80 FR 33548 - Notice of Proposed Action: Crude Helium Sale and Auction for Fiscal Year 2016 Delivery
DEPARTMENT OF THE INTERIOR
Bureau of Land Management Federal Register Volume 80, Issue 113 (June 12, 2015)
Bureau of Land Management
Federal Register Volume 80, Issue 113 (June 12, 2015)
| Page Range | 33548-33550 | |
| FR Document | 2015-14487 |
[Federal Register Volume 80, Number 113 (Friday, June 12, 2015)] [Notices] [Pages 33548-33550] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-14487] ----------------------------------------------------------------------- DEPARTMENT OF THE INTERIOR Bureau of Land Management [LLNM006200 L99110000.EK0000 XXX L4053RV] Notice of Proposed Action: Crude Helium Sale and Auction for Fiscal Year 2016 Delivery AGENCY: Bureau of Land Management, Interior. ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: The purpose of this action is to inform the public that the Department of the Interior, Bureau of Land Management (BLM), will conduct a Phase B sale and auction of crude helium for Fiscal Year (FY) 2016 delivery. For purposes of the Phase B sale, the BLM is seeking comments regarding the methods BLM should use to arrive at the sale price of the helium; the auction format BLM should follow in selling helium; who will be allowed to purchase helium; and the process BLM should follow for allocating helium. DATES: Comments regarding the helium sale and auction must be received by the BLM on or before July 13, 2015. ADDRESSES: You may submit your comments in one of two ways. You may mail comments to Bureau of Land Management, Amarillo Field Office, 801 S. Fillmore, Suite 500, Amarillo, TX 79101, Attention: Helium Sale and Auction; or email them to blm_nm_amfo_spo@blm.gov with ``Helium Sale and Auction'' in the subject line. [[Page 33549]] FOR FURTHER INFORMATION CONTACT: Robert Jolley, Amarillo Field Manager, at 806-356-1002. Persons who use a telecommunications device for the deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1- 800-877-8339. The FIRS is available 24 hours a day, 7 days a week, to leave a message. You will receive a reply during normal business hours. SUPPLEMENTARY INFORMATION: Background: In October 2013, Congress passed the Helium Stewardship Act of 2013 (the ``Act''), Public Law 113-40. Beginning in FY 2014, the Act requires the Department of the Interior, through the BLM Director, to offer for sale and auction annually a portion of the helium reserves owned by the United States and stored underground in the Cliffside Gas Field, which is near Amarillo, Texas. 50 U.S.C. 167d(b). On July 22, 2014, the BLM published a ``Final Notice for Implementation of Helium Stewardship Act Sales and Auctions'' in the Federal Register, (79 FR 42808) (``2014 Final Notice''). The 2014 Final Notice contained information about the Act, definitions of terms used in the Notice, the reasons for the action, and a process for conducting the auctions and sales in FY 2014. The 2014 Final Notice is available at the BLM helium operations Web site at: http://www.blm.gov/nm/helium. Comments requested: The BLM is specifically seeking comments on elements of the FY 2016 sale and auction that differ from the process described the 2014 Final Notice. These include: a. The process for arriving at the price for helium to be sold at the Phase B auction and sale, as described in section 1.01 of this Notice; b. The format of the auction, as described in section 1.04 of this Notice; c. Who will be allowed to purchase helium in the FY 2016 Phase B sale, as described in section 2.01 of this Notice; and d. The process for allocating helium for the FY 2016 Phase B sale, as described in section 2.02 of this Notice. Any comments regarding the sale or auction will be reviewed by the BLM State Director or other authorized official of the Department of the Interior, who may sustain, vacate, or modify the sale or auction. After consideration of comments on this notice and comments on a proposed new form of the helium storage contract, the BLM will publish a final notice of the FY 2016 sale and auction. Before including your address, phone number, email address, or other personal identifying information in your comment, you should be aware that your entire comment--including your personal identifying information--may be made publicly available at any time. While you may ask us in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so. Volumes Offered in the FY 2016 Helium Auction and Sale: Table 1 identifies the volumes to be offered for auction and sale in FY 2015 for FY 2016 delivery. Table 1--Projected Volumes for Phase B Auction and Sale for FY 2016 Delivery -------------------------------------------------------------------------------------------------------------------------------------------------------- Total remaining Forecasted In-kind sales production Previously sold in Fiscal year (FY) production (sales to Federal available for sale/ Volume available FY 2014 Advanced Volume available capability (NITEC users) auction or for auction sale for sale study) delivery MMcf * MMcf MMcf MMcf MMcf MMcf MMcf -------------------------------------------------------------------------------------------------------------------------------------------------------- FY 2016 * *..................... 1,310 160 1,150 * * * 300 * * * * 250 600 -------------------------------------------------------------------------------------------------------------------------------------------------------- * MMcf means one million cubic feet of gas measured at standard conditions of 14.65 per square inch atmosphere (psia) and 60 degrees Fahrenheit. * * Delivery for FY 2016 sales and auctions will be subject to a new storage contract beginning October 1, 2015. * * * 25% of total production capacity after deducting In-Kind (rounded). * * * * In accordance with the Act, 250 MMcf of FY 2016 volumes were offered in FY 2014. FY 2016 Helium Auction 1.01 What is the minimum FY 2016 Phase B auction price and minimum FY 2016 Phase B sales price, and how were those prices determined? Under the Act (50 U.S.C. 167d(b)), there are two occasions when helium is sold in Phase B: A public auction for qualified bidders (``Phase B auction'') and a sale of helium to persons who have the ability to accept delivery of crude helium from the Federal Helium System (``Phase B sale''). The minimum FY 2016 Phase B auction reserve price is $100 per Mcf (one thousand cubic feet of gas measured at standard conditions of 14.65 psia and 60 degrees Fahrenheit). The BLM will calculate the FY 2016 Phase B sale price using the weighted average price of the crude helium sold in the FY 2016 Phase B auction. If there are no successful sales during the FY 2016 Phase B auction, all helium volume offered in the auction will be added to the Phase B sale at a market-based survey price or calculated average price under 50 U.S.C. 167d (b)(7)(B) or (C), respectively. 1.02 What will happen to the helium offered but not sold in the helium auction? Any volume of helium offered but not sold in the FY 2016 Phase B auction will be added to the 600 MMcf available for sale and will be offered for sale in the FY 2016 Phase B sale. 1.03 When will the sale and auction take place? The BLM intends to offer helium for FY 2016 according to the following tentative schedule. This schedule may be adjusted based upon the timing of the required notices and complexity of comments received. August 18, 2015 FY 2016 Phase B helium auction held in Amarillo, Texas August 19, 2015 FY 2016 Phase B helium auction results published on the BLM Web site August 24, 2015 Phase B Helium Sale September 30, 2015 Revenues from auction and sale due to the BLM 1.04 What is the auction format? The auction will be a live auction, held at the Amarillo Field Office in Amarillo, Texas. The procedures for the auction and the pre-bid qualification form will be available after publication of a Final Notice. The Final Notice will include a web link. Please call BLM at 806-356-1001 if you have any questions relating to the auction. 1.05 Who is qualified to purchase helium at the Phase B auction? Only ``qualified bidders,'' as defined in 50 U.S.C. 167(9), may participate in and purchase helium at the Phase B auction. The BLM will make the final determination of who is a qualified bidder using the Act's definition of a [[Page 33550]] qualified bidder, regardless of whether or not that person was previously determined to be a qualified bidder. 1.06 How many helium lots does the BLM anticipate offering at the FY 2016 Phase B auction? The BLM anticipates auctioning 300 MMcf in a total of 18 lots for FY 2016. The lots would be divided as follows: (8) lots of 25 MMcf each (5) lots of 15 MMcf each (5) lots of 5 MMcf each 1.07 What must I do to bid at auction? The BLM will describe the live auction procedures, including detailed bidding instructions and pre-bid registration requirements, on its Web page at a web link that will be included in the Final Notice. The Final Notice will contain information regarding the time and location of the auction, process for notification of winning bidders, payments, and how to make such payments. 1.08 When will helium that is purchased at sale or won at auction be available in the purchaser's storage account? The BLM will transfer the volumes purchased in the FY 2016 Phase B auction and sale to the buyers' storage accounts beginning on the first day of the month following receipt of payment. FY 2016 Phase B Helium Sale 2.01 Who will be allowed to purchase helium in the FY 2016 Phase B sale? Any person (including individuals, corporations, partnerships, or other entities) with the ability to accept delivery of crude helium from the Federal Helium Pipeline (as defined in 50 U.S.C. 167(2)) may purchase helium in the FY 2016 Phase B sale. 2.02 How will the helium sold in the FY 2016 Phase B sale be allocated among the persons with the ability to take helium? Any person desiring to participate in the FY 2016 Phase B sale needs to report its excess refining capacity and operational capacity by August 14, 2015 using the Excess Refining Capacity form, which can be downloaded at http://www.blm.gov/nm/heliumreporting. Each person participating in the sale will then be allocated a proportional share based upon that person's operational capacity. 2.03 How does a person apply for access to the Federal Helium Pipeline for the purpose of taking crude helium? The steps for taking crude helium are provided in the BLM's Helium Operations Web site at http://www.blm.gov/nm/helium. Reporting forms show the due dates for each report, and can be found at http://www.blm.gov/nm/heliumreporting. The length of time required to apply for and obtain access to the Federal Helium Pipeline will vary based on the person's plans for plant construction, pipeline metering installation, and other variables. The BLM is available to provide technical assistance, including contact information for applying for access and meeting any applicable National Environmental Policy Act requirements. 2.04 What will happen if one or more persons request an amount other than the person's share of the volume offered for sale? If one or more persons requests less than its share or their shares, any other person(s) that request(s) more than its share or their shares will be allowed to purchase the excess volume based on the proportionate shares of operational capacity of all persons requesting more than their initial shares. 2.05 What will happen if the total amount requested by persons is less than the 600 MMcf offered in the FY 2016 Phase B sale? Any excess volume not sold in the FY 2016 Phase B sale will be available for future sale or auction. 2.06 Do you have a hypothetical example of how the FY 2016 Phase B Sale would be conducted? A hypothetical example of how the Phase B Sale will be conducted is available at the Helium Operations Web site at: http://www.blm.gov/nm/helium. Delivery of Helium in FY 2016 3.01 When will I receive helium that I purchase in a sale or win based on a successful auction bid? Helium purchased at the FY 2016 sale or won at the FY 2016 auction will be delivered starting October 1, 2015, in accordance with the crude helium storage contract. The intent is to ensure delivery of all helium purchased at sale or auction up to the BLM's production capability for the year. 3.02 How will the BLM prioritize delivery? The Act, at 50 U.S.C. 167d(b)(1)(D) and (b)(3), gives priority to Federal In-Kind helium (i.e., helium sold to Federal users). After meeting that priority, the BLM will make delivery on a reasonable basis, as described in the crude helium storage contract, to ensure storage contract holders who have purchased or won helium at auction have the opportunity during the year to have that helium produced or refined in monthly increments. Background Documents Supplementary documents referenced in this Notice are available at the BLM helium operations Web site at: http://www.blm.gov/nm/helium, and include the following: a. Table of Projected Volumes for Sales and Auctions for Delivery for FY 2017-FY 2021 (informational); b. Hypothetical example of how the FY 2016 Phase B Sale would be conducted (informational); c. The Helium Stewardship Act of 2013, 50 U.S.C. 167; d. FY 2014 Helium Auction Notice; e. Helium Storage Contract; and f. Required forms for helium reporting. Authority: The Helium Stewardship Act of 2013, Public Law 113- 40, codified to various sections in 50 U.S.C. 167-167q. Sheila K. Mallory, Acting State Director. [FR Doc. 2015-14487 Filed 6-11-15; 8:45 am] BILLING CODE 4310-FB-P
![33548 Federal Register / Vol. 80, No. 113 / Friday, June 12, 2015 / Notices
• Fax: 801–977–4397 or You may submit comments on issues three. The public is also encouraged to
• Mail: BLM–SLFO, 2370 South and planning criteria in writing to the help identify any management questions
Decker Lake Boulevard, West Valley BLM at any public scoping meeting, or and concerns that should be addressed
City, Utah 84119 you may submit them to the BLM using in the plan. The BLM will work
Documents pertinent to this proposal one of the methods listed in the collaboratively with interested parties to
may be examined at the SLFO located ADDRESSES section above. Interested identify the management decisions that
at 2370 South Decker Lake Boulevard, parties may submit comments by the are best suited to local, regional, and
West Valley City, Utah 84119. close of the 30-day scoping period or national needs and concerns.
FOR FURTHER INFORMATION CONTACT: Pam within 15 days after the last public The BLM will use an interdisciplinary
Schuller, Planning and Environmental meeting, whichever is later. approach to develop the plan
Coordinator, telephone 801–977–4377; The BLM will utilize and coordinate amendment in order to consider the
address BLM–SLFO, 2370 South Decker the NEPA scoping process to help fulfill variety of resource issues and concerns
Lake Boulevard, West Valley City, Utah the public involvement process under identified. Specialists with expertise in
84119; email: blm_ut_sl_comments@ section 106 of the National Historic the following disciplines will be
blm.gov. Contact Ms. Schuller to have Preservation Act (54 U.S.C. 306108) as involved in the planning process:
your name added to our mailing list. provided in 36 CFR 800.2(d)(3). The outdoor recreation, archaeology,
Persons who use a telecommunications information about historic and cultural rangeland management, wildlife, fire
device for the deaf (TDD) may call the resources within the area potentially management, realty, and hazardous
Federal Information Relay Service affected by the proposed action will materials.
(FIRS) at 1–800–877–8339 to contact the assist the BLM in identifying and Authority: 40 CFR 1501.7 and 43 CFR
above individual during normal evaluating impacts to such resources. 1610.2.
business hours. The FIRS is available 24 The BLM will consult with Native
hours a day, 7 days a week, to leave a American tribes on a government-to- Lance C. Porter,
message or question with the above government basis in accordance with Acting Associate State Director.
individual. You will receive a reply Executive Order 13175 and other [FR Doc. 2015–14296 Filed 6–11–15; 8:45 am]
during normal business hours. policies. Tribal concerns, including BILLING CODE 4310–DQ–P
SUPPLEMENTARY INFORMATION: This impacts on Indian trust assets and
document provides notice that the BLM potential impacts to cultural resources,
SLFO, Salt Lake City, Utah, intends to will be given due consideration. DEPARTMENT OF THE INTERIOR
prepare an RMP amendment with an Federal, State, and local agencies,
associated EA for the Eastern Lake along with tribes and other stakeholders Bureau of Land Management
Mountains area, announces the that may be interested in or affected by [LLNM006200 L99110000.EK0000 XXX
beginning of the scoping process, and the proposed action that the BLM is L4053RV]
seeks public input on issues and evaluating, are invited to participate in
planning criteria. The planning area is the scoping process and, if eligible, may Notice of Proposed Action: Crude
located in Utah County, Utah, and request, or be requested by the BLM, to Helium Sale and Auction for Fiscal
encompasses approximately 8,124 acres participate in the development of the Year 2016 Delivery
of public land. The purpose of the environmental analysis as a cooperating AGENCY: Bureau of Land Management,
public scoping process is to determine agency. Interior.
relevant issues that will influence the Before including your address, phone
ACTION: Notice.
scope of the environmental analysis, number, email address, or other
including alternatives, and guide the personal identifying information in your SUMMARY: The purpose of this action is
planning process. Preliminary issues for comment, you should be aware that to inform the public that the Department
the plan amendment area have been your entire comment—including your of the Interior, Bureau of Land
identified by BLM personnel; Federal, personal identifying information—may Management (BLM), will conduct a
State, and local government agencies; be made publicly available at any time. Phase B sale and auction of crude
and other stakeholders. The issues While you can ask us in your comment helium for Fiscal Year (FY) 2016
identified to date include: target to withhold your personal identifying delivery. For purposes of the Phase B
shooting, public health and safety, and information from public review, we sale, the BLM is seeking comments
protection of cultural resources. cannot guarantee that we will be able to regarding the methods BLM should use
Preliminary planning criteria include: do so. to arrive at the sale price of the helium;
• The RMP amendment will address The minutes and list of attendees for the auction format BLM should follow
BLM-administered lands only. each scoping meeting will be available in selling helium; who will be allowed
• The RMP amendment will make to the public and open for 30 days after to purchase helium; and the process
land use planning decisions specific to the meeting to any participant who BLM should follow for allocating
potential closure or restrictions of target wishes to clarify the views he or she helium.
shooting to determine the desired future expressed. The BLM will evaluate
condition and uses of these public DATES: Comments regarding the helium
identified issues to be addressed in the
lands. plan, and will place them into one of sale and auction must be received by the
• The RMP amendment will utilize a three categories: BLM on or before July 13, 2015.
collaborative and multi-jurisdictional 1. Issues to be resolved in the plan ADDRESSES: You may submit your
mstockstill on DSK4VPTVN1PROD with NOTICES
approach to determine the desired amendment; comments in one of two ways. You may
future condition of public lands. 2. Issues to be resolved through policy mail comments to Bureau of Land
• The RMP amendment will comply or administrative action; or Management, Amarillo Field Office, 801
with NEPA, FLPMA, and other 3. Issues beyond the scope of this plan S. Fillmore, Suite 500, Amarillo, TX
applicable laws, executive orders, amendment. 79101, Attention: Helium Sale and
regulations and policy. The BLM will explain in the Draft Auction; or email them to blm_nm_
• The RMP amendment will RMP Amendment/Draft EA why an amfo_spo@blm.gov with ‘‘Helium Sale
recognize valid and existing rights. issue was placed in category two or and Auction’’ in the subject line.
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![33550 Federal Register / Vol. 80, No. 113 / Friday, June 12, 2015 / Notices
qualified bidder, regardless of whether length of time required to apply for and www.blm.gov/nm/helium, and include
or not that person was previously obtain access to the Federal Helium the following:
determined to be a qualified bidder. Pipeline will vary based on the person’s a. Table of Projected Volumes for
1.06 How many helium lots does the plans for plant construction, pipeline Sales and Auctions for Delivery for FY
BLM anticipate offering at the FY 2016 metering installation, and other 2017–FY 2021 (informational);
Phase B auction? The BLM anticipates variables. The BLM is available to b. Hypothetical example of how the
auctioning 300 MMcf in a total of 18 lots provide technical assistance, including FY 2016 Phase B Sale would be
for FY 2016. The lots would be divided contact information for applying for conducted (informational);
as follows: access and meeting any applicable c. The Helium Stewardship Act of
(8) lots of 25 MMcf each National Environmental Policy Act 2013, 50 U.S.C. 167;
(5) lots of 15 MMcf each requirements. d. FY 2014 Helium Auction Notice;
(5) lots of 5 MMcf each 2.04 What will happen if one or e. Helium Storage Contract; and
more persons request an amount other f. Required forms for helium
1.07 What must I do to bid at
than the person’s share of the volume reporting.
auction? The BLM will describe the live
offered for sale? If one or more persons
auction procedures, including detailed Authority: The Helium Stewardship Act of
requests less than its share or their
bidding instructions and pre-bid 2013, Public Law 113–40, codified to various
shares, any other person(s) that
registration requirements, on its Web sections in 50 U.S.C. 167–167q.
request(s) more than its share or their
page at a web link that will be included
shares will be allowed to purchase the Sheila K. Mallory,
in the Final Notice. The Final Notice
excess volume based on the Acting State Director.
will contain information regarding the
proportionate shares of operational [FR Doc. 2015–14487 Filed 6–11–15; 8:45 am]
time and location of the auction, process
capacity of all persons requesting more BILLING CODE 4310–FB–P
for notification of winning bidders,
than their initial shares.
payments, and how to make such 2.05 What will happen if the total
payments. amount requested by persons is less
1.08 When will helium that is DEPARTMENT OF THE INTERIOR
than the 600 MMcf offered in the FY
purchased at sale or won at auction be 2016 Phase B sale? Any excess volume Bureau of Land Management
available in the purchaser’s storage not sold in the FY 2016 Phase B sale
account? The BLM will transfer the will be available for future sale or
volumes purchased in the FY 2016 [LLNMA00000 L16400000.PN0000]
auction.
Phase B auction and sale to the buyers’ 2.06 Do you have a hypothetical Notice of Relocation: Change of Street
storage accounts beginning on the first example of how the FY 2016 Phase B Address for Albuquerque District and
day of the month following receipt of Sale would be conducted? A Rio Puerco Field Offices
payment. hypothetical example of how the Phase
B Sale will be conducted is available at AGENCY: Bureau of Land Management,
FY 2016 Phase B Helium Sale
the Helium Operations Web site at: Interior.
2.01 Who will be allowed to ACTION: Notice.
http://www.blm.gov/nm/helium.
purchase helium in the FY 2016 Phase
B sale? Any person (including Delivery of Helium in FY 2016 SUMMARY: The Bureau of Land
individuals, corporations, partnerships, 3.01 When will I receive helium that Management, Albuquerque District and
or other entities) with the ability to I purchase in a sale or win based on a Rio Puerco Field Offices located at 435
accept delivery of crude helium from successful auction bid? Helium Montaño NE., Albuquerque, New
the Federal Helium Pipeline (as defined purchased at the FY 2016 sale or won Mexico is relocating to 100 Sun Avenue
in 50 U.S.C. 167(2)) may purchase at the FY 2016 auction will be delivered NE., Suite 330, Albuquerque, New
helium in the FY 2016 Phase B sale. starting October 1, 2015, in accordance Mexico.
2.02 How will the helium sold in the with the crude helium storage contract.
FY 2016 Phase B sale be allocated DATES: The Albuquerque District and
The intent is to ensure delivery of all Rio Puerco Field Offices are scheduled
among the persons with the ability to helium purchased at sale or auction up
take helium? Any person desiring to to move June 26, 2015, through June 28,
to the BLM’s production capability for 2015, and will be open for business on
participate in the FY 2016 Phase B sale the year.
needs to report its excess refining Monday, June 29, 2015.
3.02 How will the BLM prioritize
capacity and operational capacity by FOR FURTHER INFORMATION CONTACT:
delivery? The Act, at 50 U.S.C.
August 14, 2015 using the Excess 167d(b)(1)(D) and (b)(3), gives priority to Danette Herrera, Administrative Officer,
Refining Capacity form, which can be Federal In-Kind helium (i.e., helium at (505) 761–8952, BLM Albuquerque
downloaded at http://www.blm.gov/nm/ sold to Federal users). After meeting District Office, Albuquerque, New
heliumreporting. Each person that priority, the BLM will make Mexico 87107. Persons who use a
participating in the sale will then be delivery on a reasonable basis, as telecommunications device for the deaf
allocated a proportional share based described in the crude helium storage (TDD) may call the Federal Information
upon that person’s operational capacity. contract, to ensure storage contract Relay Service (FIRS) at 1–800–877–8339
2.03 How does a person apply for holders who have purchased or won to contact the above individual during
access to the Federal Helium Pipeline helium at auction have the opportunity normal business hours. The service is
available 24 hours a day, 7 days a week,
mstockstill on DSK4VPTVN1PROD with NOTICES
for the purpose of taking crude helium? during the year to have that helium
The steps for taking crude helium are produced or refined in monthly to leave a message or question with the
provided in the BLM’s Helium increments. above individual. You will receive a
Operations Web site at http:// reply during normal business hours.
www.blm.gov/nm/helium. Reporting Background Documents SUPPLEMENTARY INFORMATION: The BLM
forms show the due dates for each Supplementary documents referenced will meet its goals of improving overall
report, and can be found at http:// in this Notice are available at the BLM efficiency and reducing costs by co-
www.blm.gov/nm/heliumreporting. The helium operations Web site at: http:// locating with the USDA Forest Service.
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Document Created: 2018-02-22 10:16:36
Document Modified: 2018-02-22 10:16:36
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Crude Helium Sale and Auction for Fiscal Year 2016 Delivery | |
| Dates | Comments regarding the helium sale and auction must be received by the BLM on or before July 13, 2015. | |
| Contact | Robert Jolley, Amarillo Field Manager, at 806-356-1002. Persons who use a telecommunications device for the deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1- 800-877-8339. The FIRS is available 24 hours a day, 7 days a week, to leave a message. You will receive a reply during normal business hours. | |
| FR Citation | 80 FR 33548 |
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