Article 62p. 62

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

(e)

Accelerated

Depreciation.

At

the

option

of

the

taxpayer

and

in

accordance

with

the

procedure

established by the Bureau of Internal Revenue, fixed

assets used by the industry in carrying out the program

of conversion to coal burning may be:

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

fast as normal rate of depreciation 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.

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

prevailing exchange rate at the time of remittance such

sum as may be necessary to cover interest and principal

of foreign loan and foreign obligations arising from

technological

assistance

contracts

relating

to

the

implementation of the program of conversion to coal

burning subject to Central Bank regulation.

(g)

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 such other government institutions as

are now engaged or may hereafter engage in financing

of 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 application for financial assistance submitted

by

enterprises/industries

requiring

funding

to

implement the program of conversion to coal burning,

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 shall be extended only under this paragraph

to

industry

converting

to

coal burning which is a

Philippine

National

as

this

term

is

defined

under

Republic Act No. 5186, as amended.

The foregoing incentives to enterprises/industries which

will convert their existing oil fired plants and facilities to

make the same adaptable for coal burning shall be

administered

and

implemented

by

the

Board

of

Investments created under Republic Act No. 5186, also

known as the Investment Incentives Act, as amended.

The Board of Investments shall have the power to

process and approved, under such terms and conditions

as it may deem necessary, plans for conversion to coal

burning and applications for availment of the foregoing

incentives. It shall promulgate such rules and regulations

as may be necessary to implement the intent and

provisions of this section.

Section 18. Implementing Agency. Except as otherwise

provided in Section 17 hereof, the Energy Development

Board, created pursuant to Presidential Decree No. 910,

in addition to the powers, duties and functions under

existing laws, shall be charged with carrying out the

provisions of this Decree and shall be vested with the

authority

to

promulgate

rules

and

regulations

implementing thereof.

Section 19. Separability Clause. Should any provision of

this Decree be held unconstitutional, no other provision

hereof shall be effected thereby.

Section

20.

Repealing

Clause.

The

provisions

of

Presidential Decree No. 463, otherwise known as the

"Mineral Resources Development Decree of 1974" and

other laws insofar as they deal, relate or affect the

exploration, exploitation and administration of coal lands

are

hereby

repealed.

Furthermore,

all

laws, decree,

executive

orders,

administrative

orders,

rules,

and

regulations, or parts thereof in conflict or inconsistent

with any provision of this Decree are hereby repealed,

revoked, modified or amended accordingly.

Section

21.

Effectivity. This Decree shall take effect

immediately upon approval.

Done in the City of Manila, this 28th day of July, in the

year of Our Lord, nineteen hundred and seventy-six.

RA No 387 | Petroleum Act of 1949

As amended by RA 3098, 4304, 4889

AN

ACT

TO

PROMOTE

THE

EXPLORATION,

DEVELOPMENT, EXPLOITATION, AND UTILIZATION OF

THE PETROLEUM RESOURCES OF THE PHILIPPINES; TO

ENCOURAGE

THE

CONSERVATION

OF

SUCH

PETROLEUM

RESOURCES;

TO

AUTHORIZE

THE

SECRETARY

OF

AGRICULTURE

AND

NATURAL

RESOURCES

TO CREATE AN ADMINISTRATION UNIT

AND A TECHNICAL BOARD IN THE BUREAU OF MINES;

TO APPROPRIATE FUNDS THEREFOR; AND FOR OTHER

PURPOSES

CHAPTER I General Provisions

ARTICLE 1.Short Title of Act. — The short title of this Act

shall be "Petroleum Act of 1949."

ARTICLE 2.Definition of terms. — When used in this Act,

the following terms shall, unless the context otherwise

indicates, have the following respective meanings:

(a)

"Petroleum"

shall

include

any

mineral

oil,

hydrocarbon gas, bitumen, asphalt, mineral wax, and all

other similar or naturally associated substances; with the

exception of coal, peat, bituminous shale, and/or other

stratified mineral fuel deposits.

(b)"Crude oil" means oil in its natural state before the

same

has

been

refined

or

otherwise

treated,

but

excluding water and foreign substances.

(c) "Natural gas" means gas obtained from boreholes

and wells and consisting primarily of hydrocarbon.

(d)

"Government"

means

the

Government

of

the

Philippines.

(e)"State" means the Republic of the Philippines.

(f)"Permittee," "concessionaire" or "contractor" means a

person to whom a permit, concession, or contract, as the

case may be, has been granted or awarded under the

provisions of this Act, his successors and assigns.

(g)"Person" includes a natural person, corporation, or

partnership.

(h)A "barrel" is equivalent to 158.98 liters or 42 U.S.

gallons.

(i)All measurements of distances, width, length, areas,

depth and volume, and weight shall be in the system

designated by the Secretary of Agriculture and Natural

Resources. (Amendments to R.A. No. 387 (Petroleum Act

of 1949), Republic Act No. 3098, [June 17, 1961])

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