[Senate Report 104-302]
[From the U.S. Government Publishing Office]
Calendar No. 477
104th Congress Report
SENATE
2d Session 104-302
_______________________________________________________________________
HELIUM PRIVATIZATION ACT OF 1996
_______
June 27, 1996.--Ordered to be printed
_______________________________________________________________________
Mr. Murkowski, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany H.R. 3008]
The Committee on Energy and Natural Resources, to which was
referred the Act (H.R. 3008) to amend the Helium Act to
authorize the Secretary to enter into agreements with private
parties for the recovery and disposal of helium on Federal
lands, and for other purposes, having considered the same,
reports favorably thereon with an amendment and recommends that
the Act, as amended, do pass.
The amendment is as follows:
On page 12, after line 18, insert the following new
section:
SEC. 8. REPORT ON HELIUM.
(a) Not later than three years before the date on which the
Secretary commences offering for sale crude helium under Section 8, the
Secretary shall enter into appropriate arrangements with the National
Academy of Sciences to study and report on whether such disposal of
helium reserves will have a substantial adverse effect on U.S.
scientific, technical, biomedical, or national security interests.
(b) Not later than 18 months before the date on which the Secretary
commences offering for sale crude helium under Section 8, the Secretary
shall transmit to the Congress--
(1) the report of the National Academy under subsection (a);
(2) the findings of the Secretary, after consideration of the
conclusions of the National Academy under subsection (a) and
after consultation with the U.S. helium industry and with heads
of affected Federal agencies, as to whether the disposal of the
helium reserve under Section 8 will have a substantial adverse
effect on the U.S. helium industry, the U.S. helium market or
U.S., scientific, technological, biomedical, or national
security interests; and
(3) if the Secretary determines that selling the crude helium
reserves under the formula established in Section 8 will have a
substantial adverse effect on the U.S. helium industry, the
U.S. helium market or U.S. scientific, technological,
biomedical, or national security interests, the Secretary shall
make recommendations, including recommendations for proposed
legislation, as may be necessary to avoid such adverse effects.
Purpose
The purpose of this Act is to preclude the Federal
Government from refining and selling refined helium, to dispose
of the United States helium reserve, and for other purposes.
Background and Need
Helium has unique properties that make it useful for
science and industry. It is used in cancer research, to cool
nuclear reactors, and by NASA for its shuttle launches. In
1925, the Federal helium program was officially placed under
the control of the Bureau of Mines (BOM) when Congress enacted
the Helium Act of 1925. In 1929, the BOM's large scale helium
extraction and purification facility was built and began
operating near Amarillo, Texas.
Concerns that natural gas supplies were tapering off
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 to store it for later use by the Federal Government. Also,
the law authorized storage of helium, maintenance of helium
production and purification plants, as well as related helium
transmission and shipping facilities.
Beginning in 1960, the Federal Government contracted with
private companies to supply crude helium to the BOM facility,
in the process helping to foster a private helium refining
industry. To finance purchases, the BOM borrowed $252 million
from the Treasury, intending that future sales would repay the
loan. Federal demand, however, failed to meet projections, and
contracts for additional helium were canceled in 1973. By that
time, the BOM has amassed a crude helium stockpile of
approximately 34 billion cubic feet and a debt that has since
grown to $1.4 billion, including interest.
Under current law, Federal agencies and their contractors
must purchase refined helium from the BOM, but this Federal
market is small compared to the total refined helium market,
which is almost entirely supplied by the private helium
refining industry. This industry is much more efficient than
the BOM, using 500 people to refine and distribute 90% of the
total helium market (approximately 3 billion cubic feet per
year) compared to 175 people doing those operations at BOM's
Amarillo facility, which handles the remaining 10%
(approximately 300 million cubic feet per year). One factor in
this greater efficiency is that private industry's facilities
are relatively new, whereas BOM facilities are between 40 and
75 years old. A study contracted by BOM in 1988 estimated that
it would cost approximately $20 million to modernize the
facilities. BOM also has high overhead cost because it
maintains its own personnel, contracting, and other
administrative offices. The private industry is more efficient
in shipment and distribution, transporting helium in its more-
dense liquid form, rather than the gaseous form primarily used
by the BOM.
Under the 1960 Helium Act, the BOM was directed to repay
the original Treasury loans with compound interest by 1995. To
date, the Bureau has not repaid the loans, In fact, no payments
were made between 1965 and 1975 or between 1979 and 1982.
Repayments did not begin in earnest until 1983, ranging from $2
million to $4 million per year. Since a price increase in 1991,
the amount has increased to $9 million per year. The BOM has
repaid the Treasury approximately $83 million since 1961, a
small fraction of the soaring debt, interest on which is now
over $66 million per year. This Act caps the debt at current
levels and provides a mechanism for repayment.
``The Helium Act of 1996,'' as amended, would: close down
the Federal helium program's marketing and refining duties and
turn those functions over to the private sector; repay the debt
owed to the Treasury for helium purchased in the 1960's to
build up the stockpile; and establish a mechanism for selling
off the 34 billion cubic feet in the stockpile without
disrupting the market. The legislation repeals the Secretary's
authority to borrow under the Helium Act. Authorization would
continue for the Secretary to store, transport, and withdraw
crude helium, and maintain and operate the existing crude
helium storage at the Bureau of Mines Cliffside Fields. The
Secretary would be required to impose fees for helium storage,
withdrawal, and transportation services. In addition, the
Secretary is directed to make arrangements with the National
Academy of Sciences to study and report on whether selling
helium reserves will have any substantial adverse effects on
the industrial, scientific and national security interests of
the United States.
The Committee believes that private industry is capable of
servicing the world's helium markets, and that a Government-
owned stockpile of helium is neither a necessary nor
appropriate function of the Government. The Committee has
concluded that the sale of the Federal helium stockpile will
not have a substantial adverse effect on U.S. scientific,
technological, biomedical, or national security interests. In
order to validate the Committee's findings, language has been
included directing the Secretary to enter into appropriate
arrangements with the National Academy of Science (NAS) to
conduct a formal inquiry into this aspect of the legislation.
Language in the study section of the bill is not intended in
any way to limit the scope of the NAS study exclusively to the
question of whether disposal of the Federal stockpile would
substantially adversely affect these interests. Indeed, the
Committee believes that the answer to this question is
inextricably linked to more global supply and demand forces at
work in the private helium marketplace and fully expects that
the NAS study will validate this contention. It is the
Committee's intention that the Secretary demonstrate that any
future legislation he might suggest will result in substantial
improvements in the long-term supply of helium.
It is the Committee's intention that the Secretary of the
Interior continue to monitor helium production and helium
reserves in the United States and periodically prepare reports
regarding the amount of helium produced and the quantity of
crude helium in storage in the United States.
The Committee understands that the Department of the
Interior's Office of Inspector General has been conducting
annual financial audits of the Federal helium program. In
addition, the Committee understands that financial statements
of the Helium Fund may be audited by the Comptroller General,
at his discretion, or at the request of a committee of the
Congress. The Committee continues to support these activities.
Finally, the Committee recognizes that Federal employees will
be separated as a result of this legislation. Consequently, it
is the Committee's intention that the Secretary may use a
portion of the unexpended balance of funds available for the
administration of the Federal helium program, to the extent
necessary, to provide employment services, retirement benefits,
and other appropriate options to ease the effects of
termination of the Federal helium program on the employees in
Amarillo, Texas.
Legislative History
On May 1, 1995, the Helium Act of 1995 was introduced by
Senator Craig Thomas. On July 25, 1995, the Subcommittee on
Forests and Public Land Management held a hearing on helium
refining and marketing operations reform.
Committee Recommendation and Tabulation of Votes
The Senate Committee on Energy and Natural Resources, in
open business session on June 19, 1996, by voice vote of a
quorum present, recommends that the Senate pass H.R. 3008, if
amended as described herein.
Section-by-Section Analysis
Section 1.--Is the short title.
Section 2.--Provides that unless otherwise noted, this Act
amends the 1960 Helium Act (50 U.S.C. 167 to 167n).
Section 3.--Amends sections 3, 4, and 5 of the 1960 Helium
Act as follows:
New section 3(a) would authorize the Secretary of the
Interior to enter into contracts with private parties to
recover and dispose of helium on Federal lands.
New section 3(b) would authorize the Secretary of the
Interior to store, transport, and withdraw helium in accordance
with the bill.
New section 4(a) would authorize the Secretary to store,
transport, and withdraw crude helium and to maintain and
operate crude helium storage at the Bureau of Mines Cliffside
Field, together with related helium transportation and
withdrawal facilities.
New section 4(b) would require the Secretary to cease
producing, refining, and marketing refined helium eighteen
months after enactment of the bill.
New section 4(c) would require the Secretary to dispose of
all facilities, equipment and other real and personal property
held for the refining, producing, and marketing of refined
helium within 36 months after enactment of the bill. Disposal
of such property would be in accordance with the Federal
Property and Administrative Services Act of 1949. Facilities,
equipment, and other property required for the storage,
transportation, and withdrawal of crude helium stored at the
Cliffside Field would be exempted from the requirements of this
section.
New section 4(d) provides that any contract for refined
helium in effect on the date of enactment of the bill would
stay in effect until the facilities listed in section 4(c) are
sold. This section also provides for any costs associated with
termination of such contracts. Funds for such costs would be
drawn from the Helium Fund.
New section 5 provides for full cost recovery for helium
storage, transportation, or withdrawal services provided by the
Secretary.
Section 4.--Provides for the sale of crude helium.
Subsection (a) requires that Federal agencies purchase
their refined helium from private industry.
Subsection (b) precludes the Secretary from making sales of
crude helium in amounts that would disrupt the market.
Subsection (c) directs that all funds collected pursuant to
this section shall be deposited against the helium debt, which
would be frozen at the amount outstanding on October 1, 1995.
The minimum price of crude helium sold by the Secretary would
be determined on the basis of the outstanding amount owed
against the debt in comparison with the volume of crude helium
in the Cliff Side Reservoir.
Subsection (d) would be amended to require that all funds
received from the sale or disposition of helium produced under
a Federal lease be deposited against the helium debt.
Subsection (e) would be repealed.
Subsection (f) would be amended to provide that all funds
generated from the disposal of facilities and sales would be
deposited in the helium fund to be paid against the helium
debt, and that such fund's balance would not be greater than $2
million per year. Once the helium debt is repaid, the fund
would be abolished and all moneys received under the Helium Act
would be deposited into the general fund of the U.S. Treasury.
Section 5.--Amends section 8 of the Act as follows:
Subsection (a) would require the Secretary, no later than
2005, to commence making sales of the crude helium in the
Cliffside Reservoir, and dispose of all such reserves by 2015,
except for 600 million cubic feet. Such sales would be made in
consultation with the helium industry to provide for minimum
market disruption. This subsection ensures repayment of the
helium debt.
Subsection (b) provides that discovery of additional
reserves would not affect the duty of the Secretary to sell the
crude helium in the reservoir.
Section 6.--Repeals section 12 and 15 of the Act.
Section 7.--Directs the Secretary to convey certain land in
Potter County, Texas to the Texas Plains Girl Scout Council.
Section 8.--Subsection (a) directs the Secretary of the
Interior to make arrangements with the National Academy of
Sciences to study and report on whether selling the helium
reserves will have a substantial adverse effect on U.S.
scientific, technical, biomedical, or national security
interest.
Subsection (b) directs the Secretary to consult with
representatives of the U.S. helium industry and with heads of
affected Federal agencies to determine if selling the helium
reserve as proposed under section 8 of the bill will have a
substantial adverse impact on the U.S. helium industry, market,
or U.S. scientific interest. The Secretary is directed to make
recommendations to Congress as may be necessary to avoid
adverse effects to the helium market or U.S. scientific
interests.
Cost and Budgetary Considerations
The Congressional Budget Office estimates of this measure
has been requested but was not received at the time this report
was filed. When the report is available, the Chairman will
request that it be printed in the Congressional Record to
advise the Senate.
Regulatory Impact Evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact of H.R. 3008. The bill is
not a regulatory measure in the sense of imposing Government
established standards or significant economic responsibilities
on private individuals and businesses. No personal information
would be collected in administering the legislation. Therefore,
there would be no impact on personal privacy.
Executive Communications
On June 25, 1996 the Committee on Energy and Natural
Resources requested legislative reports from the Department of
Interior and the Office of Management and Budget setting forth
executive views on H.R. 3008. These reports had not been
received at the time the report on H.R. 3008 was filed. When
the reports become available, the Chairman will request that
they be printed in the Congressional Record for the advice of
the Senate.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the changes in existing law made
by the bill H.R. 3008, as ordered reported, are shown as
follows (existing law proposed to be omitted is enclosed in
black brackets, new matter is printed in italic, existing law
in which no change is proposed is shown in roman):
Helium Act of 1960 (50 U.S.C. 167 to 167n)
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That this
Act may be cited as the ``Helium Act Amendments of 1960.''
Sec. 2. The Act entitled ``An Act authorizing the
conservation, production, and exploitation of helium gas, a
mineral resource pertaining to the national defense, and to the
development of commercial aeronautics, and for other
purposes'', approved March 3, 1925 (43 Stat. 1110), as amended,
is amended to read as follows:
``That this Act may be cited as the `Helium Act'.
``Sec. 2. As used in this Act:
``(1) The term `Secretary' means the Secretary of the
Interior;
``(2) The term `person' means any individual, corporation,
partnership, firm, association, trust, estate, public or
private institution, or State or political subdivision thereof;
and
``(3) The terms `helium-bearing natural gas' and `helium-
gas mixture' mean, respectively, natural gas and gas mixtures
containing three-tenths of 1 per centum or more of helium by
volume.
``Sec. 3. [(a) For the purpose of conserving, producing,
buying, and selling helium, the Secretary is authorized--
[``(1) to acquire by purchase, lease, gift, exchange,
or eminent domain, lands or interests therein or
options thereon, including but not limited to sites,
rights-of-way, and oil or gas leases containing
obligations to pay rental in advance or damages arising
out of the use and operation of such properties; but
any such land or interest in lands may be acquired by
eminent domain only when the Secretary determines (A)
that he is unable to make a satisfactory agreement to
acquire such land or interest in land, and (B) that
such acquisition by eminent domain is necessary in the
national interest;
[``(2) to make just and reasonable contracts and
agreements for the acquisition, processing,
transportation, or conservation of helium, helium-
bearing natural gas, or helium-gas mixtures upon such
terms and conditions, and for such periods, not
exceeding twenty-five years, as may be necessary to
accomplish the purposes of the Act, except that the
Secretary shall not make such contracts and agreements
which shall require payments by the Government in any
one fiscal year aggregating more than the amount which
shall be established initially in an appropriation Act
and which may be increased from time to time in
appropriation Acts, or if the Secretary--
[``(A) determines that the national interests
require the conservation of certain helium or
require certain helium-bearing natural gas or
certain helium-gas mixture for the production
or conservation of helium, and
[``(B) determines that he is unable to
acquire such helium, helium-bearing natural
gas, or helium-gas mixture upon reasonable
terms and at the fair market value,
he is authorized to acquire by eminent domain such
helium and so much of such helium-bearing natural gas
or helium-gas mixture as is necessarily consumed in the
extraction of such helium after removal from its place
of deposit in nature and wherever found, or the
temporary use of such helium-bearing natural gas or
helium-gas mixture for the purpose of extracting
helium, together with the appropriate interest in
pipelines, equipment, installations, facilities,
personal or real property, including reserves,
easements or other rights necessary or incident to the
acquisition of such helium, natural gas, or mixture,
but the condemnation of any such helium, helium-bearing
natural gas, or helium-gas mixture, shall be effected
in the same manner and following the procedures
established in section 8(a) of this Act, the just
compensation for such condemnation to be measured by
terms and prices determined to be commensurate with the
fair market value, and in the temporary use of any
helium-bearing natural gas or helium-gas mixture for
the purpose of extracting helium the Secretary shall
cause no delay in the delivery of natural gas to the
owner, purchaser, or purchasers thereof, except that
required by the extractive processes;
[``(3) to construct or acquire by purchase, lease,
exchange, gift or eminent domain, plants, wells,
pipelines, compressor stations, camp buildings, and
other facilities, for the production, storage,
purification, transportation, purchase, and sale of
helium, helium-bearing natural gas, and helium-gas
mixtures: and to acquire patents or rights therein and
reports of experimentation and research used in
connection with the properties acquired or useful in
the Government's helium operations;
[``(4) to dispose of, by lease or sale, property,
including wells, lands, or interests therein, not
valuable for helium production, and oil, gas, and
byproducts, of helium operations not needed for
Government use, except that property determined by the
Secretary to be `excess' within the meaning of section
3(e) of the Federal Property and Administrative
Services Act of June 30, 1949 (60 Stat. 378; 40 U.S.C.
472(e)), as amended, shall be disposed of in accordance
with the provisions of that Act; and to issue leases to
the surface of lands or structures thereon for grazing
or other purposes when the same may be done without
interfering with the production, of helium; and
[``(5) to accept equipment, money, and other
contributions from public and private sources and to
prosecute projects in cooperation with other agencies,
Federal, State, or private.
[``(b) Any known helium-gas-bearing land on the public
domain not covered at the time by leases or permits under the
Mineral Lands Leasing Act of February 25, 1920, as amended, may
be reserved for the purposes of this Act, and any reservation
of the ownership of helium may include the right to extract, or
have extracted, such helium, under such rules and regulations
as may be prescribed by the Secretary, from all gas produced
from lands so permitted, leased, or otherwise granted for
development, except that in the extraction of helium from gas
produced from such lands, it shall be extracted so as to cause
no delay, except that required by the extraction process, in
the delivery of gas produced from the well to the purchaser or
purchasers thereof at the point of delivery specified in
contracts for the purchase of such gas.] If any reserved rights
of ownership and extraction of helium are not exercised before
production of any helium-bearing natural gas or any helium-gas
mixture, the Secretary is authorized to acquire such helium in
accordance with section 3(a)(2) of this Act.
[``(c) All contracts and agreements made by the Secretary
for the acquisition of helium from a private plant shall
contain a provision precluding the plant owner from selling any
helium to any purchaser other than the Secretary at a price
lower than the lowest price paid by any Government agency for
helium acquired from any private plant under any contract
entered into pursuant to this section and outstanding at the
time of such sale.]
``(a) Extraction and Disposal of Helium on Federal Lands.--
``(1) In general.--The Secretary may enter into
agreement with private parties for the recovery and
disposal of helium on Federal lands upon such terms and
conditions as the Secretary deems fair, reasonable, and
necessary.
``(2) Leasehold rights.--The Secretary may grant
leasehold rights to any such helium.
``(3) Limitation.--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.
``(4) Regulations.--Agreements under paragraph (1)
may be subject to such regulations as may be prescribed
by the Secretary.
``(5) Existing rights.--An agreement under paragraph
(1) shall be subject to any rights of any affected
Federal oil and gas lessee that may be in existence
prior to the date of the agreement.
``(6) Terms and conditions.--An agreement under
paragraph (1) (and any extension or renewal of an
agreement) shall contain such terms and conditions as
the Secretary may consider appropriate.
``(7) Prior agreements.--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 on the date of enactment of the
Helium Privatization Act of 1996 except to the extent
that such agreements are renewed or extended after that
date.
``(b) Storage, Transportation and Sale.--The Secretary may
store, transport, and sell helium only in accordance with this
Act.
[``Sec. 4. The Secretary is authorized to maintain and
operate helium production and purification plants together with
facilities and accessories thereto; to acquire, store,
transport, sell, and conserve helium, helium-bearing natural
gas, and helium-gas mixtures, to conduct exploration for and
production of helium on and from the lands acquired, leased, or
reserved; and to conduct or contract with public or private
parties for experimentation and research to discover helium
supplies and to improve processes and methods of helium
production, purification, transportation, liquefaction,
storage, and utilization. Provided, however, That all research
contracted for, sponsored, cosponsored, or authorized under
authority of this Act shall be provided for in such a manner
that all information, uses, products, processes, patents and
other developments resulting from such research developed by
Government expenditure will (with such exceptions and
limitations, if any, as the Secretary may find to be necessary
in the interest of national defense) be available to the
general public. And provided further, That nothing contained
herein shall be construed as to deprive the owner of any
background patent relating thereto to such rights as he may
have thereunder.]
``Sec. 4. (a) Storage, Transportation and Withdrawal.--The
Secretary may store, transport and withdraw crude helium and
maintain and operate crude helium storage facilities, in
existence on the date of enactment of the Helium Privatization
Act of 1996 at the Bureau of Mines Cliffside Field, and related
helium transportation and withdrawal facilities.
``(b) Cessation of Production, Refining, and Marketing.--
Not later than 18 months after the date of enactment of the
Helium Privatization Act of 1996, 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 Privatization Act of
1996, except activities described in subsection (a).
``(c) Disposal of Facilities.--
``(1) In general.--Subject to paragraph (5), not
later than 24 months after the cessation of activities
referred to in subsection (b) of this section, the
Secretary shall designate as excess property and
dispose of all facilities, equipment, and other real
and personal property, and all interests therein, held
by the United States for the purpose of producing,
refining and marketing refined helium.
``(2) Applicable law.--The disposal of such property
shall be in accordance with the Federal Property and
Administrative Services Act of 1949.
``(3) Proceeds.--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).
``(4) Costs.--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 funds established
under section 6(f).
``(5) Exception.--Paragraph (1) shall not apply to
any facilities, equipment, or other real or personal
property, or any interest therein, necessary for the
storage, transportation and withdrawal of crude helium
or any equipment, facilities, or other real or personal
property, required to maintain the purity, quality
control, and quality assurance of crude helium in the
Bureau of Mines Cliffside Field.
``(d) Existing Contracts.--
``(1) In general.--All contracts that were entered
into by any person with the Secretary for the purchase
by the person from the Secretary of refined helium and
that are in effect on the date of the enactment of the
Helium Privatization Act of 1996 shall remain in force
and effect until the date on which the refining
operations cease, as described in subsection (b).
``(2) Costs.--Any costs associated with the
termination of contracts described in paragraph (1)
shall be paid from the helium production fund
established under section 6(f).
[``Sec. 5. (a) Whenever the President determines that the
defense, security, and general welfare of the United States
requires such action, the Secretary shall issue such
regulations as he deems necessary for the licensing of sales
and transportation of helium in interstate commerce after
extraction from helium-bearing natural gas or helium-gas
mixtures. Thereafter it shall be unlawful for any person to
sell or transfer helium in interstate commerce except in
accordance with such regulations or pursuant to the terms of a
license issued by the Secretary, or in accordance with the
terms of a contract or agreement with the Secretary entered
into pursuant to this Act. For the purpose of this section, the
term `helium' shall mean helium, after extraction from helium-
bearing natural gas or helium-gas mixtures, in a refined or
semirefined state suitable for use.
[``(b) Each license shall be issued for a specified period
to be determined by the Secretary, but not exceed five years,
and may be renewed by the Secretary upon the expiration of such
period. No such license shall be issued to a person if in the
opinion of the Secretary the issuance of a license to such
person would be inimical to the defense and security of the
United States. No such license shall be assigned or otherwise
transferred directly or indirectly except with the consent or
approval of the Secretary in writing. Any such license may be
revoked for any material false statement in the application for
license, or for violation or a failure to comply with the terms
and provisions of this Act, the regulations issued by the
Secretary pursuant thereto, or the terms of the license.
[``(c) In issuing licenses under this section, the
Secretary shall impose such regulations and terms of licenses
as will permit him effectively to promote the common defense
and security as well as the general welfare of the United
States. The licensing authority herein granted shall be used
solely for the purpose of preventing the transportation or sale
of helium for end uses determined by the Secretary to be
nonessential or wasteful, and any determination that any end
use is nonessential or wasteful shall be published in the form
of general regulations applicable to all transportation or
sales of helium.
[``(d) Whenever Congress or the president declares that a
war or national emergency exists, the Secretary is authorized
to suspend any license granted under this Act if in his
judgment such suspension is necessary to the defense and
security of the United States, and he is further authorized to
take such steps as may be necessary to recapture or reacquire
supplies of helium.]
``Sec. 5. (a) In General.--Whenever the Secretary provides
helium storage withdrawal or transportation services to any
person, the Secretary shall impose a fee on the person to
reimburse the Secretary for the full costs of providing such
storage, transportation, and withdrawal.
``(b) Treatment.--All fees received by the Secretary under
subsection (a) shall be treated as moneys received under this
Act for purposes of section 6(f).
``Sec. 6. (a) The Department of Defense, the Atomic Energy
Commission and other agencies of the Federal Government, to the
extent that supplies are readily available, shall purchase all
major requirements of helium [from the Secretary] from persons
who have entered into enforceable contracts to purchase an
equivalent amount of crude helium from the Secretary.
``(b) The Secretary is authorized to sell crude helium for
Federal, medical, scientific, and commercial uses in such
quantities and under such terms and conditions as he
determines. 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.
``(c) Sales of crude helium by the Secretary shall be at
prices established by him which shall be adequate to cover all
costs incurred in carrying out the provisions of this Act and
to repay to the United States by deposit in the Treasury,
[together with interest as provided in subsection (d) of this
section, the following:
[``(1) Within twenty-five years from the date of
enactment of the Helium Act Amendments of 1960, the net
capital and retained earnings of the helium production
fund (established under section 3 of this Act prior to
amendment by the Helium Act Amendments of 1960),
determined by the Secretary as of such date of
enactment, plus any moneys expended thereafter by the
Department of the Interior from funds provided in the
Supplemental Appropriation Act, 1959, for construction
of a helium plant at Keyes, Oklahoma;
[``(2) Within twenty-five years from the date of
borrowing, all funds borrowed, as provided in section
12 of this Act, to acquire and construct helium plants
and facilities; and
[``(3) Within twenty-five years from the date of
enactment of the Helium Act Amendments of 1960, unless
the Secretary determines that said period should be
extended for not more than ten years, all funds
borrowed, as provided in section 12 of this Act, for
all purposes other than those specified in clause (2)
above.] all funds required to be repaid to the United
States as of October 1, 1995 under this section
(referred to in this subsection 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 by--
``(1) dividing the outstanding amount of such
repayable amounts by the volume (in million cubic feet)
of crude helium owned by the United States and stored
in the Bureau of Mines Cliffside Field at the time of
the sale concerned, and
``(2) adjusting the amount determined under paragraph
(1) by the Consumer Price Index for years beginning
after December 31, 1995.
[``(d) Compound interest on the amounts specified in
clauses (1), (2), and (3) of subsection (c) which have not been
paid to the Treasury shall be calculated annually at rates
determined by the Secretary of the Treasury taking into
consideration the current average market yields of outstanding
marketable obligations of the United States having maturities
comparable to the investments authorized by this Act, except
that the interest rate on the amounts specified in clause (1)
of subsection (c) shall be determined as of the date of
enactment of the Helium Act Amendments of 1960, and the
interest rate on the obligations specified in clauses (2) and
(3) of subsection (c) as of the time of each borrowing.]
``(d) 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).
[``(e) Helium shall be sold for medical purposes at prices
which will permit its general use therefor; and all sales of
helium to non-Federal purchasers shall be upon condition that
the Federal Government shall have a right to repurchase helium
so sold that has not been lost or dissipated, when needed for
Government use, under terms and at prices established by
regulations.]
[``(f)]``(e)(1) All moneys received under this Act,
including moneys from sale of helium or other products
resulting from helium operations and from the sale of excess
property shall be credited to the helium production fund, which
shall be available without fiscal year limitation, for carrying
out the provisions of this Act, including any research relating
to helium carried out by the Department of the Interior.
Amounts accumulating in said fund in excess of amounts the
Secretary deems necessary to carry out this Act and contracts
negotiated hereunder shall be paid to the Treasury and credited
against the amounts required to be repaid to the Treasury under
subsection (c) of this section.
``(2)(A) 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).
``(B) On 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 general fund of the Treasury.
``Sec. 7. The Secretary of Defense and the Chairman of the
Atomic Energy Commission may each designate representatives to
cooperate with the Secretary in carrying out the purposes of
this Act, and shall have complete right of access to plants,
data, and accounts.
``Sec. 8. (a) [Proceedings for the condemnation of any
property under section 3 of this Act shall be instituted and
maintained pursuant to the provisions of the Act of August 1,
1888 (25 Stat. 357; 40 U.S.C. 257), as amended, and sections
1358 and 1403 of title 28 of the United States Code, or any
other Federal statute applicable to the acquisition of real
property by eminent domain. The Acts of February 26, 1931 (46
Stat. 1421; 40 U.S.C. 258a-258e), and October 21, 1942 (56
Stat. 797; 40 U.S.C. 258f), shall be applicable to any such
proceedings. Wherever the words `real property,' `realty',
`land', `easement', `right-of-way', or words of similar
meaning, are used in such code provisions or Acts relating to
procedure, jurisdiction, and venue, they shall be deemed, for
the purposes of this Act, to include any personal property
authorized to be acquired hereunder.
[``(b) In the event of disposal under section 3(a)(4) of
this Act of any property acquired by eminent domain pursuant to
this Act, the former owner or successor in interest of the
rights therein shall have the preferential right to reacquire
such property on terms as favorable as those terms whereby
disposition may be made under such section.] (1)
Commencement.--Not later than January 1, 2005, the Secretary
shall commence offering for sale crude helium from helium
reserves owned by the United States in such amounts as would be
necessary to dispose of all such helium reserves in excess of
600,000,000 cubic feet on a straight-line basis between such
date and January 1, 2015.
``(2) Times of sale.--The sales shall be at such times
during each year 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.
``(3) Price.--The price for all sales under paragraph (1),
as determined by the Secretary in consultation with the helium
industry, shall be such price as will ensure repayment of the
amounts required to be repaid to the Treasury under section
6(c).
``(b) Discovery of Additional Reserves.--The discovery of
additional helium reserves shall not affect the duty of the
Secretary to make sales of helium under subsection (a).
``Sec. 9. The Secretary is hereby authorized to establish
and promulgate such rules and regulations, as are consistent
with the directions of this Act and are necessary to carry out
the provisions hereof.
``Sec. 10. (a) The provisions of the Administrative
Procedure Act of June 11, 1946 (60 Stat. 637; 5 U.S.C. 1001-
1011), as amended, shall apply to any agency proceeding and any
agency action taken under this Act, including the issuance of
rules and regulations, and the terms `agency proceeding' and
`agency action' shall have the meaning specified in the
Administrative Procedure Act.
``(b) In any proceeding under this Act for the granting,
suspending, revoking, or amending of any license, or
application to transfer control thereof, and in any proceeding
for the issuance or modification of rules and regulations
dealing with the activities of licensees, the Secretary shall
grant a hearing upon the request of any person whose interest
may be affected by the proceeding, and shall admit any such
person as a party to such proceeding. Any final order entered
in any such proceedings shall be subject to judicial review in
the manner prescribed in the Act of December 29, 1950 (64 Stat.
1129; 5 U.S.C. 1031-1042), as amended, and to the provisions of
section 10 of the Administrative Procedure Act.
``Sec. 11. The provisions of the Natural Gas Act of June
21, 1938 (52 Stat. 821; 15 U.S.C. 717-717w), as amended, shall
not be applicable to the sale, extraction, processing,
transportation, or storage of helium either prior to or
subsequent to the separation of such helium from the natural
gas with which it is commingled, whether or not the provisions
of such Act apply to such natural gas, and in determining the
rates of a natural gas company under sections 4 and 5 of the
Natural Gas Act, as amended, whenever helium is extracted from
helium-bearing natural gas, there shall be excluded (1) all
income received from the sale of helium; (2) all direct costs
incurred in the extraction, processing, compression,
transportation, or storage of helium; and (3) that portion of
joint costs of exploration, production, gathering, extraction,
processing, compression, transportation or storage divided and
allocated to helium on a volumetric basis.
``Sec. 12. [(a) The Secretary is authorized to borrow
annually from the Treasury and credit to the fund established
under section 6(f) of this Act such amounts as may be
authorized in the initial appropriation Act and which may be
increased from time to time in appropriation Acts and as are
necessary to carry out the provisions of this Act and
contractual obligations hereunder.
[``(b) For the purpose of this section the Secretary may
issue to the Secretary of the Treasury notes, debentures,
bonds, or other obligations to be redeemable at the option of
the Secretary before maturity in such manner as may be
stipulated in such obligations. The Secretary of the Treasury
is authorized and directed to purchase any obligations issued
by the Secretary under authority of this section and for such
purpose the Secretary of the Treasury is authorized to use as a
public debt transaction the proceeds from the sale of any
securities issued under the Second Liberty Bond Act, as
amended, and the purposes for which securities may be issued
under the Second Liberty Bond act, as amended, are extended to
include any purchase of obligations of the Secretary
hereunder.]
``(a) In General.--The Secretary of the Interior shall
transfer all right, title, and interest of the United States in
and to the parcel of land described in subsection (b) to the
Texas Plains Girl Scout Council for consideration of $1,
reserving to the United States such easements as may be
necessary for pipeline rights-of-way.
``(b) Land Description.--The parcel of land referred to in
subsection (a) is all those certain lots, tracts or parcels of
land lying and being situated in the County of Potter and State
of Texas, and being the East Three Hundred Thirty-One (E331)
acres out of Section Seventy-eight (78) in Block Nine (9), B.S.
& F. Survey, (some times known as the G.D. Landis pasture)
Potter County, Texas, located by certificate No. 1/39 and
evidenced by letters patents Nos. 411 and 412 issued by the
State of Texas under date of November 23, 1937, and of record
in Vol. 66A of the Patent Records of the State of Texas. The
metes and bounds description of such lands is as follows:
``(1) First tract.--One Hundred Seventy-one (171)
acres of land known as the North part of the East part
of said survey Seventy-eight (78) aforesaid, described
by metes and bounds as follows:
``Beginning at a stone
20123 inches marked X, set by
W.D. Twichell in 1905, for the Northeast corner
of this survey and the Northwest corner of
Section 59;
``Thence, South 0 degrees 12 minutes East
with the West line of said Section 59, 999.4
varas to the Northeast corner of the South 160
acres of East half of Section 78;
``Thence, North 89 degrees 47 minutes West
with the North line of the South 150 acres of
the East half, 956.8 varas to a point in the
East line of the West half Section 78;
``Thence, North 0 degrees 10 minutes West
with the East line of the West half 999.4 varas
to a stone 18143 inches in
the middle of the South line of Section 79;
``Thence, South 89 degrees 47 minutes East
965 varas to the place of beginning.
``(2) Second tract.--One Hundred Sixty (160) acres of
land known as the South part of the East part of said
survey No. Seventy-eight (78) described by metes and
bounds as follows:
``Beginning at the Southwest corner of
Section 59, a stone marked X and a pile of
stones; Thence, North 89 degrees 47 minutes
West with the North line of Section 77, 966.5
varas to the Southeast corner of the West half
of Section 78; Thence, North 0 degrees 10
minutes West with the East line of the West
half of Section 78;
``Thence, South 89 degrees 47 minutes East
965.8 varas to a point in the East line of
Section 78;
``Thence, South 0 degrees 12 minutes East
934.6 varas to the place of beginning.
Containing an area of 331 acres, more or less.
``Sec. 13. Whoever willfully violates, attempts to violate,
or conspires to violate, any provision of this Act or any
regulation or order issued or any terms of a license granted
thereunder shall, upon conviction thereof, be punished by a
fine of not more than $5,000 or by imprisonment for not more
than two years, or both, except that whoever commits such an
offense with intent to injure the United States or with intent
to secure an advantage to any foreign nation, shall upon
conviction thereof, be punished by a fine of not more than
$20,000 or by imprisonment for not more than twenty years, or
both.
``Sec. 14. Whenever in the judgment of the Secretary any
person has engaged or is about to engage in any act or practice
which constitutes or will constitute a violation of any
provision of this Act, or any regulation or order issued or any
term of a license granted thereunder, any such act or practice
may be enjoined by any district court having jurisdiction of
such person, and proper proceedings to this end may be
instituted under the direction of the Attorney General of the
United States.
``Sec. 15. [It is the sense of the Congress that it is in
the national interest to foster and encourage individual
enterprise in the development and distribution of supplies of
helium, and at the same time provide, within economic limits,
through the administration of this Act, a sustained supply of
helium which, together with supplies available or expected to
become available otherwise, will be sufficient to provide for
essential Government activities.]
``(a) Not later than three years before the date on which
the Secretary commences offering for sale crude helium under
Section 8, the Secretary shall enter into appropriate
arrangements with the National Academy of Sciences to study and
report on whether such disposal of helium reserves will have a
substantial adverse effect on U.S. scientific, technical,
biomedical, or national security interests.
``(b) Not later than 18 months before the date on which the
Secretary commences offering for sale crude helium under
Section 8, the Secretary shall transmit to the Congress--
``(1) the report of the National Academy under
subsection (a);
``(2) the findings of the Secretary, after
consideration of the conclusions of the National
Academy under subsection (a) and after consultation
with the U.S. helium industry and with heads of
affected Federal agencies, as to whether the disposal
of the helium reserve under Section 8 will have a
substantial adverse effect on the U.S. helium industry,
the U.S. helium market or U.S., scientific,
technological, biomedical, or national security
interests; and
``(3) if the Secretary determines that selling the
crude helium reserves under the formula established in
Section 8 will have a substantial adverse effect on the
U.S. Helium industry, the U.S. helium market or U.S.
scientific, technological, biomedical, or national
security interest, the Secretary shall make
recommendations, including recommendations for proposed
legislation, as may be necessary to avoid such adverse
effects.
``Sec. 16. The Secretary of the Interior is directed to
report annually to the Congress on the matters contained in
this Act.
``Sec. 17. If any provision of this Act, or the application
of such provision to any person or circumstance, is held
invalid, the remainder of this Act or the application of such
provision to persons or circumstances other than those as to
which it is held invalid, shall not be affected thereby.''.