81 FR 43635 - Notice of Crude Helium Auction and Sale for Fiscal Year 2017 Delivery

DEPARTMENT OF THE INTERIOR
Bureau of Land Management

Federal Register Volume 81, Issue 128 (July 5, 2016)

Page Range		43635-43636
FR Document		2016-15754

The Secretary of the Interior (Secretary), through the Bureau of Land Management (BLM) New Mexico State Office, is issuing this Notice to conduct an auction and sale from the Federal Helium Program, administered by the BLM New Mexico Amarillo Field Office. The Helium Stewardship Act of 2013 (HSA) (Pub. L. 113-40) requires the BLM to conduct an annual auction and sale of crude helium. Accordingly, the BLM will use the auction and sale process established in 79 FR 42808, dated July 23, 2014, and further refined in 80 FR 51304, dated August 24, 2015.

Federal Register, Volume 81 Issue 128 (Tuesday, July 5, 2016)

[Federal Register Volume 81, Number 128 (Tuesday, July 5, 2016)]
[Notices]
[Pages 43635-43636]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2016-15754]

[[Page 43635]]

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DEPARTMENT OF THE INTERIOR

Bureau of Land Management

[LLNM006200 L99110000.EK0000 XXX L4053RV]

Notice of Crude Helium Auction and Sale for Fiscal Year 2017
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
Notice to conduct an auction and sale from the Federal Helium Program,
administered by the BLM New Mexico Amarillo Field Office. The Helium
Stewardship Act of 2013 (HSA) (Pub. L. 113-40) requires the BLM to
conduct an annual auction and sale of crude helium. Accordingly, the
BLM will use the auction and sale process established in 79 FR 42808,
dated July 23, 2014, and further refined in 80 FR 51304, dated August
24, 2015.

DATES: Effective on July 5, 2016.

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. The HSA requires the
Department of the Interior, through the BLM Director, to offer for
auction and sale annually a portion of the helium reserves owned by the
United States and stored underground at the Cliffside Gas Field, near
Amarillo, Texas.
On July 23, 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.
On August 24, 2015, the BLM published a ``Notice of Final Action:
Crude Helium Sale and Auction for Fiscal Year 2016 Delivery'' in the
Federal Register (80 FR 51304) (2015 Final Notice). The 2015 Final
Notice refined the process the BLM used in 2014 for conducting the
auction and sale of crude helium. The BLM will use the process set
forth in the 2015 Final Notice for the auction and sale of crude helium
to occur in FY 2016 for FY 2017 delivery.
Both the 2014 and 2015 Final Notices are available at the BLM
helium operations Web site at: http://www.blm.gov/nm/helium.

B. Volumes Offered in the FY 2017 Helium Auction and Sale

Table 1 identifies the volumes to be offered for auction and sale
in FY 2016 for FY 2017 delivery.

Table 1--Projected Volumes for Auction and Sales for FY 2017 Delivery
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total
Forecasted In-kind sales remaining Volume
production (sales to production Volume available for Volume
Fiscal year (FY) capability Federal available for available for non- allocated available for
(NITEC study) users) sale/ auction auction sale sale
or delivery
MMcf * MMcf MMcf MMcf MMcf MMcf
--------------------------------------------------------------------------------------------------------------------------------------------------------
FY 2017 **.............................................. 1,160 160 1,000 *** 400 60 540
--------------------------------------------------------------------------------------------------------------------------------------------------------
* 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 2017 sales and auctions will be subject to the new storage contract that began October 1, 2015.
*** 40% of total production capacity after deducting In-Kind (rounded).

C. FY 2017 Helium Auction

1.01 What is the minimum FY 2017 auction price and the FY 2017
sales price? The minimum FY 2017 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 will announce the FY 2017 sale
price after the auction has concluded, and the BLM completes its
analysis of the auction information. The BLM will use this information
to publish the crude helium price for FY 2017. The BLM publishes this
crude helium price, effective October 1, 2016, in order to provide a
consistent index to the world-wide helium market.
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
2017 auction, will be added to the helium available for sale and will
be offered in the FY 2017 sale.
1.03 When will the auction and sale take place? The BLM will offer
helium for FY 2017 according to the following schedule:

July 20, 2016 FY 2017 helium auction held in Amarillo, Texas
July 21, 2016 FY 2017 helium auction results published on the BLM Web
site
July 25, 2016 Invitation for offers (IFO) posted for helium sale
August 19, 2016 Bids due from IFO
August 25, 2016 Award announcements published on the BLM Web site
August 26, 2016 Invoices sent on or before; payments due 30 days from
invoice

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 July 20, 2016. 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/helium2017. 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 auction? Only
qualified bidders, as defined in 50 U.S.C. 167(9), may participate in
and purchase helium at the 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.

[[Page 43636]]

1.06 How many helium lots does the BLM anticipate offering at the
FY 2017 auction? The BLM anticipates auctioning 400 MMcf in a total of
24 lots for FY 2017. The lots would be divided as follows:

10 lots of 25 MMcf each;
8 lots of 15 MMcf each; and
6 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 2017
Auction Notice and Guide'' at www.blm.gov/nm/helium2017.
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 2017 auction and sale to the buyer's
storage accounts beginning on the first day of the month following
receipt of payment.

D. FY 2017 Helium Sale

2.01 Who will be allowed to purchase helium in the FY 2017 sale?
The 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 FY
2017, and will be available to those storage contract holders, as of
June 30, 2016, 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 FY 2017, 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 Pipeline (as defined in 50 U.S.C. 167(2)).
2.02 How will helium sold in the FY 2017 sale be allocated among
those participating in the non-allocated sale? The non-allocated sale
will be made available to all qualified offerors 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 40 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 portion.
2.03 How will the helium sold in the FY 2017 sale be allocated
among the persons to accept delivery of crude helium from the Federal
Helium Pipeline? Any person wishing to participate in the allocated
portion of the FY 2017 sale needs to report its excess refining
capacity and operational capacity by June 30, 2016, 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/helium2017. Each person participating in
the sale will then be allocated a proportional share based upon that
person's operational capacity.
2.04 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/helium2017. 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/helium2017.
The length of time required to apply for and obtain access to the
Federal Helium Pipeline 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.

E. Delivery of Helium in FY 2017

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 2017
sale or won at the FY 2017 auction will be delivered starting October
1, 2016, 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 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.

F. Background Documents

Supplementary documents referenced in this Notice are available at
the BLM helium operations Web site at: http://www.blm.gov/nm/helium2017, and include the following:
a. The HSA (50 U.S.C. 167);
b. FY 2017 Helium Auction Notice and Guide;
c. Table of Projected Volumes for Sales and Auctions for Delivery
for FY 2017-FY 2021 (informational);
d. Hypothetical example of how the FY 2017 Allocated Sale would be
conducted (informational);
e. Hypothetical example of how the FY 2017 Non-Allocated Sale would
be conducted (informational);
f. Schedule for Helium Auction and Sale;
g. How to Set Up a Storage Account and Pipeline Access;
h. 2016 Reference Helium Storage Contract (informational); and
i. 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.

Aden Seidlitz,
Associate State Director.
[FR Doc. 2016-15754 Filed 7-1-16; 8:45 am]
BILLING CODE 4310-FB-P

Federal Register / Vol. 81, No. 128 / Tuesday, July 5, 2016 / Notices 43635

DEPARTMENT OF THE INTERIOR DATES: Effective on July 5, 2016. about the HSA, definitions of terms
FOR FURTHER INFORMATION CONTACT: used in the Notice, the reasons for the
Bureau of Land Management Robert Jolley, Amarillo Field Manager, action, and a process for conducting the
at 806–356–1002. Persons who use a auctions and sales in FY 2014.
[LLNM006200 L99110000.EK0000 XXX
L4053RV]
telecommunications device for the deaf On August 24, 2015, the BLM
(TDD) may call the Federal Information published a ‘‘Notice of Final Action:
Notice of Crude Helium Auction and Relay Service (FIRS) at 1–800–877– Crude Helium Sale and Auction for
Sale for Fiscal Year 2017 Delivery 8339. The FIRS is available 24 hours a Fiscal Year 2016 Delivery’’ in the
day, 7 days a week, to leave a message. Federal Register (80 FR 51304) (2015
AGENCY: Bureau of Land Management, You will receive a reply during normal Final Notice). The 2015 Final Notice
Interior. business hours. refined the process the BLM used in
ACTION: Notice. SUPPLEMENTARY INFORMATION: 2014 for conducting the auction and
A. Purpose and Background sale of crude helium. The BLM will use
SUMMARY: The Secretary of the Interior
the process set forth in the 2015 Final
(Secretary), through the Bureau of Land In October 2013, Congress passed the Notice for the auction and sale of crude
Management (BLM) New Mexico State HSA. The HSA requires the Department helium to occur in FY 2016 for FY 2017
Office, is issuing this Notice to conduct of the Interior, through the BLM delivery.
an auction and sale from the Federal Director, to offer for auction and sale
Helium Program, administered by the annually a portion of the helium Both the 2014 and 2015 Final Notices
BLM New Mexico Amarillo Field Office. reserves owned by the United States and are available at the BLM helium
The Helium Stewardship Act of 2013 stored underground at the Cliffside Gas operations Web site at: http://
(HSA) (Pub. L. 113–40) requires the Field, near Amarillo, Texas. www.blm.gov/nm/helium.
BLM to conduct an annual auction and On July 23, 2014, the BLM published B. Volumes Offered in the FY 2017
sale of crude helium. Accordingly, the a ‘‘Final Notice for Implementation of Helium Auction and Sale
BLM will use the auction and sale Helium Stewardship Act Sales and
process established in 79 FR 42808, Auctions’’ in the Federal Register (79 Table 1 identifies the volumes to be
dated July 23, 2014, and further refined FR 42808) (2014 Final Notice). The 2014 offered for auction and sale in FY 2016
in 80 FR 51304, dated August 24, 2015. Final Notice contained information for FY 2017 delivery.

TABLE 1—PROJECTED VOLUMES FOR AUCTION AND SALES FOR FY 2017 DELIVERY
Total
In-kind remaining Volume
Forecasted sales production Volume available Volume
production
Fiscal year (FY) (sales to available available for non- available
capability Federal for sale/ for auction allocated for sale
(NITEC study) users) auction or sale
delivery

MMcf * MMcf MMcf MMcf MMcf MMcf

FY 2017 ** ................................................ 1,160 160 1,000 *** 400 60 540
* 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 2017 sales and auctions will be subject to the new storage contract that began October 1, 2015.
*** 40% of total production capacity after deducting In-Kind (rounded).

C. FY 2017 Helium Auction be added to the helium available for sale Amarillo Field Office at 1:00 p.m.
and will be offered in the FY 2017 sale. central time, on July 20, 2016. The
1.01 What is the minimum FY 2017 1.03 When will the auction and sale address is 801 South Fillmore, Suite
auction price and the FY 2017 sales take place? The BLM will offer helium 500, Amarillo, TX 79101. Anyone
price? The minimum FY 2017 auction for FY 2017 according to the following meeting the HSA definition of a
price is $100 per Mcf (one thousand schedule: qualified bidder may participate in the
cubic feet of gas measured at standard July 20, 2016 FY 2017 helium auction auction. The logistics for the auction
conditions of 14.65 psia and 60 degrees held in Amarillo, Texas and the pre-bid qualification form is
Fahrenheit). The BLM will announce July 21, 2016 FY 2017 helium auction included in a document entitled,
the FY 2017 sale price after the auction results published on the BLM Web ‘‘Auction Guide’’ at www.blm.gov/nm/
has concluded, and the BLM completes site helium2017. Questions related to the
its analysis of the auction information. July 25, 2016 Invitation for offers (IFO) auction can be submitted by phone to
The BLM will use this information to posted for helium sale the BLM at 806–356–1001.
publish the crude helium price for FY August 19, 2016 Bids due from IFO 1.05 Who is qualified to purchase
2017. The BLM publishes this crude August 25, 2016 Award helium at the auction? Only qualified
announcements published on the bidders, as defined in 50 U.S.C. 167(9),
sradovich on DSK3GDR082PROD with NOTICES

helium price, effective October 1, 2016,
in order to provide a consistent index to BLM Web site may participate in and purchase helium
August 26, 2016 Invoices sent on or at the auction. The BLM will make the
the world-wide helium market.
before; payments due 30 days from final determination of who is a qualified
1.02 What will happen to the helium invoice bidder using the HSA’s definition of a
offered but not sold in the helium 1.04 What is the auction format? qualified bidder, regardless of whether
auction? Any volume of helium offered, The auction will be a live auction, held or not that person was previously
but not sold in the FY 2017 auction, will in the main conference room of the determined to be a qualified bidder.

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Document Created: 2016-07-01 23:49:49
Document Modified: 2016-07-01 23:49:49

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		Notice.
Dates		Effective on July 5, 2016.
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		81 FR 43635

81 FR 43635 - Notice of Crude Helium Auction and Sale for Fiscal Year 2017 Delivery

DEPARTMENT OF THE INTERIORBureau of Land Management

Federal Register Volume 81, Issue 128 (July 5, 2016)

DEPARTMENT OF THE INTERIOR
Bureau of Land Management