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Global Helium Summit 2.0 September 13, 2016
Robert Jolley, PE Bureau of Land Management
New Mexico State Office Amarillo Field Office
U.S. Federal Helium Program
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September 2016
Federal Helium Program History BLM Organization Partnerships and Contract Holders Current Operations Look Ahead
In This Presentation:
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September 2016
1923 – First helium extraction plant built by Fort Worth Helium at Hicks Field to support Navy Department 1925 – Helium Act of 1925 authorized the Bureau of Mines to construct and operate 6 helium plants 1929 – Amarillo Helium Plant built (sold in 2007) 1943 – Exell Helium Plant built (sold in 2011) Thatcher Helium Plant built (closed in 1944) Navaho Helium Plant built in (returned to tribe in 1960) Otis Helium Plant built (closed in 1944) 1957 – Keyes Helium Plant built (closed in 1991) 1960 – Major Helium Legislation – Helium Act Amendments of 1960 1996 – Helium Privatization Act 2013 – Helium Stewardship Act 2014 – First Helium Auction 2021 – Scheduled Disposal of the Federal Helium System, per HSA
Federal Helium Program History
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September 2016
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September 2016
The BLM, a sub unit of the U.S. Department of the Interior manages over 245 million surface acres and over 700 million sub-surface acres
Public Lands Managed by the Bureau of Land Management (BLM)
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51 Field Office Employees (Helium Operations)
• Downtown Amarillo Office – 801 S Fillmore • Cliffside Helium Plant – 12 miles NW of Amarillo, TX • Satanta Field Station – Satanta, KS
15 New Mexico State Office Employees (Helium Resources)
• Manages helium royalties associated with natural gas extraction on Federal lands
• Co-located in the Fillmore Office
Approved Employees 66 Current Employees 58
Vacancies 8
Amarillo Field Office Organization
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September 2016
4 Main Helium Functions Storage & Transmission Crude Helium Sales Resource Evaluation & Gas Analysis Helium Royalties from Federal Lands
BLM – Amarillo Field Office
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The refiners comprising the CRLP are Air Products, Praxair, and Linde
Partnership between the BLM and CRLP began in 2003 under a 15-year agreement
CRLP provided construction capital to construct HEU administered through Cooperative Agreements
CRLP also provides major maintenance activities during annual plant shutdowns
BLM – Manages Gas Field Production, Leases and Operates HEU
Cliffside Refiners Limited Partnership (CRLP)
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September 2016
Company Contract Number Linde Gas North America, LLC 2016-3249 Praxair, Inc. 2016-3251 Air Products, L.P. 2016-3256 Air Liquide Helium America, Inc. 2016-3284 Pioneer Natural Resources USA, Inc 2016-3286 Keyes Helium Co., LLC 2016-3287 Matheson Tri-Gas, Inc. 2016-3288 Airgas Merchant Gases 2016-3290 Global Gases America 2016-3293 Linn Energy 2016-3296 IACX 2016-3297
Current Storage Contract Holders
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September 2016
Cliffside Helium Plant
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September 2016
Helium Storage Reservoir – Bush Dome
PresenterPresentation NotesHow gas field looks below ground. Very special formation. Helium is stored in dolomite. Anhydrite hold it in place. Otherwise it would migrate to the surface and escape to atmosphere. Very few gas fields like this one. Its called the Bush Dome.
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September 2016
Delivered
Sold
Accepted
Stored
U.S. Helium Recovery
Chart1
19601960
19611961
19621962
19631963
19641964
19651965
19661966
19671967
19681968
19691969
19701970
19711971
19721972
19731973
19741974
19751975
19761976
19771977
19781978
19791979
19801980
19811981
19821982
19831983
19841984
19851985
19861986
19871987
19881988
19891989
19901990
19911991
19921992
19931993
19941994
19951995
19961996
19971997
19981998
19991999
20002000
20012001
20022002
20032003
20042004
20052005
20062006
20072007
20082008
20092009
20102010
recovered
sold
Billion Cubic Feet
0.43
0.36
0.41
0.36
0.54
0.47
0.71
0.47
3.28
0.58
4.04
0.58
4.36
0.69
4.49
0.79
4.51
0.79
4.47
0.65
4.49
0.61
4.4
0.54
4.33
0.54
4.17
0.58
3.67
0.61
1.84
0.65
0.76
0.69
1.23
0.72
1.15
0.79
1.16
0.83
1.37
0.9
1.16
0.97
0.25
1.05
0.82
1.05
0.62
1.08
0.62
1.37
0.92
1.44
1.89
2.24
2.22
2.56
2.25
2.88
3.01
3.06
3.11
3.18
3.36
3.4
3.58
3.45
4.04
3.62
3.64
3.46
3.71
3.41
4.18
3.86
4.11
4.04
4.11
4.2
3.53
4.56
3.14
4.76
3.15
4.58
3.13
4.4
3.1
4.69
2.74
4.8
2.86
4.94
2.78
4.96
2.87
4.67
2.81
4.24
2.71
4.61
Sheet1
yearrecoveredsold
19600.430.36
19610.410.36
19620.540.47
19630.710.47
19643.280.58
19654.040.58
19664.360.69
19674.490.79
19684.510.79
19694.470.65
19704.490.61
19714.40.54
19724.330.54
19734.170.58
19743.670.61
19751.840.65
19760.760.69
19771.230.72
19781.150.79
19791.160.83
19801.370.9
19811.160.97
19820.251.05
19830.821.05
19840.621.08
19850.621.37
19860.921.44
19871.892.24
19882.222.56
19892.252.88
19903.013.06
19913.113.18
19923.363.4
19933.583.45
19944.043.62
19953.643.46
19963.713.41
19974.183.86
19984.114.04
19994.114.2
20003.534.56
20013.144.76
20023.154.58
20033.134.4
20043.14.69
20052.744.8
20062.864.94
20072.784.96
20082.874.67
20092.814.24
20102.714.61
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September 2016
Helium Enrichment Unit Cliffside Field
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September 2016
New Crude Helium Compressor
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September 2016
Daily Pipeline Activity Report
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September 2016
Total Crude Helium Delivery Capability through 2021 with centralized compression 4,595 MMcf
Fiscal Year
Helium Production
(MMcf), with centralized
compression 2016 1,325 2017 1,092 2018 876 2019 716 2020 586
1,325
1,092
876 716
586
0
200
400
600
800
1000
1200
1400
2015 2016 2017 2018 2019 2020 2021
Helium Production (MMcf), with centralized compression
FY2016 and beyond production capacity is dependent field pressure
Production Capacity
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Outages
Chart1
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Days Less than 1 MMcf Production
FY2004 to Present - CHEU Outages
81
35
37
44
15
23
13
19
9
5
28
32
102
Sheet1
FY2004 to Present - CHEU Outages
FYDays Less than 1 MMcf Production
200481
200535
200637
200744
200815
200923
201013
201119
20129
20135
201428
201532
2016102
Sheet1
Days Less than 1 MMcf Production
FY2004 to Present - CHEU Outages
Sheet2
Sheet3
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September 2016
Total Program Revenue $1,876,203,782 Bcf *Projected Balance = 8,357,539,000 (8.4) Public 4,537,539,000 (4.5) Private 3,820,000,000 (3.8)
Remaining Helium Available 1,537,539,000 (1.5) for Private Sale Remaining Production 4,595,000,000 (4.6)
Disposal of Assets September 30, 2021 Cliffside Gas Field Federal Helium Pipeline Federal Helium Reserve
* Projected balance on October 1, 2016 – Numbers above are subject to change
Key Figures and Dates
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September 2016
Short-Term October 1 - Leadership Transition October 15 – 10-Day Planned Outage March 2017 - Central compressor tie-in April 2017 – Federal End Users Forum in Amarillo, TX June 2017 – 4th Auction and Sale of Crude Helium in Amarillo
Mid-Term FY2018 - Final Crude Helium Auction and Sale April 2018 – Expiration of the 15-year agreement with the CRLP Continued support to Federal end-users and delivery of privately held crude
helium Long-Term Drafting of new In Kind regulations (43 CFR 3195) September 30, 2021 – Disposal of the Federal Helium System
the Federal Helium Reserve; the Cliffside Field; the Federal Helium Pipeline; and all other infrastructure owned, leased, or managed under contract by the Secretary…
Look Ahead
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September 2016
Point of Contact for detailed questions pertaining to the Federal Helium Program:
Website: Amarillo Field Office website
www.blm.gov/nm/amarillo Amarillo Field Manager
801 S. Fillmore, Suite 500 Amarillo, TX 79105 wk: 806-356-1002 cell: 806-683-7730
Questions
http://www.blm.gov/nm/st/en/fo/Amarillo_Field_Office.html
U.S. Federal Helium ProgramIn This Presentation:Federal Helium Program HistoryInterior Organizational ChartPublic Lands Managed by the Bureau of Land Management (BLM)Amarillo Field Office OrganizationBLM – Amarillo Field OfficeCliffside Refiners Limited Partnership (CRLP)Current Storage Contract HoldersCliffside Helium PlantHelium Storage Reservoir – Bush DomeU.S. Helium RecoveryHelium Enrichment Unit Cliffside FieldNew Crude Helium CompressorDaily Pipeline Activity ReportProduction CapacityOutagesKey Figures and DatesLook AheadQuestions