Article 73p. 73

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

production

or

regeneration

of

chemicals

used

in

manufacturing; the fabrication and filling of containers;

the erection of shops, warehouses, and other buildings;

the

construction

and

operation

of

communication

systems and roads within and for access to the works;

and the provision and operation of facilities for receiving,

storing, and shipping materials or products and for their

transportation within or between parts of the works to

which the concession relates.

It

shall be understood that all auxiliary works and

operations and the products thereof to which the rights

provided in this article apply, shall be for the exclusive

use

of

the

concessionaire

in

the

operation

of

his

concession or concessions subject to the limitations set

forth in article seventy-eight hereof: Provided, however,

That

all

roads

and

bridges

constructed

by

the

concessionaire except those within the compound of the

refinery, shall be available for public use, except when

otherwise

agreed

upon

between

the

Secretary

of

Agriculture

and

Natural

Resources

and

the

concessionaire.

ARTICLE 78.Utilization of refining capacity. — The holder

of a Refining Concession shall have the preferential right

to utilize his installations for the refining or manufacture

of petroleum produced by him from his concession, but

is obligated to utilize any remaining capacity for the

refining

or

manufacture,

pro

rata,

of

such

other

petroleum as may be offered by others for refining or

manufacture, and to charge without discrimination such

rates as may have been approved by the Secretary of

Agriculture and Natural Resources.

When a refining concessionaire is also an exploitation

concessionaire, the Secretary of Agriculture and Natural

Resources may require that the royalty in kind due to the

Government

from

the

same

concessionaire,

or

an

equivalent amount of petroleum of the Government

from other sources, be refined or manufactured, pro

rata, with that owned by the refining concessionaire, up

to the capacity of the installation; and in all cases

petroleum owned by the Government shall have priority

over all other petroleum for the utilization of the refining

or manufacturing capacity in excess of that required to

refine or manufacture petroleum owned by the refining

concessionaire.

Procedure for the determination of refining rates and

the conditions governing the refining of petroleum

other than that owned by the refining concessionaire

shall conform to the Regulations.

ARTICLE 79.Petroleum produced under this Act shall be

given refinery preference. — Any established refinery

may be required by the Secretary of Agriculture and

Natural Resources to refine crude petroleum produced

in the Philippines in preference over any imported crude

petroleum.

ARTICLE 80.Term of Refining Concession. — The term of

a Refining Concession shall not exceed twenty-five years

counted from the date of its issuance, renewable for

another

twenty-five

years,

upon

application

of

the

concessionaire filed prior to the expiration of the original

term.

ARTICLE 81.Right to establish a refinery may be ceded

but

concessionaire

may

be required to establish a

refinery under certain conditions. — An exploitation

concessionaire may assign, transfer, or cede his right to

establish a refinery in the Philippines granted him under

article eleven of this Act in favor of any person qualified

under the provisions of this Act, upon prior written

permission of the Secretary of Agriculture and Natural

Resources. However, the Secretary of Agriculture and

Natural Resources may, after due study of the economic

and technical problems involved on the part of the

exploitation

concessionaire and of the need of the

Philippines for a suitable refinery, require an exploitation

concessionaire,

after

he

shall

have

developed

a

recoverable petroleum reserve of one hundred forty

million barrels or more in any one or more of his

concessions

granted

under

this

Act,

capable

of

maintaining a production rate of ten thousand barrels a

day

for

at

least

fifteen

years,

to

establish

in

the

Philippines a refinery of a capacity which shall be not

less than ten thousand barrels per day.

ARTICLE 82.Renunciation of Refining Concession. — Any

Refining Concession may be renounced at any time,

except when the undertaking to build a refinery is

imposed upon an Exploitation Concessionaire under the

provisions of articles nineteen and eighty-one of this Act,

in which case, the renunciation shall be subject to the

prior written approval of the Secretary of Agriculture and

Natural Resources.

Renunciation extinguishes all rights granted by the

concession, but does not relieve the concessionaire from

making any payments due to the Government.

CHAPTER VII Pipeline Concession

ARTICLE 83.Application for Pipe Line Concession. —

Application for Pipe Line Concession shall be filed with

the

Director

of

Mines

in

accordance

with

article

twenty-eight of this Act.

When

the

granting

of

a

Pipe

Line

Concession

is

obligatory

upon

the

Government by reason of the

provisions of article eleven, and provided, that all the

requirements of this Act and of the Regulations have

been complied with, an application filed shall operate to

confer

upon

the

concessionaire

all

the

rights

and

obligations which are conferred by this Act through such

a concession, pending the execution of the contract of

concession.

Pipe Line Concession may also be granted to any person

legally qualified under this Act, who is not a holder of an

Exploitation or Refining Concession, upon his filing with

the Director of Mines an application therefor.

ARTICLE

84.Pipe

Line

application

fee. — When an

application for a Pipe Line 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 shall be returned to the

applicant

less

such

amount as corresponds to the

expenses incurred by the Government in connection

with

the

consideration,

as

determined

by

the

Regulations.

ARTICLE

85.Rights

conveyed

under

Pipe

Line

Concession. — A pipe line concessionaire acquires the

non-exclusive right to transport petroleum, by means of,

and through, a pipe line or system of pipe lines, between

the sources of production and/or refining and the places

defined in the Pipe Line Concession, in accordance with

the provisions of this Act and the Regulations.

This concession right includes the construction and

operation

of

pipe

lines,

pumping

or

compressing

stations, storage tanks, gas tanks, power plants, shops,

storehouses

and

other

buildings, water supply and

communication

systems,

roads,

and

such

other

equipment

or

facilities

as

may be needed for the

purpose of the concession.

All such auxiliary works and operations and the products

thereof

shall

be

for

the

exclusive

use

of

the

concessionaire

in

the

operation

of

his

concession:

Provided,

however,

That

all

roads

and

bridges

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