[Congressional Record Volume 140, Number 24 (Tuesday, March 8, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 8, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
             INTRODUCTION OF HELIUM AMENDMENTS ACT OF 1994

                                 ______


                       HON. BARBARA F. VUCANOVICH

                               of nevada

                    in the house of representatives

                         Tuesday, March 8, 1994

  Mrs. VUCANOVICH. Mr. Speaker, today, I am very pleased to join with 
the distinguished chairman of the Subcommittee on Energy and Mineral 
Resources, Representative Richard Lehman, in introducing ``The Helium 
Amendments Act of 1994,'' a bill to reform the Federal Helium Program.
  The use of helium is far more widespread than its traditional uses. 
These include use in space shuttle launches, cancer research, welding, 
cryogenics, and so forth.
  In 1925, the Federal Helium Program was officially placed under the 
Bureau of Mines control when Congress enacted the Helium Act of 1925. 
In 1929, the Bureau's large scale helium extraction and purification 
facility was built and began operating near Amarillo, TX.
  Concerns that natural gas supplies were drying up prompted Congress 
to replace the 1925 act with the Helium Act Amendments of 1960. The 
1960 act was intended to conserve helium for essential Government 
services and to supply current and foreseeable needs of the Federal 
Government. The law authorized the Secretary to buy helium from private 
suppliers and store it for use by the Federal Government. Also the law 
authorized storage of helium, maintaining helium production and 
purification plants, as well as related helium storage, transmission 
and shipping facilities.
  Beginning in 1960, the Federal Government contracted with private 
companies to supply helium to the BOM facility. To finance purchases 
the Bureau borrowed $252 million from the Treasury, intending that 
future sales would recover the loan. But Federal demand failed to meet 
projections, and in 1973 the BOM canceled the contracts. This left the 
Bureau controlling the estimated 32 billion cubic feet helium 
stockpile, and a debt, which--including interest--is estimated at $1.3 
billion.
  Since the 1960 act, the situation has changed dramatically. Today, 
there is a thriving, efficient U.S. private helium industry which last 
year provided and supplied an estimated 3 billion cubic feet of the 3.5 
billion cubic feet which is sold worldwide. Domestically, there are 11 
privately-owned plants in Kansas, Texas, Wyoming, and Colorado.
  By contrast, the Federal Government continues to operate highly 
inefficient 65-year-old facilities supplying Government customers at a 
much higher cost, and representing just 10 percent of the total 
domestic market.
  The inefficiency of the Federal program and the need for reform in 
the helium program has been the subject of national television 
programs, newspaper articles, congressional hearings, as well as 
critical statements by public interest groups such as the National 
Taxpayers Union, Citizens Against Government Waste and others.
  Our bill stops the needless action of the Federal Government directly 
competing with the private helium industry, saves the taxpayers 
millions of dollars, ensues repayment of the debt, and puts an end to a 
wasteful Government program that has long outlasted its usefulness once 
and for all.
  It does this by terminating the Government's refining and marketing 
functions and turning those functions over to the private sector, which 
can do it more efficiently and cheaper.
  In addition, our legislation phases in the sale of the stockpile over 
several years, with the entire helium stockpile by a date certain. This 
will allow the private helium fields to be depleted in the intervening 
years and ensuring that when sold, the return to the Treasury on the 
helium stockpile will be at the maximum return for U.S. taxpayers.
  This legislation also ensures that impact on the private helium 
industry will be minimized while eliminating a wasteful Government 
program.
  I look forward to a hearing in April.

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