[Federal Register Volume 63, Number 232 (Thursday, December 3, 1998)]
[Rules and Regulations]
[Pages 66760-66762]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-31850]
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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.
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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]]
I. 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:
Establishing procedures for the helium program;
Defining the obligations of Federal helium suppliers and
users; and
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.
II. Discussion of Final Rule and Response to Comments
A. Legal Basis for the Final Rule
The Act requires that:
BLM discontinue producing, marketing, and selling refined
helium.
Persons who supply a major helium requirement to Federal
agencies contract with BLM to purchase an equivalent amount of crude
helium from BLM.
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).
B. General and Specific Comments
The private industry supplier raised the following concerns:
The interim rule does not address pre-existing contracts
executed under Bureau of Mines regulations;
Whether the pre-existing contracts should be terminated or
rebid under the new regulations;
Whether the pre-existing contracts should be allowed to
run their course; and
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.
III. 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.
[[Page 66762]]
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. 98-31850 Filed 12-2-98; 8:45 am]
BILLING CODE 4310-84-P
