CREATING AN ENERGY DEVELOPMENT BOARD, DEFINING ITS POWERS AND FUNCTIONS, PROVIDING FUNDS, THEREFOR, AND FOR OTHER PURPOSES

• Number: Presidential Decree No. 910
• Sections: 13

Preamble

WHEREAS, there is need to intensify, strengthen, and

consolidate government efforts relating to the exploration, exploitation

and development of indigenous energy resources vital to economic

growth;

WHEREAS, it is imperative that government accelerate the

pace of, and focus special attention on, energy exploration,

exploitation and development in the light of encouraging results in

recent oil exploration and of worldwide developments affecting our

continued industrial progress and well-being; and

WHEREAS, it is essential in the interest of efficiency,

economy, and effectiveness to integrate and coordinate through a single

governmental entity the function and development of indigenous extracted

energy resources.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers vested in me by the Constitution,

do hereby order and decree the following to be part of the law of the

land:

Section 1 Declaration of Policy.

SECTION 1. Declaration of Policy.—It is declared

policy of the State to achieve self-reliance in the country's energy

requirements primarily through the intensified and coordinated

exploration, exploitation and development of indigenous energy resources

in order to accelarate overall economic growth.

Section 2

SEC. 2. Creation of the Energy Development Board. To

implement the aforesaid policy, there is hereby created an Energy

Development Board, hereinafter referred to as the Board, which shall be

composed of the Secretary of Finance, Secretary of Industry, Secretary

of Justice, Secretary of National Defense, Secretary of Economic

Planning, Secretary of Natural Resources, and the Chairman of the

Philippine National Oil Company. The President of the Philippines shall

designate the Chairman of the Board from among its members.

The officials next in rank to the members of the Board, as

designated by them, shall serve as alternate members. They shall attend

the meetings of the Board whenever their principals are absent or their

positions are vacant.

Section 3 Powers and Functions of the Board.

SEC. 3. Powers and Functions of

the Board.—The Board shall have the following powers and functions:

Formulate policies and implement and coordinate all activities

of the government relative to the exploration,

exploitation and development, and extraction of energy

resources including fossil fuels such as petroleum, coal, natural

gas and gas liquids; geothermal resources; nuclear fuel resources; and

other less conventional existing and potential forms of indigenous

energy resources;

Establish and administer a comprehensive and

integrated program for the exploration, exploitation,

development, and extraction of fossil and nuclear fuels,

geothermal resources, and other less conventional forms of

indigenous extracted energy resources;

Undertake by itself or through other arrangements such

as service contracts, the active exploration, exploitation,

development, and extraction of energy resources in selected

areas and/or in government reservation;

Regulate all activities relative to the exploitation,

development and extraction of fossil and nuclear fuels and geothermal

resources and where necessary, prescribe and collect fees in the

exercise of such powers.

Assess, review and provide direction to energy research and

development programs including identification of sources of energy and

determination of their commercial feasibility for development;

Exercise the powers and functions of the abolished Petroleum

Board transferred to the Board under Section 5 of this Decree;

Coordinate, review and approve plans and programs of the

Power Development Council which is hereby attached to

the Board.

Promulgate such rules and regulations as may be necessary to

implement the objectives and provisions of this Decree; and

Exercise all powers necessary or incidental to attain the

objectives of this Decree.

Section 4 Officials and Employees of the Board.

SEC. 4. Officials and Employees of the Board.—The

Board shall be assisted by an Executive Director appointed by the Board.

Any provision of law to the contrary notwithstanding the Board shall

appoint the officers and employees of the Board, fix their compensation,

allowances and benefits, their working hours and such other conditions

of employment as it may deem proper, grant them leaves of absence under

such regulations as it may promulgate, discipline and/or remove them for

cause, and established and maintain a recruitment and merit system.

Section 5 Abolition of the Petroleum Board.

SEC 5. Abolition of the Petroleum Board.—The

Petroleum Board is hereby abolished and its powers and functions are

transferred to the Board together with applicable funds and

appropriations, records, equipment, property, and such personnel as may

be necessary.

Section 6

SEC. 6. Transfer of the Functions of the Bureau of

Mines and/or the Department of Natural Resources—The powers and

functions of the Bureau of Mines and/or the Department of Natural

Resources relative to the exploration, development, and administration

of coal bearing lands as provided for in Presidential Decree No. 463 an

Act No. 2719, as amended are transferred to the Board. The powers and

functions of the Bureau of Mines and/or the Department of Natural

Resources under Republic Act No. 5092 and other laws relating to the

promotion and regulation of the exploration, exploitation and

development of geothermal energy, natural gas and methane gas are

likewise transferred to the Board. Such transfer shall include

applicable records, equipment, property, funds and appropriations, and

such personnel as may be necessary.

Section 7 Philippine National Petroleum Center.

SEC. 7. Philippine National Petroleum Center.—The

Philippine National Petroleum Center shall be under the supervision and

control of the Board.

Section 8 Appropriations.

SEC. 8. Appropriations.—The sum of Five Million

Pesos out of any available funds from the National Treasury is hereby

appropriated and authorized to be released for the organization of the

Board and its initial operations. Henceforth fund sufficient to fully

carry out the functions and objectives of the Board shall be

appropriated every fiscal year in the General Appropriations Act.

All fees, revenues and receipts of the Board from any and all

sources including receipts from service contracts and agreements such as

application and processing fees, signature bonus, discovery bonus,

production bonus; all money collected from concessionaires, representing

unspent work obligations, fines and penalties under the Petroleum Act

of 1949; as well as the government share representing royalties,

rentals, production share on service contracts and similar payments on

the exploration, development and exploitation of energy resources, shall

form part of a Special Fund to be used to finance energy resource

development and exploitation programs and projects of the government and

for such other purposes as may be hereafter directed by the President.

Section 9 Reports.

SEC. 9. Reports.—The Board shall, within three

months after the end of every fiscal year, submit its annual report to

the President. The annual report shall include an energy development

plan insofar as the exploration exploitation, development, and

extraction of indigenous extracted energy resources are concerned. It

shall likewise submit such periodic or other reports as may be required

of it from time to time.

Section 10 Separability Clause.

SEC. 10. Separability Clause.—Should any

provision of this Decree be held unconstitutional, no other provision

hereof shall be affected thereby.

Section 11 Repealing Clause.

SEC. 11. Repealing Clause.—All laws, decrees,

executive orders, administrative orders, rules or regulations

inconsistent herewith are hereby repealed, amended or modified

accordingly.

Section 12 Effectivity.

SEC. 12. Effectivity.—This Decree shall take

effect immediately.

Done in the City of Manila, this 22nd day of March, in the

year of Our Lord, nineteen hundred and seventy-six.

(Sgd.)

FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.)

JACOBO C. CLAVE

Presidential Executive Assistant