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Mining Laws > Presidential Decree 1174 > Flashcards

Presidential Decree 1174 Flashcards

1
Q

What law is amended by Presidential Decree No. 1174?

A

Presidential Decree No. 972 (Coal Development Act of 1976)

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2
Q

Who was the president of the Philippines when Presidential Decree No. 1174 was issued?

A

Ferdinand E. Marcos

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3
Q

In what year was the original Coal Development Act enacted?

A

1976

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4
Q

What is the purpose of the Coal Development Act of 1976?

A

To encourage the private sector to explore, develop, and exploit indigenous coal resources.

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5
Q

What sector is encouraged to participate in the coal development program?

A

The private sector

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6
Q

Why was it necessary to amend Presidential Decree No. 972, according to the decree?

A

To provide additional incentives and address delays in securing surface rights.

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7
Q

What type of incentives were granted to coal operators under this decree?

A

Financial, technical, and managerial incentives

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7
Q

What is the consequence if a coal permit is not converted by the new deadline?

A

Automatic cancellation of coal permits and leases

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8
Q

What is the deadline extension granted for converting coal permits and leases into coal operating contracts?

A

The deadline for concluding coal operating contracts was extended to January 27, 1978.

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8
Q

What was the new deadline for coal permits under the amended decree?

A

January 27, 1978

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8
Q

What date was the original deadline for concluding coal operating contracts?

A

July 27, 1977

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9
Q

What happens if operating expenses exceed the reimbursement limit in a given year?

A

The unrecovered expenses can be recovered from future operations.

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9
Q

Which government body is responsible for managing the coal development program?

A

The Energy Development Board

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10
Q

What special allowance is granted to Philippine citizens or corporations in coal contracts?

A

Up to 30% of the balance of the gross income after deducting operating expenses.

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10
Q

What percentage of the gross income is reimbursed to coal operators for their operating expenses?

A

Ninety percent (90%) of the gross proceeds

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11
Q

What is the special allowance percentage for coal operating contracts granted to holders of valid permits?

A

Up to 40% of the balance of the gross income after deducting operating expenses.

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12
Q

How much of a corporation must be owned by Filipino citizens to be considered a “Philippine corporation”

A

At least sixty percent (60%) of the capital owned by Filipino citizens.

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13
Q

What is the minimum participating interest required for Philippine citizens in a coal operating contract to receive a special allowance?

A

Forty percent (40%) participation.

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14
Q

What is the minimum expenditure per block for exploration under the coal operating contract?

A

One million pesos (P1,000,000.00) per block annually.

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15
Q

Under what condition can the minimum expenditure requirement be reduced for open-pit mining?

A

If the area is suitable for open-pit mining, the minimum expenditure can be reduced to P200,000.00 per block.

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16
Q

What power is invoked for coal exploration to allow entry into private lands?

A

The power of eminent domain.

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16
Q

What must coal operators do if they fail to comply with the work obligations of their contract?

A

They must pay the government the amount they should have spent.

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17
Q

How many holes must be drilled per block as part of the exploration period?

A

Thirty (30) holes per block.

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18
Q

What compensation is due to surface owners of titled lands for coal extracted from their property?

A

One Peso (P1.00) per ton of coal extracted.

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19
Q

What compensation is due to surface owners of untitled lands for coal extraction?

A

Fifty centavos (P0.50) per ton of coal extracted.

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20
Q

What compensation do surface owners receive for damage to their crops or trees during coal operations?

A

Compensation for the value of damaged crops or improvements.

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21
Q

What must coal operators post to ensure compensation for surface owners?

A

A bond with the Energy Development Board.

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21
Q

Which government body must a coal operator notify if surface owners refuse entry to their land?

A

The Energy Development Board.

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22
Q

What is the legal compensation for coal extracted from government-reserved lands?

A

Compensation is split equally between the supervising agency and the Energy Development Board.

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23
Q

Which agency disburses compensation for coal extracted from government-reserved lands?

A

The Energy Development Board and the supervising agency.

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24
Q

What rights are coal operators granted for cutting timber in their contract area?

A

Timber rights for cutting within their coal contract area.

25
Q

Who must agree on timber cutting if the land is already under a timber concession?

A

The operator and the timber concessionaire must agree on timber cutting.

26
Q

Who is responsible for reforestation within the coal contract area?

A

The coal operator.

27
Q

What happens if a coal operator and a timber concessionaire cannot agree on timber cutting terms?

A

The Energy Development Board resolves the dispute.

28
Q

What rights related to water are coal operators entitled to?

A

Water rights necessary for exploration, development, and exploitation.

29
Q

Which government office manages water rights for coal operators?

A

The Director of the Bureau of Public Works.

30
Q

What happens to existing water rights if new coal operations commence?

A

Existing water rights will not be impaired.

31
Q

Under which Presidential Decree are the penal provisions for coal operations found?

A

Presidential Decree No. 463, Mineral Resources Development Decree of 1974.

32
Q

What is the title of Presidential Decree No. 463?

A

Mineral Resources Development Decree of 1974

33
Q

What happens to coal permits that are not converted to coal operating contracts by January 27, 1978?

A

The permits and leases are automatically canceled.

34
Q

What happens if an operator spends more than the required annual expenditure on exploration?

A

The excess can be credited against future expenditure requirements.

35
Q

What is the minimum expenditure for open-pit mining operations?

A

P200,000.00 per block.

36
Q

How much must be spent annually on direct exploration work per coal block?

A

P1,000,000.00 per block.

37
Q

How are excess exploration expenditures applied in future contract years?

A

The excess can be credited for future contract years.

38
Q

What is the title of Section 7 of Presidential Decree No. 972, as amended?

A

Existing Permittees/Leaseholders

39
Q

Who approves the special operating permits during the contract extension period?

A

The Energy Development Board

40
Q

What is the minimum special allowance percentage for contracts with Filipino participation?

A

Up to 20% of the gross income after expenses.

41
Q

What percentage of capital in a Philippine corporation must be owned by Filipinos?

A

Sixty percent (60%).

41
Q

What legal concept allows coal operations on private lands?

A

Eminent domain

42
Q

Who has the final say in resolving disputes between coal operators and timber concessionaires?

A

The Energy Development Board

43
Q

What chapter of Presidential Decree No. 463 applies to coal operations?

A

Chapter XIV of Presidential Decree No. 463.

44
Q

What must happen if the landowner cannot be found or refuses to receive notice?

A

Notify the Energy Development Board and attach a copy of the written notification.

44
Q

Who must be notified before coal operators enter private lands?

A

A written notification must be sent to the surface owner.

45
Q

What is the compensation rate for coal extracted from titled lands?

A

P1.00 per ton of coal extracted.

45
Q

What is the compensation rate for coal extracted from untitled lands?

A

P0.50 per ton of coal extracted.

46
Q

Who qualifies for compensation under the Torrens system?

A

Lands with possessory rights under the Torrens System.

47
Q

What does Section 10 of Presidential Decree No. 1174 address?

A

Special allowance for coal operators.

47
Q

What is the compensation process for damage to crops or improvements on private lands?

A

Compensation for damaged crops, trees, and improvements.

48
Q

What does Section 16-A of Presidential Decree No. 1174 address?

A

Entry and use of private lands.

49
Q

What section of the law governs timber rights in coal contract areas?

A

Section 16-B of Presidential Decree No. 1174.

50
Q

What section of the law governs water rights for coal operators?

A

Section 16-C of Presidential Decree No. 1174.

51
Q

Which law’s penal provisions apply to coal operations under Presidential Decree No. 1174?

A

Chapter XIV of Presidential Decree No. 463.

52
Q

Who is responsible for determining reforestation requirements in coal contract areas?

A

The coal operator, as regulated by the Bureau of Forest Development.

53
Q

What is the effectivity date of Presidential Decree No. 1174?

A

July 27, 1977

54
Q

What is the maximum special allowance for Philippine corporations in coal contracts?

A

Up to 30% of the balance of gross income.

54
Q

What happens to coal operating contracts that are not in compliance with the law by the deadline?

A

They are automatically canceled.

54
Q

Which body regulates the distribution of water rights in coal contract areas?

A

The Director of the Bureau of Public Works.

54
Q

What percentage of the gross proceeds can be used to reimburse operating expenses?

A

Ninety percent (90%) of the gross proceeds.

55
Q

What government agency must be involved in any timber cutting in coal contract areas?

A

The Bureau of Forest Development

55
Q

Who issues the final approval of water rights applications for coal contracts?

A

The Director of the Bureau of Public Works.

56
Q

What conditions apply to coal operators’ use of private lands for exploration?

A

They must compensate surface owners for any coal extracted or damage caused.

57
Q

What is the process for notifying private landowners of intended coal operations?

A

Send a written notification to the surface owner and occupant.

58
Q

Who manages the resolution of disputes over water rights in coal contract areas?

A

The government reserves the right to regulate water rights.

59
Q

What laws or rules must be complied with when conducting coal operations in government-reserved lands?

A

The coal operator must comply with pertinent laws, rules, and regulations.

60
Q

Who has the authority to grant special allowances under coal operating contracts?

A

The Energy Development Board.

Mining Laws (14 decks)

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