Sec. 5. Sale of crude helium
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Section 6 of the Helium Act ( 50 U.S.C. 167d ) is amended to read as follows: The Secretary shall offer crude helium for sale in such quantities, at such times, at not less than the minimum price established under subsection (b)(7), and under such terms and conditions as the Secretary determines necessary to carry out this subsection with minimum market disruption. Federal users may purchase refined helium with priority pipeline access under this subsection from persons who have entered into enforceable contracts to purchase an equivalent quantity of crude helium from the Secretary.
This subsection applies during the period— beginning on the date of enactment of the Helium Stewardship Act of 2013 ; and ending on September 30, 2014. The Secretary shall offer crude helium for sale in quantities not subject to auction under paragraph (2), at such times, at not less than the minimum price established under paragraph (7), and under such terms and conditions as the Secretary determines necessary— to maximize total recovery of helium from the Federal Helium Reserve over the long term; to maximize the total financial return to the taxpayer; to manage crude helium sales according to the ability of the Secretary to extract and produce helium from the Federal Helium Reserve; to give priority to meeting the helium demand of Federal users in the event of any disruption to the Federal Helium Reserve; and to carry out this subsection with minimum market disruption.
For the period described in paragraph
(4)and consistent with the conditions described in paragraph (8), the Secretary shall annually auction to any qualified bidder a quantity of crude helium in the Federal Helium Reserve equal to— for fiscal year 2015, 10 percent of the total volume of crude helium made available for that fiscal year; and for each subsequent fiscal year, a percentage of the total volume of crude helium that is 10 percentage points greater than the percentage available for the previous fiscal year, but not to exceed 100 percent. Federal users may purchase refined helium-with priority pipeline access and at the in-kind price under this subsection from persons who have entered into enforceable contracts to purchase an equivalent quantity of crude helium from the Secretary. This subsection applies during the period— beginning on October 1, 2014; 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. The Secretary may adjust the quantities specified in paragraph (2)— downward, if the Secretary determines the adjustment necessary— to minimize market disruptions that pose a threat to the economic well-being of the United States; and only after submitting a written justification of the adjustment to the Committee on Energy and Natural Resources of the Senate and the Committee on Natural Resources of the House of Representatives; or upward, if the Secretary determines the adjustment necessary to increase participation in crude helium auctions or returns to the taxpayer. The Secretary shall conduct each auction using a method that maximizes revenue to the Federal Government. The Secretary shall annually establish, as applicable, sale and minimum auction prices under subsection (a)(1) and paragraphs
(1)and
(2)using, if applicable and in the following order of priority: The sale price of crude helium in auctions held by the Secretary under paragraph (2). Price recommendations and disaggregated data from a qualified, independent third party who has no conflict of interest, who shall conduct a confidential survey of qualifying domestic helium transactions. The volume-weighted average price of all crude helium and pure helium purchased, sold, or processed by persons in all qualifying domestic helium transactions. The volume-weighted average cost of converting gaseous crude helium into pure helium. The Secretary shall require all persons that are parties to a contract with the Secretary for the withdrawal, acceptance, storage, transportation, delivery, or redelivery of crude helium to disclose, on a strictly confidential basis— the volumes and associated prices in dollars per thousand cubic feet of all crude and pure helium purchased, sold, or processed by persons in qualifying domestic helium transactions; the volumes and associated costs in dollars per thousand cubic feet of converting crude helium into pure helium; and refinery capacity and future capacity estimates. As a condition of sale or auction to a refiner under subsection (a)(1) and paragraphs
(1)and (2), effective beginning 90 days after the date of enactment of the Helium Stewardship Act of 2013 , the refiner shall make excess refining capacity of helium available at commercially reasonable rates to— any person prevailing in auctions under paragraph (2); and any person that has acquired crude helium from the Secretary from the Federal Helium Reserve by means other than an auction under paragraph
(2)after the date of enactment of the Helium Stewardship Act of 2013 . The Secretary may use the information collected under this Act— to approximate crude helium prices; and to ensure the recovery of fair value for the taxpayers of the United States from sales of crude helium. The Secretary shall adopt such administrative policies and procedures as the Secretary considers necessary and reasonable to ensure the confidentiality of information submitted pursuant to this Act. The Secretary shall offer crude helium for sale to Federal users in such quantities, at such times, at not less than the minimum price established under subsection (b)(7), and under such terms and conditions as the Secretary determines necessary to carry out this subsection. Federal users may purchase refined helium with priority pipeline access under this subsection 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). All amounts received under this Act, including amounts from the sale or auction of crude helium, 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 Act (other than sections 16, 17, and 18), including capital investments in upgrades and maintenance at the Federal Helium System, including— well head maintenance at the Cliffside Field; capital investments in maintenance and upgrades of facilities that pressurize the Cliffside Field; capital investments in maintenance and upgrades of equipment related to the storage, withdrawal, transportation, purification, and sale of crude helium from the Federal Helium Reserve; entering into purchase, lease, or other agreements to drill new or uncap existing wells to maximize the recovery of crude helium from the Federal Helium System if the Secretary determines the actions to be cost-effective; and any other scheduled or unscheduled maintenance of the Federal Helium System. Any amounts in the Helium Production Fund described in paragraph
(1)that exceed the amounts that the Secretary determines to be necessary to carry out paragraph
(1)shall be deposited in the general fund of the Treasury. The Secretary shall offer for sale or auction during each fiscal year under subsections (a), (b), and
(c)a quantity of crude helium that is the lesser of — the quantity of crude helium offered for sale by the Secretary during fiscal year 2012; and the maximum total production capacity of the Federal Helium System. The Secretary shall minimize disruption in the supply of helium from the Federal Helium System during the transition between phases of helium sales under subsections (a), (b), and (c). .
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Sec. 5
Sale of crude helium
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