Article 70p. 70

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

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

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

ARTICLE 54.Map of the exploitation areas. — In the

exercise of the right of exploration, the concessionaire

shall prepare at any time during the exploration period,

or during extensions, if there by any, the general map of

the

respective

exploration

block,

showing

the

exploitation parcel or parcels he may have selected, in

preparation to obtaining the Exploitation Concession.

This map shall be prepared from an accurate transit and

chain survey or from an aerial photographic survey, or

the combination of both, and shall be prepared in

accordance with existing regulations governing such

kinds of survey issued by the Director of Mines, and shall

show the location of the boundary monuments of the

exploration block and of the different exploitation parcel

or parcels within the block and the area and true

bearings and distances of the sides thereof. Copies of

this

map

shall

accompany

the

application

for

Exploitation Concession.

ARTICLE 55.Application fee for Exploitation Concession.

— When an application for an Exploitation Concession is

filed, the applicant shall pay an application fee of two

thousand

pesos,

in

the

manner

prescribed

by the

Regulations. In the event that no concession is granted

corresponding to such application the sum paid shall be

returned

to

the

applicant

less

such

amount

as

corresponds

to

the

expenses

incurred

by

the

Government in connection with the consideration of the

application as determined by the Regulations.

ARTICLE 56.Areas available for exploitation. — Areas

covered by Exploration Concession held by the applicant,

subject to the provisions of article fifty-three of this Act,

and areas within the National Reserve, are available for

exploitation.

ARTICLE 57.Size and shape of exploitation concession. —

The exploitation concession shall be granted in parcel or

parcels, rectangular in shape as much as possible, except

when

contiguous

with

the seas, bays, lakes, rivers,

lagoons, roads, or with other existing concessions of

irregular boundaries; or when otherwise approved by the

Secretary of Agriculture and Natural Resources.

The

area

of any exploitation parcel which may be

acquired under a single concession shall not be more

than fifty thousand hectares nor less than one thousand

hectares, and in no case shall the greater dimension of

the rectangle be more than five times the other, nor

shall the total area of such parcel or parcels so selected

for exploitation concession or concessions within an

exploration concession exceed one-half of the total area

of the exploration block: Provided, That the Secretary of

Agriculture and Natural Resources may, upon hearing

and order, grant exception to the minimum area and

shape provisions of this article when reasonably required

by

adjoining

concessions,

settlement

of conflict, or

geographical

or

geological

feature

that

render

it

impractical

to

conform

with

such

requirement.

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

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

ARTICLE 58.Maximum exploitation area that may be

acquired. — No person shall be allowed to hold more

than

two

hundred

and

fifty

thousand

hectares

of

exploitation area in any one petroleum region, nor more

than five hundred thousand hectares in the whole

territory of the Philippines.

ARTICLE

59.Rights

conveyed

under

exploitation

concession. — An exploitation concessionaire, his heirs

and assigns, has the exclusive right, during the term of

the concession, to drill within the boundaries projected

vertically downward of the parcel or parcels covered by

his concession, to extract within the boundaries thereof

the substances referred to in this Act, to utilize them

once they are extracted, and to do all acts authorized

within the scope of exploitation, as defined in Article

fifty-one this Act, subject to the provisions of this Act

and the regulations that may be issued by the Secretary

of Agriculture and Natural Resources in accordance with

powers conferred upon him in this Act. casia

"In case roads and/or bridges are constructed by the

concessionaire in connection with the operation of his

exploitation concession, the same shall be available for

public use when such use shall not interfere with or

destroy the use thereof by the concessionaire in his

operation as may be agreed upon between the Secretary

of

Agriculture

and

Natural

Resources

and

the

concessionaire:

Provided,

however,

That

the

concessionaire shall have no responsibility or liability to

the government or to the public for the condition,

construction, or maintenance of such roads and/bridges.

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

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

ARTICLE

60.Exploitation

work obligations. — At the

beginning of each calendar year during the life of the

concession,

the

concessionaire

shall

submit

to

the

Director

of

Mines,

a

program

of

exploitation

work

proposed to be undertaken by the concessionaire within

his concession during that year.

The concessionaire shall commence drilling operations

within

one

year

from

the

date

the

Exploitation

Concession is granted within the area covered by the

concession and shall continue diligently such drilling

operations in accordance with good oil field practice. He

shall be obligated to develop and bring into production

the exploitation area granted to him and any discovery

areas

that

he

may

find,

and

to

continue

such

development and production until at least the domestic

consumption

requirements

of

petroleum

in

the

Philippines,

determined

in

consultation

with

the

Secretary of Agriculture and Natural Resources, are met

by

the

total

net

production

from

all

sources

of

indigenous

production

in

the

Philippines,

if

the

petroleum deposit discovered by the concessionaire

shall permit such development in accordance with good

petroleum engineering practice.

ARTICLE 61.Exploitation work obligations in two or more

Exploitation Concessions in the same petroleum region.

—

A

person

holding

two

or

more

Exploitation

Concessions in the same petroleum region, may be

permitted

to

concentrate

the

exploitation

work

obligations required for all the Exploitation Concessions

held by him in the same petroleum region, within any

one of his Exploitation Concession, as long as the drilling

operations are diligently conducted with a creditable

expenditure and in accordance with a drilling program:

Provided, however, That no Exploitation Concession shall

remain for a period of more than five consecutive years

without drilling operations. Such work may be credited

only upon prior written approval of the Secretary of

Agriculture and Natural Resources.

ARTICLE 62.Production operations. — Once production is

established in an Exploitation Concession, production

operations on the concession may not be suspended for

more than six months without prior written approval of

the Secretary of Agriculture and Natural Resources.

Suspension of operations shall in no case be authorized

for more than two years at any one time, except in case

of force majeure.

ARTICLE

63.Existing

Petroleum

Drilling

Leases

and

petroleum

mining

claims

may

come

under

the

provisions of this Act. — Holders of Petroleum Drilling

Leases under the provisions of the Petroleum Act (Act

No. 2932) and of petroleum mining claims located and

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