Article 75p. 75

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

within the first fifteen years of its renewal, if any, as

provided for in this Act, the title rights to all apparatus,

materials,

equipment,

supplies

and

other

personal

properties, all works, buildings and other facilities and

structures which the concessionaire places on the land

under the terms of the concession, including but not

limited to drilling pipe, warehouse stocks, automotive,

aviation and marine equipment, shall remain vested in

the concessionare, and the concessionaire shall have the

right to remove and export the same at any time within

one year counted from the date the concessionaire shall

cease to retain the right to use the lands subject to the

concession

on

which

the

said

property

is

located:

Provided, however, That the Government shall acquire

title to all properties not so revoked at the end of the

said

one-year

period:

Provided,

further,

That

the

Government shall have the exclusive right of option, but

not the obligation, to buy from the concessionaire any or

all of the properties which the concessionaire has the

right to remove under this paragraph within ninety days

from the date the concession is renounced, cancelled or

terminated:

And

provided,

finally,

That

the

concessionaire shall maintain said properties, pending

decision of the Government to purchase the same, in as

good condition as the condition of said properties on the

date of the said renunciation, cancellation or termination

of the concession, ordinary wear and tear and damage

caused by circumstances beyond the control of the

concessionaire excepted. The price of the said properties

shall be fixed by agreement between the parties but in

case of any disagreement as to the price, the same shall

be submitted to a board of appraisal of three members

to be appointed, one, by the Secretary of Agriculture and

Natural Resources, another by the concessionaire and

the third, by the two appraisers appointed by the two

parties, which board shall determine the price to be paid

by

the

Government

for the said properties. Roads,

bridges, ports, wharves, and casings in the ground shall

become the property of the Government without any

permanent.

(c)In case of renunciation, cancellation or termination of

the Exploitation Concession after the fifteenth year from

the date of the renewal, if any, of the concession, all the

property mentioned in the preceding paragraph shall

become

the

property

of

the

Government

without

payment or indemnification to the concessionaire.

(d)The above provisions do not apply to any refinery built

by the concessionaire as said refinery shall continue to

be the exclusive property of the owner thereof even after

the termination of the concession: Provided, That roads

and bridges constructed by the concessionaire shall

become the property of the Government.

Article 93-A.Delay in the payment of tax or royalty. —

Where the amount of tax or royalty imposed by this Act

or concession contract is not paid on the due date, there

shall be collected as part of the said tax or royalty a

surcharge of one per centum thereof per month from

the due date until they are paid.

Article 93-B.Illegal obstruction to government officials. —

Any

person who illegally prevents of obstructs the

Secretary of Agriculture and Natural Resources or the

Director of Mines or any of their representatives, in the

performance of their duties under the provisions of this

Act, shall be punished by a fine of not more than three

hundred pesos or by imprisonment for not more than six

months or both.

Article 93-C.Illegal obstruction to concessionaires. — Any

person who illegally prevents or obstructs the holder of

any concession granted under this Act in his operation

shall be punished by a fine of not more than three

hundred pesos or by imprisonment for not more than six

months or both.

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

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

CHAPTER IX Officials in Charge and Duties

ARTICLE 94.The Secretary of Agriculture and Natural

Resources

as

executive

officer. — The Secretary of

Agriculture and Natural Resources shall be the executive

officer charged with carrying out the provisions of this

Act, through the Director of Mines who shall act under

his

immediate

supervision

and

control.

As

such

executive

officer,

the

Secretary

of

Agriculture

and

Natural Resources shall be vested with the authority to

prescribe rules and regulations and issue orders which

he may find necessary to effectuate the provisions and

purposes of this Act.

ARTICLE 95.Authority of Secretary of Agriculture and

Natural Resources to create necessary offices. — The

Secretary

of

Agriculture

and

Natural

Resources

is

authorized

to

create

an Administration Unit and a

Technical Board, both under the Director of Mines.

The Administration Unit shall be under the supervision

and control of the Director of Mines and shall be charged

with

the

administration

of

petroleum

lands,

the

preparation of forms and regulations, the settlement of

disputes, and the enforcement of the provisions of this

Act with the advice of the Technical Board.

The

Technical

Board

shall

consist

of

at

least

one

petroleum engineer and one petroleum geologist, with

the Director of Mines ex-officio chairman thereof. The

said Board shall have, among others, the following

functions:

(a)To act in an advisory or consultative capacity on

different

technological

matters

relative

to

the

administration and disposition of petroleum lands under

this Act, and on petroleum operation and industry;

(b)To

look

into

the

qualifications

of

applicants

for

concessions under this Act;

(c)To

recommend

whether or not lands within the

National Reserve Areas shall be offered for concession

and in case it is so offered, to study all applications for

concessions within said areas with a view to determining

the relative merits thereof and to submit to the Secretary

of Agriculture and Natural Resources its findings and

recommendations thereon;

(d)To determine the relative merits of the conflicting

applications for concessions covering lands within Free

Areas;

(e)To check on the performances of concessionaires and

to determine whether the obligations imposed by this

Act and the Regulations promulgated thereunder are

being complied with;

(f)To

determine

the

maximum

efficient

rate

of

withdrawal from each well or oil field;

(g)To

supervise

production

operations

to

insure

conservation

of

reservoir

energy

and the optimum

recovery from the petroleum deposits in the different oil

fields;

(h)In general, to study ways and means to insure the

efficient administration of petroleum lands and the

effective enforcement of the provisions of this Act and

the Regulations; and

(i)To keep and maintain a complete record as possible on

all phases of exploration, development and production of

petroleum in the Philippines, including but not limited

© 2018 Compiled by RGL

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