Promulgating An Act To Promote An Accelerated Exploration, Development, Exploitation, Production And Utilization Of Coal
Download as PDF
Download as Word
Collections
Create new Collection
Overview
Full Text
Details
Case
Agency Issuance Number
Published Date
Promulgating An Act To Promote An Accelerated Exploration, Development, Exploitation, Production And Utilization Of Coal
Presidential Decree No. 972
July 28, 1976
Case Overview and Summary
Summary:Declaration of Policy and Coal Development Program (Sections 2-3)
- Accelerate exploration, development, exploitation, production and utilization of coal resources.
- Establish coal development program and divide the country into coal regions for exploration and exploitation.
- Formulate special program for regions with high concentration of small coal miners.
Government Undertaking and Blocking System (Sections 4-6)
- Government to undertake active exploration, development and production of coal resources through Energy Development Board (EDB).
- EDB to execute coal operating contracts.
- Establish blocking system dividing coal regions into blocks of 1,000 hectares.
- No person entitled to more than 15 blocks in one coal region.
- EDB to determine available areas for coal operating contracts through bidding or negotiation.
Existing Permitees/Leaseholders (Section 7)
- Holders of existing coal rights to be given preference for coal operating contracts over their areas.
- Must consolidate into coal units not exceeding 15 blocks per region within 6 months.
- Agree on participation terms and enter into coal operating contract within 6 months.
- Failure to consolidate or secure contract results in cancellation of existing rights.
Coal Operating Contract (Sections 8-15)
- Executed by EDB, providing service, technology and financing by operator.
- Operator's obligations: exploration, development, extraction and utilization of coal.
- EDB to reimburse up to 70% of gross proceeds as operating expenses and pay operator's fee up to 40%.
- Existing holders may get additional 30% fee, new operators 20% or 10% with Filipino participation.
- Minimum terms: annual expenditure, exploration period, development period, asset ownership, compliance with laws.
- Full disclosure of interests, arbitration clause, performance guarantee, transfer restrictions.
Incentives to Operators (Section 16)
- Exemption from taxes except income tax.
- Exemption from import duties on machinery, equipment and materials.
- Accelerated depreciation options.
- Remittance of foreign loans and obligations.
- Preference for government loans (for Filipino operators).
- Entry of alien technical personnel.
Incentives to Coal Users (Section 17)
- Tax exemption on imported capital equipment for coal conversion within 7 years.
- Tax credit on domestic capital equipment for coal conversion within 7 years.
- Net operating loss carryover for 6 years.
- Capital gains tax exemption on sale of assets for coal conversion.
- Accelerated depreciation options.
- Remittance of foreign loans and obligations.
- Preference for government loans (for Filipino operators).
Implementing Agency and Other Provisions (Sections 18-21)
- EDB to implement the decree and promulgate rules and regulations.
- Separability clause.
- Repealing clause for conflicting laws.
- Immediate effectivity upon approval.
Amends
n/a
Amended by
n/a
Tags
Executive Issuances
Presidential Decrees
coal exploration
coal development
coal exploitation
coal production
coal utilization
coal operating contract
coal unit
coal region
coal block
coal incentives
coal conversion
coal burning
tax exemptions
accelerated depreciation
foreign loans
government loans
alien personnel
Law
Promulgating An Act To Promote An Accelerated Exploration, Development, Exploitation, Production And Utilization Of Coal
Presidential Decree No. 972
•July 28, 1976
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 972 July 28, 1976
PROMULGATING AN ACT TO PROMOTE AN ACCELERATED EXPLORATION, DEVELOPMENT, EXPLOITATION, PRODUCTION AND UTILIZATION OF COAL
WHEREAS, the increasing cost of imported crude oil imposes an unduly heavy demand on the country's international reserves thereby making it imperative for the government to pursue actively the exploration, development and exploitation of indigenous energy resources;
WHEREAS, while coal has been identified as a fossil fuel known to exist in mineable quantities in the country which could provide a viable energy source for some vital industries, large tracts of coalbearing lands have not been explored and mined in a manner and to an extent adequate to meet the needs of the economy;
WHEREAS, the proliferation of fragmented coal permits and leases has prevented, or deterred, the adequate and speedy exploration, development, exploitation and production of indigenous coal resources;
WHEREAS, to develop, achieve and implement a well- planned, systematic and meaningful exploration, development, exploitation and production of local coal resources, participation of the private sector with sufficient...
Login to see full content
Amends
n/a
Amended by
n/a