Question & AnswerQ&A (DOE DEPARTMENT CIRCULAR NO. DC 2011-08-0008)
Republic Act No. 7638, known as the Department of Energy Act of 1992, mandates the DOE to exercise supervision and control over all government activities related to energy projects and to establish and administer programs for the storage of energy resources.
Batas Pambansa Bilang 33, as amended by Presidential Decree No. 1865, defines and penalizes prohibited acts inimical to national interest involving petroleum products, and mandates the DOE to issue rules and regulations to enforce its provisions.
Impounding is authorized for LPG cylinders found to be underfilled, filled by unlicensed plants or without authorization, and LPG cylinders without tare weight or required seal after sealing requirements.
An abandoned cylinder refers to an impounded LPG cylinder not claimed within ten (10) working days from receipt of the Release Order or where the violator or owner has given written notice expressly abandoning the cylinder in favor of the DOE.
The brand owner is a person or entity whose permanent mark appears on the cylinder, regardless of possession and compliance, unless there is unequivocal proof that the cylinder was sold or transferred to an unrelated third party under a written instrument.
A serviceable cylinder may have defects but can still be repaired or re-qualified by a DTI-accredited repairer or re-qualifier. An unserviceable cylinder is one that cannot be repaired or re-qualified due to defects such as corrosion, unauthorized repair, illegal manufacture, or lack of permanent markings.
Impounded LPG cylinders must be stored in secure, covered facilities complying with Bureau of Fire Protection safety standards, segregated into serviceable and unserviceable, properly labeled with case details, and stored away from residential areas as per local zoning.
Serviceable impounded LPG cylinders are sent for testing, decanting, repair, and requalification before being released to the brand owner or violator. All rehabilitation expenses are charged to the brand owner or violator.
Release requires a Release Order from the Director of Legal Services and payment of administrative fines, storage fees, and rehabilitation expenses, supported by the certified true copies of final decisions or court orders and identification of the violator or owner.
After the finality of the administrative or criminal case, abandoned LPG cylinders are forfeited in favor of the government and disposed of according to established rules, including destruction if unserviceable or returned to brand owners if serviceable under certain conditions.
The DOE Special Disposal Committee (DSDC) is constituted to manage the disposal of forfeited LPG cylinders, including appraisal, conducting public auctions or negotiated sales, and approving destruction where applicable.
The public auction is by sealed bidding, announced in newspapers and DOE website, with a minimum publication period, opportunities for inspection, COA and Ombudsman representation, awarding to the highest bidder, and approval by the DOE Secretary.
Disposal modes include public auction, negotiated sale if public auction fails, and destruction or condemnation when cylinders have no commercial value or are beyond repair.
Unserviceable LPG cylinders are immediately decanted and scrapped following applicable Philippine National Standards and existing rules, and may be released to owners upon proper documentation and payment.