Law Summary
Eligibility for Gratuitous Permits
- Permits may be applied for by Filipino citizens of legal age who have contracting capacity and no convictions involving moral turpitude.
- Associations, partnerships, or corporations organized under Philippine law with at least 60% capital owned by Filipino citizens are also eligible.
Application Procedure for Gratuitous Permits
- Applications filed with the Director of Mines in Manila, accompanied by a filing fee of P20.00.
- Permit issuance after compliance with application requirements.
- Each permittee entitled to one permit per petroleum region.
- Maximum area covered by permit is 20 hectares, in a rectangular block with specific dimensional limits.
- Permittee must commence development and utilization following permit issuance.
Restrictions and Prohibitions on Permit Issuance
- Permits cannot be issued on areas already covered by existing permits or petroleum concessions under specific legislation.
- Areas with gas deposits deeper than 1000 feet or associated with crude oil are excluded.
Right of Entry and Compensation
- Permittee may enter private lands covered by the permit to conduct development operations.
- If access is denied, permittee may obtain a court order permitting entry upon posting bond.
- Compensation to landowner or occupant to be finally determined.
Operational and Reporting Requirements
- Permittee shall conduct timely operations within the permit area.
- Monthly reports on operations must be submitted to the Director of Mines for documentation and monitoring.
Term and Renewal of Permits
- Initial permit valid for two years, renewable for another two years.
- If production is achieved, permit may be extended in two-year increments up to a maximum of 14 years.
- Failure to conduct operations within one year results in permit cancellation.
Authority and Regulatory Oversight
- Director of Mines has jurisdiction over permit issuance and enforcement.
- Responsible for prescribing terms and conditions of permits and application procedures.
- Charged with encouraging and properly regulating development and utilization.
Definitions of Key Terms
- Natural Marsh Gas or Methane Gas: Light, odorless, colorless, inflammable gas from decomposition of organic matter.
- Free Areas: Lands within the Philippines not submerged and not under existing petroleum concessions or reserved areas.
- National Reserve Areas: Previously included in concessions but relinquished or where concessions expired or cancelled.
- Permittee: Person or entity holding gratuitous permit for methane gas development.
Immediate Effectivity
- The decree took effect immediately upon issuance.