FIGURE 2.-Comparison of helium plant capacities with estimated helium demands; and the recoverable helium available in natural gas containing 0.4 percent or more helium by volume.

Amendment requested: Page 17, lines 21 and 22, strike out "$10,905,000" and insert in lieu thereof "$11,280,000", the estimate, or an increase of $375,000 in the appropriation.

HOUSE REPORT

"The committee recommends the supplemental request for an appropriation of $10,905,000, which together with carryover funds available of $1,120,000, will provide a total of $12,025,000 for the construction of a new helium production plant with a capacity of about 290 million cubic feet a year. The Bureau of Mines is the sole producer of helium and the proposed additional production capacity is needed to meet the increasing requirements of the Department of Defense, Atomic Energy Commission, and the defense industry. The committee expects that the new plant will be operated and maintained on a self-supporting basis through helium sales as is the case with existing facilities.

"The committee has disallowed the budget request of $375,000 for the construction of an administrative, engineering, and service building for the helium activity at Amarillo, Tex. As no emergency is involved in this requirement, the committee sees no justification for requesting a special supplemental appropriation for this purpose and has deferred action for appropriate consideration in connection with the regular annual bill for fiscal year 1960."

JUSTIFICATION

The amendment restores the reduction of $375,000 made by the House in the budget estimate for this appropriation. This amount is for the following activity:

A breakdown of the restoration request by objects of expenditure follows: 10 Lands and structures, $375,000.-Restoration of $375,000 is requested for the construction, at Amarillo, Tex., of an administrative, engineering, and service building for the entire helium activity.

In the interest of economy and efficiency, the engineering and business activities for helium operations are and have been for many years headquartered at the Amarillo helium plant. This includes the entire engineering force, the central accounting personnel who handle the accounts for all four plants totaling over $5 million annually, purchases, property accounting, shipping and receiving details, business management activity, and safety supervision. The other 3 helium plants have an office force of 1 clerk and 1 typist each.

There are about 97 employees housed in an old office building, constructed in 1928, and 5 other improvised offices on the Amarillo plant grounds, and in one building in downtown Amarillo, some of which lack necessary sanitary facilities. These quarters are barely adequate for the conduct of necessary business at present. The operation of the new plant to be erected at Keyes, Okla., will add an additional workload of 30 percent to the present engineering and administrative forces while nearly doubling the capacity of all existing plants. Present quarters will be totally inadequate to handle this volume of work in an efficient and businesslike manner.

In the interest of maintaining our present integrated engineering and business activities in Amarillo, and in view of the additional workload the new plant will cause, we feel that the construction of the proposed administrative, engineering. and service building is immediately necessary for the efficient and successful expansion of the helium production program.

A suitable site, for the proposed building, is available on the Amarillo plant grounds.

BUILDING AT AMARILLO

Chairman HAYDEN. Please tell the committee why you need this building at Amarillo.

Mr. ANKENY. Chairman Hayden, the increase in this new plant will add about 30 percent to the number of personnel engaged in this particular work. We would like to have these people all housed together for the sake of efficiency and operation. I have with me this morning Mr. Seibel, and he can answer this more fully.

STATEMENT OF C. W. SEIBEL, ASSISTANT DIRECTOR-HELIUM

GENERAL STATEMENT

Mr. SEIBEL. This has been growing for sometime. We do all of our work from a unitized or central office or location. We have four plants. Each one of the plants, except the Amarillo plant has 1 stenographer and 1 clerk, although they require an expenditure of about a million dollars a piece annually. In the interest of efficiency and economy we are doing all of our engineering, administrative, and clerical work in one place, Amarillo, Tex.

A year ago the General Services Administration made a survey of our entire operation and, as a result of that, they sent out invitations to bid on office space, realizing that we were overcrowded and needed to consolidate our work for efficiency.

The bids were not responsive but the lesser one involved a rental of $275,000 in a 5-year period. From an efficiency standpoint, we did not think that that was good business. This new plant that we are asking for, will practically double the amount of helium that we are now producing.

We will add to our overworked office and engineering group about 30 percent. We might have asked for that office building in Oklahoma where the new plant will be located but that is not the place for an office building.

We have people already located and centralized in Amarillo and we feel that is where we can save the Government the most money. Without additional space, we will be greatly handicapped in keeping accurate tabs on all of the freight movements and businesses that we operate.

DEMAND FOR HELIUM

Chairman HAYDEN. What is the demand for helium now?

Mr. SEIBEL. The demand is about 20 percent more than we can possibly produce. This last fiscal year which ended on June 30, we produced 340 million cubic feet of helium, and we are short just about 20 percent. That is going to become more acute and the shortage will increase until we have this proposed plant in operation—that is, the Keyes plant.

Chairman HAYDEN. What is it used for?

Mr. SEIBEL. There are three major Federal users. The atomic energy, guided missiles, and the Navy groups. Those organizations use together, 75 percent of all the helium that is produced.

They are using it of course in various ways in connection with their work.

Chairman HAYDEN. If you have that demand and the plant is justified, is it your contention that this building is necessary to carry out the operations?

Mr. SEIBEL. We feel that that is absolutely necessary and is a part which should really be included in the overall helium operation.

RESEARCH FACILITY AT BARTLESVILLE, OKLA.

Chairman HAYDEN. Senators Kerr and Monroney have requested the committee to provide funds for the construction of a new research facility at the petroleum experiment station at Bartlesville, Okla. Their letter to me will be included in the record.

(The letter referred to follows:)

Hon. CARL HAYDEN,

Chairman, Appropriations Committee,

United States Senate.

UNITED STATES SENATE, Washington, D. C., May 6, 1958.

DEAR CARL: You are aware of the intense need for the construction of facilities at Bartlesville, Okla., for the Bureau of Mines.

The Department of the Interior has given the need of a building at Bartlesville the highest priority for the past 7 years, but has been unable to secure its approval by the Bureau of the Budget.

Presently, it is our opinion that the effectiveness of the Bureau of Mines research program in conservation and development of methods of production of oil are being hampered because of lack of appropriate facilities.

We, therefore, urge that funds be made available for this fiscal year in order that a building may be constructed at Bartlesville on lands already owned by the Bureau of Mines for this purpose. Your cooperation in this regard will be

a great service to the entire oil-producing area of the United States and particularly to the State of Oklahoma.

We would greatly appreciate an opportunity to appear before your committee on this matter. We would also suggest that the Bureau of Mines be questioned about its need for the facility.

With kindest regards, we are,
Sincerely yours,

NEED FOR BUILDING

ROBERT S. KERR.
A. S. MIKE MONRONEY.

Chairman HAYDEN. On May 13, I wrote to Secretary Seaton, advising him that the committee would consider this matter during its hearings on the supplemental appropriation bill. Now, will you tell the committee of the need for an additional facility at Bartlesville?

Mr. ANKENY. The Bureau of Mines has a long-range building program and for some time now the Bartlesville requirement has had first priority in our building program.

Chairman HAYDEN. I want to make it clear that the committee is seeking information.

Mr. ANKENY. We do have definite need for that building, and would like to insert a statement on the facilities at Bartlesville.