The same regulatory flexibility enjoyed by oil and gas leases on federal lands would be extended to helium leases under bicameral legislation introduced by U.S. Sen. Orrin Hatch (R-UT) and U.S. Rep. Paul Cook (R-CA) on Tuesday.
Currently, the Bureau of Land Management (BLM) has the ability to extend oil and gas leases based on changing conditions on the ground. Under the Mineral Leasing Act, however, that regulatory flexibility doesn’t apply to helium, a byproduct of natural gas extraction.
The Helium Extraction Act, S. 1572 and H.R. 3279, would amend the Mineral Leasing Act so that helium leases on federal lands are treated the same as oil and gas leases.
“Due to limited production and supply, helium prices have risen by as much as 250 percent in the last decade,” Hatch said. “This sharp price increase significantly impacts a wide array of important industries — including space, defense, medical and many others — that depend on reliable supplies of helium. Our nation’s federal lands, particularly in Utah, offer abundant supplies of recoverable helium, and this legislation would help promote its responsible development.”
The United States is the world’s largest producer of helium. Qatar, Algeria and Russia are the world’s next largest suppliers.
“The looming helium crisis must be dealt with now,” Cook said. “Without this bill, we could become dangerously dependent on unstable foreign countries for our supply of helium. This bill encourages the development of American sources of helium and will boost both our national security and economy.”