Sec. 3. Sale and auction of crude helium
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Section 6 of the Helium Act ( 50 U.S.C. 167d ) is amended to read as follows: 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. 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. 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. 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. This subsection applies during the period— beginning on the date of enactment of the Responsible Helium Administration and Stewardship Act ; and ending on the expiration of the one-year period following such date of enactment. 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— to maximize total recovery and conservation of helium from the Federal Helium Reserve; to manage crude helium sales according to the ability of the Secretary to extract and produce helium from the Federal Helium Reserve; to respond to helium market supply and demand and minimize market disruption; and to give priority to meeting the helium demand of Federal users through purchases under paragraph (2). 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. For purposes of this subsection, the term eligible person means a helium distributer who is registered as such with the Secretary. This subsection applies during the period— beginning on the expiration of the period described in subsection (a)(5)(B); and 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. 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— the projected maximum total production capacity of the Federal Helium Reserve during that fiscal year; and the maximum refining capacity of persons connected by pipeline to the Federal Helium Reserve during that fiscal year. 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. 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. This subsection applies beginning on the day after the date described in subsection (b)(4)(B). 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. 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: 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). 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). 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. 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. 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. 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— respond to market supply and demand and minimize market disruption; or increase participation in helium auctions. 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. 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. In carrying out an auction under subsection (b), the Secretary— 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 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. In each auction the Secretary— 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 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. The Secretary shall make a determination of the minimum sale price for sales described in paragraph
(1)using— 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; current market crude helium prices as represented by the sale price at any auction held by the Secretary in the preceding 2 years; 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; the additional layer of cost and profit associated with the sale or resale of bulk liquid helium; and the sale price for crude helium offered in the most recent auction under paragraph (2)(G). The Secretary shall— 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; appoint a qualified independent third party to perform data collection and analysis for the purposes of the survey under paragraph (4)(A); and 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. 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. 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. 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. 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. 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. 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. 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. Amounts in the Helium Production Fund may be used by the Secretary to conduct helium auctions and otherwise administer this Act. 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. 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: Wellhead maintenance at the Cliffside Gas Field helium storage reservoir. Capital investments in maintenance and upgrades of facilities that pressurize the Cliffside Gas Field helium storage reservoir. 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. Any other scheduled or unscheduled maintenance of the Cliffside Gas Field helium storage reservoir and helium pipeline. 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. 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. 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). . 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.
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Sec. 3
Sale and auction of crude helium
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