Third Annual Helium Auction Generates Nearly $43 Million
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The Bureau of Land Management (BLM) conducted its third annual auction of Federal crude helium at the Amarillo Field Office, under the terms of the Helium Stewardship Act (Act) of 2013. The BLM offered a total of 400 million cubic feet (MMcf) from the Federal Helium Reserve near Amarillo, representing 40 percent of the total volume the BLM will make available from the Reserve in Fiscal Year 2017.
The BLM offered the helium in 24 lots ranging from 5-25 MMcf to a diverse array of companies from around the world. Bids ranged from $105 to $110 per thousand cubic feet, generating a total of $42,840,000 in revenue.
"As was the case in our two previous auctions, 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. "The structured auctions and sales of much of the remaining Federal Helium Reserve inventory provide incentive for private producers to develop other sources of helium - domestically and internationally - to supply the market as the Federal Helium Reserve is 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.