Presidential Decree No. 508 (PD 508) — Providing Guidelines for the Development and Utilization of Small or Sub-Commercial Deposits of Natural Marsh Gas or Methane Gas in the Philippines, and Granting Gratuitous Permits Therefor.
WHEREAS, natural marsh gas or methane gas in small
sub-commercial deposits abound throughout the country;
WHEREAS, the development and utilization of said natural
marsh gas or methane gas is in accordance with, the policy of the
government to develop other sources of energy;
WHEREAS, the development and utilization of these natural
marsh gas or methane gas deposits do not require huge capital
investments and highly specialized technical knowledge; and consequently
are easier to develop;
WHEREAS, the Government must open these deposits for
development and utilization and encourage their development and
utilization;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution,
do hereby decree and order as part of the law of the land the following:
SECTION 1. All small or sub-commercial natural marsh gas or
methane gas deposits found in any public or private lands, not exceeding
1000 feet in depth and not associated with crude oil deposit, within
the territorial limits of the Philippines which are within free areas,
national reserve areas, in any other areas not covered by valid and
subsisting petroleum exploration or exploitation concessions, or by
service contracts entered with the Government under Presidential Decree
No. 87, may be developed for household use or utilized for small-scale
industrial development.
SEC. 2. Any citizen of the Philippines, of legal age,
having the capacity to contract and not convicted of any offense
involving moral turpitude, or any association of individuals in the form
of partnership or corporations duly organized and constituted under the
laws of the Philippines, and at least sixty percent (60%) of the
capital of which is and shall at all times be held and owned by citizens
of the Philippines, may apply for a gratuitous permit to undertake the
development and utilization of small or sub-commercial deposits of
natural marsh gas or methane gas.
SEC. 3. An application for a gratuitous permit shall be
filed with the Director of Mines, Manila, paying therefor a filing fee
of P20.00. Upon compliance with all the requirements relative thereto, a
permit shall be issued by the Director of Mines after which the
permittee shall start the development and utilization of the gas
deposits found within the area of his permit for household use or for
small scale industrial development. A permittee shall in no case be
entitled to more than one (1) permit for every petroleum region at any
one time.
The area to be covered by a gratuitous permit application shall be
not more than twenty (20) hectares, in a block rectangular in shape,
and as much as possible the larger sides of the rectangle shall not be
more than five times the shorter sides.
SEC. 4. A permit
area may be validly covered by a subsequent petroleum exploration
concession granted under the Petroleum Act of 1949, as amended, or by
service contract entered with the Government under Presidential Decree
No. 87, but no gratuitous permit shall be issued by the Director of
Mines on an area already covered by an existing permit or lease granted
under Republic Act No. 5092, and in accordance with the rules and
regulations promulgated thereunder and on any area where natural gas or
methane gas deposits are more than 1000 feet deep or when these deposits
are associated with crude oil.
SEC. 5. The permittee shall have the right to enter any
private land covered by his permit to conduct work thereon. If,
however, the owner of such private land or its legal occupant denies him
such right, he may apply for permission to enter such land, and upon
posting such bond as may be fixed by the Director of Mines shall be
issued an order allowing him such right pending the final determination
of the proper amount that shall be paid by the permittee to the
landowner or legal occupant.
SEC. 6. The permittee shall conduct operations on the
area covered by his permit, a monthly operations of which shall be
submitted by him to the Director of Mines for record and information.
SEC. 7. The term of this permit shall be for a period of
two (2) years from the issuance thereof, renewable for another like
period upon compliance with the terms of the permit. Should production
be attained within the four (4) years period the permit may be extended
for a series of 2 years period each but in no case to exceed a total of
fourteen (14) years, if warranted by continuing gas production. Failure,
however, of the permittee to conduct operations on the area within one
(1) year shall be a cause for the cancellation of his permit.
SEC. 8. The Director of Mines is hereby authorized to
assume jurisdiction and is charged with carrying out these guidelines to
end that the utilization and development of these gas deposits shall be
duly encouraged and properly regulated.
He shall prescribe the terms and conditions of the gratuitous
permit to be issued, and the necessary application form therefor.
SEC. 9. As used herein, the following terms shall have the
following respective meanings:
Natural Marsh Gas or Methane Gas. — light, odorless,
colorless, and inflammable gaseous hydrocarbon, occurring naturally as a
product of decomposition or organic matter in marshes and mines.
Free Areas. — all lands within the territorial limits of
the Philippines excluding those submerged beneath bays, lakes,
rivers or lagoons, but which are not within the, or including, national
reserve areas, petroleum reservation, or covered by valid and existing
exploration or exploitation concessions, or petroleum drilling leases
acquired under the Petroleum Act (Act No. 2932), or of petroleum
mining claims located and held under the Act of Congress of July 1,
1902, as amended.
National Reserve Areas. — areas which have been
included in any exploration or exploitation concession but which have
been subsequently given up by the concessionaire voluntarily or in
accordance with the requirement of Article 50 and 53 of the Petroleum
Act of 1949, as amended; or areas covered by exploration or
exploitation concession which have expired or have been
cancelled; or areas which have been included within any of the two kinds
of concessions but which are found to be in excess the maximum areas
allowed by the Petroleum Act of 1949, as amended, for such concession.
Permittee. — a person, association, partnership or
corporation who is a holder of a gratuitous permit to develop and
utilize natural marsh gas or methane gas.
SEC. 10. This Decree shall take effect immediately.
Done in the City of Manila, this 16th day of July, in year of
Our Lord, nineteen hundred and seventy-four.
(Sgd.)
FERDINAND E. MARCOS
President of the Philippines
By the President:
(Sgd.)
ALEJANDRO MELCHOR
Executive Secretary
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
