Messer is Granted Temporary Restraining Order to Avoid Disruption of Domestic Helium Supply
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BRIDGEWATER, N.J., Aug. 7, 2024 ~ In a recent court ruling, the 108th District Court in Amarillo, Texas has granted Messer Helium Cliffside LLC's (MHC) request for a temporary restraining order (TRO) to prevent the imminent shutdown of the former federal Helium System. This system was recently acquired by MHC from the US Bureau of Land Management (BLM).
The TRO will allow MHC to continue operating the Crude Helium Enrichment Unit (CHEU), which is owned by Cliffside Refiners LP (CRLP). This comes after the current lease between CRLP and the BLM was set to end on August 11, 2024.
The CHEU is a crucial piece of machinery that extracts and processes helium from the Helium System. Without access to this unit, the entire system would be forced to shut down.
This court ruling will prevent any disruption in domestic helium supply, as it allows for continued operation of the CHEU after August 11. The Court has also ordered MHC and CRLP to appear before him on August 23, 2024, where a decision will be made on whether to grant MHC a preliminary injunction. This injunction would give them time to negotiate a new lease with CRLP in good faith.
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While two out of three CRLP partners support allowing MHC continued access to the CHEU, negotiations with Air Products have been unsuccessful. If Air Products continues to impede MHC's ability to operate the CHEU, it could potentially deprive numerous third parties access to their privately owned helium stored in the system.
In response to this ruling, Chris Ebeling, Messer's Executive Vice President of Sales & Marketing for North America stated that "Without helium, MRI machines cannot run, semiconductor chips cannot be made, and space rockets cannot launch." He also emphasized that national defense and economic security could be impacted if the largest foreign suppliers of helium, Qatar and Russia, are subject to disruption by geopolitical events and trade restrictions.
As a leading supplier of helium, Messer is committed to providing a safe, dependable, and continuous supply of this valuable gas. They have operated the CHEU safely and reliably over the past two years while under contract with the BLM. MHC looks forward to explaining to the Court at the upcoming hearing why their continued access to the CHEU is critical in protecting the stability of the domestic helium market and meeting the needs of various industries that rely on this gas.
The TRO will allow MHC to continue operating the Crude Helium Enrichment Unit (CHEU), which is owned by Cliffside Refiners LP (CRLP). This comes after the current lease between CRLP and the BLM was set to end on August 11, 2024.
The CHEU is a crucial piece of machinery that extracts and processes helium from the Helium System. Without access to this unit, the entire system would be forced to shut down.
This court ruling will prevent any disruption in domestic helium supply, as it allows for continued operation of the CHEU after August 11. The Court has also ordered MHC and CRLP to appear before him on August 23, 2024, where a decision will be made on whether to grant MHC a preliminary injunction. This injunction would give them time to negotiate a new lease with CRLP in good faith.
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While two out of three CRLP partners support allowing MHC continued access to the CHEU, negotiations with Air Products have been unsuccessful. If Air Products continues to impede MHC's ability to operate the CHEU, it could potentially deprive numerous third parties access to their privately owned helium stored in the system.
In response to this ruling, Chris Ebeling, Messer's Executive Vice President of Sales & Marketing for North America stated that "Without helium, MRI machines cannot run, semiconductor chips cannot be made, and space rockets cannot launch." He also emphasized that national defense and economic security could be impacted if the largest foreign suppliers of helium, Qatar and Russia, are subject to disruption by geopolitical events and trade restrictions.
As a leading supplier of helium, Messer is committed to providing a safe, dependable, and continuous supply of this valuable gas. They have operated the CHEU safely and reliably over the past two years while under contract with the BLM. MHC looks forward to explaining to the Court at the upcoming hearing why their continued access to the CHEU is critical in protecting the stability of the domestic helium market and meeting the needs of various industries that rely on this gas.
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