(REPEALED
BY PRESIDENTIAL DECREE NO. 972)
WHEREAS, mineral production is a major support of the national economy,
and therefore the intensified discovery, exploration, development and
wise utilization of the country's mineral resources are urgently needed
for national development.
WHEREAS, the existence of large undeveloped mineral areas and the
proliferation of small mining claims deter modern development of the
country's mineral resources and urgently require well-planned
exploration, development and systematic exploitation of mineral lands
to accelerate production and to bolster the national economy.
WHEREAS, effective and continuous mining operations require
considerable outlays of capital and resources, and make it imperative
that persons possessing the financial resources and technical skills
for modern exploratory and development techniques be encouraged to
undertake the exploration, development and exploitation of our mineral
resources;chanroblesvirtualawlibrary
WHEREAS, the foregoing objectives cannot be achieved within the
shortest possible time without removing the deficiencies and
limitations of existing laws and improving the same in order to provide
for a modernized administration and disposition of mineral lands and to
promote and encourage the development and exploitation thereof. chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
issue this Decree revising Commonwealth Act No. 137 otherwise known as
the Mining Act, as amended, as follows:cralaw:red
CHAPTER I
TITLE AND DEFINITIONS
Section 1. Short Title. — This Decree shall be known
and may be cited as the "Mineral Resources Development Decree of 1974".
Section 2. Definition of Terms. — As used in and for
the purpose of this Decree, the following terms, whether in the
singular or plural, unless the context indicates otherwise, shall have
the following meanings:cralaw:red
(a) "State" means the Republic of the Philippines.
(b) "President" means the President of the Republic
of the Philippines.
(c) "Government" means the Government of the Republic
of the Philippines.
(d) "Secretary" means the Secretary of Natural
Resources.
(e) "Director means the Director of Mines.
(f) "Minerals" means all naturally occurring
inorganic substances in solid, liquid or any intermediate state
including coal. Soil which supports organic life, sand and gravel,
guano, petroleum, geothermal energy and natural gas are included in
this term but are governed by special laws.
(g) "Mineral Deposit" means a natural deposit or
accumulation of minerals.
(h) "Mineral Lands" are those lands in which minerals
exist in sufficient quantity and grade to justify the necessary
expenditures in extracting and utilizing such minerals. chanroblesvirtualawlibrary
(i) "Quarry Resources" means any common stone or
other common mineral substances as the Director may declare to be
quarry resources such as, but not restricted to, marl, marble, granite,
volcanic cinders, basalt, tuff and rock phosphate, Provided they
contain no metal or metals or other valuable minerals in economically
workable quantities.
(j) "Exploration" is the examination and
investigation of lands supposed to contain valuable minerals, by
drilling, trenching, shaft sinking, tunneling, test pitting and other
means, for the purpose of probing the presence of mineral deposits and
the extent thereof.
(k) "Development" refers to steps necessarily taken
to reach an ore body or mineral deposit so that it can be mined.
(l) "Exploitation" means the extraction and
utilization of mineral deposits.
(m) "Mining" or "to mine" means to extract, remove,
utilize minerals, and include operations necessary for that purpose.
(n) "Qualified person" a Filipino citizen, of legal
age with capacity to contract, or a corporation or partnership
registered with the Securities and Exchange Commission at least 60% of
the capital of which is owned by Filipino citizens.
(o) "Lessee" may include a leaseholder, claim owner
or operator as the context of the provisions of this Decree may
indicate.
(p) "Regulations" means the rules and administrative
orders promulgated by the Secretary to implement the provisions of this
Decree, or issued by the Director as to such matters as may be
delegated to him by the Secretary.
CHAPTER II
OWNERSHIP OF MINERAL LANDS AND MINERAL
DEPOSITS
Section 3. State Ownership of Mineral Deposits. — All
mineral deposits in public or private lands within the territorial
limits of the Philippines whether found in, on, or under the surface of
dry lands, beds of creeks, rivers, lakes, or other submerged lands
within the territorial waters or on the continental shelf or its
analogue in an archipelago seaward from the shores of the Philippines
which are not under the jurisdiction of other countries, belong to the
State, inalienably and imprescriptively, and the administration,
disposition and exploitation thereof shall be governed by this Decree
and by rules and regulations promulgated thereunder and other laws.
Section 4. Minerals Excluded from other Rights to
Lands. — The ownership or the right to use public or private lands
whether exposed or submerged, for agricultural, logging, industrial,
commercial, residential, petroleum exploration and/or exploitation or
purposes or any purpose other than mining, does not include the
ownership of, nor the right to develop, exploit or utilize, the mineral
deposits found in, on or under the surface of such lands, except with
respect to quarry resources as provided for this Decree.
Section 5. Mineral Deposits Open to Location and
Lease. — Subject to any existing rights or reservations, all valuable
mineral deposits in public land including timber or forest land as
defined in Presidential Decree No. 389, otherwise known as the Forestry
Reform Code or in private land not closed to mining location, and the
land which they are found, shall be free and open to prospecting,
occupation, location and lease.
CHAPTER III
MINERAL RESERVATIONS
Section 6. Establishment and Reversion of Mineral
Reservations. — Upon the recommendation of the Secretary, based on the
reports submitted by the Director, the President may set aside and
establish an area of the public domain as a mineral reservation and
prescribe the terms and conditions for its disposition and operation,
or may also alter or modify the boundaries of any mineral reservation
from time to time or revert any mineral reservation to the public
domain without prejudice to any prior subsisting rights.
Section 7. Existing Claims in Reservation. — Whenever
lands are reserved for purposes other than mining, the rights of the
claimowners or lessees or valid mining claims existing within the
reservation at that time of its establishment shall not be prejudiced
or impaired.
Section 8. Exploration and Exploitation of Reserved
Lands. — When lands within reservations, which have been established
for purposes other than mining, are found to be more valuable for their
mineral contents, they may, upon recommendation of the Secretary be
withdrawn from such reservation by the President and established as a
mineral reservation.
When practicable, prospecting and exploration of minerals in reserved
lands may be undertaken by the Bureau of Mines or by any proper
government agency. Said reservation shall be opened to mining by the
Government or its instrumentality or by any qualified person through
competitive bidding under such terms and conditions as may be
prescribed by the Secretary, or through contracts of service with any
party or parties, domestic or foreign, duly qualified as to
organization, finances, resources, experience and technical competence,
subject in any case to the approval of the President.
In the event that the proper government agencies cannot undertake the
prospecting and exploration of minerals in the reserved lands,
qualified persons or corporations may be permitted to undertake such
prospecting and exploration in accordance with the rules and
regulations promulgated by the Secretary. The right to exploit therein
shall be awarded by the President under such terms and conditions as
recommended by the Director and approved by the Secretary Provided,
That the persons or corporations who undertook prospecting and
exploration of said area shall be given priority.
Section 9. Reservation Closed to Mining Location. —
Mineral reservations are closed to mining location; Provided, however,
That the Government may, prospect, develop and exploit such
reservations, through its agencies or instrumentalities or through an
independent contractor selected by negotiated contract or after a
public bidding which shall be conducted by the Secretary through the
Director after proper notice duly published, subject in any case to the
approval of the President.
Section 10. Offshore Areas Established as Mineral
Reservation. — All submerged lands beneath the territorial waters and
on the continental shelf or its analogue in an archipelago, are hereby
established as mineral reservations subject to existing rights and the
President may declare these reservations, or parts thereof, open or
closed to mining location to be disposed of in the same manner as other
mineral reservations. Submerged lands are those under water during low
tide as determined by the Bureau of Coast and Geodetic Survey.
CHAPTER IV
LOCATION OF CLAIMS
Section 11. Locations in Public and Private Lands. —
Only qualified persons may locate mining claims within public and
private lands. However, a prospector may locate for another person:
Provided, That he is first duly authorized by means of a public
instrument registered with the mining recorder concerned before
undertaking such location work.
Section 12. Entry to Public and Private Lands. — A
person who desires to conduct prospecting or other mining operations
within public lands covered by concessions or rights other than mining
shall first obtain the written permission of the government official
concerned before entering such lands. In the case of private lands, the
written permission of the owner or possessor of the land must be
obtained before entering such lands. In either case, if said permission
is denied, the Director, at the request of the interested person may
intercede with the owner or possessor of the land. If the intercession
fails, the interested person may bring suit in the Court of First
Instance of the province where the land is situated. If the court finds
the request justified, it shall issue an order granting the permission
after fixing the amount of compensation and/or rental due the owner or
possessor: Provided, That pending final adjudication of such amount,
the court shall upon recommendation of the Director permit the
interested person to enter, prospect and/or undertake other mining
operations on the disputed land upon posting by such interested person
of a bond with the court which the latter shall consider adequate to
answer for any damage to the owner or possessor of the land resulting
from such entry, prospecting or any other mining operations.
Section 13. Areas Closed to Mining Location. — No
prospecting and location shall be allowed: chanroblesvirtualawlibrary
(a) In military, mineral and other reservations,
except by the Government;chanroblesvirtualawlibrary
(b) In lands covered by valid and subsisting mining
claims located under previous mining laws;chanroblesvirtualawlibrary
(c) In lands covered by mining claims or leases
acquired in accordance with the provisions of this Decree; and
(d) Near or under buildings, cemeteries, bridges,
highways, waterways, railroads, reservoirs, dams, or any other public
or private works, unless otherwise authorized by the Department of
Public Works, Transportation and Communications.
The Secretary shall, upon recommendation of the Director, prescribe in
detail the regulations implementing the various restrictions under this
Section.
Section 14. Size of Mining Claim. — For purposes of
registration of a mining claim under this Decree, the Philippine
territory and its shelf are hereby divided into meridional blocks or
quadrangles of one-half minute (1/2) of latitude and longitude, each
block or quadrangle containing area of eighty-one (81) hectares, more
or less.
A mining shall cover one such block although a lesser area may be
allowed if warranted by attendant circumstances, such as geographical
and other justifiable considerations as may be determined by the
Director: Provided, That in no case shall the locator be allowed to
register twice the area allowed for lease under Section 43 hereof.
Section 15. Declaration of Location of a Mining
Claim. — A qualified person may locate a mining claim by filing with
the Director or his designated deputy, a declaration of location
covering a meridional block or fraction thereof constituting his mining
in a form prescribed for the purpose.
Section 16. Recording of Declaration of Location,
Ministerial. — Upon payment of the required filing fee, recording of a
duly accomplished and notarized declaration of location for a mining
claim shall be ministerial on the part of the recorder concerned.
Section 17. Mining Register. — The Director shall
cause a mining register to be kept in the Bureau of Mines, or in such
other places as he may designate, on which all instruments concerning
mining rights, such as acquisition, sub-lease, operating agreements,
transfers, assignments, abandonment, cancellation and others, are
recorded and registered in chronological order of receipt upon payment
of the required fee. On each instrument recorded and registered, shall
be annotated the date and time of filing, document number, page of
register, register book number, year series, the amount of fee paid,
and the official receipt number.
Section 18. System and Effect of Recording Mining
Instruments. — All declarations of location, affidavits, authority, and
other documents or instruments regarding affecting the possession of
mining area or any right or title thereto, or interest or interest
therein shall be recorded in the order of their receipt by the Mining
Recorder after payment of the required fee, and from and after such
recording, all documents or instruments in writing shall constitute
notice to all persons and to the whole world of the contents of the
same. chanroblesvirtualawlibrary
Section 19. Registration, Filing and Other Fees. —
The Director is authorized to charge reasonable filing and other fees
as he may prescribe by regulation for services to be rendered by the
Bureau of Mines. The registration and filing fees shall accrue to the
Mines Special Fund, and other fees to the Fiduciary Fund.
Section 20. Right Acquired by Registration of the
Declaration of Location. — The recording of a declaration of location
for a mining claim shall give the claim owner, his successor and
assigns, the right to occupy, explore and develop said claim from the
date of the recording thereof subject to the provisions of Section 12
hereof.
Section 21. Voluntary Abandonment of Mining Claim. —
A claim owner may, at any time before a lease is granted, voluntarily
abandon his mining claim by filing for record with the Director or his
deputy, an affidavit of abandonment, and from the date of the recording
of such affidavit all the rights and interests in such claim shall be
deemed to have ceased: Provided, That the original locator or his
successor or assigns shall not be allowed to relocate directly or
indirectly the same claim.
CHAPTER V
MINING RECORDERS, DISTRICTS AND REGIONS
Section 22. Designation of Mining Recorders. — The
Director shall be responsible for the proper recording of mining
instruments and documents and he is hereby authorized to designate such
deputies in the Bureau of Mines whom he considers qualified to perform
the duties of the mining recorder. Subject to the approval of the
Secretary, the Director shall be issue rules and regulations to insure
proper recording of mining instruments and documents.
Section 23. Mining Regions. — The existing mining
regions with offices in Cebu, Baguio, Daet and Surigao shall be
maintained. However, the Secretary, upon recommendation of the
Director, may establish other mining regions as the need arises, the
boundaries of the corresponding provinces. When local conditions
require, two or more provinces may be included in the same mining
region.
CHAPTER VI
ANNUAL WORK OBLIGATIONS
Section 24. Expenditure Required. — A claim owner
under this Decree and under the Mining Act (Commonwealth Act No. 137)
as amended, shall perform annual work obligations on his mining claim,
the value of which shall not be less than the following amounts:cralaw:red
Before the lease contract is granted,
per hectare per calendar year
P20.00
After the lease contract is granted,
per hectare per calendar year
P100.00
A holder of a patentable claim shall before the grant of the patent
applied for, perform annual work obligations on his mining claim, the
value of which shall not be less than two hundred fifty pesos (P250.00)
per hectare per calendar year.
The annual work obligations for each mining claim shall start with the
calendar year immediately following the date of recording of such
mining claim, and in the case of patentable and other claims the annual
work obligations shall start with the calendar year following the date
of the approval of this Decree.
Section 25. Group Development. — The claim owner or
lessee may concentrate all the annual work obligations on any one or
more of several contiguous or geologically related mining claims in one
province, if it can be shown to the Director that such concentration of
work will be most advantageous and beneficial in the development and
operation of said mining claims: Provided, That any expenditure in any
calendar year in excess of the minimum amount required for work
obligations per hectare may be carried forward and credited to the work
obligations of the group claims for the succeeding year or years:
Provided, further, That, if the expenditure incurred for any claim in
less than that required in any year, the difference shall be paid to
the Bureau of Mines which shall accrue to its Mines Special Fund.
Section 26. Legitimate Expenditure for Work
Obligations. — Expenses for prospecting, exploration, and development
work, including the cost of labor, materials and equipment used, and
the fees and charges paid for geodetic, geological, geophysical,
geochemical and other related surveys and for laboratory and pilot
plant testing shall be considered legitimate expenditures for work
obligations. The cost of buildings, machinery, equipment, roadways or
other works shall be considered expenditures for work obligations if it
is clearly shown that they are essential to the exploration and
development of, or will facilitate the extraction of minerals and from,
mining claims.
Section 27. Proof of Annual Work Obligations. — The
claim owner shall submit proof of compliance with the annual work
obligations by filing a sworn statement with the Director with sixty
(60) days from the end of the year in which the work obligation is
required, in form to be prescribed by regulation. Failure of the claim
owner to file such proof of compliance for two (2) consecutive years
shall cause the forfeiture of all rights to his claim.
CHAPTER VII
LEASE SURVEY OF MINING CLAIMS
Section 28. Lease Surveys. — Application for the
survey of mining claim for lease purposes shall be filed with the
Director within one (1) year from the date of the recording thereof.
The Director may reject such application for cause or issue the
corresponding order for survey. Failure to file the said application
within this period shall constitute automatic abandonment of the mining
claims and the lands embraced therein shall thereupon be open to
location by qualified persons other than the original locator, his
heirs successors or assigns.
Section 29. Execution of Surveys. — Survey of mining
claims may be performed by a duly licensed geodetic engineer; Provided,
That no geodetic engineer shall perform surveys of mining claims for
lease, patent or permit purposes without the prior authority of the
Director. Geodetic engineers shall comply with additional conditions
including the posting of a bond to answer for the faithful and diligent
execution of the survey. The Director, may issue such rules and
regulations governing the manner of execution and verification of
surveys of mining claims. All expenses of the survey shall be for the
account of the applicant.
Section 30. Adjustment to Astronomical Meridian. — In
all surveys the astronomical meridian shall be made within the limits
of accuracy prescribed by regulation. After the technical adjustments
have been made, the resulting bearings and distances between
consecutive corners as computed from the adjusted data shall be adopted
and recognized.
Section 31. Monumenting of Surveys. — At the time of
the survey, it shall be the responsibility of the geodetic engineer to
mark the corners of mining claims with concrete monuments or with such
other objects of as permanent nature as may be prescribed by
regulations.
Section 32. Period for Submittal of Lease Survey
Returns. — A geodetic engineer ordered to survey mining claims shall
submit the survey returns to the Director within one (1) year after
receipt of survey order. Failure to submit the survey returns within
said period is sufficient cause for cancellation of the surveyor's
surety bond and or cancellation of the survey order. No extension of
period within which to submit survey returns shall be allowed unless
for reasons of force majeure.
Section 33. Mines Temporary Permit. — Pending the
issuance of the lease contract the claim owner may apply with the
Director for a mines temporary permit to extract and dispose of the
minerals from his claim, subject to the payment of taxes and royalties
due and to the further condition that the claim owner has complied with
his other obligations on the claim. This mines temporary permit may be
issued by the Director for a period of one (1) year, renewable once
only for a like period: Provided, That the claim owner shall file a
surety bond in an amount to be fixed by the Director.
Notwithstanding the foregoing provisions of this section, the Director
may allow the extraction and removal of representative samples for
laboratory, scientific and test purposes, in such quantity as the
Director may determine.
CHAPTER VIII
LEASE OF MINING CLAIMS
Section 34. Time Limit to Apply for Lease. —
Application for lease of mining claims shall be filed with the Director
within two (2) years from the date of the recording thereof. Failure to
file the said application within this period automatically constitutes
absolute abandonment of the mining claims, and the land embraced
therein shall be open to location by qualified persons other than the
original locator, his heirs, successors and assigns. chanroblesvirtualawlibrary
Section 35. Application for Lease for Contiguous
Claims. — A single application for lease may be filed and a single
lease be granted covering adjoining or contiguous mining claims
belonging to the same claim owner: Provided, That the total area under
a single lease application shall not exceed the maximum number of
hectares that may be held or leased in any one province by the
applicant.
Section 36. Application Form. — All applications for
mining lease shall be in the prescribed form and under oath, it shall
state, among others, the full name, address, citizenship, civil status
of the applicant, his place and date of birth. If the applicant is a
partner or corporation, the application shall be accompanied by (1)
certified copy of duly registered articles of partnership or
incorporation, (2) a certified copy of the duly registered by-laws, (3)
a statement under oath certifying to the percentage of ownership of the
partnership or corporation by Filipinos and aliens, and (4) a certified
list of the officers, directors and partners. There should be attached
to each application a report prepared by a duly licensed geologist or
mining engineer to the effect that the mining claim shows adequate
mineralization.
Section 37. Qualification of Lease Applicant. — In
addition to the qualifications required of a locator, an applicant for
a mining lease shall present proof of the availability of technical
competence and financial resources sufficient to develop the claim
applied for. The regulations shall prescribe in detail the additional
qualifications herein required.
Section 38. Application Forms Part of Lease Contract.
— All statements in the application and those submitted in support
thereof shall be considered as conditions of the lease. Any falsehood
made in these statements or omission which may alter, change or affect
substantially the facts set forth therein shall constitute sufficient
cause for denial of the application or the cancellation of the lease
granted.
Section 39. Publication of Lease Application. — If
the Director finds the application in order, he shall cause the
publication of the notice of the application once a week for two (2)
consecutive weeks in two (2) newspapers, one of general circulation
published in Manila either in Pilipino or English and another published
in the municipality or province where the mining claim situated, if
there be such newspaper, otherwise in the newspaper published in the
nearest municipality or province. The Director shall also cause posting
of the said notice of the bulletin board of the Bureau of Mines for two
(2) consecutive weeks and shall order the applicant to post for the
same period the notice and a copy of the approved plan of the mining
claims on the bulletin boards of the municipal building of the
municipality, and the mines regional office where the mining claim is
located. Immediately after the expiration of the period of publication,
the applicant shall file with the Director an affidavit attesting to
the fact that the required notices and approved plan have been posted
at the required places and during the specified period.
Section 40. Issuance of Mining Lease Contract. — If
no adverse claim is filed within fifteen (15) days after the first date
of publication, it shall be conclusively presumed that no such adverse
claim exists and thereafter no objection from third parties to the
grant of the lease shall be heard, except protest pending at the time
of publication, and the Secretary shall approve and issue the
corresponding mining lease contract after the area has been verified as
to its mineralization and the due execution of the lease survey, which
contract shall be for a period not exceeding twenty-five (25) years,
renewable under such terms and conditions as may be provided by law for
another period not exceeding twenty-five (25) years. Upon the
expiration of the lease, the operation of the mine may be undertaken by
the Government through one of its agencies or through a qualified
independent contractor. The contract for the operation of a mine by an
independent contractor shall be awarded to the highest bidder in a
public bidding held after due publication of the notice thereof:
Provided, That the lease shall have the right to equal the highest bid
upon reimbursement of all reasonable expenses of the highest bidder.
Section 41. Withdrawn from Lease. — The lessee may,
at any time during the life of the lease, apply, for the cancellation
of the lease contract due to force majeure or for the other causes
which render continued mining operations no longer profitable.
Section 42. Mining Lease on Private Land. — A mining
lease may be granted on mining claims located on private lands:
Provided, That the applicant shall submit a written authority of the
landowner. If the landowner refuses or fails to enter into an agreement
with the applicant, the latter shall have the remedy provided for in
Section 12 of this Decree.
Section 43. Maximum Lease Area Allowed. — The maximum
area of mining claims which may be leased shall be as follows:cralaw:red
(1) In any one province:cralaw:red
(a) To individuals, Five Hundred Hectares;chanroblesvirtualawlibrary
(b) To Mining Partnerships or Corporations, Five
Thousand Hectares;chanroblesvirtualawlibrary
(2) In the entire Philippines:cralaw:red
(a) To individuals, One Thousand Hectares;chanroblesvirtualawlibrary
(b) To Mining Partnerships or Corporations, Ten
Thousand Hectares.
The foregoing provisions of this section notwithstanding, the Director
with the approval of the Secretary, may allow an applicant to lease a
larger area not exceeding 10,000 hectares in any one province,
depending upon the nature of the deposit, the kind of minerals, located
and other circumstances inherent in the operation of the mining claim
justifying the grant.
Section 44. Mining Lease Rights. — A mining lease
contract shall grant to the lessee, his heirs, successors, and assigns
the right to extract all mineral deposits found on or underneath the
surface of his mining claims covered by the lease, continued vertically
downward; to remove, process, and otherwise utilize the mineral
deposits for his own benefit; and to use the lands covered by the lease
for the purpose or purposes specified therein: Provided, however, That
the Secretary shall reverse the right to grant and use easements in,
over, through, or upon the said claims as may be needed by other claim
owners or lessees for right-of-way to enable them to have access to
and/or facilitate the operation of, their mining claims: Provided,
further, That in case of conflict of interest between claim owners for
this purpose the Director is hereby authorized to mediate; Provided,
furthermore, That in granting any lease under this Decree the
Government reserves the right to lease, or otherwise dispose of the
surface of the lands embraced within such lease which is not needed by
the lessee in extracting and removing the mineral deposits from his
mining claims, or in the beneficiation of the ores extracted therefrom:
Provided, finally, That a lessee may on his own or through the
Government, enter into a service contract with a qualified domestic or
foreign contractor for the exploration, development and exploitation of
his claims and the processing and marketing of the product thereof,
subject to the rules and regulations that shall be promulgated by the
Director, with the approval of the Secretary, and on the condition that
if the service contractor will provide the necessary financial and
technical resources, he may be paid from the proceeds of the operation
not exceeding forty per centum (40%) thereof. Service contracts shall
be approved by the Secretary upon recommendation of the Director.
Section 45. Laws and Regulations Considered Part of
Lease Contract. — All mining lease contracts shall contain a provision
that the lessee shall comply with the provisions of this Decree and
with all the rules and regulations promulgated concerning the safe
operation and sanitary upkeep of the mines as well as pollution control
laws and regulations.
Section 46. Termination of Lease Rights. —
Immediately after a mining lease contract cancelled or otherwise
terminated, the Director shall cause the same to be entered in the
mining register and a notice thereof shall be posted on the bulletin
board of the Bureau of Mines, and the lands covered thereby shall
thereupon be open to location and lease by other qualified persons.
Section 47. Removal of Improvements. — The lessee
shall within one (1) year from the abandonment, termination or
cancellation of the lease, remove all improvements on the mining
premises, except roads and bridges; otherwise said improvements shall
become the property of the Government.
CHAPTER IX
PROTEST, ADVERSE CLAIMS AND APPEALS
Section 48. Protest and Adverse Claims. — Any protest
or adverse claim of any nature whatsoever involving the right to
possession, lease, exploration or exploitation of any mining claim in
any part of the Philippines shall be filed with the Bureau of Mines for
investigation and decision pursuant to the provisions of Presidential
Decree No. 309 and Letter of Instructions No. 119, as amended by Letter
of Instruction No. 135. The protest or adverse claim shall be
accompanied by all plans, documents, and other data upon which the
protest or adverse claim is based.
In the case of an adverse claim against a lease application, filed
under Section 34 hereof, such adverse claim shall be filed within
fifteen (15) days after the first date publication of the notice of
lease application if such claim was not previously investigated and
decided under Presidential Decree No. 309. When an adverse is filed
under this paragraph, all proceedings, except the publication of the
notice of application for lease, the submittal of the affidavit in
connection therewith and the processing of applications for temporary
permit, shall be stayed until the controversy is settled or decided by
the Director: Provided, That the operations and production under a
mines temporary permit issued prior to the adverse claim shall be
allowed to continue subject to the provisions of Section 33 concerning
the posting of bonds. chanroblesvirtualawlibrary
Section 49. Priority Rights. — In case of conflict of
mining claims, priority of recording shall determine the right to the
area, notwithstanding any defect in form or technically as provided for
in Presidential Decree No. 99-A: Provided, That in case of discrepancy
between the area described in the declaration of location and the
actual area occupied on the ground, the former shall prevail, subject
to any question as to having complied with all the requirements of this
Decree.
Section 50. Appeals. — Any part not satisfied with
the decision or order of the Director may, within five (5) days from
receipt thereof, appeal to the Secretary. Decisions of the Secretary
are likewise appealable within five (5) days from receipts thereof by
the affected party to the President of the Philippines whose decision
shall be final and executory.
In all cases, the decision, or order of the Director and the Secretary
shall be immediately executory notwithstanding the appeal, unless the
President of the Philippines directs otherwise, and the prevailing
party has the right to immediately take possession, exploration and
exploitation of the mining claims: Provided, however, That the rules
and regulations embodied in Mines Administrative Order No. 50,
pertaining to the deposit in escrow of the prescribed percentage of the
proceeds of the gross sales of the mines produced, shall be complied
with for the protection of the interest of the party to whom the mining
claim are ultimately and finally awarded.
CHAPTER X
FISCAL PROVISIONS
Section 51. Occupation Fees, Rentals, Royalties and
Taxes. — The claim owner shall pay the occupation fees, rentals,
royalties and taxes on his mining claims and on the minerals extracted
therefrom as provided for in the National Internal Revenue Code, as
amended: Provided, That the failure to pay all taxes and fees due the
government for two (2) consecutive years shall cause the cancellation
of the mining claim and the reopening of the same for relocation by
other parties.
Section 52. Power to Levy Taxes on Mines, Mining
Operations and Mineral Products. — Any law to the contrary
notwithstanding no province, city, municipality, barrio or municipal
district shall levy and collect taxes, fees, rentals, royalties or
charges of any kind whatsoever on mines, mining claims, mineral
products, or on any operation, process or activity connected therewith.
Section 53. Tax Exemptions. — Machineries, equipment,
tools for production, plants to convert mineral ores into saleable
form, spare parts, supplies, materials, accessories, explosives,
chemicals and transportation and communication facilities imported by
any for the use of new mines and old mines which resume operation, when
certified as such by the Secretary upon recommendation of the Director,
are exempt from the payment of customs duties and all taxes except
income tax for a period starting from exploration and ending five (5)
years from the first date of actual commercial production of saleable
mineral products: Provided, That such articles are not locally
available in reasonable quantity, quality and price and are necessary
or incidental in the proper operation of the mine.
Any tax-exempt article acquired under this section shall not be sold,
transferred or otherwise disposed of within a period of five (5) years
from the time of such acquisition: Provided, That any such sale,
transfer or other disposal of such articles within the aforesaid period
shall be subject to the payment of all taxes and duties which shall
have been due at the time of such acquisition, together with all
interests and surcharges with amount shall constitute a lien on the
articles sold.
All mining claims, improvements thereon and mineral products derived
therefrom shall likewise be exempt from the payment of all taxes,
except income tax, for the same period provided for in the first
paragraph of this section.
The exemption provided for in this section shall be subject to such
rules and regulations that shall be issued by the Director and approved
by the Secretary.
Section 54. Notice of Revenue Payments to Director. —
Within thirty (30) days from the date of the payment of the rentals or
royalties due on any mining lease or minerals extracted therefrom, the
lessee submit to the Director copies of receipt of such payment, and
the names of the mining claims, lease number, and the names of persons,
partnerships or corporations for which such payment has been made.
Failure to submit copies of such receipt, information or document shall
be deemed as non-payment of same and may cause the cancellation of the
lease contract. The Director shall keep a record of receipt of such
information.
Section 55. Unpaid Rentals and Royalties. — If a
mining lease contract is cancelled or otherwise terminated, the lessee
shall be liable for all unpaid rentals and royalties due up to the time
of the termination or cancellation of the lease.
CHAPTER XI
AUXILIARY MINING RIGHTS
Section 56. Mine's Timber Rights. — Any provision of
law to the contrary notwithstanding, a claim owner shall have the right
to cut trees or timber within his mining claims, subject to the rules
and regulations of the Bureau of Forest Development, as may be
necessary for the exploration, development, exploitation, utilization
or operation of his mining claims: Provided, That if the land covered
by such mining claims are already covered by existing timber
concessions, the amount of timber needed and the manner of cutting and
removal thereof shall be determined by the Director, the claim owner
and the timber concessionaire: Provided, further, That in case no
agreement can be reached between the claim owner and the timber
concessionaire, the matter shall be submitted to the Secretary whose
decision shall be final.
The claim owner granted a timber right shall be obligated to perform
reforestation work within the mining claims in accordance with
regulations of the Bureau of Forest Development.
Section 57. Miner's Water Rights. — A claim owner
shall also have water rights for the development or operation of his
mining claims upon application filed with the Director of the Bureau of
Public Works in accordance with the existing laws of water and the
rules and regulations promulgated thereunder: Provided, That water
rights already granted or vested through long use, recognized and
acknowledged by the local customs, laws and decisions of courts, shall
not thereby be impaired: Provided, further, That the Government
reserves the right to regulate water rights and the reasonable and
equitable distribution of water supply so as to prevent the monopoly of
the use thereof.
Section 58. Easement Rights. — When mining claims are
so situated that for purposes of more convenient exploration,
development, exploitation, utilization and operation thereof by the
claim owner or lessee, it is necessary to build, construct or install
on mining claims or lands owned, occupied or leased by other person,
roads, railroads, mills, waste dumpsites, warehouses, and port
facilities, tramways, electric transportation thereto or therefrom,
dams, and their normal flood areas, ditches, canals, pipelines, flumes,
cuts, shafts or tunnel to drain or convey water, ore waste, or tailings
therefrom, shafts or tunnels for mining purposes, use or benefit, the
hereby declared to be for public purpose, use or benefit, the claim
owner or lessee upon payment of just compensation shall be entitled to
the right to enter and occupy the said mining claims or land.
Section 59. Eminent Domain. — When the claim owner or
an occupant or owner of private lands refuses to grant to another claim
owner or lessee the right to build, construct or install any of the
facilities mentioned in the next preceding section, the claim owner or
lessee may prosecute an action for eminent domain under the Rules of
Court in the Court of First Instance of the province where the mining
claims involved are situated. In the determination of the just
compensation due the claim owner or owner or occupant of the land, the
court shall appoint at least one duly qualified mining engineer or
geologist to be recommended by the Director as one of the commissioners.
CHAPTER XII
MINES PERSONNEL, INSPECTION AND SAFETY
Section 60. Employment of Filipinos. — Lessees under
this Decree are obligated to give preference to Philippine citizens in
all types of mining employment within the country, insofar as such
citizens are qualified to perform the corresponding work with
reasonable efficiency and without hazard to the safety of the
operations; and are obligated likewise to maintain effective programs
of training and advancement commensurate with the demonstrated
abilities of such citizens to perform satisfactorily the various types
of operations involved. The lessee, however, shall not be hindered from
using employees of their own selection, subject to the provisions of
Commonwealth Act Numbered Six Hundred Thirteen, as amended, for
technical and specialized work which, in their judgment and with the
approval of the Director, requires highly specialized training or long
experience in exploration, development or exploitation of the mining
claim: Provided, That in no case shall each employment exceed five (5)
years: Provided, further, That no foreigner shall be employed as mine
manager, vice-president for operations or equivalent managerial
position, in charge of mining, milling, quarrying or drilling operation
without passing the appropriate or pertinent government licensing
examination or unless in special cases permitted by the Director for a
period not exceeding one (1) year.
Section 61. Mine Labor. — No person under sixteen
(16) years of age may employed in any phase of mining operations, and
no person under (18) years of age may be employed underground in a mine.
Section 62. Mine Supervision. — All mining quarrying
developing and exploitation operations shall be directed and/or
supervised by a person or persons in accordance with the provisions of
Section 25 of Republic Act Numbered Forty-two Engineering Law of the
Philippines."
Section 63. Mine Inspection. — Only the Director or
his duly authorized representative, at reasonable hours of the day or
night and in a manner, which will not impede or obstruct work in
progress, may inquire into or inspect the activities of a lessee
regarding safety inspection of all installation, surface or
underground, within the mining claim or lease, mine safety, mineral
conservation, problem of pollution and compliance with the terms and
conditions of the lease.
Section 64. Remedy for Dangerous Practices. — If the
Director or his duly authorized representative finds any practice
connected with prospecting, mining or processing to be dangerous or
defective or not in accordance with the anti-pollution laws and
regulations, he shall give notice in writing thereof to the claim owner
or to his agent in charge of the operations and shall require the same
to be remedied forthwith or within such time as he may specify, and may
in case of danger is removed.
Section 65. Report of Accident. — In case of any
accident causing loss or serious personal injuries, the person in
charge of prospecting, mining, quarrying or processing operations shall
immediately report the same to the Director by the fastest means of
communications, and shall promptly report in writing the facts of the
accident to the mayor of the municipality where the works are situated
and to the nearest regional office of the Bureau of Mines.
CHAPTER XIII
QUARRY RESOURCES
Section 66. Exploitation of Quarry Resources. —
Quarry resources may be exploited only through permits on
privately-owned lands through licenses public lands.
Section 67. Preferential Right of Private Landowner.
— The owner of private lands shall have the preferential right to
exploit the quarry resources found therein: Provided, That he shall not
be required to secure a permit to extract or remove quarry resources on
his land for his personal use.
Section 68. Applications for Quarry Rights. —
Applications for quarry permits or licenses shall be filed with the
Director or with the Mines Regional Officer in the form and manner
prescribed for the purpose after paying the required filing fee as
prescribed by the regulations. The Director shall grant the permit or
license after the applicant has complied with all the requirements as
prescribed by the regulations.
Section 69. Maximum Are of Quarry License. —
Notwithstanding the provisions of Section 14 hereof, a quarry license
shall cover any area of not more than one hundred (100) hectares in any
one province and not more than one thousand (1000) hectares in the
entire Philippines.
Section 70. Survey of Area Applied For. — An
applicant for a quarry license shall cause the survey of the areas
applied for within thirty (30) days from the filing of the application.
In the case of areas applied for quarry permits, the survey thereof
previously made and approved by proper authorities may be considered as
sufficient compliance with the survey requirement provided herein.
Failure on the part of an applicant for a quarry license to have the
areas surveyed within the said period shall cause the rejection of the
application.
Section 71. Rights of Permittee or Licensee. — A
holder of a valid quarry permit or license shall have the right to
extract, remove and dispose of all the quarry resources found on or
underneath the surface of the area embraced in his permit or license,
subject to existing laws, rules and regulations promulgated thereunder,
and the term and conditions of said permit or license.
Section 72. Term of Permit or License. — A quarry
permit or license shall be for a term of five (5) years counted from
the date of its issuance. Upon application filed before the expiry date
thereof, and the permittee or licensee having complied with the
requirements, a permit or license may be renewed for one or more terms
but in no case to exceed twenty-five (25) years. Pending the issuance
of a quarry license, an applicant therefor may be granted special
permit to extract quarry resources for test and experimental purposes
at such quantity as the Director may determine: Provide, That for
commercial purposes Section 33 shall apply.
Section 73. Quarry Fee and Royalty. — A permittee or
licensee shall pay during the term of his permit or license a quarry
fee fifty pesos (P50.00) per hectare. The licensee or permittee shall
also pay to the Government a royalty of two per centum (2%) of the
actual market value of the gross output of the quarry resources
extracted from the area of his permit or license.
Section 74. Cancellation of Quarry Permit or License.
— A permit or license for quarry resources may be cancelled by the
Director for violations of the provisions of this Decree and of all
applicable regulations: Provided, That before the cancellation of such
license or permit the holder thereof shall be given an opportunity to
be heard in an investigation to be conducted for the purpose.
CHAPTER XIV
PENAL PROVISIONS
Section 75. False Statements. — Any person who,
knowingly presents or causes to be presented any false application,
declaration, or evidence to the Government or publishes, or causes to
be published any prospectus or other information containing any false
statement relating to mines, mining operations, mining claims or lease,
shall be guilty or perjury if such statement is made under oath, and
shall be punished upon conviction in accordance with the provisions of
the Revised Penal Code. If such false statement is not made under oath,
he shall be punished, upon conviction, by a fine not exceeding one
thousand pesos (P1,000.00).
Section 76. Intentional Overlapping. — Any person who
shall locate an area as a mining claim and/or overlap any mining claim
knowing fully well that the area is already, covered by another
locator's valid and existing registered claim, shall be guilty of
falsification of public document punishable under the Revised Penal
Code.
Section 77. Destruction of Claim Monuments, Marks,
etc. — Any person who wilfully and maliciously defaces, removes, or
disturbs, any stake, post, monument, boundary line or any other mark
lawfully placed on mining claims, or destroys, injuries or defaces any
rules or notices required to be posted under this Decree, shall be
punished upon conviction, by a fine not exceeding five hundred pesos
(P500.00), besides paying compensation for the expenses incurred in
replacing the defaced altered, removed, or disturbed, stakes, posts,
monuments, boundary lines, notices, or any other mark.
Section 78. Theft of Minerals. — Any person who,
without a mining lease or a temporary permit to mine, shall extract,
remove, and/or dispose of minerals for commercial purposes belonging to
the Government or from a mining claim or claims leased, held, or owned
by other persons, without the written permission contemplated in
Section 12, shall be deemed to have stolen the ores or the products
thereof from the mines or mills. He shall, upon conviction, be
imprisoned from six months to six years or pay a fine from one hundred
pesos to ten thousand pesos, or both, in the discretion of the court,
besides paying compensation for the minerals extracted and disposed of,
the royalty and the damage caused thereby.
Section 79. Fraudulent Conveyance of Mining Interest.
— Any person who, with intent of gain, knowingly sells, transfers or
conveys any false mining claim or claims or any false right, title or
interest in such mining claims which were not actually located on the
ground and do not exist as such claims shall guilty of estafa and shall
be punished, upon conviction, in accordance with the provisions of the
Revised Penal Code.
Section 80. Salting of Mineral Lands and Minerals. —
Any person, who knowingly places or deposits, or becomes accessory to
the placing or depositing of, any mineral in any land for the purpose
of "salting" or misleading other persons as to the value of the mineral
deposits in such land, or who, knowingly co-mingles or causes to be
co-mingled samples of minerals with any other substances whatsoever
which increases the value or in any way changes the nature of said
minerals for the purpose of deceiving, cheating, or defrauding any
person, shall be punished, upon conviction, by imprisonment not
exceeding a period of five (52) years besides paying compensation for
the damage which have been caused thereby.
Section 81. Pollution from Mine Wastes and Mill
Tailings. — Any person who wilfully cause or permits sludge or tailings
and other mine and mill wastes to accumulate in, or flow from his
mining claims so as to cause danger, injury, or obstruction to any
public road, rivers, or streams or other public property shall be
punished, upon conviction, by a fine not exceeding five thousand pesos
(P5,000.00) or imprisonment not exceeding six (6) years, or both in the
discretion of the court besides paying compensation for the damage
caused thereby.
Section 82. Interference with Mine Water Rights. —
Any person who wilfully takes water from a mine, mill, dam, reservoir,
or from any other form of deposit, or prevents the water from entering
said mine, mill, dam, reservoir, or in any way interferes with the full
enjoyment of water rights previously granted and lawfully held by
another person shall be punished, upon conviction, by a fine exceeding
five hundred pesos (P500.00) or imprisonment not exceeding six (6)
months or both, at the discretion of the court.
Section 83. Destruction of Mining Claim Structures. —
Any person who wilfully destroys or damages structure in or on mining
claims or on mill sites shall be punished, upon conviction, by
imprisonment not to exceed five (5) years besides paying compensation
for the damages which may have been caused thereby.
Section 84. Mines Arson. — Any person who wilfully
sets fire to any mineral stockpile, mine, or workings, fittings, or a
mine shall be guilty of arson and shall be punished, upon conviction,
in accordance with the provisions of the Revised Penal Code, besides
paying compensation for the damage caused thereby. chanroblesvirtualawlibrary
Section 85. Willful Damage to a Mine. — Any person
who wilfully damages a mine unlawfully causes water to run into a mine,
or obstructs any shaft or passage to a mine, or renders useless,
damages, or destroys any machines, appliance, apparatus, rope, chain,
tackle or any other thing which is used in a mine, shall be punished,
upon conviction, by imprisonment not exceeding a period of five (5)
years besides paying compensation for the damages caused thereby.
Section 86. Illegal Obstruction to Government
Officials. — Any person who wilfully obstructs, harasses, and/or
threatens the Director or any of his subordinates or representatives,
in the performance of their duties pursuant to this Decree shall be
punished, upon conviction, by a fine not exceeding one thousand pesos
(P1,000.00), or by imprisonment of not more than one (1) year, or both,
at the discretion of the court.
Section 87. Illegal Obstruction to Lessee, or
Permittee. — Any person who, without justifiable cause, prevents or
obstructs the holder of a mining claim, any lessee, licensee or
permittee under this Decree from undertaking prospecting, or
development and exploitation operations in any mining claim shall be
punished by a fine of not more than one thousand pesos (P1,000.00) or
by imprisonment of not more than one (1) year or both, at the
discretion of the court.
Section 88. Delay in the Payment of Tax or Rental or
Royalty. — Where the amount of tax, rental or royalty provided for by
this Decree or by the terms and conditions of the lease contract or
permit or license granted under this Decree is not paid on due date,
there shall be collected as part of the amount due, a surcharge of
three per centum, (3%) thereof per month from the due date until paid,
such surcharges to accrue to the Mines Special Fund.
Section 89. Offenses by Corporation. — Whenever any
of the offenses mentioned in this chapter is committed by a
corporation, partnership or association, the President and each of the
Director or managers of said corporation, partnership or association or
its agent or representative in the Philippines in case of a foreign
corporation or association who shall have directed or induced the
commission of the said offense shall be criminally liable as principal
thereof.
CHAPTER XV
GENERAL PROVISIONS
Section 90. Executive Officer. — The Secretary,
through the Director, shall be the Executive Officer charged with
carrying out of the provisions of this Decree. Except as herein
provided the Secretary, upon recommendation of the Director, shall
issue the rules, regulations and orders necessary to carry out the
provisions and purposes of this Decree.
Section 91. Conservation Measures. — All lessees
under this Decree shall take appropriate measures and undertake
researches in accordance with the most modern practices to maximize
recovery and wise utilization of minerals and stop or prevent wastes in
mining and milling operations. Rules and regulations may be issued
which shall require mine operators to utilize in their exploration,
development, exploitation and utilization, the latest and most improved
methods and devices to prevent wastes, or from causing pollution or
otherwise damaging streams, surface or underground water supply, and
valuable mineral deposits.
During the productive operation of any mine or leased minerals lands,
the operator or lessee shall take necessary measures to provide for the
growth and development of any industry suitable for the area, other
than mining in order that when the mine is exhausted or becomes no
longer profitable for mining purposes the people residing therein or
those who used to work for the mine will have a substitute industry or
business activity to provide their means of livelihood. Furthermore,
the mine or leased area shall be placed in a condition suitable for
habitation or agriculture, and free from danger of cave-ins, slides,
and other risks brought about by the mining operations.
Section 92. Fixed Taxes and Work Obligations. — Work
obligations, special taxes and royalties which are fixed by the
provisions of this Decree are considered as inherent in all mining
leases granted hereunder, and shall remain at the rates and levels in
force at the time such leases were issued. Any increase in the amount
or rate of such work obligations, special, taxes or royalties shall
apply only to mining leases granted subsequent to the effectivity of
any such increase.
Section 93. Fixed Causes of Cancellation. — The
causes of cancellation provided in this Decree shall be considered as
inherent in all mining leases or other rights hereunder, and no new
cause or modification of such causes shall apply to any lease or right
existing at the time such new or modified causes are made effective.
Section 94. Mine Evaluation. — The appraisal or
reappraisal valuation or re-evaluation of any mine, mining claim or
claims with or without improvements thereon, whether patented, leased
or otherwise, for the purpose of raising capital for the formation or
organization of a partnership or corporation or for determining the
present net value of the mines, shall be made by the Director or his
duly authorized representative. No mine, mining claim or claims with or
without improvements thereon, whether patented, leased or otherwise,
shall be accepted as or basis of any asset in any formation or
organization of a partnership or corporation without the value thereof
having been first appraised or determined by the Director as herein
provided.
Section 95. Drilling and Exploration by the Bureau of
Mines on Registered Mining Claims. — In accordance with the mineral
policy of the Government, the Bureau of Mines shall give priority to
the exploration, development and exploitation of critical and/or
valuable commercial minerals needed to meet urgent national demands and
economic development, and for this purpose, the Bureau of Mines may
conduct exploration and drilling work not only in public lands and
government reservations, but also within claims located and recorded by
private parties and using for such purpose its funds, personnel and
equipment. In the latter case, in the event that commercial deposits
are proven by such exploration and drilling work, such private parties
shall reimburse the Bureau of Mines of all the expenses it incurred in
exploring and drilling said mining claims, or part thereof, based on a
schedule of reimbursement approved by the Secretary upon recommendation
of the Director. The lease which may be granted covering the area so
explored and drilled shall contain stipulations as to the term of the
payment five (5) years from the date of the lease, and with surcharges
not exceeding twelve per centum (12%) per centum on the total expenses
incurred by the Bureau of Mines.
The declaration of location from to be used in locating and recording
mining claims, shall contain a proviso recognizing the authority of the
Director of his representative to enter the mining claims located and
recorded by private parties, and may conduct such exploration work
within the area when in his opinion it is to the best interest of the
country that the Bureau of Mines undertake such work.
Section 96. Minerals Not Included in Land Grants. —
Land grant to provinces, districts or municipalities tod in the
construction of roads, or for other public purposes, shall not include
mineral therein.
Section 97. Assignment of Mining Rights. — A mining
lease contract or any interest therein shall not be transferred,
assigned, or subleased without the prior approval of the Secretary:
Provided, That such transfer, assignment or sublease may be made only
to a qualified person possessing the resources and capability to
continue the mining operations of the lessee and that the assignor has
complied with all the obligations of the lease: Provided, further, That
such transfer or assignment shall be duly registered with the office of
the mining recorder concerned.
Section 98. Maps of Mine Workings Required. — Lessees
undertaking underground operation shall prepare and maintain a map or
maps of convenient scale showing their workings which shall be updated
and made available to the Director or his representative upon demand.
CHAPTER XVI
TRANSITORY AND FINAL PROVISIONS
Section 99. Non-impairment of Vested or Acquired
Substantive Rights. — Changes made and new provisions and rules laid
down by this Decree which may prejudice or impair vested or acquired
rights in accordance with order mining laws previously in force shall
have no retroactive effect. Provided, That the provisions of this
Decree which are procedural in nature shall prevail. chanroblesvirtualawlibrary
Section 100. Old Valid Mining Rights May Come Under
This Decree. — Holders of valid and subsisting mining locations and
other rights under other laws, irrespective of the areas covered, may
avail of the rights and privileges granted under this Decree by making
the necessary application therefor and approval thereof by the Director
within a period of two (2) years from the date of approval of this
Decree.
Section 101. Recognition and Survey of Old Subsisting
Mining Claims. — All mining grants patents, locations, leases and
permits subsisting at the time of the approval of this Decree shall be
recognized if registered pursuant to Section 100 hereof: Provided, That
Spanish Royal Grants and unpatented mining claims located and
registered under the Act of the United States Congress of July 1, 1902,
as amended, otherwise known as the "Philippine Bill", as shall be
surveyed within one (1) year from the approval of this Decree:
Provided, further, That no such mining rights shall be recognized if
there is failure to comply with the fundamental requirements of the
respective grants: And provided, finally, That such grants, patents,
locations, leases or permits as may be recognized by the Director after
proper investigation shall comply with the applicable provisions of
this Decree, more particularly with the annual work obligations,
submittal of reports, fiscal provisions and other obligations.
Section 102. Conditional Mining Acts and Contracts. —
Acts and contracts made or executed with a condition or period under
previous mining laws, if valid in accordance therewith, shall continue
as such, but the revocation or modification of these acts and contracts
after the effectivity of this Decree shall be subject to the provisions
hereof.
Section 103. Right of Applicant to Areas Abandoned. —
The lessee under this Decree has the preferential right to apply for
the inclusion of any and all areas within the perimeter of his claim
which are covered by abandoned or expired right granted under other
mining laws.
Section 104. Separability Clause. — If any section or
provision of this Decree is held or declared unconstitutional or
invalid by a competent court, the other sections or provisions hereof
shall continue to be in force as if the sections or provisions so
annulled or voided had never been incorporated in this Decree.
Section 105. Repealing Clause. — All laws, decrees,
rules and regulations, or part thereof in conflict or inconsistent with
any of the provisions of this Decree are hereby repealed or modified
accordingly. chanroblesvirtualawlibrary
Section 106. Effectivity Date. — This Decree shall
take effect immediately.
Done in the City of Manila,
this 17th day of May, in the year of Our Lord, nineteen hundred and
seventy-four.
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