80_FR_51467 80 FR 51304 - Notice of Final Action: Crude Helium Sale and Auction for Fiscal Year 2016 Delivery

80 FR 51304 - Notice of Final Action: Crude Helium Sale and Auction for Fiscal Year 2016 Delivery

DEPARTMENT OF THE INTERIOR
Bureau of Land Management

Federal Register Volume 80, Issue 163 (August 24, 2015)

Page Range51304-51306
FR Document2015-20861

The Secretary of the Interior (Secretary), through the Bureau of Land Management (BLM) New Mexico State Office, is issuing this Final Notice to conduct a sale and auction from the Federal Helium Program, administered by the BLM New Mexico Amarillo Field Office. The BLM will use the sale and auction process outlined in this Notice for the sale and auction that the Helium Stewardship Act of 2013 (HSA) requires the BLM to conduct during fiscal year (FY) 2015 for delivery in FY 2016. This action takes into consideration public comments received as a result of the Notice of Proposed Action published in the Federal Register on June 12, 2015.

Federal Register, Volume 80 Issue 163 (Monday, August 24, 2015)
[Federal Register Volume 80, Number 163 (Monday, August 24, 2015)]
[Notices]
[Pages 51304-51306]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-20861]


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

DEPARTMENT OF THE INTERIOR

Bureau of Land Management

[LLNM006200 L99110000.EK0000 XXX L4053RV]


Notice of Final Action: Crude Helium Sale and Auction for Fiscal 
Year 2016 Delivery

AGENCY: Bureau of Land Management, Interior.

ACTION: Notice.

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

SUMMARY: The Secretary of the Interior (Secretary), through the Bureau 
of Land Management (BLM) New Mexico State Office, is issuing this Final 
Notice to conduct a sale and auction from the Federal Helium Program, 
administered by the BLM New Mexico Amarillo Field Office. The BLM will 
use the sale and auction process outlined in this Notice for the sale 
and auction that the Helium Stewardship Act of 2013 (HSA) requires the 
BLM to conduct during fiscal year (FY) 2015 for delivery in FY 2016. 
This action takes into consideration public comments received as a 
result of the Notice of Proposed Action published in the Federal 
Register on June 12, 2015.

DATES: This Notice is effective on August 24, 2015.

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: 

A. Purpose and Background

    In October 2013, Congress passed the HSA (Pub. L. 113-40). The HSA 
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, 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 
HSA, 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.
    The BLM published a ``Notice of Proposed Action: Crude Helium Sale 
and Auction for Fiscal Year 2016 Delivery'' in the Federal Register on 
June 12, 2015 (80 FR 33548). The BLM requested comments regarding 
elements of the FY 2016 sale and auction. These elements included:
    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.
    A summary of changes made as a result of those comments is provided 
below:

                           Summary of Changes
------------------------------------------------------------------------
          Affected text                    Explanation of change
------------------------------------------------------------------------
Volumes Offered in the FY 2016     Added non-allocated and adjusted sale
 Helium Auction and Sale.           volumes.
Section 1.01.....................  Added the additional three criteria
                                    from the statute regarding pricing.
Section 1.03.....................  The BLM set the auction date as
                                    August 26, 2015, with auction
                                    results published on the BLM Web
                                    site on August 27, 2015; the BLM set
                                    the sale date for September 1, 2015.
Section 2.01.....................  The BLM re-instituted the non-
                                    allocated sale.
Section 2.02.....................  Added explanation for decision to
                                    reinstitute non-allocated sale.
Section 2.03.....................  Added information on how FY 2016
                                    Phase B sale will be allocated among
                                    those participating in the non-
                                    allocated sale.
------------------------------------------------------------------------


[[Page 51305]]

B. Public Comment: Analysis of Comments and Changes

    In response to the invitation in the Notice of Proposed Action, six 
commenters, who are refiners and non-refiners, submitted 22 comments 
totaling 8 pages. The BLM developed a table of comments and responses, 
which is available for public review at: www.blm.gov/nm/Helium2016. 
Based upon the comments received, the BLM has revised the process for 
the FY 2016 sale and auction.

C. 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 Sales for FY 2016 Delivery
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Total remaining
                                      Forecasted     In-kind sales      production         Volume      Previously sold       Volume           Volume
         Fiscal year (FY)             production       (sales to      available for    available for      in FY 2014     available for    available for
                                      capability     Federal users)  sale/auction or      auction       Advanced sale    non-allocated         sale
                                    (NITEC Study)                        delivery                                             sale
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           MMcf *             MMcf             MMcf             MMcf             MMcf             MMcf             MMcf
                                  ----------------------------------------------------------------------------------------------------------------------
FY 2016 **.......................           1,310              160            1,150          *** 300         **** 250               85              515
--------------------------------------------------------------------------------------------------------------------------------------------------------
* 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 HSA, 250 MMcf of FY 2016 volumes were offered in FY 2014.

D. FY 2016 Helium Auction

    1.01 What is the minimum FY 2016 Phase B auction price and the FY 
2016 Phase B sales price, and how were those prices determined? The 
minimum FY 2016 Phase B auction 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 established the minimum auction price and 
will calculate the FY 2016 Phase B sale price using four criteria 
established in the HSA, in the following priority: (A) The sale price 
of crude helium in auctions held by the Secretary; (B) 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; (C) The 
volume-weighted average price of all crude helium and pure helium 
purchased, sold, or processed by persons in all qualifying domestic 
helium transactions; and (D) The volume-weighted average cost of 
converting gaseous crude helium into pure helium.
    The BLM will announce the FY2016 Phase B sale price after the 
auction has concluded and the BLM completes its analysis of the auction 
information. The BLM will post the crude helium price for the FY2016 
Phase B sale, effective October 1, 2015.
    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 schedule:

August 26, 2015--FY 2016 Phase B helium auction held in Amarillo, Texas
August 27, 2015--FY 2016 Phase B helium auction results published on 
the BLM Web site
September 1, 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 in the main conference room of the Amarillo Field Office 
at 1:00 p.m. central time, on August 26, 2015. The address is 801 South 
Fillmore, Suite 500, Amarillo, TX 79101. Anyone meeting the HSA 
definition of a qualified bidder may participate in the auction. The 
logistics for the auction and the pre-bid qualification form is 
included in a document entitled Auction Guide at www.blm.gov/nm/
helium2016. Questions related to the auction can be submitted by phone 
to the BLM at 806-356-1001.
    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 HSA's 
definition of a 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; and
    (5) lots of 5 MMcf each.
    1.07 What must I do to bid at auction? The BLM has described the 
live auction procedures, including detailed bidding instructions and 
pre-bid registration requirements, in a document entitled FY 2016 
Helium Auction Notice and Guide at www.blm.gov/nm/helium2016.
    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 
buyer's storage accounts beginning on the first day of the month 
following receipt of payment.

E. FY 2016 Phase B Helium Sale

    2.01 Who will be allowed to purchase helium in the FY 2016 Phase B 
sale? The Phase B crude helium sale will be separated into two distinct 
portions, a non-allocated portion and an allocated portion. The non-
allocated portion will be ten percent of the total amount offered for 
sale for FY2016 and will be available to those storage contract 
holders, as of August 31, 2015, who do not have ability to accept 
delivery of crude helium from the Federal Helium Pipeline (as defined 
in 50 U.S.C. 167(2)). The allocated portion will be ninety percent of 
the total amount offered for sale for FY2016 and will be available to 
any person (including individuals, corporations, partnerships, or other 
entities) with the ability to accept delivery of crude helium from the 
Federal Helium

[[Page 51306]]

Pipeline (as defined in 50 U.S.C. 167(2)).
    2.02 Why did the BLM re-institute the non-allocated sale? The BLM 
specifically requested information regarding who will be allowed to 
purchase helium in the FY 2016 Phase B sale in the draft Federal 
Register notice. Based on comments received, the BLM determined that a 
non-allocated sale would increase participation in the Federal Helium 
Program and maximize the total financial return to the taxpayer.
    2.03 How will helium sold in the FY2016 Phase B sale be allocated 
among those participating in the non-allocated sale? The non-allocated 
sale will be made available to all qualified entities not eligible to 
participate in the allocated sales. The minimum volume that can be 
requested is 1 MMcf. The total volume available for the non-allocated 
portion of the sale is 85 MMcf. Any volumes not sold at auction will be 
distributed between the non-allocated (10 percent) and the allocated 
sale (90 percent). Any volumes not purchased at the non-allocated sale 
will be sold in the allocated sale. A hypothetical example is provided 
in a document entitled ``Hypothetical example of how the FY 2016 Phase 
B Non-Allocated Sale would be conducted'' at www.blm.gov/nm/helium2016.
    2.04 How will the helium sold in the FY 2016 Phase B sale be 
allocated among the persons to accept delivery of crude helium from the 
Federal Helium Pipeline? Any person desiring to participate in the 
allocated portion of 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, or in a link entitled ``Required 
Forms for Helium Reporting'' at www.blm.gov/nm/helium2016. Each person 
participating in the sale will then be allocated a proportional share 
based upon that person's operational capacity. A hypothetical example 
is provided in a document entitled ``Hypothetical Example of how the FY 
2016 Phase B Allocated Sale would be conducted'' at www.blm.gov/nm/
helium2016.
    2.05 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 in a 
document entitled ``How to Set Up a Storage Account and Pipeline 
Access'' at http://www.blm.gov/nm/helium2016. Reporting forms show the 
due dates for each report, and can be found in a document entitled 
``Required Forms for Helium Reporting'' at www.blm.gov/nm/helium2016. 
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 and information, 
including contact information for applying for access and information 
about any applicable National Environmental Policy Act requirements.
    2.06 What will happen if one or more persons request an amount 
other than the person's share of the volume offered for either the 
allocated or the non-allocated sale? If one or more persons request 
less than their share(s), any other person(s) who request(s) more than 
their share(s) 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.
    2.07 What will happen if the total amount requested by persons is 
less than the 515 MMcf offered in the FY 2016 Phase B allocated sale? 
Any excess volume not sold in the FY 2016 Phase B allocated sale may be 
available for future sale or auction.

F. Delivery of Helium in FY 2016

    3.01 When will I receive the 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 won at 
auction up to the BLM's production capability for the year.
    3.02 How will the BLM prioritize delivery? The HSA gives priority 
to Federal In-Kind helium (i.e., helium sold to Federal users) (50 
U.S.C. 167d(b)(1)(D)) and (b)(3)). 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.

G. Background documents

    Supplementary documents referenced in this Notice are available at 
the BLM helium operations Web site at: http://www.blm.gov/nm/helium2016, and include the following:
    a. The HSA (50 U.S.C. 167);
    b. Proposed Notice, June 22, 2015;
    c. Consolidated Comment Sheet from Proposed Notice;
    d. FY 2016 Helium Auction Notice and Guide;
    e. Table of Projected Volumes for Sales and Auctions for Delivery 
for FY 2017-FY 2021 (informational);
    f. Hypothetical example of how the FY 2016 Phase B Allocated Sale 
would be conducted (informational);
    g. Hypothetical example of how the FY 2016 Phase B Non-Allocated 
Sale would be conducted (informational);
    h. Schedule for Helium Auction and Sale;
    i. How to Set Up a Storage Account and Pipeline Access;
    j. 2011 Reference Helium Storage Contract (informational); and
    k. Required Forms for Helium Reporting.

    Authority:  The HSA of 2013, Public Law 113-40, codified to 
various sections in 50 U.S.C. 167-167q.

Corey Grant,
Acting State Director.
[FR Doc. 2015-20861 Filed 8-19-15; 4:15 pm]
BILLING CODE 4310-FB-P



                                              51304                               Federal Register / Vol. 80, No. 163 / Monday, August 24, 2015 / Notices

                                              boundaries will be made in the Record                              Authority: 40 CFR 1506.6.                           SUPPLEMENTARY INFORMATION:
                                              of Decision for the Northwest Colorado                           Gregory P. Shoop,                                     A. Purpose and Background
                                              Greater Sage-Grouse Plan Amendment                               BLM Colorado Associate State Director.
                                              and EIS. The Northwest Colorado                                                                                          In October 2013, Congress passed the
                                                                                                               [FR Doc. 2015–20706 Filed 8–21–15; 8:45 am]
                                              Greater Sage-Grouse Plan Amendment                                                                                     HSA (Pub. L. 113–40). The HSA
                                                                                                               BILLING CODE 4310–JB–P
                                              and EIS will fully analyze applicable                                                                                  requires the Department of the Interior,
                                              Greater Sage-Grouse conservation                                                                                       through the BLM Director, to offer for
                                              measures, consistent with BLM                                    DEPARTMENT OF THE INTERIOR                            sale and auction annually a portion of
                                              Instruction Memorandum No. 2012–                                                                                       the helium reserves owned by the
                                              044. The BLM expects to make a                                   Bureau of Land Management                             United States and stored underground
                                              comprehensive set of decisions for                                                                                     in the Cliffside Gas Field, near Amarillo,
                                                                                                               [LLNM006200 L99110000.EK0000 XXX                      Texas (50 U.S.C. 167d(b)). On July 22,
                                              managing Greater Sage-Grouse on lands                            L4053RV]
                                              administered by the GJFO in the ROD                                                                                    2014, the BLM published a ‘‘Final
                                              for the Northwest Colorado Greater                               Notice of Final Action: Crude Helium                  Notice for Implementation of Helium
                                              Sage-Grouse Plan Amendment. That                                 Sale and Auction for Fiscal Year 2016                 Stewardship Act Sales and Auctions’’ in
                                              decision will amend the Approved                                 Delivery                                              the Federal Register, (79 FR 42808)
                                                                                                                                                                     (2014 Final Notice). The 2014 Final
                                              RMP. In the interim, leasing in Greater                          AGENCY:   Bureau of Land Management,                  Notice contained information about the
                                              Sage-Grouse habitat will continue to be                          Interior.                                             HSA, definitions of terms used in the
                                              deferred until a final decision has been                         ACTION: Notice.                                       Notice, the reasons for the action, and
                                              made on the Northwest Colorado                                                                                         a process for conducting the auctions
                                              Greater Sage-Grouse Plan Amendment.                              SUMMARY:    The Secretary of the Interior             and sales in FY 2014. The 2014 Final
                                                 The Approved RMP includes some                                (Secretary), through the Bureau of Land               Notice is available at the BLM helium
                                              implementation decisions, which are                              Management (BLM) New Mexico State                     operations Web site at: http://
                                              displayed and numbered as                                        Office, is issuing this Final Notice to
                                                                                                                                                                     www.blm.gov/nm/helium.
                                                                                                               conduct a sale and auction from the
                                              implementation decisions in the                                                                                          The BLM published a ‘‘Notice of
                                                                                                               Federal Helium Program, administered
                                              Approved RMP. Implementation                                                                                           Proposed Action: Crude Helium Sale
                                                                                                               by the BLM New Mexico Amarillo Field
                                              decisions are generally appealable to the                        Office. The BLM will use the sale and                 and Auction for Fiscal Year 2016
                                              Interior Board of Land Appeals under 43                          auction process outlined in this Notice               Delivery’’ in the Federal Register on
                                              CFR 4.410. For example, the decisions                            for the sale and auction that the Helium              June 12, 2015 (80 FR 33548). The BLM
                                              designating routes of travel are                                 Stewardship Act of 2013 (HSA) requires                requested comments regarding elements
                                              implementation decisions and are                                 the BLM to conduct during fiscal year                 of the FY 2016 sale and auction. These
                                              appealable under 43 CFR part 4. The                              (FY) 2015 for delivery in FY 2016. This               elements included:
                                              route decisions are displayed as an                              action takes into consideration public                  a. The process for arriving at the price
                                              attachment to Appendix M of the                                  comments received as a result of the                  for helium to be sold at the Phase B
                                              Approved RMP. Any party adversely                                Notice of Proposed Action published in                auction and sale, as described in section
                                              affected by the route designations may                           the Federal Register on June 12, 2015.                1.01 of this Notice;
                                              appeal within 30 days of publication of                          DATES: This Notice is effective on                      b. The format of the auction, as
                                              this Notice of Availability pursuant to                          August 24, 2015.                                      described in section 1.04 of this Notice;
                                              43 CFR, part 4, subpart E. The appeal                            FOR FURTHER INFORMATION CONTACT:                        c. Who will be allowed to purchase
                                              should state the specific route(s), as                           Robert Jolley, Amarillo Field Manager,                helium in the FY 2016 Phase B sale, as
                                              identified in Appendix M of the                                  at 806–356–1002. Persons who use a                    described in section 2.01 of this Notice;
                                              Approved RMP, on which the decision                              telecommunications device for the deaf                and
                                              is being appealed. The appeal must be                            (TDD) may call the Federal Information                  d. The process for allocating helium
                                              filed with the Grand Junction Field                              Relay Service (FIRS) at 1–800–877–                    for the FY 2016 Phase B sale, as
                                              Manager at the address listed above.                             8339. The FIRS is available 24 hours a                described in section 2.02 of this Notice.
                                              Please consult the appropriate                                   day, 7 days a week, to leave a message.                 A summary of changes made as a
                                              regulations (43 CFR, part 4, subpart E)                          You will receive a reply during normal                result of those comments is provided
                                              for further appeal requirements.                                 business hours.                                       below:

                                                                                                                         SUMMARY OF CHANGES
                                                                Affected text                                                                       Explanation of change

                                              Volumes Offered in the FY 2016 He-                        Added non-allocated and adjusted sale volumes.
                                                lium Auction and Sale.
                                              Section 1.01 ..........................................   Added the additional three criteria from the statute regarding pricing.
                                              Section 1.03 ..........................................   The BLM set the auction date as August 26, 2015, with auction results published on the BLM Web site
                                                                                                          on August 27, 2015; the BLM set the sale date for September 1, 2015.
                                              Section 2.01 ..........................................   The BLM re-instituted the non-allocated sale.
                                              Section 2.02 ..........................................   Added explanation for decision to reinstitute non-allocated sale.
                                              Section 2.03 ..........................................   Added information on how FY 2016 Phase B sale will be allocated among those participating in the
tkelley on DSK3SPTVN1PROD with NOTICES




                                                                                                          non-allocated sale.




                                         VerDate Sep<11>2014       16:48 Aug 21, 2015       Jkt 235001    PO 00000   Frm 00109   Fmt 4703   Sfmt 4703   E:\FR\FM\24AUN1.SGM   24AUN1


                                                                           Federal Register / Vol. 80, No. 163 / Monday, August 24, 2015 / Notices                                              51305

                                              B. Public Comment: Analysis of                            totaling 8 pages. The BLM developed a               C. Volumes Offered in the FY 2016
                                              Comments and Changes                                      table of comments and responses, which              Helium Auction and Sale
                                                                                                        is available for public review at:
                                                In response to the invitation in the                    www.blm.gov/nm/Helium2016. Based                      Table 1 identifies the volumes to be
                                              Notice of Proposed Action, six                            upon the comments received, the BLM                 offered for auction and sale in FY 2015
                                              commenters, who are refiners and non-                     has revised the process for the FY 2016             for FY 2016 delivery.
                                              refiners, submitted 22 comments                           sale and auction.
                                                                    TABLE 1—PROJECTED VOLUMES FOR PHASE B AUCTION AND SALES FOR FY 2016 DELIVERY
                                                                                                              Total remaining
                                                                       Forecasted                                                                                            Volume
                                                                                          In-kind sales         production             Volume          Previously sold                       Volume
                                                 Fiscal year           production                                                                                          available for
                                                                                            (sales to          available for         available for       in FY 2014                        available for
                                                    (FY)                capability                                                                                        non-allocated
                                                                                         Federal users)       sale/auction or          auction         Advanced sale                           sale
                                                                     (NITEC Study)                                                                                             sale
                                                                                                                  delivery

                                                                        MMcf *                   MMcf              MMcf                 MMcf               MMcf               MMcf            MMcf

                                              FY 2016 ** ........        1,310                   160               1,150                *** 300           **** 250             85              515
                                                * MMcf means one million cubic feet of gas measured at standard conditions of 14.65 per square inch atmosphere (psia) and 60 degrees Fahr-
                                              enheit.
                                                ** 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 HSA, 250 MMcf of FY 2016 volumes were offered in FY 2014.


                                              D. FY 2016 Helium Auction                                   1.03 When will the sale and auction               for FY 2016. The lots would be divided
                                                                                                        take place? The BLM intends to offer                as follows:
                                                1.01 What is the minimum FY 2016                        helium for FY 2016 according to the                    (8) lots of 25 MMcf each;
                                              Phase B auction price and the FY 2016                     following schedule:                                    (5) lots of 15 MMcf each; and
                                              Phase B sales price, and how were those                   August 26, 2015—FY 2016 Phase B                        (5) lots of 5 MMcf each.
                                              prices determined? The minimum FY                           helium auction held in Amarillo,                     1.07 What must I do to bid at
                                              2016 Phase B auction price is $100 per                      Texas                                             auction? The BLM has described the
                                              Mcf (one thousand cubic feet of gas                       August 27, 2015—FY 2016 Phase B                     live auction procedures, including
                                              measured at standard conditions of                          helium auction results published on               detailed bidding instructions and pre-
                                              14.65 psia and 60 degrees Fahrenheit).                      the BLM Web site                                  bid registration requirements, in a
                                              The BLM established the minimum                           September 1, 2015—Phase B Helium                    document entitled FY 2016 Helium
                                              auction price and will calculate the FY                     Sale                                              Auction Notice and Guide at
                                              2016 Phase B sale price using four                        September 30, 2015—Revenues from                    www.blm.gov/nm/helium2016.
                                              criteria established in the HSA, in the                     auction and sale due to the BLM                      1.08 When will helium that is
                                              following priority: (A) The sale price of                   1.04 What is the auction format?                  purchased at sale or won at auction be
                                              crude helium in auctions held by the                      The auction will be a live auction, held            available in the purchaser’s storage
                                              Secretary; (B) Price recommendations                      in the main conference room of the                  account? The BLM will transfer the
                                              and disaggregated data from a qualified,                  Amarillo Field Office at 1:00 p.m.                  volumes purchased in the FY 2016
                                              independent third party who has no                        central time, on August 26, 2015. The               Phase B auction and sale to the buyer’s
                                              conflict of interest, who shall conduct a                 address is 801 South Fillmore, Suite                storage accounts beginning on the first
                                              confidential survey of qualifying                         500, Amarillo, TX 79101. Anyone                     day of the month following receipt of
                                              domestic helium transactions; (C) The                     meeting the HSA definition of a                     payment.
                                              volume-weighted average price of all                      qualified bidder may participate in the             E. FY 2016 Phase B Helium Sale
                                              crude helium and pure helium                              auction. The logistics for the auction
                                              purchased, sold, or processed by                          and the pre-bid qualification form is                  2.01 Who will be allowed to
                                              persons in all qualifying domestic                        included in a document entitled                     purchase helium in the FY 2016 Phase
                                              helium transactions; and (D) The                          Auction Guide at www.blm.gov/nm/                    B sale? The Phase B crude helium sale
                                              volume-weighted average cost of                           helium2016. Questions related to the                will be separated into two distinct
                                              converting gaseous crude helium into                      auction can be submitted by phone to                portions, a non-allocated portion and an
                                              pure helium.                                              the BLM at 806–356–1001.                            allocated portion. The non-allocated
                                                                                                          1.05 Who is qualified to purchase                 portion will be ten percent of the total
                                                The BLM will announce the FY2016                                                                            amount offered for sale for FY2016 and
                                                                                                        helium at the Phase B auction? Only
                                              Phase B sale price after the auction has                                                                      will be available to those storage
                                                                                                        qualified bidders, as defined in 50
                                              concluded and the BLM completes its                                                                           contract holders, as of August 31, 2015,
                                                                                                        U.S.C. 167(9), may participate in and
                                              analysis of the auction information. The                                                                      who do not have ability to accept
                                                                                                        purchase helium at the Phase B auction.
                                              BLM will post the crude helium price                                                                          delivery of crude helium from the
                                                                                                        The BLM will make the final
                                              for the FY2016 Phase B sale, effective                    determination of who is a qualified                 Federal Helium Pipeline (as defined in
                                              October 1, 2015.                                          bidder using the HSA’s definition of a              50 U.S.C. 167(2)). The allocated portion
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                                                1.02 What will happen to the helium                     qualified bidder, regardless of whether             will be ninety percent of the total
                                              offered but not sold in the helium                        or not that person was previously                   amount offered for sale for FY2016 and
                                              auction? Any volume of helium offered,                    determined to be a qualified bidder.                will be available to any person
                                              but not sold in the FY 2016 Phase B                         1.06 How many helium lots does the                (including individuals, corporations,
                                              auction, will be added to the 600 MMcf                    BLM anticipate offering at the FY 2016              partnerships, or other entities) with the
                                              available for sale and will be offered for                Phase B auction? The BLM anticipates                ability to accept delivery of crude
                                              sale in the FY 2016 Phase B sale.                         auctioning 300 MMcf in a total of 18 lots           helium from the Federal Helium


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                                              51306                        Federal Register / Vol. 80, No. 163 / Monday, August 24, 2015 / Notices

                                              Pipeline (as defined in 50 U.S.C.                       each report, and can be found in a                      b. Proposed Notice, June 22, 2015;
                                              167(2)).                                                document entitled ‘‘Required Forms for                  c. Consolidated Comment Sheet from
                                                 2.02 Why did the BLM re-institute                    Helium Reporting’’ at www.blm.gov/nm/                 Proposed Notice;
                                              the non-allocated sale? The BLM                         helium2016. The length of time required                 d. FY 2016 Helium Auction Notice
                                              specifically requested information                      to apply for and obtain access to the                 and Guide;
                                              regarding who will be allowed to                        Federal Helium Pipeline will vary based                 e. Table of Projected Volumes for
                                              purchase helium in the FY 2016 Phase                    on the person’s plans for plant                       Sales and Auctions for Delivery for FY
                                              B sale in the draft Federal Register                    construction, pipeline metering                       2017–FY 2021 (informational);
                                              notice. Based on comments received,                     installation, and other variables. The                  f. Hypothetical example of how the
                                              the BLM determined that a non-                          BLM is available to provide technical                 FY 2016 Phase B Allocated Sale would
                                              allocated sale would increase                           assistance and information, including                 be conducted (informational);
                                              participation in the Federal Helium                     contact information for applying for                    g. Hypothetical example of how the
                                              Program and maximize the total                          access and information about any                      FY 2016 Phase B Non-Allocated Sale
                                              financial return to the taxpayer.                       applicable National Environmental                     would be conducted (informational);
                                                 2.03 How will helium sold in the                     Policy Act requirements.                                h. Schedule for Helium Auction and
                                              FY2016 Phase B sale be allocated                          2.06 What will happen if one or                     Sale;
                                              among those participating in the non-                   more persons request an amount other                    i. How to Set Up a Storage Account
                                              allocated sale? The non-allocated sale                  than the person’s share of the volume                 and Pipeline Access;
                                              will be made available to all qualified                 offered for either the allocated or the                 j. 2011 Reference Helium Storage
                                              entities not eligible to participate in the             non-allocated sale? If one or more                    Contract (informational); and
                                              allocated sales. The minimum volume                     persons request less than their share(s),               k. Required Forms for Helium
                                              that can be requested is 1 MMcf. The                    any other person(s) who request(s) more               Reporting.
                                              total volume available for the non-                     than their share(s) will be allowed to                  Authority: The HSA of 2013, Public Law
                                              allocated portion of the sale is 85 MMcf.               purchase the excess volume based on                   113–40, codified to various sections in 50
                                              Any volumes not sold at auction will be                 the proportionate shares of operational               U.S.C. 167–167q.
                                              distributed between the non-allocated                   capacity of all persons requesting more
                                              (10 percent) and the allocated sale (90                                                                       Corey Grant,
                                                                                                      than their initial shares.
                                              percent). Any volumes not purchased at                    2.07 What will happen if the total                  Acting State Director.
                                              the non-allocated sale will be sold in the              amount requested by persons is less                   [FR Doc. 2015–20861 Filed 8–19–15; 4:15 pm]
                                              allocated sale. A hypothetical example                  than the 515 MMcf offered in the FY                   BILLING CODE 4310–FB–P
                                              is provided in a document entitled                      2016 Phase B allocated sale? Any excess
                                              ‘‘Hypothetical example of how the FY                    volume not sold in the FY 2016 Phase
                                              2016 Phase B Non-Allocated Sale would                   B allocated sale may be available for                 DEPARTMENT OF THE INTERIOR
                                              be conducted’’ at www.blm.gov/nm/                       future sale or auction.
                                              helium2016.                                                                                                   Bureau of Land Management
                                                 2.04 How will the helium sold in the                 F. Delivery of Helium in FY 2016
                                                                                                                                                            [LLCAD01000 L12100000.MD0000
                                              FY 2016 Phase B sale be allocated                          3.01 When will I receive the helium                15XL1109AF]
                                              among the persons to accept delivery of                 that I purchase in a sale or win based
                                              crude helium from the Federal Helium                    on a successful auction bid? Helium                   Meeting of the California Desert
                                              Pipeline? Any person desiring to                        purchased at the FY 2016 sale or won                  District Advisory Council
                                              participate in the allocated portion of                 at the FY 2016 auction will be delivered
                                              the FY 2016 Phase B sale needs to report                                                                      SUMMARY:   Notice is hereby given, in
                                                                                                      starting October 1, 2015, in accordance
                                              its excess refining capacity and                                                                              accordance with Public Laws 92–463
                                                                                                      with the crude helium storage contract.
                                              operational capacity by August 14,                                                                            and 94–579, that the California Desert
                                                                                                      The intent is to ensure delivery of all
                                              2015, using the Excess Refining                                                                               District Advisory Council (DAC) to the
                                                                                                      helium purchased at sale or won at
                                              Capacity form, which can be                                                                                   Bureau of Land Management (BLM),
                                                                                                      auction up to the BLM’s production
                                              downloaded at http://www.blm.gov/nm/                                                                          U.S. Department of the Interior, will
                                                                                                      capability for the year.
                                              heliumreporting, or in a link entitled                                                                        participate in a field tour of BLM-
                                                                                                         3.02 How will the BLM prioritize
                                              ‘‘Required Forms for Helium Reporting’’                                                                       administered public lands on Friday,
                                                                                                      delivery? The HSA gives priority to
                                              at www.blm.gov/nm/helium2016. Each                                                                            September 11, 2015 from 8:00 a.m. to
                                                                                                      Federal In-Kind helium (i.e., helium
                                              person participating in the sale will                                                                         5:00 p.m. and will meet in formal
                                                                                                      sold to Federal users) (50 U.S.C.
                                              then be allocated a proportional share                                                                        session on Saturday, September 12,
                                                                                                      167d(b)(1)(D)) and (b)(3)). After meeting
                                              based upon that person’s operational                                                                          2015, from 8:00 a.m. to 5:00 p.m. at the
                                                                                                      that priority, the BLM will make
                                              capacity. A hypothetical example is                                                                           Hilton San Diego Mission Valley, 901
                                                                                                      delivery on a reasonable basis, as
                                              provided in a document entitled                                                                               Camino Del Rio South, San Diego, CA
                                                                                                      described in the crude helium storage
                                              ‘‘Hypothetical Example of how the FY                                                                          92108. Agenda for the Saturday meeting
                                                                                                      contract, to ensure storage contract
                                              2016 Phase B Allocated Sale would be                                                                          will include updates by council
                                                                                                      holders who have purchased or won
                                              conducted’’ at www.blm.gov/nm/                                                                                members, the BLM California Desert
                                                                                                      helium at auction have the opportunity
                                              helium2016.                                                                                                   District Manager, five Field Managers,
                                                                                                      during the year to have that helium
                                                 2.05 How does a person apply for                                                                           and council subgroups. The focus topic
                                                                                                      produced or refined in monthly
                                              access to the Federal Helium Pipeline                                                                         for the meeting will be the South Coast
                                                                                                      increments.
                                              for the purpose of taking crude helium?                                                                       Resource Management Plan/
                                                                                                      G. Background documents                               Acquisitions. Final agendas for the
tkelley on DSK3SPTVN1PROD with NOTICES




                                              The steps for taking crude helium are
                                              provided in the BLM’s Helium                              Supplementary documents referenced                  Friday field trip and the Saturday public
                                              Operations Web site in a document                       in this Notice are available at the BLM               meeting will be posted on the DAC Web
                                              entitled ‘‘How to Set Up a Storage                      helium operations Web site at: http://                page at http://www.blm.gov/ca/st/en/
                                              Account and Pipeline Access’’ at                        www.blm.gov/nm/helium2016, and                        info/rac/dac.html when finalized.
                                              http://www.blm.gov/nm/helium2016.                       include the following:                                SUPPLEMENTARY INFORMATION: All DAC
                                              Reporting forms show the due dates for                    a. The HSA (50 U.S.C. 167);                         meetings are open to the public. Public


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Document Created: 2015-12-15 10:54:54
Document Modified: 2015-12-15 10:54:54
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionCrude Helium Sale and Auction for Fiscal Year 2016 Delivery
DatesThis Notice is effective on August 24, 2015.
ContactRobert 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 Citation80 FR 51304 

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