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c. Facility Security Risk Assessment and Management Plan; and
d. Disaster/Emergency Preparedness and Response Plan.

RULE Vil
DOWNSTREAM NATURAL GAS REVIEW AND EVALUATION COMMITTEE

Section 26. Creation and Functions of the Downstream Natural Gas Review and
Evaluation Committee.

This Circular authorizes the creation of the DNG-REC which shall perform the
following functions:

a. Receives, evaluates, and recommends to the DOE Secretary or the DNG-REC
Chair, as applicable, the approval of DNG Industry Permits, endorsements and
other issuances;

b. Recommends to the DOE Secretary policies and programs geared towards the
promotion and development of the DNG industry;

c. Recommends to the DOE Secretary the standards or codes for product, facility,
and safety practices for the DNG Industry's compliance with requirements on
siting, construction, operation and maintenance, modification, expansion,
rehabilitation, decommissioning and abandonment of DNG Facilities;

d. Supervises and monitors the progress of siting, construction, operation and
maintenance, modification, expansion, rehabilitation, decommissioning and
abandonment of DNG Facilities based on the approved work program, and
imposes penaities for non-compliance with such work program;

e. Addresses any clarification that may be raised by the DOE Secretary in
connection with recommendations for approval of Philippine technical
regulations, Permits, implementing policies and programs; and

f. Implements all other necessary measures under existing laws, rules and
regulations
RULE VIII
TRANSITORY PROVISIONS

Section 27. Existing Permits and Accreditations.

Current Operators and Participants shall continue to operate under their existing
Permits or Accreditations. They shall comply with any additional requirements within
six (6) months from the effectivity of this Circular.

Participants who have entered into NGSPAs with End-Users and have delivered
Indigenous or imported Natural Gas prior to the effectivity of this Circular shall continue
to operate under said contracts subject to compliance with the additional requirements
in this Circular.

Section 28. Pending Applications.

This Circular shall apply to all applications which are pending as of its effectivity.
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RULE IX
FINAL PROVISIONS

Section 29. Confidential Information.

The DOE shall not allow the release of any confidential information obtained under
this Circular unless with the consent of the Operator or Participant or as may be
allowed by law or court order.

Section 30. Insurance Policy.

The Operator shall secure an insurance policy to be provided to the DOE within sixty
(60) days from the date of issuance of the PTC, PTE, PTR, PTM or POM to adequately
cover/answer for any potential damage to the environment, lives, and/or property, in
accordance with existing laws, rules and regulations based on the environmental
(land, air, water, and people) impact identification, prevention and mitigation
assessment and the seismic, geologic, Oceanographic, atmospheric and security
hazard to infrastructure and process identification, prevention and mitigation
assessment.

Section 31. Decommissioning and Abandonment.

No DNG Facility shall be abandoned or decommissioned by the Operator without
obtaining prior written authorization from the DOE and approval by the DOE of an
abandonment and decommissioning plan based on Philippine or Internationally
Accepted Standards. The Operator shall complete all abandonment and
decommissioning activities in accordance with the approved abandonment and
decommissioning plan, without prejudice to DENR rules and regulations.

Section 32. Assignment or Transfer of Operatorship.

Assignment of the Permit or change of the Operatorship shall be allowed Only upon
prior written approval of the DOE Secretary subject to the full assumption by the
assignee of all obligations of the current Operator and compliance with the legal,
technical, and financial qualifications for an Operator in accordance with the
Guidelines for Issuance of Operator's Permit.

Section 33. Incentives.

DNG Industry projects shall be Subject to Title XIH (Tax Incentives) of RA 8424,
otherwise known as the “National Internal Revenue Code of 1997”, as amended.

Section 34. Violations and Penalties.

A violation is committed by an Operator or Participant for non-compliance with:

a. Any section or rule of this Circular;

b. Any condition of a Permit, Accreditation, or any other approvals of the DOE; or
c. Any relevant order of the DOE.

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Commission of a violation shall be subject to the imposition of penalties by the DOE
in accordance with existing laws. Each day of non-compliance shall be considered a
separate violation.

In addition, the DOE may suspend or cancel the Permits, Accreditations or any other
approvals issued under this Circular including recommendations for the cancellation
of relevant permits, licenses, and clearances from the other Government Agencies.

Section 35. Enforcement of Rules.

The DOE shall conduct investigations motu proprio or upon receipt of a complaint in
writing and under oath of any allegation of violation under Section 34 of this Circular.
Department Circular No. 2002-07-004, otherwise known as the Rules of Practice and
Procedure, before the DOE shall be observed, if necessary.

Section 36. Repealing Clause.

Department Circular No. 2017-11-0012 or the Rules and Regulations Governing the
Philippine Downstream Natural Gas industry and all other rules and regulations or
parts thereof, which are inconsistent with the provisions of this Circular are hereby
repealed or modified accordingly.

Section 37. Separability Clause.

Should any provision of this Department Circular be subsequently declared invalid or
unconstitutional, such parts not affected thereby shall remain in full force and effect.

Section 38. Effectivity. This Circular shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation. A copy of this Circular
shall be filed with the University of the Philippines Law Center — Office of the National
Administrative Register.

Issued this JAN | ? 2024 at the DOE, Energy Center, Rizal Drive cor. 34th
Street, Bonifacio Global City, Taguig City, Metro Manila.

a. a Gisee
RAPHAEL P.M. LOTILLA
Secretary

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ANNEX A
GUIDELINES FOR ISSUANCE OF OPERATOR’S PERMIT

Section 1. Coverage.
These Guidelines shall apply to the determination of the legal, technical, and financial

qualifications of an Applicant, the evaluation of applications and the grant of Permits referred
to in Section 11, Rule IV of this Circular.

Section 2. Downstream Natural Gas Review and Evaluation Committee (DNG-REC).

The DNG-REC is hereby constituted to carry out the responsibilities as set forth in Section
26, Rule VII of this Circular and shall be composed of the following:

Chair : Supervising Undersecretary, Oil Industry Management Bureau

(OIMB) or as otherwise designated by the DOE Secretary
Vice Chair : Supervising Assistant Secretary, OIMB or as otherwise designated
by the DOE Secretary

Members : Director, OIMB
: Director, Legal Services (LS)

Director, Financial Services (FS)

Section 3. Responsibilities of the DNG-REC.

a. Receives, evaluates and recommends to the DOE Secretary or the DNG-REC Chair, as
applicable, the approval of DNG Industry Permits, endorsements and other issuances;

b. Recommends to the DOE Secretary policies and Programs geared towards the
promotion and development of the DNG industry;

c. Recommends to the DOE Secretary the standards and codes for product, facility, and
safe practices for DNG Industry's compliance on siting, construction, operation and
maintenance, modification, expansion, rehabilitation, decommissioning and
abandonment of DNG Facilities;

d. Supervises and monitors the progress of siting, construction, operation and
maintenance, modification, expansion, rehabilitation, decommissioning and
abandonment of DNG Facilities based on the approved work program, and imposes the
applicable penalty for non-compliance thereof;

e. Addresses any clarification that may be raised by the DOE Secretary in connection with

recommendations for approval of Philippine technical regulations, Permits,
implementing policies and programs; and

f. Implements all other necessary measures allowed under existing laws, rules and
regulations.

Section 4. DNG-REC Secretariat.
The DNG-REC Secretariat shall assist the DNG-REC i
and shall be composed of the following:

n the discharge of its responsibilities

Head : Assistant Director, OIMB
Members : Head, Natural Gas Management Division, OIMB

Head, Downstream Conventional Energy Legal Services Division,
LS

Head, Conventional Energy Resources Division, FS

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Section 5. Special Evaluation Committee or Technical Working .
The DNG-REC shail recommend to the Secretary the creation of a Special Evaluation
Committee or TWG to support the DNG-REC in the implementation of these Guidelines.

Section 6. Application Procedure.
6.1. Notice To Proceed (NTP
a. Pre-application Conference.

4. The Applicant shall submit a letter-request for a pre-
addressed to the DNG-REC Chair.

application conference

2. The DNG-REC shall, within three (3) working days from receipt of the letter-
request, send a letter-reply to the Applicant stating the schedule of the pre-
application conference.

3. During the pre-application conference, the Applicant shall present the
general project concept to the DNG-REC and discuss any clarification on the
rules and requirements of the Permit application.

b. NTP Application
. The Applicant shall submit the application with all the prescribed
documentary requirements to the DNG-REC.

. Upon receipt of the application, an initial evaluation of the submission of
complete documentary requirements shall be conducted prior to payment of
the processing fee.

. The DNG-REC Secretariat shall, within fifteen (15) calendar days from
receipt of the application, evaluate, resolve and inform the Applicant whether
or not it has completely submitted the documentary requirements.

Incomplete submission shall require further submission of lacking

documents.

. For the complete application, the DNG-REC shall conduct, within forty-five

(45) calendar days, the legal, technical, and financial evaluation and shall
then recommend for approval of the DNG-REC Chair the issuance or non-
issuance of the NTP.

. The DNG-REC Chair shall, within fifteen (15) calendar days from the date of
receipt of the DNG-REC recommendation, approve or disapprove the
issuance of the NTP.

. The DNG-REC Chair may, within an appropriate additional period given to

the DNG-REC, consistent with the applicable periods under the EVOSS Act,
require further explanation, clarification, or re-evaluation of the
recommendation.

. The Applicant shall be given an NTP period of one (1) year from the date of
issuance of the NTP.

a. Before the end of the NTP period, the Applicant shall submit the application for
the issuance of PTC, proof of compliance to the NTP Conditions, and other
prescribed documentary requirements to the DNG-REC.
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b. Upon receipt of the application, an initial evaluation of the submission of
complete documentary requirements shall be conducted prior to payment of the
processing fee.

. The DNG-REC Secretariat shall, within fifteen (15) calendar days from receipt of
the application, evaluate, resolve and inform the Applicant whether or not it has
completely submitted the documentary requirements. incomplete applications
shall require further submission of lacking documents.

. For the complete application and upon validation of the fulfillment of the NTP
Conditions, the DNG-REC shall conduct, within forty-five (45) calendar days, the
legal, technical, and financial evaluation and shall then recommend for approval
of the DOE Secretary the issuance or non-issuance of the PTC as an authority
for the Operator to proceed with the construction of the proposed DNG Facilities.

. The DOE Secretary shall, within fifteen (15) calendar days from the date of
receipt of the DNG-REC recommendation, approve or disapprove the issuance
of the PTC.

The DOE Secretary may, within an appropriate additional period given to the
DNG-REC consistent with the applicable periods under the EVOSS Act, require
further explanation, clarification, or re-evaluation of the recommendation.

. The validity of the PTC will be based on the approved project baseline schedule
submitted by the Operator.

6.3. Permit to Operate and Maintain (POM
a. Within thirty (80) working days from the mechanical completion of the DNG
Facility, the Operator shall submit the application for POM with all the prescribed
documentary requirements to the DNG-REC.

. Upon receipt of the application, an initial evaluation of the submission of
complete documentary requirements shall be conducted prior to payment of the

processing fee. Incomplete application shall require further submission of lacking
documents.

The DNG-REC Secretariat shall, within fifteen (15) calendar days from receipt of
the application, evaluate, resolve and inform the Operator whether or not it has
completely submitted the documentary requirements. Incomplete application
shall require further submission of lacking documents.

. Within fifteen (15) calendar days from issuing the notice of complete application,
the DNG-REC, in coordination with the IA-HSSE IMT, shall conduct an onsite
verification of the mechanica! completion of the DNG facility, completion of the
final testing and commissioning requirements under the Engineering,
Procurement, and Construction (EPC) Contract, and compliance with applicable
regulations.

. After the onsite verification, the DNG-REC shall conduct, within thirty (30)
calendar days, the legal, technical, and financial evaluation and shail then
recommend for approval of the DOE Secretary the issuance or non-issuance of
the POM as an authority for the Operator to proceed with the operation and
maintenance of the DNG Facilities.

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The DOE Secretary shall, within fifteen (15) calendar days from the date of
receipt of the DNG-REC recommendation, approve or disapprove the issuance
of the POM.

. The DOE Secretary may, within an appropriate additional period given to the
DNG-REC consistent with the applicable periods under the EVOSS Act, require
further explanation, clarification, or re-evaluation of the recommendation.

. The POM shall be valid for a maximum period of twenty-five years from the date
of issuance of the POM.

6.4. Permits to Expand (PTE), Rehabilitate (PTR),
Decommissioning and Abandonment

a. The Operator shall submit the application for the PTE, PTR, PTM or Permit for
Decommissioning and Abandonment with all the applicable documentary
requirements to the DNG-REC.

Modify (PTM), and for

. Upon receipt of the application, an initial evaluation of the submission of
complete documentary requirements shall be conducted prior to payment of the
processing fee. Incomplete application shall require further submission of lacking
documents.

The DNG-REC Secretariat shall, within fifteen (15) calendar days from receipt of
the application, evaluate, resolve and inform the Operator whether or not it has
completely submitted the documentary requirements. Incomplete application
shall require further submission of lacking documents.

. For the complete application, the DNG-REC shall conduct, within forty-five (45)
calendar days, the legal, technical, and financial evaluation, and, if necessary,
an onsite inspection, and shall then recommend for approval of the DNG-REC
Chair the issuance of non-issuance of the Permit.

. The DNG-REC Chair shall, within fifteen (15) calendar days from the date of
receipt of the DNG-REC recommendation, approve or disapprove the issuance
of the Permit.

The validity of the Permit will be based on the approved project baseline
schedule submitted by the Operator.

6.5. —_ Approval of Permit Extension

a. Before the expiration of any other Permit, the Operator may request for an
extension thereof before the DNG-REC but only for justifiable reasons, subject
to the following conditions:

1. That the Operator shall notify the DNG-REC in writing, with the details and
proof of the existence of the ground for extension and the actions taken to
resolve it; Provided, that for Force Majeure events, the notification should be

made within (30) days from knowledge of its existence or occurrence; and

. The Operator satisfies the DNG-REC of its proposed work program and
funding commitments to warrant the extension.

The grounds for extension shall include the following:
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. There is a Force Majeure case;

. Non-issuance of a government permit or clearance without negligence or
fault of the Applicant or Operator; and

. Other justifiable reasons that prevent the Operator from complying with its
work commitments.

The Operator shall then be given an extended period equivalent to the approved
amended work program supporting the extension.

b. The POM shall be renewable for another twenty-five (25) years, subject to the
following conditions:

1. That the Operator continues to be legally, technically and financially
competent and the DNG Facilities are in good working condition for the
renewal period; and

. That the Operator shall submit the renewal application at least six (6) months
before the expiration of the POM.

Section 7. Documentary Requirements.
7.1. __ General Information.
. The Applicant shall refer to any Filipino and/or foreign citizen or Filipino and/or

foreign-owned corporation, which is authorized for the purpose of engaging in
the operation of a DNG Facility and wishes to secure any Permit under these
Guidelines.

A foreign-registered Applicant shall submit its legal, technical, and financial
documents in English language, duly authenticated by competent authority,
including the embassy which has operational coverage of the Philippines.

. The application must be submitted in both hard copies, with three (3) complete
and legible sets of legal, technical, and financial documents, and digital copies
(in PDF format on a USB drive). The recommended format includes the use of
the Times New Roman font in size 12, single-line spacing, figures in A4 size,
and maps at an appropriate scale.

. Anon-refundable processing fee, in accordance with the latest DOE approved
schedule of fees and charges (Annex A-1), shall be paid by the Applicant upon
receipt of complete submission of documentary requirements. Payment may be
made in cash, manager/company check, or by wire/bank transfer payable to the
Philippine Department of Energy. All payments should be net of all applicable
foreign and local bank and financial charges. An application is not considered
accepted by the DOE until the full processing fee is paid.

. The application shall be sent by courier or registered mail, or hand-delivered and
stamped-received by the DOE Records Division. It shall be addressed to:

The Chair
Downstream Natural Gas - Review and Evaluation Committee (DNG-REC

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Department of Energy
Energy Center, Rizal Drive, Bonifacio Global City, Taguig City
Metro Manila, 1632

Philippines

7.2. _ Documentation
The Applicant or Operator shail submit the following documents to the DNG-REC,
which shall keep all such documents and other information forming part of an
application confidential in accordance with Section 29, Rule IX of this Circular:

i. _Legal Documentation
1. Duly filled-out covering information sheet showing a brief profile of the
Applicant (Annex A-2);

2. Certified true copies of the Securities and Exchange Commission (SEC)
Certificate of Registration or License to Do Business in the Philippines
for foreign corporations, Articles of Incorporation and By-Laws. The
corporate purpose of the Applicant shall include authority to construct
and operate DNG Facilities [Certificate of Registration from the

Department of Trade and Industry for sole proprietorships];

3. Certified true copy of the updated General Information Sheet (GIS) of the
Applicant and stamped-received by the SEC within twelve (12) months
from date of the filing of application; and

. Original copy of the Secretary’s Certificate showing authority of the
Applicant’s representative to apply, negotiate, sign, and execute
documents in relation to the application.

The DNG-REC, at its discretion, may require the submission of the above-
mentioned corporate documents of the Applicant’s Parent Company/ies.

ii. Technical Documentation
1. Applicant Profile

The Applicant shall submit a duly notarized description of its business
activities, experience, and technical capability relevant to carrying out the

proposed project and if necessary, including that of its Affiliate/s,
specifically:

a. Asummary of the company profile, business direction, strategy, and
major accomplishments in the DNG Industry;

. Information on Applicant company and its subsidiaries, joint ventures,
and affiliates for the proposed project:

i. Organizational chart of Applicant company and its subsidiaries,
joint ventures, and Affiliates;

The Applicant company and its subsidiaries, joint ventures, and
Affiliates’:

- Complete name;

- Scope of work;

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Purpose;
Resident agent, as applicable; and
- Specialization/ expertise/ experience;

iii, Executive officers of the Applicant company and its subsidiaries,
joint ventures, and Affiliates’:
- Complete name;
- Nationality;
- Position/ role;
- Specialization/ expertise/ experience; and
- Certifications/ trainings;

. Asummary and description of all gas-related projects completed and

pending, if any, for at least the past three (3) years preceding the date
of the application including the assessment of the performance of
their construction, operation, and economic feasibilities;

. Description of the qualifications and experience of key management,

professional and technical personnel in the DNG Facility
construction, operation and maintenance;

. Disclosure of any pending or finally determined major safety or

environmental enforcement actions by relevant authorities;

If Applicant's Affiliate's Parent Company's technical capability will be
used, the Secretary's Certificate from said Parent Company
confirming the existence of a board resolution authorizing the
commitment of the identified technical capability to the proposed
project; and

. Other information that the Applicant may deem necessary to support

its application or as may be required by the DNG-REC.

. Construction Plans and Designs

b.

General project description;

Feasibility study of the LNG or Natural Gas project;

. Siting;

Applicant shall comply with the following minimum requirements:

i. Classified as Heavy Industrial Zone;
ii. No relocation/ resettlement of local residents; and
iii, Adequate exclusion zone;

. Locational Zoning clearance subject to the local government zoning

ordinance;

. Quantitative risk assessment report for safe distance requirements;

Environmental (land, air, water and people) impact identification,
prevention and mitigation assessment report of the proposed

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infrastructure and processes on the proposed site consistent with the
Philippine Environmental Impact Statement System (EISS) Law and
its implementing rules;

. Geologic, oceanographic, seismic, atmospheric, and security hazard
identification, prevention and mitigation assessment report such as
but not limited to;

Offshore Wind and Wave Study;
Wave Transformation Modeling Study;
Hydrodynamic (Flow) Modeling Study;
. Navigational Simulations (Fast-time);
. Simplified Downtime Assessment;
i. Tsunami Modeling Study;
ii. Typhoon Modeling Study;
viii. Quantitative Risk Assessment; and
ix. Other related studies;

. Source of power supply for the construction, testing, commissioning
and operation of the proposed LNG facility;

Front End Engineering Design (FEED) and detailed building and
equipment plans and designs (as developed during FEED and
together with evidence of completion of the FEED stage) and their
corresponding work program and budget;

i. Conceptual plans and designs of buildings, other facilities and

equipment, with descriptions and flow diagram of their
construction and installation processes including the integrity and
safety engineering methods and technology applied with due
consideration of the results of the assessments made from item
a above;
Summary list with sufficient description of the Philippine or
Internationally Accepted Codes and Standards specifically used
as basis on the formulation of the plans and designs for the
construction of buildings and other facilities and the installation of
equipment including the materials used therein;

iii. Planned construction schedule; and

iv. Plot Plans and list of key buildings, other facilities, equipment,
access roads, safety zones and distances;

Detailed description of the professional Project Management Team
for construction, installation, testing and commissioning in the form of

organizational chart indicating the groups/sections and their roles,
functions, scope of work, etc.;

. Asummary report prepared by the Applicant on other Government
Agencies’ permitting requirements before construction and before
operation; and

Other relevant studies or assessment reports that the Applicant may
deem necessary to support its application or as may be required by
the DNG-REC.

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iii. Financial Documentation
1. The Applicant shall submit the following:

a. Financial Feasibility Study; and

b. Work Program & Budget indicating the Applicant’s ability to meet
funding requirements.

2. Supporting Documents
a. Financial Statements (FS);

i. For corporations existing for more than two (2) years at the time
of filing of application:

- A certified true copy of the Annual Report or Audited FS for
the last two (2) years from the date of the Application and the
latest Unaudited FS duly signed by the President and/or Chief
Finance Officer of the company where the Cash Balance
indicated in the Unaudited FS must be substantiated by Bank
Certification;

For newly-organized corporations existing for less than two (2)

years at the time of filing:

- A certified true copy of the Annual Report or Audited FS or
latest Unaudited FS duly signed by the President and/or Chief
Finance Officer of the company where the Cash Balance

indicated in the Unaudited FS must be substantiated by Bank
Certification;

. Three (3)-Year Projected Cash Flow Statement indicating positive

cash flows to support the construction, expansion, or modification of
the project, when applicable;

Particulars on the plan of raising funds through any or combination of
the following:

i. For Debt Financing
- Loan agreements
- Approved term loan facility
- Existing available credit lines

ii. For Equity
- Internally Generated Fund

e Certified true copy of Board Resolution Appropriating
Funds for Construction and Operation from Retained
Earnings
Documents to Support Additional Shareholders’ Capital
Infusion, i.e., Additional Paid-Up Capital, as approved by
the SEC

Funds from Parent Company and/or Affiliates
e Audited FS of the Parent Company and/or Affiliates: and

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e Board Resolution and Deed of Undertaking Indicating
Fund Allocation to the Project based on its corresponding
participating interest.

i. Legal Documentation

. Applicable regulatory permits from the Department of Environment and
Natural Resources (DENR) which includes the Environmental
Compliance Certificate (ECC) from the DENR;

. Applicable Endorsement and Building Permits from the Local
Government Unit (LGU);

. Certificate of Non-Overlap or Certificate of Pre-Condition (CP) from the
National Commission on Indigenous Peoples (NCIP);

. Registration from the Department of Labor and Employment (DOLE);

. Fire Safety Evaluation Clearance from the Bureau of Fire Protection
(BFP);

. Sanitary Permit from the City Health Office; and
. Other permits as may be required by law or rules.

ii. Technical Documentation
1. Construction Plans and Designs

a. Description of the actual DNG Facility for construction and its
operational model;

. Detailed Engineering Design which should include but not be limited
to Plot Plans and list of key buildings, other facilities,
equipment/component, access roads, safety zones and distances;

Execution programme for the proposed facility;

i. A full detail of the arrangements and methods which the
applicant/operator proposes to adopt for the execution of the
works and milestones;

ii. The document shall provide a detailed plan for the complete
works or Milestones comprising of:

- Detailed Engineering Design, procurement, delivery, and civil
works;

- Erection and constructional works;

- Detailed execution works including start and completion dates
for each milestone; and

- Pre-commissioning and commissioning tests and start up for
works and milestones;

iii. For the ease of project progress and schedule monitoring, activity

network diagram and chart, the Applicant shall use Primavera P6

project management or MS Project or equivalent program as
scheduling tools;

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. Interface schedule (if any);
. Progress Measurement System (PMS);

Manpower and construction equipment histograms;

Resource histograms shall indicate the monthly resource
requirements that the Operator plans to deploy over the duration of
the project.
. Management of change system;

. Maintenance of records system;

A summary of the execution plan for the establishment of a
professional Project Management Team for construction, installation,
testing and commissioning;

Detailed description of the Project Management Team for Natural
Gas projects including the following information on organizational
chart such as:

. Complete name;
ii. Nationality;

iii. Position;

iv. Qualification;

v. Specialization/ expertise;
vi. Experience;

vii. Role/ responsibilities; and
viii. Certifications/ trainings;

Third party quality assurance program validation:

i. Safety and Quality Assurance Certifications of the plans and
designs of the buildings, other facilities, and equipment to be
installed;

ii. Safety and Quality Assurance Certifications of the materials to be
used on the construction, facilities, and equipment; and

iii. Safety and Quality Assurance Certifications of the applied

engineering and technology for the construction, installation and

operation of the buildings, facilities, and equipment;

Required contracts;

Certified executed copies, which may be redacted for confidentiality
reasons, of all key binding agreements required for the development
of the proposed project including but not limited to EPC agreements;

Health, Safety, Security and Environment (HSSE) Risk Assessmerit
and Management Plan (Construction and Equipment Installation
Phase);

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Submission of HSSE Management Systems, management and
employee structure, manpower complement, qualification and
competency / training development program and mitigation plans to
address the risks at ALARP levels in the following areas:

i. Environmental Risk Assessment and Management Pian

Consistent with the Philippine environmental regulations and/or
International Standard, a comprehensive assessment and
management program shall be established to address project-
specific risks and potential impacts to the environment.

Potential environmental issues associated with the construction
and installation of LNG equipment which include, but are not
limited to, the following:

- Threats to aquatic and shoreline environments;

- Hazardous material management;

- Wastewater;

-  Aijr emissions;

- Waste management; and

Noise.

Occupational Health and Safety Risk Assessment and
Management Plan

Occupational health and safety issues shall be part of a
comprehensive hazard identification, risk assessment and
management study which include but is not limited to Hazard
Identification study (HAZID), Hazard and Operability study
(HAZOP),.and qualitative and quantitative risk assessments shall
be conducted as appropriate. The results of these studies shall
be used as input to the Health and Safety Plans (HASP) specific
to construction and equipment installation phases. The HASP
shall include but is not limited to environmental and safety
processes, and safe systems of work/ procedures which shall be
prepared, communicated and implemented to manage the risks.

Occupational health and safety issues associated with the
construction and installation of DNG Facilities which include, but
are not limited to, the following:

~ Fire and explosion;

- Roll-over;

~ Contact with cold surfaces;

- Chemical hazards;

- Confined spaces;

- Working at heights;

- Lifting and rigging;

- Excavation; and

Other construction and installation related hazards.

iii. Facility Security Risk Assessment and Management Plan

Facility security assessment shall be conducted to identify threats
which include but is not limited to criminal and terrorist. The

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vulnerability of the facility/ location against identified threats shall
likewise be assessed and corresponding plans shall be put in
place.

iv. Disaster/ Emergency Preparedness and Response Plan

Based on the HSSE assessment, a plan shall be put in place to
prevent, mitigate, respond to, and maintain continuity from an
incident that threatens life, property, operations and the
environment. Incident as defined is anything that has the potential
to cause interruption, disruption, loss, emergency, crisis, disaster
or catastrophe.

v. Other areas of concern that the Operator may deem necessary

ii. Financial Documentation
1. The Applicant shall submit the following:

a. Updated Financial Feasibility Study; and

b. Updated Work Program & Budget indicating the Applicant's ability to
meet funding requirements.

2. Supporting Documents
a. Financial Statements (FS);

i. For corporations existing for more than two (2) years at the time
of filing of application:

- A certified true copy of the Annual Report or Audited FS for
the last two (2) years from the date of the Application and the
latest Unaudited FS duly signed by the President and/or Chief
Finance Officer of the company where the Cash Balance
indicated in the Unaudited FS must be substantiated by Bank
Certification;

For newly-organized corporations existing for less than two (2)

years at the time of filing:

- A certified true copy of the Annual Report or Audited FS or
latest Unaudited FS duly signed by the President and/or Chief
Finance Officer of the company where the Cash Balance

indicated in the Unaudited FS must be substantiated by Bank
Certification;

. Three-Year Projected Cash Flow Statement indicating positive cash
flows to support the construction, expansion, or modification of the
project, when applicable;

Proof of ability to raise funds through any or combination of the
following:

i. For Debt Financing
~ Loan agreements;
~ __ Approved term loan facility; and

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- Existing available credit lines;

li. For Equity
- Internally Generated Fund

e Certified true copy of Board Resolution Appropriating
Funds for Construction and Operation from Retained
Earnings; and
Documents to Support Additional Shareholders’ Capital
Infusion, i.e., Additional Paid-Up Capital, as approved by
the SEC.

- Funds from Parent Company and/or Affiliates
e Audited FS of the Parent Company and/or Affiliates; and
e Board Resolution and Deed of Undertaking Indicating
Fund Allocation to the Project based on its corresponding
participating interest.

Updated Permitting Requirements of Other Government Agencies for the
Operation of the Facility which shall include the following:

1. Applicable regulatory permits from the DENR which includes the ECC
from the DENR;

. Endorsement and Business Permits for Operation from the LGU;
. Registration and Permit to Operate from the DOLE;

. Fire Safety Inspection Certificate from the BFP;

. Sanitary Permit from the City Health Office; and

. Other permits as may be required by law or rules.

ii. Technical Documentation
1. Certificate of Completion;

This refers to the (a) Mechanical Completion Certificate; and (b) Testing
& Commissioning Certificate (upon successful completion of

performance test) signed by the EPC contractor with the conformity of
the Operator's project manager;

. Summary list of buildings, facilities and equipment;

. Operational process flow with diagram;
Description of operational process flow with diagram of building, facilities,
and equipment for testing, commissioning, operation, repair and
maintenance for DOE guidance and reference;

4. HSSE Risk Assessment and Management Plan (Operation Phase);

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Page 150

Submission of HSSE management systems, management and employee
structure, manpower complement, qualification and competency /
training development program and mitigation plans to address the risks
at ALARP levels in the following areas:

a. Environmental Risk Assessment and Management Plan;

Consistent with the Philippine environmental regulations and/or
International Standard, a comprehensive assessment and
management program shall be established to address project-
specific risks and potential impacts to the environment.

Potential environmental issues associated with the construction and
installations of LNG equipment which include but are not limited to
the following:

i Threats to aquatic and shoreline environments;
ii Hazardous material management;

iii Wastewater;

iv Air emissions;

v Waste management; and

vi Noise.

. Occupational Health and Safety Risk Assessment and Management
Plan;

Occupational health and safety issues shall be part of a
comprehensive hazard identification, risk assessment and
management.study which include but is not limited to HAZID,
HAZOP, and qualitative and quantitative risk assessments shall be
conducted as appropriate. The results of these studies shall be used
as input to the HASP specific to construction and equipment
installation phases. The HASP shail include but is not limited to
environmental and safety processes, and safe systems of work/
procedures which shall be prepared, communicated and
implemented to manage the risks.

Occupational health and safety issues associated with the
construction and installation of DNG Facilities which include but are
not limited to the following:

i. Fire and explosion;

ii. Roll-over;

iti. Contact with cold surfaces;

iv. Chemical hazards;

v. Confined spaces

vi. Working at heights;

vii. Lifting and rigging;

viii. Excavation; and

ix. Other construction and installation related hazards.

c, Facility Security Risk Assessment and Management Plan;

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Page 16 of 19

Facility security assessment shall be conducted to identify threats
which include but is not limited to criminal and terrorist. The
vulnerability of the facility/ location against identified threats shall
likewise be assessed and corresponding plans shall be put in place.

. Disaster/ Emergency Preparedness and Response Plan;

Based on the HSSE assessment, a plan shall be put in place to
prevent, mitigate, respond to, and maintain continuity from an
incident that threatens life, property, operations and the environment
which shall be developed in close coordination with the community,
local government unit and other stakeholders of the location where
they operate. Incident as defined is anything that has the potential to
cause interruption, disruption, loss, emergency, crisis, disaster or
catastrophe.

. Community social development program; and
These programs are intended to improve the well-being of the
community in the locality where the project is located on areas such
as health, education, livelihood and other programs that promotes
improvement of the lives and welfare of the community.

f. Other areas of concern that the Operator may deem necessary.

iii. In the event that the Operator will allow Third Party Access (TPA) of its DNG

Facility, the following shall be submitted to the DNG-REC for every
transaction:

. Notification for TPA including detailed description of the commercial

arrangement or terms of reference, whichever is applicable;

. TPAAgreement/s;
. Roles and responsibilities of the Operator and the third-party user or non-

Affiliate;

. Details of the Capacity subject for TPA; and
. Any other relevant information on the transaction.

d. Requirements for the Issuance of Permit for Decommissioning and
Abandonment

1.

fi.

Abandonment and Decommissioning Plan;

Philippine or Internationally Accepted Standards to be utilized during
implementation;

iii. A summary of the execution plan for the establishment of a professional

Demolition Project Team including but not limited to:

a. Construction Team is the Field Execution Team of the Demolition Project

and is responsible for overseeing the demolition works of the nominated
Demolition Contractor,

. Project HSSE Team provides support to the Construction Team in terms
of specialists HSSE advice;

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age 17 0

c. Operator and Special Project Team verify and issue Permits to Work at
the worksite; and

d. Demolition Contractor is responsible for providing the resources and
services required to dismantle and remove the natural gas line/ LNG
Facility.

Detailed description of the Demolition Project Team including the following
information on organizational chart such as:

Complete name;
Nationality;
Position;
. Qualification;
Specialization/ expertise;
. Experience;
ii. Role/ responsibilities; and
viii. Certifications/ trainings;

iv. References for Abandonment & Decommissioning (e.g. Construction Site
Safety Standardization (CSSS) Version 7 Part D: Decommissioning and
Demolition, International Associations of Oil and Gas Producers (IOGP)
Report No. 577: Fabrication Site Construction Safety Recommended
Practice- Hazardous Activities, International Associations of Oil and Gas
Producers (IOGP) Report No. 597: Fabrication Site Construction Safety
Recommended Practice-Enabling Activities);

. Demolition Plan covering dismantling and disposal;
i. Execution methodology (steps to be taken in removing DNG Facility);

ii. Work Method Statement and Job Hazard Analysis (JHA) related to the
demolition procedure and hazard mitigation measures;

. Post report after completion of the pipeline dismantling and related
components have been completely removed;

. Proof that other concerned/ related Government Agencies particularly the IA
HSSE-IMT, have been notified of the decommissioning and abandonment;

. Proof of degassing of pipeline/ LNG Facility;

i. Demolition Permit from the City/ Municipal Engineer's Office; and

ii. Ground ievel and aerial photos and videos of the DNG Facility and
components, and pipeline route right of way (ROVV) indicating date, time, and
longitude-latitude-altitude of photos and videos.

e. Requirements for the Assignment or Transfer of Permit or Operatorshin

i. Legal Documentation
1. Assignor's letter to the DOE Secretary, with attention to the DNG-REC

Chair, requesting approval for the assignment or transfer of Permit or
Operatorship with the reasons thereof;