Crude Helium Auction and Sale for Fiscal Year 2019 Delivery, 29131-29134 [2018-13469]
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Federal Register / Vol. 83, No. 121 / Friday, June 22, 2018 / Notices
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
[Docket No. USCG–2018–0278]
Notice of Policy Implementing the 2016
Amendments to STCW in Support of
the Polar Code
Coast Guard, DHS.
Notice of policy; request for
comments.
AGENCY:
ACTION:
The Coast Guard is
announcing the availability of CG–MMC
Policy Letter No. 02–18 titled
‘‘Guidelines for Qualifications of
Personnel for Issuing STCW
Endorsements for Basic and Advanced
Polar Code Operations.’’ This policy
provides guidance for the issuance of
Merchant Mariner Credential
endorsements in accordance with the
International Convention on Standards
of Training, Certification and
Watchkeeping for Seafarers, 1978, as
amended, for Basic and Advanced Polar
Code Operations. This policy is effective
today, but the Coast Guard requests
public comments on it.
DATES: This policy is effective on June
22, 2018.
Comments and related material must
be received by the Coast Guard on or
before September 20, 2018.
ADDRESSES: Policy Letter No. 02–18 is
available in docket number USCG–
2018–0278 on https://
www.regulations.gov. You may also
submit comments identified at that
same online docket. See the ‘‘Public
Participation and Request for
Comments’’ portion of the
SUPPLEMENTARY INFORMATION section for
further instructions on submitting
comments.
SUMMARY:
For
information about this policy, contact
Cathleen Mauro CG–MMC–1 by phone
at (202) 372–1449 or by email at
Cathleen.B.Mauro@uscg,mil.
SUPPLEMENTARY INFORMATION: The
International Maritime Organization
(IMO) adopted the International Code
for Ships Operating in Polar Waters,
commonly referred to as the Polar Code,
to address safety and environmental
requirements for ships and the level of
training required for deck officers
serving on them. The Polar Code came
into force on January 1, 2017.
The International Convention on
Standards of Training, Certification and
Watchkeeping for Seafarers, 1978, as
amended, (STCW) Convention and Code
is the instrument that provides the
international standards for seafarer
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FOR FURTHER INFORMATION CONTACT:
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training. Through the work of the IMO’s
Sub-committee on Human Element,
Training and Watchkeeping,
amendments to the STCW Convention
and Code were developed to define the
training requirements supporting the
implementation of the Polar Code.
These amendments provide minimum
standards of competence, sea service
and training requirements for
certification at the basic and advanced
levels. They also contain transitional
provisions for mariners with experience
operating in polar waters to meet the
new requirements. These amendments
enter into force on July 1, 2018. After
this date, deck officers on ships
operating in polar waters will be
required to have a Merchant Mariner
Credential (MMC) endorsement in Basic
or Advanced Polar Code operations.
To address the gap between the time
the Polar Code entered into force
(January 2017) and the time the
supporting STCW amendments enter
into force (July 2018), the Coast Guard
provided CG–OES Policy Letter No. 01–
16, ‘‘Guidelines for Training of
Personnel on Ships Subject to the Polar
Code’’ (81 FR 7552, Feb. 12, 2016).
CG–OES Policy Letter No. 01–16 was
an interim measure to ensure there
would be sufficiently trained U.S.
mariners by the time the Polar Code
entered into force. The Coast Guard did
not issue endorsements to mariners who
completed training in accordance with
that policy.
Cognizant of the approaching date
that the STCW amendments enter into
force, the Coast Guard will issue STCW
endorsements in Basic and Advanced
Polar Code Operations to mariners who
have voluntarily fulfilled the STCW
requirements and who request the
endorsement. CG–MMC policy letter
No. 02–18 provides information on how
to request the endorsement. These
endorsements are not currently
mandated by Coast Guard regulation;
however, since the United States is
signatory to the STCW Convention,
vessel owners and operators should be
aware that their vessels are subject to
foreign port state control actions
including detention if mariners are not
compliant with the STCW Convention
and Code.
The policy letter is effective today,
and the National Maritime Center is
now accepting applications for Polar
Code Operations endorsements. We
request public comments on the policy
letter, including the instructions for
requesting endorsements, so that we
may improve the letter if needed.
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Public Participation and Request for
Comments
We view public participation as
essential to effective policy
development, and will consider all
comments and material received during
the comment period. If you submit a
comment, please include the docket
number for this action, and indicate the
specific section of CG–MMC Policy
Letter No. 02–18 to which your
comment applies. Please make your
comments as specific as possible, and
include any applicable supporting data
or other information, such as cost
information, you may have.
We encourage you to submit
comments through the Federal
eRulemaking Portal at https://
www.regulations.gov, using the
instructions on that website. If your
material cannot be submitted using
https://www.regulations.gov, contact the
person in the FOR FURTHER INFORMATION
CONTACT section of this document for
alternate instructions. Additionally, if
you go to the online docket and sign up
for email alerts, you will be notified
when comments are posted or if a final
rule is published.
We accept anonymous comments. All
comments received will be posted
without change to https://
www.regulations.gov and will include
any personal information you have
provided. For more about privacy and
the docket, visit https://
www.regulations.gov/privacyNotice.
Authority: We issue this notice of policy
availability under the authority of 5 U.S.C.
552(a) and 46 U.S.C. 7101.
Dated: June 19, 2018.
Jeffrey G. Lantz,
Director of Commercial Regulations and
Standards.
[FR Doc. 2018–13465 Filed 6–21–18; 8:45 am]
BILLING CODE 9110–04–P
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
[LLNM006200 L99110000.EK0000 XXX
L4053RV]
Crude Helium Auction and Sale for
Fiscal Year 2019 Delivery
Bureau of Land Management,
Interior.
ACTION: Notice of auction and sale.
AGENCY:
The Secretary of the Interior
(Secretary), through the Bureau of Land
Management (BLM) New Mexico State
Office, is issuing this Notice to conduct
an auction and sale from the Federal
Helium Program, administered by the
SUMMARY:
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Federal Register / Vol. 83, No. 121 / Friday, June 22, 2018 / Notices
BLM New Mexico, Amarillo Field
Office. The Helium Stewardship Act of
2013 (HSA) requires the BLM to
conduct an annual auction and sale of
crude helium. The BLM will use the
auction and sale process that was
established for a previous sale in a
Federal Register notice dated June 20,
2017.
The schedule for the auction and
sale process is:
July 18, 2018—FY 2019 helium auction
held in Amarillo, Texas
July 20, 2018—FY 2019 helium auction
results published on the BLM website
July 25, 2018—Invoices for auction sent
on or before this date; payments due
30 days from invoice
July 27, 2018—Invitation for offers (IFO)
posted for helium sale
August 3, 2018—Bids due from IFO
August 6, 2018—Award announcements
published on the BLM website
August 10, 2018—Invoices for sale sent
on or before; payments due 30 days
from invoice
September 30, 2018—Helium
transferred to buyers’ storage accounts
If a high bidder does not submit its
payment for helium won at auction by
September 15, 2018, volumes will be
offered for sale proportionally to the
bidders who participated in the
Conservation Helium Sale, but who did
DATES:
not receive their requested volume of
helium.
ADDRESSES: The July 18, 2018, helium
auction will be held in the main
conference room of the Amarillo Field
Office, 801 South Fillmore, Suite 500,
Amarillo, TX 79101. Supplementary
documents referenced in this Notice are
available at the BLM helium operations
website at: www.blm.gov/programs/
energy-and-minerals/helium, see the
Helium Stewardship, HSA
Implementation page of the website.
FOR FURTHER INFORMATION CONTACT:
Samuel R.M. Burton, Amarillo Field
Manager, telephone: 806–356–1000,
email: sburton@blm.gov. Persons who
use a telecommunications device for the
deaf (TDD) may call the Federal Relay
Service (FRS) at 1–800–877–8339. The
FRS 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. The HSA requires the Department
of the Interior, through the BLM
Director, to offer for auction and sale
annually a portion of the helium
reserves owned by the United States and
stored underground at the Cliffside Gas
Field near Amarillo, Texas.
On July 23, 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.
On August 24, 2015, the BLM
published a ‘‘Notice of Final Action:
Crude Helium Sale and Auction for
Fiscal Year 2016 Delivery’’ in the
Federal Register (80 FR 51304) (2015
Final Notice). The Final Notices for FY
2015 and FY2016 further refined the
process the BLM used in FY 2017 for
conducting the auction and sale of
crude helium. The BLM will use the
process set forth in the June 20, 2017
Final Notice (82 FR 28090) for the
auction and sale of crude helium to
occur in FY 2018 for FY 2019 delivery.
All previous Final Notices are
available from the Helium Stewardship,
HSA Implementation page of the BLM
helium website at www.blm.gov/
programs/energy-and-minerals/helium.
B. Volumes Offered in the FY 2019
Helium Auction and Sale
Table 1 identifies the volumes to be
offered for auction and sale in FY 2018
for FY 2019 delivery.
TABLE 1—PROJECTED VOLUMES FOR AUCTION AND SALES FOR FY 2019 DELIVERY
Forecasted
production
capability
(NITEC study)
Total remaining
production
available for
sale/auction or
delivery
Volume
available
for
auction
Volume
available
for
non-allocated
sale
Volume
available
for
sale
MMcf *
Fiscal year
(FY)
In-kind sales
(sales to
federal
users)
MMcf
MMcf
MMcf
MMcf
MMcf
825
130
345 ***
240 **
10
95
FY 2019 ...............................................
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* MMcf means one million cubic feet of gas measured at standard conditions of 14.65 per square inch atmosphere (psia) and 60 degrees Fahrenheit.
** 70 percent of total production capacity after deducting in-kind (rounded).
*** Volumes offered fulfill the requirement of the HSA to reach Phase C.
C. FY 2019 Helium Auction
1.01 What is the minimum FY 2019
auction price and the FY 2019 sales
price? The minimum FY 2019 auction
price is $110 per Mcf (one thousand
cubic feet of gas measured at standard
conditions of 14.65 psia and 60 degrees
Fahrenheit). The BLM will announce
the FY 2019 sale price after the auction
has concluded, and the BLM completes
its analysis of the auction information.
The BLM will use this information to
publish the crude helium price for FY
2019. The BLM publishes this crude
helium price, effective October 1, 2018,
in order to provide a consistent index to
the world-wide helium market.
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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 2019 auction, will
be added to the helium available for sale
and will be offered in the FY 2019 sale.
1.03 When will the auction and sale
take place? The BLM will offer helium
for FY 2019 according to the following
schedule:
July 18, 2018—FY 2019 helium auction
held in Amarillo, Texas
July 20, 2018—FY 2019 helium auction
results published on the BLM website
July 25, 2018—Invoices for auction sent
on or before this date; payments due
30 days from invoice
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July 27, 2018—Invitation for offers (IFO)
posted for helium sale
August 3, 2018—Bids due from IFO
August 6, 2018—Award announcements
published on the BLM website
August 10, 2018—Invoices for sale sent
on or before; payments due 30 days
from invoice
September 30, 2018—Helium
transferred to buyers’ storage accounts
(in accordance with Section 1.08)
If the high bidder does not submit its
payment for helium won at auction by
September 15, 2018, volumes will be
offered for sale proportionally to the
bidders who participated in the
Conservation Helium Sale, but who did
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Federal Register / Vol. 83, No. 121 / Friday, June 22, 2018 / Notices
not receive their requested volume of
helium.
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 p.m. Central
Time, on July 19, 2018. 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, ‘‘FY 2019 Helium
Auction Notice and Guide’’ on the
Helium Stewardship page of the BLM
Helium Program website at
www.blm.gov/programs/energy-andminerals/helium. Questions related to
the auction can be submitted by phone
to the BLM at 806–356–1000.
1.05 Who is qualified to purchase
helium at the auction? Only qualified
bidders, as defined in 50 U.S.C. 167(9),
may participate in and purchase helium
at the 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 2019
auction? The BLM anticipates
auctioning 240 MMcf in a total of 14 lots
for delivery in FY 2019. The lots would
be divided as follows:
6 lots of 25 MMcf each; and
5 lots of 15 MMcf each; and
3 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 2019 Auction
Notice and Guide’’ available on the
BLM’s helium page at www.blm.gov/
programs/energy-and-minerals/helium.
The ‘‘FY 2019 Auction Notice and
Guide’’ is located in the Helium
Stewardship, HSA Implementation page
of the BLM Federal Helium Program
website.
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 won in the FY 2019 auction or
purchased at the FY 2019 sale to the
buyer’s storage accounts on September
30, 2018.
D. FY 2019 Helium Sale
2.01 Who will be allowed to
purchase helium in the FY 2019 sale?
The crude helium sale will be separated
into two distinct portions, a nonallocated portion and an allocated
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portion. The non-allocated portion will
be ten percent of the total amount
offered for sale for FY 2019, and will be
available to those storage contract
holders who do not have the ability to
accept delivery of crude helium from
the Federal Helium Pipeline (as defined
in 50 U.S.C. 167(2)) as of May 30, 2018.
The allocated portion will be 90 percent
of the total amount offered for sale for
FY 2019, 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 Pipeline (as defined in
50 U.S.C. 167(2)).
2.02 How will helium sold in the FY
2019 sale be allocated among those
participating in the non-allocated sale?
The non-allocated sale will be made
available to all qualified offerors 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 10 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 nonallocated sale will be sold in the
allocated portion.
2.03 How will the helium sold in the
FY 2019 sale be allocated among the
persons who have operational capacity
to accept delivery of crude helium from
the Federal Helium Pipeline? Any
person wishing to participate in the
allocated portion of the FY 2019 sale
needs to report its excess refining
capacity and operational capacity a
minimum of 14 calendar days prior to
the sale, using the Excess Refining
Capacity form. The form can be
downloaded at www.blm.gov/programs/
energy-and-minerals/helium. The form
is located in the Helium Stewardship,
HSA Implementation page of the
website. Each person participating in
the sale will then be allocated a
proportional share based upon that
person’s operational capacity.
2.04 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 website at www.blm.gov/
programs/energy-and-minerals/helium.
The steps are contained in a document
entitled, ‘‘How to Establish a Storage
Contract and Pipeline Connection
Point,’’ located in the Federal Helium
Operations/Helium Storage page of the
website. Reporting forms can be
downloaded at the same website
address. Reporting forms are located in
the Helium Stewardship, HSA
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29133
Implementation page of the BLM
Federal Helium Program website, and
show the requirements and due dates
for each report. The length of time
required to apply for and obtain access
to the Federal Helium Pipeline can vary
based on the person’s plans for plant
construction, pipeline metering
installation, and other variables. The
BLM is available to provide technical
assistance, including contact
information for applying for access and
meeting any applicable National
Environmental Policy Act requirements.
E. Delivery of Helium in FY 2019
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 2019 sale or won
at the FY 2019 auction will be delivered
starting September 30, 2018, in
accordance with the crude helium
storage contract. The intent is to ensure
delivery of all helium purchased at sale
or 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 helium at
sale or won helium at auction have the
opportunity during the year to have that
helium produced or refined in monthly
increments.
F. Background Documents
Supplementary documents referenced
in this Notice are available at the BLM
helium operations website at:
www.blm.gov/programs/energy-andminerals/helium. They are located in
the Helium Stewardship, HSA
Implementation page of the website, and
include the following documents:
a. This Federal Register Notice for FY
2019 Delivery;
b. The HSA (50 U.S.C. 167);
c. FY 2019 Helium Auction Notice
and Guide;
d. 2016 Storage Contract (template for
information only);
e. Determination of Fair Market Value
Pricing of Crude Helium;
f. Storage Fees;
g. Required Forms for Helium
Reporting; and
h. FY 2014 through FY 2018 Federal
Register Notices for Helium Auctions
and Sales.
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Federal Register / Vol. 83, No. 121 / Friday, June 22, 2018 / Notices
Authority: The HSA of 2013 (Pub. L. 113–
40) codified to various sections in 50 U.S.C.
167–167q.
Aden L. Seidlitz,
Bureau of Land Management, Acting State
Director, New Mexico.
[FR Doc. 2018–13469 Filed 6–21–18; 8:45 am]
BILLING CODE 4310–FB–P
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
[16X.LLUT920000.L71220
0000.ER0000.LVTFJX496770.241A; AZA–
34941]
Notice of Intent To Amend a Portion of
the Arizona Strip Field Office Resource
Management Plan Related to the
Kanab Creek Area of Critical
Environmental Concern, Arizona
Bureau of Land Management,
Interior.
ACTION: Notice of intent.
AGENCY:
In compliance with the
National Environmental Policy Act of
1969 (NEPA), as amended, and the
Federal Land Policy and Management
Act of 1976 (FLPMA), as amended, the
Bureau of Land Management (BLM),
Arizona Strip Field Office, St. George,
Utah, intends to amend a portion of the
Arizona Strip Field Office (ASFO)
Resource Management Plan (RMP)
related to the Kanab Creek Area of
Critical Environmental Concern (ACEC).
The BLM will incorporate the analysis
for the RMP amendment into a Federal
Energy Regulatory Commission (FERC)
Environmental Impact Statement (EIS)
for the Lake Powell Pipeline Project.
FERC is the lead agency and the BLM
is a cooperating agency. FERC’s EIS will
analyze the proposed Lake Powell
Pipeline Project and the proposed RMP
amendment to consider allowing
development of the Lake Powell
Pipeline within the Kanab Creek ACEC.
By this notice the BLM is announcing
the beginning of the scoping process to
solicit public comments and identify
issues pursuant to BLM’s land use
planning regulations.
DATES: This notice initiates the public
scoping process for the RMP
amendment with an associated EIS.
Comments on issues may be submitted
in writing until July 23, 2018. The
date(s) and location(s) of any scoping
meetings will be announced at least 15
days in advance through local media,
newspapers, and the BLM website at:
https://www.blm.gov/arizona. In order to
be included in the analysis, all
comments must be received prior to the
close of the 30-day public scoping
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SUMMARY:
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period or 15 days after the last public
meeting, whichever is later. The BLM
will provide additional opportunities
for public participation as appropriate.
ADDRESSES: You may submit comments
on issues and planning criteria related
to the Kanab Creek ACEC RMP
amendment by any of the following
methods:
• Website: https://eplanning.blm.gov/
epl-front-office/eplanning/nepa/nepa_
register.do.
• Email: BLM_AZ_ASFO_comments@
blm.gov.
• Fax: 435–688–3258.
• Mail: BLM, Arizona Strip Field
Office, Attention: Lorraine Christian/
Kanab Creek ACEC RMP Amendment,
345 East Riverside Drive, St. George,
Utah 84790–6714.
Documents pertinent to this proposal
may be examined at the Arizona Strip
Field Office at the address above.
FOR FURTHER INFORMATION CONTACT:
Lorraine Christian, BLM Arizona Strip
Field Manager, telephone: 435–688–
3200; email: lmchrist@blm.gov. Contact
Ms. Christian to have your name added
to our mailing list. Persons who use a
telecommunications device for the deaf
(TDD) may call the Federal Relay
Service (FRS) at 1–800–877–8339 to
contact the above individual during
normal business hours. The FRS is
available 24 hours a day, 7 days a week,
to leave a message or question with the
above individual. You will receive a
reply during normal business hours.
SUPPLEMENTARY INFORMATION: The
planning area is located in Coconino
and Mohave Counties, Arizona. Only a
small portion (900 acres) of the Kanab
Creek ACEC would be affected by the
proposed Lake Powell Pipeline route,
but an RMP amendment is required in
order to address inconsistencies
between the management direction in
the current RMP, the proposed route for
the pipeline, and an existing utility
corridor designated under the Energy
Policy Act of 2005.
Approximately 1 mile of the proposed
pipeline would run within an existing
utility corridor, designated by the BLM
pursuant to Section 368 of the Energy
Policy Act of 2005, which overlaps a
portion of the ACEC. Approximately 0.5
mile of the proposed pipeline would
run inside the ACEC, but outside the
existing utility corridor; this pipeline
route is proposed due to steep rugged
terrain which could be avoided by
routing the pipeline outside of the
utility corridor. The ASFO RMP
encourages new utility rights-of-way
(ROW) to be located within the utility
corridor to the greatest extent possible.
However, the ASFO RMP also
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established ACECs as ‘‘avoidance areas’’
for new ROWs. The BLM proposes to
amend the ASFO RMP to: (1) Resolve
the conflict between the designated
Section 368 utility corridor and the
ACEC decisions; and (2) Determine
whether to allow the proposed Lake
Powell Pipeline outside of the utility
corridor, and if so, change the visual
resource management class for that
portion of the ACEC from Class II
(where changes to the landscape should
be low) to either Class III or Class IV in
order to be compatible with utility
development.
The purpose of the public scoping
process is to determine relevant issues
that will influence the scope of the
environmental analysis, including
alternatives, and guide the planning
process. Preliminary issues for the RMP
amendment area have been identified by
BLM personnel; Federal, State, and local
agencies; and other stakeholders. These
issues include: Cultural resources,
specifically tribal resources and values;
special status species; riparian habitat;
visual resources; special designations
(i.e., Kanab Creek ACEC); and lands and
realty, specifically the existing
designated utility corridor—Corridor
No. 113–116. The analysis will also
consider mitigation.
Preliminary planning criteria include:
(1) The BLM will continue to manage
the Kanab Creek ACEC in accordance
with FLPMA and other applicable laws
and regulations; (2) The BLM will
continue to manage Utility Corridor No.
113–116 in accordance with FLPMA
and other applicable laws and
regulations; and (3) The amendment
process will follow the FLPMA
planning process.
You may submit comments on issues
and planning criteria in writing to the
BLM at any ASFO RMP amendment
public-scoping meeting, or you may
submit them to the BLM using one of
the methods listed in the ADDRESSES
section above. You should submit
comments by the close of the 30-day
scoping period or within 15 days after
the last public meeting, whichever is
later.
The BLM will coordinate the
processes of fulfilling requirements of
NEPA and Section 106 of the National
Historic Preservation Act (54 U.S.C.
306108), as provided in 36 CFR
800.2(d)(3).
The BLM will consult with Indian
tribes on a government-to-government
basis in accordance with Executive
Order 13175 and other policies. Tribal
concerns, including impacts on Indian
trust assets and potential impacts to
cultural resources, will be given due
consideration. Federal, State, and local
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]]>Agencies
[Federal Register Volume 83, Number 121 (Friday, June 22, 2018)]
[Notices]
[Pages 29131-29134]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-13469]
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DEPARTMENT OF THE INTERIOR
Bureau of Land Management
[LLNM006200 L99110000.EK0000 XXX L4053RV]
Crude Helium Auction and Sale for Fiscal Year 2019 Delivery
AGENCY: Bureau of Land Management, Interior.
ACTION: Notice of auction and sale.
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SUMMARY: The Secretary of the Interior (Secretary), through the Bureau
of Land Management (BLM) New Mexico State Office, is issuing this
Notice to conduct an auction and sale from the Federal Helium Program,
administered by the
[[Page 29132]]
BLM New Mexico, Amarillo Field Office. The Helium Stewardship Act of
2013 (HSA) requires the BLM to conduct an annual auction and sale of
crude helium. The BLM will use the auction and sale process that was
established for a previous sale in a Federal Register notice dated June
20, 2017.
DATES: The schedule for the auction and sale process is:
July 18, 2018--FY 2019 helium auction held in Amarillo, Texas
July 20, 2018--FY 2019 helium auction results published on the BLM
website
July 25, 2018--Invoices for auction sent on or before this date;
payments due 30 days from invoice
July 27, 2018--Invitation for offers (IFO) posted for helium sale
August 3, 2018--Bids due from IFO
August 6, 2018--Award announcements published on the BLM website
August 10, 2018--Invoices for sale sent on or before; payments due 30
days from invoice
September 30, 2018--Helium transferred to buyers' storage accounts
If a high bidder does not submit its payment for helium won at auction
by September 15, 2018, volumes will be offered for sale proportionally
to the bidders who participated in the Conservation Helium Sale, but
who did not receive their requested volume of helium.
ADDRESSES: The July 18, 2018, helium auction will be held in the main
conference room of the Amarillo Field Office, 801 South Fillmore, Suite
500, Amarillo, TX 79101. Supplementary documents referenced in this
Notice are available at the BLM helium operations website at:
www.blm.gov/programs/energy-and-minerals/helium, see the Helium
Stewardship, HSA Implementation page of the website.
FOR FURTHER INFORMATION CONTACT: Samuel R.M. Burton, Amarillo Field
Manager, telephone: 806-356-1000, email: [email protected]. Persons who
use a telecommunications device for the deaf (TDD) may call the Federal
Relay Service (FRS) at 1-800-877-8339. The FRS 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. The HSA requires the
Department of the Interior, through the BLM Director, to offer for
auction and sale annually a portion of the helium reserves owned by the
United States and stored underground at the Cliffside Gas Field near
Amarillo, Texas.
On July 23, 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.
On August 24, 2015, the BLM published a ``Notice of Final Action:
Crude Helium Sale and Auction for Fiscal Year 2016 Delivery'' in the
Federal Register (80 FR 51304) (2015 Final Notice). The Final Notices
for FY 2015 and FY2016 further refined the process the BLM used in FY
2017 for conducting the auction and sale of crude helium. The BLM will
use the process set forth in the June 20, 2017 Final Notice (82 FR
28090) for the auction and sale of crude helium to occur in FY 2018 for
FY 2019 delivery.
All previous Final Notices are available from the Helium
Stewardship, HSA Implementation page of the BLM helium website at
www.blm.gov/programs/energy-and-minerals/helium.
B. Volumes Offered in the FY 2019 Helium Auction and Sale
Table 1 identifies the volumes to be offered for auction and sale
in FY 2018 for FY 2019 delivery.
Table 1--Projected Volumes for Auction and Sales for FY 2019 Delivery
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Forecasted In-kind sales Total remaining Volume Volume Volume
production (sales to production available for available for available for
capability federal users) available for auction non-allocated sale
Fiscal year (FY) (NITEC study) ----------------- sale/auction or ----------------- sale ----------------
----------------- delivery -----------------
MMcf ------------------- MMcf MMcf
MMcf * MMcf MMcf
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FY 2019......................................... 825 130 345 *** 240 ** 10 95
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* MMcf means one million cubic feet of gas measured at standard conditions of 14.65 per square inch atmosphere (psia) and 60 degrees Fahrenheit.
** 70 percent of total production capacity after deducting in-kind (rounded).
*** Volumes offered fulfill the requirement of the HSA to reach Phase C.
C. FY 2019 Helium Auction
1.01 What is the minimum FY 2019 auction price and the FY 2019
sales price? The minimum FY 2019 auction price is $110 per Mcf (one
thousand cubic feet of gas measured at standard conditions of 14.65
psia and 60 degrees Fahrenheit). The BLM will announce the FY 2019 sale
price after the auction has concluded, and the BLM completes its
analysis of the auction information. The BLM will use this information
to publish the crude helium price for FY 2019. The BLM publishes this
crude helium price, effective October 1, 2018, in order to provide a
consistent index to the world-wide helium market.
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
2019 auction, will be added to the helium available for sale and will
be offered in the FY 2019 sale.
1.03 When will the auction and sale take place? The BLM will offer
helium for FY 2019 according to the following schedule:
July 18, 2018--FY 2019 helium auction held in Amarillo, Texas
July 20, 2018--FY 2019 helium auction results published on the BLM
website
July 25, 2018--Invoices for auction sent on or before this date;
payments due 30 days from invoice
July 27, 2018--Invitation for offers (IFO) posted for helium sale
August 3, 2018--Bids due from IFO
August 6, 2018--Award announcements published on the BLM website
August 10, 2018--Invoices for sale sent on or before; payments due 30
days from invoice
September 30, 2018--Helium transferred to buyers' storage accounts (in
accordance with Section 1.08)
If the high bidder does not submit its payment for helium won at
auction by September 15, 2018, volumes will be offered for sale
proportionally to the bidders who participated in the Conservation
Helium Sale, but who did
[[Page 29133]]
not receive their requested volume of helium.
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 p.m. Central Time, on July 19, 2018. 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, ``FY 2019 Helium Auction Notice and
Guide'' on the Helium Stewardship page of the BLM Helium Program
website at www.blm.gov/programs/energy-and-minerals/helium. Questions
related to the auction can be submitted by phone to the BLM at 806-356-
1000.
1.05 Who is qualified to purchase helium at the auction? Only
qualified bidders, as defined in 50 U.S.C. 167(9), may participate in
and purchase helium at the 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 2019 auction? The BLM anticipates auctioning 240 MMcf in a total of
14 lots for delivery in FY 2019. The lots would be divided as follows:
6 lots of 25 MMcf each; and
5 lots of 15 MMcf each; and
3 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 2019
Auction Notice and Guide'' available on the BLM's helium page at
www.blm.gov/programs/energy-and-minerals/helium. The ``FY 2019 Auction
Notice and Guide'' is located in the Helium Stewardship, HSA
Implementation page of the BLM Federal Helium Program website.
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 won in the FY 2019 auction or purchased at the FY 2019 sale
to the buyer's storage accounts on September 30, 2018.
D. FY 2019 Helium Sale
2.01 Who will be allowed to purchase helium in the FY 2019 sale?
The 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 FY
2019, and will be available to those storage contract holders who do
not have the ability to accept delivery of crude helium from the
Federal Helium Pipeline (as defined in 50 U.S.C. 167(2)) as of May 30,
2018. The allocated portion will be 90 percent of the total amount
offered for sale for FY 2019, 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 Pipeline (as defined in 50 U.S.C. 167(2)).
2.02 How will helium sold in the FY 2019 sale be allocated among
those participating in the non-allocated sale? The non-allocated sale
will be made available to all qualified offerors 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 10 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 portion.
2.03 How will the helium sold in the FY 2019 sale be allocated
among the persons who have operational capacity to accept delivery of
crude helium from the Federal Helium Pipeline? Any person wishing to
participate in the allocated portion of the FY 2019 sale needs to
report its excess refining capacity and operational capacity a minimum
of 14 calendar days prior to the sale, using the Excess Refining
Capacity form. The form can be downloaded at www.blm.gov/programs/energy-and-minerals/helium. The form is located in the Helium
Stewardship, HSA Implementation page of the website. Each person
participating in the sale will then be allocated a proportional share
based upon that person's operational capacity.
2.04 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 website at
www.blm.gov/programs/energy-and-minerals/helium. The steps are
contained in a document entitled, ``How to Establish a Storage Contract
and Pipeline Connection Point,'' located in the Federal Helium
Operations/Helium Storage page of the website. Reporting forms can be
downloaded at the same website address. Reporting forms are located in
the Helium Stewardship, HSA Implementation page of the BLM Federal
Helium Program website, and show the requirements and due dates for
each report. The length of time required to apply for and obtain access
to the Federal Helium Pipeline can vary based on the person's plans for
plant construction, pipeline metering installation, and other
variables. The BLM is available to provide technical assistance,
including contact information for applying for access and meeting any
applicable National Environmental Policy Act requirements.
E. Delivery of Helium in FY 2019
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 2019
sale or won at the FY 2019 auction will be delivered starting September
30, 2018, in accordance with the crude helium storage contract. The
intent is to ensure delivery of all helium purchased at sale or 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 helium at sale or won helium at auction have the opportunity
during the year to have that helium produced or refined in monthly
increments.
F. Background Documents
Supplementary documents referenced in this Notice are available at
the BLM helium operations website at: www.blm.gov/programs/energy-and-minerals/helium. They are located in the Helium Stewardship, HSA
Implementation page of the website, and include the following
documents:
a. This Federal Register Notice for FY 2019 Delivery;
b. The HSA (50 U.S.C. 167);
c. FY 2019 Helium Auction Notice and Guide;
d. 2016 Storage Contract (template for information only);
e. Determination of Fair Market Value Pricing of Crude Helium;
f. Storage Fees;
g. Required Forms for Helium Reporting; and
h. FY 2014 through FY 2018 Federal Register Notices for Helium
Auctions and Sales.
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Authority: The HSA of 2013 (Pub. L. 113-40) codified to various
sections in 50 U.S.C. 167-167q.
Aden L. Seidlitz,
Bureau of Land Management, Acting State Director, New Mexico.
[FR Doc. 2018-13469 Filed 6-21-18; 8:45 am]
BILLING CODE 4310-FB-P
