[104th Congress Public Law 273]
[From the U.S. Government Printing Office]


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[DOCID: f:publ273.104]


[[Page 110 STAT. 3315]]

Public Law 104-273
104th Congress

                                 An Act


 
    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. <<NOTE: Oct. 9, 1996 -  [H.R. 
                                4168]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Helium 
Privatization Act of 1996.>> 

<<NOTE: 50 USC 167 note.>> SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Helium Privatization Act of 1996''.

SEC. 2. AMENDMENT OF HELIUM ACT.

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

SEC. 3. AUTHORITY OF SECRETARY.

    Sections 3, 4, and 5 <<NOTE: 50 USC 167a-167c.>>  are amended to 
read as follows:

``SEC. 3. AUTHORITY OF SECRETARY.

    ``(a) Extraction and Disposal of Helium on Federal Lands.--
            ``(1) In general.--The Secretary may enter into agreements 
        with private parties for the recovery and disposal of helium on 
        Federal lands upon such terms and conditions as 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.

[[Page 110 STAT. 3316]]

            ``(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. STORAGE, TRANSPORTATION, AND WITHDRAWAL OF CRUDE HELIUM.

    ``(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 fund 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

[[Page 110 STAT. 3317]]

        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. FEES FOR STORAGE, TRANSPORTATION AND WITHDRAWAL.

    ``(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. 4. SALE OF CRUDE HELIUM.

<<NOTE: 50 USC 167d.>>     (a) Subsection 6(a) is amended by striking 
``from the Secretary'' and inserting ``from persons who have entered 
into enforceable contracts to purchase an equivalent amount of crude 
helium from the Secretary''.

    (b) Subsection 6(b) is amended--
            (1) by inserting ``crude'' before ``helium''; and
            (2) by adding the following at the end: ``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) Subsection 6(c) is amended--
            (1) by inserting ``crude'' after ``Sales of''; and
            (2) by striking ``together with interest as provided in this 
        subsection'' and all that follows through the end of the 
        subsection and inserting ``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) Subsection 6(d) is amended to read as follows:
    ``(d) Extraction of Helium From Deposits on Federal Lands.--All 
moneys received by the Secretary from the sale or disposition of helium 
on Federal lands shall be paid to the Treasury and credited against the 
amounts required to be repaid to the Treasury under subsection (c).''.
    (e) Subsection 6(e) is repealed.
    (f) Subsection 6(f) is amended--
            (1) by striking ``(f)'' and inserting ``(e)(1)''; and
            (2) by adding the following at the end:

    ``(2)(A) Within 7 days after the commencement of each fiscal year 
after the disposal of the facilities referred to in section 4(c),

[[Page 110 STAT. 3318]]

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. 5. ELIMINATION OF STOCKPILE.

    Section 8 <<NOTE: 50 USC 167f.>>  is amended to read as follows:

``SEC. 8. ELIMINATION OF STOCKPILE.

    ``(a) Stockpile Sales.--
            ``(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. 6. LAND CONVEYANCE IN POTTER COUNTY, TEXAS.

    Section 12 <<NOTE: 50 USC 167j.>>  is amended to read as follows:

``SEC. 12. LAND CONVEYANCE IN POTTER COUNTY, TEXAS.

    ``(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:

[[Page 110 STAT. 3319]]

                    ``Beginning at a stone 20 x 12 x 3 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 18 x 
                14 x 3 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. 7. REPORT ON HELIUM.

    Section 15 <<NOTE: 50 USC 167m.>>  is amended to read as follows:

``SEC. 15. REPORT ON HELIUM.

    ``(a) NAS Study and Report.--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 United States scientific, technical, biomedical, or national security 
interests.
    ``(b) Transmission to Congress.--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 United States 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 United States helium industry, 
        United States, helium market or United States, scientific, 
        technological, biomedical, or national security interests; and

[[Page 110 STAT. 3320]]

            ``(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 United States helium 
        industry, the United States helium market or United States 
        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.''.

    Approved October 9, 1996.

LEGISLATIVE HISTORY--H.R. 4168:
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CONGRESSIONAL RECORD, Vol. 142 (1996):
            Sept. 26, considered and passed House.
            Sept. 28, considered and passed Senate.

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