Coal Development Act of 1976

The country is divided into coal regions with systematic exploration and exploitation programs.
Technical and financial development of coal operations are prioritized.
Special programs address social constraints in regions with many small coal miners.

Government through the Energy Development Board (EDB) shall undertake coal exploration, development, and production.
May enter into coal operating contracts.
Covers public lands, unreserved coal lands, existing leases, government reservations, properties of government-owned corporations.

Coal regions subdivided into blocks of approximately 1,000 hectares based on Philippine Coast and Geodetic Survey maps.
Blocks measure 2 minutes latitude by 1.5 minutes longitude.

EDB designates areas available for coal contracts.
Contracts awarded either by public bidding or negotiation with qualified applicants.
Limit set to no more than 15 blocks per person in a region.

Existing valid holders of coal permits or leases granted preference for contracts.
Must consolidate contiguous areas into coal units within six months.
Compliance with existing obligations required.
Deadline for contracts extended to January 27, 1978, with no further extensions.
Non-compliant permits deemed cancelled and land reverts to the State.

Existing permit holders organizing into coal units may receive up to 40% additional fee.
Contracts with Filipino citizens or corporations granted additional allowances ranging 20%-30% depending on Filipino participation.
Philippine corporation defined as 60% Filipino-owned capital.

Annual minimum expenditure for exploration set at P1 million per block; reduced to P200,000 for areas suitable for open pit mining.
Required minimum drilling of 30 holes per block unless justified otherwise.
Exploration period is 2 years, extendable by 2 years if obligations met.
Development and production period ranges 10-20 years renewable in 3-year increments.
Equipment on land becomes government property if not removed within one year after contract ends.
Operators must comply with labor, health, safety, and ecological laws.

Exemption from taxes except income tax.
Duty-free importation of machinery, spare parts subject to conditions.
Accelerated depreciation options for assets.
Right to remit foreign loan payments subject to central bank regulations.
Priority access to government financial institutions for loans and equity.
Entry of alien technical personnel permitted with conditions, preference given to Filipinos through training programs.

Coal operations declared a public use to allow eminent domain for private land entry and use.
Operators must notify surface owners and occupants; disputes go to EDB.
Compensation for titled lands: P1.00 per ton of coal extracted plus value of damages.
Compensation for untitled lands: P0.50 per ton plus damages.
Government reserved lands subject to applicable laws and cooperative compensation.

Operators may cut timber as necessary, subject to forest regulations and agreements with concessionaires.
Required to perform reforestation.
May obtain water rights for operations following existing water laws.

Penal provisions of the Mineral Resources Development Decree apply with references adapted to this decree and EDB.

Tax exemptions on imported machinery and spare parts necessary for conversion for 7 years.
Tax credits on domestic purchase of equipment.
Net operating loss carryover allowed for six years.
Income tax exemption on capital gains from sale of assets used in conversion provided reinvested.
Accelerated depreciation similar to operators.
Right to remit foreign loan payments.
Priority government financial assistance to qualified Philippine nationals.
Incentives administered by the Board of Investments.

EDB vested with authority to implement the Decree and promulgate rules.
Provisions of repealed laws inconsistent with this Decree superseded.
Separability clause ensures validity of remaining provisions if any part is invalidated.