"SECTION 287. Shares of Local Government Units in the Proceeds from the Development and Utilization of the National Wealth. - Local government units shall have an equitable share in the proceeds derived from the utilization and development of the national wealth, within their respective areas, including sharing the same with the inhabitants by way of direct benefits.

"(A) Amount of Share of Local Government Units. - Local government units shall, in addition to the internal revenue allotment, have a share of forty percent (40%) of the gross collection derived by the national government from the preceding fiscal year from excise taxes on mineral products, royalties, and such other taxes, fees or charges, including related surcharges, interests or fines, and from its share in any co-production, joint venture or production sharing agreement in the utilization and development of the national wealth within their territorial jurisdiction.

"(B) Share of the Local Governments from Any Government Agency or Government-owned or -Controlled Corporation. - Local government units shall have a share, based on the preceding fiscal year, from the proceeds derived by any government agency or government-owned or -controlled corporation engaged in the utilization and development of the national wealth based on the following formula, whichever will produce a higher share for the local government unit:

"(1) One Percent (1%) of the gross sales or receipts of the preceding calendar year; or

"(2) Forty percent (40%) of the excise taxes on mineral products, royalties, and such other taxes, fees or charges, including related surcharges, interests or fines the government agency or government-owned or -controlled corporation would have paid if it were not otherwise exempt.

"(C) Allocation of Shares. - The share in the preceding Section shall be distributed in the following manner:

"(1) Where the natural resources are located in the province:

"(a) Province - twenty percent (20%);

"(b) Component city/municipality - forty-five percent (45%); and

"(c) Barangay - thirty-five percent (35%).

"Provided, however, That where the natural resources are located in two (2) or more provinces, or in two (2) or more component cities or municipalities or in two (2) or more barangays, their respective shares shall be computed on the basis of: (1) Population - seventy percent (70%); and (2) Land area - thirty percent (30%).

"(2) Where the natural resources are located in a highly urbanized or independent component city:

"(a) City - sixty-five percent (65%); and

"(b) Barangay - thirty-five percent (35%).

"Provided, however, That where the natural resources are located in two (2) or more cities, the allocation of shares shall be based on the formula on population and land area as specified in subsection (C)(1) hereof.