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In-Kind Helium Memorandum Of Understanding Template - Us Department Of Interior, Bureau Of Land Management, Amarillo Field Office

Revision #

Date Revised

2/17/2015

BLM MOU NM0060-FY

(to be completed by BLM)

Agency Number

MEMORANDUM OF UNDERSTANDING

Between

US Department of Interior, Bureau of Land Management, Amarillo Field Office

and

Concerning Allocating In-Kind Helium

Purpose: This Memorandum of Understanding (MOU) provides procedures and guidance for allocating

In-Kind helium for new helium requirements to

and Federal Helium

Supplier(s) (FHS).

II.

Background & Objective: Currently, the regulations stipulate how the suppliers and Federal Agencies

report transactions and which agencies are required to purchase major helium requirements from FHS.

Article 7.1 (c) of the Helium Supply Contract and 3195.36 of the regulations provide that the FHS shall

give priority to U.S. Government helium requirements over non-government requirements.

During times of adequate supply, the Federal Agencies have had no problem receiving their requirements

and contracting for additional requirements when necessary. However, during an extended shortage

period, the FHS are allocating supplies to their commercial customers. To date, our information suggests

no Federal Agency needing a major requirement has been allocated; however, some agencies are

experiencing difficulties receiving offers for solicitations for new helium customer requirements.

The intent of the MOU is to encourage FHS to offer on new helium contracts solicited by

. FHS have not bid on solicitations for new helium contracts because they are

already allocating their other customers and do not receive their allocation of In-kind helium from the

BLM until about six months after delivery.

III.

Authority:

A. Public Law 113-40 – Helium Stewardship Act of 2013, Section 6 (a)(2)

B. Public Law 104-273 – Helium Privatization Act of 1996, Section 6 (a)

C. 43 CFR subparts 3195.02 – 27.

IV.

Procedures:

A. For any "new" Federal helium needs to be solicited by

, the

BLM agrees to allocate (not transfer or sell) In-Kind helium to the FHS that has been awarded the

competitive contract by

, in the month the helium is required to

be delivered.

B. If the FHS is a refiner on the Crude Helium Pipeline (CHPL), the BLM will allocate the In-Kind

helium directly to the refiner. If the FHS is not a refiner on the CHPL, the BLM will allocate the

helium to a refiner upon receipt of a tolling agreement indicating the refiner is tolling helium for

the non-refiner FHS.

In-Kind Helium Memorandum Of Understanding Template - Us Department Of Interior, Bureau Of Land Management, Amarillo Field Office

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