programThe 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 appropriationsThere is authorized to be appropriated to carry
out this section such sums as are necessary.
18.
(a)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)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)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 appropriationsThere is authorized to be appropriated to carry
out this section such sums as are necessary.
19.Federal agency
helium acquisition strategyNot 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.
(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.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.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.