Second Federal Helium Auction Generates Over $28 Million
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The Bureau of Land Management (BLM) conducted its second annual auction of Federal helium at the Amarillo Field Office, under the terms of the Helium Stewardship Act (Act) of 2013. A total of 300 MMcf from the Federal Helium Reserve near Amarillo was offered, representing 25 percent of the total volume the BLM will make available from the Reserve in Fiscal Year 2016.
The helium was offered in 18 lots ranging from 5-25 MMcf to a diverse array of companies from around the world. Bids ranged from $100 to $106 per MMcf, generating a total of $28,545,000 in revenue (one lot of 25 MMcf went unsold). This revenue is part of nearly $120 million the Helium Program will remit to the U.S. Treasury this year.
"This year's auction was again successful in achieving a key objective of the Act, to maximize the value of Federal helium through a market-driven process," said Robert B. Jolley, BLM Amarillo Field Office Manager. "This, in turn, is expected to incentivize private producers to develop other sources of helium - domestically and internationally - to supply the market when the Federal Helium Reserve is fully drawn down."
Passed by Congress in 2013, the Act established an auction system for the sale of Federal helium and mandated that all property, equipment, and interest held by the United States in the Federal Helium Reserve be disposed of by September 30, 2021. The BLM’s implementation plan provides for an orderly transition to a privatized system, while also ensuring that Federal end users of helium continue to have a reliable supply of the gas.
For more information about the auction or the Federal Helium Program, please contact Amarillo Field Manager Robert B. Jolley at 806-356-1002.
The BLM manages more than 245 million acres of public land located primarily in 12 western states, including Alaska, on behalf of the American people. The BLM also administers 700 million acres of sub-surface mineral estate throughout the nation. Our mission is to sustain the health, diversity, and productivity of America’s public lands for the use and enjoyment of present and future generations.