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Chapter I—Bureau of Mines.
§ 1.3


§ 1.14 Special restrictions―(a) Sales for the inflation of airships. Helium produced by the Bureau shall not be sold or used for the inflation of airships except such airships as operate in or between the United States and its territories and possessions, or between the United States or its territories and possessions and foreign countries. Helium produced by the Bureau shall not be sold or used for the inflation of any airship operating between two foreign countries notwithstanding such airship may also touch at some point in the United States. Any application for the purchase of helium for the purpose of inflating any airship shall show that fact on the face of the application.

(b) Exportation of helium. The act places certain restrictions and conditions upon the exportation of helium, and neither the regulations in this part nor any sale or contract of sale pursuant to the regulations in this part is intended to authorize or shall be construed as authorizing the exportation of helium. Any application for the purchase of helium for exportation shall show that fact on the face of the application.

(c) Liquidated damages. The Bureau may require in any contract for the purchase of helium a provision for the payment by the purchaser of liquidated damages, in an amount to be fixed by the Secretary of the Interior, in the event of failure by the purchaser faithfully to comply with the act and the regulations in this part and with the terms of the contract; if such a provision is required, the contract shall be accompanied by a domestic corporate surety bond, satisfactory to the Secretary of the Interior, in like amount conditioned upon faithful compliance by the purchaser with the act and the regulations in this part and with the terms of the contract. Such bond shall continue in force as long as any of the helium delivered under such contract shall remain in captivity, or for a period of three years whichever shall be the longer.

§ 1.15 Power of inspection. Authorized representatives of the United States may enter and inspect at all reasonable times the place (including places in foreign countries) where any helium produced by the Bureau is stored or used, to the extent reasonably necessary to ascertain whether it is being used or is likely to be used in violation of restrictions in the act or the regulations in this part on the exportation of helium or its use for the inflation of airships.

§ 1.16 Implied agreements. Every purchaser and every re-purchaser, possessor, or user of helium produced by the Bureau, shall be deemed to have expressly consented and agreed to comply with and be bound by the act and the regulations in this part, including the power of inspection provided for in § 1.15, all restrictions on the exportation of helium and its use for the inflation of airships, and the Government's right of repurchase set out in § 1.11.

§ 1.17 Violations and penalties. For violation of any of the provisions of the act or of the regulations in this part, the Bureau, in addition to any other penalties provided by law, may cancel all future deliveries and forfeit all deposits under existing contracts of purchasers responsible for or in any manner aiding or participating in such violations, and may deny all pending or future applications from applicants who are or have been responsible for or who have participated in or in any way aided such violations. Likewise, any liquidated damages provided for on account of such violations shall become due and payable.

§ 1.18 Purchaser's bonds. As a condition to the acceptance of any application for the purchase of helium, the Bureau may require the applicant to give a domestic corporate surety bond upon the condition that none of the helium applied for shall be used in violation of the regulations in this part or the act, in such amount and upon such further terms and conditions as the Bureau may deem suitable.

§ 1.19 Cancellation and assignment of contracts. Contracts for the purchase of helium or for the use of containers may not be canceled, assigned or otherwise transferred without the written consent of the Bureau.

§ 1.20 Federal agencies not affected. The regulations in this part have no application to requisitions of helium by agencies of the Federal Government, nor to the use of helium by such agencies.

§ 1.21 Forms. Forms of applications and contracts for purchase of helium and

for use of helium containers will be furnished by the Bureau upon request. The Bureau may make alterations in or addi-

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