Non-Impairment of Pending Applications
- All pending Mineral Production Sharing Agreement (MPSA) and Financial or Technical Assistance Agreement (FTAA) applications involving forest lands or government reservations are not required to re-apply for exploration permits.
- If the FTAA grant exceeds the maximum contract area restrictions under Section 34 of R.A. 7942, applicants must divest or relinquish the excess areas in favor of the government within one year from September 13, 1996.
Special Exploration Permit and Area Permission
- A Special Exploration Permit (SEP) with limited application and activity scope may be issued by the Secretary of the DENR upon the Director's recommendation.
- SEPs are subject to terms, conditions, and pertinent provisions of Chapter VII of the IRR.
- Area Permission may also be granted by the Secretary for limited exploration in non-critical forest reserves, forest reservations, and other DENR jurisdiction areas.
Requirements for Other Areas
- For exploration activities in areas outside non-critical forest reserves and DENR jurisdiction, applicants must secure necessary area clearances or written consent from relevant agencies or parties as mandated by law.
Time Period and Financial Provisions
- The one-year period for divestment or relinquishment is deducted from the total life of the MPSA or FTAA.
- Exploration costs incurred during this period can be included as part of pre-operating expenses for cost recovery if the FTAA is approved.
Applicability and Effectivity
- The amendment applies only to FTAA/MPSA applications filed under DENR Administrative Order (DAO) 63 before the effectivity of R.A. 7942 and its Implementing Rules and Regulations.
- The amendment took effect 15 days after publication in two newspapers of general circulation.
Legal Authority and Adoption
- The amendment was issued pursuant to Section 8 of R.A. 7942 and the government’s policy to promote sustainable resource extraction.
- It was adopted on August 27, 1996, by Secretary Victor O. Ramos.