Presidential Decree 1174 Flashcards
What law is amended by Presidential Decree No. 1174?
Presidential Decree No. 972 (Coal Development Act of 1976)
Who was the president of the Philippines when Presidential Decree No. 1174 was issued?
Ferdinand E. Marcos
In what year was the original Coal Development Act enacted?
1976
What is the purpose of the Coal Development Act of 1976?
To encourage the private sector to explore, develop, and exploit indigenous coal resources.
What sector is encouraged to participate in the coal development program?
The private sector
Why was it necessary to amend Presidential Decree No. 972, according to the decree?
To provide additional incentives and address delays in securing surface rights.
What type of incentives were granted to coal operators under this decree?
Financial, technical, and managerial incentives
What is the consequence if a coal permit is not converted by the new deadline?
Automatic cancellation of coal permits and leases
What is the deadline extension granted for converting coal permits and leases into coal operating contracts?
The deadline for concluding coal operating contracts was extended to January 27, 1978.
What was the new deadline for coal permits under the amended decree?
January 27, 1978
What date was the original deadline for concluding coal operating contracts?
July 27, 1977
What happens if operating expenses exceed the reimbursement limit in a given year?
The unrecovered expenses can be recovered from future operations.
Which government body is responsible for managing the coal development program?
The Energy Development Board
What special allowance is granted to Philippine citizens or corporations in coal contracts?
Up to 30% of the balance of the gross income after deducting operating expenses.
What percentage of the gross income is reimbursed to coal operators for their operating expenses?
Ninety percent (90%) of the gross proceeds
What is the special allowance percentage for coal operating contracts granted to holders of valid permits?
Up to 40% of the balance of the gross income after deducting operating expenses.
How much of a corporation must be owned by Filipino citizens to be considered a “Philippine corporation”
At least sixty percent (60%) of the capital owned by Filipino citizens.
What is the minimum participating interest required for Philippine citizens in a coal operating contract to receive a special allowance?
Forty percent (40%) participation.
What is the minimum expenditure per block for exploration under the coal operating contract?
One million pesos (P1,000,000.00) per block annually.
Under what condition can the minimum expenditure requirement be reduced for open-pit mining?
If the area is suitable for open-pit mining, the minimum expenditure can be reduced to P200,000.00 per block.
What power is invoked for coal exploration to allow entry into private lands?
The power of eminent domain.
What must coal operators do if they fail to comply with the work obligations of their contract?
They must pay the government the amount they should have spent.
How many holes must be drilled per block as part of the exploration period?
Thirty (30) holes per block.
What compensation is due to surface owners of titled lands for coal extracted from their property?
One Peso (P1.00) per ton of coal extracted.
