Article 76p. 76

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

to geological and geophysical data, well and production

records, petroleum engineering studies, computation of

petroleum

reserve

and

to

prepare

therefrom

such

reports,

articles,

and

bulletins

as

may

be

deemed

necessary for the proper information of the Government

and/or the public.

ARTICLE 96.Funds for salaries and expenses. — For the

expenses, including salaries and wages of the personnel,

of the Administration Unit and of the Technical Board

authorized to be created in accordance with article

ninety-five of this Act, a sum of two hundred thousand

pesos is hereby appropriated from the funds of the

National Treasury not otherwise appropriated. Hereafter

the same shall be included in the General Appropriation

Act.

CHAPTER X Final Provisions

ARTICLE

97.Bond

for

performance.

—

Prior

to

the

issuance

of

a concession, except the Non-Exclusive

Exploration Permit, the concessionaire shall post a bond

in favor of the Government in the sum to be fixed by the

Regulations and with surety or sureties satisfactory to

the Secretary of Agriculture and Natural Resources,

conditioned

upon

the

faithful

performance

by

the

concessionaire of any or all of his obligations under the

concession.

ARTICLE 98.Share of private landowners. — In case an

Exploration or Exploitation Concession covers, in whole

or in part, private lands title to which has been finally

adjudicated by a court of competent jurisdiction, the

exploration or exploitation tax due to the Government

for the area of such private lands, shall be reduced by ten

per cent of the same, which reduction shall be the

landowner's share. In the case of lands title to which has

not been finally adjudicated all the exploration and

exploitation tax for said areas due to the Government

shall be paid to the Collector of Internal Revenue or his

duly

authorized

deputy,

subject

to

the

rule

and

regulations of the Bureau of Internal Revenue. In any

case, the right of private owner to recover ten per cent

share when and if his title shall have been finally

adjudicated in his favor shall be respected and for such

purpose the Government shall hold the same until such

title has been so finally adjudicated.

ARTICLE

99.National

emergency

measures.

—

Concessions granted under this Act shall be subject to

the rights of the Government, in case of and during the

period of war or national emergency, to pass such lawful

measures, as it may consider necessary, requisitioning

for its use and/or restricting the sale or disposal of all

products produced under the terms of the concessions

and/or interfering with the free movement thereof, upon

just compensation paid to the concessionaires.

ARTICLE

100.Disposition

of

substances

other

than

petroleum. — In the event that substances other than

petroleum,

as

defined

in

article two, should occur

naturally

and

be

produced

with

petroleum,

the

exploitation concessionaire may separate such other

substances at his own expense; Provided, That in the

event that any such other substances be sold, the value

thereof shall be taken into account in fixing the value of

petroleum for the purpose of liquidating royalty in cash

as provided in article sixty-eight: And provided, further,

That

if

the

Secretary

of

Agriculture

and

Natural

Resources elects to receive such other substances in

kind

the

concessionaire

shall, upon request of the

Secretary of Agriculture and Natural Resources, separate

and deliver to the Government such substances through

the facilities of the concessionaire and at the expense of

the Government.

ARTICLE 101.Helium rights reserved. — The Government

reserves the right to take all helium from any gas

produced by the concessionaire and the right to erect,

maintain,

and

operate

on

lands

covered

by

the

concession, all reduction works and other equipment

necessary for the extraction of helium. The Secretary of

Agriculture and Natural Resources shall prescribe the

necessary rules and regulations governing the delivery

to the Government of gas containing helium for the

extraction thereof.

ARTICLE 102.Work obligations, taxes, royalties not to be

changed. — Work obligations, special taxes and royalties

which are fixed by the provisions of this Act or by the

concession for any of the kinds of concessions to which

this Act relates, are considered as inherent on such

concessions after they are granted, and shall not be

increased or deceased during the life of the concession

to which they apply; nor shall any other special taxes or

levies

be

applied

to

such

concessions,

nor

shall

concessionaires

under

this

Act

be

subject

to

any

provincial, municipal, or other local taxes or levies; nor

shall

any

sales

tax

be

charged

on

any petroleum

produced

from

the

concession

or

portion

thereof,

manufactured by the concessionaire and used in the

working of his concession. All such concessionaires,

however, shall be subject to such taxes as are of general

application,

in

addition

to

taxes

and

other

levies

specifically provided in this Act.

ARTICLE 103.Customs duties. — During the first five years

following

the

granting

of

any

concession,

the

concessionaire may import free of customs duty, all

equipment, machinery, material, instruments, supplies

and accessories.

No exemption shall be allowed on goods imported by

the concessionaire for his personal use or that of any

others; nor for sale or for re-export; and if any goods on

which exemption has been allowed be thus used or

disposed of, the concessionaire is obliged to make a

report

to

the

Secretary

of

Agriculture and Natural

Resources to that effect and to pay such import duty as

is due.

ARTICLE 104. Exploration of petroleum. — No export tax

shall

be

levied

upon

petroleum

produced

from

exploitation concessions granted under this Act as well

as on equipment, machinery, materials, instruments,

supplies and accessories imported and used exclusively

in

the

furtherance

of

the

operations

of

the

concessionaire under this Act if exported any time after

such bona fide use thereof. As to equipment, materials,

instruments, supplies and accessories mentioned in this

article,

in

order

to

qualify

for

the

exemption,

the

concessionaire

shall

notify

the

Secretary

in writing

before the date of the export and the failure to do so

shall constitute a forfeiture of the exemption from the

export

tax

which

shall

become

promptly

payable.

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

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

ARTICLE 105.Compulsory collection. — In the event of

failure by a concessionaire to pay any tax or royalty due

under the provisions of this Act within six months of the

date upon which they are due, the Government may

resort to compulsory collection under the provisions of

applicable laws.

ARTICLE 106.Inspection of operations and examination of

books and accounts. — The Secretary of Agriculture and

Natural Resources and the Director of Mines shall have

authority to send their delegates or representatives to

inspect

any

operations of the concessionaire at all

reasonable times and to examine all the books and

accounts pertaining to operations or conditions related

to payment of taxes and royalties under this Act, and to

carry out any other inspections authorized by law.

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