Section 2May 17, 1990, Sec./Art. 2

Application of the Fund shall be subject to the following conditions:

(1) That the Fund shall be used to reimburse the oil companies for: (a) cost increases of imported crude oil and finished petroleum products resulting from foreign exchange rate adjustments and/or increases in world market prices of crude oil; (b) cost underrecovery incurred as a result of fuel oil sales to the National Power Corporation (NPC); and (c) other cost underrecoveries incurred as may be finally decided by the Supreme Court;

(2) That the return on investment of the oil companies does not exceed twelve percent (12%); and

(3) That no amount of the Petroleum Price Standby Fund shall be used to pay any oil company which has an outstanding obligation to the Government without said obligation being offset first, subject to the requirements of compensation or offset under the Civil Code.