[Congressional Record Volume 159, Number 59 (Friday, April 26, 2013)]
[House]
[Pages H2357-H2364]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
RESPONSIBLE HELIUM ADMINISTRATION AND STEWARDSHIP ACT
General Leave
Mr. HASTINGS of Washington. Mr. Speaker, I ask unanimous consent that
all Members may have 5 legislative days in which to revise and extend
their remarks and include extraneous material on the bill, H.R. 527.
The SPEAKER pro tempore (Mr. Collins of Georgia). Is there objection
to the request of the gentleman from Washington?
There was no objection.
The SPEAKER pro tempore. Pursuant to House Resolution 178 and rule
XVIII, the Chair declares the House in the Committee of the Whole House
on the state of the Union for the further consideration of the bill,
H.R. 527.
Will the gentleman from Illinois (Mr. Hultgren) kindly take the
chair.
{time} 1018
In the Committee of the Whole
Accordingly, the House resolved itself into the Committee of the
Whole House on the state of the Union for the further consideration of
the bill (H.R. 527) to amend the Helium Act to complete the
privatization of the Federal helium reserve in a competitive market
fashion that ensures stability in the helium markets while protecting
the interests of American taxpayers, and for other purposes, with Mr.
Hultgren (Acting Chair) in the chair.
The Clerk read the title of the bill.
The Acting CHAIR. When the Committee of the Whole rose on Thursday,
April 25, 2013, all time for general debate had expired.
Pursuant to the rule, the bill shall be considered for amendment
under the 5-minute rule.
In lieu of the amendment in the nature of a substitute recommended by
the Committee on Natural Resources, printed in the bill, it shall be in
order to consider as an original bill for the purpose of amendment
under the 5-minute rule an amendment in the nature of a substitute
consisting of the text of Rules Committee Print 113-9. That amendment
in the nature of a substitute shall be considered as read.
The text of the amendment in the nature of a substitute is as
follows:
H.R. 527
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 ``Responsible Helium
Administration and Stewardship Act''.
SEC. 2. DEFINITIONS.
Section 2 of the Helium Act (50 U.S.C. 167) is amended--
(1) in paragraph (1), by striking the semicolon at the end
and inserting a period;
(2) in paragraph (2), by striking ``; and'' and inserting a
period; and
(3) by adding at the end the following:
``(4) Federal helium reserve.--
``(A) In general.--The term `Federal Helium Reserve' means
the Bureau of Land Management Cliffside Gas Field and
supporting infrastructure.
``(B) Inclusions.--The term `Federal Helium Reserve'
includes--
``(i) the Cliffside Gas Field helium storage reservoir; and
``(ii) all associated infrastructure owned, leased, or
managed under contract by the Secretary for storage,
transportation, withdrawal, purification, or management of
helium.
``(5) Qualifying domestic helium transaction.--The term
`qualifying domestic helium transaction'--
``(A) except as provided in subparagraph (B), means any new
or newly renegotiated agreement for the purchase or sale of
at least 15,000,000 standard cubic feet of crude helium or
bulk liquid helium delivered in the United States in the most
recent full fiscal year; and
``(B) does not include any purchase of crude helium from
the Secretary.
``(6) Tolling agreement.--The term `tolling agreement'
means an agreement between a helium refiner and another party
under which the helium refiner agrees to process the other
person's helium at an agreed upon price.''.
SEC. 3. SALE AND AUCTION OF CRUDE HELIUM.
(a) In General.--Section 6 of the Helium Act (50 U.S.C.
167d) is amended to read as follows:
``SEC. 6. SALE OF HELIUM.
``(a) Phase A: Finalizing Debt Payoff.--
[[Page H2358]]
``(1) In general.--Subject to paragraph (2), the Secretary
shall offer for sale crude helium for Federal, medical,
research, scientific, and commercial uses in such quantities,
at such times, and under such conditions as the Secretary
determines necessary to carry out this subsection with
minimum market disruption.
``(2) Minimum quantity.--The Secretary shall offer for sale
during each fiscal year under paragraph (1) a quantity of
crude helium equivalent to the quantity of crude helium
produced from the Federal Helium Reserve during fiscal year
2012.
``(3) In-kind purchase by federal agencies and grantees.--
Federal agencies, and holders of 1 or more Federal research
grants, may purchase refined helium under this subsection for
Federal, medical, research and scientific uses from persons
who have entered into enforceable contracts to purchase an
equivalent quantity of crude helium from the Secretary.
``(4) Prices and determinations.--Sales of crude helium by
the Secretary under this subsection shall be at prices
established by the Secretary that shall not be less than the
price in the last sale of crude helium from the Federal
Helium Reserve before the date of enactment of the
Responsible Helium Administration and Stewardship Act, except
that any sale to a person referred to in paragraph (3) for a
purchase authorized by that paragraph shall be at a price
specified by the Secretary.
``(5) Duration.--This subsection applies during the
period--
``(A) beginning on the date of enactment of the Responsible
Helium Administration and Stewardship Act; and
``(B) ending on the expiration of the one-year period
following such date of enactment.
``(b) Phase B: Maximizing Total Recovery of Helium and
Increasing Returns to the American Taxpayer.--
``(1) In general.--The Secretary shall offer for sale at
auction, as described in subsection (d), crude helium for
medical, research, scientific, and commercial uses in such
quantities, at such times, and under such conditions as the
Secretary determines necessary--
``(A) to maximize total recovery and conservation of helium
from the Federal Helium Reserve;
``(B) to manage crude helium sales according to the ability
of the Secretary to extract and produce helium from the
Federal Helium Reserve;
``(C) to respond to helium market supply and demand and
minimize market disruption; and
``(D) to give priority to meeting the helium demand of
Federal users through purchases under paragraph (2).
``(2) In-kind purchase by federal agencies and grantees.--
Any Federal agency, and any holder of 1 or more Federal
research grants, may purchase refined helium for Federal,
medical, research, and scientific uses from an eligible
person. The Secretary shall then provide an equivalent volume
of crude helium to the eligible person as if the eligible
person was the successful bidder for the helium at auction.
Provision of helium by the Secretary under this paragraph
shall not be considered a sale of helium by the Secretary at
auction. The Secretary shall provide such helium at the
minimum price established by the Secretary for the most
recent auction held under this subsection or such other price
as may be specified by the Secretary.
``(3) Eligible person.--For purposes of this subsection,
the term `eligible person' means a helium distributer who is
registered as such with the Secretary.
``(4) Duration.--This subsection applies during the
period--
``(A) beginning on the expiration of the period described
in subsection (a)(5)(B); 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) Maximum annual sales.--Notwithstanding any provision
of subsection (d), for each fiscal year, the Secretary may
not offer or provide for sale under this subsection a total
volume of crude helium that exceeds the lesser of--
``(A) the projected maximum total production capacity of
the Federal Helium Reserve during that fiscal year; and
``(B) the maximum refining capacity of persons connected by
pipeline to the Federal Helium Reserve during that fiscal
year.
``(c) Phase C: Access for Federal Users.--
``(1) In general.--The Secretary may offer for sale crude
helium for Federal uses (including medical, research, and
scientific uses) in such quantities, at such times, and under
such conditions as the Secretary determines necessary to
carry out this subsection.
``(2) Purchase by federal agencies and grantees.--Federal
agencies, and holders of 1 or more Federal research grants
related to helium or the use of helium, may purchase refined
helium under this subsection for Federal uses (including
medical, research, and scientific uses) 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) Auction and Minimum Prices Determination.--
``(1) In general.--Sales of crude helium by the Secretary
in auctions under subsection (b) shall be conducted under the
conditions described in this section and at no less than the
minimum price established by the Secretary.
``(2) Auction.--The Secretary shall conduct such auctions
of crude helium as soon as practical but no later than
beginning 180 days after the first day of the period
described in subsection (b)(4), under the following
conditions:
``(A) 60 percent of the volume of crude helium made
available in each auction shall be made available to entities
that can show the Secretary they have either adequate
refining capacity or tolling agreements for refining in
place, in accordance with the conditions set forth in
paragraph (3).
``(B) 20 percent of the volume of crude helium made
available in each auction shall be made available to any
bidder, in accordance with the conditions set forth in
paragraph (3).
``(C) In each auction after the first auction under this
subsection after the date of the enactment of the Responsible
Helium Administration and Stewardship Act, the Secretary
shall make available an additional volume of crude helium, in
an amount equivalent to the amount made available under
subparagraph (B) that the Secretary certifies can be refined,
through tolling agreements or otherwise. Of such additional
volume, a person may not acquire in the auction a volume in
excess of the volume they demonstrate to the Secretary they
have the ability to refine through either refining capacity
or tolling agreements.
``(D) The Secretary shall conduct such auctions at such
times as the Secretary determines necessary to ensure a
reliable supply of helium and a fair return to taxpayers, but
no less frequently than 2 times each fiscal year.
``(E) For purposes of the first auction under this
subsection after the date of the enactment of the Responsible
Helium Administration and Stewardship Act, the Secretary may
revise the percentage under subparagraph (A) so as to make
available for auction 100 percent of the volume of crude
helium intended to be offered.
``(F) The Secretary may adjust the percentages and amount
specified in subparagraphs (A) through (C), respectively, in
any auction if the Secretary determines the adjustment is
necessary to--
``(i) respond to market supply and demand and minimize
market disruption; or
``(ii) increase participation in helium auctions.
``(G) The Secretary may conduct an auction no more
frequently than once each fiscal year of an amount of helium
equal to up to 10 percent of the volume of crude helium to be
made available at auction during the following fiscal year.
Such amount of crude helium shall be made available to any
bidder, in accordance with the conditions set forth in
paragraph (3). Notwithstanding paragraph (3)(C), for crude
helium sold in such an auction the Secretary shall begin
charging a storage fee under clause (i) of that paragraph
beginning 1 year after the date of such auction, and shall
begin charging increasing storage fees under clause (ii) of
that paragraph beginning 270 days after beginning charging
storage fees under clause (i) of that paragraph.
``(3) Auction conditions.--
``(A) Bidding method.--The Secretary shall conduct each
auction by sealed bid for predetermined volume lots, unless
the Secretary determines that an alternative bidding method
may result in more revenue to the Federal Government or may
increase participation in the auction.
``(B) Bidder qualifications and limits.--In carrying out an
auction under subsection (b), the Secretary--
``(i) may accept bids only from persons the Secretary
determines are seeking to purchase helium for their own use,
for refining, or for delivery to users; and
``(ii) may not award to a person more than 30 percent of
the total volume of crude helium offered in that auction,
except that the Secretary may adjust such limitation based on
the number of bidders in the auction.
``(C) Storage fees.--In each auction the Secretary--
``(i) shall begin charging each winning bidder a storage
fee for crude helium purchased by the bidder that remains in
the Federal Helium Reserve, beginning on the date the
Secretary receives payment of the purchase price for the
helium; and
``(ii) beginning 270 days after the date of the auction,
shall charge increasing storage fees that will encourage the
withdrawal of the helium no later than 2 years after the date
of the auction.
``(4) Determination of minimum sale price.--The Secretary
shall make a determination of the minimum sale price for
sales described in paragraph (1) using--
``(A) a confidential survey of qualifying domestic helium
transactions to which any holder of a contract with the
Secretary for the acceptance, storage, and redelivery of
crude helium in the Cliffside Gas Field helium storage
reservoir is a party;
``(B) current market crude helium prices as represented by
the sale price at any auction held by the Secretary in the
preceding 2 years;
[[Page H2359]]
``(C) the volume-weighted average cost among helium
refiners, producers, and liquefiers, in dollars per thousand
cubic feet, of converting gaseous crude helium into bulk
liquid helium;
``(D) the additional layer of cost and profit associated
with the sale or resale of bulk liquid helium; and
``(E) the sale price for crude helium offered in the most
recent auction under paragraph (2)(G).
``(5) Authority of secretary.--The Secretary shall--
``(A) require all persons that are parties to a contract
with the Secretary for the acceptance, storage, and
redelivery of crude helium to disclose, on a strictly
confidential basis in dollars per thousand cubic feet, the
weighted average price of all crude helium and bulk liquid
helium purchased, sold, or processed by the persons in all
qualifying domestic helium transactions during the fiscal
year;
``(B) appoint a qualified independent third party to
perform data collection and analysis for the purposes of the
survey under paragraph (4)(A); and
``(C) adopt such administrative policies and procedures as
the Secretary considers necessary and reasonable to ensure
robust protection of the confidentiality of data submitted by
private persons.
``(6) Changes in minimum price.--If the Secretary believes
that the minimum price as determined by the survey under
paragraph (4)(A) may not be reflective of the current market
value of helium, or if a higher minimum price may result in
greater conservation of the Federal crude helium resource,
the Secretary may change the minimum price charged for crude
helium sold under this section by up to 10 percent of the
price determined under paragraph (4). If at any sale in which
the minimum price is increased under this paragraph all crude
helium offered is sold at the increased price, the Secretary
shall consider that increased price to be the minimum price
determined under paragraph (4) for all future sales of crude
helium under this section unless that price is further
changed in accordance with this paragraph.
``(7) Ensuring fair and nondiscriminatory acts and
practices.--The Secretary may issue such rules and
regulations with respect to ensure bidding, transfer, and
refining of helium produced from or held in the Federal
Helium Reserve as may be necessary to ensure fair and
nondiscriminatory acts and practices.
``(8) Auction records.--
``(A) Furnishing records.--Every person participating in
auctions of helium from the Federal Helium Reserve shall
furnish to the Secretary on request such records of
transactions in helium auctions as the Secretary may require
to reconstruct bidding or trading in the course of a
particular inquiry or investigation being conducted by the
Secretary for enforcement or surveillance purposes. In
requiring information pursuant to this paragraph, the
Secretary shall specify the information required, the period
for which it is required, and the time and date on which the
information must be furnished.
``(B) Reporting requirements.--The Secretary may issue
rules to require persons participating in helium auctions to
file such reports as the Secretary determines to be necessary
for purposes of this Act.
``(C) Recordkeeping requirements.--Rules under this
subsection may require specified persons to make and keep for
prescribed periods such records as the Secretary determines
are necessary or appropriate to ensure that such persons can
comply with reporting requirements under this subsection.
``(D) Limitation on disclosure of information.--
Notwithstanding any other provision of law, the Secretary
shall not be compelled to disclose any proprietary
information required to be kept or reported under this
subsection. Nothing in this subsection authorizes the
Secretary to withhold information from Congress, prevents the
Secretary from complying with a request for information from
any other Federal department or agency requesting information
for purposes within the scope of its jurisdiction, or
prevents the Secretary from complying with an order of a
court of the United States in an action brought by the United
States or by the Secretary.
``(e) Helium Production Fund.--
``(1) In general.--All amounts received under this Act
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
subsection.
``(2) Administrative expenses.--Amounts in the Helium
Production Fund may be used by the Secretary to conduct
helium auctions and otherwise administer this Act.
``(3) Repayment amounts.--During the period described in
subsection (a)(4), amounts in the Helium Production Fund in
excess of amounts the Secretary considers necessary to
conduct helium auctions and otherwise administer this Act
shall be paid to the general fund of the Treasury and
credited against all amounts required to be repaid to the
United States under this Act as of October 1, 1995.
``(4) Capital investments and maintenance.--Amounts in the
Helium Production Fund in excess of amounts the Secretary
considers necessary to carry out paragraphs (1) through (3)
may be used to fund the following capital investments in
upgrades and maintenance at the Federal Helium reserve:
``(A) Wellhead maintenance at the Cliffside Gas Field
helium storage reservoir.
``(B) Capital investments in maintenance and upgrades of
facilities that pressurize the Cliffside Gas Field helium
storage reservoir.
``(C) Capital investments in maintenance and upgrades of
equipment related to the storage, withdrawal, transportation,
purification, and sale of crude helium at the Cliffside Gas
Field helium storage reservoir.
``(D) Any other scheduled or unscheduled maintenance of the
Cliffside Gas Field helium storage reservoir and helium
pipeline.
``(5) Excess funds.--Amounts in the Helium Production Fund
in excess of amounts the Secretary considers necessary to
carry out paragraphs (1) through (4) shall be paid to the
general fund of the Treasury.
``(f) Extraction of Helium From Deposits on Federal Land.--
All amounts received by the Secretary from the sale or
disposition of crude helium on Federal land shall be paid to
the general fund of the Treasury and credited against all
amounts required to be repaid to the United States under this
Act as of October 1, 1995.
``(g) Maintenance of Helium Supply.--The Secretary shall
ensure that there is no disruption in the supply of helium
from the Federal Helium Reserve during the transition between
phases of helium sales under subsections (a), (b), and
(c).''.
(b) Report.--Not later than 1 year after the date of
enactment of this Act and annually thereafter, the Secretary
of the Interior shall submit to the Committee on Natural
Resources of the House of Representatives and the Committee
on Energy and Natural Resources of the Senate a report
describing all expenditures by the Bureau of Land Management
for operation and maintenance of the Federal Helium Reserve
(as that term is defined in the amendment made by section
2(3)), investments made by the Bureau for such reserve, and
scheduled or unscheduled maintenance of such reserve or its
infrastructure to be conducted by the Bureau.
SEC. 4. BLM TRANSPARENCY REQUIREMENTS TO FACILITATE MARKET
AND SUPPLY CHAIN INFORMATION.
The Helium Act (50 U.S.C. 167 et seq.) is further amended
by redesignating sections 15 and 17 as sections 17 and 18,
and by inserting after section 14 the following:
``SEC. 15. PIPELINE ACCESS.
``(a) Annual Report.--The Secretary, acting through the
Bureau of Land Management, shall make available on the
Internet the current refining capacity on the Federal Helium
Reserve pipeline, including--
``(1) refinery capacity and future capacity estimates;
``(2) ownership of federally auctioned helium held in the
Federal Helium Reserve;
``(3) volume of helium delivered to individual buyers
through such pipeline;
``(4) for each helium refiner--
``(A) the number of tolling agreements entered into before
October 1, 2013; and
``(B) for each fiscal year thereafter--
``(i) the number of tolling agreements entered into;
``(ii) the number of tolling requests received; and
``(iii) the total volume of helium refined under each
tolling agreement entered into;
``(5) pipeline pressure constraints; and
``(6) other factors that will increase transparency for
persons interested in entering refining contracts with
existing refiners.
``(b) New Refining Capacity.--The Secretary shall take any
applications for new refining capacity on the Federal Helium
Reserve pipeline. To create more competition, any new
refining capacity added to the Federal Helium Reserve
pipeline system shall be granted access to crude helium that
is equal to the access provided to existing refining
facilities.
``(c) Access by Purchasers of Helium.--The Secretary shall
manage Federal Helium Reserve pipeline access in a
competitive manner to ensure that all persons purchasing
helium have equal access to timing and delivery of the
helium, subject to the capacity of the system.
``(d) Scheduling Deliveries.--The Secretary shall, to the
greatest extent practicable, make the scheduling of crude
helium deliveries through the Federal Helium Reserve pipeline
open and transparent to all purchasers of helium through the
auction process, and to the public if the Secretary believes
that it is in the national interest.
``(e) Scheduling Priority.--
``(1) In general.--In scheduling crude helium deliveries
through the Federal Helium Reserve pipeline the Secretary
shall grant pipeline access in the following order of
priority:
``(A) Helium held in the Reserve as a result of a purchase
under subsection (b)(2).
``(B) Helium sold at auction being delivered to fulfill a
tolling agreement.
``(C) Other helium sold at auction.
``(D) Helium held in the Reserve as a result of a crude
helium exchange resulting from any temporary shutdown of the
Reserve or of a refinery on the Reserve pipeline.
``(E) Helium held in inventory in the Reserve before the
date of enactment of the Responsible Helium Administration
and Stewardship Act.
``(2) In scheduling such deliveries of helium described in
each of subparagraphs (A) through (E) of paragraph (1), the
Secretary shall grant pipeline access based on the following
order of priority:
``(A) The price paid to the United States for the helium,
giving higher priority to helium for which a greater price
was paid.
``(B) The date the helium was purchased from the Secretary,
giving higher priority to helium purchased on an earlier
date.
``(C) Any other factor the Secretary considers appropriate
to prioritize delivery.
[[Page H2360]]
``SEC. 16. BLM REPORTING REQUIREMENTS TO FACILITATE SUPPLY
CHAIN INFORMATION.
``(a) In General.--In order to provide the market with
appropriate and timely information affecting the helium
resource, the Director of the Bureau of Land Management shall
establish, no later than 90 days after the date of enactment
of the Responsible Helium Administration and Stewardship Act,
a real-time reporting process, including reporting over the
Internet, to provide data that will affect the helium
industry, including such effects for all persons in such
industry from crude helium suppliers to end users.
``(b) Included Information.--Information provided under
this section shall include the following:
``(1) Annual maintenance schedules and quarterly updates
thereof, which shall be available on the Internet, to the
extent practicable, and shall include the following:
``(A) The date and duration of planned shutdowns of the
Federal Helium Reserve pipeline.
``(B) The nature of work to be undertaken, whether routine,
extended, or extraordinary.
``(C) The anticipated impact on the helium supply.
``(D) The efforts to minimize any impact on the supply
chain.
``(E) Any concerns regarding maintenance of the Federal
Helium Reserve pipeline, pressure of such pipeline, or
deviation from normal operation of such pipeline.
``(2) For each unplanned outage, the following:
``(A) The beginning of the outage.
``(B) The expected duration of outage.
``(C) A description of the problem.
``(D) The estimated impact on helium supply.
``(E) A plan to correct problems, 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.
``(G) Updates on repair status and the anticipated online
date.
``(3) Minutes of meetings between the Bureau of Land
Management and the Cliffside Refiners Limited Partnership,
including--
``(A) publication of the minutes of each meeting between
the Bureau of Land Management and the Cliffside Refiners
Limited Partnership, including attendees and their
affiliations, on the Internet site of the Bureau within 1
week after the meeting; and
``(B) indication in the minutes of any action taken that
could affect the supply or operating status related to the
Federal helium program.
``(4) Current predictions of the lifespan of the Federal
Helium Reserve, including how much longer such crude helium
supply will be available based on current and forecasted
demand and the projected maximum production capacity of the
Federal Helium Reserve for the following fiscal year.''.
SEC. 5. HELIUM RESOURCE ASSESSMENT AND HELIUM-3 SEPARATION.
(a) Helium Gas Resource Assessment.--Not later than 2 years
after the date of enactment of this Act, the Secretary of the
Interior 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 consultation 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, research, scientific,
industrial, commercial, and other uses of helium in the
United States, including Federal and commercial helium 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 Natural Resources of the
House of Representatives and the Committee on Energy and
Natural Resources of the Senate a report describing the
results of the assessments required under this subsection.
(b) Helium-3 Separation.--
(1) Interagency cooperation.--The Secretary of the Interior
shall cooperate with the Secretary of Energy, or a designee
of the Secretary of Energy, on any assessment or research
relating to the extraction and refining of the isotope
helium-3 from crude helium at the Federal Helium Reserve (as
that term is defined in the amendments made by section 2) or
along the Federal Helium Reserve pipeline system, including--
(A) gas analysis;
(B) infrastructure studies; and
(C) cooperation with private helium refiners.
(2) Feasibility study.--The Secretary of the Interior shall
assess the feasibility of establishing a facility to separate
the isotope helium-3 from crude helium at--
(A) the Federal Helium Reserve; or
(B) an existing helium separation or purification facility
connected to the Federal Helium Reserve pipeline system.
(3) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary of the Interior shall
submit to the Committee on Natural Resources of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate a report that contains a description
of the results of the assessments conducted under this
subsection.
The Acting CHAIR. No amendment to that amendment in the nature of a
substitute shall be in order except those printed in House Report 113-
47. Each such amendment may be offered only in the order printed in the
report, by a Member designated in the report, shall be considered read,
shall be debatable for the time specified in the report, equally
divided and controlled by the proponent and an opponent, shall not be
subject to amendment, and shall not be subject to a demand for division
of the question.
Amendment No. 1 Offered by Mr. Collins of Georgia
The Acting CHAIR. It is now in order to consider amendment No. 1
printed in House Report 113-47.
Mr. COLLINS of Georgia. Mr. Chair, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
Page 18, line 14, after ``funds'' insert ``and deficit
reduction''.
Page 18, line 18, before the period insert ``and used to
reduce the annual Federal budget deficit''.
The Acting CHAIR. Pursuant to House Resolution 178, the gentleman
from Georgia (Mr. Collins) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from Georgia.
{time} 1020
Mr. COLLINS of Georgia. Mr. Chair, I offer this amendment to ensure
that any excess funds as a result of this bipartisan bill are used to
reduce the annual Federal budget deficit.
I am pleased that my colleagues on both sides of the aisle have
proposed a commonsense bill that speaks to the heart of the free-market
system.
The Congressional Budget Office estimates, as a result of this bill,
$340 million will be returned to the Federal Government. This amendment
ensures that every penny of savings will go toward deficit reduction,
furthering the goal of this House to create jobs and encourage economic
growth.
This body has made significant strides in putting our country back on
a path to fiscal prosperity. Passing a budget that will seek to balance
in 10 years is no small achievement, but there is still more that we
can do. This bill is just one example of savings that we can achieve by
allowing innovation and private industry to do what it does best.
The underlying bill completes the privatization of the Federal Helium
Reserve in a competitive market fashion, respecting hard-earned
taxpayer dollars while ensuring the stability of the helium market. As
we have seen in the current helium market, innovation thrives when
government gets out of the way of private industry.
By applying free-market principles, this bill will spur cutting-edge
research, development, and production of helium while bringing
transparency and responsibility to how taxpayers' dollars are spent.
In my home State of Georgia, this legislation draws broad support
from job creators such GE Energy, IBM, Kodak, Philips, Siemens, and
Texas Instruments.
I thank the gentleman from Washington and the gentleman from
Massachusetts for their leadership on this issue. This legislation is a
perfect example of how good policy knows no party line.
With that, I urge my colleagues to support this amendment.
Mr. HASTINGS of Washington. Will the gentleman yield?
Mr. COLLINS of Georgia. I yield to the gentleman.
[[Page H2361]]
Mr. HASTINGS of Washington. I thank the gentleman for bringing this
amendment to the floor, and I intend to support it. With our fiscal
situation in this country, this is a good addition to the amendment;
and I thank the gentleman for bringing it forward.
Mr. HOLT. Will the gentleman yield?
Mr. COLLINS of Georgia. I yield to the gentleman from New Jersey.
Mr. HOLT. I appreciate the gentleman's amendment, which reiterates
language that is in the underlying bill, and we have no objection to it
on the minority side. I applaud the gentleman for bringing it forward.
Mr. COLLINS of Georgia. I thank the gentleman.
Mr. Chair, at this point, I'm pleased to yield 2 minutes to my friend
from Georgia (Mr. Scott), the cosponsor of this amendment.
Mr. AUSTIN SCOTT of Georgia. Mr. Chairman, I appreciate the gentleman
from Georgia for allowing me a few minutes to speak on this issue.
I rise today in support of the Collins-Scott amendment, which
requires that any funds received from the sale of helium will be used
to pay down our country's debt.
I'm sure many of my colleagues would agree when I say our country's
deficit is one of the top problems that we face. In fact, if we
continue on this path, by the time my 13-year-old son is a freshman in
college, this country will be paying more interest on the debt than we
spend on national defense.
I understand this problem cannot be solved with one swift move;
however, if we are not able to make reasonable changes to policies and
allow additional revenue to reduce our debt, our children and
grandchildren will not be given the chance to continue this country's
greatness.
Due to the importance of protecting our children and grandchildren,
we should support this amendment. It puts us one step closer to
addressing our country's biggest problem. For this reason, I ask my
colleagues to support this amendment.
Mr. COLLINS of Georgia. This is a commonsense amendment that will
only enhance the benefits achieved by the underlying bill and by
ensuring we privatize deficit reduction and effectively utilize the
savings the bill creates.
I yield back the balance of my time.
The Acting CHAIR. Does any Member wish to claim 5 minutes in
opposition?
Seeing none, the question is on the amendment offered by the
gentleman from Georgia (Mr. Collins).
The amendment was agreed to.
Amendment No. 2 Offered by Mr. Dent
The Acting CHAIR. It is now in order to consider amendment No. 2
printed in House Report 113-47.
Mr. DENT. I seek to offer an amendment and address the House.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
Page 19, after line 17, insert the following:
(c) Existing Contracts Not Affected.--
(1) In general.--Nothing in this Act or the amendments made
by this Act shall be construed to affect any covered contract
between the Bureau of Land Management and any person that
owns--
(A) helium stored in the Federal Helium Reserve (as that
term is used in those amendments); or
(B) a helium enrichment unit that is part of the Federal
Helium Reserve.
(2) Covered contract.--In this subsection the term
``covered contract'' means a contract relating to the
operation of the Federal Helium Reserve, that is in effect on
the date of enactment of this Act.
The Acting CHAIR. Pursuant to House Resolution 178, the gentleman
from Pennsylvania (Mr. Dent) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from Pennsylvania.
Mr. DENT. Mr. Chairman, our amendment, the Dent-Higgins-Esty
amendment, ensures the continued supply of helium for end users while
requiring the BLM, Bureau of Land Management, to honor existing
contracts for the supply and delivery of this vital resource. Most
importantly, the amendment protects American manufacturers who use
helium from the uncertainty of a disrupted helium supply. It's
absolutely essential.
Some of my colleagues have repeatedly stated that helium has been
given away by BLM at rock-bottom prices to ``a monopoly of refiners.''
Respectfully, the current price structure says otherwise.
Since BLM began selling off helium under this program, during most
years far less than all the helium available to be purchased was
purchased. In fact, during some years, no helium was purchased at all.
If the price were really so low, wouldn't all the available helium
have been purchased? Instead, the BLM price set for the purchase of
crude helium has been higher than the crude price for helium purchased
elsewhere in the United States. Further, there is absolutely no bar to
the taxpayer getting much more revenue from helium sales today. BLM can
impose higher prices for helium right now. In fact, over the past 3
years, BLM has raised its prices by 30 percent.
When the Congress in 1996 decided to privatize helium in the BLM
reserve, a few companies stepped up and spent tens of millions of
dollars to build a helium enrichment unit, which the BLM operates, a
highly unusual public-private partnership. If there are only a few
companies who refine helium out of the BLM reserve today, it is because
they, and not their competitors, chose to make investments that have
benefited our Nation's manufacturers and society generally.
Our amendment does not seek to preserve a so-called ``monopoly'' over
our Federal helium supply. Instead, our amendment seeks to uphold these
existing contract and property rights while ensuring a continued supply
of helium for domestic manufacturers. In fact, many welders, the
Welders Association, Welders Distributors Association, strongly support
this amendment because they are deeply concerned. I'm just going to
quickly read what they said. They are deeply concerned about ``the
effect of the remedies fashioned in H.R. 527 on the stability of the
existing market for helium particularly as they affect the ability to
meet contractual obligations for product supply.''
With that, I reserve the balance of my time.
Mr. HASTINGS of Washington. Mr. Chairman, I rise to claim time in
opposition.
The Acting CHAIR. The gentleman is recognized for 5 minutes.
Mr. HASTINGS of Washington. I yield myself 2 minutes.
Mr. Chairman, I oppose this amendment.
While it is being sold as an attempt to protect contract and property
rights, it does none of these things because there are no rights that
are violated by this bill.
What the amendment actually does is undermine the free-market
competition that is embodied in H.R. 527 that will ensure a fair return
to taxpayers on the Federal helium that is in the repository.
This amendment seeks to guarantee a special carve-out for primarily
three companies and thus block competition. For over a decade, these
three companies have profited from helium handouts at low market prices
that were granted to them by BLM. All of that ends, Mr. Chairman, in
October of this year. These handouts end because the contracts say that
when the money is paid back that the Federal Government has invested,
these contracts end.
So this amendment does not protect existing valid contracts because
they expire in October. What the amendment actually would do is revise
the expiring special handouts of these three companies. The amendment
would shut down competition from other bidders who may be willing to
bid for a higher price of the helium.
I have a letter from three companies who jointly express strong
opposition because it would prevent them in the future from bidding on
this helium. And to be clear, there are no helium distributors or
manufacturers of helium who are advocating for this amendment. It is
just the three refiners.
To repeat, H.R. 527 does not alter or end existing contracts. In the
actual clauses of these contracts, it specifically stated that the
contracts are contingent upon BLM continuing to have authorization to
run the reserves. That ends in October.
BLM has been selling helium at below-market prices, and I'll point
that out later. But what this amendment really attempts to do is to end
what should not be done.
With that, I reserve the balance of my time.
[[Page H2362]]
Mr. DENT. At this time, I would like to yield 1 minute to my
colleague from New York (Mr. Higgins).
{time} 1030
Mr. HIGGINS. I thank my friend and colleague for yielding.
Mr. Chairman, I would like to thank Congressman Charlie Dent and
Congresswoman Esty for working together on this bipartisan amendment.
Our amendment would ensure that the Bureau of Land Management
implements free market reforms while respecting its contractual
obligations. High-tech manufacturing, MRIs, nuclear power reactors, and
a host of critical national defense applications require helium.
Congress asked American companies to partner with the Federal
Government to build the infrastructure needed to extract, store, and
refine and bring to market this valuable domestic resource. Now that
the infrastructure is built out, this legislation seeks to break our
contracts with those partners. This is unfair and unnecessary.
Our amendment simply affirms that the Bureau of Land Management will
honor its existing contracts that are set forth to expire over the next
couple of years. I urge a ``yes'' vote on this bipartisan amendment to
demonstrate that we can reform our helium policy in a way that respects
the agreements and contracts we've made.
Mr. HASTINGS of Washington. Mr. Chairman, I am very pleased to yield
2 minutes to the gentleman from New Jersey (Mr. Holt), a cosponsor of
H.R. 527.
Mr. HOLT. Mr. Chairman, I thank the chairman of the committee again
for bringing forward this bipartisan legislation, and I rise in strong
opposition to this amendment.
The Federal Helium Reserve is in rapid decline. It is being
exhausted. At the current drawdown rate, in 5 or 6 or 7 years the
helium in the reserve will be largely depleted.
The amendment by Mr. Dent seeks to run out the clock on this
legislation to allow the existing regime to stand and prevent the
reforms that H.R. 527 would bring forward. H.R. 527 does not alter or
end the contracts that the refiners have with the Bureau of Land
Management, but if we do nothing and allow the gentleman's amendment to
go forward, under existing law and terms of those contracts, the entire
helium program would come to an end in October of 2013--this year.
The amendment would delay the implementation of the reforms in the
bill until 2018 at which time it is likely there would be little helium
left to distribute to anyone, to the hospitals and the doctors who need
it, to the electronics manufacturers who need it, to the scientists and
researchers who need it. This amendment would gut the bipartisan
reforms of the bill, and it should be defeated.
Although the gentleman claims he wants to prevent disruption in the
supply, by preventing this legislation, he would in fact do just that.
He would create disruptions in the supply.
Mr. DENT. Mr. Chairman, I yield 1 minute to the gentlelady from
Connecticut (Ms. Esty).
Ms. ESTY. Mr. Chairman, I rise in support of this amendment to H.R.
527, the Responsible Helium Administration and Stewardship Act. I would
like to thank Representative Dent and Representative Higgins for
working together on this bipartisan amendment.
Our amendment is rather straightforward. It is about fairness and
honoring contracts. At a time in our Nation's history when we are
examining public-private partnerships to rebuild our infrastructure and
create jobs, what kind of signal would we be sending to the private
sector? What kind of certainty are we providing to the private sector
that even if you have a valid contract that expires in 2015, the
Federal Government will throw it out and change the rules?
We can pass a bill to prevent a global helium shortage by allowing
the remainder of the helium from the reserve to be sold, but we should
not ignore the contracts that BLM has already signed. I urge a ``yes''
vote on this bipartisan amendment.
Mr. DENT. Mr. Chairman, how much time remains?
The Acting CHAIR. The gentleman from Pennsylvania has 45 seconds
remaining. The gentleman from Washington has 1\1/4\ minutes remaining.
Mr. HASTINGS of Washington. Do I have the right to close?
The Acting CHAIR. Yes.
Mr. DENT. Mr. Chairman, I just want to quickly address a few of the
issues.
My friend, Mr. Holt, said that these reservoirs will be depleted. I
agree. The issue is who's going to invest in an enrichment and refining
facility at a reservoir that's going to be depleted in 5 years.
Nobody's going to make that investment. That's really what's at issue
here.
The prices of helium have gone up. BLM can charge more. Our amendment
is about respecting preexisting contracts and about protecting property
rights while ensuring continued supply of helium to American
manufacturers.
Without this amendment, there will be a real disruption of supply for
helium because they won't be contractually able to release that helium.
They will be under no obligation to release it, so I think that is the
greatest threat. This amendment protects the helium supply. As has been
mentioned, MRIs, computer chips, and fiber optics all need this.
American manufacturing needs this. Support this amendment. Vote for a
helium supply. And again, vote to support our welders.
I yield back the balance of my time.
Gases and Welding
Distributors Association,
Doral, FL, April 25, 2013.
Hon. Charlie Dent,
House of Representatives,
Washington, DC.
Dear Mr. Dent: The Gases and Welding Distributors
Association (``GAWDA'') offers its support to your proposed
amendment to H.R. 527, legislation to reauthorize the sale of
the Federal Helium Reserve.
GAWDA is a national trade association representing the
interests of some 500 companies that distribute compressed
and liquefied gases and related welding equipment, and
includes some 300 additional companies that supply products
or services to the gases and welding industry. GAWDA
distributor members sell a variety of products, including
helium, oxygen, argon, nitrogen and carbon dioxide, as well
as specialty gases and mixtures, to customers involved in
manufacturing, construction, welding, research, health care,
and biomedical engineering.
Most GAWDA members are small businesses. Approximately 85
percent of GAWDA distributors have less than $10 million in
annual gross revenue, so they have limited leverage in
negotiating supply agreements for products. In the vast
majority of cases, GAWDA distributors will contract
exclusively with a single manufacturer (or in the case of
helium, a refiner) for a comprehensive menu of gas products.
The contract generally will provide all of the distributor's
needs for all of those gases.
In addition, the distributor will generally contract with
its customers in an exclusive ``requirements'' arrangement to
supply all of the customer's needs for a variety of gases as
well. A small distributor might have a couple of dozen
contracts to supply helium and other gases to customers,
while a large distributor might have several hundred or more
of these requirements contracts.
The GAWDA distributor will typically purchase bulk helium
in gaseous form from a refiner; the distributor will then
repackage the helium into compressed gas cylinders and
deliver them to customers for their use.
GAWDA distributors are concerned, however, about the effect
of the remedies fashioned in H.R. 527 on the stability of the
existing market for helium, particularly as they affect the
ability to meet contractual obligations for product supply.
A periodic auction mechanism would set up a spot market for
helium. If an established refiner is not able to secure all
of the crude helium that it requires to meet the supply
obligations set out in its contracts, then some distributor
customers will receive less than their contractual allotments
of helium, or perhaps none at all. The distributor will be
forced to seek other sources of supply, presumably only if a
force majeure clause in the agreement allows the distributor
to obtain replacement product from another supplier.
In turn, if the distributor defaults, the distributor's
customers might be forced to seek alternative supplies of
helium for at least part of their needs for that period, and
to pay above market prices to the winning auction bidder(s)
to ensure a continuous supply of product. This also raises
questions of the effect on the contractual obligations to
sell and purchase the other gases in the contracts.
This same scenario will play out each time an auction is
held, several times a year. Refiners, distributors and end
users will not know which parties will have adequate supplies
of helium to meet existing contractual demands. This will
generate legal questions about contract default, partial
product allocations, mitigation of damages, and obligations
to cure, as well as commercial questions about which parties
may be able to meet supply obligations on a consistent basis.
The distributor will have to resolve these issues with each
customer for that auction period; when another auction takes
place, and different sales volumes of helium are awarded by
BLM to new bidders, the distributors will have to go through
the same
[[Page H2363]]
legal and commercial exercise to ensure that each of their
customers will receive enough product to meet its
requirements.
An unreliable product stream for helium will make it
difficult for any distributor to entertain long-term,
exclusive supply arrangements with customers that foster
stable commercial relations and support economic growth.
Your amendment would protect those existing agreements
between the Bureau of Land Management and refiners for a
sufficient period to allow refiners and distributors to
develop alternative arrangements and to access new supplies
of crude helium. That approach will help to ensure a reliable
supply of this critical product to all end users.
Thank you for your assistance with this issue.
Best Regards,
Richard P. Schweitzer,
General Counsel.
Mr. HASTINGS of Washington. I yield myself the balance of my time.
The assertion is made that this violates contracts. I want to be very
specific: current law says that when the debt is paid back, the
contracts that are entered into expire. Therefore, we are not violating
any contracts because on October 1 that will happen.
Secondly, the pricing mechanism. I pointed out in opening remarks
that the three refiners are the ones that are benefiting, and this
chart shows how. This is what they are paying, the blue line. That's
the bottom line. The red line is the market price. The yellow in
between is what the refiners are accruing as far as profits are
concerned. We're simply saying the market ought to dictate who gets
that benefit, and that's precisely what H.R. 527 does. So this
amendment simply prolongs the yellow, if you will, on this chart
longer, and only three companies benefit by that. I don't think that's
good for the taxpayers because the taxpayers are the ones that are
failing or getting the low end of the deal with that yellow line.
So while I understand where the gentleman is coming from, and I
respect him for bringing this issue to the floor--it is good to have a
debate on it--no contracts are violated under current law. I urge my
colleagues to reject this amendment.
I yield back the balance of my time.
The Acting CHAIR. The question is on the amendment offered by the
gentleman from Pennsylvania (Mr. Dent).
The question was taken; and the Acting Chair announced that the noes
appeared to have it.
Mr. DENT. Mr. Chairman, I demand a recorded vote.
The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment offered by the gentleman from Pennsylvania
will be postponed.
Amendment No. 3 Offered by Mr. Holt
The Acting CHAIR. It is now in order to consider amendment No. 3
printed in House Report 113-47.
Mr. HOLT. Mr. Chairman, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
Page 27, strike ``and'' at line 6, and after line 6 insert
the following (and redesignate the subsequent paragraph
accordingly):
(4) complete an assessment of options for ensuring a
domestic helium supply in the future, including--
(A) an analysis of how the Federal Helium Reserve has
influenced domestic and global helium supply and prices
historically; and
(B) an assessment of options for how the Federal Helium
Reserve could promote the long term availability and security
of domestic helium supplies; and
The Acting CHAIR. Pursuant to House Resolution 178, the gentleman
from New Jersey (Mr. Holt) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from New Jersey.
Mr. HOLT. Mr. Chairman, I yield myself such time as I may consume.
My amendment is quite simple. It would expand the study section of
the act to provide an assessment of how the eventual closure of the
Federal Helium Reserve would influence the availability of this
critical resource in the future.
Let me take just a moment to say a little bit about why this is
important. Helium is the second-lightest gas in existence. It remains
liquid down to absolute zero. It is chemically very inert. It is hardly
soluble in water or other fluids. It can be made into a quantum
superfluid that flows without any viscous resistance at all. These are
unique properties that make helium invaluable, necessary, irreplaceable
for uses in magnetic resonance imaging in doctors' offices and
hospitals, for fabricating electronic devices, for all sorts of
research, whether it be in quantum computing or superfluids in any
number of other areas.
Why is this a policy issue worthy of the consideration of the U.S.
Congress? Well, because this invaluable, irreplaceable element is very
rare on Earth. It is in fact the second most common element in the
universe, but it has long since risen up through the atmosphere of the
Earth and vanished into space. And small amounts of helium are created
moment by moment deep in the Earth through radioactive decay caught in
natural gas reserves, along with methane and the other things that we
call natural gas. But it is rare, and it is difficult to separate, and
yet we need it.
Farsighted legislators three-quarters of a century ago began
stockpiling helium. They thought it would be used for dirigibles and
blimps. They weren't sure what else it would be used for, but they
understood helium had some very special properties.
{time} 1040
It was a good investment for taxpayers. It was a very good investment
for taxpayers that this stockpile was created.
Now the stockpile is running low because of decisions by Congress in
past years. It's important that, as we make the decisions and the
changes that we make with this legislation, we not fail to recognize
possible future uses, possible future demands, and possible failure of
the market to provide an adequate supply of helium to meet those
demands.
I know there is an ideology that's prevalent around here for any
commodity, for any human need, that the market will provide. In fact,
it doesn't always. And in this case, in the helium over the decades, it
would not have, had it not been for the Federal Reserve. So it is
important that we stop and take a look at the implications for the
future.
And so my amendment would simply expand the study section that
already exists in this legislation to make sure that we look at
possible future uses, likely future supplies, and making sure that we
are prepared to have an adequate supply of this valuable resource into
the future. It should be a noncontroversial amendment. I hope it will
be unopposed, and I urge my colleagues to support it.
I reserve the balance of my time.
Mr. HASTINGS of Washington. Mr. Chairman, I ask unanimous consent to
claim time in opposition to the amendment, although I am not opposed to
the amendment.
The Acting CHAIR. Without objection, the gentleman is recognized for
5 minutes.
There was no objection.
Mr. HASTINGS of Washington. Mr. Chairman, I yield myself as much time
as I may consume.
I want to start by saying that the development of this legislation
has truly been a bipartisan effort. I want to thank my colleague from
New Jersey, who has been a leader in helping us bring this legislation
to the floor.
One of the main goals of H.R. 527 is to stop the imminent shutdown of
the Federal helium program this October by establishing a new program
to complete the privatization of the helium reserve. However, this
action remains only a Band-Aid to our long-term helium supply.
Helium, like many other resources, is something that requires
significant investment and development to bring to market. While this
bill will keep the helium flowing from the reserve, the future of the
reserve is limited to only a handful of years. So the gentleman's
amendment is really a question of what do we do next, and that's a good
question.
The idea that, when the reserve closes, America could be left at the
mercy of Qatar or Russia for securing our domestic helium is not a
prospect that we relish any more than being dependent on China for rare
Earth materials. And yet no one thinks that the solution is for the
government to jump back into the helium business. Instead, we need to
continue our focus on this issue to prevent resource scarcity that
could threaten our manufacturing and national security.
[[Page H2364]]
While I understand there have been some initial conversations, I want
to make it clear that this is not the last time that the committee will
focus on the issue of helium. It is my intention that the committee
examine other areas where we may be able to expand helium supply or
promote additional steps for conservation.
The report directed to be developed in this bill will help guide our
effort forward, and the gentleman's amendment will add additional
important questions to help provide us a path forward. But it is up to
us to act and continue to focus on what is a critical national security
and economic security concern: a secure, stable supply of helium.
So I look forward to continuing to work with the gentleman from New
Jersey as we seek these solutions, and I think his amendment adds to
that prospect.
With that, I support the amendment and yield back the balance of my
time.
Mr. HOLT. Mr. Chairman, I yield back the balance of my time.
The Acting CHAIR. The question is on the amendment offered by the
gentleman from New Jersey (Mr. Holt).
The amendment was agreed to.
Amendment No. 4 Offered by Mr. Thornberry
The Acting CHAIR. It is now in order to consider amendment No. 4
printed in House Report 113-47.
Mr. THORNBERRY. Mr. Chairman, I offer the amendment made in order
under the rule.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
Add at the end the following:
SEC. __. ADDITIONAL CONNECTIONS TO THE FEDERAL HELIUM
RESERVE.
The Secretary of the Interior may allow any person not
connected to the Federal Helium Reserve, as that term is
defined under section 2 of the Helium Act (50 U.S.C. 167), as
amended by this Act, to connect to the Federal Helium Reserve
for the purpose of storing helium, subject to such storage
fees as may be required by the Secretary. Withdrawal of such
helium shall be governed by that Act.
The Acting CHAIR. Pursuant to House Resolution 178, the gentleman
from Texas (Mr. Thornberry) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from Texas.
Mr. THORNBERRY. Mr. Chairman, let me first commend and express my
appreciation to Chairman Hastings and Mr. Holt and others who have
worked on this legislation. Indeed, we have come a long way from the
days when helium was essentially a government-run monopoly to this
legislation, which helps bring in more market forces, more competition,
more free enterprise, and, I think, will help move toward developing
more supplies of helium in the future, as was just discussed on the
last amendment.
It is in exactly that spirit that I offer this amendment which seeks
to affirm the authority of the Secretary of the Interior to allow
others who are not currently connected to the helium repository to
connect to it and to store their helium there, assuming, of course,
they've got to pay their own way. So whatever costs are incurred with
allowing others to connect and to store, those costs have to be met by
the individuals, not by the taxpayer.
But by doing that, I think we do at least take a step towards
encouraging more helium supplies to be developed. And the side benefit
is, as these other helium supplies are stored in the repository, that
helps keep the pressure up in the dome so that, ultimately, more
helium, government helium and private helium, can be extracted.
So I think this is perfectly in keeping with the theme of the bill.
It moves in the right direction to encourage the expansion of more
helium supplies, and I hope that the Members will consider it
favorably.
Mr. HASTINGS of Washington. Will the gentleman yield?
Mr. THORNBERRY. I yield to the chairman.
Mr. HASTINGS of Washington. I thank the gentleman for bringing this
amendment to the floor. He made the observation in his debate that this
is something that we were talking about in the previous debate, because
we're going to have to have more helium; and market forces, I believe,
are one way to do that, and I think his amendment addresses that.
I support the amendment.
Mr. THORNBERRY. I thank the gentleman.
Mr. HOLT. Will the gentleman yield?
Mr. THORNBERRY. I will be happy to yield to the gentleman from New
Jersey (Mr. Holt).
Mr. HOLT. I thank my friend from Texas, and I think the gentleman's
amendment is a good one. It will clarify that producers of helium may
connect to the Federal helium reserve to store helium. And by seeking
to provide incentives for additional production and storage, I think
his amendment will provide a public service.
I think, as the gentleman has said, we should examine ways that we
can use the reserve to maximize the American supply of helium in the
decades ahead. So I support him in this, and I urge all of my
colleagues to do so.
Mr. THORNBERRY. I thank both gentlemen, Mr. Chairman.
I yield back the balance of my time.
The Acting CHAIR. The question is on the amendment offered by the
gentleman from Texas (Mr. Thornberry).
The amendment was agreed to.
Mr. HASTINGS of Washington. Mr. Chairman, I move that the Committee
do now rise.
The motion was agreed to.
Accordingly, the Committee rose; and the Speaker pro tempore (Mr.
Dent) having assumed the chair, Mr. Hultgren, Acting Chair of the
Committee of the Whole House on the state of the Union, reported that
that Committee, having had under consideration the bill (H.R. 527) to
amend the Helium Act to complete the privatization of the Federal
helium reserve in a competitive market fashion that ensures stability
in the helium markets while protecting the interests of American
taxpayers, and for other purposes, had come to no resolution thereon.
____________________