Minerals management: Oil and gas leasing Helium contracts,
[Federal Register: December 3, 1998 (Volume 63, Number 232)]
[Rules and Regulations]
[Page 66760-66762]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03de98-19]
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
30 CFR Part 602; 43 CFR Part 3195
[WO-130-1820-00-24 1A]
RIN 1004-AD24
Helium Contracts
AGENCY: Bureau of Land Management, Interior.
ACTION: Final rule.
SUMMARY: The Bureau of Land Management (BLM) is finalizing the interim rule that was published in the Federal Register on July 28, 1998 (63 FR 40175). This action implements the requirements of the Helium Privatization Act of 1996 by establishing procedures for the helium program, defining the obligations of the Federal helium suppliers and users, and removing the Bureau of Mines regulations governing helium distribution contracts. The effect of this action is to adopt the interim rule as a final rule without change.
DATES: This rule is effective on December 3, 1998.
FOR FURTHER INFORMATION CONTACT: Shirlean Beshir, Regulatory Affairs Group (WO-630), Bureau of Land Management, Mail Stop 401LS, 1849 ``C'' Street, NW, Washington, DC 20240; telephone (202) 452-5033 (Commercial or FTS) and Timothy R. Spisak, (806) 324-2656 (Commercial or FTS).
SUPPLEMENTARY INFORMATION: I. Background II. Discussion of the Final Rule and Response to Comments III. Procedural Matters
[[Page 66761]]
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Background
These regulations are issued by BLM to implement the requirements of the Helium Privatization Act of 1996, Public Law 104-273 (the Act). BLM adds these regulations as a new Part 3195 to BLM's oil and gas regulations. This action implements the requirements of the Act by:
‹bullet› Establishing procedures for the helium program;
‹bullet› Defining the obligations of Federal helium suppliers and users; and
‹bullet› Removing the Bureau of Mines regulations at 30 CFR 602 governing helium distribution contracts.
On July 28, 1998, BLM published an interim rule in the Federal Register (63 FR 40175). The written comment period on the interim rule closed August 27, 1998. BLM received public comments from one private industry supplier, which we considered in finalizing the rule.
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Discussion of Final Rule and Response to Comments
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Legal Basis for the Final Rule
The Act requires that:
‹bullet› BLM discontinue producing, marketing, and selling refined helium.
‹bullet› Persons who supply a major helium requirement to Federal agencies contract with BLM to purchase an equivalent amount of crude helium from BLM.
‹bullet› BLM use a legislatively mandated formula for determining the minimum price for crude helium.
Accordingly, this action implements the requirements of the Act by establishing procedures for the helium program, defining the obligations of the Federal helium suppliers and users, and removing the Bureau of Mines regulations governing helium distribution contracts (5 U.S.C. 301).
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General and Specific Comments
The private industry supplier raised the following concerns:
‹bullet› The interim rule does not address pre-existing contracts executed under Bureau of Mines regulations;
‹bullet› Whether the pre-existing contracts should be terminated or rebid under the new regulations;
‹bullet› Whether the pre-existing contracts should be allowed to run their course; and
‹bullet› How should BLM handle the situation where a distributor, who is not an approved Federal helium supplier, is supplying helium to Federal agencies.
Any pre-existing contracts (pre-existing contracts) between former helium distributors and the BLM that were in place were cancelled effective April 1, 1998. Thus, those distributors lost the ability to act as an authorized Federal helium supplier on April 1, 1998. Therefore, if any such distributors wish to continue to sell a major helium requirement to Federal agencies to complete contractual obligations entered into prior to April 1, 1998, or to enter into new contracts to sell major helium requirements to Federal agencies, they must execute an In-Kind Crude Helium Sales Contract with BLM to allow them to do so. Further, as the disposition of pre-existing contracts was covered in the interim rule, no change to the rule is necessary. Accordingly, the interim rule adding 43 CFR Part 3195 and removing 30 CFR Part 602 which was published in the Federal Register (63 FR 40175) on July 28, 1998, is hereby adopted as a final rule without change.
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Procedural Matters
Executive Order 12866
This final rule is not a significant rule and was not subject to review by the Office of Management and Budget under Executive Order 12866. This final rule will not have an effect of $100 million or more on the economy. It will not adversely affect in a material way the economy, productivity, competition, jobs, the environment, public health or safety, or State, local or tribal governments or communities. The final rule merely provides the BLM a means to document and bill sales of refined helium to Federal agencies and their contractors. The total maximum dollar value of the crude helium sales is estimated at about $15 million annually. The crude helium sales required by the Act replace the BLM refined helium sales being discontinued by the same Act. The final rule adds a small administrative cost to track crude and refined helium sales. This final rule will not create a serious inconsistency or otherwise interfere with an action taken or planned by another agency. This rule does not alter the budgetary effects or entitlements, grants, user fees, or loan programs or the rights or obligations of their recipients. This rule merely fulfills the requirements of the Act, and does not raise novel legal or policy issues.
Regulatory Flexibility Act
The Department certifies that this document will not have a significant economic effect on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). This final rule outlines the reporting requirements of Federal helium users and suppliers. In addition, this rule raises refined helium sales thresholds from those contained in the prior regulations. The prior provisions would have required more small refined helium distributors to participate in refined helium sales reporting and subsequent crude helium purchases.
Small Business Regulatory Enforcement Fairness Act
The Department has determined that this final rule is not a major rule under 5 U.S.C. 804(2), the Small Business Regulatory Enforcement Fairness Act. This final rule is not a major rule because total annual helium sales under the Act are not likely to exceed $15 million, well below the $100 million statutory threshold. Furthermore, any increases in cost will be borne by the Federal Government and in any event are mandated by the Act. Any effect on competition is the result of the Act. The final rule merely provides BLM a means to document and bill sales of refined helium to Federal agencies and their contractors. The crude helium sales required by the Act replace the BLM refined helium sales being discontinued by the same Act. This rule adds a small administrative cost to track crude and refined helium sales.
Unfunded Mandates Reform Act
This final rule does not impose an unfunded mandate on State, local, or tribal governments, or the private sector of more than $100 million per year. The final rule does not have a significant or unique effect on State, local, or tribal governments, or the private sector. A statement containing the information required by the Unfunded Mandates Reform Act (2 U.S.C. 1531 et seq.) is not required. The final rule merely provides the BLM a means to document and bill sales of crude helium to Federal helium suppliers based on their sales of refined helium to Federal agencies and their contractors. The total maximum dollar value of the crude helium sales is estimated at about $15 million annually. The crude helium sales required by the Act would replace the BLM refined helium sales being discontinued by the same Act. This rule adds a small administrative cost to track crude and refined helium sales.
Executive Order 12630
In accordance with Executive Order 12630, the final rule does not have significant takings implications. A takings implication assessment is not required. Since the final rule defines the obligations arising under future contracts, there will be no private property rights impaired as a result.
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Executive Order 12612
In accordance with Executive Order 12612, the final rule does not have sufficient federalism implications to warrant the preparation of a Federalism Assessment. This final rule does not impose any obligations on any other Government nor preempt any regulatory authority of any State.
Executive Order 12988
In accordance with Executive Order 12988, the Office of the Solicitor has determined that this final rule does not unduly burden the judicial system and meets the requirements of sections 3(a) and 3(b)(2) of the Order.
Paperwork Reduction Act
The information required by these regulations is the same as the information required by the In-Kind Crude Helium Sales Contracts. The information collections contained in the In-Kind Crude Helium Sales Contracts have been approved by OMB under Approval No. 1004-0179 which expires May 31, 2001. The In-Kind Crude Helium Sales Contracts require Federal helium suppliers and Federal agencies to which the Federal helium suppliers sell the helium to provide specific information to BLM.
National Environmental Policy Act
This final rule does not constitute a major Federal action significantly affecting the quality of the human environment. However, BLM has prepared an Environmental Assessment (EA) in accordance with section 102(2)(C) of the National Environmental Policy Act of 1969, 42 U.S.C. 4332(2)(C). BLM has placed the EA and Finding of No Significant Impact (FONSI) on file in the BLM Administrative Record at the address specified previously.
Author. The principal author of this final rule is Shirlean Beshir, Regulatory Affairs Group, Room 401LS, Bureau of Land Management, 1849 C Street, NW, Washington, DC 20240; Telephone: (202) 452-5033 (Commercial or FTS).
List of Subjects
30 CFR Part 602
Government contracts, helium, reporting and recordkeeping requirements.
43 CFR Part 3195
Government contracts, mineral royalties, oil and gas exploration, public lands-mineral resources, reporting and recordkeeping requirements, and surety bonds.
Dated: November 23, 1998. Sylvia V. Baca, Acting Assistant Secretary, Land and Minerals Management.
Accordingly, under the authority of 5 U.S.C. 301 and for the reasons stated above, BLM adopts without change as a final rule the interim rule that removed 30 CFR Chapter VI, Part 602; and added 43 CFR Chapter II, Part 3195, which was published at 63 FR 40175, on July 28, 1998.
[FR Doc. 98-31850Filed12-2-98; 8:45 am]
BILLING CODE 4310-84-P
