[Federal Register Volume 63, Number 232 (Thursday, December 3, 1998)]
[Rules and Regulations]
[Pages 66760-66762]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-31850]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Bureau of Land Management

30 CFR Part 602; 43 CFR Part 3195

[WO-130-1820-00-24 1A]
RIN 1004-AD24


Helium Contracts

AGENCY: Bureau of Land Management, Interior.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Bureau of Land Management (BLM) is finalizing the interim 
rule that was published in the Federal Register on July 28, 1998 (63 FR 
40175). This action implements the requirements of the Helium 
Privatization Act of 1996 by establishing procedures for the helium 
program, defining the obligations of the Federal helium suppliers and 
users, and removing the Bureau of Mines regulations governing helium 
distribution contracts. The effect of this action is to adopt the 
interim rule as a final rule without change.

DATES: This rule is effective on December 3, 1998.

FOR FURTHER INFORMATION CONTACT: Shirlean Beshir, Regulatory Affairs 
Group (WO-630), Bureau of Land Management, Mail Stop 401LS, 1849 ``C'' 
Street, NW, Washington, DC 20240; telephone (202) 452-5033 (Commercial 
or FTS) and Timothy R. Spisak, (806) 324-2656 (Commercial or FTS).

SUPPLEMENTARY INFORMATION:
I. Background
II. Discussion of the Final Rule and Response to Comments
III. Procedural Matters

[[Page 66761]]

I. Background

    These regulations are issued by BLM to implement the requirements 
of the Helium Privatization Act of 1996, Public Law 104-273 (the Act). 
BLM adds these regulations as a new Part 3195 to BLM's oil and gas 
regulations. This action implements the requirements of the Act by:
     Establishing procedures for the helium program;
     Defining the obligations of Federal helium suppliers and 
users; and
     Removing the Bureau of Mines regulations at 30 CFR 602 
governing helium distribution contracts.
    On July 28, 1998, BLM published an interim rule in the Federal 
Register (63 FR 40175). The written comment period on the interim rule 
closed August 27, 1998. BLM received public comments from one private 
industry supplier, which we considered in finalizing the rule.

II. Discussion of Final Rule and Response to Comments

A. Legal Basis for the Final Rule

    The Act requires that:
     BLM discontinue producing, marketing, and selling refined 
helium.
     Persons who supply a major helium requirement to Federal 
agencies contract with BLM to purchase an equivalent amount of crude 
helium from BLM.
     BLM use a legislatively mandated formula for determining 
the minimum price for crude helium.
    Accordingly, this action implements the requirements of the Act by 
establishing procedures for the helium program, defining the 
obligations of the Federal helium suppliers and users, and removing the 
Bureau of Mines regulations governing helium distribution contracts (5 
U.S.C. 301).

B. General and Specific Comments

    The private industry supplier raised the following concerns:
     The interim rule does not address pre-existing contracts 
executed under Bureau of Mines regulations;
     Whether the pre-existing contracts should be terminated or 
rebid under the new regulations;
     Whether the pre-existing contracts should be allowed to 
run their course; and
     How should BLM handle the situation where a distributor, 
who is not an approved Federal helium supplier, is supplying helium to 
Federal agencies.
    Any pre-existing contracts (pre-existing contracts) between former 
helium distributors and the BLM that were in place were cancelled 
effective April 1, 1998. Thus, those distributors lost the ability to 
act as an authorized Federal helium supplier on April 1, 1998. 
Therefore, if any such distributors wish to continue to sell a major 
helium requirement to Federal agencies to complete contractual 
obligations entered into prior to April 1, 1998, or to enter into new 
contracts to sell major helium requirements to Federal agencies, they 
must execute an In-Kind Crude Helium Sales Contract with BLM to allow 
them to do so. Further, as the disposition of pre-existing contracts 
was covered in the interim rule, no change to the rule is necessary. 
Accordingly, the interim rule adding 43 CFR Part 3195 and removing 30 
CFR Part 602 which was published in the Federal Register (63 FR 40175) 
on July 28, 1998, is hereby adopted as a final rule without change.

III. Procedural Matters

Executive Order 12866

    This final rule is not a significant rule and was not subject to 
review by the Office of Management and Budget under Executive Order 
12866. This final rule will not have an effect of $100 million or more 
on the economy. It will not adversely affect in a material way the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local or tribal governments or communities. 
The final rule merely provides the BLM a means to document and bill 
sales of refined helium to Federal agencies and their contractors. The 
total maximum dollar value of the crude helium sales is estimated at 
about $15 million annually. The crude helium sales required by the Act 
replace the BLM refined helium sales being discontinued by the same 
Act. The final rule adds a small administrative cost to track crude and 
refined helium sales. This final rule will not create a serious 
inconsistency or otherwise interfere with an action taken or planned by 
another agency. This rule does not alter the budgetary effects or 
entitlements, grants, user fees, or loan programs or the rights or 
obligations of their recipients. This rule merely fulfills the 
requirements of the Act, and does not raise novel legal or policy 
issues.

Regulatory Flexibility Act

    The Department certifies that this document will not have a 
significant economic effect on a substantial number of small entities 
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). This final 
rule outlines the reporting requirements of Federal helium users and 
suppliers. In addition, this rule raises refined helium sales 
thresholds from those contained in the prior regulations. The prior 
provisions would have required more small refined helium distributors 
to participate in refined helium sales reporting and subsequent crude 
helium purchases.

Small Business Regulatory Enforcement Fairness Act

    The Department has determined that this final rule is not a major 
rule under 5 U.S.C. 804(2), the Small Business Regulatory Enforcement 
Fairness Act. This final rule is not a major rule because total annual 
helium sales under the Act are not likely to exceed $15 million, well 
below the $100 million statutory threshold. Furthermore, any increases 
in cost will be borne by the Federal Government and in any event are 
mandated by the Act. Any effect on competition is the result of the 
Act. The final rule merely provides BLM a means to document and bill 
sales of refined helium to Federal agencies and their contractors. The 
crude helium sales required by the Act replace the BLM refined helium 
sales being discontinued by the same Act. This rule adds a small 
administrative cost to track crude and refined helium sales.

Unfunded Mandates Reform Act

    This final rule does not impose an unfunded mandate on State, 
local, or tribal governments, or the private sector of more than $100 
million per year. The final rule does not have a significant or unique 
effect on State, local, or tribal governments, or the private sector. A 
statement containing the information required by the Unfunded Mandates 
Reform Act (2 U.S.C. 1531 et seq.) is not required. The final rule 
merely provides the BLM a means to document and bill sales of crude 
helium to Federal helium suppliers based on their sales of refined 
helium to Federal agencies and their contractors. The total maximum 
dollar value of the crude helium sales is estimated at about $15 
million annually. The crude helium sales required by the Act would 
replace the BLM refined helium sales being discontinued by the same 
Act. This rule adds a small administrative cost to track crude and 
refined helium sales.

Executive Order 12630

    In accordance with Executive Order 12630, the final rule does not 
have significant takings implications. A takings implication assessment 
is not required. Since the final rule defines the obligations arising 
under future contracts, there will be no private property rights 
impaired as a result.

[[Page 66762]]

Executive Order 12612

    In accordance with Executive Order 12612, the final rule does not 
have sufficient federalism implications to warrant the preparation of a 
Federalism Assessment. This final rule does not impose any obligations 
on any other Government nor preempt any regulatory authority of any 
State.

Executive Order 12988

    In accordance with Executive Order 12988, the Office of the 
Solicitor has determined that this final rule does not unduly burden 
the judicial system and meets the requirements of sections 3(a) and 
3(b)(2) of the Order.

Paperwork Reduction Act

    The information required by these regulations is the same as the 
information required by the In-Kind Crude Helium Sales Contracts. The 
information collections contained in the In-Kind Crude Helium Sales 
Contracts have been approved by OMB under Approval No. 1004-0179 which 
expires May 31, 2001. The In-Kind Crude Helium Sales Contracts require 
Federal helium suppliers and Federal agencies to which the Federal 
helium suppliers sell the helium to provide specific information to 
BLM.

National Environmental Policy Act

    This final rule does not constitute a major Federal action 
significantly affecting the quality of the human environment. However, 
BLM has prepared an Environmental Assessment (EA) in accordance with 
section 102(2)(C) of the National Environmental Policy Act of 1969, 42 
U.S.C. 4332(2)(C). BLM has placed the EA and Finding of No Significant 
Impact (FONSI) on file in the BLM Administrative Record at the address 
specified previously.
    Author. The principal author of this final rule is Shirlean Beshir, 
Regulatory Affairs Group, Room 401LS, Bureau of Land Management, 1849 C 
Street, NW, Washington, DC 20240; Telephone: (202) 452-5033 (Commercial 
or FTS).

List of Subjects

30 CFR Part 602

    Government contracts, helium, reporting and recordkeeping 
requirements.

43 CFR Part 3195

    Government contracts, mineral royalties, oil and gas exploration, 
public lands-mineral resources, reporting and recordkeeping 
requirements, and surety bonds.

    Dated: November 23, 1998.
Sylvia V. Baca,
Acting Assistant Secretary, Land and Minerals Management.

    Accordingly, under the authority of 5 U.S.C. 301 and for the 
reasons stated above, BLM adopts without change as a final rule the 
interim rule that removed 30 CFR Chapter VI, Part 602; and added 43 CFR 
Chapter II, Part 3195, which was published at 63 FR 40175, on July 28, 
1998.

[FR Doc. 98-31850 Filed 12-2-98; 8:45 am]
BILLING CODE 4310-84-P