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S. Rept. 115-391 1 (2018-11-27)

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U.S. OVERNMENT
INFORMATION
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                                                        Calendar No. 678
                   115TH CONGRESS             S                      REPORT
                     2d Session  J            SENATE1                115-391





                               HELIUM EXTRACTION ACT OF 2017


                                 NOVEMBER 27, 2018.-Ordered to be printed


                     Ms. MURKOWSKJ, from the Committee on Energy and Natural
                                 Resources, submitted the following

                                         REPORT

                                         [To accompany H.R. 3279]
                            [Including cost estimate of the Congressional Budget Office]
                    The Committee on Energy and Natural Resources, to which was
                  referred the bill (H.R. 3279) to amend the Mineral Leasing Act to
                  provide that extraction of helium from gas produced under a Fed-
                  eral mineral lease shall maintain the lease as if the helium were
                  oil and gas, having considered the same, reports favorably thereon
                  without amendment and recommends that the bill do pass.
                                             PURPOSE
                    The purpose of H.R. 3279 is to amend the Mineral Leasing Act
                    (MLA) to promote the production of helium by taking into account
                  the value of helium in determining whether a Federal oil or gas
                  lease is producing in paying quantities for purposes of determining
                  whether the lease can be extended.
                                      BACKGROUND AND NEED
                    Helium is a naturally occurring element that is typically ex-
                  tracted from natural gas, and then subsequently refined to higher
                  purity grades for applications such as magnetic resonance imaging,
                  semiconductor manufacturing, military aviation, laboratory re-
                  search, and a variety of other uses.
                    Under the MLA, the Bureau of Land Management (BLM) admin-
                  isters natural gas leases on Federal lands. By statute, the initial
                  term of a lease is 10 years and can be extended as long as gas is
                  being produced in paying quantities. The MLA also specifies that
                  the United States reserves ownership of any helium produced from
                      89-010

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