Exploration work obligations.
Article 47
ART. 47. Exploration work obligations.—At the begin-ning of each calendar year during the life of the concession the concessionaire shall submit to the Director of Mines a program of exploration work to be undertaken by the concessionaire within his concession during that year. He is obligated to spend in the direct prosecution of exploration work within his concession, such as topographic or geological reconnaissance; mapping or cross sectioning; geophysical surveys by magnetometer, gravimeter or seismograph; core or exploratory drilling; or any combination of the said work, the following amounts: Initial term: First year—Not less than fifty centavos per hectare per year, or fraction thereof. Second year—Not less than one peso per hectare per year, or fraction thereof. Third year—Not less than one peso and fifty centavos per hectare per year, or fraction thereof. Fourth year—Not less than two pesos per hectare per year, or fraction thereof. First extension: Fifth to seventh year—Not less than two pesos and fifty centavos per hectare per year, or fraction thereof. Second extension: Eighth to tenth year—Not less than three pesos I hectare per year, or fraction thereof. The cost of delivered materials or equipment use the exploration work shall be considered as proper expenditures for such work. The concessionaire shall give satisfactory evidence to the Government of such expenditures in accordance with the Regulations. Any amount actually spent for exploration work in excess of the minimum amount required for any year or years may be carried forward and credited to exploration work obligations required for the succeeding years during the existence of the concession. For failure to comply with the minimum work obligations in any one year as herein above stipulated, the concessionaire shall pay to the Government the difference between the minimum amount required and that actually spent for any year. Continued failure to perform the necessary exploration work within the area covered by the concession shall, in addition to the above penalty, result in the cancellation of the concession as provided for in this Act. In order to guarantee faithful compliance with the required exploration work, a bond of sufficient amount to be fixed by the Regulation, shall be posted by the conces-sionaire.