Summary: Although helium demands are expected to rise steadily, the federal helium conservation program is at a standstill. Natural gas, the best source of helium, is rapidly depleting. Before alternatives for additional helium conservation can be considered, there is a need for Congress to legislate a new helium policy which would establish within the federal government the responsibility for conserving helium for national needs. Issues to be considered include: the amount to be stored; the most efficient ways to accomplish conservation goals, and the responsibility of the taxpayers and of natural gas consumers and producers for bearing conservation costs. Priority should be given to developing efficient methods to conserve helium from the Tip Top Gasfield in Wyoming. The Department of the Interior should continue to act as the single manager of federal helium facilities, but the responsibility for determining energy-related helium needs should be placed with the Department of Energy. Under the new helium policy act, Congress should allow federal agencies to purchase helium from non-federal sources; sell helium from the government stockpile; enact a tax incentive for helium storage; and require a report to Congress from the Secretaries of Energy and Interior. The following potential problem areas to be resolved in the implementation of a Helium Reserve Plan include: storage problems; the writeoff of helium extraction expenses for tax purposes; and the establishment of a helium extraction regulatory program.
