50 U.S.C. § 167c — Storage, withdrawal and transportation

Page 53 TITLE 50—WAR AND NATIONAL DEFENSE § 167c Editorial Notes PRIOR PROVISIONS A prior section 3 of act Mar. 3, 1925, related to dis- posal of helium by sale, use of funds so obtained, and reports to Congress on such uses and was classified to section 164 of this title, prior to the general amend- ment of this chapter by Pub. L. 86–777. AMENDMENTS 2013—Subsec. (c). Pub. L. 113–40 added subsec. (c). 1996—Pub. L. 104–273 amended section generally. Prior to amendment, section enumerated various aspects of Secretary’s authority, including provisions in subsec. (a) relating to conserving, producing, buying, and sell- ing helium, in subsec. (b) relating to helium on public domain, and in subsec. (c) relating to contract price for helium. § 167b. Storage, transportation, and withdrawal of crude helium (a) Storage, transportation, and withdrawal The Secretary may store, transport, and with- draw crude helium and maintain and operate crude helium storage facilities, in existence on October 9, 1996, at the Bureau of Mines Cliffside Field, and related helium transportation and withdrawal facilities. (b) Cessation of production, refining, and mar- keting Not later than 18 months after October 9, 1996, the Secretary shall cease producing, refining, and marketing refined helium and shall cease carrying out all other activities relating to he- lium which the Secretary was authorized to carry out under this chapter before October 9, 1996, except activities described in subsection (a). (c) Disposal of facilities (1) In general Subject to paragraph (5), not later than 24 months after the cessation of activities re- ferred to in subsection (b) of this section, the Secretary shall designate as excess property and dispose of all facilities, equipment, and other real and personal property, and all inter- ests therein, held by the United States for the purpose of producing, refining and marketing refined helium. (2) Applicable law The disposal of such property shall be in ac- cordance with chapters 1 to 11 of title 40 and division C (except sections 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41. (3) Proceeds All proceeds accruing to the United States by reason of the sale or other disposal of such property shall be treated as moneys received under this chapter for purposes of section 167d(e) of this title. (4) Costs All costs associated with such sale and dis- posal (including costs associated with termi- nation of personnel) and with the cessation of activities under subsection (b) shall be paid from amounts available in the helium produc- tion fund established under section 167d(e) of this title. (5) Exception Paragraph (1) shall not apply to any facili- ties, equipment, or other real or personal property, or any interest therein, necessary for the storage, transportation, and with- drawal of crude helium or any equipment, fa- cilities, or other real or personal property, re- quired to maintain the purity, quality control, and quality assurance of crude helium in the Bureau of Mines Cliffside Field. (d) Existing contracts (1) In general All contracts that were entered into by any person with the Secretary for the purchase by the person from the Secretary of refined he- lium and that are in effect on October 9, 1996, shall remain in force and effect until the date on which the refining operations cease, as de- scribed in subsection (b). (2) Costs Any costs associated with the termination of contracts described in paragraph (1) shall be paid from the helium production fund estab- lished under section 167d(e) of this title. (Mar. 3, 1925, ch. 426, § 4, as added Pub. L. 86–777, § 2, Sept. 13, 1960, 74 Stat. 920; amended Pub. L. 104–273, § 3, Oct. 9, 1996, 110 Stat. 3316; Pub. L. 113–40, § 7(a), Oct. 2, 2013, 127 Stat. 544.) Editorial Notes CODIFICATION In subsec. (c)(2), ‘‘chapters 1 to 11 of title 40 and divi- sion C (except sections 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41’’ substituted for ‘‘the Federal Property and Administrative Services Act of 1949’’ on authority of Pub. L. 107–217, § 5(c), Aug. 21, 2002, 116 Stat. 1303, which Act enacted Title 40, Public Buildings, Property, and Works, and Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts. PRIOR PROVISIONS A prior section 4 of act Mar. 3, 1925, related to expor- tation of helium gas and was classified to section 165 of this title, prior to repeal by act Aug. 26, 1954, ch. 937, title V, § 542(a)(13), 68 Stat. 861. AMENDMENTS 2013—Subsecs. (c)(3), (4), (d)(2). Pub. L. 113–40 sub- stituted ‘‘section 167d(e)’’ for ‘‘section 167d(f)’’. 1996—Pub. L. 104–273 amended section generally. Prior to amendment, section consisted of single par. author- izing Secretary to maintain and operate helium pro- duction and purification plants and to conduct or con- tract for research as to helium production, purifi- cation, transportation, liquefaction, storage, and utili- zation. § 167c. Storage, withdrawal and transportation (a) In general If the Secretary provides helium storage, withdrawal, or transportation services to any person, the Secretary shall impose a fee on the person that accurately reflects the economic value of those services. (b) Minimum fees The fees charged under subsection (a) shall be not less than the amount required to reimburse the Secretary for the full costs of providing Page 54 TITLE 50—WAR AND NATIONAL DEFENSE § 167d storage, withdrawal, or transportation services, including capital investments in upgrades and maintenance at the Federal Helium System. (c) Schedule of fees Prior to sale or auction under subsection (a), (b), or (c) of section 167d of this title, the Sec- retary shall annually publish a standardized schedule of fees that the Secretary will charge under this section. (d) Treatment All fees received by the Secretary under this section shall be credited to the Helium Produc- tion Fund established under section 167d(e) of this title. (e) Storage and delivery In accordance with this section, the Secretary shall— (1) allow any person or qualified bidder to which crude helium is sold or auctioned under section 167d of this title to store helium in the Federal Helium Reserve; and (2) establish a schedule for the transpor- tation and delivery of helium using the Fed- eral Helium System that— (A) ensures timely delivery of helium auc- tioned pursuant to section 167d(b)(2) of this title; (B) ensures timely delivery of helium ac- quired from the Secretary from the Federal Helium Reserve by means other than an auc- tion under section 167d(b)(2) of this title, in- cluding nonallocated sales; and (C) provides priority access to the Federal Helium Pipeline for in-kind sales for Federal users. (f) New Pipeline access The Secretary shall consider any applications for access to the Federal Helium Pipeline in a manner consistent with the schedule for phasing out commercial sales and disposition of assets pursuant to section 167d of this title. (Mar. 3, 1925, ch. 426, § 5, as added Pub. L. 86–777, § 2, Sept. 13, 1960, 74 Stat. 920; amended Pub. L. 104–273, § 3, Oct. 9, 1996, 110 Stat. 3317; Pub. L. 113–40, § 4, Oct. 2, 2013, 127 Stat. 535.) Editorial Notes PRIOR PROVISIONS A prior section 5 of act Mar. 3, 1925, authorized gov- ernmental cooperation with Department of the Interior to effectuate the purposes of this chapter and was clas- sified to section 166 of this title, prior to the general amendment of this chapter by Pub. L. 86–777. AMENDMENTS 2013—Pub. L. 113–40 amended section generally. Prior to amendment, section related to fees for storage, transportation, and withdrawal. 1996—Pub. L. 104–273 amended section generally. Prior to amendment, section related to licensing for extrac- tion, transportation, and sale of helium under Federal helium refining program, including provisions in sub- sec. (a) relating to rules and regulations, in subsec. (b) relating to terms, assignments, and revocations of li- censes, in subsec. (c) relating to purpose of licenses, and in subsec. (d) relating to suspension of licenses and reacquisition of helium supplies in times of war or na- tional emergency. § 167d. Sale of crude helium (a) Phase A: allocation transition (1) In general The Secretary shall offer crude helium for sale in such quantities, at such times, at not less than the minimum price established under subsection (b)(7), and under such terms and conditions as the Secretary determines nec- essary to carry out this subsection with min- imum market disruption. (2) Federal purchases Federal users may purchase refined helium with priority pipeline access under this sub- section from persons who have entered into enforceable contracts to purchase an equiva- lent quantity of crude helium at the in-kind price from the Secretary. (3) Duration This subsection applies during— (A) the period beginning on October 2, 2013, and ending on September 30, 2014; and (B) any period during which the sale of he- lium under subsection (b) is delayed or sus- pended. (b) Phase B: auction implementation (1) In general The Secretary shall offer crude helium for sale in quantities not subject to auction under paragraph (2), after completion of each auc- tion, at not less than the minimum price es- tablished under paragraph (7), and under such terms and conditions as the Secretary deter- mines necessary— (A) to maximize total recovery of helium from the Federal Helium Reserve over the long term; (B) to maximize the total financial return to the taxpayer; (C) to manage crude helium sales accord- ing to the ability of the Secretary to extract and produce helium from the Federal Helium Reserve; (D) to give priority to meeting the helium demand of Federal users in the event of any disruption to the Federal Helium Reserve; and (E) to carry out this subsection with min- imum market disruption. (2) Auction quantities For the period described in paragraph (4) and consistent with the conditions described in paragraph (8), the Secretary shall annually auction to any qualified bidder a quantity of crude helium in the Federal Helium Reserve equal to— (A) for fiscal year 2015, 10 percent of the total volume of crude helium made available for that fiscal year; (B) for each of fiscal years 2016 through 2019, a percentage of the total volume of crude helium that is 15 percentage points greater than the percentage made available for the previous fiscal year; and (C) for fiscal year 2020 and each fiscal year thereafter, 100 percent of the total volume of crude helium made available for that fiscal year.