Cancellation of concession for falsehood or omission in application.
ART. 89. Cancellation of concession for falsehood or omission in application.—The statements made in the application or made in support thereof, shall be considered as conditions and essential parts of the concession that may be granted by virtue of such application, and any falsehood in those statements or omission of facts which may alter, change, or affect, substantially the facts set forth in said statements may cause the cancellation of the lease granted.
Other causes for cancellation of concession.
ART. 90. Other causes for cancellation of concession.—
(a) Exploration Concessions may be cancelled under
any of the following causes:
1. For failure of the concessionaire to perform the work
obligations required by article forty-seven of this Act for two consecutive years; and
2. For failure to pay for two consecutive years the ex-ploration tax due thereon, as required by article forty-nine of this Act.
(b) Exploitation Concessions may be cancelled under any of the following causes:
1. For failure of the concessionaire to perform the exploitation work obligations as required under the provisions of articles sixty and sixty-one of this Act, for two con-secutive years;
2. For suspending production operations for more than six months without prior written approval of the Secretary of Agriculture and Natural Resources as provided for in article sixty-two of this Act;
3. For failure to pay for two consecutive years the an-nual exploitation tax due thereon, as required by article sixty-four of this Act;
4. For failure to deliver or pay to the Government its royalty within one year from the date such royalty becomes due.
(c) Refining and Pipe Line Concessions may be cancelled for failure of the concessionaire to begin the construction of a refinery and pipe line, as the case may within one year from the date of the issuance of such concessions.
Procedure for cancellation.
ART. 91. Procedure for cancellation.—Before any concession is cancelled for cause or causes mentioned in this Act, the concessionaire shall first be notified in writing of such cause or causes, and shall be given an opportunity to be heard, and to show cause why the concession shall not be cancelled. If upon investigation, the Secretary of Agriculture and Natural Resources shall find the concessionaire to be in default, the latter shall be given an opportunity to correct such default. If the concessionaire shall continue to be so in default for a period of ninety days from the date of the decision finding him in default, the concession may be cancelled in an order to that effect, copy of which shall be furnished to the concessionaire, and which order shall become final forty-five days from receipt thereof, unless the concessionaire decides to take advantage of the provisions of article one hundred seven of this Act, in which case the concession shall continue to be in force until, and if, a competent court decides otherwise.
Extinction of rights.
ART. 92. Extinction of rights.—Rights acquired by virtue of a concession granted under this Act shall become extinguished upon the expiration of its term including the extentions or renewals thereof, if any, or upon the cancel-lation or renunciation of such concession.
In the event of such extinction of rights, any sum payable to the Government by the concessionaire and then unpaid shall become due and payable forthwith, the property of the concessionaire shall be disposed of in accordance with the provisions of article ninety-three of this Act, and the concession contract shall be surrendered to the Secretary of Agriculture and Natural Resources.
ART. 93. Title to areas, property, and equipment after renunciation, cancellation, or expiration of a concession.—
(a) Upon the renunciation, cancellation, or expiration of an Exploration or Exploitation Concession, the area covered thereby shall automatically become part of the National Reserve.
(b) Upon the renunciation, cancellation, or expiration of an Exploration Concession, or of an Exploitation Concession within the first term of twenty-five years or within the first fifteen years of its renewal, if any, as provided for in this Act, the title rights to all apparatus, materials equipment, supplies and other personal properties, all works buildings and other facilities and structures which the concessionaire places on the land under the terms of the concession, including but not limited to drilling and all other tools, rigs, pipe, casing, drilling pipe, warehouse stocks, automotive, aviation and marine equipment, shall remain vested in the concessionaire, and the concessionaire shall have the right to remove and export the same at any time within one year counted from the date the concessionaire shall cease to retain the right to use the lands subject to the concession on which the said property is located: Provided, however, That the Government shall acquire title to all properties not so removed at the end of the said one-year period: Provided, further, That the Government shall have the exclusive right of option, but not the obligation, to buy from the concessionaire any or all of the properties which the concessionaire has the right to remove under this paragraph within ninety days from the date the concession is renounced, cancelled or terminated: And provided, finally, That the concessionaire shall maintain said properties, pending decision of the Government to purchase the same, in as good condition as the condition of said properties on the date of the said renunciation, cancellation or termination of the concession, ordinary wear and tear and damage caused by circumstances beyond the control o the concessionaire excepted. The price of the said properties shall be fixed by agreement between the parties b in case of any disagreement as to the price, the same shall be submitted to a board of appraisal of three members be appointed, one, by the Secretary of Agriculture and Natural Resources, another by the concessionaire and third, by the two appraisers appointed by the two parties, which board shall determine the price to be paid by Government for the said properties. Roads, bridges, airports, wharves, and casings in the ground shall become the property of the Government without any payment.
(c) In case of renunciation, cancellation or termination of the Exploitation Concession after the fifteenth year from the date of the renewal, if any, of the concession, all the property mentioned in the preceding paragraph shall become the property of the Government without payment or indemnification to the concessionaire.
(d) The above provisions do not apply to any refinery built by the concessionaire as said refinery shall continue to be the exclusive property of the owner thereof even after the termination of the concession: Provided, That roads and bridges constructed by the concessionaire shall become the property of the Government.
