U.S. General Services Administration
GSA Announces Sale of Federal Helium System Assets - Updated
Refer to the project’s website for updates and information.
TEXAS - Today, the General Services Administration (GSA) announced the upcoming sale of the Federal Helium System assets, currently managed by the Bureau of Land Management (BLM), as directed by Congress under the Helium Stewardship Act of 2013. In accordance with that law, BLM is required to sunset its management of the system and report any excess helium and helium assets to GSA to follow the statutory disposal process.
The sale process, planned to start July 12, 2023, will include the Cliffside Gas Plant, Federally owned Plant Equipment, Mineral Rights, Helium Storage Reservoir, Natural Gas Wells, and Federal Helium Pipeline. GSA expects the sales process will take between 8 and 9 months, and will engage with industry and stakeholders throughout to ensure an orderly and efficient transfer of assets.
The Cliffside Gas Plant, located at 13301 Brickplant Road, Amarillo, TX, is situated on two leased parcels of land totaling 8.108 acres near Amarillo, Texas. The property encompasses a range of primary and support buildings, including offices, warehouses, maintenance facilities, laboratories, and storage areas.
The Federal Helium System is also comprised of plant equipment, including a booster compressor, natural gas chiller skid, metering equipment, spare parts, emergency generators, storage tanks, and other machinery critical to the helium enrichment process. Some of the plant equipment is privately owned, with the BLM maintaining operational and minor maintenance responsibilities through a lease agreement.
In addition to the facilities, the sale encompasses Mineral Rights acquired by the Federal Government from 1930 to 1942. These subsurface ownership interests cover approximately 38,000 acres of gas and approximately 60 acres of oil resources, providing an opportunity for future exploration and development.
The Helium Storage Reservoir, known as the Bush Dome, is a natural geologic formation located approximately 3,000 feet below the surface. The reservoir has historically held up to 44 billion cubic feet (Bcf) of helium, which includes both federally owned stored helium and native helium commingled with natural gas. At the time of disposal, it is estimated that the storage reservoir will contain approximately 4 plus Bcf of proven and prospective federally owned helium (native and reserve), approximately 2 Bcf of privately owned helium, along with approximately 60 Bcf of federally owned natural gas (according to BLM Helium Operations Statistical Report Issued June 2022).
The Federal Helium System further encompasses a network of 23 natural gas wells some of which serve as high-pressure injection wells. These wells have been instrumental in supplying natural gas to the system, and they offer potential opportunities for ongoing production and utilization.
Crucial to the system’s operation is the Federal Helium Pipeline, which spans approximately 423.24 miles, connecting the Cliffside Field to privately owned helium refineries across Northern Texas, the Oklahoma panhandle, and Southern Kansas. The pipeline facilitates the production, transmission, storage, and delivery of crude helium to refineries. The Federal Helium Pipeline works in conjunction with privately owned refineries and BLM and typically delivers more than 2 million cubic feet (MMcf) of crude helium per day to the refiners. It has been a reliable conduit, delivering millions of cubic feet of crude helium daily.
Detailed information about the sale, including bidding procedures and asset specifications, can be found on the GSA website. Interested parties are invited to review the comprehensive offering and submit their bids within the specified timeline.
For inquiries regarding the upcoming sale, contact William.rollings@gsa.gov. For inquiries regarding BLM, contact Mjanderson@blm.gov. For other questions, contact, R7media.inquires@gsa.gov.
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About GSA: GSA provides centralized procurement and shared services for the federal government, managing a nationwide real estate portfolio of nearly 370 million rentable square feet, overseeing approximately $75 billion in annual contracts, and delivering technology services that serve millions of people across dozens of federal agencies. GSA’s mission is to deliver the best customer experience and value in real estate, acquisition, and technology services to the government and the American people. For more information, visit GSA.gov and follow us at @USGSA.