Presidential Decree No. 1206
CREATING THE DEPARTMENT OF ENERGY
WHEREAS, the world-wide energy situation indicates that an adequate supply of energy resources for the country’s needs has become of long-term and vital national concern considering that the adequacy of energy resources is indispensable to accelerated economic growth;
WHEREAS, the Philippines has embarked
on a multi-dimensional response to the energy crisis, designated to achieve the
national objective of self-reliance and independence on the sourcing of energy
through intensive exploration and development of indigenous energy resources,
and through the judicious conservation and efficient utilization of energy;
WHEREAS, there is critical need to
further rationalize the country’s total energy resource development program in
order to accelerate its self-reliance and conservation program relative to
energy resource on an integrated and comprehensive basis; and
WHEREAS, meeting the country’s energy
requirements has become an integral and regular function of the government,
vast enough such that no less than an agency with the departmental status is
required which shall serve as the government’s primary
instrumentality in the formulation and implementation of its energy resource
development program on a unified and coordinated approach.
NOW, THEREFORE, I, FERDINAND E. MARCOS,
President of the
Section 1. Declaration of Policy. It is declared policy of the state to
ensure a continuous and adequate supply of energy with the end in view of
ultimately achieving self-reliance in the country’s energy requirements,
through intensive exploration and development of indigenous energy resources,
and through the judicious conservation and efficient utilization of energy
consistent with the country’s accelerated economic growth and taking into
consideration the significant and continuing participation of the private
sector in the various areas of energy resource development.
Section 2. Creation of a
Department of Energy. Pursuant to the abovementioned policy,
there is hereby created a
Department of Energy,
hereinafter referred to as the
Department,
which shall, among others formulate and implement the government’s policies,
plans and programs on energy resources development.
Section 3. Authority and Responsibility. The authority and responsibility for the
exercise of the powers and the discharge of the functions of the Department
shall be vested in a Secretary of Energy, hereinafter referred to as the
Secretary. The Secretary shall be
assisted by one Undersecretary.
Section 4. Powers and Functions. The
Department
shall have the following functions:
(a) Formulate policies, consistent with Section
1 above and pertinent national guidelines, and coordinate all activities of the
government relative to the exploration, exploitation, development, extraction,
importation, exportation, transport, marketing, distribution, and storage of
energy resources from fossil fuels such as petroleum, coal, natural gas and gas
liquids; nuclear fuel resources; geothermal resources; and non-conventional
existing and potential forms of energy resources;
(b) Establish and administer a comprehensive
and integrated program for the exploration, exploitation, development,
extraction, importation, exportation, transport, marketing, distribution, and
storage of fossil, nuclear, geothermal and non-conventional forms of energy
resources;
(c) Encourage, guide and where necessary,
regulate such business activity relative to the exploration, exploitation,
development, extraction, importation, exportation, transport, marketing,
distribution and storage of fossil, nuclear, geothermal, and non-conventional
forms of energy resources and prescribe and collect fees in the exercise of
such power;
(d) Assess, review and provide direction to, in
coordination with concerned government agencies, energy research and
development programs including identification of sources of energy and
determination of their commercial feasibility for development;
(e) Exercise the powers and functions of the
abolished Energy Development Board and Power Development Council under Section
11(a) and (b) of this Decree;
(f) Formulate such rules and regulations as
may be necessary to implement the objectives and provisions of this Decree; and
(g) Exercise all powers necessary or incidental
to attain the objectives of this Decree.
Section
5.
Department Proper. The
Department
shall have an Administrative Service, a Financial and Management Service, and a
Planning Service.
The
Administrative Service shall be responsible for providing the
Department with services relating to
personnel, legal assistance, information, records, supplies, equipment,
collection and disbursements, security and custodial work.
The
Financial and Management Service shall be responsible for providing the
Department with staff advice and assistance
on budgetary, financial, and management improvement matters.
The
Planning Service shall be responsible for providing the
Department with services relating to
planning, programming and project development, including for the formulation of
short and long term energy including power development policies and or
international developments. It shall
also review and evaluate energy development and utilization of non-conventional
forms of energy resources.
Section
6. Bureau of Energy Development. There is created in the Department a
Bureau of Energy Development, hereinafter referred to in this Section as the
Bureau, which shall have the following powers and functions, among others:
(a) Administer a national program for the
encouragement, guidance, and whenever necessary, regulation of such business
activity relative to the exploration, exploitation, development, and extraction
of fossil fuels such as petroleum, coal, natural gas and gas liquids; nuclear
fuel resources; geothermal energy resources; and non-conventional forms of
energy resources:
(b) Undertake by itself or cause the
undertaking by other institutions, government or private, of intensive research
and development to achieve the country’s self-reliance and conservation program
relative to energy resources:
(c) Exercise such powers and functions of the
Energy Development Board as shall hereafter be transferred to it; and
(d) Promulgate such rules and regulations as
may be necessary, subject to the approval of the Secretary, for the efficient,
effective and economical exercise of its power and functions.
The
decisions, orders, resolutions or actions of the Bureau may be appealed to the
Secretary whose decisions are final and executory
unless appealed to the President.
Section
7. Bureau of Energy Utilization. There is created in the
Department a Bureau of Energy Utilization,
hereafter referred to in this Section as the Bureau, which shall have the
following powers and functions, among others:
(a) Administer a national program for the
encouragement, guidance and, where necessary, regulation of such business
activities as importing, exporting, storing, shipping, transporting, refining,
processing, marketing, and distributing of energy resources. Energy resources mean any substance or
phenomena which by itself or in a combination with others, or after processing
or refining or the application to it of technology, emanates, generates or
causes the emanation or generation of energy, such as but not limited to
petroleum or petroleum product, coal, marsh gas, methane gas, geothermal and
hydroelectric sources of energy, uranium and other similar radioactive
minerals, solar energy, tidal power, as well as non-conventional existing and
potential sources.
(b) Exercise such powers and functions of the
abolished Oil Industry Commission under
Republic Act No.
6173, as amended, which are hereafter transferred to it under Section 12 of
this Decree.
(c) Promulgate, subject to the approval of the
Secretary, such rules and regulations as may be necessary for the efficient,
effective and economical exercise of its powers and discharge of its
functions.
The
decisions, orders, resolutions or actions of the Bureau may be appealed to the
Secretary whose decisions are final and executory
unless appealed to the President.
Section
8. Transferred Agency. The Philippine Atomic Energy Commission
is transferred from the supervision and control of the Office of the President
and placed under the supervision and control of the Department.
Section
9.
Board of Energy. There is hereby created a
Board of Energy, hereafter referred to in
this Section as the
Board, which shall be
under the supervision and control of the Office of the President, and shall be
composed of a Chairman and two (2) members to be appointed by the
President. It shall be assisted by such
technical and supportive staffs as it may appoint for the effective, efficient
and economical discharge of its powers and functions.
The
Chairman and members of the
Board shall be
natural born citizens and residents of the
No
person who has worked within three (3) years immediately prior to his
appointment or is working in any private firm engaged in the petroleum or
electric industry or any other entity whose main business is directly related
to or connected with any such firm shall be appointed to the Board.
The
term of office of the Chairman and members shall be four (4) years, but the
first Chairman appointed shall hold office for four (4) years and of the first
two (2) members, one (1) shall hold office for a term of three (3) years, and
the other for a term of two (2) years.
Unless the President decides otherwise, no person shall be appointed to
serve more than two (2) successive terms in the Board.
The
Chairman of the
Board shall receive a
compensation of fifty-four thousand pesos annually, while the members shall
each receive an annual compensation of forty-eight thousand pesos, together
with such allowances as are presently enjoyed by the Chairman and members of
the abolished Oil Industry Commission.
The
Board shall, after due notice and hearing,
exercise the following powers and functions, among others:
(a) Regulate and fix the rate schedule or
prices of piped gas to be charged by duly franchised gas companies which
distribute gas by means of underground pipe system;
(b) Regulate and fix the power rates to be
charged by electric companies except (1) electric cooperatives which shall
continue to be governed by
Presidential Decree No. 269, as
amended, and (2) the
National Power
Corporation which shall continue to be governed by
Republic
Act No. 6395, as amended;
(c) Perform such other powers and functions as
may be necessary, including the licensing of refineries and regulation of their
capacities; reviewing the importation costs of crude oil and providing
appropriate remedies for unreasonable or out of line prices and shipping costs
thereof; and taking adequate measures to insure that extraordinary gains
arising from an increase in the prices of petroleum products redound to the
public interest, including payment by persons or entities engaged in the
petroleum business to the special Fund created under Section 8(j) of
Republic Act No. 6173, as amended: Provided,
That the purposes of such Special Fund are hereby broadened to include its
utilization for all energy projects; and
(d) Issue Certificates of Public Convenience
for the operation of electric power utilities and services, except electric
cooperatives which shall continue to be governed by
Presidential
Decree No. 269,
as amended, including the
establishment and regulation of areas of operation of particular operators of
public power utilities and services, the fixing of standards and specifications
in all cases related to the issued Certificates of Public Convenience, and the
promulgation of rules requiring the operators concerned to install such devices
and adopt such procedures as would promote or insure the highest degree of
safety and convenience to persons and property.
The
provisions of Sections 11 and 12,
Republic Act No. 6173,
as amended by
Presidential Decree No. 1128, shall
govern proceedings before the Board, the mode of review of its decisions or
orders, including its authority to grant provisional relief.
Section
10. Attached Agencies. The following government corporations are
attached to the Department for purposes of policy coordination and integration
with sectoral programs:
Philippine National Oil Company,
National Power Corporation and
National Electrification Administration. Such attachment shall be in accordance with
the applicable provisions of Article III, Chapter IV, Part II and of Article
III, Chapter I, Part XI of the integrated Reorganization Plan.
The
ownership by the
National Development Company
of shares in the Manila Gas Corporation is hereby transferred to the
Philippine National Oil Company, subject to
the payment to
National Development Company
of the corresponding book value of its shareholdings in the said corporation as
of date of transfer to the
Philippine
National Oil Company.
Unless
the President directs otherwise the Secretary of the Department shall be
ex-officio Chairman of the governing boards of the
Philippine National Oil Company,
National Power Corporation, and
National Electrification Administration. The
Secretary
of Public Works,
Transportation and
Communications shall be the ex-officio member of the governing boards of
the
National Electrification Administration
and the
National Power Corporation in
lieu of one appointive position in the membership of said governing boards.
Section 11. Abolished Agencies.
(a) The Energy Development Board is abolished
and its powers and functions are transferred to the Department except those
that are specifically transferred to the Bureau of Energy Development under
Section 12 of this Decree.
(b) The Power Development Council is abolished
and its powers and functions are transferred to the Department.
(c) The Philippine
(d) The Oil Industry Commission is abolished
and its powers and functions are transferred to the Board of Energy and the
Department or the Bureau of Energy Utilization, as provided for in Section 12
of this Decree.
(e) The Board of Power and Waterworks is
abolished and its powers and functions relative to power utilities are
transferred to the Board of Energy, while its powers and functions relative to
waterworks are transferred to the National Water Resources Council.
All
the foregoing transfers of powers and functions shall include applicable funds
and appropriations, records, equipment, property, and such personnel as may be
necessary: Provided, That with particular reference to Paragraph e of this
Section, only such amount of the funds of the Specialized Regulatory Boards
which pertain to the operation of the Board of Power and Waterworks, as well as
only the personnel of the common Technical Staff of the Specialized Regulatory
Boards completely or primarily involved in power and waterworks shall be
involved in such transfers: Provided, further, That the applicable
funds and appropriations of the Oil Industry Commission shall all be
transferred to the Board of Energy.
Likewise,
the foregoing transfers of powers and functions of the abolished agencies shall
to be the extent that they are not modified by any specific provision of this
Decree.
Section
12. Transferred Powers and
Functions. The following powers and
functions are transferred as hereafter indicated to the extent that they are
not modified by any specific provision of this Decree:
(a) With reference to Section 11(a) above, the
powers and functions transferred to the Bureau of Energy Development are:
i. The following
powers and functions of the abolished Energy Development Board under
Presidential Decree No. 87:
Provided, That service
contracts authorized under the said Decree, including the transfer or
assignment of interest in said service contracts, shall require the approval of
the Secretary:
(1) Define and give public notice when
applicable of the areas available for service contract;
(2) Enter into contracts herein authorized with
such terms and conditions as may be appropriate under the circumstances: Provided,
however, That no depletion allowance shall be granted: Provided,
further, That except as provided in Section 26 and 27 in favor of
Presidential Decree No. 87, no contract in favor of one
contractor and its affiliates shall cover less than fifty thousand hectares nor
more than seven hundred and fifty thousand hectares for on-shore areas, or less
than eighty thousand nor more than one million five hundred thousand hectares
for off-shore areas: And, Provided, finally, That in no case shall
the annual net revenue or share of the government, including all taxes paid by
or on behalf of the contractor, be less than sixty percent of the difference
between the gross income and the sum of operating expenses and Filipino
participation incentive;
(3) Provide for the manner and form of the
income tax payment, the reimbursement of operating expenses and the payment of
service fee in the service contract;
(4) Make specific proposals to the President
for the grant of subsidy to contractors and petroleum companies at least sixty
percent of the capital of which is owned by Philippine citizens, to be derived
from the revenue or share that will accrue to the government in pursuance of
Presidential Decree No. 87;
(5) Undertake intensive studies and researches
on oil field practices, procedures, and policies; and
(6) Promulgate such rules and regulations as
may be necessary and assess charges for services rendered, to implement the
intent and provisions of
Presidential Decree No. 87.
ii. The following powers and functions of the
abolished Energy Development Board under
Presidential
Decree No. 910: Provided, That service contracts
authorized under the said Decree, including the transfer or assignment of
interest in said service contracts, shall require the approval of the
Secretary;
(1) Undertake by itself or through other
arrangements, such as service contracts, the active exploration, exploitation,
development, and extraction of energy resources in selected areas and/or
government reservations;
(2) Regulate all activities relative to the
exploration, exploitation, development, and extraction of fossil and nuclear
fuels and geothermal resources and, where necessary, prescribe and collect fees
in the exercise of such power;
(3) Exercise the other appropriate powers and
functions of the Petroleum Board under
Presidential Decree
No. 87 which were transferred to the Energy Development Board by
Presidential Decree No. 910; and
(4) Exercise the powers and functions of the
Bureau of Mines and/or the Department of Natural Resources relative to the
exploration, development, and administration of coal bearing lands as provided
for in Presidential Decree No. 463 and Act No. 2719, including the powers and
functions of the Bureau of Mines and/or the
Department
of Natural Resources under Republic Act No. 5093 and other laws relating to
the promotion and regulation of the exploration, exploitation and development
of geothermal energy, natural gas and methane gas.
iii. The powers and functions of the abolished
Energy Development Board under Section 18 of
Presidential
Decree No. 972, entitled “An Act to Promote an Accelerated Exploration,
Development, Exploitation, Production and Utilization of Coal”, relative to the
implementation of the provisions of the said Decree and the promulgation of
rules and regulations to implement the same:
Provided, That coal operating
contracts, including the transfer or assignment of interest in said contracts,
shall require the approval of the Secretary.
iv. The following powers and functions of the
abolished Energy Development Board under Section 3 of
Presidential
Decree No. 1068:
(1) Formulate and direct the implementation of
a comprehensive national energy program, subject to periodic review and
revisions on non-conventional energy research, development and utilization;
(2) Integrate, coordinate, direct and control
all research, development and utilization efforts, programs and projects in
non-conventional energy resources of all government agencies and
instrumentalities including government-owned and controlled corporations;
(3) Review and approve all on-going or planned
research, development and utilization projects on non-conventional energy
resources whether basic or applied in nature, supported or planned to be
supported by government funds or funds obtainable elsewhere through government
intercession or assistance;
(4) Formulate criteria for determining priority
for proposed research, development and utilization projects on non-conventional
energy resources and accordingly identify and select execution, financing and
funding schemes;
(5) Designate project implementors,
coordinate and monitor the progress of all projects and activities, on-going or
planned projects, in the implementation of the comprehensive national energy
program;
(6) Provide necessary and appropriate
supportive efforts to the non-conventional energy research, development and
utilization program such as the launching of vigorous information and promotion
drive, assistance and entry of suitable foreign expertise in order to
accelerate the pace of local research, development and utilization and the
training of qualified Filipino personnel in the various aspects of
non-conventional energy, proliferation of those applications in which
technologies have proven viable, such as bio-gas generation, windmills for
water, pumping and power generation, from agricultural and industrial wastes,
establishment of demonstration systems like solar water heaters, solar
air-conditioning and energy plantations;
(7) Develop and implement specific programs
requiring the participation not only of government agencies and instrumentalities
but also of the private sector;
(8) Grant incentives provided for in
Presidential Decree No. 1068 and recommend the grant of
such other incentives as shall be necessary and appropriate to enterprises,
industries and individuals who shall conduct their own or participate in
research and development or apply currently available non-conventional energy
technology to their industrial process or homes; and
(9) Promulgate such rules and regulations as
may be necessary to implement the objectives and provisions of
Presidential Decree No. 1068.
(b) With reference to Section 11(d) above, the
powers and functions of the abolished Oil Industry Commission under
Republic Act No. 6173, as amended, shall be transferred
as follows:
i. The following
powers and functions are transferred to the Department:
(1) Assure that the country shall have a
proper, adequate and continuous supply of crude oil and refined petroleum
products under the most economic and competitive terms possible considering all
available sources of supply;
(2) Study the importation of crude oil into the
(3) Look into all available sources of supply
of crude oil, draw up plans to cope with such contingencies as may arise should
prevailing sources of supply become closed or inaccessible, and enter into such
preliminary negotiations or arrangements with possible alternative sources as
may be necessary to assure a stable, adequate and continuous supply of crude
oil and refined petroleum products under the most economic and competitive
terms possible;
(4) Recommend to the President that the State, thru
such agency or agencies as the President may designate, acquire equity in any
refinery now existing or that may be organized hereafter: Provided,
however, That equity so acquired shall eventually be made available to the
public under such terms and conditions as shall be consistent with government
policy then in effect, giving priority to dealers of petroleum products and
gasoline station owners or operators; and
(5) Recommend to the President that the State,
thru such agency as the President may designate, take over the operation of any
refinery or other firm, corporation or entity engaged in the petroleum industry
whenever the public welfare or national interest so requires or (a) such
refinery, firm, corporation or entity ceases or threatens to cease or
substantially reduce its operations, and (b) its cessation or threatened
cessation or reduction or threatened reduction of operations threatens the
continued supply of petroleum products at reasonable prices to the general
public or to industries dependent on petroleum products for sources of energy
or otherwise creates a clear and present danger to the national welfare or
national security: Provided, however, That the operation by the State shall continue
only for such period of time as the threat or danger persists: Provided,
further, That just compensation shall be paid for the use of the property: And, Provided,
finally, That any unrecovered investment made by
the State during the take over shall reimbursed by the refinery, firm,
corporation or entity.
ii. The following powers and functions are
transferred to the Bureau of Energy Utilization:
(1) Assure that the petroleum industry, as a
business vital to the national interest, operates under conditions of orderly
and economic competition;
(2) Protect gasoline dealers and distributors
from unfair and onerous trade conditions;
(3) Minimize the cost of, and the outflow of
foreign exchange involved in, the operations of the industry;
(4) Induce and effect the increasing
participation of Filipino capital, labor and management in the industry and
prevent discrimination against any person by reason of race, color, creed or
political belief;
(5) Regulate investments of oil companies in
order to prevent monopoly, combinations in restraint of trade, unfair
competition and economic domination;
(6) Encourage and assist in the organization of
associations of Filipino oil and gasoline dealers and distributors throughout
the Philippines, public utility operators, gasoline and oil consumers and other
similar groups, through the formation of cooperatives or through other group
action;
(7) Regulate the operations and trade practices
of the industry in order to encourage orderly competition, prevent monopolies
and collusive practices within the industry, giving due regard to the
ecological and environmental needs of the country;
(8) Require that preference be given to
Philippine vessels and bottoms for the purpose of transporting crude oil to and
from the
(9) Take adequate steps to prevent monopolies
and combinations in restraint of trade within the petroleum industry, or
involving enterprises engaged in the petroleum industry;
(10) Authorize or approve the importation by any
agency or instrumentality of the government or a government-owned or controlled
corporation of crude oil or petroleum product from any available source, over
and above the normal importations of such entities, whenever it has determined
that there is a shortage of any petroleum product affecting public interest,
and take such other steps as it may deem necessary, including the temporary
adjustment of the levels of prices of petroleum products and the adoption of a
mechanism which will require the payment to the Special Fund created under
Section 8(j) of
Republic Act No. 6173, as amended, by
persons or entities engaged in the petroleum industry, in such amounts as it
may determine, which will enable the importer to recover its cost of
importation; and
(11) Require all dealership agreements to be filed
and registered with the Bureau as public documents.
iii. The following powers and functions are transferred
to the Board of Energy:
(1) Assure the public of reasonable prices for
petroleum products considering the international price levels of crude oil and
petroleum products and after allowing for proper and reasonable cost of
importing, shipping, transporting, processing, refining, storing, distributing,
marketing and selling crude oil and petroleum products in the Philippines, and
for a fair and reasonable return; and prevent collusive practices in the
industry, particularly as to prices;
(2) Determine whether current prices of
petroleum products are reasonable and set the prices of the same, providing for
a fair and reasonable return. No changes
in prices may thereafter be made by the Board, without prior public notice and
hearing at which any consumer of petroleum products and other parties who may
be affected may appear and participate.
In setting prices or making changes thereof, the Board shall be guided
by the following considerations:
(a) Whether claimed increases or decreases in
costs, sales or profits are real or simulated;
(b) Whether expenses and costs which are
claimed to have been incurred, or are being incurred, or are to be incurred are
reasonable, and whether any increase therein may be offset by increased
efficiency and reduction of excessive or unnecessary expenses;
(c) The impact of the proposed prices or change
therein on the economy and on the consuming public particularly low income
groups and industries essential to the national welfare or security; and
(d) The cost and profit levels of the industry.
(3) Regulate the capacities of new refineries
or additional capacities of existing refineries so as to accomplish the
purposes and objectives of
Republic Act No. 6173, as
amended;
(4) License refineries that may be organized
after the enactment of this Decree, under such terms and conditions as are
consistent with the national interest;
(5) Review the cost at which crude oil had been
imported into the Philippines with the preceding year whether by private
entities or by the government, whenever the Board has received a formal
complaint or has reason to believe that prices of shipping costs at which crude
oil has been or is being imported into the Philippines are unreasonable or out
of line with trends in the international market, taking into consideration
among other factors, the equity and security of supply, availability and
location of crude oil, and freight rates prevailing at the time; and, if found
to be unreasonable or out of line, require the importer or importers concerned
to reimburse the excess of the foreign exchange involved to the
Central Bank of the Philippines and fix
maximum import cost, requiring that, before future importation be made at a
cost in excess thereof, the approval of the Board be first secured. Any order of the Board in the exercise of
this power shall be binding on the
Central
Bank of the Philippines, the
Bureau of
Customs and all other executive agencies of the government;
(6) Take appropriate measures whenever an
authorized increase in the prices of petroleum products would result in an
extraordinary gain from existing inventories, including the payment by persons
or companies benefited to the Special Fund created under Section 8(j) of
Republic Act No. 6173, as amended, of such amounts as the
Board may determine in an appropriate order, as would assure that said extraordinary
gain will redound to the public interest; and
(7) Require through an appropriate order,
payment by persons or companies engaged in the business of importing,
manufacturing and/or marketing petroleum products, to the Special Fund created
under Section 8(j) of
Republic Act 6173, as amended,
of amounts not exceeding fifteen centavos per liter of refined petroleum
products. In the exercise of this power,
the Board shall take into account the requirement of the Special Fund in
relation to the purposes for which it was created, the effect of the payment on
prices of petroleum products and, corrolarily, its
cost impact on the economy and/or the consuming public and the cost and profit
levels of the industry.
iv. Except as otherwise specifically provided,
the following powers and functions of the abolished Oil Industry Commission
under
Republic Act No. 6173, as amended, are
transferred either to the Bureau of Energy Utilization or the Board of energy,
or both, to the extent applicable and appropriate in the light of the foregoing
transfers of powers and functions:
(1) Set conditions which would accomplish the
purposes of
Republic Act No. 6173, as amended, under
which persons, natural or juridical, can engage or continue engaging in the
business of importing, exporting, re-exporting, shipping, transporting,
processing, refining, storing, distributing, marketing or selling crude oil,
gasoline, kerosene, gas, and other refined petroleum products or by-products;
(2) Require importers of crude oil and
petroleum products to file data on their import and shipping costs as well as
other material information relative thereto;
(3) Require all persons, corporations and other
entities engaged in the petroleum industry and their associations or
institutes; to furnish it with such relevant information as it may need in the
discharge of its duties;
(4) Require all leadership agreements to be
filed and registered as public documents;
(5) Issue subpoena and subpoena duces tecum in any inquiry,
study, hearing, investigation, or proceedings which it may decide to undertake
in the exercise of its powers and functions;
(6) Promulgate rules and regulations relevant
to procedures governing hearings before it and enforce compliance with any
rule, regulations, order, or other requirement:
Provided, That said rules and
regulations shall take effect fifteen days after publication in the Official
Gazette;
(7) Perform such other acts as may be necessary
or conducive to the exercise of its powers and functions; and
(8) Undertake a continuing study of the
petroleum industry in its domestic and international aspects, gather and
collate information and statistics bearing on the industry, submit an annual
report to the President of the Philippines on its activities and the results of
its studies, including therein such matters as it may deem appropriate subjects
of legislation or executive action, and keep itself regularly and thoroughly informed
of conditions in the industry in order to enable it to perform its functions,
exercise its powers and discharge its duties effectively.
The
annual report shall include, among others, the following data on a
company-by-company basis:
(a) Volume, weight, type, import price, and
supplier of crude oil and petroleum products imported;
(b) Tonnage, type, nationality and ownership of
vessels used in importing crude oil and petroleum products, as well as shipping
costs;
(c) Audited financial statements of petroleum
refineries and marketing companies;
(d) Data on exported products, price of same,
country of destination, and vessel used;
(e) Listed wholesale price of gasoline on a
monthly basis;
(f) Posted and market prices of crude oil at
sources of importation and other known sources of crude oil supply; and
(g) Cost of refining petroleum products.
v. the provisions
of Section 16 of
Republic Act No. 6173, as amended,
shall continue to be effective.
(c)
the powers
and functions of the
Philippine National Oil
Company relating to the regulation of other oil companies, including the
importation of refined petroleum products, are hereby transferred to the
Department or its bureaus as appropriate.
Section
13. Concurrent Authority Over the
Regulation of the Mining of Radioactive Minerals. The powers and functions of the Bureau of
Mines relative to the mining location, registration, exploration, development
and exploitation of radioactive minerals containing uranium, thorium and other
radioactive elements under Presidential Decree No. 1101, shall be subject to
the concurrent clearance of the Bureau of Energy Development which may
prescribe such additional terms and conditions as are necessary insofar as
these pertain to energy development.
Section
14. Representation in the National
Water Resources Council. The
Department shall be represented in the
National Water Resources Council by the Secretary of Energy or his designated
representative as an additional member thereof.
Section
15. Representation in the NEDA. The
Secretary of Energy shall be an additional member of the
NEDA Board.
Section
16. Representation in the National
Science Development Board. The
Secretary of Energy and the
Secretary of Industry shall be additional
members of the National Science Development Board.
Section
17. Representation in the National
Electrification Administration. The
Secretary of Energy shall be an additional
member of the Board of
National
Electrification Administration.
Section
18. Representation in the Maritime
Industry Authority. The Secretary of
Energy shall be an additional member of the Board of the
Maritime Industry Authority.
Section
19. Benefits of Personnel Who May Be
Laid Off. Personnel of agencies
abolished or otherwise affected by this reorganization who are laid off as a
result of the implementation of this Decree shall be entitled to benefits and
privileges provided for under Sections 5 and 6 of Republic Act No. 5435, as
amended.
Section
20. Appropriation. To carry out the purposes of this Decree,
there is hereby appropriated out of any funds in the National Treasury not
otherwise appropriated, the sum of ten million pesos (P 10,000,000.00) for the
operation of the Department and its bureaus, including such amount thereof as
may be needed to augment the appropriations of the Board of Energy, for the
remaining period of FY 1977 in addition to whatever applicable appropriation
that may be transferred to it from among the government agencies reorganized
under this Decree. Thereafter, the
appropriation for the Department, its bureaus and the Board of Energy shall be
included in the Annual General Appropriation Act.
Section
21. Applicability Clause. The applicable provisions of
Republic Act No. 6173, as amended, otherwise known as the
“Oil Industry Commission Act”;
Presidential Decree No. 269,
otherwise known as the “National Electrification Administration Decree”;
Presidential Decree No. 87, also known as the “Oil
Exploration and Development Act of 1972”;
Presidential
Decree No. 910, creating the Energy Development Board; Presidential Decree
No. 948, strengthening and reconstituting the Power Development Council;
Presidential Decree No. 972, otherwise known as the “Coal
Development Act of 1976”;
Presidential Decree No. 1068,
directing the acceleration of research, development and utilization of
non-conventional energy resources; Presidential Decree No. 1101, declaring
areas containing radioactive minerals open to mining location and disposition
and such other laws and decrees governing the administration and development of
energy resources shall continue to have full force and effect, except insofar
as inconsistent with this Decree.
Section
22. Separability Clause. Should any provision of this Decree be
held unconstitutional, no other provisions hereof shall be affected thereby.
Section
23. Repealing Clause. All laws, decrees, executive orders,
administrative orders, rules and regulations inconsistent herewith are hereby
repealed, amended or modified accordingly.
Section
24. Effectivity. This Decree shall take effect
immediately.
Done
in the City of
What do you want to do now?
Go Back to the Top; Go back to art’s home page; Laugh or Be Entertained; Destroy Cartels and Monopolies; Invest or Find a Job; Check Software or a Computer; Check out the latest News; Look for a School; Greet a Friend; Dip Into Black Gold and be Electrified; Express Yourself; Relive the Past; Get Involved in the Law, Government, & Politics; Read Some Classics; Meet New People; Consult the laws of the Philippine energy sector; Philosophize; or Search.
This page is best viewed using Microsoft Internet Explorer 4.0 or higher.
Last revised: November 12, 2008 10:33 PM.
Caveat Emptor: Owners of the sites included herein do not explicitly endorse this page.
Comments, suggestions, objections, or violent reactions?