The Division of Helium Resources
The Division of Helium Resources negotiates and administers helium royalty contracts; researches, adjudicates, collects, and audits monies for helium extracted from Federal lands; and analyzes natural gas samples to locate and evaluate sources of helium.
- The Federal Leased Lands Team Duties
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- Administers the helium royalty payment program.
- Works to ensure that the Federal Government receives proper payment for helium extracted from Federal mineral acreage.
- Researches mineral resources data, documentation, and oil and gas industry databases to identify helium production, Federal acreage, and the parties involved in the extraction of helium contained in natural gas streams supplying process gas to private helium extraction plants.
- Adjudicates helium rights.
- Identifies and contacts lessees, producers, and operators involved in the receipt and dissemination of helium proceeds regarding legal rights and payment due the Federal Government.
- Audits revenues to ensure that the government receives proper and timely payment for extracted Federal helium.
- Federal Leased Lands Program Q&A
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1. Is all extracted helium reserved to the United States?
Yes, the helium produced from Federal acreage is reserved to the Federal Government. However, State owned, or privately owned minerals are not reserved to the United Stated. But if fee lands are included in an area that produces Federal helium, then a percentage (commensurate with Federal mineral ownership) of all the helium is deemed to be Federal.
2. Can anyone obtain rights to the helium produced from their own Federal oil and gas leasehold?
According to your Federal oil and gas lease, helium is reserved to the Federal Government. Special provisions to allow recovery of helium are allowed under the conditions outlined below.
3. What is the process to extract helium when building a natural gas processing plant?
The steps you must take are as follows:
Contact the BLM New Mexico State Office Helium Resources Division Federal Leased Lands Team. Express your plans in writing and provide a map or listing of legal description of acreage you plan to feed into the plant. You will need to own the gas rights or obtain rights to process the gas stream using agreements with the oil and gas lessees. Request rights to the Federal helium in the identified area. Negotiate an extracted Federal helium sales contract with the BLM.4. How is the percentage of extracted Federal helium production determined?
Currently, the government ownership percentage is determined by using acreage and mineral ownership. The BLM uses acreage from Federal oil and gas leases and from agreement areas. The formula is as follows:
Govt. acreage/Total acreage X Govt. mineral interest= Govt. ownership%
5. How is the Federal Helium Program Funded?
The Federal Helium Program operates using Helium royalty payments from oil and gas leases on Federal lands.
6. Where are extracted helium sales and royalties payments sent to be processed?
BLM - New Mexico State Office
Helium Resources Division
Federal Leased Lands|
Attn: Joe Peterson
jbpeters@blm.gov
801 South Fillmore, Suite 500
Amarillo, TX 79101-3545