Notice of Final Action: Crude Helium Sale and Auction for Fiscal Year 2016 Delivery, 51304-51306 [2015-20861]
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51304
Federal Register / Vol. 80, No. 163 / Monday, August 24, 2015 / Notices
boundaries will be made in the Record
of Decision for the Northwest Colorado
Greater Sage-Grouse Plan Amendment
and EIS. The Northwest Colorado
Greater Sage-Grouse Plan Amendment
and EIS will fully analyze applicable
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implementation decisions in the
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Please consult the appropriate
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for further appeal requirements.
Authority: 40 CFR 1506.6.
SUPPLEMENTARY INFORMATION:
Gregory P. Shoop,
BLM Colorado Associate State Director.
[FR Doc. 2015–20706 Filed 8–21–15; 8:45 am]
BILLING CODE 4310–JB–P
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
[LLNM006200 L99110000.EK0000 XXX
L4053RV]
Notice of Final Action: Crude Helium
Sale and Auction for Fiscal Year 2016
Delivery
Bureau of Land Management,
Interior.
ACTION: Notice.
AGENCY:
The Secretary of the Interior
(Secretary), through the Bureau of Land
Management (BLM) New Mexico State
Office, is issuing this Final Notice to
conduct a sale and auction from the
Federal Helium Program, administered
by the BLM New Mexico Amarillo Field
Office. The BLM will use the sale and
auction process outlined in this Notice
for the sale and auction that the Helium
Stewardship Act of 2013 (HSA) requires
the BLM to conduct during fiscal year
(FY) 2015 for delivery in FY 2016. This
action takes into consideration public
comments received as a result of the
Notice of Proposed Action published in
the Federal Register on June 12, 2015.
DATES: This Notice is effective on
August 24, 2015.
FOR FURTHER INFORMATION CONTACT:
Robert Jolley, Amarillo Field Manager,
at 806–356–1002. Persons who use a
telecommunications device for the deaf
(TDD) may call the Federal Information
Relay Service (FIRS) at 1–800–877–
8339. The FIRS is available 24 hours a
day, 7 days a week, to leave a message.
You will receive a reply during normal
business hours.
SUMMARY:
A. Purpose and Background
In October 2013, Congress passed the
HSA (Pub. L. 113–40). The HSA
requires the Department of the Interior,
through the BLM Director, to offer for
sale and auction annually a portion of
the helium reserves owned by the
United States and stored underground
in the Cliffside Gas Field, near Amarillo,
Texas (50 U.S.C. 167d(b)). On July 22,
2014, the BLM published a ‘‘Final
Notice for Implementation of Helium
Stewardship Act Sales and Auctions’’ in
the Federal Register, (79 FR 42808)
(2014 Final Notice). The 2014 Final
Notice contained information about the
HSA, definitions of terms used in the
Notice, the reasons for the action, and
a process for conducting the auctions
and sales in FY 2014. The 2014 Final
Notice is available at the BLM helium
operations Web site at: https://
www.blm.gov/nm/helium.
The BLM published a ‘‘Notice of
Proposed Action: Crude Helium Sale
and Auction for Fiscal Year 2016
Delivery’’ in the Federal Register on
June 12, 2015 (80 FR 33548). The BLM
requested comments regarding elements
of the FY 2016 sale and auction. These
elements included:
a. The process for arriving at the price
for helium to be sold at the Phase B
auction and sale, as described in section
1.01 of this Notice;
b. The format of the auction, as
described in section 1.04 of this Notice;
c. Who will be allowed to purchase
helium in the FY 2016 Phase B sale, as
described in section 2.01 of this Notice;
and
d. The process for allocating helium
for the FY 2016 Phase B sale, as
described in section 2.02 of this Notice.
A summary of changes made as a
result of those comments is provided
below:
SUMMARY OF CHANGES
Affected text
Explanation of change
tkelley on DSK3SPTVN1PROD with NOTICES
Volumes Offered in the FY 2016 Helium Auction and Sale.
Section 1.01 ..........................................
Section 1.03 ..........................................
Section 2.01 ..........................................
Section 2.02 ..........................................
Section 2.03 ..........................................
VerDate Sep<11>2014
16:48 Aug 21, 2015
Added non-allocated and adjusted sale volumes.
Added the additional three criteria from the statute regarding pricing.
The BLM set the auction date as August 26, 2015, with auction results published on the BLM Web site
on August 27, 2015; the BLM set the sale date for September 1, 2015.
The BLM re-instituted the non-allocated sale.
Added explanation for decision to reinstitute non-allocated sale.
Added information on how FY 2016 Phase B sale will be allocated among those participating in the
non-allocated sale.
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Federal Register / Vol. 80, No. 163 / Monday, August 24, 2015 / Notices
B. Public Comment: Analysis of
Comments and Changes
In response to the invitation in the
Notice of Proposed Action, six
commenters, who are refiners and nonrefiners, submitted 22 comments
totaling 8 pages. The BLM developed a
table of comments and responses, which
is available for public review at:
www.blm.gov/nm/Helium2016. Based
upon the comments received, the BLM
has revised the process for the FY 2016
sale and auction.
51305
C. Volumes Offered in the FY 2016
Helium Auction and Sale
Table 1 identifies the volumes to be
offered for auction and sale in FY 2015
for FY 2016 delivery.
TABLE 1—PROJECTED VOLUMES FOR PHASE B AUCTION AND SALES FOR FY 2016 DELIVERY
Forecasted
production
capability
(NITEC Study)
FY 2016 ** ........
In-kind sales
(sales to
Federal users)
Total remaining
production
available for
sale/auction or
delivery
Volume
available for
auction
Previously sold
in FY 2014
Advanced sale
Volume
available for
non-allocated
sale
Volume
available for
sale
MMcf *
Fiscal year
(FY)
MMcf
MMcf
MMcf
MMcf
MMcf
MMcf
1,310
160
1,150
*** 300
**** 250
85
515
* MMcf means one million cubic feet of gas measured at standard conditions of 14.65 per square inch atmosphere (psia) and 60 degrees Fahrenheit.
** Delivery for FY 2016 sales and auctions will be subject to a new storage contract beginning October 1, 2015.
*** 25% of total production capacity after deducting In-Kind (rounded).
**** In accordance with the HSA, 250 MMcf of FY 2016 volumes were offered in FY 2014.
tkelley on DSK3SPTVN1PROD with NOTICES
D. FY 2016 Helium Auction
1.01 What is the minimum FY 2016
Phase B auction price and the FY 2016
Phase B sales price, and how were those
prices determined? The minimum FY
2016 Phase B auction price is $100 per
Mcf (one thousand cubic feet of gas
measured at standard conditions of
14.65 psia and 60 degrees Fahrenheit).
The BLM established the minimum
auction price and will calculate the FY
2016 Phase B sale price using four
criteria established in the HSA, in the
following priority: (A) The sale price of
crude helium in auctions held by the
Secretary; (B) Price recommendations
and disaggregated data from a qualified,
independent third party who has no
conflict of interest, who shall conduct a
confidential survey of qualifying
domestic helium transactions; (C) The
volume-weighted average price of all
crude helium and pure helium
purchased, sold, or processed by
persons in all qualifying domestic
helium transactions; and (D) The
volume-weighted average cost of
converting gaseous crude helium into
pure helium.
The BLM will announce the FY2016
Phase B sale price after the auction has
concluded and the BLM completes its
analysis of the auction information. The
BLM will post the crude helium price
for the FY2016 Phase B sale, effective
October 1, 2015.
1.02 What will happen to the helium
offered but not sold in the helium
auction? Any volume of helium offered,
but not sold in the FY 2016 Phase B
auction, will be added to the 600 MMcf
available for sale and will be offered for
sale in the FY 2016 Phase B sale.
VerDate Sep<11>2014
16:48 Aug 21, 2015
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1.03 When will the sale and auction
take place? The BLM intends to offer
helium for FY 2016 according to the
following schedule:
August 26, 2015—FY 2016 Phase B
helium auction held in Amarillo,
Texas
August 27, 2015—FY 2016 Phase B
helium auction results published on
the BLM Web site
September 1, 2015—Phase B Helium
Sale
September 30, 2015—Revenues from
auction and sale due to the BLM
1.04 What is the auction format?
The auction will be a live auction, held
in the main conference room of the
Amarillo Field Office at 1:00 p.m.
central time, on August 26, 2015. The
address is 801 South Fillmore, Suite
500, Amarillo, TX 79101. Anyone
meeting the HSA definition of a
qualified bidder may participate in the
auction. The logistics for the auction
and the pre-bid qualification form is
included in a document entitled
Auction Guide at www.blm.gov/nm/
helium2016. Questions related to the
auction can be submitted by phone to
the BLM at 806–356–1001.
1.05 Who is qualified to purchase
helium at the Phase B auction? Only
qualified bidders, as defined in 50
U.S.C. 167(9), may participate in and
purchase helium at the Phase B auction.
The BLM will make the final
determination of who is a qualified
bidder using the HSA’s definition of a
qualified bidder, regardless of whether
or not that person was previously
determined to be a qualified bidder.
1.06 How many helium lots does the
BLM anticipate offering at the FY 2016
Phase B auction? The BLM anticipates
auctioning 300 MMcf in a total of 18 lots
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for FY 2016. The lots would be divided
as follows:
(8) lots of 25 MMcf each;
(5) lots of 15 MMcf each; and
(5) lots of 5 MMcf each.
1.07 What must I do to bid at
auction? The BLM has described the
live auction procedures, including
detailed bidding instructions and prebid registration requirements, in a
document entitled FY 2016 Helium
Auction Notice and Guide at
www.blm.gov/nm/helium2016.
1.08 When will helium that is
purchased at sale or won at auction be
available in the purchaser’s storage
account? The BLM will transfer the
volumes purchased in the FY 2016
Phase B auction and sale to the buyer’s
storage accounts beginning on the first
day of the month following receipt of
payment.
E. FY 2016 Phase B Helium Sale
2.01 Who will be allowed to
purchase helium in the FY 2016 Phase
B sale? The Phase B crude helium sale
will be separated into two distinct
portions, a non-allocated portion and an
allocated portion. The non-allocated
portion will be ten percent of the total
amount offered for sale for FY2016 and
will be available to those storage
contract holders, as of August 31, 2015,
who do not have ability to accept
delivery of crude helium from the
Federal Helium Pipeline (as defined in
50 U.S.C. 167(2)). The allocated portion
will be ninety percent of the total
amount offered for sale for FY2016 and
will be available to any person
(including individuals, corporations,
partnerships, or other entities) with the
ability to accept delivery of crude
helium from the Federal Helium
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Pipeline (as defined in 50 U.S.C.
167(2)).
2.02 Why did the BLM re-institute
the non-allocated sale? The BLM
specifically requested information
regarding who will be allowed to
purchase helium in the FY 2016 Phase
B sale in the draft Federal Register
notice. Based on comments received,
the BLM determined that a nonallocated sale would increase
participation in the Federal Helium
Program and maximize the total
financial return to the taxpayer.
2.03 How will helium sold in the
FY2016 Phase B sale be allocated
among those participating in the nonallocated sale? The non-allocated sale
will be made available to all qualified
entities not eligible to participate in the
allocated sales. The minimum volume
that can be requested is 1 MMcf. The
total volume available for the nonallocated portion of the sale is 85 MMcf.
Any volumes not sold at auction will be
distributed between the non-allocated
(10 percent) and the allocated sale (90
percent). Any volumes not purchased at
the non-allocated sale will be sold in the
allocated sale. A hypothetical example
is provided in a document entitled
‘‘Hypothetical example of how the FY
2016 Phase B Non-Allocated Sale would
be conducted’’ at www.blm.gov/nm/
helium2016.
2.04 How will the helium sold in the
FY 2016 Phase B sale be allocated
among the persons to accept delivery of
crude helium from the Federal Helium
Pipeline? Any person desiring to
participate in the allocated portion of
the FY 2016 Phase B sale needs to report
its excess refining capacity and
operational capacity by August 14,
2015, using the Excess Refining
Capacity form, which can be
downloaded at https://www.blm.gov/nm/
heliumreporting, or in a link entitled
‘‘Required Forms for Helium Reporting’’
at www.blm.gov/nm/helium2016. Each
person participating in the sale will
then be allocated a proportional share
based upon that person’s operational
capacity. A hypothetical example is
provided in a document entitled
‘‘Hypothetical Example of how the FY
2016 Phase B Allocated Sale would be
conducted’’ at www.blm.gov/nm/
helium2016.
2.05 How does a person apply for
access to the Federal Helium Pipeline
for the purpose of taking crude helium?
The steps for taking crude helium are
provided in the BLM’s Helium
Operations Web site in a document
entitled ‘‘How to Set Up a Storage
Account and Pipeline Access’’ at
https://www.blm.gov/nm/helium2016.
Reporting forms show the due dates for
VerDate Sep<11>2014
16:48 Aug 21, 2015
Jkt 235001
each report, and can be found in a
document entitled ‘‘Required Forms for
Helium Reporting’’ at www.blm.gov/nm/
helium2016. The length of time required
to apply for and obtain access to the
Federal Helium Pipeline will vary based
on the person’s plans for plant
construction, pipeline metering
installation, and other variables. The
BLM is available to provide technical
assistance and information, including
contact information for applying for
access and information about any
applicable National Environmental
Policy Act requirements.
2.06 What will happen if one or
more persons request an amount other
than the person’s share of the volume
offered for either the allocated or the
non-allocated sale? If one or more
persons request less than their share(s),
any other person(s) who request(s) more
than their share(s) will be allowed to
purchase the excess volume based on
the proportionate shares of operational
capacity of all persons requesting more
than their initial shares.
2.07 What will happen if the total
amount requested by persons is less
than the 515 MMcf offered in the FY
2016 Phase B allocated sale? Any excess
volume not sold in the FY 2016 Phase
B allocated sale may be available for
future sale or auction.
F. Delivery of Helium in FY 2016
3.01 When will I receive the helium
that I purchase in a sale or win based
on a successful auction bid? Helium
purchased at the FY 2016 sale or won
at the FY 2016 auction will be delivered
starting October 1, 2015, in accordance
with the crude helium storage contract.
The intent is to ensure delivery of all
helium purchased at sale or won at
auction up to the BLM’s production
capability for the year.
3.02 How will the BLM prioritize
delivery? The HSA gives priority to
Federal In-Kind helium (i.e., helium
sold to Federal users) (50 U.S.C.
167d(b)(1)(D)) and (b)(3)). After meeting
that priority, the BLM will make
delivery on a reasonable basis, as
described in the crude helium storage
contract, to ensure storage contract
holders who have purchased or won
helium at auction have the opportunity
during the year to have that helium
produced or refined in monthly
increments.
G. Background documents
Supplementary documents referenced
in this Notice are available at the BLM
helium operations Web site at: https://
www.blm.gov/nm/helium2016, and
include the following:
a. The HSA (50 U.S.C. 167);
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b. Proposed Notice, June 22, 2015;
c. Consolidated Comment Sheet from
Proposed Notice;
d. FY 2016 Helium Auction Notice
and Guide;
e. Table of Projected Volumes for
Sales and Auctions for Delivery for FY
2017–FY 2021 (informational);
f. Hypothetical example of how the
FY 2016 Phase B Allocated Sale would
be conducted (informational);
g. Hypothetical example of how the
FY 2016 Phase B Non-Allocated Sale
would be conducted (informational);
h. Schedule for Helium Auction and
Sale;
i. How to Set Up a Storage Account
and Pipeline Access;
j. 2011 Reference Helium Storage
Contract (informational); and
k. Required Forms for Helium
Reporting.
Authority: The HSA of 2013, Public Law
113–40, codified to various sections in 50
U.S.C. 167–167q.
Corey Grant,
Acting State Director.
[FR Doc. 2015–20861 Filed 8–19–15; 4:15 pm]
BILLING CODE 4310–FB–P
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
[LLCAD01000 L12100000.MD0000
15XL1109AF]
Meeting of the California Desert
District Advisory Council
Notice is hereby given, in
accordance with Public Laws 92–463
and 94–579, that the California Desert
District Advisory Council (DAC) to the
Bureau of Land Management (BLM),
U.S. Department of the Interior, will
participate in a field tour of BLMadministered public lands on Friday,
September 11, 2015 from 8:00 a.m. to
5:00 p.m. and will meet in formal
session on Saturday, September 12,
2015, from 8:00 a.m. to 5:00 p.m. at the
Hilton San Diego Mission Valley, 901
Camino Del Rio South, San Diego, CA
92108. Agenda for the Saturday meeting
will include updates by council
members, the BLM California Desert
District Manager, five Field Managers,
and council subgroups. The focus topic
for the meeting will be the South Coast
Resource Management Plan/
Acquisitions. Final agendas for the
Friday field trip and the Saturday public
meeting will be posted on the DAC Web
page at https://www.blm.gov/ca/st/en/
info/rac/dac.html when finalized.
SUPPLEMENTARY INFORMATION: All DAC
meetings are open to the public. Public
SUMMARY:
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]]>Agencies
[Federal Register Volume 80, Number 163 (Monday, August 24, 2015)]
[Notices]
[Pages 51304-51306]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-20861]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
[LLNM006200 L99110000.EK0000 XXX L4053RV]
Notice of Final Action: Crude Helium Sale and Auction for Fiscal
Year 2016 Delivery
AGENCY: Bureau of Land Management, Interior.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Secretary of the Interior (Secretary), through the Bureau
of Land Management (BLM) New Mexico State Office, is issuing this Final
Notice to conduct a sale and auction from the Federal Helium Program,
administered by the BLM New Mexico Amarillo Field Office. The BLM will
use the sale and auction process outlined in this Notice for the sale
and auction that the Helium Stewardship Act of 2013 (HSA) requires the
BLM to conduct during fiscal year (FY) 2015 for delivery in FY 2016.
This action takes into consideration public comments received as a
result of the Notice of Proposed Action published in the Federal
Register on June 12, 2015.
DATES: This Notice is effective on August 24, 2015.
FOR FURTHER INFORMATION CONTACT: Robert Jolley, Amarillo Field Manager,
at 806-356-1002. Persons who use a telecommunications device for the
deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1-
800-877-8339. The FIRS is available 24 hours a day, 7 days a week, to
leave a message. You will receive a reply during normal business hours.
SUPPLEMENTARY INFORMATION:
A. Purpose and Background
In October 2013, Congress passed the HSA (Pub. L. 113-40). The HSA
requires the Department of the Interior, through the BLM Director, to
offer for sale and auction annually a portion of the helium reserves
owned by the United States and stored underground in the Cliffside Gas
Field, near Amarillo, Texas (50 U.S.C. 167d(b)). On July 22, 2014, the
BLM published a ``Final Notice for Implementation of Helium Stewardship
Act Sales and Auctions'' in the Federal Register, (79 FR 42808) (2014
Final Notice). The 2014 Final Notice contained information about the
HSA, definitions of terms used in the Notice, the reasons for the
action, and a process for conducting the auctions and sales in FY 2014.
The 2014 Final Notice is available at the BLM helium operations Web
site at: https://www.blm.gov/nm/helium.
The BLM published a ``Notice of Proposed Action: Crude Helium Sale
and Auction for Fiscal Year 2016 Delivery'' in the Federal Register on
June 12, 2015 (80 FR 33548). The BLM requested comments regarding
elements of the FY 2016 sale and auction. These elements included:
a. The process for arriving at the price for helium to be sold at
the Phase B auction and sale, as described in section 1.01 of this
Notice;
b. The format of the auction, as described in section 1.04 of this
Notice;
c. Who will be allowed to purchase helium in the FY 2016 Phase B
sale, as described in section 2.01 of this Notice; and
d. The process for allocating helium for the FY 2016 Phase B sale,
as described in section 2.02 of this Notice.
A summary of changes made as a result of those comments is provided
below:
Summary of Changes
------------------------------------------------------------------------
Affected text Explanation of change
------------------------------------------------------------------------
Volumes Offered in the FY 2016 Added non-allocated and adjusted sale
Helium Auction and Sale. volumes.
Section 1.01..................... Added the additional three criteria
from the statute regarding pricing.
Section 1.03..................... The BLM set the auction date as
August 26, 2015, with auction
results published on the BLM Web
site on August 27, 2015; the BLM set
the sale date for September 1, 2015.
Section 2.01..................... The BLM re-instituted the non-
allocated sale.
Section 2.02..................... Added explanation for decision to
reinstitute non-allocated sale.
Section 2.03..................... Added information on how FY 2016
Phase B sale will be allocated among
those participating in the non-
allocated sale.
------------------------------------------------------------------------
[[Page 51305]]
B. Public Comment: Analysis of Comments and Changes
In response to the invitation in the Notice of Proposed Action, six
commenters, who are refiners and non-refiners, submitted 22 comments
totaling 8 pages. The BLM developed a table of comments and responses,
which is available for public review at: www.blm.gov/nm/Helium2016.
Based upon the comments received, the BLM has revised the process for
the FY 2016 sale and auction.
C. Volumes Offered in the FY 2016 Helium Auction and Sale
Table 1 identifies the volumes to be offered for auction and sale
in FY 2015 for FY 2016 delivery.
Table 1--Projected Volumes for Phase B Auction and Sales for FY 2016 Delivery
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total remaining
Forecasted In-kind sales production Volume Previously sold Volume Volume
Fiscal year (FY) production (sales to available for available for in FY 2014 available for available for
capability Federal users) sale/auction or auction Advanced sale non-allocated sale
(NITEC Study) delivery sale
--------------------------------------------------------------------------------------------------------------------------------------------------------
MMcf * MMcf MMcf MMcf MMcf MMcf MMcf
----------------------------------------------------------------------------------------------------------------------
FY 2016 **....................... 1,310 160 1,150 *** 300 **** 250 85 515
--------------------------------------------------------------------------------------------------------------------------------------------------------
* MMcf means one million cubic feet of gas measured at standard conditions of 14.65 per square inch atmosphere (psia) and 60 degrees Fahrenheit.
** Delivery for FY 2016 sales and auctions will be subject to a new storage contract beginning October 1, 2015.
*** 25% of total production capacity after deducting In-Kind (rounded).
**** In accordance with the HSA, 250 MMcf of FY 2016 volumes were offered in FY 2014.
D. FY 2016 Helium Auction
1.01 What is the minimum FY 2016 Phase B auction price and the FY
2016 Phase B sales price, and how were those prices determined? The
minimum FY 2016 Phase B auction price is $100 per Mcf (one thousand
cubic feet of gas measured at standard conditions of 14.65 psia and 60
degrees Fahrenheit). The BLM established the minimum auction price and
will calculate the FY 2016 Phase B sale price using four criteria
established in the HSA, in the following priority: (A) The sale price
of crude helium in auctions held by the Secretary; (B) Price
recommendations and disaggregated data from a qualified, independent
third party who has no conflict of interest, who shall conduct a
confidential survey of qualifying domestic helium transactions; (C) The
volume-weighted average price of all crude helium and pure helium
purchased, sold, or processed by persons in all qualifying domestic
helium transactions; and (D) The volume-weighted average cost of
converting gaseous crude helium into pure helium.
The BLM will announce the FY2016 Phase B sale price after the
auction has concluded and the BLM completes its analysis of the auction
information. The BLM will post the crude helium price for the FY2016
Phase B sale, effective October 1, 2015.
1.02 What will happen to the helium offered but not sold in the
helium auction? Any volume of helium offered, but not sold in the FY
2016 Phase B auction, will be added to the 600 MMcf available for sale
and will be offered for sale in the FY 2016 Phase B sale.
1.03 When will the sale and auction take place? The BLM intends to
offer helium for FY 2016 according to the following schedule:
August 26, 2015--FY 2016 Phase B helium auction held in Amarillo, Texas
August 27, 2015--FY 2016 Phase B helium auction results published on
the BLM Web site
September 1, 2015--Phase B Helium Sale
September 30, 2015--Revenues from auction and sale due to the BLM
1.04 What is the auction format? The auction will be a live
auction, held in the main conference room of the Amarillo Field Office
at 1:00 p.m. central time, on August 26, 2015. The address is 801 South
Fillmore, Suite 500, Amarillo, TX 79101. Anyone meeting the HSA
definition of a qualified bidder may participate in the auction. The
logistics for the auction and the pre-bid qualification form is
included in a document entitled Auction Guide at www.blm.gov/nm/
helium2016. Questions related to the auction can be submitted by phone
to the BLM at 806-356-1001.
1.05 Who is qualified to purchase helium at the Phase B auction?
Only qualified bidders, as defined in 50 U.S.C. 167(9), may participate
in and purchase helium at the Phase B auction. The BLM will make the
final determination of who is a qualified bidder using the HSA's
definition of a qualified bidder, regardless of whether or not that
person was previously determined to be a qualified bidder.
1.06 How many helium lots does the BLM anticipate offering at the
FY 2016 Phase B auction? The BLM anticipates auctioning 300 MMcf in a
total of 18 lots for FY 2016. The lots would be divided as follows:
(8) lots of 25 MMcf each;
(5) lots of 15 MMcf each; and
(5) lots of 5 MMcf each.
1.07 What must I do to bid at auction? The BLM has described the
live auction procedures, including detailed bidding instructions and
pre-bid registration requirements, in a document entitled FY 2016
Helium Auction Notice and Guide at www.blm.gov/nm/helium2016.
1.08 When will helium that is purchased at sale or won at auction
be available in the purchaser's storage account? The BLM will transfer
the volumes purchased in the FY 2016 Phase B auction and sale to the
buyer's storage accounts beginning on the first day of the month
following receipt of payment.
E. FY 2016 Phase B Helium Sale
2.01 Who will be allowed to purchase helium in the FY 2016 Phase B
sale? The Phase B crude helium sale will be separated into two distinct
portions, a non-allocated portion and an allocated portion. The non-
allocated portion will be ten percent of the total amount offered for
sale for FY2016 and will be available to those storage contract
holders, as of August 31, 2015, who do not have ability to accept
delivery of crude helium from the Federal Helium Pipeline (as defined
in 50 U.S.C. 167(2)). The allocated portion will be ninety percent of
the total amount offered for sale for FY2016 and will be available to
any person (including individuals, corporations, partnerships, or other
entities) with the ability to accept delivery of crude helium from the
Federal Helium
[[Page 51306]]
Pipeline (as defined in 50 U.S.C. 167(2)).
2.02 Why did the BLM re-institute the non-allocated sale? The BLM
specifically requested information regarding who will be allowed to
purchase helium in the FY 2016 Phase B sale in the draft Federal
Register notice. Based on comments received, the BLM determined that a
non-allocated sale would increase participation in the Federal Helium
Program and maximize the total financial return to the taxpayer.
2.03 How will helium sold in the FY2016 Phase B sale be allocated
among those participating in the non-allocated sale? The non-allocated
sale will be made available to all qualified entities not eligible to
participate in the allocated sales. The minimum volume that can be
requested is 1 MMcf. The total volume available for the non-allocated
portion of the sale is 85 MMcf. Any volumes not sold at auction will be
distributed between the non-allocated (10 percent) and the allocated
sale (90 percent). Any volumes not purchased at the non-allocated sale
will be sold in the allocated sale. A hypothetical example is provided
in a document entitled ``Hypothetical example of how the FY 2016 Phase
B Non-Allocated Sale would be conducted'' at www.blm.gov/nm/helium2016.
2.04 How will the helium sold in the FY 2016 Phase B sale be
allocated among the persons to accept delivery of crude helium from the
Federal Helium Pipeline? Any person desiring to participate in the
allocated portion of the FY 2016 Phase B sale needs to report its
excess refining capacity and operational capacity by August 14, 2015,
using the Excess Refining Capacity form, which can be downloaded at
https://www.blm.gov/nm/heliumreporting, or in a link entitled ``Required
Forms for Helium Reporting'' at www.blm.gov/nm/helium2016. Each person
participating in the sale will then be allocated a proportional share
based upon that person's operational capacity. A hypothetical example
is provided in a document entitled ``Hypothetical Example of how the FY
2016 Phase B Allocated Sale would be conducted'' at www.blm.gov/nm/
helium2016.
2.05 How does a person apply for access to the Federal Helium
Pipeline for the purpose of taking crude helium? The steps for taking
crude helium are provided in the BLM's Helium Operations Web site in a
document entitled ``How to Set Up a Storage Account and Pipeline
Access'' at https://www.blm.gov/nm/helium2016. Reporting forms show the
due dates for each report, and can be found in a document entitled
``Required Forms for Helium Reporting'' at www.blm.gov/nm/helium2016.
The length of time required to apply for and obtain access to the
Federal Helium Pipeline will vary based on the person's plans for plant
construction, pipeline metering installation, and other variables. The
BLM is available to provide technical assistance and information,
including contact information for applying for access and information
about any applicable National Environmental Policy Act requirements.
2.06 What will happen if one or more persons request an amount
other than the person's share of the volume offered for either the
allocated or the non-allocated sale? If one or more persons request
less than their share(s), any other person(s) who request(s) more than
their share(s) will be allowed to purchase the excess volume based on
the proportionate shares of operational capacity of all persons
requesting more than their initial shares.
2.07 What will happen if the total amount requested by persons is
less than the 515 MMcf offered in the FY 2016 Phase B allocated sale?
Any excess volume not sold in the FY 2016 Phase B allocated sale may be
available for future sale or auction.
F. Delivery of Helium in FY 2016
3.01 When will I receive the helium that I purchase in a sale or
win based on a successful auction bid? Helium purchased at the FY 2016
sale or won at the FY 2016 auction will be delivered starting October
1, 2015, in accordance with the crude helium storage contract. The
intent is to ensure delivery of all helium purchased at sale or won at
auction up to the BLM's production capability for the year.
3.02 How will the BLM prioritize delivery? The HSA gives priority
to Federal In-Kind helium (i.e., helium sold to Federal users) (50
U.S.C. 167d(b)(1)(D)) and (b)(3)). After meeting that priority, the BLM
will make delivery on a reasonable basis, as described in the crude
helium storage contract, to ensure storage contract holders who have
purchased or won helium at auction have the opportunity during the year
to have that helium produced or refined in monthly increments.
G. Background documents
Supplementary documents referenced in this Notice are available at
the BLM helium operations Web site at: https://www.blm.gov/nm/helium2016, and include the following:
a. The HSA (50 U.S.C. 167);
b. Proposed Notice, June 22, 2015;
c. Consolidated Comment Sheet from Proposed Notice;
d. FY 2016 Helium Auction Notice and Guide;
e. Table of Projected Volumes for Sales and Auctions for Delivery
for FY 2017-FY 2021 (informational);
f. Hypothetical example of how the FY 2016 Phase B Allocated Sale
would be conducted (informational);
g. Hypothetical example of how the FY 2016 Phase B Non-Allocated
Sale would be conducted (informational);
h. Schedule for Helium Auction and Sale;
i. How to Set Up a Storage Account and Pipeline Access;
j. 2011 Reference Helium Storage Contract (informational); and
k. Required Forms for Helium Reporting.
Authority: The HSA of 2013, Public Law 113-40, codified to
various sections in 50 U.S.C. 167-167q.
Corey Grant,
Acting State Director.
[FR Doc. 2015-20861 Filed 8-19-15; 4:15 pm]
BILLING CODE 4310-FB-P
