Coal Land Act Amendments RA 740

The Secretary of Agriculture and Natural Resources may lease unreserved, unappropriated coal lands in blocks of 50 to 1200 hectares.
Economic development and exploitation of coal deposits guide the leasing process.
Limitations include a maximum of six coal lease blocks per applicant per province and an aggregate limit of 1200 hectares nationwide.
Only Filipino citizens aged 21 or older, or entities with at least 60% Filipino ownership, are qualified lessees.

Leases are granted for up to 25 years and may be renewed for another 25 years with conditions.
Assignments or subletting require Secretary's consent, limited to qualified transferees.
Applications must be prosecuted diligently with surveys completed within a year or risk waiver.
Lessees must comply with operational and waste-prevention regulations issued by the Secretary.
Royalty payments of at least 10 centavos per ton and annual rentals are required.
Rentals may be credited against royalties and specific tax obligations.

Lessees may surrender leases or portions thereof and apply for additional leases following original lease procedures.
The total number of leases per province remains capped at six, and aggregate area at 1200 hectares nationwide.

Lessees of adjoining blocks may consolidate leases up to a maximum of 1200 hectares with approval.
All lessees must be compliant with government obligations to consolidate.

Mining coal without a valid lease, revocable permit, or license is punishable under theft or qualified theft provisions.
Convictions include penalties under the Revised Penal Code and mandatory compensation for damages.
Corporate officers are liable for wrongful acts committed by their organizations.

The Secretary may issue limited licenses or permits for prospecting and mining small tracts (up to 4 hectares) for local fuel supply.
Not more than three such licenses may be granted to any qualified applicant.
Licenses are for up to 10 years with a royalty of 50 centavos per ton.

Applications covering private lands must have written consent from landowners.
Disputes or refusals lead to court intervention to fix compensation and grant permission.
Owners with Torrens title on leased coal land receive 5% of royalties from coal extracted.
Disputes regarding coal leases or permits initially addressed by the Director of Mines with appeal options to the Secretary.
Further appeals may be brought to the appropriate court within thirty days.