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U.S. DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT NEWS RELEASE
 
Release Date: 12/20/13
Contacts: Paul McGuire, 405-790-1009    

Federal Agency Begins Implementing Helium Stewardship Act; Offers Crude Helium at Revised Price of $95 per Mcf


Amarillo, TX – The Bureau of Land Management (BLM) has issued an Invitation for Offers (IFO) to sell 400 million cubic feet of crude helium from the Federal Helium Reserve for $95 per thousand cubic feet (Mcf). This offer is made as part of the initial phase in implementing the Helium Stewardship Act (HSA). Offers are due to BLM by January 15, 2014.
 
The HSA succeeds the recently expired Helium Privatization Act and allows for continued operation of the federally managed helium reservoir and pipeline near Amarillo, Texas, which supplies about 42 percent of domestic demand for crude helium. The intent of the HSA is to allow for a smooth transition to private means of production as the reserve is steadily drawn down.
 
The price of $95 per Mcf is up from $84 per Mcf in 2013 and reflects a change in methodology designed to more closely match market forces, encourage industry conservation, and provide a higher return for American taxpayers.
 
The quantity of helium being offered in the January IFO is less than BLM has typically made available in the past. Much of the helium in the reserve is currently stored under contract, having been previously purchased but not yet extracted. It is anticipated that this reduced offering will lead storage contract holders to withdraw their privately owned stock and encourage robust interest in future auction sales. This move is not expected to reduce the amount of helium delivered through the BLM pipeline in 2014.
 
The complete IFO can be found on the BLM Helium Operator website: http://www.blm.gov/nm/st/en/prog/energy/helium/helium_operators_information.html


The BLM manages more than 245 million acres of public land, the most of any Federal agency. This land, known as the National System of Public Lands, is primarily located in 12 Western states, including Alaska. The BLM also administers 700 million acres of sub-surface mineral estate throughout the nation. The BLM's mission is to manage and conserve the public lands for the use and enjoyment of present and future generations under our mandate of multiple-use and sustained yield. In Fiscal Year 2013, the BLM generated $4.7 billion in receipts from public lands.
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Last updated: 12-20-2013