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Republic of the Philippines
DEPARTMENT OF ENERGY

DEPARTMENT CIRCULAR NO. De 2I013-Ce- “OCU

IMPLEMENTING | RULES AND REGULATION S OF REPUBLIC ACT NO. 10516

RULE1 |
GENERAL PROVISIONS

Section 1. Title. These rules shall be referred to as the Rules and Regulations to Implement Republic
' » Act No. 10516 entitled, “An Act Expanding the Utilization of the Industrial Estate In Lamao,
- Limay, Bataan For Businesses Engaged in Energy and Energy-Related Infrastructure Projects
and Other Gainful Economic Activities in Addition to Petrochemical and Related Industries,
Amending for the Purpose Presidential Decree No. 949.”

Section 2. Declaration of Principles and Policies.

2.1 Achieving Best Economic Use - within the framework and subject to the mandate of
the Constitution and existing laws and regulations, it is hereby declared the policy of
Philippine National Oil Company (PNOC), to develop the Industrial Estate located in
Lamao, Limay, Bataan into a self-sustaining industrial and commercial estate to help
attract and promote productive local and foreign investments therein.

2.2 — Private Sector Participation - the PNOC shall promote and encourage private sector
investment in the development of energy projects, petrochemical industries, and all

other gainful industrial and commercial activities/ enterprises in said Industrial
Estate.

2.3 Respect of Existing Private Rights - private rights, if any, over the Industrial Estate
described in Presidential Proclamation No. 361 dated March: 6, 1968 as amended by
Proclamation No. 630 shall be respected subject to Rule 3 herein.

2.4 Non-Impairment of Obligations of Contracts - all locators, lessees and sub-lessees, _
now operating in the above cited Industrial Estate shall be allowed to continue with
its usual business operations, transactions and activities as authorized by law subject
to such rules and regulations as PNOC may prescribe. .

2.5 Sustainable Development ~ PAFC, in order to achieve sustainable development and
to protect public health and welfare shall implement its environmental protection
measures and regulations that conform to those environmental policies and
standards established by the National Government.

The environmental management policies include but shall not be limited to natural
resources conservation and protection, water supply, waste. water treatment, solid
waste / toxic and hazardous management, waste transport, environmental
monitoring, air quality management, pollution control, training and education, and
contingency and emergency planning.

2.6 Water Resources Planning - Consistent with the National Government policies and
PAFC’s Programmatic Environmental Compliance Certificate (PECC), PAFC shall
formulate and implement policies and programs to ensure sustainable water
resources for the Industrial Park. This program shall include the determination of the
allowable rate and quantity of water withdrawal, and reporting on water
consumption. .

Energy Center, Merritt Rd., Fort Bonifacio, Taguig City, Metro Manila, Philippines | io nih ln dhe
Fax #812-61-94 Tel.# 840-20-08 Fax # 840- 21-38 Tel # 840-22-36 Fax # 840-17-31 Tel # 817-86-03 Trunkline 479: 29-00 .,
- Website: www.doe.gov.ph, E-mail: info@doe.gov.ph

em

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Section 3,

Definition of Terms. For purposes of these Rules, the following terms shall mean:

3.1

3.2 -

3.3 °

34

3.5

3.6

3.7

3.8

39

3.10

3.11

3.12

Department of Energy. or DOE ~ te
pursuant to RA 7638.

fers to the government agency created

Philippine National Oil Company or PNOC — the Government Owned and

Controlled Corporation created under Presidential Dectee No. 334.

PNOC-Alternative Fuels Corporation or PAFC -- a Government Owned
and Controlled Corporation and a wholly-owned subsidiary of the PNOC.

Commercial Activities - any activity ot series of activities regularly engaged in
as a means of livelihood or with a view to profit.

Bnergy Projects — refer to activities or projects relative to the exploration,
extraction, production, impottation-exportation, processing, transportation,
marketing, distribution, utilization, conservation, stockpiling, or storage of all
forms of energy products and resources.

‘Energy-Allied Activities — tefer to energy marketing, distribution and

engineering;

(a) Energy marketing — includes trading and/or storage/stockpiling of fuel

sources, such as, coal, crude, petroleum products, natural gas products,
agti-based and other alternative and renewable energy sources;

(b) Energy distribution — includes transporting and conveying fuels like
petroleum products, natural gas products, agri-based and other
alternative and renewable energy sources;

(c) Energy engineering ~ includes thie fabrication, manufacturing and

- installation of equipment and facilities used in energy exploration and
development.

Enetgy-Related Infrastructure Projects — refer to projects, activities,

undertakings concerned with the transportation of energy to consumets and
include facilities that turn raw natural resources into useful enetgy products.

Industrial Estate — refers to the parcel of land described in Presidential
Proclamation No. 361 dated Match 6, 1968 as amended by Proclamation No.
630 and covered by RA 10516.

Industrial Park — refers to the Industrial Estate and all other parcels of land
belonging to PAFC (Le. land under PD 1803 S.1981) situated in Limay and

Mariveles, Bataan.
Lessee — a tenant under a lease agreement with PAFC.

Locator Agreement — the agreement between PAFC anda proponent for the
lattet’s establishment and operation of its project, business, activity in

PAFC’s Industrial Park.

Locator — The holder of a locator agteement as purchaser ot lessee of a

parcel of land for the purpose of establishing any of the allowable projects,
industries, activities.

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Section 4.

Section 5,

Section 6,

Section 7.

3.13 Petrochemicals — compounds and polymers derived directly or indirectly
from petroleum and used in the chemical market.

3.14 Petrochemical related industries — Include those industties and activities:

(a) that utilize petrochemicals and/ot its derivatives in their manufacturing
ptocess;

(b) whose end products contain petrochemicals and/or its derivatives but
cannot be classified as petrochemical downstream industry;

(c) whose products and/or services ate direct ot indirect outputs in
processing petrochemicals and theit derivatives such as industrial gasses
and power to run the plants;

(d) that re-process, treat, recycle, destroy petrochemicals, its detivatives and
other industrial wastes;

(ce) that handle, process, destroy, recycle, convert ptoducts with
petrochemical components as well as waste coming from manufacturing
ptocesses of industries within the Park.

3.15 Programmatic Environmental Compliance Certificate or PECC ~ refers to
PECC No. 0104-178-104 dated September 13, 2002 issued by the
Department ‘of Environment and Natural Resoutces (DENR) and
subsequent amendments, supplements and substitutes thereto. ,

RULE 2 | .
OPERATION, MANAGEMENT & ADMINISTRATION

PNOC. The PNOC, pursuant to its duty to manage, operate and develop the
subject parcel of land as an industrial zone has otganized PAFC (formerly PNOC-
Petrochemicals Development Corporation) and has assigned ownership of the above
Industrial Estate to PAFC via Deed of Assignment dated August 11, 1994.

PAFC. PAFC, as owner of the Industrial Estate shall manage, operate and develop
the Industrial Estate property in accordance with RA 10516 and these Implementing
Rules and Regulations. For this purpose, PAFC shall be responsible for the updating
and revision of the Industrial Estate’s Development/Land Use Plan consistent with

_ the Purpose of Land Use as provided for under Section 2 of RA 10516 and these

tules, provided such update and revision shall be apptoved by the PNOC.
Processing of Applications. The ptocessing of applications for lease/ locatorship
shall be in accordance with policies, rules and regulations set by PAFC and those

stipulated in its Industrial Park Guidebook provided that they are consistent with
that of PNOC.  -

Specific Prohibitions. The following projects, industries, activities shall not be
permitted on any property subject to this IRR:

TA Commercial excavation of construction materials;

7.2. Unauthorized stockyards, storage, slaughter houses, junkyards;

73 Farming, Crop Planting, Poultry raising, livestock raising / grazing and all

other agricultural activities;

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Section 8.

_ Section 9,

Section 10.

Section 11.

~ Section 12.

7.4 Other acts or activities which may be considered illegal or reasonably
prohibited by PAFC fromi time to time in accordance with existing laws, rules
and regulations.

RULE 3
EXPROPRIATION

_PNOC may, upon recommendation of PAFC exetcise its right of eminent domain

under Section 5(0) of Presidential Dectee No. 334 as amended, over any private

tights existing on the above parcel of land as provided for under Section 1 of RA
10516.

RULE 4
POWER TO AMEND RULES

The DOE and PNOC may amend, alter, supplement, suspend, modify of revoke

these Rules or any portion thereof as may be necessary; provided, however, that

patties directly: affected thereby shall have been properly notified and given the
opportunity to present theit views.

RULE 5
FINES AND PENALTIES

PAFC shall impose administrative fines and penalties against any person, party ot
industry/locators for anty violation of all the: tules set for the establishment,

' management and operation of the Park.

RULE 6
SEPARABILITY

If any provision of these rules is declared invalid or unconstitutional, the other

provisions not.affected thereby shall remain valid and subsisting.

RULE 7
EFFECTIVITY

These tules shall take effect thirty (30) calendar days after its publication in a

Newspaper of General Circulation and upon filing with the. University of the
Philippines Law Center. .

Signed this day of June 2013 at the DOE, Energy Center, Rizal Drive, Bonifacio
Global City, Taguig, Metro Manila,

el

CARLOS)JJERICHO L. PETILLA
 Skcretary of Energy

Bon 28 Republi 1 the Philippi
ee DEPARTMENT OF ENERUY
wa

IN REPLYING PLS CITE:

Recommeing afro cu

avtio Menino JUNO6 2013

PNOC President & CEO

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