PROCEDURAL GUIDELINES ON THE AWARD OF MINERAL PRODUCTION SHARING AGREEMENT (MPSA) THROUGH NEGOTIATION
procedural guidelines on the award of MPSA through negotiation are
hereby promulgated for the information and guidance of all concerned:
SECTION 1. Acceptance of MPSA Application/Proposal
— An MPSA Application/Proposal in twelve (12) sets shall be accepted
upon payment to the DENR Regional Office concerned of the following
fees:a. filing fee — P100.00 per application/proposal
b. processing fee — P5,000.00 per application/proposal
c. P.D. 1856 as amended, for a and b P20.00 per application/proposal
SECTION 2. Minimum Requirements for MPSA —
The minimum requirements for MPSA which shall be checked/verified by the
Regional Technical Secretariat (RTS) within fifteen (15) days from
submission, shall be the following:a. For Individuals
i. Certified photocopies of Income Tax Returns for the three (3) immediate preceding years;
ii. Proof of sufficiency of capital and/or credit lines;
iii. Sworn statement that applicant/proponent is not a dummy of any person or entity; and
iv. Authorization to the Secretary of the DENR or his representatives to verify submitted informations.
b. For Corporations, Partnerships, Associations
i. Certified photocopy of Certificate of Registration issued
by the Securities and Exchange Commission (SEC) or the concerned
authorized government agency;ii. Certified photocopy of the Articles of Incorporation, Partnership/Associa-tion and By-laws;
iii. Personal data sheets of the current directors
and officers, including their nationalities, bio-data and relevant
experiences or annual report;iv. Audited financial statement for the three (3) immediate preceeding years, if applicable;
v. Proof of sufficiency of capital and/or credit lines;
vi. Authorization to the Secretary of the DENR or his representatives to verify submitted informations.
In addition to the above requirements, an applicant/proponent for
an integrated MPSA shall submit a two-year exploration work program.
Further, it shall commit itself to conduct an Environmental Impact
Assessment (EIA) and to comply with the requirements of Environmental
Impact Assessment (EIA) and to comply with the requirements of
Environmental Compliance Certificate (ECC). Such commitment shall be
set forth in writing and the same shall be submitted before actual
mining operation starts. Applicant/proponent for a simple MPSA, on the
other hand, shall submit a three (3) year construction and development
work program or a three (3) year commercial production work program or a
three (3) year commercial production work program and an ECC.For holders of unperfected mining rights, the following shall be submitted in addition to the aforesaid requirements:
1. Registration/ recording of mining/quarry claim; as in
case of assignee, duly registered deed of assignment, transfer, etc .;2. Submission of survey returns or technical descriptions covering the subject claims;
3. Proof of compliance with the annual work obligations and occupation fees; and
4. Appropriate environmental report and anti-pollution measures proposed to be undertaken during the mining operations.
Failure to submit the aforementioned requirements shall be a ground
for non-processing of the MPSA application/proposal under
consideration.SECTION 3. Submission of Letter of Intent ( LOIs) and MPSAs
— The following shall submit their LOIs and MPSAs within two (2) years
from the effectivity of DENR A.O. 57 or until July 17, 1991.i. Declaration of Location (DOL) holders, mining lease
applicants, exploration permitees, quarry applicants and other mining
applicants whose mining/quarry applications have not been perfected
prior to the effectivity of DENR Administrative Order No. 57.ii. All holders of DOL acquired after the effectivity of DENR A.O. No. 57.
iii. Holders of mining leases or similar agreements which were granted after effectivity of 1987 Constitution.
Failure to submit letters of intent and MPSA
applications/proposals within the prescribed period shall cause the
abandonment of mining, quarry and sand and gravel claims.SECTION 4. Area Clearance — Within fifteen
(15) days from receipt of MPSA application/proposal by the Regional
Office concerned, the Regional Technical Secretariat shall check thru
map projection if the area is free from any conflict. If the area is
found to be free from conflict, the RTS shall give written notice to the
applicant/proponent to pay the corresponding occupation fee of ten
pesos per hectare for non-reservation area and 100 pesos per hectare for
reservation area within fifteen (15) days from receipt of said written
notice. Provided, that failure to pay such fee within the prescribed
period shall be a ground for non-processing of the proposal under
consideration.If the area is in conflict, the RTS shall resolve the same within five (5) days from date of discovery of the conflict.
SECTION 5. Survey of the Area Applied For —
Within sixty (60) days from filing of the MPSA proposal, the
applicant/proponent thereof shall file with the Regional Technical
Director (RTD) for Mines an application for an order of survey and the
RTD shall approve the same within five (5) days from submission of all
the documents/survey requirements. Survey returns shall be submitted to
the RED within one year from receipt of the order of survey. However,
areas previously surveyed for mining purposes are exempted from this
requirement. Failure to submit survey returns within the prescribed
period shall be sufficient ground for cancellation.SECTION 6. Publication of MPSA Application/Proposal
— Within fifteen (15) days from submission of the survey returns, the
Regional Executive Director (RED) shall cause the publication of the
MPSA application/proposal once a week, for two (2) consecutive weeks in a
newspaper of general circulation at the expense of the
applicant/proponent. The RED shall also cause the publication of the
MPSA application/proposal on the bulletin board of the Mines and
Geosciences Bureau for two (2) consecutive weeks and shall require the
applicant/proponent to post for the same period the MPSA
application/proposal on the bulletin board of the municipal building of
the municipality and in that of the DENR Regional Office, where the
proposed MPSA contract area is located. Immediately after the expiration
of the period of publication, the applicant/proponent shall file with
the RED an affidavit attesting to the fact that the required
publications have been complied with. However, previously published
mining lease applications are exempted from the publications required
under this section: Provided, that if no adverse claim/protest is filed
within thirty (30) days after the first date of publication, the
applicant/proponent shall deposit verification fee within fifteen (15)
days from completion of the publication. Failure to do so within the
period aforestated shall be a ground for rejection of said MPSA.SECTION 7. Adverse Claims — No adverse
claim shall be accepted by RED unless verified and accompanied by the
prescribed docket fee and proof of services upon the respondent. No
adverse claim shall be entertained unless it contains the name/s of the
adverse claimants/ oppositors, their respective counsel, if any,
detailed statements of the facts relied upon, the grounds of the adverse
claims/protest together with all supporting documents and data. Said
adverse claim or any protest shall be resolved by the Regional Panel of
Investigators (RPI) within thirty (30) days from referral.SECTION 8. Verification of Area Applied For
— After payment of the P1,000 per man per day verification fee, a
geologist/mining engineer and a geodetic engineer both duly licensed and
designated/deputized by the DENR Regional Executive Director shall
conduct a field verification so as to confirm if the proposed contract
area is indeed mineralized, correctly surveyed and properly monumented.
Provided, that the minimum verification fee shall be P4000. The
verification team shall submit its report to RTS within 15 days from
completion of verification. However, areas previously verified are
exempted from this requirement.SECTION 9. Acceptance and Evaluation of MPSA Proposal
— Within fifteen (15) days from the submission of the verification
report to the RTS, the latter shall forward its recommendation together
with the MPSA application/proposal and its supporting documents to MGB
Technical Secretariat for pre-evaluation. Within fifteen (15) days from
receipt of the said recommendation and MPSA application/proposal, the
latter shall refer the same for final evaluation to the Sub-Committee if
the capital investment is less than one hundred (100) million pesos, or
to the Negotiating Panel if the capital investment is at least one
hundred (100) million pesos.SECTION 10. Negotiation Between the Government and Applicant/Proponent
— The MPSA Sub-Committee/Negotiating Panel, upon being satisfied of the
terms and conditions of the MPSA application/proposal and the
qualification of the applicant/proponent, shall notify the Secretary of
the recommendation that the MPSA application/proposal is acceptable.
The Secretary, finding the recommendation proper, shall notify the
applicant/proponent for the formal signing of the MPSA contract. Should
the Secretary find it otherwise, the same shall be remanded to the MPSA
Sub-Committee/Negotiating Panel for negotiation. However, if the MPSA
Sub-Committee/Negotiating Panel finds some of its terms and conditions
unacceptable, a negotiation shall be conducted between the parties in
order to conclude a fair and mutually acceptable terms and conditions of
the MPSA application/proposal. It is understood, however, that, in the
MPSA, the DENR shall be referred to as the “Government” whereas the
applicant/proponent shall be referred to as the “Contractor”.SECTION 11. Approval of MPSA — Within five (5)
days from signing of MPSA by the Secretary, the DENR shall forward the
same together with all the supporting documents to the President for
approval.SECTION 12. Registration and Issuance of MPSA —
Upon approval of the MPSA by the President, the MPSA shall then be
forwarded, through the DENR, to the MGB Technical Secretariat for MPSA
numbering. Thereafter, the Contractor shall cause the registration of
its MPSA with the Regional Office concerned after payment of the
following fees:a. Registration fee — P10.00 per MPSA
b. P.D. 1856, as amended — P10.00 per MPSA
c. Regulatory fee — P10.00 per hectare per year during the
first year of exploration plus a P5.00 yearly increment for the
succeeding years.d. Exploration permit fee — P50.00 per hectare per year for offshore exploration instead of the regulatory fee.
It will only be after payment and registration is effected, that
may the MPSA contract may be released, through the RTS, to the
Contractor.SECTION 13. Non Acceptance of Declaration of Location (DOL) — No DOL shall be accepted for registration after fifteen (15) days from effectivity of these procedural guidelines.
SECTION 14. Issuance of Interim Mines Permit —
All holders of published lease applications, pending quarry and sand
and gravel applications, and expiring lease/quarry contracts and MPSAs
pending negotiations may upon proper applications with the Secretary be
issued Interim Mines Permits for a period of one year or until the
issuance of permit, license or agreement whichever comes first subject
to the following conditions:1. That the applicant is already operating or about to operate subject to verification by the RTS;
2. That the applicant has already submitted a proposed MPSA;
3. That the applicant has submitted approved work program,
surety bond to be determined by the RTD and an Environmental Compliance
Certificate (ECC).Provided, however, that progress production reports (quarterly)
shall be submitted by the holders of the Interim Mines permits covering
the subject areas for the purpose of computing the share of the
Government from production. Such interim share of the government shall
be based on the MPSA proposal so long as it is not lower than one per
cent (1%) of the gross output as defined in Administrative Order No. 57,
Series of 1990 exclusive of the excise tax.SECTION 15. Separability Clause — If any
clause sentence, provision, section of this guidelines shall be held
unconstitutional, the remaining parts of this guidelines shall not be
affected thereof.SECTION 16. Repealing Clause — All orders,
rules and regulations inconsistent with or contrary to the provisions
this guidelines are hereby repealed or modified accordingly.SECTION 17. Effectivity — This Administrative order shall take effect fifteen (15) days after its publication in a newspaper of general circulation.
Adopted: 20 Nov. 1990
(SGD.) FULGELNCIO S. FACTORAN, JR.
Secretary