CREATING THE PHILIPPINE GAS PROJECT TASK FORCE

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WHEREAS, it is the policy of the State to ensure a continuous, adequate and
economic supply of energy;

WHEREAS, natural gas deposits of at least 2.5 trillion cubic feet discovered
in offshore Malampaya/Camago by Service Contractors under Service Contract No.
38 (Shell Exploration B. V. and Occidental Philippines, Inc.) potentially
represent the country’s largest indigenous source of fossil fuel;

WHEREAS, the Government is committed to pursue the development and
utilization of the Malampaya/Camago gas reserves for power generation through a
Philippine Gas Project with the end in view of providing a long-term market for
the gas, which potential resource level is projected to supply 400 million
standard cubic feet of gas per day equivalent to 3,000 megawatts of baseload
generating capacity;

WHEREAS, the Philippine Gas Project (PGP) shall involve operations
consisting of the development of the Malampaya/Camago gas field, and the
development and constitution of offshore production pipeline systems from the
offshore production area to onshore gas-fired power plants and other target
markets;

WHEREAS, the critical nature of the PGP necessitates the creation of an ad
hoc, multi-agency body that will ensure a unified and coordinated effort
towards achieving the goals of the PGP;

NOW, THEREFORE, I, FIDEL
V. RAMOS, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order the creation of the
Philippine Gas Project  Task Force, hereinafter referred to as the Gas
Task Force:

SECTION 1. Composition. – The Gas Task Force shall be composed of the Secretary of Energy,
as Chairman, and as members, the heads of the following agencies or their duly
designated alternates with the rank of Undersecretary or its equivalent rank:

a. Department of Environmental
and Natural Resources;
b. Department of Finance;
c. Department of Interior and Local Governments;
d. Energy Regulatory Board
e. Housing and Urban Development Coordinating Council;
f. National Economic and Development Authority;
g. National Power Corporation;
h. Office of the President
i. PNOC Exploration Corporation;
j. Two (2) representatives from relevant private sector entities, to be
appointed by the President.

The Gas Task Force may create
such inter-agency subcommittees as may be necessary to fulfill its mandate. The
Gas Task Force may also call upon any department, agency or instrumentality of
the Government for assistance. It shall also have the authority to hire the
services of technical consultants of proven and internationally recognized
expertise in natural gas technology as may be deemed necessary.

The Department of Energy (DOE)
shall provide the technical, administrative and secretariat support to the Gas
Task Force.

SEC. 2. Powers and
Functions. The Gas Task Force shall:

a conduct studies to determine
the appropriate options for the long-term markets of Malampaya/Camago gas;

b. formulate action plans and
work programs necessary and appropriate to attain the objects of the PGP;

c. coordinate the implementation
of component work programs of the PGP;

d monitor and review the issues
and concerns affecting or which may affect the timely and efficient
implementation of the PGP;

e. identify and/or formulate
policy measures to address such issues and concerns;

f. enhance collaboration among
agencies of the Government in ensuring concerted/congruent efforts towards
meeting the goals of the PGP;

g. monitor, coordinate and
ensure compliance with existing government rules and regulations;

h. conduct periodic public
consultations with appropriate local government units and other concerned
sector of communities which may be affected by the PGP;

i. perform such other functions
as may be deemed necessary and incidental to the implementation of the PGP.

SEC. 3. Funds. – The funding requirements to carry out the mandate of the Gas Task
Force shall be chargeable against the savings from the appropriations of the
DOE for the first year of implementation of this Order. Funds for succeeding
years shall be chargeable against the regular appropriations of the DOE.

SEC. 4. Effectivity. This Order shall take effect immediately.

DONE in the City of Manila, this
30^th day of June, in the year of Our Lord, nineteen
hundred and ninety five.

(Sgd.) FIDEL
V. RAMOS
President of the Philippines

By the President:

(Sgd.) RUBEN D. TORRES
Executive Secretary

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