Washington, D.C.—Today, Senator Orrin Hatch (R-Utah), the senior Republican in the United States Senate, introduced the Helium Extraction Act to bolster helium production on federal lands. The legislation increases regulatory flexibility by allowing the Bureau of Land Management (BLM) to treat helium leases similar to oil and gas leases. Hatch’s proposal will help ensure a long-term domestic supply of helium, which has been jeopardized by the impending closure of the Federal Helium Reserve in 2021.

“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.”

Background:

Currently, the BLM can extend oil and gas leases for varying on-the-ground conditions, which is needed if production from a site is better or worse than anticipated. The oil and gas leasing process is a proven regulatory structure that promotes responsible development. Unfortunately, under the Mineral Leasing Act, that same regulatory flexibility is not afforded to helium leases, which discourages production of helium on federal lands. The Helium Extraction Act, S. 1572, would make an amendment to the Mineral Leasing Act to direct the BLM to treat helium leases in the same manner as oil and gas leases.