Article 69p. 69

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

units, and/or when exploratory drilling is shown to be

necessary

by

satisfactory

geophysical

survey,

a

moratorium on work obligations for a period of two

concession years from the date of the approval of this

Act.

The

term "exploratory drilling" shall mean the

drilling of wells suitable to the production of petroleum

and does not include drilling wells suitable only for

stratigraphic information. (Amendments to R.A. No. 387

(Petroleum Act of 1949), Republic Act No. 3098, [June 17,

1961]) ]

ARTICLE 48.Work obligations on two or more exploration

blocks within any one sedimentary basin. — In case two

or

more

exploration

blocks

held

by

the

same

concessionaire are in the same sedimentary basin, the

total amount of work obligations for exploration required

therefor in any concession year during the initial term of

four years and its extensions may be spent anywhere

within the sedimentary basin where such exploration

blocks or any portion thereof are located as if said blocks

are covered by a single concession. Any amount spent in

excess of the minimum required in any concession year

for any of the said concessions herein referred to, may, at

the election of the concessionaire, be credited against

exploration work obligations in the same year for other

concessions in the same sedimentary basin, or carried

forward and credited against future exploration work

obligations on any of the concession herein referred to:

Provided, That, in the event such excess expenditure is

carried forward to the succeeding year or years and

credited

against

the

work

obligations

for

other

concessions the concessionaire shall be obligated to

continue exploration operations in each of the said other

concessions to the extent of twenty-five per centum of

the minimum amount of work obligations required in

any

concession

year.

Failure

to

comply

with

this

obligation shall be considered as non-compliance with

the provisions of this Act.

However,

a

concessionaire

holding

two

or

more

exploration concessions may, upon previous approval of

the Secretary of Agriculture and Natural Resources thru

the

recommendation

of

the

Director

of

Mines,

concentrate the performance of his exploration work

obligations

required

to be performed under Article

forty-seven hereof on each of the said concessions held

by the said concessionaire by drilling exploratory wells in

any one of them whether or not they are located in the

same sedimentary basin: Provided, That such approval

shall only be given when at least fifty per centum of the

total area of all the concessions held by the same

concessionaire had already been covered by geological

and/or geophysical investigations and the same had

already been completed and report thereon submitted

to

the

satisfaction

of

the

Director

of

Mines.

And,

provided, further, That the concessionaire has complied

with

all

obligations

as

to

all

said

concessions.

(Amendments to R.A. No. 387 (Petroleum Act of 1949),

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

ARTICLE 49.Annual exploration tax. — Each holder of an

Exploration

Concession

shall

pay

during the whole

period

of

such

concession

and

its

extension

or

extensions if any, an annual exploration tax as follows:

Initial term:

First year — Not less than five centavos per hectare per

year, or fraction thereof.

Second and third year — Not less than seven and

one-half

centavos per hectare per year, or fraction

thereof.

Fourth year — Not less than ten centavos per hectare per

year, or fraction thereof.

First extension:

Fifth to seventh year — Ten centavos per hectare per

year, or fraction thereof.

Second extension:

Eighth to tenth year — Twelve and one-half centavos per

hectare per year, or fraction thereof. hereby repealed

(Repealing Article 49 of R.A. No. 387 (Petroleum Act of

1949), Republic Act No. 4304, [June 19, 1965])

ARTICLE 50.Renunciation of areas covered by Exploration

Concession. — The holder of an Exploration Concession

may, at any time, renounce the whole or any part of the

total area covered by his concession: Provided, That, in

case of partial renunciation, the portion retained shall be

not less than twenty thousand hectares, unless the same

is contiguous to another exploration block or blocks held

by the same concessionaire, in which case, the total area

of all the contiguous blocks thus retained for exploration

shall be not less than twenty thousand hectares.

CHAPTER V Exploitation Concession

ARTICLE 51.Definition of Exploitation. — "Exploitation"

means

all

work

within

the

area

embraced

by

an

Exploitation Concession that have for their object the

production of petroleum within such area, including, but

not restricted to, drilling and operating wells, providing

and operating pumping and storage facilities; pipe lines

and other such work and facilities as are useful for the

purpose

of

making

petroleum

available

for

sale,

manufacture or refining within or for shipment from

such area; but does not include any operation which is a

part of manufacturing or refining, or any work outside

such area which are a part of a pipe line or other special

transportation system.

ARTICLE 52.Application for Exploitation Concession. —

Application for Exploitation Concession shall be filed

with the Director of Mines in accordance with the

provisions

of

article

twenty-eight

of

this

Act.

The

Regulations shall prescribe the form and contents of

application for Exploitation Concession.

ARTICLE

53.

Application

for

exploitation

concession

covering areas within exploration concession. — An

exploration concessionaire, at any time during the life of

his concession, including any extension thereof, may

select for exploitation purposes one or more parcels

from the area covered by his exploration concession.

Upon application and fulfillment of all the requirements

of this Act, and provided that the total area of such

parcel or parcels so selected from any one exploration

block shall not exceed one-half of the area of such block,

an

exploitation

concession

covering

such

parcel or

parcels, shall be granted to such applicant. Such parcels

may be selected by the applicant anywhere within the

exploration block, whether contiguously or separately:

Provided, That any parcel or parcels so selected and

applied for shall be charged against the total area to

which

the exploration concessionaire is entitled for

exploration.

Provided that all the requirements of this Act and the

regulations have been complied with, an application for

exploitation concession filed as provided for in this

article shall, pending the issuance of an exploitation

concession covering the areas for which application has

been made, operate to confer upon the concessionaire

all the rights and obligations which are conferred by this

Act

through

an

exploitation

concession:

Provided,

further, That an exploitation concession may also be

granted to any person who, without being a holder of an

exploration concession, discovers and registers with the

Bureau of Mines in accordance with Article sixty-five

hereof

any

natural

deposit

or seep or natural gas

© 2018 Compiled by RGL

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