Article 60p. 60

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

1. Depreciated to the extent of not more than twice as

fast as normal rate of depreciated or depreciated at

normal rate of depreciation if expected life is ten (10)

years or less; or

2. Depreciated over any number of years between five (5)

years and expected life if the latter is more than ten (10)

years,

and

the

depreciation

thereon

allowed

as

a

deduction

from

taxable

income; Provided, that the

taxpayer notifies the Bureau of Internal Revenue at the

beginning of the depreciation period which depreciation

rate allowed by this section will be used by it.

(d) Foreign Loans and Contracts. The right to remit at the

prevailing exchange rate at the time of remittance of

such sum as may be necessary to cover principal and

interest of foreign loans and foreign obligations arising

from technological assistance contracts relating to the

performance of the coal operating contract, subject to

Central Bank regulations.

(e)

Preference

in

Grant

of

Government

Loans.

Government

financial

institutions

such

as

the

Development Bank of the Philippines, the Philippine

National

Bank,

the

Government

Service

Insurance

System, the Social Security System, the Land bank of the

Philippines and other government institutions as are

now engaged or may hereafter engage in financing on

investment operations shall, in accordance with and to

the extent allowed by the enabling provisions of their

respective

charters

or

applicable

laws, accord high

priority to applications for financial assistance submitted

by

operators

in the performance of coal operating

contracts, whether such financial assistance be in the

form of equity participation in preferred, common or

preferred convertible shares of stock, or in loans and

guarantee, and shall facilitate the processing thereof and

the release of the funds therefor. However, financial

assistance under this paragraph shall be extended only

to operators which are Philippine Nationals as the term

is defined under Republic Act No. 5186, as amended.

(f)

Entry

upon

the

sole

approval

of

the

Energy

Development Board which shall not be unreasonably

withheld of alien technical and specialized personnel

(including the immediate members of their families)

who may exercise their profession only for the operation

of the operator as prescribed in its coal operating

contract

with

the

government

under

this

Decree;

Provided, that if the employment or connection of any

such alien with the operator ceases, the applicable laws

and regulations on immigration shall apply to him and

his immediate family; Provided, further, that Filipinos

shall be given preference to positions for which they

have adequate training, and; Provided, finally, that the

operator shall adopt and implement a training program

for Filipinos along technical or specialized lines, which

program shall be reported to the Energy Development

Board.

Sec. 16-A. Entry and Use of Private Lands

a. Coal exploration, development and exploitation is

hereby declared of public use and benefit and for which

the power of eminent domain may be invoked and

exercised for the entry, acquisition and use of private

lands; Provided, that any person or entity acquiring any

option or right on such land after the execution of a coal

operating contract covering such land not be entitled to

the compensation herein provided.

b. The coal operator shall not be prevented from entry

into

private

lands

for

the

purpose

of

exploring,

developing and exploiting coal contract area, upon prior

written notification sent to, and duly received by, the

surface

owner

of

the

land

and

occupant

thereof.

However, if the surface owner of the land and occupant

thereof refuses to allow the coal operator's entry into the

land despite his receipt of the written notification, or

refuses to receive said written notification, or cannot be

found, then the coal operator shall notify the Energy

Development Board of such fact, and shall be attached

thereto a copy of the written notification.

c. In all cases mentioned in the preceding paragraph, the

coal

operator

shall

post

a

bond

with

the

Energy

Development Board in the amount to be fixed by said

Energy Development Board based on type of the land

and the value of the trees, plants and other existing

improvements

thereon which shall be the basis of

compensation of the surface owner of the land and/or

occupant thereof in the appropriated cases mentioned

in the next succeeding paragraph.

d. In the absence of an agreement between the coal

operator and the surface owner of the land and/or

occupant, the surface owner of the land and occupant

thereof shall be entitled to the following compensation;

1.

Titled

Lands.

For

the

conduct

of

exploration,

development and exploitation within lands covered

by Torrens Title or other government-recognized

titles,

the

surface

owner

shall

receive

as

compensation from the coal operator at least One

Peso (P1.00) for every ton of coal extracted on his

hand. However, in the event that the surface owner

suffers damage to his plants, trees, crops and other

improvements on his land as a direct result of the

coal operation conducted by the coal operator, the

former shall be entitled to compensation for the

value thereof that are damaged or destroyed.

2.

Untitled Lands or land with Incomplete Titles. For

the

conduct

of

exploration,

development

and

exploitation of coal within untitled lands or lands

with

incomplete

titles,

the

surface

owner

shall

receive as compensation from the coal operator at

least Fifty Centavos (P0.50) for every ton of coal

extracted on his land. However, in the event that the

surface landowner suffers damage to his plants,

trees, crops and other improvements on his land as a

direct result of operation conducted by the coal

operator,

the

former

shall

be

entitled

to

compensation

for

the

value

thereof

that

are

damaged or destroyed.

Lands with incomplete titles referred to herein shall

mean those possessory rights which can ripen into

rights of ownership registerable under the Torrens

System.

3.

Government Reserved Lands. Government reserved

lands for purposes other than mining shall be open

to a coal operating contract by filing an application

therefore

with

the

Energy

Development

Board,

subject always to compliance with pertinent laws,

rules and regulations covering such reserved lands;

Provided, that the compensation due the surface

owner shall accrue equally between the supervising

agency and of the Energy

Sec. 16-B Timber Rights. Any provision of law to the

contrary notwithstanding, the operator may cut trees or

timber within his coal contract area subject to applicable

law and to the rules and regulations of the Bureau of

Forest

Development

as

may

be

necessary

for

the

exploration, development and exploitation of his coal

contract area; Provided, that if the lands covered in the

coal contract area are already covered by existing timber

concessions, the amount of timber needed and manner

of cutting and removal thereof shall be subject to the

same rules and agreed upon by the operator and the

timber concessionaire; Provided, further, that, in case no

agreement can be reached between the operator and

the timber concessionaire, the matter shall be submitted

to the Energy Development Board whose decision shall

be final. The operator granted a timber right shall be

obligated to perform reforestation works within the coal

© 2018 Compiled by RGL

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