transport children of employees to areas where adequate schooling was available. The need for this service at Rifle, Colo., ended with the closing of that plant. Service was also dicontinued at the Exell plant when the local school board district obtained the necessary funds to provide bus transportation for children at that location. Since there appears to be no further need for this authority, the Bureau of Mines will propose the deletion of this provision in the 1968 budget estimate. Mr. DENTON. The next appropriation is the Helium fund. Insert in the record pages 125 through 129 of the justifications. (The pages follow:) The estimate for 1967 is $26 million (borrowing authority), an increase of $10 million over 1966. Need for increase The amount of borrowing authority requested for 1967 will be needed to supplement income from helium sales and unused borrowing authority from previous years to meet the Bureau's financial commitments under the helium conservation program. Objectives A. National goal: The single enduring national objective of the Bureau of mines helium program is to obtain maximum beneficial use of the natural helium resources of the United States. B. Contributory goals: The Bureau of Mines helium program endeavors to achieve its national goal through the accomplishment of three subsidiary objectives. 1. The production and sale of helium for current beneficial use. 2. The acquisition and storage of helium that would otherwise be wasted in order that this helium may be used beneficially in the future. 3. Research that will contribute to a more effective utilization of the natural helium resources of the United States now and in the future. Guidance considerations The Bureau of Mines helium program is an integral part of a total national helium effort. Historically, about 25 percent of the helium sold by the Bureau of Mines for current use is delivered to end users, particularly in industry, through private compressed gas distributors. These distributors also provide technical advice to their customers regarding specific industrial applications. The part of the program concerned with the acquisition and storage of helium for future use was developed by the Bureau of Mines in close cooperation with the principal Federal helium-using agencies, and a close relationship with these agencies is maintained on a continuing basis. Most of the helium saved for future use is acquired from industry. An excellent working relationship has also been established with the private companies that are now, or soon will be. producing and selling helium to civilian consumers separate and apart from the Government program. The research conducted in the helium program is directed primarily to the assurance of an adequate continuing supply of helium to meet present and future needs and to fill in gaps in knowledge regarding the physical properties of helium. It complements research in industry on specific helium applications and in universities on helium as a unique form of matter. Program of work The helium program in fiscal year 1967 will be a continuation of the program for fiscal year 1966. The five Bureau of Mines helium plants will continue to operate to produce an estimated 824 million cubic feet of helium-of which it is estimated that 650 million cubic feet will be sold to supply current helium demands, and 174 million cubic feet will be injected into the Cliffside field for use in the future. This estimate of sales for fiscal year 1967 anticipates that about 100 million cubic feet of helium will be sold to civilian consumers by private industry. Plant improvements, initiated at the Keyes and Exell helium plants in fiscal year 1966, will be completed in fiscal year 1967. Additional automation at Keyes and a new helium extraction unit at Exell will enable the Bureau of Mines to recover more helium from the gas processed and to reduce operating expenses at these plants sufficient to recover the cost of the improvements in about 31⁄2 years. The Bureau of Mines shall also acquire-by purchase from private industry under already existing contracts-an estimated 3.8 billion cubic feet of helium, which shall be stored in the Cliffside field for future use. All of this helium will be recovered from natural gas en route to fuel markets; and except for the helium conservation program, it would be lost into the atmosphere without serving any useful purpose when the gas is burned. The Bureau's program of helium research will continue in fiscal year 1967 at about the same level as in fiscal year 1966. The objective of this research is to provide useful scientific information on the properties of helium and heliumbearing gases, so that maximum benefits can be derived from our country's limited natural helium resources. NEW PROGRAMS The Exell helium plant will be modified by the installation of one crude helium separation unit with automated controls to replace 12 smaller units with individuals controls. Design of the new unit will incorporate recent advances in technology and result in recovery of more helium at a reduced operating cost. The investment costs for this work will be recovered from savings in about 3% years, but the benefits are expected to continue to accrue for a much longer period. Accomplishments The Bureau of Mines conceived the idea of recovering helium from heliumbearing natural gas in the United States and has been principally responsible for the subsequent development of helium from a laboratory curiosity to a useful element in industry as well as some of the Federal Government's most vital nuclear, space, defense, and other programs. In fiscal year 1965, the Bureau of Mines produced and sold 654 million cubic feet of helium for current use, and an estimated 670 million cubic feet will be produced and sold by the Bureau of Mines for current use in fiscal year 1966. Also, in fiscal year 1965, the Bureau of Mines acquired and stored for future use about 3.4 billion cubic feet of helium that would have otherwise been wasted in natural gas consumed as fuel. About 100 million cubic feet of this helium was extracted and saved at Bureau of Mines plants in excess of current demands. The remainder was acquired through purchases under contracts with industry. "The Bureau of Mines estimates that it will acquire and store for future use about 3.9 billion cubic feet in fiscal year 1966. A total of 65 technical and scientific reports were made by Bureau of Mines engineers and scientists in the helium program in fiscal year 1965, and it is estimated that 98 will be made in fiscal year 1966. In addition to the foregoing, the Bureau of Mines was successful in obtaining a 30-percent reduction in freight rates applicable to helium shipments to Federal agencies in railroad tank cars. This reduction, already in effects, will save the Federal Government an estimated $750,000 a year. GENERAL STATEMENT Mr. DENTON. Do you have a general statement you would like to make on this activity? Mr. HIBBARD. Yes, sir. The helium activity is functioning as planned. During this fiscal year we expect to acquire and store 3.9 billion cubic feet of helium. We expect to sell 608 million cubic feet of helium largely to the Federal Government and we believe the program during this period will be right on schedule. I would like to put a brief statement, including one chart, into the record. (The information follows:) The helium program is functioning as planned to supply more helium for current use, save more helium for future use and provide more technical and scientific information on helium than ever before. In this fiscal year, we expect to sell 680 million cubic feet of helium, acquire and store 3.9 billion cubic feet of helium, and issue 98 technical and scientific reports on helium and heliumrelated subjects-and we expect to establish all of these new records with 25 fewer employees than were employed in the helium program last year. Insofar as the program financing is concerned, our expenditures, revenues, and borrowings are running very close to the estimates given to the committee in these hearings last year. We now expect to expend a total of $52.4 million in the program in fiscal year 1966; the estimate given to the committee last year was $52.8 million. Revenues are now estimated at $26.6 million; our previous estimate was $26.2 million. We expect to borrow $25 million from the Treas ury, instead of the previously estimated $25.8 million. As is indicated by these comparisons, the program has reached a stage of development where it is now possible to predict the annual fiscal requirements with reasonable accuracy. In the past, the volume of helium extracted in the plants of our contractors (and consequently the program expenditures for the acquisition of this helium) has been the major uncertainty in our prediction. All of the plants are now operating at or near capacity; and in December 1965, the Bureau of Mines purchased $3.75 million worth of helium under the four contracts. With your approval, I would like to submit for insertion into the record, a graph which shows the expenditures by months, under the contracts through December 1965. (See p. 292.) NEW HELIUM DISCOVERY, SUBLETTE COUNTY, WYO. Mr. DENTON. During the last year I understand you discovered what is believed to be a significant reserve of helium in deep formations underlying the Tip Top Field, Sublette County Wyo. Will you tell the committee something about this reserve and indicate what your plans are in this connection? Mr. WHEELER. This helium reservoir is a very deep reservoir in Tip Top Field below 7,000 feet. At the present time there is only one well that gets down to the helium-bearing gas depth in the field. There are no plans at the present time for the helium-bearing gas to be produced from this reservoir and consequently we do not propose to do anything about it except to let it stay there until some time in the future. Mr. DENTON. Is it a pretty good size reservoir? Mr. WHEELER. It is impossible to predict with any degree of accuracy the extent of the reserve based on the information gained from only one well, but if you look at the areal extent of the structure, the possibility is relatively great. But we simply just do not know. We can't afford at this time to drill any more wells to that depth to find out. U.S. BUREAU OF MINES HELIUM ACTIVITY Mr. DENTON. Will this new discovery have any effect on your longrange plans? Mr. WHEELER. It will certainly mean that we will not run out of helium in the United States as quickly as we might otherwise. Mr. DENTON. How much quicker you don't know? Mr. WHEELER. How much quicker, we do not know, and we don't think it makes any difference, Mr. Chairman. We think that we need |