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Sec.

Sec. (b) When purchaser is entitled to 1.9 Nongovernmental resale of helium.

refund of excess deposits (a) Bureau of Mines to be adbefore deliveries have been

vised before any proposed completed.

resale of more than 100 (c) Method of computing refunds

units is consummated. of excess deposits to com (b) Resale of more than 100 units mercial and medical users.

must be approved by Sec(d) Refunds to be made from

retary of the Interior. helium production fund or 1. 10 Purchasers must permit inspecleft on deposit for future

tion. use at option of purchaser. 1.11 Violations and penalties. 1. 8 Repurchase of helium by Govern- 1. 12 Forms. ment.

(a) Form of contract. (a) Helium sold may be repur (b) Form of application. chased by Government.

(c) Report on application. (b) Method of computing repur

chase price.

CROSS REFERENCE

Regulations of the Department of State governing exportation of helium: See National Defense, 32 CFR Part 2.

Section 1.1 Definitions. Unless the context requires other interpretation, the following terms, as used in this part, shall have the meaning here given:

(a) Contained helium. The actual quantity of the element, helium, contained in a mixture of that element and other gases.

(b) Purity of helium. The volume the contained helium in a mixture would occupy if not mixed with other gases, expressed in percentage of the volume of the mixture, both volumes being measured at, or reduced to, a pressure of 14.7 pounds per square inch absolute and a temperature of 70° Fahrenheit.

(c) Cubic foot of contained helium. The quantity of contained helium that would occupy a volume of 1 cubic foot at normal atmospheric pressure (14.7 pounds per square inch absolute) and 70° Fahrenheit, if it were not mixed with other gases.

(d) Unit of helium. One thousand (1,000) cubic feet of contained helium.

(e) Market helium. Helium sold or to be sold under the provision of said Act (Sec. 3 (b), 50 Stat. 886; 50 U.S.C., Sup., 164 (b)) which reads, "That helium not needed for Government use may be produced and sold upon payment in advance in quantities and under regulations approved by the President, for medical, scientific, and commercial use".

(f) Production outlet. The discharge end of the pipe or pipes through which helium of about 98 percent purity, and at a pressure of not more than 2,500 pounds per square inch gage, leaves the production equipment or storage facilities of a Government helium plant.

(g) Actual cost per unit of helium. The cost per thousand cubic feet of contained helium, computed as prescribed in § 1.4, of market helium at the production outlet.

(h) Estimated cost per unit of helium. An estimate of the actual cost per unit of market helium at the production outlet, prepared by the Bureau of Mines prior to the time when the actual cost per unit of helium can be determined.

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(i) Service charges. Charges for services rendered, materials furnished, or expenses incurred by the Bureau of Mines which are not directly attributable to activities required for delivering helium at the production outlet; these may include charges for unloading, handling, repairing, loading, and hauling, containers supplied by purchasers of market helium, use of containers if supplied by the said Bureau, cribbing freight cars, telegrams, and other expenses that are attributable directly to an individual contract, delivery, or shipment rather than to the common cost of producing helium and delivering it at the production outlet.

(j) Deposit. A sum of money to be supplied by a purchaser of market helium prior to the delivery of the helium, and to be deposited in the special helium-production fund authorized by section 3 (c) of the said Act (50 Stat. 887; 50 U.S.C., Sup., 164 (c)).

(k) Delivery schedule. A schedule prepared by the Bureau of Mines showing the date or dates on which it expects to deliver helium under a contract. Such a delivery schedule may be modified by the Bureau of Mines as circumstances require and is not to be construed as a guarantee that delivery will be made as scheduled.** [As amended Mar. 10, 1938, 3 F.R. 647]

*$$ 1.1 to 1.12, inclusive, issued under the authority contained in sec. 3 (b), 50 Stat. 886; 50 U.S.C., Sup., 164 (b).

tin $$ 1.1 to 1.10, inclusive, the numbers to the right of the decimal correspond with the respective section numbers in the Regulations governing the production and sale of helium for medical, scientific, and commercial use, approved by the President, Jan. 14, 1938, 3 F.R. 463. Amendments are noted in brackets following sections affected.

ABBREVIATIONS: The following abbreviations are used in this chapter: E.O. Executive Order. Regs. Regulations governing the production and sale of helium for medical,

scientific, and commercial use, approved by the President, Jan. 14,

1938. 1.2 General-(a) Quantity of market helium available. Helium not needed for Government use, and in quantities not exceeding those which the Bureau of Mines determines can be produced with facilities under its jurisdiction in accordance with good engineering practice, may be produced and sold under the regulations in this part as market helium, but all such sales shall be subject to the Government's right of repurchase under the provisions of $ 1.8. Requisitions to meet needs of the Army and Navy and other branches of the Federal service shall always be paramount to applications for and sales of market helium.

(b) Sale not mandatory. Nothing in the regulations in this part shall be construed to make mandatory the production and sale of market helium by the Bureau of Mines. The Director of the Bureau of Mines may refuse to accept, and the Secretary of the Interior may refuse to approve, any application for purchase of market helium when they consider its acceptance or approval to be contrary to the intent of the Act, disadvantageous to the national defense, or inimical to the best interests of the Government.

(c) Sale for medical use to be given preference. Other things being equal, in considering applications, contracting for sale, scheduling deliveries, and making shipments of market helium, in so far as

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practicable helium for medical use shall be given preference over helium for other nongovernmental uses, and the Secretary of the Interior or the Director of the Bureau of Mines, in their discretion, may order interruption of deliveries of helium under any contract when, in his judgment deliveries under another contract merit preference.

(d) Delivery points. Unless otherwise agreed to by the Bureau of Mines in writing, market helium to be sold under the regulations in this part is for delivery to purchasers at a Government-owned helium plant to be designated by the Bureau of Mines. All sales of helium under any contract shall be complete upon delivery by the Government at the production outlet, or at such other point as may be agreed upon by the Bureau of Mines in writing, and the Bureau of Mines shall thereafter, with respect to helium so delivered, be acting for the purchaser as an agent merely.

(e) Provision for cancelation of contracts. Contracts for market helium shall not be subject to cancelation or transfer by the purchaser, in whole or in part, unless authorized by an amendment or cancelation of such contract executed by the Director of the Bureau of Mines, and if such amendment or cancelation is with respect to more than 100 units of helium, the same shall not be effective unless approved by the Secretary of the Interior.

(f) Shipping containers furnished by purchaser. Shipping containers for market helium sold hereunder shall be supplied by the purchaser of such helium, unless otherwise agreed upon by the Bureau of Mines in writing.

(g) Shipping containers to conform to Interstate Commerce regulations. Containers supplied by purchasers of market helium and filled by the Bureau of Mines shall be suitable for the intended use and shall be acceptable as containers for shipment by a common carrier in interstate commerce whether or not their shipment on such carrier is contemplated. The Bureau of Mines will not knowingly fill any container which cannot be shipped or transported, legally and safely, to its ultimate destination.

CROSS REFERENCE: For shipping container specifications of the Interstate Commerce Commission, see 49 CFR Part 72.

(h) Containers and valves must be acceptable to Bureau. In the interest of safety and efficiency in plant operation, containers and valves supplied by purchasers to receive helium to be delivered under pressure by the Bureau of Mines shall be of types and in condition acceptable to said Bureau. The Bureau's supervising engineer or other official in charge at any helium plant is authorized to refuse to fill any container when he considers its filling to be unsafe or inexpedient.

(i) Delivery schedules subject to purchaser furnishing suitable containers. In case a purchaser fails to have suitable containers at the Government helium plant in adequate time to receive any scheduled delivery of helium, the Bureau of Mines, at its election, may schedule that delivery for any later time suited to its operating program or eliminate the quantity of helium in that scheduled delivery from the amount of helium remaining to be delivered under the pertaining contract.

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(j) Purity and quantity to be determined by Bureau. Determinations of purity and quantity shall be by methods prescribed by or acceptable to the Bureau of Mines. The delivery of a quantity of helium within plus or minus 2 percent of that contracted for shall constitute a fulfillment of the contract on the Government's part, but payment shall be on the basis of the actual quantity of contained helium delivered as determined by the said Bureau's accepted methods of measurement.

(k) Losses, variations, and delays not to be charged to Government. The Government shall be held blameless for delays in delivery of helium ordered, loss of containers, faulty or leaky containers, loss of helium in transit from whatever cause, variations in purity, or the character of any impurity which may be with the helium. The provisions of this paragraph shall apply whether containers are furnished by the purchaser or by the Government.

(1) Exportation not authorized. Nothing in the regulations in this part or in any sale or contract for the sale of helium or in any part of any such contract, regardless of the intended use or disposition of helium by any purchaser, shall be construed as authorizing the exportation of any helium within the meaning of the Act (Sec. 4, 50 Stat. 887; 50 U.S.C., Sup., 165).

No purchaser shall use or permit the use, directly or indirectly, of any helium purchased from the Bureau of Mines, for military purposes or for the inflation of any airship which shall operate between two foreign countries notwithstanding such airship may also touch at some point in the United States.

(m) Amendment. The regulations in this part are subject to amendment, with approval of the President, at any time.** [As amended Mar. 10, 1938, 3 F.R. 647]

1.3 Application and acceptance-(a) Application form. Persons, firms, corporations, associations, or institutions who desire to purchase market helium under the regulations in this part may make application therefor on an application form similar to that included in the form of contract shown in § 1.12 (b). Copies of said application form will be furnished by the Bureau of Mines on request.

(b) Information required of applicants. The applicant shall supply to the Bureau of Mines, under oath or affirmation, on said form and supplemental papers, full information concerning the quantity of helium desired; the desired date of delivery; the contemplated use or disposition of the helium; whether the helium is to be exported and, if so, the export license procured from the Secretary of State or plans for procuring such license; the disposition of any helium previously purchased; anticipated future requirements, if any; types, condition, and ownership of containers and valves to be supplied; proposed method of shipment; destination of the helium; and any other data that may be needed by officials of the Department of the Interior and the Bureau of Mines to enable them to judge whether the need for the helium is bona fide, and whether the helium desired can be supplied in accordance with the intent of the said Act (50 Stat. 885; 50 U.S.C., Sup., Chapter 10) and the regulations in this part, and under conditions of safe and efficient plant and gas

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**For statutory and source citations, see note to s 1.1.

field operation. Also, if the helium is to be used for airship inflation, the applicant shall identify and describe the craft for which the helium is intended, supply full information regarding the proposed use of such craft (including full information concerning the proposed schedule of operations if flights are to be made outside the United States), and provide assurance that the said helium will be used for inflation of only such airships as operate in or between the United States and its Territories and possessions, or between the United States or its Territories and possessions and foreign countries, and that said helium will not be used for inflation of any airship operating between two foreign countries notwithstanding such airship may also touch at some point in the United States.

(c) Bureau to determine practicability of supplying requirements of applicant. Upon receipt of a properly executed application and the required information pertaining thereto, the Bureau of Mines shall determine the practicability of supplying the requirements under the conditions stated. If the said Bureau considers it impracticable or inadvisable to supply the helium as requested it shall so notify the applicant; otherwise, it shall schedule the helium for delivery (contingent upon final execution of a contract pursuant to the application), and supply the applicant with estimates of the cost per unit of helium, service charges applicable to the contemplated deliveries of helium, delivery schedule, and amount of the deposit or deposits required.

(d) Applicant to execute contract and make initial deposit. If the applicant desires to purchase the helium under the terms of the regulations in this part and considering the estimates and statements of conditions supplied by the said Bureau, he shall execute a contract covering purchase of the helium applied for. The form of such contracts is indicated in § 1.12 (a). Said contract shall be forwarded to the Bureau of Mines, accompanied by an initial deposit in the form of a certified check for the amount required payable to the Treasurer of the United States, within 10 days from receipt of estimates of the cost per unit of helium, service charges, and delivery schedule, and notice of the initial deposit required.

Every contract for the purchase of helium which is to be used for airship inflation and exported within the meaning of the Act shall provide for the payment by the purchaser of liquidated damages, in an amount to be fixed by the Secretary of the Interior with the concurrence of the Secretaries of State, War, and the Navy, in the event of failure by the purchaser faithfully to comply with the Act and the regulations in this part; and shall be accompanied by a domestic corporate surety bond, satisfactory to the Secretary of the Interior, in like amount conditioned upon faithful compliance by the purchaser with the Act and the regulations in this part. Such bond shall continue in force so long as any of the helium delivered under such contract shall remain in captivity, or for a period of 3 years, whichever shall be the longer.

(e) Delivery schedule dependent on execution of bond, contract, and initial deposit. Failure to execute and forward the said contract or to make the required initial deposit or to furnish a bond

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