# DC2017-11-0011 — Promulgating a Revised Rules and Regulations Governing the Business of Retailing Liquid Fuels ## Department Circular No. DC2017-11-0011 Signed/dated: "NOV 22 2017" date stamp on the signature page (rasterized page 20, since OCR rendered the stamp as garbage characters) — Secretary Alfonso G. Cusi. The "Done this ___" blank on the same page was left unfilled by DOE; the stamped date is used as the signing date. Effectivity: Fifteen (15) days from the date of complete publication in two (2) newspapers of general circulation (§36). Short title: "Revised Retail Rules" (§1). Also cited in the body as "Department Circular No. DC 2017-11-0011"; the numeral group is smudged/handwritten-over on every page header ("DC2017-_ll-OO ll" and similar), but is legible and consistent with the filename slug throughout. *(OCR note: this document was scanned and OCR'd in three parts — `dc2017-11-0011.txt` (pp.1–7), `dc2017-11-0011_2.txt` (pp.8–14), `dc2017-11-0011_3.txt` (pp.15–20) — plus two separately-scanned addenda reproduced near the end of this file. Running page-footer chrome ("Department Circular No. DC2017-11-0011 ... Promulgating a Revised Rules and Regulations Governing the Business of Retailing Liquid Fuels", "Page N of 20") is stripped throughout and not reproduced below.)* --- ## WHEREAS RECITALS 1. Republic Act (RA) 8479, the "Downstream Oil Industry Deregulation Act of 1998," mandates the Department of Energy (DOE) to promote fair trade practices, monitor marketing processes and the quality of Liquid Fuels, and stop the operation of businesses selling Liquid Fuels that do not comply with national quality standards. 2. Batas Pambansa Blg. (BP) 33, as amended by Presidential Decree No. (PD) 1865, and their Implementing Rules and Regulations, define and penalize prohibited acts inimical to national interest and public safety, including illegal trading in petroleum or Liquid Fuels, hoarding, adulteration, and underdelivering, among others. 3. DOE Department Circular Nos. 2003-11-010 and 2013-09-0021 establish the minimum requirements for operating Retail Outlets and prescribe the rules and regulations governing the quality of Liquid Fuels. 4. RA 9367, the "Biofuels Act of 2006," and its Implementing Rules and Regulations — specifically DC 2007-05-0006, DC 2011-02-0001, DC 2015-06-0007, and Joint Administrative Order No. 2008-1, Series of 2008 — direct the use of biofuels, including their sale and distribution, and prescribe fines and penalties for violations. 5. There are persons engaged in Retailing of Liquid Fuels who do not comply with safe and appropriate technologies, including the use of containers such as "bote-bote," aboveground storage tanks, and mobile Liquid Fuels dispensing pumps. 6. Retailing of Liquid Fuels is subject to permits and licenses from government authorities including, but not limited to, the Department of Environment and Natural Resources (DENR), the Bureau of Fire Protection (BFP), the Bureau of Internal Revenue, and Local Government Units (LGUs). 7. The safe and proper handling, transport, storage, installation, and use of equipment and facilities in the downstream oil industry are governed by pertinent national and international safety codes observed and adopted by the industry. 8. The continued use of unsafe and substandard retailing methods (i) exposes the public to fire, health, and environmental risks; (ii) denies the public the proper quality and quantity of Liquid Fuels purchased; (iii) constitutes unfair competition and deprives legitimate Retail Outlets of sales volume; (iv) deprives government of licensing-fee, local-tax, and pump-calibration revenue; and (v) encourages marketing of Liquid Fuels sourced from smuggling, pilferage, theft, and similar illegal activities. 9. Emerging technologies and economic developments are expanding the nature of the Liquid Fuels retailing business, which may include electric vehicle (EV) charging, battery swapping, among others. 10. DC 2003-11-010 and certain provisions of DC 98-03-004 (the Implementing Rules and Regulations of RA 8479 and of BP 33, as amended by PD 1865) need to be further clarified, supplemented, updated, amended, and/or repealed, particularly regarding the conduct of the Liquid Fuels Retailing business. --- ## RULE I — GENERAL PROVISIONS **Section 1. Title.** This Department Circular shall be known and cited as "Promulgating a Revised Rules and Regulations Governing the Business of Retailing Liquid Fuels" or the "Revised Retail Rules." **Section 2. Coverage.** The Revised Retail Rules apply to all persons engaged or intending to engage in the business of Retailing Liquid Fuels. **Section 3. Definition of Terms.** Except as provided below, terms used in the Revised Retail Rules have the same meaning as in DC No. 98-03-004, as amended (the Implementing Rules and Regulations of the Downstream Oil Industry Deregulation Act of 1998): a. **API** — the American Petroleum Institute. b. **Appropriate container** — portable containers that adhere to any existing international standard, specifically American Society for Testing Materials (ASTM) Designation F852-99 (Standard Specification for Portable Gasoline Containers for Consumer Use) and Designation F976-02 (Standard Specification for Portable Kerosene and Diesel Containers for Consumer Use), as well as designs to be subsequently established and issued by the Department. *(OCR note: recovered in full from the rendered page image; the OCR text truncated this definition to "...adhere to any existing ... and Diesel Containers for Consumer Use, as well as the designs to be subsequently...", dropping the ASTM designation numbers and titles.)* c. **BFP** — the Bureau of Fire Protection. d. **Bote-bote** — the manner of retailing and dispensing Liquid Fuels using soda bottles, plastic containers, jugs, aboveground tanks, portable tanks, road tankers or vehicles, or other similar portable containers not intended for storage of flammable Liquid Fuels, and/or the manner of retailing and dispensing Liquid Fuels using said containers. e. **Calibration** — the process of checking, adjusting, or determining by comparison with a standard the condition of the dispensing pump to ensure delivery of the accurate quantity of Liquid Fuels. f. **Company** — an oil company or an entity engaged in any or a combination of activities in the Downstream Oil Industry, other than purely operating a Retail Outlet. g. **Dispensing** — the act of transferring Liquid Fuels from the dispensing pump or "bote-bote" containers to the vehicles of motorists, end users, or other consumers. h. **Dispensing pump** — equipment used to deliver or dispense Liquid Fuels, installed in a forecourt/curb area within the Retail Outlet, composed of a dispensing nozzle and a volumetric meter. i. **DENR** — the Department of Environment and Natural Resources. j. **DOE** — the Department of Energy. k. **Field Offices** — the DOE Field Offices in Pangasinan (Luzon Field Office), Cebu (Visayas Field Office), and Davao (Mindanao Field Office), and any other field offices subsequently created. l. **LGU** — Local Government Unit. m. **Liquid Fuels** — gasoline, diesel, and kerosene. n. **NML** — the National Metrology Laboratory of the Department of Science and Technology - Industrial Technology Development Institute. o. **OIMB** — the Oil Industry Management Bureau of the Department of Energy. p. **Person** — any natural or juridical person engaged in any activity of the downstream oil industry. q. **PNS** — the Philippine National Standard. r. **Retailing** — the act of selling and/or dispensing Liquid Fuels by the Retail Outlet directly to motorists, end-users, or other consumers. s. **Retail Outlet** — also refers to a dispensing station, refilling station facility, or business establishment which sells or dispenses Liquid Fuels directly to motorists, end-users, or other consumers. t. **Retail Outlet Official** — the dealer, operator, owner, or proprietor of the Retail Outlet, or in their absence, the manager, supervisor, team leader, or any other responsible person acting as such. u. **Tank Truck** — any single self-propelled motor vehicle, with or without a trailer, equipped with a cargo tank mounted thereon or built as an integral part thereof, used for the transportation or handling of Liquid Fuels; otherwise known as a lorry or road tanker. v. **Test Measure** — a calibration bucket used to measure the quantity of Liquid Fuels. w. **UGT** — underground storage tank. --- ## RULE II — CERTIFICATE OF COMPLIANCE AND CERTIFICATE OF NON-COVERAGE **Section 4. Issuance of Certificate of Compliance (COC) and Certificate of Non-Coverage (CNC).** a. No person shall engage in or operate the business of Retailing Liquid Fuels without first securing a valid COC from the OIMB or its counterparts in the Field Offices. Persons engaged in the business but who have not secured, or have not submitted complete requirements for, a valid COC under DOE DC 2003-11-010 are considered new applicants covered by these Rules. The OIMB or Field Offices issue a COC for each Retail Outlet upon complete submission of, and full compliance with, the requirements of these Rules and payment of required fees. The OIMB or Field Offices may verify, validate, authenticate, and inspect all documents and information submitted, and may conduct field validation of a new Retail Outlet prior to COC issuance. b. Where an LGU requires a COC as a prerequisite to a Mayor's or Business Permit, a Certification may be issued to a new Retail Outlet solely for that purpose: *Provided,* that an authenticated copy of the Mayor's or Business Permit is submitted to the OIMB or Field Offices within thirty (30) days of the Certification's issuance, otherwise the Certification is deemed automatically revoked and the Retail Outlet must immediately cease operating. *Provided, further,* that a Certification may be renewed if there is a delay in issuance of the Mayor's or Business Permit. c. Storage and dispensing of Liquid Fuels for own-use operation is not covered by these Revised Retail Rules only upon issuance of a Certificate of Non-Coverage (CNC) by the DOE. "Own-use operation" refers to the operation of a motor vehicle fleet. A CNC is issued provided the establishment or entity ensures that: 1. It files with the OIMB or Field Offices a duly-acknowledged formal letter request for a CNC; 2. It presents a Feasibility Study indicating, among others, the number of vehicles and financial viability of the establishment; 3. It submits a valid Membership Agreement and latest Supply Agreement or Certification issued by an OIMB-registered distributor and/or supplier; 4. It presents pertinent LTO/LTFRB/LGU documents confirming its fleet; 5. It does not provide retailing services as defined in Section 3; 6. Its dispenser(s) do not have "money wheels" or "price indicators" (a "money wheel" being the price-indicating device of the dispensing pump showing the amount corresponding to volume dispensed); and 7. Its station dispenses Liquid Fuels only to the vehicles of its members, identified through a distinguishing mark on their vehicles and membership identification cards. Storage and dispensing of Liquid Fuels for own-use is subject to the extended responsibility of the Liquid Fuels distributor and supplier, who must ensure compliance of storage tanks and dispensing pumps with existing international and local standards. Notwithstanding issuance of a CNC, the OIMB and Field Offices may, at their discretion, monitor and conduct verification and validation of the establishment's operation. The CNC does not preclude compliance with PNS/DOE FS 1-1:2005 "Petroleum Products – Retail Outlet – Health, Safety and Environment" or with the requirements of other government agencies. **Section 5. Validity of the COC.** The COC is valid for five (5) calendar years from its effectivity date and remains in full force and effect unless sooner revoked or suspended under this Circular. **Section 6. Documentary Requirements.** An application for COC issuance, for each Retail Outlet, is filed under oath with the OIMB or Field Offices, in original form for verification (or duly-certified true copies if originals are not possible or warranted). Only applications with complete and valid supporting documents are accepted and processed. Where the applicant has proof of a pending application with other government agencies, the OIMB and Field Offices may accept and process the application, but the COC issues only upon submission of the government permits/clearances. a. **Application:** 1. A filled-up, duly-notarized application form stating: (a) business name, address, telephone/fax number, and e-mail address; (b) location and complete address of the Retail Outlet; and (c) name of dealer or retailer (sole proprietorship), partners (partnership), or authorized representative (corporation). 2. A Notice of Undertaking on liability for violations committed by the dealer, operator, owner, or proprietor. b. **Supporting Documents:** 1. Certification from distributor/supplier/dealer's agreement; 2. Notarized statement that the facility design and operation are PNS-compliant, signed by the Engineering Procurement Construction Contractor and the Dealer/Owner; 3. List of dispensing pumps/hoses and underground storage tank(s) with corresponding capacities; 4. Scaled lay-out plan showing island/dispensing pumps, underground storage tanks, cashier's booth, and other facilities; 5. Accomplished DOE Form on Undertaking; 6. Latest photographs (5R size) showing full/front, right, and left side views, including price display boards, safety informational signs, and required stickers/labels for RON, E-10, B-2, among others; 7. DOE SCC/COC Clearance of No Pending Case, as applicable; and 8. Payment of fee. c. **Reportorial Requirements.** Every person or entity engaged in the retailing business submits, under oath, every 30th day of January: (1) data on purchase and sales volume per Retail Outlet; and (2) an authenticated copy of the distributor/supplier/dealer's agreement, if the previous one has expired. Failure to comply with the Documentary Requirements is a violation of this Section, punishable under Section 29. **Section 7. Renewal of COC.** a. The Retail Outlet files for renewal not later than one (1) month before the COC's expiration date, submitting to the OIMB or Field Offices: a photocopy of the previous COC; DOE SCC/COC Clearance of No Pending Case, as applicable; payment of fee; and a Notice of Undertaking on resumption of liability for violations committed by the previous dealer, operator, owner, or proprietor. After expiration, any application to operate is treated as a new application. b. A change in dealership, retailership, ownership, or proprietorship of a Retail Outlet does not automatically transfer the previous Retail Outlet Official's COC to the new one. The new Retail Outlet Official must file for a new COC, submit pertinent documents, and pay required fees. **Section 8. Non-Issuance, Non-Renewal, Revocation, or Suspension of COC.** The OIMB or Field Offices may deny issuance or renewal of a COC, or revoke or suspend it, on any of the following grounds: (a) refusal to allow inspection; (b) failure to present required records during inspection or upon order (e.g., calibration record, product-delivery records showing distributor/supplier(s), product details, and date); (c) submission of falsified documents; (d) failure to pay fines imposed by DOE; (e) commission of the same prohibited act for at least a second time; (f) failure to comply with DOE circulars and administrative issuances; or (g) failure to present related government permits/clearances (Mayor's/Business Permit, Locational/Zoning Clearance, Fire Safety Inspection Certificate, Environmental Compliance Certificate, if applicable). An order of suspension, revocation, or termination may issue when any circumstance on which the COC was based no longer exists, is modified, is voided, becomes impossible, or upon any analogous circumstance. A Retail Outlet that continues to operate after an Order of Revocation or Suspension is recommended to the concerned LGU for revocation or suspension of its Mayor's or Business Permit. **Section 9. Posting of COC.** The COC must be prominently displayed in the Retail Outlet in a conspicuous location for easy viewing/inspection by customers and the public. Failure to post the COC constitutes Illegal Trading. **Section 10. Requirements for Haulers for Own-Use.** *(OCR note: this Section's heading and lead-in were dropped from both OCR passes — Tesseract skipped straight from "...constitute Illegal Trading" [end of §9] to the "a. LTO Registration OR/CR" list — and were recovered by rendering and reading the source page image (`raw/_pdf/regulations/dc2017-11-0011.pdf`, p.7).)* A dealer, operator, owner, or proprietor of the Retail Outlet who owns a tank truck to transport Liquid Fuels for its retailing business, whether by land or via sea-cargo vessel, from their sources directly to their own Retail Outlet, shall be issued a Certification by the OIMB or Field Offices for that purpose. The Certification is issued upon submission of a completely filled-out application form that indicates: a. LTO Registration OR/CR; b. DOST Calibration Report; c. Permit to Transport Flammable Liquids by Tank Truck or Conveyance Permit; d. Copy of COC of Retail Outlet, as applicable; and e. Payment of fee. --- ## RULE III — STANDARDS AND REQUIREMENTS **Section 11. Mandatory Standards and Requirements for New Retail Outlets.** The COC applicant must strictly comply with all PNS standards and requirements, specifically: a. **Fixed and Permanent Dispensing Pump** 1. Dispensing pumps located six (6) metres from any potential source of ignition; 2. No open flame within 15 metres unless provided with an adequate safety barrier/enclosure (e.g., glass enclosure, perimeter wall) separating the open flame from the dispensing pump, complying with requirements under Republic Act 9514, the "Fire Code of the Philippines of 2008." *(OCR note: the RA number and Fire Code title were garbled in both OCR passes as "...comply with the / the Philippines of 2008"; recovered by rendering and reading the source page image, p.7.)* 3. Dispensing hose with a maximum length of 5.5 metres (18 ft.); and 4. Dispensing pump accurately displaying both the volume dispensed (in litres) and the corresponding amount (in Pesos), to two (2) decimal places. b. **Forecourt** 1. Pump Island (single pump): (a) minimum dimension 3.5 x 1.2 metres; (b) lane-oriented pump minimum 0.05 metres from a fixed object; and (c) pump guard or equivalent (e.g., column post) present as a vehicular-impact-resistant safety barrier. Edge-to-edge distance between pump islands: 6 metres along the lane and 6 metres side to side. 2. Ingress and Egress: (a) minimum width 7 metres (23 ft.) for each, based on standard car and large-vehicle turning radii; and (b) the Retail Outlet serves, at any time, only the vehicles and tank trucks it can accommodate within its premises. c. **Facilities** 1. Office/Cashier's booth; 2. Canopy minimum height 4.5 metres, floor line to canopy ceiling; 3. Boundary walls of hollow concrete blocks or cyclone fence; 4. A master switch at a central control point disconnecting electric power to all dispensing pumps in an emergency; and 5. Clean restrooms, adequately provided with toiletries and running water, available for as long as the station is open for business. *(OCR note: item 5 was entirely dropped by both OCR passes, which cut off after item 4; recovered from the source page image, p.7.)* d. **Signages and Labels** 1. Outlet identification displaying the oil company's brand/trade name and trademark; 2. Price display board with updated prices for each Liquid Fuel sold, per Rule V, Section 18a(1) of DC No. 98-03-004; 3. Pump labels on Liquid Fuels type (RON, E10, Bx, where X is the % biodiesel); 4. Consumer safety and informational signs; and 5. Other safety signs as required by the OIMB, other government agencies, and relevant LGUs. e. **Underground Storage Tank (UGT).** All Liquid Fuels are stored in UGTs, with a fill sump and monitoring wells. (1) Distance to property line and adjoining structure not less than 1.0 metre; and (2) vent lines (3.65 metres minimum), monitoring wells, and rain-tight fill sump present. **Section 12. Retail Outlet Categories.** Categories, by number of pump islands/dispensing pumps and facilities/services: a. **Category 1** — 1–2 pump islands, at least 1–2 dispensing pumps per island: clean restroom; free tire-pressure air filling; sufficient radiator water; first aid kits. b. **Category 2** — 3–4 pump islands, at least 3–4 dispensing pumps: clean restroom; free tire-pressure air filling; sufficient radiator water; basic mechanical services; first aid kits. c. **Category 3** — 5 or more pump islands: clean restroom; free tire-pressure air filling; sufficient radiator water; basic mechanical services; first aid kits; designated evacuation assembly area. Retail Outlets may install electric vehicle charging facilities in any of the above categories, provided safety controls are in place, without prejudice to any agreement, rules, or guidelines the Department or another government agency/instrumentality may issue for EV charging facility operation. Application and renewal fees follow these categories. **Section 13. Minimum Facility Requirements for Existing Retail Outlets.** All existing/operating Retail Outlets, prior to this Circular, comply with: (a) fixed and permanent dispensing pump; (b) product deliveries and retailing conducted only within the Retail Outlet's premises; and (c) all Liquid Fuels stored in underground storage tanks, with a tank sump able to contain spills and leakage. **Section 14. Fuel Storage, Handling, Transfer and/or Dispensing.** Subject to the following: a. Liquid Fuels delivered, received, and dispensed at all times only within the Retail Outlet's business premises; b. Liquid Fuels transferred only from UGT by fixed dispensing pumps designed to allow controlled flow and prevent leakage/accidental discharge; c. Liquid Fuels dispensed only to appropriate containers as defined in Rule I, Section 3; the Retail Outlet provides appropriate containers on request; d. use of an appropriate container allowed only for transporting Liquid Fuels to their place of use/consumption, not for long-term or constant storage — the Retail Outlet provides the appropriate container under this condition; *(OCR note: item (d) in the first OCR pass read only "with the condition that it is for emergency and not for commercial purposes" — a fragment; the fuller wording above is recovered from the Rule VIII/Section 29 penalty-table's restatement of this same requirement, `dc2017-11-0011_3.txt`, item 4(d)–(e), which is the same text stated a second time in the document. The two published wordings differ slightly ("emergency"/"commercial purposes" vs. "place of use/consumption"/"long term and constant use"); both are given here, and Section 29's table restatement is treated as controlling since it is the more completely legible of the two.)* e. Liquid Fuels sold only in appropriate containers under that same condition; f. Liquid Fuels not discharged into any street, highway, drainage canal or ditch, storm drain or flood control channel, lake, tidal waterway, or directly into the ground; g. Liquid Fuels sold and dispensed to customers regardless of quantity/amount, directly to the vehicle's fuel tank; h. an official receipt issued after every sale; and i. Liquid Fuels sold consistent with the price on the dispensing pump and price display board. A Retail Outlet, company, or any entity/person supplying Liquid Fuels to anyone selling or dispensing it via drums, barrels, bottles, or "bote-bote" is deemed to be committing Illegal Trading. The use of drums may be allowed for a customer's own use in pre-identified situations, with a duly-notarized certification attesting to the fact. --- ## RULE IV — OTHER TYPES OF RETAIL OUTLET AND THEIR REQUIREMENTS **Section 15. Types and Facility Requirements.** As necessary and practicable, the following types of Retail Outlets may be exempted by DOE from the mandatory standards and requirements of Section 11: a. **Marine Retail Outlet** — constructed near the shoreline, exclusively serving marine vessels (small motor boats, bancas). Exempted from the UGT requirement, provided the aboveground storage tank is built of materials/technology withstanding sea-water/corrosive atmosphere and wave action, enclosed with bund walls on all sides (enclosure volume at least 120% of the largest tank's net capacity), bund walls of corrosion-resistant material (e.g., concrete), compliant with DOE-established designs. b. **Technology-Solution Retail Outlet** — a result of emerging technologies addressing Liquid Fuels retailing needs; materials manufactured per facility/product safety certifying bodies such as UL-listed and equivalent NRTL safety marks (USA), CE marking (UK/EU), RCM (Australia), PSE (Japan), among others. Requirements: (1) addresses fuel needs of those catered to by "bote-bote" retailing in the applied-for area, as certified by the concerned LGU; (2) 1-kilometre-radius distance from another Retail Outlet; (3) no other commercial establishment installed/constructed within the Retail Outlet other than what its operation requires; (4) the serviced vehicle and Tank Truck delivery at all times inside the business premises; (5) a one (1)-metre setback maintained for the cashier's booth or dispensing pump to firewalls, and during Tank Truck supply operations, a one (1)-metre working distance from the Tank Truck to firewalls. Both the Marine Retail Outlet and Technology-Solution Retail Outlet remain subject to COC application and other government requirements. c. **Temporary Emergency Retail Outlet** — upon written notice to OIMB with LGU endorsement, may operate for a period of 15 days. *(OCR note: the clause following "for a period of i5 days, in" is truncated in both OCR passes at the page break; the sentence's continuation is not recoverable from either scanned part and is left incomplete rather than guessed.)* A request for renewal/extension is covered by a Special Permit from OIMB upon receipt of the Retail Outlet's justification and an LGU endorsement; the LGU may set its own criteria and conditions for this type of Retail Outlet. ### Addendum to Rule IV — Other Types of Retail Outlet (RO) and their Requirements *(OCR note: this comparison table — reproduced from a separately-acquired 4-page scan, `raw/_pdf/regulations/dc2017-11-0011-addendum-rule4.pdf` — was severely garbled by both OCR passes, with column headers and cell contents interleaved out of order. The previous ingest attempt on this document stalled on this table. It is reconstructed below from the rendered page images at 200–220 dpi, read directly rather than via OCR text.)* | # | Requirement | Marine Service Station | Technology-Solution | Temporary Emergency | |---|---|---|---|---| | **Design** | | | | | | 1. | Above Ground Storage Tank | | | | | 1.1 | Capacity | Not regulated | 2,000 li/product (Maximum) — applies to both 1.1.1 Gasoline and 1.1.2 Diesel | Not regulated | | 1.2 | Materials | Petroleum compatible except plastic type material (e.g. HDPE) *(single cell spanning all three columns)* | | | | 1.3 | Corrosion protection | Appropriately protected with no visible mark of corrosion *(single cell spanning all three columns)* | | | | 2. | Dispensing pump and dispensing hose | | | | | 2.1 | Display | Price, Volume (li) | Price, Volume (li) | Price, Volume (li) | | 2.2 | Hose (petroleum compatible) with safety break-away coupling | Subject to the limitation of the Fire Code (BFP) | 5.5 m (Max) | 5.5 m (Max) | | 2.3 | Automatic Shut-off nozzle | Yes *(single cell spanning all three columns)* | | | | **Operational** | | | | | | 3. | Location | Wharf operation or near coastal/shoreline | Zoning clearance; a distance of one (1) kilometer radius from other existing Retail Outlet along the road network | Should be endorsed by the local government unit (LGU) or LDRRMC | | 4. | Structure minimum separation distances (e.g. to nearest point of ignition, open flame) | BFP Requirement (Section 10.3.4.1 — Flammable and Combustible Liquids – Marine Service Station); Dispensing Unit — 6 meters (fixed source of ignition); Open Flames — 15 meters | DC 2017-11-0011 Rule III - Standards & Requirements: Dispensing Unit — 6 meters (fixed source of ignition); Open Flames — 15 meters | Dispensing Unit — 6 meters (fixed source of ignition); Open Flames — 15 meters | | 5. | Spill Protection | 1. Double walled; 2. Single walled — self-bunded or constructed concrete bunded area (single wall) — 120% bunded capacity | With spill protection (single or double walled — bunded wall should be installed, NFPA 30 A); discharges must comply with General Effluent Standard per DENR/EMB Requirements DAO 2016-08 | With spill protection (preferably double walled — bunded wall should be installed, NFPA 30 A); spill tray | | 6. | Drainage and waste disposal | Oil/water interceptor or separator (fiber glass or HDPE) — pursuant to DENR/EMB Requirements DAO 2016-08 | Oil/water interceptor or separator (fiber glass or HDPE); discharges must comply with General Effluent Standard per DENR/EMB Requirements DAO 2016-08 | With spill protection (preferably double walled — bunded wall should be installed, NFPA 30 A); spill tray | | 7. | Fire safety | BFP requirements | Fire Code Section 10.3.4.2.1 — Flammable and combustible liquids | Should be endorsed by the LGU or LDRRMC | | 8. | Electrical safety | Pursuant to Phil. Electrical Code | Pursuant to Phil. Electrical Code; separate electric meter | Should be endorsed by the LGU or LDRRMC | | 9. | Personal Protective Equipment (PPE) | High visibility vest or reflectorized uniform with proper ID for the pump attendant, and other PPEs specified in the Code of Safety Practice in LPP Retail Outlet *(single cell spanning all three columns)* | | | | 10. | Pipings | Connections between dispensing area and tank storage area properly protected against external impact (e.g., buried underground, protected from traffic); with adequate corrosion protection | Connections between dispensing area and tank storage area properly protected against external impact (e.g., as a minimum, protected against traffic) | Connections between dispensing area and tank storage area properly protected against external impact (e.g., as a minimum, protected against traffic) | | 11. | Trainings | Basic orientation on receiving and dispensing operation, and emergency response *(single cell spanning all three columns)* | | | | 12. | Type of vehicle or customer to be served | Exclusively for marine vessels, e.g. bancas and motor boats | Any type of vehicle and appropriate containers being served by bote-bote | Should be endorsed by the LGU or LDRRMC | --- ## RULE V — OIMB MONITORING AND INSPECTION **Section 16. Conduct of Inspection.** Duly-authorized OIMB or Field Office inspectors undertake random, unannounced inspections — among others, checking/testing dispensing pumps and sample-taking/product-testing on-site or at the DOE laboratory. The Retail Outlet Official maintains a responsible person present at the Retail Outlet at all times to whom authorized inspectors present proper identification, under whose authority the inspection proceeds. **Section 17. Sample Taking by the OIMB or Field Offices for Testing at the DOE Laboratory.** a. Authorized inspectors may gather one (1) litre sample of each Liquid Fuels product offered for sale, directly from the dispensing pumps, for product-quality testing at the DOE laboratory to ensure compliance with quality standards. b. Laboratory test results indicating non-compliance with quality standards under the PNS and the Biofuels Act of 2008 and its Implementing Rules and Regulations constitute ADULTERATION. **Section 18. Sample Taking by the OIMB or by the Field Offices for On-site Product Sampling and Testing.** On-site sampling and testing of Liquid Fuels samples using the DOE's Mobile Monitoring and Testing Laboratory, and the consequent penalties and sanctions, are governed by DC No. DC-2015-06-0006. *(OCR note: this Section's operative sentence was truncated mid-clause in both OCR passes, cutting off after "using the DOE's"; recovered in full from the source page image, `raw/_pdf/regulations/dc2017-11-0011_2.pdf`, p.4.)* **Section 19. Retention of Product Samples.** The Retail Outlet Official retains its own duplicate samples of those obtained and duly sealed by OIMB/Field Office inspectors during inspection, for its own product-quality testing, and is responsible for providing its own sampling bottle. **Section 20. Discrepancy in Results of Testing and Resolution Thereof.** If the Retail Outlet Official/Retail Outlet contests the DOE laboratory's results, or subjects its retained samples to simultaneous testing, it may do so at its own expense within the three (3)-month validity period of the retained samples (reckoned from the date the samples are endorsed/turned over to the DOE laboratory), using an accredited testing laboratory acceptable to DOE and the industry. Test/analysis results for PNS-compliance purposes are deemed conclusive; the third-party laboratory result is used only for appeal purposes. Contested-sample analytical laboratory equipment must be calibrated/correlated with DOE laboratory equipment (GRTL/MMTL); samples are tested using reference test methods prescribed in PNS/DOE QS. **Section 21. Underdelivering in Dispensing Pumps.** a. Liquid Fuels delivered by dispensing pumps, as measured by the pump meter, must not be less than the actual quantity by more than fifty (50) millilitres per ten (10) litres, as measured by the DOE Test Measure certified and sealed by DOST-ITDI. The Test Measure is filled to the ten (10)-litre mark three (3) times at low, medium, and fast flow rates; the average quantity as measured by the pump meter is compared against the actual ten (10)-litre quantity. b. The Retail Outlet Official may examine that the DOE Test Measure has the updated seal issued by the NML. c. A dispensing pump found underdelivering is immediately closed by OIMB or Field Office inspectors, by posting an "Out-of-Order" sign or installing a padlock, until recalibrated; only the Authorized Calibrating Entity (Section 24) may remove the sign/padlock. A posted "Out-of-Order" sign must be supplemented by a notice/request for recalibration to the LGU or the Authorized Calibrating Entity. d. Unauthorized removal of an "Out-of-Order" sign or padlock from an underdelivering pump raises a presumption that the pump is being used to sell Liquid Fuels, constituting ILLEGAL TRADING. A dispensing pump found with a broken or missing seal, and with no "Out-of-Order" sign or padlock, likewise constitutes ILLEGAL TRADING; the absence of such a sign/padlock also raises the presumption that the Retail Outlet is actually selling Liquid Fuels, constituting ILLEGAL TRADING. **Section 22. Posting of Signages and Labels.** a. The Retail Outlet posts prominently, conspicuously, and at the motorist's immediate sight: (1) a price display board with updated prices for each Liquid Fuel; (2) the same updated prices at the dispensing pump — for special promotions, a designated lane must be assigned and the promotion prominently displayed; (3) product quality labels (RON, E10, Bx) at the dispensing pumps; (4) for biodiesel blends (Bx), the phrase "This diesel contains X% CME"; and (5) E-Gasoline fuel specifications: Regular grade — 91 RON minimum, green; Premium grade — 95 RON minimum, red; Premium plus grade — 97 RON minimum, blue. b. The terms "unleaded," "lead-free," and similar brand names are no longer allowed on labeling, display boards, pumps, or other marketing tools, to avoid the impression that the Philippines still has leaded gasoline. c. The Retail Outlet also posts, in strategic and appropriate locations, consumer safety and informational signs: do not use a cellular phone while filling; no smoking; switch off engine while filling; no straddling (motorbike/tricycle); and other safety signs as required by the OIMB and other government agencies. --- ## RULE VI — LIQUID FUELS QUANTITY STANDARD **Section 23. Calibration and Sealing of Dispensing Pumps.** Calibration is mandatory to ensure Retail Outlet facilities/equipment remain accurate. All dispensing pumps used to dispense Liquid Fuels sold to the public must be calibrated once every ninety (90) days and immediately sealed afterward by an authorized entity. Immediate calibration is also required if a pump is found underdelivering (Section 21) or during weekly calibration verification (Section 25.c). Failure to have dispensing pumps calibrated constitutes UNDERDELIVERING, notwithstanding that the pumps are not actually underdelivering. **Section 24. Authorized Calibrating Entities and their Roles.** The authorized calibrating entities are the City or Municipal Treasurer, or in their absence or incapacity, the National Metrology Laboratory (NML) of the Industrial Technology Development Institute (ITDI), Department of Science and Technology (DOST), or, in its absence, the oil company or a third-party contractor. If calibration is done by the oil company or a third-party contractor, it must obtain a certification from the City/Municipal Treasurer or NML-ITDI-DOST that the latter are unavailable or incapable of performing the calibration. **Section 25. Test Measure Requirement in All Retail Outlets.** a. OIMB or the Field Offices inspect and verify the dispensing pump using a valid Test Measure to check for possible underdelivering. b. All Retail Outlets maintain a 10-litre Test Measure, inspected, calibrated, verified, adjusted as necessary, and resealed once every twelve (12) months by the NML of the ITDI, DOST, or DOST regional calibration laboratories. Failure to maintain an NML-calibrated and sealed Test Measure, or the required documented and signed/countersigned written record or logbook, or maintaining/using a dilapidated, unserviceable, expired, or uncalibrated Test Measure — notwithstanding that the pumps are not actually underdelivering — constitutes ILLEGAL TRADING. **Section 26. Sealing of the Dispensing Pump by the LGU.** a. Only the LGU or the persons enumerated in Section 24 may affix the seal after calibration, and conversely break the seal; calibration or seal-breaking by any other entity constitutes UNDERDELIVERING. b. The seal is installed on the metering unit and mechanical/electronic adjustment device by the authorized person performing the calibration, to guard against unauthorized adjustment of the dispensing pump. c. The Retail Outlet or Retail Outlet Official ensures Liquid Fuels are sold and dispensed to customers regardless of quantity/amount, directly to their vehicles' fuel tank. --- ## RULE VII — LIQUID FUELS QUALITY STANDARDS **Section 27. Product Quality.** Only Liquid Fuels complying with the PNS and the Biofuels Law are sold in a Retail Outlet. **Section 28. Testing and Retention of Samples of Liquid Fuels by the Retail Outlet.** To protect against delivery of adulterated products, a Retail Outlet may: a. Take at least one (1) litre sample from the Tank Truck of each Liquid Fuels delivery, placed in clear bottles and sealed in the presence of the Tank Truck driver, who verifies the sample-taking by signing the invoice. The sample is safely stored by the Retail Outlet for at least five (5) days or until the next delivery, whichever is shorter. A record of the Certificate of Quality per delivery is also maintained. *(OCR note: item (a)'s second half was dropped by both OCR passes, which cut off after "...placed in clear bottles and"; recovered from the source page image, `raw/_pdf/regulations/dc2017-11-0011_2.pdf`, p.7.)* The Retail Outlet provides its own sampling bottle to retain a duplicate sample for its own product-quality testing/verification for every delivery from its supply source, and for OIMB's/Field Offices' inspection and sampling. --- ## RULE VIII — PROHIBITED ACTS, ADMINISTRATIVE FINES AND SANCTIONS **Section 29. Fines/Sanctions Against Prohibited Acts.** In addition to the OIMB's/Field Offices' right and authority to suspend and revoke the COC under this Circular, the Retail Outlet Official and/or Retail Outlet committing prohibited acts is subject to the following penalties: *(OCR note: this table's letter sequence (A, [B], [C], [D], E, F) has letters B, C, and D entirely dropped from both OCR passes — the text runs straight from item "16." under ILLEGAL TRADING into "ADULTERATION," "UNDERDELIVERING," and "REFUSAL/OBSTRUCTION OF INSPECTION AND SAMPLING" with no letter markers, then resumes with "E. HOARDING." The count of unlettered category headings between intact tags A and E is exactly three, matching the gap B–D, so the sequence is restored per the corpus's detached-list-letter convention. The full table — including the 3rd Offense column, which the source itself leaves blank for items A.1–A.8 rather than the OCR having dropped it — was verified by rendering and reading the source page images at `raw/_pdf/regulations/dc2017-11-0011_2.pdf` p.7 and `dc2017-11-0011_3.pdf` pp.1–5.)* **A. ILLEGAL TRADING** | Prohibited Act | 1st Offense | 2nd Offense | 3rd Offense | |---|---|---|---| | 1. Engaging in the business without a COC — where the Retail Outlet Official and/or Retail Outlet engages in business without securing a COC, or continues to operate upon COC expiration, or after being directed by DOE/OIMB/Field Offices to cease and desist | P10,000.00 with directive to comply. | P10,000.00 and recommend revocation of the permit or license to LGU. | *(blank in source)* | | 2. Non-compliance with Section 11, Rule III on Mandatory Standards and Requirements (fixed and permanent dispensing pump, forecourt, facilities, signages and labels, underground storage tank) | P10,000.00 with directive to comply. | P10,000.00 and recommend revocation of the permit or license to LGU. | *(blank in source)* | | 3. Non-compliance with Section 12, Rule III on Minimum Facility Requirements for Existing Retail Outlets (fixed and permanent dispensing pump, deliveries and retailing conducted only within the premises, fuels stored in underground storage tanks) | P10,000.00 with directive to comply. | P10,000.00 and recommend revocation of the permit or license to LGU. | *(blank in source)* | | 4. Non-compliance with Section 13, Rule III on Liquid Fuels Storage, Handling, Transfer and/or Dispensing (§14(a)–(h) requirements) | P10,000.00 with directive to comply. | P10,000.00, revocation of COC, and recommend revocation of the permit or license to LGU. | *(blank in source)* | | 5. Non-compliance with Section 15, Rule IV on Types and Facility Requirements | P10,000.00 with directive to comply. | P10,000.00 and revocation of COC, and recommend revocation of the permit or license to LGU | *(blank in source)* | | 6. Non-submission, misrepresentation, or misdeclaration of Documentary Requirements under Section 6(c) | P10,000.00 with directive to comply. | P10,000.00 and recommend revocation of the permit or license to LGU | *(blank in source)* | | 7. Failure to Post COC in a conspicuous place — where a Retail Outlet does not, fails, or refuses to post the COC | Warning with directive to post within 30 days; P10,000.00 penalty for failure to comply within that period. | P10,000.00 with directive to comply. | P10,000.00, revocation of COC, and recommend revocation of the permit or license to LGU | | 8. Non-compliance with Section 22, Rule V on posting requirements: (a) non-posting of RON/E10/Bx stickers at the pump; (b) posting of wrong RON; (c) posting "unleaded"/"lead-free"/other marketing terms; (d) posting of updated prices in price display board; (e) posting conflicting prices between pump and price display board; (f) non-posting of consumer safety/informational signs | Warning with directive to post within 30 days; P10,000.00 penalty for failure to comply within that period. | P10,000.00 with directive to comply. | P10,000.00, revocation of COC, and recommend revocation of the permit or license to LGU | | 9. Non-issuance of official receipt after every sale | P50,000.00 with directive to comply. | P100,000.00 with Cease and Desist Order. | P200,000.00, issuance of Closure Order, revocation of COC, and recommend revocation of the permit or license to LGU. | | 10. Refusal or failure to pay fine/penalty within the period prescribed by DOE | Amount of fine/penalty imposed, issuance of Closure Order, revocation of COC, and recommend revocation of the permit or license to LGU. | *(single-tier penalty — no separate 2nd/3rd offense cells in source)* | | | 11. Absence and/or unauthorized removal of an "Out-of-Order" sign or padlock | Amount of fine/penalty imposed, closure of RO, and reiteration of Notice of Violation to oil company/supplier and LGU. | *(single-tier penalty — no separate 2nd/3rd offense cells in source)* | | | 12. Failure to maintain a calibrated and sealed dispensing pump | P10,000.00 with directive to comply. | P10,000.00, revocation of COC, and recommend revocation or suspension of the permit or license to LGU. | *(blank in source)* | | 13. A dispensing pump with a broken or with no seal | P10,000.00 with directive to comply. | P10,000.00, revocation of COC, and recommend revocation or suspension of the permit or license to LGU. | *(blank in source)* | | 14. Failure to comply with Test Measure Requirements | P10,000.00 with directive to comply. | P10,000.00, revocation of COC, and recommend revocation or suspension of the permit or license to LGU. | *(blank in source)* | | 15. Failure to maintain a written record or logbook | P10,000.00 with directive to comply. | P10,000.00, revocation of COC, and recommend revocation or suspension of the permit or license to LGU. | *(blank in source)* | | 16. Sale of Liquid Fuels from a dispensing pump with broken or no seal and no "Out-of-Order" sign or padlock installed | P200,000.00 with Cease and Desist Order. | P300,000.00, revocation of COC, issuance of Closure Order, and recommend revocation or suspension of the permit or license to LGU. | *(blank in source)* | | Category | 1st Offense | 2nd Offense | 3rd Offense | |---|---|---|---| | **B. ADULTERATION** — possession and sale of Liquid Fuels not conforming to quality standards under the PNS and Biofuels Law; governed and sanctioned by that Act and its IRR | P200,000.00 with Cease and Desist Order. | P300,000.00, revocation of COC, issuance of Closure Order, and recommend revocation or suspension of the permit or license to LGU. | *(blank in source)* | | **C. UNDERDELIVERING** — quantity of Liquid Fuels delivered by dispensing pumps is less than the actual quantity by more than fifty (50) millilitres for every ten (10) litres, as measured by a calibrating bucket | P10,000.00 per dispensing pump. | P10,000.00 per dispensing pump, revocation of COC, and recommend revocation or suspension of the permit or license to LGU. | *(blank in source)* | | **D. REFUSAL/OBSTRUCTION OF INSPECTION AND SAMPLING** — a Retail Outlet refuses, prevents, or obstructs inspection of its premises, facilities, and records, or sampling of Liquid Fuels; failure by OIMB/Field Office inspectors to conduct inspection despite reasonable efforts to secure the Retail Outlet Official's consent, or the circumstances in Section 16, is deemed Refusal of Inspection — constituting prima facie evidence of commission of the Prohibited Acts of this Circular | P50,000.00, with the presumption that there is sale of adulterated products. | P100,000.00 with Cease and Desist Order, and with the presumption that there is sale of adulterated products. | P200,000.00, issuance of Closure Order, revocation of COC, and recommend revocation of the permit or license to LGU. | | **E. HOARDING** — committed when, before a price increase or in times of tight supply: (1) the Retail Outlet refuses or fails to sell to the general public even when supply is available and the customer offers cash payment; or (2) the Retail Outlet has an unjustifiable inventory increase of 50% or more above its usual inventory, reckoned from the third (3rd) month immediately preceding the refusal/failure to sell | P10,000.00 | P10,000.00, revocation of COC, and recommend revocation or suspension of the permit or license to LGU. | *(blank in source)* | | **F. Continuing to operate** after an Order or Notice of cessation of operation has been issued by DOE | P10,000.00 per day of operation. | P10,000.00 per day of operation, revocation of COC, and recommend revocation or suspension of the permit or license to LGU. | *(blank in source)* | **Section 30. Initiation of Administrative Proceedings.** Any individual or group may initiate administrative proceedings with DOE against a Retail Outlet Official and/or Retail Outlet committing prohibited acts, in accordance with DOE Circulars; *Provided,* that DOE may proceed administratively, *motu proprio*, against any non-compliant Retail Outlet pursuant to said DOE Circulars. **Section 31. Initiation of Criminal Action.** Initiation of an administrative action, or imposition of a fine, against a violating Retail Outlet is without prejudice to filing a criminal action against it under BP 33, as amended, RA 8479, and other applicable laws, rules, and regulations. --- ## RULE IX — FINAL PROVISIONS **Section 32. Transitory Clause.** All existing Retail Outlets that fully complied with the prior notice requirements of DOE under DC 98-03-004 are given six (6) months from these Retail Rules' effectivity to fully comply with its provisions. Taking public safety into consideration, DOE reserves the right to issue appropriate, separate regulations on the conduct of EV charging stations, battery swapping, and other similar activities; a Retail Outlet may only engage in such activities after notification to DOE. **Section 33. Review Clause.** Given the industry's dynamic nature, DOE periodically reviews, updates, and issues necessary rules relative to the sector's operation. OIMB coordinates with the Energy Utilization Management Bureau (EUMB) for EV-related activities. **Section 34. Separability Clause.** If any provision is declared invalid or unconstitutional by a court of competent jurisdiction, the remaining provisions are unaffected. **Section 35. Repealing Clause.** DOE Circular No. 2003-11-010 is hereby deemed repealed. All other DOE Circulars, issuances, and rules and regulations inconsistent with this Circular, or any part hereof, are deemed repealed or modified accordingly. **Section 36. Effectivity.** This Department Circular takes effect fifteen (15) days from the date of its complete publication in two (2) newspapers of general circulation. Done at Energy Center, Bonifacio Global City, Taguig City. **ALFONSO G. CUSI** Secretary Republic of the Philippines, Department of Energy DOE-AGC-17005427 "NOV 22 2017" (date stamp) --- ## Notes on scan quality - The document's own numeral group in the running page header/footer ("Department Circular No. DC2017-_ll-OO ll") is handwritten-over/smudged on every page but is legible and consistent with "DC2017-11-0011" throughout, including on the signature page. - The signature block ("ALFONSO G. CUSI, Secretary") and the "NOV 22 2017" date stamp were confirmed visually by rendering the source PDF page (`raw/_pdf/regulations/dc2017-11-0011_3.pdf`, p.6/"Page 20 of 20"), since OCR rendered both as garbled characters ("ons Wier", "Qanvshlin nt tee Phitinninne"). - Two addenda were acquired as separate scans and are not part of the main document's own 20-page pagination: - **Addendum to Rule I, Section 3(b) and Section 14(c) and (e) — Appropriate Container** (1-page scan; reproduced below), illustrating HDPE/plastic-resin-code selection for "appropriate containers." Its content is illustrative/explanatory rather than independently operative; the two Resin Code notations at the bottom are reproduced verbatim. - **Addendum to Rule IV — Other Types of Retail Outlet (RO) and their Requirements** (4-page scan), the comparison table reconstructed above. --- ## ADDENDUM — Rule I, Section 3(b) and Section 14(c) and (e): Appropriate Container *(OCR note: this page's own header reads "Department Circular No. 2017-11-0011 — Rule I Section 3 (b) and Section 14 (c) and (e), Appropriate Container." It illustrates an ASTM-style portable alternative container (e.g., a lubes container) and the American Chemistry Council's plastic packaging resin codes for High Density Polyethylene (HDPE, Resin Code 2) and "Other" (Resin Code 7), citing https://plastics.americanchemistry.com/Plastic-Resin-Codes-PDF. The descriptive resin-property text is reproduced as in the source; it is background/explanatory material, not an operative rule.)* **HDPE (Resin Code 2).** Used to make many types of bottles. Excellent resistance to most solvents. Unpigmented bottles are translucent, have good barrier properties and stiffness, and are well suited to packaging products with a short shelf life, such as milk. Because HDPE has good chemical resistance, it is used for packaging many household and industrial chemicals such as detergents and bleach. Pigmented HDPE bottles have better stress-crack resistance than unpigmented HDPE. Higher tensile strength compared to other forms of polyethylene; a relatively stiff material with useful temperature capabilities. **Other (Resin Code 7).** Indicates a package made with a resin other than the six other listed resin codes, or made of more than one resin in a multi-layer combination. Properties are dependent on the resin(s) used. **Notation** (as printed): - Alternative container may refer to HDPE (High Density Polyethylene) type materials that can be used exclusively for transporting liquid petroleum products from the retail outlet to the place of use or consumption (e.g., lube container). - In selecting the appropriate or alternative container, look for Resin Code number 2 for HDPE and 7 for other miscellaneous types of plastic (e.g., polycarbonate, polylactide).