Reading Room Document

Termination of helium conservation program supply contracts

The document discusses the termination of a helium conservation program and the legal implications of terminating long-term contracts for the purchase of helium. The conclusion reached in the document is that the government does not presently have the right to terminate the contracts without incurring significant liabilities for lost profits and unamortized capital costs. The document presents questions for review, including whether improvements in helium extraction technology and the discovery of low helium content gases could justify termination of the contracts, and the potential costs and legal implications of such termination. It also discusses the possibility of giving the contractors notice of an intention to terminate on the basis of "new resources" and inviting them to submit information and views before the Secretary makes a determination.

December 22, 1969