QuestionsQuestions (PRESIDENTIAL DECREE NO. 1442)
To promote the exploration and development of geothermal resources to reduce dependence on imported energy and accelerate development of an identified viable, untapped domestic energy source.
Directly by the Government, subject to existing private rights; or indirectly through service contracts awarded through public bidding or concluded through negotiation with technically and financially capable domestic or foreign contractors.
A fee not exceeding forty percent (40%) of the balance of the gross value of geothermal operations after deducting necessary expenses incurred in the operations.
The execution of activities and operations under the service contract—including the work program and accounting procedures—must be subject to direct supervision of the Government through the Bureau of Energy Development.
The approval of the Secretary of Energy is required for service contracts.
It includes (a) products of geothermal processes (indigenous steam, hot water, hot brines); (b) steam and other gases, hot water, and hot brines resulting from fluids artificially introduced into geothermal formations; (c) heat or other associated energy found in geothermal formations; and (d) any by-product derived from them.
Public lands, government geothermal reservations (including presently administered or unappropriated areas), areas covered by exploration permits or leases under Republic Act No. 5092; and also private lands or other lands subject to agricultural, mining, petroleum, or other rights or devoted to purposes other than geothermal exploration or use—subject to legal conditions.
In the absence of voluntary agreement, upon application by the contractor to the Court of First Instance of the province or the municipal court of the municipality where the land is situated, and upon posting of the necessary bond as fixed by the court; entry is allowed by the court subject to payment of reasonable compensation.
They must enter into service contracts for the areas covered by their permits or leases within six (6) months from the effective date of PD No. 1442.
The permits and leases are deemed automatically cancelled, and the area covered reverts back to the State.
They are deemed withdrawn and of no effect as of the effective date of PD No. 1442.
Exemption from payment of tariff duties and compensating tax on importation of machinery, equipment, spare parts, and all materials required for geothermal operations, subject to conditions imposed by the Director of Energy Development.
It must pay twice the amount of the taxes and duties not paid because of the exemption granted.
Upon sole approval of the Bureau of Energy Development (not unreasonably withheld), the contractor may bring in alien technical and specialized personnel (including immediate family) who may exercise their professions solely for the operations of the contractor as prescribed in the service contract.
Subject to Central Bank regulations, repatriation of capital investment and remittance of earnings derived from service contract operations, including sums necessary to cover principal and interest of foreign obligations incurred for geothermal operations.
The Director is authorized to promulgate implementing rules and regulations, subject to approval by the Secretary of Energy.
Provisions of Republic Act No. 5092 and other inconsistent laws, rules, and regulations are repealed to the extent of inconsistency.