REVISED GUIDELINES ON THE CENTRALIZED COLLECTION SYSTEM OF DOMESTIC WHARFAGE DUES COLLECTIBLE FROM PETRON CORP., CALTEX PHILS., INC. AND PILIPINAS SHELL PETROLEUM CORP.

Section 6(a) (iii) Presidential Decree No. 857.

2.         Rationale

2.1.   The refineries of the oil companies where the loading activities are done are located as follows:

2.2.   Majority of the depots of these oil companies where
unloading activities are made are located in far flung areas away from a
PMO baseport or terminal office.

2.3    To capture the complete revenue collectible from these oil
companies, the centralized collection system at the loading ports for
both loading and unloading domestic wharfage dues shall be continued
based on the mechanics itemized hereunder.

3.         Mechanics

3.1.   The oil companies shall continue to maintain a cash deposit in the ports of loading equivalent to:

Option 1.         Cash deposit equivalent to the oil
company’s average monthly loading and unloading domestic wharfage dues
(computed based on the last three months shipments, divided by 3).
Replenishment/Payment of the billings shall be made not later than every
25th day of the month.    cdasia

Option 2.         Cash deposit equivalent to the oil
company’s average 15-day loading and unloading domestic wharfage dues
(computed based on the last 1½ months shipments, divided by 3).
Replenishment/Payment of the billings shall be made not later than every
10th and 25th day of the month.

3.2.   The cash deposit shall be maintained at PMO North Harbor
for the loading port of Limay Bataan and PMO Batangas for the loading
ports in San Pascual Batangas and Tabangao Batangas.

3.3.   It shall be the responsibility of the Port Manager of the
loading port to regularly monitor the cash deposit and see to it that it
is sufficiently maintained as provided in 3.1 above.

3.4.   Each oil shipment shall be covered by a Wharfage Clearance Certificate (WCC).

3.5.   The basis for determining the loading wharfage dues shall be the volume loaded as indicated in the cargo manifest.

3.6.   The basis for determining the unloading wharfage dues shall
be 99.5% of the volume loaded. The 0.5% shall provide for the loss due
to evaporation, spillage and other factors, based on industry standard.

3.7.   The Wharfage Clearance Certificate (WCC) shall be
pre-numbered. It shall be prepared properly and legibly in five (5)
copies distributed as follows:

Original	–	Copy for Oil Company
Duplicate	–	Copy for Port of Unloading
Triplicate	–	Copy for PMO Finance Section
Quadruplicate	–	Copy for PMO Operations Section
Quintuplicate	–	Copy for Shipping Agent

If there are two or more ports of unloading, the “Copy for Port of
Unloading” shall be reproduced/xeroxed correspondingly. The
reproduced/xeroxed copies shall likewise be signed as specified
hereunder.

3.8.      The official format of the WCC shall be as follows(Text/format available at Office of the National Administrative register (ONAR), U.P. Law Center, Diliman, Quezon City)

3.9.      For cargoes intended/destined to different ports of
unloading, the port of loading should properly indicate the volume to be
unloaded separately to each PMO/PTO reflecting the exact location of
the oil depot.

3.10.   For proper guidance of the loading and unloading ports, an
updated listing of the location of the oil depots shall be provided by
Head Office Commercial Services Department indicating the applicable
rate of wharfage dues to be imposed.

3.11.   The WCC shall be signed by the Terminal Supervisor or the
Terminal Operations Officer in the ports of loading duly countersigned
by the authorized representative of the oil company concerned.

3.12.   Two copies of the WCC shall be retained by the port of
loading, one copy each for the Operations Section and Finance Section
for proper recording and accounting.

3.13.   The “Copy for Port of Unloading” of the WCC shall be
presented by the authorized representative of the Oil Company to the
port/s of unloading. It will serve as an authority for the port of
unloading to clear the vessel after unloading its cargoes. This copy
shall be retained by the port of unloading to support the granting of
vessel clearance. This shall be forwarded to the Finance Section for
proper recording and accounting.

3.14.   The Operations Section-Port of Loading shall submit a
Monthly Summary of WCC issued to the Finance Section-Port of Loading not
later than three days after the 25th day cut-off date.

3.15.   The Port of Loading shall charge against the deposit or
bill the domestic wharfage dues on the oil shipments based on the amount
declared in the Wharfage Clearance Certificate duly reconciled with the
Surveyor’s Report being submitted to them by the oil company.

3.16.   The port of unloading shall record as Inter-PMO Receivable
the domestic wharfage dues-unloading creditable to them based on the
amount declared in the WHARFAGE CLEARANCE CERTIFICATE. A Monthly
Schedule of Inter-PMO Receivable shall be submitted to H.O.-Treasury
Department not later than the 10th day of the following month.

3.17.   In case of volume discrepancies arising from the
difference between “Volume to be Unloaded” per WCC and volume actually
unloaded, it shall be reconciled by Head Office-Treasury Department as
follows:

3.17.1.     The actual volume unloaded per vessel per port is
reflected in the Monthly Summary of Stockpoints Receipts, based on the
independent Surveyors Report, being submitted by the oil companies to
Treasury Department. It shall be used by Treasury Department to
determine the correct volume per vessel per port of unloading.

3.17.2.     It shall be reconciled monthly by the Treasury
Department with the Monthly Report of Undistributed Collections being
submitted by the loading ports and the Schedule of Inter-PMO Receivables
being submitted by the ports of unloading.

3.17.3.     Any under-payment on Wharfage Dues — unloading shall
be billed and collected by Treasury Department from the Oil Company
concerned.

3.17.4.     The reconciled figures shall be used as basis in crediting the unloading port concerned.

3. 17.5.    The Inter-Office Credit Memo (IOCM) issued by
Treasury Department shall, therefore, be used by the unloading port
concerned to adjust, if necessary, its previous entry on Inter-PMO
Receivable Account.

3.17.6.     The Inter-PMO Receivable recorded in the books of
the port/s of unloading shall be closed to CO/PMO Clearing Account
Current Deposit (8-70-770) upon receipt of the Monthly Statement of
Account Reconciliation and the IOCM from Head Office-Controllership
Department.

3.18.   The total domestic wharfage dues for loading and unloading
collected at the ports of loading shall be treated as follows:

3.18.1.     Domestic Wharfage Dues-Loading

3.18.1.1.          The domestic wharfage dues-loading collected
monthly for Option 1 and semi-monthly for Option 2 by the loading port
shall be accordingly credited to the loading port.

3.18.2. Domestic Wharfage Dues-Unloading

3.18.2.1.        The domestic wharfage dues-unloading collected
monthly for Option 1 and semi-monthly for Option 2 creditable to the
port/s of unloading shall be recorded as Undistributed Collection of the
port of loading and shall be credited to the unloading port/s under the
Inter-Office Billing and Collection System provided in PPA Memorandum
Order No. 10-91.

3.18.2.2.        The Port of Loading shall submit a Monthly
Report of Undistributed Collection/IOCM to the Head Office-Treasury
Department not later than the 10th day of the following month.

3.18.3. The following distribution and clearing units are hereby
directed to submit their respective reports on the due dates prescribed
above.

3.18.3.1.          from PMO Limay-Operations/PMO Batangas-Operations
3.18.3.2.          to PMO North Harbor-Finance/PMO   Batangas-Finance
3.18.3.3.          to PDO Manila/PDO Luzon
3.18.3.4.          to H.O.-Treasury Dept.
3.18.3.5.          to H.O.-Controllership Dept.
3.18.3.6.          to PDO/s concerned
3.18.3.7.          to PMO/s concerned

4.         Repealing Clause

This Memorandum Circular revokes PPA Memorandum Circular No. 13-85.

5.         Effectivity

This Memorandum Circular takes effect immediately.

For strict compliance.

Adopted: 20 Oct. 1999

(SGD.) JUAN O. PEÑA
General Manager