SELLING THE NATION’S HELIUM RESERVE
NATIONAL RESEARCH COUNCIL
OF THE NATIONAL ACADEMIES
THE NATIONAL ACADEMIES PRESS
Washington, D.C.
www.nap.edu
THE NATIONAL ACADEMIES PRESS
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NOTICE: The project that is the subject of this report was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the committee responsible for the report were chosen for their special competences and with regard for appropriate balance.
This study was supported by Grant No. NAC080001 between the National Academy of Sciences and the Bureau of Land Management of the U.S. Department of the Interior. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the views of the organizations or agencies that provided support for the project.
International Standard Book Number-13: 978-0-309-14979-2
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THE NATIONAL ACADEMIES
Advisers to the Nation on Science, Engineering, and Medicine
The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. Upon the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Ralph J. Cicerone is president of the National Academy of Sciences.
The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievements of engineers. Dr. Charles M. Vest is president of the National Academy of Engineering.
The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, upon its own initiative, to identify issues of medical care, research, and education. Dr. Harvey V. Fineberg is president of the Institute of Medicine.
The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academy’s purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. The Council is administered jointly by both Academies and the Institute of Medicine. Dr. Ralph J. Cicerone and Dr. Charles M. Vest are chair and vice chair, respectively, of the National Research Council.
COMMITTEE ON UNDERSTANDING THE IMPACT OF SELLING THE HELIUM RESERVE
CHARLES G. GROAT,
University of Texas at Austin,
Co-Chair
ROBERT C. RICHARDSON,
Cornell University,
Co-Chair
ROBERT R. BEEBE, Independent Consultant
JOHN R. CAMPBELL,
J.R. Campbell & Associates, Inc.
MOSES H. CHAN,
Pennsylvania State University
JANIE M. CHERMAK,
University of New Mexico
CAROL A. DAHL,
Colorado School of Mines
THOMAS ELAM,
National Aeronautics and Space Administration
ALLEN M. GOLDMAN,
University of Minnesota
NORMAN E. HARTNESS, Independent Consultant
W. JOHN LEE,
Texas A&M University
ALBERT MIGLIORI,
National High Magnetic Field Laboratory, Los Alamos National Laboratory
DAVID C. MOWERY,
University of California at Berkeley
MICHAEL PRATS,
Michael Prats & Associates, Inc.
J. BENJAMIN REINOEHL,
RMW Solutions, LLC
IGOR SEKACHEV,
TRIUMF
THOMAS A. SIEWERT,
National Institute of Standards and Technology
MARK H. THIEMENS,
University of California, San Diego
Staff
DONALD C. SHAPERO, Director,
Board on Physics and Astronomy (BPA)
GARY FISCHMAN, Director,
National Materials Advisory Board (NMAB) (through March 2010)
MICHAEL H. MOLONEY, Associate Director,
BPA
JAMES C. LANCASTER, Program Officer,
BPA
BETH DOLAN, Financial Associate
BOARD ON PHYSICS AND ASTRONOMY
MARC A. KASTNER,
Massachusetts Institute of Technology,
Chair
ADAM S. BURROWS,
University of Arizona,
Vice Chair
JOANNA AIZENBERG,
Harvard University
JAMES E. BRAU,
University of Oregon
PHILIP H. BUCKSBAUM,
Stanford University
PATRICK L. COLESTOCK,
Los Alamos National Laboratory
RONALD C. DAVIDSON,
Princeton University
ANDREA M. GHEZ,
University of California at Los Angeles
PETER F. GREEN,
University of Michigan
LAURA H. GREENE,
University of Illinois at Urbana-Champaign
MARTHA P. HAYNES,
Cornell University
JOSEPH HEZIR,
EOP Group, Inc.
MARK KETCHEN,
IBM Thomas J. Watson Research Center
ALLAN H. MacDONALD,
University of Texas at Austin
PIERRE MEYSTRE,
University of Arizona
HOMER A. NEAL,
University of Michigan
JOSE N. ONUCHIC,
University of California at San Diego
LISA J. RANDALL,
Harvard University
CHARLES V. SHANK,
Lawrence Berkeley National Laboratory (retired)
MICHAEL S. TURNER,
University of Chicago
MICHAEL C.F. WIESCHER,
University of Notre Dame
Staff
DONALD C. SHAPERO, Director
MICHAEL M. MOLONEY, Associate Director
ROBERT L. RIEMER, Senior Program Officer
JAMES C. LANCASTER, Program Officer
DAVID B. LANG, Associate Program Officer
TERI G. THOROWGOOD, Administrative Coordinator
CARYN J. KNUTSEN, Research Associate
BETH DOLAN, Financial Associate
NATIONAL MATERIALS ADVISORY BOARD
ROBERT H. LATIFF,
R. Latiff Associates,
Chair
LYLE H. SCHWARTZ,
University of Maryland,
Vice Chair
L. CATHERINE BRINSON,
Northwestern University
VALERIE M. BROWNING,
ValTech Solutions, LLC
YET-MING CHIANG,
Massachusetts Institute of Technology
PAUL CITRON,
Medtronic, Inc. (retired)
GEORGE T. GRAY III,
Los Alamos National Laboratory
SOSSINA M. HAILE,
California Institute of Technology
CAROL A. HANDWERKER,
Purdue University
DAVID W. JOHNSON, JR.,
Stevens Institute of Technology
THOMAS KING,
Oak Ridge National Laboratory
PAUL S. PEERCY,
University of Wisconsin-Madison
MARK A. RATNER,
Northwestern University
KENNETH H. SANDHAGE,
Georgia Institute of Technology
ROBERT E. SCHAFRIK,
GE Aviation
HAYDN N.G. WADLEY,
National Institute of Standards and Technology
STEVEN WAX,
Reston, Virginia
Staff
DENNIS CHAMOT, Acting Director (as of April 2010)
HEATHER LOZOWSKI, Financial Associate
ERIK SVEDBERG, Program Officer
LAURA TOTH, Senior Program Assistant
RICKY WASHINGTON, Administrative Coordinator
Preface
In the public’s mind, helium is the gas that fills balloons and the Goodyear blimp. Supply shortages or price structures that result in the loss of either helium-filled balloons or the Goodyear blimp would probably stimulate media coverage of the problem and generate some regret, but their loss would not impact national security or the public welfare. Interestingly, it was lighter-than-air use—to supply airships—that motivated the creation of the Federal Helium Reserve back in 1925. This report deals principally with those lesser-known but essential uses of helium that have evolved, along with the technology, to become of critical importance to the nation’s research, space, medical, and defense programs. It follows the National Research Council (NRC) report released in 20001 that assessed the impacts of the Helium Privatization Act of 1996 by which Congress directed the government to sell essentially all of the helium reserve to compensate it, the government, for its investment in the helium and in the helium’s storage infrastructure. Changes in price and availability since that NRC study have caused concerns about the availability of helium to critical users and raised questions about the previous report’s conclusion that the sale of the helium reserve would not significantly affect helium availability.
The NRC convened the Committee on Understanding the Impact of Selling the Helium Reserve to determine whether selling off the U.S. helium reserve in the manner prescribed by law has had any adverse effect on U.S. scientific, techni-
cal, biomedical, and national security users of helium. The Board on Physics and Astronomy (BPA) and the National Materials Advisory Board (NMAB) developed the charge for this study in consultation with the study’s sponsors at the U.S. Department of the Interior’s Bureau of Land Management. The complete charge is reproduced in Appendix A.
The full committee met in person four times (see Appendix C) to address its charge. It formed subgroups to study specific areas in further detail and to develop the text of the final report. At its meetings, the committee heard from members of the communities involved in all the aspects of helium handling, from its extraction from underground reservoirs and its various stages of purification to its delivery and use by the end users. The work of the committee between meetings relied upon conference calls and e-mail correspondence. This final report reflects not only the committee’s concerns about how the helium reserve is being managed but also its considered opinion on how it should be managed in the future.
The committee that prepared this report is composed of representatives from the many disparate communities that use helium, experts able to address the intricate economic issues that arise in assessing the helium markets, as well as representatives from industry (see Appendix B for biographical sketches of the committee members). In the course of its deliberations, members of the committee, scientists and non-scientists alike, were struck by the inordinate impact that increases in helium prices and its periodic scarcity are having on the small-scale science community. Unless structural changes are adopted that would allow members of this community to avail themselves of the existing so-called in-kind program, continued price increases and scarcities may result in these programs losing significant research capability, which in turn may have long-term impacts for the nation from the loss of both research results and the future researchers who would otherwise be receiving training. The committee believes that with clear guidance and measured responses, the helium reserve will be able to support the many critical users of helium in the United States for years to come. As it notes changes in conditions not anticipated in the 2000 Report, the committee advocates the establishment of an ongoing mechanism for monitoring the supply situation and the availability of helium to priority users.
As committee co-chairs, we are especially grateful to the committee members for their wisdom, cooperation, and commitment to ensuring the development of a comprehensive report. The capable and energetic support provided by BPA and NMAB staff members Michael Moloney and James Lancaster was essential to completion of the study and this report.
Charles G. Groat, Co-Chair
Robert C. Richardson, Co-Chair
Committee on Understanding the Impact of Selling the Helium Reserve
Acknowledgment of Reviewers
This report has been reviewed in draft form by individuals chosen for their diverse perspectives and technical expertise, in accordance with procedures approved by the National Research Council’s Report Review Committee. The purpose of this independent review is to provide candid and critical comments that will assist the institution in making its published report as sound as possible and to ensure that the report meets institutional standards for objectivity, evidence, and responsiveness to the study charge. The review comments and draft manuscript remain confidential to protect the integrity of the deliberative process. We wish to thank the following individuals for their review of this report:
Gordon Baym, University of Illinois at Urbana-Champaign
John Curtis, Colorado School of Mines
Robert Dynes, University of California at San Diego
Donald Gessaman, EOP Group, Inc.
William Halperin, Northwestern University
Charles Howe, University of Colorado
Carl Johnson, Pipeline and Hazardous Materials Safety Administration (retired)
Robert Kephart, Fermilab
Jane Long, Lawrence Livermore National Laboratory
Chris Sims, Princeton University
G.J. Wasserburg, California Institute of Technology
Although the reviewers listed above have provided many constructive comments and suggestions, they were not asked to endorse the conclusions or recommendations, nor did they see the final draft of the report before its release. The review of this report was overseen by Julia Phillips, Sandia National Laboratories. Appointed by the National Research Council, she was responsible for making certain that an independent examination of this report was carried out in accordance with institutional procedures and that all review comments were carefully considered. Responsibility for the final content of this report rests entirely with the authoring committee and the institution.