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(b) Method of computing repurchase price. The price to be paid by the Government per unit of helium, for delivery at the said place of use or storage, for helium of 98 percent purity or better, shall be,

(1) The actual cost per unit of helium for the year in which said helium was purchased from the Bureau of Mines, less one half of 1 percent of said cost for each month or fraction thereof since the said helium was shipped from the Government plant, or

(2) The actual cost per unit of helium for market helium purchased from the Bureau of Mines during the fiscal year immediately preceding the repurchase, whichever of said costs is the higher: Provided, however, That the said unit price of repurchase shall not be more than 20 percent greater or more than 20 percent less than the actual cost per unit of helium for the fiscal year in which the said helium was purchased from the Bureau of Mines.

For repurchased helium of less than 98 percent purity the unit price to be paid by the Government shall be the price as above determined less 1 percent thereof for each one percent that the purity is below 98 percent.

A premium of 50 cents per unit of helium, above the prices as above determined, shall be paid by the Government for helium which is compressed into cylinders or tank cars at 2000 pounds per square inch or more, by the seller at the request of the Government; and such additional premium as the Secretary of the Interior may deem to be just compensation for savings to the Government in transportation charges may be paid in instances when the helium being repurchased is advantageously situated with respect to the contemplated point of Governmental use.

If the helium being repurchased is a mixture of helium from different shipments of market helium sold by the Bureau of Mines, the helium mixture on hand shall be assumed, for purposes of computing the repurchase price, to represent the latest shipments, or fractions thereof, that were incorporated into that mixture, considering the shipments in order of recentness until all helium on hand is accounted for.**

1.9 Nongovernmental resale of helium-(a) Bureau of Mines to be advised before any proposed resale of more than 100 units is consummated. Before consummation of any resale of 100 units or more of market helium that has been sold by the Government under the regulations in this part, whether the seller procured the said helium from the Bureau of Mines or from some other party, full information regarding such proposed resale shall be supplied by the reseller to the Bureau of Mines, in order that the Government, if it so desires, may exercise its right to repurchase said helium under the provisions of g 1.8.

(b) Resale of more than 100 units must be approved by Secretary of the Interior. Whenever 100 units or more of market helium that has been purchased from the Bureau of Mines under the regulations in this part is resold, it shall be sold only with the approval of the Secretary of the Interior, and such approval may be granted only if the party to whom the helium is to be resold informs the said Secre

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

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tary fully concerning the proposed use and disposition of said helium and enters into a written agreement with the United States of America, as represented by the Secretary of the Interior, that such party will abide by all applicable terms and requirements of the Act (50 Stat. 885; 50 U.S.C., Sup., Chapter 10) and the regulations in this part.**

1.10 Purchasers must permit inspection. Any person, firm, corporation, association, institution, or political authority who shall use or make available for any use, hélium purchased from the Bureau of Mines and exported within the meaning of the Act (Sec. 4, 50 Stat. 887; 50 U.S.C., Sup., 165), shall permit and make possible the examination and inspection by a representative of the United States, of such helium and its use, and where the helium is used for the inflation of any airship, examination and inspection of such airship and its contents, of reserve supplies of helium, and of the processes of inflation both'in the United States and in any foreign country, all at such times and in such manner as such representative of the United States shall require.** [As amended Mar. 10, 1938, 3 F.R. 649]

1.11 Violations and penalties. If the Secretary of the Interior shall at any time find that any person, firm, corporation, association, institution, or political authority has violated any of the provisions of the Act or of the regulations in this part, or has used or permitted the use of helium purchased from the Bureau of Mines in a manner contrary to the intent of the Act or of the regulations in this part, the said Secretary may deny such person, firm, corporation, association, institution, or political authority any or all privileges to purchase helium from the Bureau of Mines, and he may cancel all future deliveries and forfeit all deposits under any or all existing contracts with such person, firm, corporation, association, institution, or political authority. Likewise, in the event of such finding by the Secretary, the liquidated damages provided for in the contract with any such person, firm, corporation, association, institution, or political authority shall become due and payable and the purchaser and its sureties on the bond shall become liable therefor.* [Sec. 11, Regs., Jan. 14, 1938, as added Mar. 10, 1938, 3 F.R. 649]

1.12 Forms—(a) Form of contract. A contract covering a sale of helium, including the application to be submitted by the purchaser and report thereon to be prepared by the Bureau of Mines prior to the execution of the contract, will be in form and substance substantially as follows, but alterations in said form that are not inconsistent with the Act or the foregoing provisions of this part may be made by the Bureau of Mines, with approval of the Secretary of the Interior, and forms so altered may be inserted in this section :

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

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CONTRACT FOR PURCHASE OF HELIUM

FROM
UNITED STATES DEPARTMENT OF THE INTERIOR

BUREAU OF MINES

This space is for recording by the Bureau of Mines and is not a part of the contract. Application No.

Date
Contract received from purchaser
Contract forwarded to Washington
Contract No.

Date

This HELIUM PURCHASE CONTRACT, entered into this day of

19_-, by and between THE UNITED STATES OF AMERICA, acting through the DEPARTMENT OF THE INTERIOR, BUREAU OF MINES (hereinafter called the Bureau) and

dealing as

(Specify

whether individual, partnership or corporation, and give requisite identifying information) (hereinafter called the purchaser),

WITNESSETH :
That, whereas, the purchaser desires to purchase

units of helium (---

cu. ft. of contained helium) from the Bureau pursuant to the Act of Congress entitled “An Act authorizing the conservation, production, exploitation, and sale of helium gas, a mineral resource pertaining to the national defense and to the development of commercial aeronautics, authorizing the acquisition, by purchase or otherwise, by the United States of properties for the production of helium gas, and for other purposes”, approved September 1, 1937 (hereinafter called the Act) and under regulations governing production and sale of helium by the Bureau, approved by the President on January 14, 1938, and amended with the President's approval on March 10, 1938, or as thereafter modified with approval of the President (hereinafter called the regulations), which Act and regulations are hereby made a part of this contract by reference, and

Whereas, the purchaser has filed an application dated with the Bureau for said helium, stating in said application his need for and intended use of said helium and agreeing therein to abide by the terms of said Act and regulations in the purchase, use and disposition of such helium; a copy of which application is attached hereto and made a part hereof, and

Whereas, the Bureau has determined that the said helium can be produced with facilities under its jurisdiction in accordance with good engineering practice and has prepared a report on said application, stating the amount of the initial deposit required of the purchaser and giving estimates of the delivery schedule and total deposits required; which report is attached hereto and made a part hereof, with the understanding, however, that the data of said report are estimates only, and

Whereas, the purchaser has submitted to the Bureau with this contract a certified check in the amount of $-

as the initial deposit called for by said report;

Whereas, the purchaser has also submitted to the Bureau a domestic corporate surety bond, satisfactory to the Secretary of the Interior, in the amount of $ ---, conditioned upon faithful compliance by the purchaser with the Act and regulations, which bond is to continue in force so long as any of the

1

'In contracts for purchase of helium that is to be used for airship inflation and exported within the meaning of the Act, strike out the semicolon and substitute the word "and".

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helium delivered under this contract shall remain in captivity, or for a period of 3 years, whichever shall be the longer; 2

Now, Therefore, for and in consideration of the premises and the mutual covenants and agreements hereinafter set forth, the parties hereto mutually covenant and agree as follows:

ARTICLE 1. The Bureau agrees : (a) To sell to the purchaser

units of helium (-----cubic feet of contained helium).

(b) To deliver said helium to the purchaser in accordance with the terms of the regulations and as nearly in accord with estimated shipping schedules as the exigencies of the Government service, need for helium by the Government, and conditions of operation will permit, and

(c) After the computation and approval of the actual cost and service charges for a fiscal year for helium delivered hereunder, and for the delivery of such helium, to refund to the purchaser any amount that may be due under the terms of said regulations.

ARTICLE 2. The purchaser agrees : (a) To buy from the Bureau

units of helium (----cubic feet of contained helium).

(b) To take such steps as may be necessary on the purchaser's part to enable the Bureau to make deliveries as scheduled,

(c) To pay for said helium and its delivery, in advance of delivery, by depositing such amounts as may be called for under the terms of said regulations, and

(d) To comply with all applicable provisions of the Act and regulations.

ARTICLE 3. In the event of failure by the purchaser faithfully to comply with the Act and the regulations, the actual damage occasioned thereby will be impossible of ascertainment, and in lieu thereof the purchaser shall pay to the Bureau as fixed, agreed and liquidated damages the sum of $

and the purchaser and its sureties shall be liable therefor.:

ARTICLE 4. No Member of or Delegate to Congress or Resident Commissioner shall be admitted to any share or part of this contract or to any benefit that may arise herefrom, but this provision shall not be construed to extend to this contract if made with a corporation for its general benefit.*

ARTICLE 5. If this contract is for the purchase of more than 100 units of helium (100,000 cubic feet of contained helium) it shall be subject to the written approval of the Secretary of the Interior and shall not be binding until so approved.

In Witness Whereof, the parties hereto have caused these presents to be duly executed in triplicate by their proper officers the day and year first above written.

(Purchaser)

(Address)

THE UNITED STATES OF AMERICA,

(Director, Bureau of Mines) Approved :

(Secretary of the Interior) I,

certify that I am the secretary of the corporation named as the purchaser herein; that

who signed this contract on behalf of the purchaser, was then

of said corporation; that

This provision shall be applicable only to contracts for purchase of helium that is to be used for airship inflation and exported within the meaning of the Act.

'Article 3 is to be included only in contracts for purchase of helium that is to be used for airship inflation and exported within the meaning of the Act.

* In contracts for purchase of helium that is not to be used for airship inflation and exported within the meaning of the Act, Articles 4 and 5 become Articles 3 and 4 respectively.

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said contract was duly signed for and in behalf of said corporation by authority of its governing body, and is within the scope of its corporate powers.

[CORPORATE SEAL) (b) Form of application.

APPLICATION TO PURCHASE HELIUM

FROM
UNITED STATES DEPARTMENT OF THE INTERIOR

BUREAU OF MINES

This space is for recording by the Bureau of Mines and is not a part of the application. Application No.

Date
Received
Rejected and applicant notified
Report prepared and contract sent applicant

Name of Applicant

(Use name under which contract is to be made)

Address

Date
Give full information as indicated below, attaching additional sheet if

necessary for completing answers (1) Quantity of helium desired.

(Cu. ft. of contained helium at

14.7 lb. per sq. in. and 70° F.) (2) Delivery date desired. (3) (a) Use for which helium is desired.

(b) Place of use. (4) Contemplated user of helium.

(5) (a) Is helium for resale?

(b) Expected resale price. (6) (a) Is helium to be exported ? (b) If helium is to be exported, give number and date of export license

issued by Secretary of State or sufficient information to identify the allotment under which application for license to export will be made to Secretary of State, or, if license or allotment has not been obtained, the applicant's plans for obtaining an export license.

(7) Name, description and proposed use of aircraft for which helium is in

tended.

(8) Proposed schedule of any flights to be made outside United States with

such aircraft.

(9) Quantities of helium previously purchased from Bureau of Mines.

(10) Disposition of such helium, and quantities still on hand.

(11) Anticipated future helium requirements.

Shipping Containers (12) Containers to be furnished by applicant.

(b) Type.

(a) Owner. (13) Do containers meet I.C.C. specifications?

(a) Number.
(c) Age.

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