Presidential Decree
No. 508
PROVIDING
GUIDELINES FOR THE DEVELOPMENT AND UTILIZATION OF SMALL OR SUB-COMMERCIAL DEPOSITS
OF NATURAL MARSH GAS OR METHANE GAS IN THE
WHEREAS,
natural marsh gas or methane gas in small sub-commercial deposits abound
throughout the country;
WHEREAS,
the development and utilization of said natural marsh gas or methane gas in
accordance with the policy of the government to develop other sources of
energy;
WHEREAS,
the development and utilization of these natural marsh gas or methane gas
deposits do not require huge capital investments and highly specialized
technical knowledge; and consequently are easier to develop;
WHEREAS,
the Government must open these deposits for development and utilization and
encourage their development and utilization;
lawphi1.net
NOW,
THEREFORE, I, FERDINAND E. MARCOS, President of the
SECTION
1. All small or sub-commercial natural marsh gas or methane
gas deposits found in any public or private lands, not exceeding 1,000 feet in
depth and not associated-with crude oil deposit, within the territorial limits
of the Philippines which are within free areas, national reserve areas, in any
other areas not covered by valid and subsisting petroleum exploration or
exploitation concessions, or by service contracts entered with the Government
under
Presidential Decree No. 87, may be developed for
household use or utilized for small-scale industrial development.
SEC.
2. Any citizen of the Philippines, of legal age, having the
capacity to contract and not convicted of any offense involving moral
turpitude, or any association of individuals in the form of partnership or
corporations duly organized and constituted under the laws of the Philippines
and at least sixty percent (60%) of the capital of which is and shall at all
times be held and owned by citizens of the Philippines, may apply for a
gratuitous permit to undertake the development and utilization of small or
sub-commercial deposits of natural marsh gas or methane gas.
SEC.
3. An application for a gratuitous permit shall be filed
with the
Director of Mines,
The
area to be covered by a gratuitous permit application shall be not more than
twenty (20) hectares, in block rectangular in shape, and as much as possible
the larger sides of the rectangle shall not be more than five times the shorter
sides.
SEC.
4. A permit area may be validly covered by a subsequent
petroleum exploration concession granted under the
Petroleum
Act of 1949, as amended, or by service contract entered with the Government
under
Presidential Decree No. 87, but no gratuitous
permit shall be issued by the
Director of
Mines on an area already covered by an existing permit or lease granted
under
Republic Act No. 5092, and in accordance with the
rules and regulations promulgated thereunder and on any area where natural gas
or methane gas deposits are more than 1,000 feet deep or when these deposits
are associated with crude oil.
SEC.
5. The permittee shall have the right to enter any private
land covered by his permit to conduct work thereon. If, however, the owner of such private land
or its legal occupant denies him such right, he may apply for permission to
enter such land, and upon posting such bond as may be fixed by the
Director of Mines shall be issued an order
allowing him such right pending the final determination of the proper amount
that shall be paid by the permittee to the landowner or legal occupant.
SEC.
6. The permittee shall conduct operations on the area
covered by his permit, a monthly operations of which shall be submitted by him
to the
Director of Mines for record and
information.
SEC.
7. The term of this permit shall be for a period of two (2)
years from the issuance thereof, renewable for another like period upon
compliance with the terms of the permit.
Should production be attained within the four (4) year period, the
permit may be extended of a series of 2 year period each but in no case to
exceed a total of fourteen (14) years, if warranted by continuing gas
production. Failure, however, of the
permittee to conduct operations on the area within one (1) year shall be a
cause for the cancellation of his permit.
SEC.
8. The
Director of Mines
is hereby authorized to assume jurisdiction and is charged with carrying out
these guidelines to the end that the utilization and development of these gas
deposits shall be duly encouraged and properly regulated.
He
shall prescribe the terms and conditions of the gratuitous permit to be issued,
and the necessary application form therefor.
SEC.
9. As used herein, the following terms shall have the
following respective meanings:
(a) Natural Marsh Gas or Methane Gas – light, odorless, colorless, and inflammable gaseous hydro-carbon, occurring naturally as a product of decomposition of organic matter in marshes and mines.
(b) Free Areas – all lands within the territorial limits of the Philippines excluding those submerged beneath bays, lakes, rivers or lagoons, but which are not within the, or including, national reserve areas, petroleum reservation, or covered by valid and existing exploration or exploitation concessions, or petroleum drilling leases acquired under the Petroleum Act (Act No. 2932), or petroleum mining claims located and held under the Act Congress of July 1, 1902, as amended.
(c) National Reserve Areas – areas which have been included in any exploration or exploitation concession but which have been subsequently given up by the concessionaire voluntarily or in accordance with the requirement of Article 50 and 53 of the Petroleum Act of 1949, as amended; or areas covered by exploration or exploitation concession which have expired or have been cancelled; or areas which have been which included within any of the two kinds of concessions but which are found to be in excess the maximum areas allowed by the Petroleum Act of 1949, as amended, for such concession.
(d) Permittee – a person, association, partnership or corporation who is a holder of gratuitous permit to develop and utilize natural marsh gas or methane gas.
SEC. 10. This Decree shall take effect immediately.
DONE
in the City of
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