Providing Guidelines For The Development And Utilization Of Small Or Sub-Commercial Deposits Of Natural Marsh Gas Or Methane Gas In The Philippines, And Granting Gratuitous Permits Therefor

Case Overview and Summary

Summary of 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 Philippines, and Granting Gratuitous Permits Therefor

- Allows development and utilization of small or sub-commercial natural marsh gas or methane gas deposits in the Philippines for household use or small-scale industrial development. (Section 1)
- Defines "small or sub-commercial" as deposits not exceeding 1000 feet in depth and not associated with crude oil deposits. (Section 1)
- Allows Filipino citizens, partnerships, or corporations with at least 60% Filipino ownership to apply for a gratuitous permit to develop and utilize these gas deposits. (Section 2)
- Application for a gratuitous permit must be filed with the Director of Mines in Manila, with a filing fee of P20.00. (Section 3)
- Permit area shall not exceed 20 hectares, in a rectangular block shape, with the longer side not more than 5 times the shorter side. (Section 3)
- A permittee can only hold one permit per petroleum region at any given time. (Section 3)
- Permit areas may be covered by subsequent petroleum exploration concessions or service contracts, but no permit shall be issued on areas already covered by existing permits, leases, or where gas deposits are deeper than 1000 feet or associated with crude oil. (Section 4)
- Permittee has the right to enter private land covered by the permit, subject to posting a bond if denied entry by the landowner or legal occupant. (Section 5)
- Permittee must conduct operations on the permit area and submit monthly operation reports to the Director of Mines. (Section 6)
- Permit term is 2 years, renewable for another 2 years. If production is attained within 4 years, the permit may be extended for 2-year periods up to a maximum of 14 years. Failure to conduct operations within 1 year can lead to permit cancellation. (Section 7)
- The Director of Mines has jurisdiction over the implementation of these guidelines, including prescribing permit terms and conditions. (Section 8)
- Defines key terms such as "natural marsh gas or methane gas", "free areas", "national reserve areas", and "permittee". (Section 9)