[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3967 Reported in House (RH)]

                                                 Union Calendar No. 358

103d CONGRESS

  2d Session

                               H. R. 3967

                          [Report No. 103-661]

_______________________________________________________________________

                                 A BILL

 To amend the Helium Act to prohibit the Bureau of Mines from refining 
  helium and selling refined helium, to dispose of the United States 
                helium reserve, and for other purposes.

_______________________________________________________________________

                             August 3, 1994

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed





                                                 Union Calendar No. 358
103d CONGRESS
  2d Session
                                H. R. 3967

                          [Report No. 103-661]

 To amend the Helium Act to prohibit the Bureau of Mines from refining 
  helium and selling refined helium, to dispose of the United States 
                helium reserve, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 8, 1994

Mr. Lehman (for himself, Mrs. Vucanovich, and Mr. Miller of California) 
 introduced the following bill; which was referred to the Committee on 
                           Natural Resources

                             August 3, 1994

Additional sponsors: Mr. Murphy, Mr. Lipinski, Mr. DeFazio, Ms. Danner, 
Mr. Dickey, Mr. Hansen, Mr. Thomas of Wyoming, Mr. Holden, Mr. Barlow, 
Mr. Johnson of South Dakota, Mr. Doolittle, Mr. Hefley, Mr. Klein, Mr. 
  Allard, Mr. Hughes, Mr. Duncan, Mr. Skeen, Mr. Wynn, Mr. Barrett of 
  Wisconsin, Mrs. Johnson of Connecticut, Mr. Roberts, Mr. Blute, Mr. 
   Franks of Connecticut, Mr. Zeliff, Mr. Franks of New Jersey, Mr. 
    Berman, Mr. Pombo, Mr. Gallegly, Mr. Calvert, Mr. McInnis, Mr. 
                Coppersmith, Mr. McHale, and Mr. Saxton

                             August 3, 1994

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on March 
                                8, 1994]

_______________________________________________________________________

                                 A BILL


 
 To amend the Helium Act to prohibit the Bureau of Mines from refining 
  helium and selling refined helium, to dispose of the United States 
                helium reserve, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Helium Act of 1994''.

SEC. 2. AMENDMENT OF HELIUM ACT.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Helium Act (50 U.S.C. 
167 to 167n).

SEC. 3. AUTHORITY OF SECRETARY.

    Sections 3, 4, and 5 are amended to read as follows:

``SEC. 3. AUTHORITY OF SECRETARY.

    ``(a) Extraction and Disposal of Helium on Federal Lands.--(1) The 
Secretary may enter into agreements with private parties for the 
recovery and disposal of helium on Federal lands upon such terms and 
conditions as he deems fair, reasonable and necessary. The Secretary 
may grant leasehold rights to any such helium. The Secretary may not 
enter into any agreement by which the Secretary sells such helium other 
than to a private party with whom the Secretary has an agreement for 
recovery and disposal of helium. Such agreements may be subject to such 
rules and regulations as may be prescribed by the Secretary.
    ``(2) Any agreement under this subsection shall be subject to the 
existing rights of any affected Federal oil and gas lessee. Each such 
agreement (and any extension or renewal thereof) shall contain such 
terms and conditions as deemed appropriate by the Secretary.
    ``(3) This subsection shall not in any manner affect or diminish 
the rights and obligations of the Secretary and private parties under 
agreements to dispose of helium produced from Federal lands in 
existence at the enactment of the Helium Act of 1994 except to the 
extent that such agreements are renewed or extended after such date.
    ``(b) Storage, Transportation and Sale.--The Secretary is 
authorized to store, transport, and sell helium only in accordance with 
this Act.
    ``(c) Monitoring and Reporting.--The Secretary is authorized to 
monitor helium production and helium reserves in the United States and 
to periodically prepare reports regarding the amounts of helium 
produced and the quantity of crude helium in storage in the United 
States.

``SEC. 4. STORAGE AND TRANSPORTATION OF CRUDE HELIUM.

    ``(a) Storage and Transportation.--The Secretary is authorized to 
store and transport crude helium and to maintain and operate existing 
crude helium storage at the Bureau of Mines Cliffside Field, together 
with related helium transportation and withdrawal facilities.
    ``(b) Cessation of Production, Refining, and Marketing.--Effective 
one year after the date of enactment of the Helium Act of 1994, the 
Secretary shall cease producing, refining and marketing refined helium 
and shall cease carrying out all other activities relating to helium 
which the Secretary was authorized to carry out under this Act before 
the date of enactment of the Helium Act of 1994, except those 
activities described in subsection (a).
    ``(c) Disposal of Facilities.--(1) Within one year after the date 
of enactment of the Helium Act of 1994, the Secretary shall dispose of 
all facilities, equipment, and other real and personal property, 
together with all interests therein, held by the United States for the 
purpose of producing, refining and marketing refined helium. The 
disposal of such property shall be in accordance with the provisions of 
law governing the disposal of excess or surplus properties of the 
United States.
    ``(2) All proceeds accruing to the United States by reason of the 
sale or other disposal of such property shall be treated as moneys 
received under this chapter for purposes of section 6(f). All costs 
associated with such sale and disposal (including costs associated with 
termination of personnel) and with the cessation of activities under 
subsection (b) shall be paid from amounts available in the helium 
production fund established under section 6(f).
    ``(3) Paragraph (1) shall not apply to any facilities, equipment, 
or other real or personal property, or any interest therein, necessary 
for the storage and transportation of crude helium.
    ``(d) Existing Contracts.--All contracts which were entered into by 
any person with the Secretary for the purchase by such person from the 
Secretary of refined helium and which are in effect on the date of the 
enactment of the Helium Act of 1994 shall remain in force and effect 
until the date on which the facilities referred to in subsection (c) 
are disposed of. Any costs associated with the termination of such 
contracts shall be paid from the helium production fund established 
under section 6(f).

``SEC. 5. FEES FOR STORAGE, TRANSPORTATION AND WITHDRAWAL.

    ``Whenever the Secretary provides helium storage, withdrawal, or 
transportation services to any person, the Secretary is authorized and 
directed to impose fees on such person to reimburse the Secretary for 
the full costs of providing such storage, transportation, and 
withdrawal. All such fees received by the Secretary shall be treated as 
moneys received under this Act for purposes of section 6(f).''.

SEC. 4. SALE OF CRUDE HELIUM.

    Section 6 is amended as follows:
            (1) Subsection (a) is amended by striking out ``from the 
        Secretary'' and inserting ``from persons who have entered into 
        enforceable contracts to purchase an equivalent amount of crude 
        helium from the Secretary''.
            (2) Subsection (b) is amended by inserting ``crude'' before 
        ``helium'' and by adding the following at the end thereof: 
        ``Except as may be required by reason of subsection (a), sales 
        of crude helium under this section shall be in amounts as the 
        Secretary determines, in consultation with the helium industry, 
        necessary to carry out this subsection with minimum market 
        disruption.
            (3) Subsection (c) is amended by inserting ``crude'' before 
        ``helium'' after the words ``Sales of'' and by striking 
        ``together with interest as provided in subsection'' and all 
        that follows down through the period at the end of such 
        subsection and inserting the following:
``all funds required to be repaid to the United States as of October 1, 
1993 under this section (hereinafter referred to as `repayable 
amounts'). The price at which crude helium is sold by the Secretary 
shall not be less than the amount determined by the Secretary as 
follows:
            ``(1) Divide the outstanding amount of such repayable 
        amounts by the volume (in mcf) of crude helium owned by the 
        United States and stored in the Bureau of Mines Cliffside Field 
        at the time of the sale concerned.
            ``(2) Adjust the amount determined under paragraph (1) by 
        the Consumer Price Index for years beginning after December 31, 
        1993.''.
            (4) Subsection (d) is amended to read as follows:
    ``(d) Extraction of Helium From Deposits on Federal Lands.--All 
moneys received by the Secretary from the sale or disposition of helium 
on Federal lands shall be paid to the Treasury and credited against the 
amounts required to be repaid to the Treasury under subsection (c) of 
this section.''.
            (5) Subsection (e) is repealed.
            (6) Subsection (f) is amended by inserting ``(1)'' after 
        ``(f)'' and by adding the following at the end thereof:
    ``(2) Within 7 days after the commencement of each fiscal year 
after the disposal of the facilities referred to in section 4(c), all 
amounts in such fund in excess of $2,000,000 (or such lesser sum as the 
Secretary deems necessary to carry out this Act during such fiscal 
year) shall be paid to the Treasury and credited as provided in 
paragraph (1). Upon repayment of all amounts referred to in subsection 
(c), the fund established under this section shall be terminated and 
all moneys received under this Act shall be deposited in the Treasury 
as General Revenues.''.

SEC. 5. ELIMINATION OF STOCKPILE.

    Section 8 is amended to read as follows:

``SEC. 8. ELIMINATION OF STOCKPILE.

    ``(a) Review of Reserves.--The Secretary shall review annually the 
known helium reserves in the United States and make a determination as 
to the expected life of the domestic helium reserves (other than 
federally owned helium stored at the Cliffside Reservoir) at that time.
    ``(b) Stockpile Sales.--Not later than January 1, 2004, the 
Secretary shall commence making sales of crude helium from helium 
reserves owned by the United States in such amounts as may be necessary 
to dispose of all such helium reserves in excess of 600 million cubic 
feet (mcf) by January 1, 2014. The sales shall be at such times and in 
such lots as the Secretary determines, in consultation with the helium 
industry, to be necessary to carry out this subsection with minimum 
market disruption. The price for all such sales, as determined by the 
Secretary in consultation with the helium industry, shall be such as 
will ensure repayment of the amounts required to be repaid to the 
Treasury under section 6(c).
    ``(c) Discovery of Additional Reserves.--The discovery of 
additional helium reserves shall not affect the duty of the Secretary 
to make sales of helium as provided in subsection (b), as the case may 
be.''.

SEC. 6. REPEAL OF AUTHORITY TO BORROW.

    Sections 12 and 15 are repealed.