Today, the Subcommittee on Energy and Mineral Resources held a hearing on the Bureau of Land Management’s (BLM) misinterpretation and misapplication of the Helium Stewardship Act (HSA). The HSA, which passed Congress in 2013 on a bipartisan basis, was designed to encourage more diverse industry participation in helium markets and increase market competition of helium. 

On June 30, Chairman Rob Bishop and Ranking Member Raúl Grijalva sent a letter which requested that the BLM offer a percentage of non-auctioned sales to interested stakeholders other than the refiners, in accord with the plain language of the HSA. The Committee received a letter back yesterday from the BLM in which the Bureau acknowledged certain implementation failings and promised to collaborate with Congress to achieve the HSA’s objectives.

Subcommittee Chairman Doug Lamborn (R-CO) opened the hearing with a critique of the BLM’s “resounding failure” to implement the 2013 Act, stating: 

“The BLM’s interpretation has perpetuated the anti-competitive system the Helium Stewardship Act was intended to do away with.  The GAO report specifically noted that the number of purchasers of federal helium from last year’s sales decreased by half when compared to the previous year.  This is unacceptable, and is primarily a consequence of how the BLM approached the non-auctioned sales.

“BLM has the opportunity to right the path,” Lamborn added. “It is our hope that the Bureau will reexamine the language of the Act, and ensure that competitive access is available to all interested stakeholders.”   

David Joyner of Air Liquide Helium America, Inc., whose company suffered from the BLM’s anti-competitive bidding process, explained:

“There should be no doubt that what took place last July was anything but an open and competitive market sale. If no changes are made to restore the non-allocated sale, BLM’s federal helium sales will continue to remain a closed and non-competitive market. Such a result is the opposite of what Congress intended, is harmful to end-users seeking supply diversity, and will not maximize potential returns for taxpayers. Fortunately, we believe that time remains for BLM to alter its course and establish the type of open and transparent system that Congress envisioned.”

Helium is an essential element used in MRI’s, air-to-air missile guidance systems, and a robust and competitive helium market is critical for American medical, defense, and energy industries.

Visit the website for witness testimony and more information on the hearing.