Will In-kind helium price be calculated as before? | In FY2013 the minimum In-kind price was determined by adjusting for inflation utilizing the Consumer Price Index (CPI) to establish a price for helium to Federal Suppliers. In subsequent years, the In-kind price will continue to be adjusted annually for inflation and will include a small increase to cover expected administrative costs. |
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What is the new calculation methodology for determining the Conservation Crude Helium Price "(CCHP)"? | BLM has established a new price methodology that takes the base price of helium adjusted for inflation defined as the Base Price Calculation “(BPC)”. In addition two new factors have been implemented, Enrichment Factor “(EF)” and Conservation Factor “(CF)”. The Enrichment Factor was initially instituted in FY2011 and will continue to be carried forward to encourage helium recycling and recovery efforts. The Conservation Factor “(CF)” was implemented in FY2013 to account for resource losses. The Conservation Factor initially began at $6.00 dollars to minimize future year increases, while taking into account future year sale projections. This methodology will be utilized for subsequent year calculations, pending possible new helium legislation that may affect or change the above pricing methodology. The proposed Conservation Crude Helium Sale price calculation for 2013 is: BPC + EF + CF = $67.75 + $10.25 + $6.00 = $84.00. This is an increase from 2012 of $8.25. |
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Will there be changes to the prices other crude helium extractors charge for their product entering the conservation pipeline? | The BLM does not control or have input into those private market transactions. |
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| Is all extracted helium reserved to the United States? | Helium produced from state acreage or fee lands is not reserved. But if fee lands are included in an area which is producing Federal helium, then a percentage of all the helium is deemed to be Federal. |
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| Can I obtain rights to the helium produced from my Federal oil and gas leasehold? | Rights to Federal helium are not granted on a lease by lease basis. |
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| If I plan to build a gas processing plant with the capability to extract helium, what do I need to do? | The steps you must take are as follows: Contact the Federal Leased Lands Team, Amarillo Field Office, BLM Express your plans in writing; provide a map or listing of legal descriptions of acreage you plan to feed into the plant. (You will need to own the gas rights or obtain rights to process the gas stream using agreements with the oil and gas lessees.) Request rights to the Federal helium in the identified area. Negotiate an extracted Federal helium sales contract with BLM. |
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| How do I determine the percentage of extracted helium production that is Federal? | Currently, the government ownership percentage is determined by using acreage and mineral ownership. BLM uses acreage from Federal oil and gas leases and from agreement areas. The formula is as follows: |
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| How are extracted helium production volumes and sales revenues allocated? | Both helium production and helium sales revenues are allocated based upon the helium content of the metered wellhead volumes. |
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| Where do I send my extracted helium sales and royalties payments? | Helium payments are sent to the following address: Amarillo Field Office, BLM
Attn: Federal Leased Lands
801 S. Fillmore, Suite 500
Amarillo, Texas 79101-3545
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| Can anyone access the helium pipeline and store helium in the Cliffside storage facility? | You must have a helium storage contract with the BLM or have a storage agreement with a company who has a helium storage contract. |
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| Who do I contact to ask about a storage contract? | Amarillo Field Office, BLM
Attn: Storage Contracts
801 South Fillmore, Suite 500
Amarillo, Texas 79101-3545 |
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| When am I required to buy crude helium from the Federal Government? | If you sell 200,000 standard cubic feet of helium, or more, in a year to a federal agency, you must buy crude helium from the BLM. To view current regulation, please go to: www.access.gpo.gov/nara/cfr/waisidx_99/43cfr3195_99.html |
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| Who must buy crude helium from the authorized Federal suppliers? | Federal agencies and their contractors and subcontractors who buy 200,000 standard cubic feet of helium, or more, in a year must buy crude helium from a BLM authorized supplier. |
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| What does BLM do with the helium data and information that is collected? | The BLM uses the collected helium information to report salient statistics about helium to the general public, venture capitalists, and industry analysts. Helium statistics (i.e., sales of helium in the United States, use of helium, exports of helium, and identification of potential occurrences of helium resources in the United States) are collected and published annually to help determine current and future helium requirements. |
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| Who pays for the gas samples which are analyzed for helium content? | When an opportunity for a gas sample analysis arises, BLM analyzes the gas sample at no cost to the person or company submitting the sample. BLM maintains a database of domestic helium occurrences and associated helium concentrations. Natural gas analyses and helium resources information from this database are routinely published. However, helium occurrences on private mineral estates require approval from the owner before the data can be released to the general public. In instances of requests for special gas analyses, BLM analyzes gas samples on a cost reimbursable basis. |
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| Whom can I contact with questions? | Joe Peterson, Assistant Field Manager, Helium Resources, (806) 356-1030 Libby Conner, Crude Helium Sales Analyst, (806) 356-1027
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