Functions of Petroleum Board.
Section 18
SEC. 18. Functions of Petroleum Board. — In accordance with the provisions and objectives of this Act, the Petroleum Board shall: Define and give public notice when applicable of the areas available for service contract. Enter into contracts herein authorized with such terms and conditions as may be appropriate under the circumstances including the grant of special allowance: Provided, however, That no depletion allowance shall be granted: Provided, further, That except as provided in Sections twenty-six and twenty-seven hereof, no contract in favor of one contractor and its affiliates shall cover less than fifty thousand nor more than seven hundred and fifty thousand hectares for on-shore areas, or less than eighty thousand nor more than one million five hundred thousand hectares for off-shore areas: Provided, finally, That in no case shall the annual net revenue or share of the Government, including all taxes paid by or on behalf of the Contractor, be less than sixty per cent of the difference between the gross income and the sum of operating expenses and Filipino participation incentive. Provide for the manner and form of the income tax payment the reimbursement of operating expenses, the payment of service fee, and payment of Filipino participation incentive allowance, if any, in the service contract. Make specific proposals to Congress for the grant of subsidy to contractors and petroleum companies at least sixty per cent of the capital of which is owned by Philippine citizens, to be derived from the revenue or share that will accrue to the Government in pursuance of this Act; Undertake intensive studies and researches on oil field practices, procedures, and policies; Promulgate such rules and regulations as may be necessary and assess charges for services rendered, to implement the intent and provisions of this Act; Appoint, discipline and remove, and determine the compensation of, its technical staff and other personnel: Provided, That positions which are highly technical or primarily confidential shall not be subject to the Civil Service Laws and rules, and of the Wage and Position Classification Office; Within four months after the close of every fiscal year, submit to the President and Legislature an annual report on its activities, with appropriate recommendation; and Generally, exercise all powers necessary or incidental to attain the objectives of this Act. TAX PROVISIONS