L h Ex Sell Department of Energy DEPARTMENT CIRCULAR NO. DC2017-_1! - 0012 Ee RULES AND REGULATIONS GOVERNING THE PHILIPPINE DOWNSTREAM NATURAL GAS INDUSTRY Pursuant to Republic Act (RA) No. 7638, otherwise known as the “Department of Energy Act of 1992”, creating the Philippine Department of Energy (DOE); Executive Order (EO) No. 66, designating the DOE as the lead agency in developing the Philippine Downstream Natural Gas Industry; Administrative Order No. 38, providing for the Institutional Strengthening of the DOE; Department Circular No. 95-06-06, entitled “Policy Guidelines on the Overall Development and Utilization of Natural Gas in the Philippines"; Department Circular No. 2002-07-004, otherwise known as the Rules of Practice and Procedures before the DOE, and Executive Order 30, establishing the Energy Investment Coordinating Council to facilitate an efficient and effective administration of Energy projects of National Significance and fasten the implementation of the Philippine Energy Plan (PEP),” the DOE, in consultation with appropriate government agencies and private stakeholders, hereby issues, adopts and promulgates the following regulations, PARTI GENERAL PROVISIONS This Circular establishes the regulations to be followed with respect to siting, design, construction, expansion, rehabilitation, modification, operation and maintenance of the PDNGI Value Chain. The State shall ensure that the PDNGI Value Chain, from its emerging state, will be developed into a mature market to gain greater energy security and sustainability, RULE 1. TITLE AND SCOPE Section 1. Title This Circular shall be known as the Philippine Downstream Natural Gas Regulation (PDNGR). Section 2. Scope This PDNGR applies to the following: a. Industry compliance to policies, rules, standards and best practices on areas of siting, design, construction, expansion, modification, operation and maintenance ‘any Project necessary to the development of the PDNGI Value Chain;Industry compliance to policies, rules, standards and best practices on the importation of LNG and the supply and transport of the following: 1. Imported LNG or liquefied Indigenous Natural Gas from the connection point of the loading arm to the LNG Terminal, the Transmission System and the Distribution System; 2. Indigenous Natural Gas after the point of sale up to the Customer; and 3. LNG from the filling connection of the storage specifically used for reticulation or delivery up to the satellite LNG Terminal in the Philippines. and foreign market. Industry compliance to policies, rules, standards and best practices on TPA; Industry compliance to policies, rules, standards and best practices towards the development of the Philippines as an LNG trading and transshipment hub for the Asia-Pacific Region; Overall monitoring and supervision of the activities of the PDNGI Value Chain RULE 2. DECLARATION OF POLICY It is hereby declared the policy of the State to: a, Provide a conducive environment through the issuance of policies, plans and programs geared towards the promotion and development of the PDNG! Value Chain where in all cases, the State shall ensure its safe, transparent, competitive and environmentally friendly operation; Ensure continued operation of currently operating gas-fired power plants after the depletion of the Malampaya Natural Gas supply; Promote Natural Gas as an energy fuel with tremendous potential to satisfy, the increasing local demand and that of the Asia-Pacific Region through the development of the necessary infrastructure for LNG trading and transshipment hub; Promote the conversion of existing liquid fuel-operated machines and facilities to Natural Gas use and allocation by the distribution utilities of power supply from gas- fired power plants; Ensure access and financial viability of the PDNGI Value Chain by liberalizing entry under a system of competition, transparency and fair trade with the end goal of attaining fair price for all stakeholders; and Ensure compliance with Intemational and Philippine Health, Safety, Security, ronment (HSSE) standards and best practices to achieve and sustain safe Operation, high-quality service and consumer protection. Page 2 0f 23RULE 3. RESPONSIBILITIES OF THE DOE, The DOE shall have the overall responsibility on the promotion and supervision of the development and operation of the PDNGI Value Chain through: a. The evaluation of applications for the issuance of authority to Operator, namely a Notice to Proceed (NTP), a Permit to Construct, Expand, Rehabilitate and Modify (PCERM) and a Permit to Operate and Maintain (POM) Downstream Natural Gas Facilities; b. The issuance, among others, of Acknowledgement to Import (ATI) LNG and Acknowledgement to Supply and Transport (AST) Natural Gas; c. The issuance of directives to qualified Government Agencies, in their capacities as investing arms, to spearhead the development of the PDNGI Value Chain when the DOE deems it imperative to catalyze its development within a given timeline; d. The implementation of the industry compliance to Philippine or International Standards on Natural Gas product, Downstream Natural Gas Facilities and practices; e. The creation of a Downstream Natural Gas Review and Evaluation Committee (ONG-REC) which shall evaluate and recommend, for the approval of the Secretary, applications referred to in the Permit Application Guideline, including the conduct of downstream inspection and monitoring activities in coordination with a Philippine Inter-Agency Health, Safety, Security and Environment Inspection and Monitoring Team (PIA-HSSE IMT), and the creation of Technical Committees (TC) which shall formulate applicable standards. The PIA-HSSE IMT and the TC shall be chaired both by the DOE; f The recommendation of the DNG-REC to concemed Heads of Agencies the approvals of Memorandum of Agreement or Joint Circular whenever necessary to implement DOE responsibilities; and g. The implementation all other necessary measures allowed under existing laws, rules and regulations. RULE 4. DEFINITION OF TERMS. As used in this Circular, the following terms shall mean as follows: a. Affiliate - means any corporation that directly or indirectly, through one or more intermediaries (subsidiaries or affiliates), is controlled by, or is under the common control of another corporation, which thereby becomes its parent corporation; b. Anti-Corfipetitive Acts — refer to any of the acts prohibited under the Philippine Contpetition Act (RA10667); Page 3 of 23c. Applicant — refers to: 4. any local and/or foreign individual company; or 2. incorporated joint venture company; or 3. the designated member of an unincorporated joint venture or consortium which is authorized for the purpose of engaging in a Project, and wishes to secure any Permit under this Circular; d. Applicant Group — refers to (1) the Applicant's shareholders, and/or (2) their respective Parent Company; e. Capacity — means the maximum capacity of the Natural Gas Facility to provide the services for which that Natural Gas Facility is developed, expressed in normal cubic meters per time unit or in energy unit per time; f. Control - means the power of a parent company to direct or govern the financial and operating policies of an enterprise so as to obtain benefits from its activities. Control is presumed to exist when the parent owns, directly or indirectly through its subsidiaries or affiliates, more than one-half (1/2) of the voting power of an enterprise unless, in exceptional circumstances, it can clearly be demonstrated that such ownership does not constitute control. Control also exists even when the parent owns one-half (1/2) or less of the voting power of an enterprise when there is power: 4. over more than one-half (1/2) of the voting rights by virtue of an agreement with investors; 2. to direct or govern the financial and operating policies of the enterprise under a statute or an agreement; 3. to appoint or remove the majority of the members of the board of directors or equivalent governing body; or 4. to cast the majority votes at meetings of the board of directors or equivalent governing body. g. Customer - refers to a Person who purchases Natural Gas for resale or final use; h. Department of Energy or “DOE” - refers to the government agency created pursuant to Republic Act No. 7638; i. Deregulation - refers to the removal of Government price control; |. Distribution Pipeline ~ refers to a pipeline that forms part of a Distribution System including the Spur lines; Page 4 of 23k. Distribution System - refers generally to the pipeline and its related facilities used to transport Natural Gas extending between the last delivery points of the ‘Transmission System to the last connection point to the Customer: |. Downstream Natural Gas Facility — means the facilities referred to in Rule 6 including the pipeline and its related facilities used to transport Indigenous Natural Gas after the point of sale up to the last connection point to the Customers; m. Energy Regulatory Commission or "ERC" — refers to the regulatory agency created by RA 9136; n. Financial Closing — means generally to the stage of negotiation where a legally binding financial commitment actually exists to provide funding for a Project and all conditions have already been met to permit the mobilization of funds; ©. Force Majeure - means any event or circumstance not within the reasonable control of a party including, without limiting the generality of the nature of those events or circumstances, any of the following events or circumstances: 1. acts of God including earthquakes, floods, washouts, landslides, lightning, storms and similar causes; 2. strikes, lockouts, or other industrial disturbances; 3. inability to access land or the inability to use land due to latent or soil conditions; 4. acts of the enemy, terrorists, wars, blockades or insurrections, riots and other civil disturbances; 5. fire or explosion including radioactive and toxic explosions; 6. epidemic or quarantine; 7. order of any court or tribunal or the order, act, or omission or failure to act of any government or governmental authority having jurisdiction; and 8. failure of Government Agencies to act and/or issue the necessary permits or clearances, without fault of the Operator. P. Franchise - refers to the right, privilege and authority issued by Congress in favor of any Person to engage in the transmission or distribution of Natural Gas; 4. Gas Sales and Purchase Agreement or “GSPA” - refers to a contract or agreement for the delivery and sale of Indigenous Natural Gas or imported Natural Gas by and between seller and buyer; 1. Governfent Agency — refers to any government or governmental, semi- govémmental, administrative, monetary, fiscal or judicial body, department, Page 5 of 23aa. bb. ce, dd. ‘commission, authority, tribunal, agency or entity, and any bureau of the Republic of the Philippines Importer - refers to any Person registered with the DOE and engaged to import LNG into the Philippines; Importer and Supplier Accreditation Guideline — refers to the Guideline issued by the DOE under Section 3 (b) of Rule 6 of this Circular and attached hereto as Annex C; Indigenous Natural Gas — means Natural Gas produced from fields within the entitlement or territorial jurisdiction of the Republic of the Philippines; Insurance - refers generally to a risk-transfer mechanism that ensures full or partial financial compensation for the loss or damage caused by event(s) beyond the control of the insured party wherein, compensation is normally proportionate to the loss incurred; Landed Cost ~ refers to the cost of imported LNG upon delivery to the Philippines, which consist generally of the total of FOB, insurance, freight cost, currency conversion, custom duties, taxes, port related fees and other applicable fees; Liquefied Natural Gas or "LNG" - refers to Natural Gas which has been liquefied by cooling at a cryogenic temperature; Maritime Agencies — refers to Government Agencies having jurisdiction over the administration of maritime related matters; Natural Gas - refers to gas obtained from boreholes and wells consisting primarily of a mixture of methane, ethane, propane and butane with small amounts of heavier hydrocarbons and some impurities, notably nitrogen and complex sulphur compounds and water, carbon dioxide and hydrogen sulphide which may exist in the feed gas but are removed before liquefaction; Operator — refers to a natural or juridical Person who is granted a Permit by the DOE to engage in the siting, design, construction, expansion, rehabilitation, modification, operation and maintenance of Natural Gas Facilities; Operator and Facility Registry and Reportorial Requirements Guideline — refers to the Guideline issued by the DOE under Section 3 (b) of Rule 6 of this Circular and attached hereto as Annex B; Parent Corporation ~ refers to the respective controlling corporation of each of the shareholders of the Applicant; Person — refers to a natural person or a juridical entity such as a partnership, joint venture, asSociation, corporation, or a Government Agency; ee. Perfhit - means a permit referred to under Section 1 of Rule 6; Page 6 of 23ff. Permit Application Guideline — refers to the guideline issued by the DOE under Section 1 of Rule 6 of this Circular and attached hereto as Annex A; gg. Petroleum Service Contractor — refers to a holder of a Petroleum Service Contract duly issued by the DOE pursuant to PD 87, as amended; hh. Philippine and Internationally Accepted Standards — refers to those internationally recognized practices, methods and acts which would ordinarily be expected from an experienced and competent operator of Natural Gas Facilities in the Philippines under comparable conditions and consistent with applicable laws in the Philippines at the relevant time; ii. Philippine Downstream Natural Gas Industry Value Chain or “PDNGI" Value Chain — refers to the Downstream Natural Gas Facilities and the operations or activities related thereto which involve LNG importation, storage, regasification, transmission and distribution to Customers including the pipeline and its related facilities used to transport Indigenous Natural Gas and the operations or activities related thereto after the point of sale up to the last connection point to the Customers; jj. Pipeline — means Transmission Pipeline or Distribution Pipeline; kk. Project — refers to the siting, design, construction, expansion, rehabilitation, modification, operation and maintenance of any Downstream Natural Gas Facility of the PDNGI Value Chain; |l. Public Utility — refers to a business or service engaged in regularly supplying the public with some commodity or service of public consequence which cannot be denied to anyone who is willing to pay for it or as may be defined as such by applicable Philippine law and jurisprudence; mm. Supplier - refers to any Person registered with the DOE and engaged to trade and supply Natural Gas to Customers; nn. Tariff - refers to the payment on the utilization of the capacity and use of other services offered by the Operator of the LNG-related facilities, Transmission System and Distribution System; 00. Third Party Access or “TPA” - means a transparent and non-discriminatory access and utilization by third party users of the excess capacity and other services offered by the Operator of the LNG Terminal, Transmission System and Distribution ‘System subject to defined governing rules, terms and conditions; pp. Tolling Fee — is composed of (1) capacity payments, (2) operating expenses, (3) taxes, and (4) other incidental costs used for receiving, storage and regasification of LNG into Natural Gas form usable as fuel and its delivery to the Customer or buyer, qq. Transmission System - refers generally to the pipeline and its related facilities used to trarfsport Natural Gas extending between the connections from the gathering fagifities to the last connection point before the Distribution System; Page 7 of 23rr. Transshipment — refers to the act of taking cargo out of one ship and loading it in another, or the transfer of goods from the vessel stipulated in the freight contract to another vessel, before the place of destination named in the contract has been reached; and ss. Transmission Pipeline — refers to pipeline that forms part of a Transmission System. PART Il COVERED FACILITY RULE 5. DOWNSTREAM NATURAL GAS FACILITY This Circular shall cover the regulation of the following facilities of the PDNGI Value Chain. Section 1. LNG Terminal a. Jetty and Unloading/Loading arms; b. Cryogenic Pipelines; c. Storage Tanks; d. Send out system; e. Low and High Pressure Pumps; f. Boil-Off Gas (BOG) compressors and re-condensers; g. Vaporizers; h, Metering; and i, Other relevant components. Section 2. Pipelines a. Transmission; b. Distribution (including Spur lines); and c. Other relevant components ion and/or Distribution-Related Facilities Section 3. Trangmi: oe wae plants; Page 8 of 23b. Facilities for pipeline interconnections and metering; ¢. Natural Gas Refilling Stations; and d. Other relevant components. Section 4. Indigenous Natural Gas Facility This Circular shalll cover the regulation of pipelines and their related facilities used to transport Indigenous Natural Gas after the point of sale up to the last connection point to the Customers PART Ill REGULATIONS AND STANDARDS RULE 6, PERMITS No Person, natural or juridical, shall construct, expand, rehabilitate, modify, operate or maintain a Downstream Natural Gas Facility unless that Person is authorized to do so by a Permit issued under this Circular. Section 1. Permits For purposes of this Circular, the following Permits shall be issued in accordance with the Permit Application Guideline: a. Notice to Proceed (NTP); b. Permit to Construct, Expand, Rehabilitate, Modify (PCERM); and c. Permit to Operate and Maintain (POM). Section 1.1 Guiding Principles for Evaluation In order to meet the PDNGI Value Chain development, the DOE shall utilize a specific method of accepting applications for Project with due consideration for objectivity and transparency in the conduct of evaluation, recommendation and issuance of Permits. The DNG-REC will recommend the issuance of Permits, for the approval of the Secretary, after compliance to the following considerations: a. The proposed Project is consistent with the declaration of policies in this Circular, ~ b. TheApplicant has complied with the complete submission of the legal, technical o financial documentations as set out in the Permit Application Guideline; Page 9 of 23c. The proposed Project shall be technically and financially viable by ensuring, among others, that there is: 1. sufficient market for Natural Gas to justify the construction of the Downstream Natural Gas Facility; 2. sufficient supply of imported LNG or Indigenous Natural Gas; and 3. clear source of funding for the construction, expansion, rehabilitation, modification, operation and maintenance of the proposed Natural Gas Facility, d. The proposed Project shall not result to any Anti-Competitive Act. Section 1.2 Periods and Application Procedures for the Issuance of Permit The periods and application procedures for the issuance of Permits are provided for in guideline no. 6 of the Permit Application Guideline. Request for any extension on the periods granted for NTP and PCERM shalll be allowed by the DNG-REC with the approval of the DOE Secretary but only in case of Force Majeure subject to the following conditions: a. That the Operator shall notify the DNG-REC in writing, with details and proof of the existence of the cause of the force majeure and the actions taken to resolve it, within thirty (30) days from the knowledge of its existence or occurrence; and b. That the Operator satisfies the DNG-REC and the DOE Secretary of its proposed work program and funding commitments to warrant the extension. The Operator shall then be given an extended period equivalent to the approved amended work program supporting the extension. Section 1.3 Modification The DNG-REC may recommend, for the approval of the DOE Secretary, the modification of any condition of any Permit upon application by the Operator but subject to applicable provisions of this Circular and its annexed guidelines. Section 2. Natural Gas Supply a. The existing Philippine laws and rules governing the Upstream Natural Gas Sector allow the Government the option to sell directly or otherwise authorize a petroleum service contractor to sell its share in the production of Indigenous Natural Gas. For this purpose, the DOE Secretary or his/her authorized representative may consider the evaluatiort and recommendation of the joint Upstream Conventional Resource Review_afid Evaluation Committee and the DNG-REC in the negotiation process subsequent approval of the gas sale and purchase agreement; and Page 10 of 23,b. The Operator of the LNG Terminal shall ensure the accommodation of both Liquefied Indigenous Natural Gas and imported Liquefied Natural Gas. The DOE shall support and ensure the implementation of any plans to upgrade the terminal and its ancillary facilities into a hub for international trading and Transshipment. Section 3. Accreditation, Registry and Reportorial Requirements of PDNGI Value Chain Participants a. Importer and supplier complying with the Importer and Supplier Accreditation Guideline shall be issued an Accreditation Certificate (LNG-IAC) and shall be qualified thereafter to apply with the OIMB for the issuance of an ‘Acknowledgement to Import LNG (ATI-LNG) and Acknowledgement to Supply and ‘Transport Natural Gas (AST-NG) consistent to the application; and b. The Operators, their facilities and activities shall be registered and the required reportorial requirements shall be submitted to the OIMB for proper supervision and monitoring in accordance with the Operator and Facility Registry and Reportorial Requirements Guideline. Section 4. Application Fee The Applicant shall pay the DOE a non-refundable fee for the processing and evaluation of its application as provided in the latest DOE Approved Schedule of Fees and Charges. Section 5. Confidential Information The DOE shall not use confidential or commercially sensitive information for purposes other than those provided herein and shall protect and limit the disclosure of confidential or commercially sensitive information unless allowed by the Operator or when required by law, rules and regulations. Section 6. Rules of Practice Any legal proceeding relative to the application, interpretation and implementation of this PDNGR before the DOE shall be in accordance to the Department Circular No. DC2002-07-004, otherwise known as the Rules of Practice and Procedure before the Department of Energy. The Rules of Court shall apply in suppletory manner. Rule 7. FRANCHISE REQUIREMENT Section 1. Transmission and Distribution Pipeline as Public Utility Transmission and/or Distribution Pipelines functioning as Public Utility shall require a congressional franchise and certificate of public necessity and convenience or similar Page 11 of 23Section 2. Public Utility Pipeline Service Pricing The DOE in coordination with ERC shall be responsible in the fixing and regulating of rates or schedule of prices for the use of Transmission and/or Distribution Pipelines functioning as Public Utility. The principle of full recovery of prudent and reasonable costs incurred, including a reasonable return on rate base that is consistent with the encouragement of private investment and goal of developing the PONG! Value Chain, or such other principles that will promote the determination of just and reasonable rates shall be applied Section 3. Ownership Requirement of a Public Utility A Congressional Franchise as a Public Utility must only be granted to Persons complying with Article XII, Section 11 of the 1987 Philippine Constitution. Rule 8, THIRD PARTY ACCESS Section 1. Third Party Access Guiding Principles Excess Capacity of the LNG Terminal, Transmission System, Distribution System and other services offered by the Operator shall be available on a transparent and non- discriminatory access by third party users. The TPA guidelines to be subsequently issued by the DOE shall be based on the following principles: a. Encourages competition which drives efficiencies and lowers costs and price to consumer; b. Supports foreign and local investments in energy supply and infrastructure which is otherwise prevented by actions of incumbent monopolistic companies; c. Promotes diverse and sustainable sources of energy and enhance security of supply; d. Introduces safe and measurable standards of service and practices; e. The Operator shall comply with an open and sufficient consultation process on both existing and potential third party users to discuss the available excess capacity and other available services; and {, For the purpose of ensuring transparency, the Operator shall comply with the release and publication of the access terms and conditions; Section 2. Available Excess Capacity 4. Third Party Access obligations shall apply to the available and uncommitted excess of the LNG Terminal, Transmission System and Distribution System. Page 12 of 23,To ensure safe and reliable operation, the Operator shall determine, subject to the review and recommendation of the DNG-REC and approval of the DOE Secretary, the maximum and excess capacity of the Natural Gas Facilities offered to third parties. The Operator shall allocate such excess capacity based on, but not limited to, the following criteria as they pertain to the Third Party User: a. Proposed contract price and terms; b. Credit-worthiness; c. Existence of off-take facility; and d. Ability to meet fuel specification parameters of the LNG facility. Non- availment by any Third Party User of the excess capacity so allocated and offered shall not be a ground for the denial or cancellation of any Permit under this Circular. Section 3. Infrastructure Development Period a. To encourage initial capital investment in new infrastructure that is critical for developing a viable Downstream Natural Gas Industry, an Infrastructure Development Period shall be considered and determined, during which the Operator shall be exempted from Third Party Access; and b. This provision shall also apply to significant increases of capacity in existing Natural Gas Facilities and to any modification of such facilities to enable the development of new sources of gas supply and new gas markets. The exemption may cover all or parts of the new Natural Gas Facility, the existing facilities with significantly increased capacity or the modification of the existing facilities. Rule 9. PROMOTION OF COMPETITION AND NATURAL GAS RETAIL PRICING Section 1. Guiding Principle a. The commercial operations of the activities in the PNRI shall be competitive, transparent and primarily governed by market forces; b. Agreements, decisions and concerted pra prices and/or fix output are prohibited; es by a Person or Persons to fix c. Other practices and/or conduct by a Person or Persons that undermine, restrict or distort competition are likewise prohibited; and it with the applicable provisions of laws, findings and recommendations of ilippine Competition Commission (PCC), the DOE Secretary shall adopt asures and/or corresponding remedies to maintain competition Page 13 of 23Section 2. Cross-Ownership Cross-ownership from the Natural Gas Facilities, their operations, importation and supply of Natural Gas to Customers, shall be allowed for operational and financial feasibility considerations. In all cases, the State shall apply the provisions of this Circular and other applicable laws and regulations concerning the ownership and operation of businesses affected with public interest and prohibition of monopolies and combinations in restraint of trade. Section 3. Natural Gas Retail Pricing The retail price of Natural Gas converted from LNG shall be deregulated, except ‘operation of facility considered as Public Utility, but shall be unbundled to the extent of reflecting the following basic pricing components: (1) Landed Cost of the Natural Gas and (2) Tolling Fee. Rule 10. STANDARDS OF FACII ITY, PRODUCT AND SAFETY PRACTICE A. FACILITY Section 1. Standards Downstream Natural Gas Facilities must be predicated on their high quality and efficient service, stringent safety systems and overall attention to detail in design, solid construction and best operational practices. Regulations shall focus on its consistency to both applicable Philippine and Internationally Accepted Standards in the Natural Gas industry. Section 2. Critical Safety Conditions of the LNG Ships a. The Operator of the LNG Terminal and the Maritime Agencies shall require a certification from the LNG vessel operator that the LNG vessel design, construction, and operations complied with international standards and codes relating to fitness to travel, hull requirements, cargo containment, pressure/temperature controls, safety systems, fire protection, and crew training, among other issues. Marine quality assurance for LNG carriers is provided through the process of vetting, which assesses ship quality against a known standard to determine its acceptance for use. Vetting is conducted by shipping companies using employees or independent contractors on their own ships as well as chartered ships; b. LNG ship unloading to the LNG receiving facility shall be equipped with redundant safety systems-on emergency shutdown, quick release, containment and rescue; and of c. Ships fnust have a comprehensive security plan which shall provide preventive, defection, alert and rescue system. Page 14 of 23Section 3. Critical Safety Conditions of the Facility Generally, multiple layers of protection are created by critical safety conditions, all of which are integrated with a combination of industry standards and regulatory compliance. Industry standards are written to guide industry and enable public officials to efficiently evaluate safety, security, and environmental impacts of LNG facilities. Regulatory compliance should ensure transparency and accountability in the public domain. The following requirements for primary containment, secondary containment, safeguard systems, separation distance, industry standards/regulatory compliance, operational safety and accident, damage and discontinuation of operation standards, shall be applied across the PDNGI Value Chain, from production, liquefaction, and shipping, to storage and re-gasification a. Primary Containment Employing suitable materials for storage tanks and other equipment and appropriate engineering design throughout the PDNGI Value Chain is the most important safety requirement for the industry in order to contain the LNG. b. Secondary Containment This second layer of protection ensures that if leaks or spills occur, the LNG can be contained and isolated. For onshore installations, dikes and berms should surround liquid storage tanks to capture the product in case of a spill. In some installations, a reinforced concrete tank should surround the inner tank that normally holds the LNG. Secondary containment systems are designed to exceed the volume of the storage tank. Double and full containment systems for onshore storage tanks may eliminate the need for dikes and berms. c. Safeguard Systems In the third layer of protection, the goal is to minimize the release of LNG and mitigate the effects in case of a release. At this level of safety protection, LNG operations use systems such as gas, liquid and fire detection to rapidly identify any breach in containment including use of remote and automatic shut off systems to minimize leaks and spills in case of failures. Operational systems (procedures, training and emergency response) supplement in the prevention and mitigation of hazards. Regular maintenance of these systems is vital to ensure their reliability. d. Separation Distance Regulations have always required that LNG facilities be sited at a safe distance from adjacent industrial, communities and other public areas. Safety zones are to be established by the Operator around LNG ships while underway in Philippine waters afid while moored. The safe distances or exclusion zones are based on LNG “vapor dispersion data, and thermal radiation contours and other opnéiderations as specified in regulations used by the Operator. Page 15 of 23e. Industry Standards/Regulatory Compliance No systems are complete without appropriate operating and maintenance procedures being in place and with insurance that these are adhered to, and that the relevant personnel are appropriately trained. Organizations such as the Society of International Gas Tanker and Terminal Operators (SIGTTO), Gas Processors Association (GPA) and National Fire Protection Association (NFPA) produce guidance which comes from industry best practices. f. Safety Standard In order to maintain HSSE best practices, policies and regulations in the operation of the Natural Gas Facility, all operators shall comply with the Philippine and Internationally Accepted Safety Standards and best practices on areas of design and construction, management system, operation system, maintenance system, personnel development and training community health and safety preparedness and emergency response. g. Accident, Damage and Discontinuation of Operations Should there be an accident, damage or discharges of Natural Gas or hazardous materials or substances from the Natural Gas Facility, the Operator, in addition to the obligations stated above, shall promptly inform the DOE Secretary, DNG-REC Chair and the Director of the Oil Industry Management Bureau (OIMB), and submit a preliminary report to the DOE within forty eight (48) hours containing relevant information on the initial assessment of the incident and the emergency response taken. Within seven (7) days from the submission of the preliminary report, the Operator shall submit a comprehensive and detailed report to the DOE Secretary, DNG-REC Chair and the Director of OIMB and the members of the PIA-HSSE-IMT containing its official findings on the damage to the Natural Gas Facility and its corresponding environment and all other relevant information on the steps taken to resolve and address the cause of the incident Should the Operator and the DOE, in coordination with the PIA-HSSE-IMT, determine that a condition exists in any segment of the Natural Gas Facility which may endanger life or property, the affected segment or facility shall be taken out of operation and proper remedial action shall be taken to prevent further damage and apply subsequent repair or replacement measures. In all these stages, the Operator shall submit a complete report and documentation to the DOE. Section 4. Critical Safety Conditions of the Pipelines and the Transmission andior Distribution Related Fa In addjti¢n to the compliance requirement of the safety conditions under Section 3 of Rule410, the following conditions shall further apply: Page 16 of 23a. Impact on Public Infrastructure The Operator shall ensure technical and regulatory compatibility to that of other public infrastructures with proper consultation, coordination and permitting done with other Government Agencies responsible for any bridges, roads, harbors, streams, rivers and coastal waterways that will be affected by the Pipeline projects. peline Testing No Pipeline testing shall be done without the presence and proper coordination with the DNG-REC in coordination with PIA-HHSE-IMT. All certificates for hydrostatic tests referred to in this section and all radiographs or ultrasonic testing results of pipeline welds shall at all times be readily available to a DOE inspector or its authorized representative and shall not be destroyed or otherwise disposed of except with the permission in writing from the DOE. c. Signage In the interest of public safety and welfare, signs or markers shall be erected and maintained in strategic locations. Operator shall advise concerned local government units (LGUs) and appropriate government agencies about -the existence of the pipeline related facilities within their respective jurisdiction and shall provide such LGUs and appropriate government agencies detailed maps of their Pipeline routes B, PRODUCT Section 1. Quality The Operator shall maintain the quality of gas supply to Customers in accordance with the Philippine or Internationally Accepted Standards and ensure that delivery of Indigenous or imported LNG must always pass the purification requirements from associated compounds unnecessary or damaging to the LNG regasification facility. Section 2. Measurement of Natural Gas Unless otherwise approved by the DOE, the Natural Gas will be measured according to the relevant standards as developed and maintained by the Organization for Standardization (ISO) and in particular: a. The volume of Natural Gas will be measured in cubic meters under standard conditions specified in Section 3 below and all reporting will be in units of standard cubic meter (SCM);-and b. The energy value of Natural Gas will be measured in Joules and all reporting will be in joules (J) with a quantity prefix, such as megajoules (MJ), terajoules (TJ), petajoules (PJ), etc., as appropriate aL Page 17 of 23Section 3. Standard Conditions Standard conditions for the purpose of this Circular shall mean the conditions of Natural Gas at a temperature of 15.5 degrees Celsius (°C) (288.15°Kelvin) and an absolute pressure of 0.101325 megapascals (Mpa) or 1013.25 millibars. C. SAFETY PRACTICE 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; b. Occupational Health and Safety Risk Assessment and Management Plan; c. Facility Security Risk Assessment and Management Plan; and d. Disaster/ Emergency Preparedness and Response Plan. RULE 11. RESPONSIBILITIES OF THE OPERATOR a. Align all its goals and objectives to the accomplishment of the declared policies of this Circular; b. Be directly responsible for the construction and operation by providing the necessary services, technology and financing, either by itself or through its duly authorized subcontractors, without entitlement from the Philippine Government to any reimbursement of any expense incurred; ©. Comply with applicable Philippine laws and regulations relating to tax, labor, health, safety, indigenous people's rights, environment and specially protected areas and ecology; d. Comply with the regulatory obligations, maintenance of complete records and submission of all reportorial requirements and other documents as maybe required by the DOE under the authority of this Circular and its implementing Guidelines; e. Implement the Natural Gas Facility strictly adhering to the scope and limits of the Permit and Operate in accordance to the Philippine and Internationally Accepted Standards; f. Provide Insurance Policy pursuant to Section 1 of Rule 15; 8 Submit an abandonment plan and establish a coresponding sinking fund pursuant to Section n 20FR ule 15; h. Abid if i the requirements of assignment or transfer of interest pursuant to Section 7 ule 15; Page 18 of 23i. Facilitate the necessary preparations based on a valid order, and allow examiners of the Bureau of Internal Revenue and Bureau of Customs entry, to the facility premises and full access to accounts, books, and records for tax and other fiscal purposes, in accordance with BIR and Customs rules and procedures; j. Facilitate the necessary preparations, based on a valid order, and allow DOE, PIA- HSSE IMT and other Government Agencies, entry to facility premises and full access to operational records for inspection and monitoring activities in accordance with the rules and procedures of such government agencies; k. Give preference to qualified local talents for hiring and local companies/agencies in entering into subcontracts on projects or services which are required in the constructions or operations; |. Hold the DOE, its officers and employees, and PIA-HSSE IMT free from all claims, demands or actions arising out of its failure to comply with laws, regulations, standards, contracts, and permits in connection but not limited to accidents, damages or injuries; and m. Participate in regular operational meeting with the DNG-REC and in the development, issuance and review of plans, protocols, standards and codes applicable to the Natural Gas Facility. RULE 12. DOWNSTREAM NATURAL GAS REVIEW AND EVALUATION COMMITTEE This Circular authorizes the creation of a Downstream Natural Gas Review and Evaluation Committee (DNG-REC) which shall perform the following functions: a. Examines, evaluates, and reviews the legal, technical and financial capabilities of Applicants and recommends to the Secretary the issuance of Downstream Natural Gas Permits, namely NTP, PCERMs and POMs; b. Recommends to the Secretary the issuance of directives to qualified Government Agencies in their capacities as investing arms to spearhead the development of the PDNGI Value Chain in case it is imperative to catalyze its development within’the timeline given; c. Recommends to the Secretary the issuance of standards and policies on facility, product and practice to ensure safety, quality, efficiency and economy; d. Supervises and monitors the progress of construction and operation of Downstream Natural Gas Facilities and authorizes conduct of inspection and monitoring activities in coordination with the Philippine Inter-Agency Health, Safety, Security and Environment Inspection and Monitoring Team (PIA-HSSE IMT); e, Addresses“any inquiry that maybe raised by the Secretary in connection to the Permits, policies and programs endorsed for the Secretary's execution and approval: tL Page 19 of 23f. Recommends for approval of the Secretary and in coordination with the ERC the applicable rates or schedule of prices for the use of Transmission and/or Distribution Pipelines; g. Resolves issues in relation to the legal, technical and financial capabilities of Applicants; and h. Implements all other necessary measures allowed under existing laws, rules and regulations, PART IV TRANSITORY PROVISIONS RULE 13. EXISTING SYSTEMS. Natural Gas Facilities that have been constructed prior to the Effectivity of this Circular shall continue to be operated under their existing Permits and comply with additional requirements, if applicable, under this Circular. Suppliers who have entered into GSPAs with Customers and have delivered Indigenous Natural Gas or imported Natural Gas prior to the Effectivity of this Circular shall continue to operate under said contracts subject to compliance to the additional requirements in this Circular. RULE 14. PENDING APPLICATIONS All pending applications under the PDNGI Value Chain before the DOE shall be covered by this Circular. PARTV FINAL PROVISIONS RULE 15. INSURANCE, ABANDONEMENT AND DECOMMISSIONING AND ASSIGNMENT OF INTEREST Section 1. Insurance The Operator shall secure an Insurance policy to be provided to the DOE within sixty (60) days from date of issuance of PCERM and POM, respectively, to adequately cover/answer any identified 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 mi igation assessment and the seismic, geologic, oceanographic, atmospheric and yu Page 20 of 23security hazard to infrastructure and process identification, prevention and mitigation assessment Section 2. Abandonment and Decommissioning a. The Operator shall submit an abandonment plan and establish a corresponding sinking fund in the form of a trust account with a reputable commercial bank in the Philippines in favor of the DOE, the amount of which shall be equivalent to the estimated abandonment and decommissioning cost, starting three years (3) years before the end of the POM term if without any plan for renewal or at any point whenever an immediate withdrawal from the Natural Gas Facility is made without any transferee; and b. No Natural Gas Facilities for which a Permit has been issued shall be abandoned or withdrawn from service 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 at that time. The Operator shall complete the abandonment and decommissioning in accordance with the approved abandonment and decommissioning plan Section 3. Assignment or Transfer of Interest of Operatorship Assignment or transfer of interest of Operatorship shall be allowed only upon prior written approval of the DOE Secretary based on the requirements of Guideline 7.a.4 of the Permit Application Guideline. RULE 16. CONSULTATION AND ARBITRATION a. The DOE and Operator (Parties) shall make their best efforts to amicably settle any dispute arising from the performance or interpretation of any provision hereof. b. Disputes arising between the Parties relating to this Circular or any Permit, the interpretation and performance of any of their provisions or conditions, which cannot be settled amicably, shall be settled by arbitration. The Parties shall each appoint one (1) arbitrator and so advise the other Party within thirty (30) days after receipt of a written request to do so. Such two (2) arbitrators shall appoint a third arbitrator. If either Party fails to appoint an arbitrator within thirty (30) days after receipt of a written request from the other Party to do so, such arbitrator shall be appointed, at the request of the other Party, by the President of the International Chamber of Commerce. If the first two (2) arbitrators appointed as aforesaid fail to agree on a third arbitrator within thirty (30) days after receipt of a written request from the other Party to do so, such third arbitrator shall be appointed, at the request of either Party, by the President of the International Chamber of Commeroe-{f an arbitrator fails or is unable to act, his successor will be appointed manner as the arbitrator whom he succeeds. Unless the Parties agree ise, Singapore shall be the venue of the arbitration proceedings. Page 21 of 23,c. The English language shall be the official language to be used in the arbitral proceedings. All hearing materials, statement of claim or defense, award and the reasons supporting them shall be written in English. d. The decision of a majority of the arbitrators shall be final and binding upon the Parties. Judgment upon the award rendered may be entered in any court having jurisdiction or application may be made to such court for a judicial recognition of the award and an order of enforcement as the case may be. Each Party shall bear its respective cost of arbitration unless the arbitrators decide otherwise. e. Except as provided in this Rule, arbitration shall be conducted in accordance with the Rules of Arbitration of the International Chamber of Commerce, then in effect and administered by the International Chamber of Commerce. Rule 17. INCENTIVES To attract foreign and domestic investment into the PDNGI, the Government offers various incentives through the Board of Investments (BO!) pursuant to Executive Order (EO) No. 226 or its successor, otherwise known as the Omnibus Investments Code of 1987 or pursuant to RA 7916 or the Special Economic Zone Act of 1995. The Operator, with the assistance of the DOE, may avail of these incentives subject to compliance to its inclusion and registration as either part of preferred areas of investments, pioneer or non-pioneer, export production as well as those rehabilitating and expanding its existing operation. RULE 18. OFFENSES AND PENALTIES Section 1. Offenses An offense is committed by an Operator who violated: a. Any section or rule of this Circular; b. Any condition of a Permit; and c. Any relevant order of the DOE. Section 2. Penalties Commission of an offense under Section 1 of this Rule 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, te DOE may suspend or cancel the Permits issued under this Circular including fecommendations for the cancellation of the relevant permits and clearances from Ke other Government Agencies; Page 22 of 23,Section 3. Enforcement of Rules The DOE shall conduct investigations upon its own initiative or upon receiving a complaint in writing and under oath of any allegation of violation under Section 1 of this Rule in accordance with Department Circular No. 2002-07-004 otherwise known as the Rules of Practice and Procedures before the DOE RULE 19. REPEALING CLAUSE DOE Circular 2002-08-005 or the Interim Rules and Regulations Governing the Transmission, Distribution and Supply of Natural Gas and all other rules and regulations or parts thereof, which are inconsistent with the provisions of this Circular are hereby repealed or modified accordingly. RULE 20. SEPARABILITY CLAUSE Should any provision of this Circular be subsequently declared invalid or unconstitutional, such parts not affected thereby shall remain in full force and effect RULE 21. EFFECTIVITY This Circular shall take effect fifteen (15) days afer its complete publication in at least two newspapers of general circulation and submission of a copy to the University of the Philippines Law Center. Done this _ of __, 2017 in Bonifacio Global City, Taguig City, Metro Manila. Man LFONSOG.cUS| _— ’ Secretary wi Page 23 of 23ANNEX A PERMIT APPLICATION GUIDELINE 1. Coverage This Guideline shall apply to the determination of the legal, technical and financial qualifications of an Applicant, the evaluation of applications and the grant of permits to construct, expand, rehabilitate, modify, operate and maintain Downstream Natural Gas Facilities referred to in Rule 5 of the Philippine Downstream Natural Gas Regulation (PDNGR) 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 Rule 12 of the PDNGR and shall be composed of the following: Chair: Supervising Undersecretary, Oil Industry Management Bureau or as otherwise designated by the DOE Secretary Vice Chair: Supervising Assistant Secretary, Oil Industry Management Bureau or as otherwise designated by the DOE Secretary Members : Director, Oil Industry Management Bureau (OIMB) Director, Legal Services (LS) Director, Financial Services (FS) Director, Information Technology and Management Services (TMS) ° . Responsibilities of the DNG- REC. a. Examines, evaluates, and reviews the legal, technical and financial capabilities of Applicants and recommends to the Secretary the issuance of Downstream Natural Gas Permits, namely NTP, PCERMs and POMs; b. Recommends to the Secretary the issuance of directives to qualified Government Agencies in their capacities as investing arms to spearhead the development of the PDNGI Value Chain in case it is imperative to catalyze its development within the timeline given; ¢. Recommends to the Secretary the issuance of standards and policies on facility, product and practice to ensure safety, quality, efficiency and economy; d. Supervises-and monitors the progress of construction and operation of Downstream vironment Inspection and Monitoring Team (PIA-HSSE IMT);e. Addresses any inquiry that maybe raised by the Secretary in connection to ihe permits, policies and programs endorsed for the Secretary's execution and approval: £ Recommends for approval of the Secretary and in coordination with the ERC the applicable rates or schedule of prices for the use of Transmission and/or Distribution Pipelines functioning as Public Utility; 4g, Resolves issues in relation to the legal, technical and financial capabiities of Applicants; and h. Implements all other necessary measures allowed under existing laws, rules and regulations. 4, DNG-REC Secretariat. ‘The DNG-REC Secretariat shall assist the DNG-REC in all activities related to PONG! and shall be composed of the following: Head Assistant Director, OIMB Members Head, Natural Gas Management Division, OIMB Head, Downstream Conventional Energy Division, LS Head, Downstream Conventional Energy Division, FS Head, Information Services, [TMS 5, Special Evaluation Committee or Technical Working Group. The DNG-REC shall recommend to the Secretary the creation of Special Evaluation Committee or Technical Working Group to support the DNG-REC in the implementation of this Guideline. 6. Application Procedures and Periods a. Notice To Proceed (NTP) 4, The Applicant shall submit a letter-request for a pre-application conference addressed to the DNG-REC Chair, 2. The DNG-REC shall, within three (3) working days from receipt of the letter request, send a reply-letter to the Applicant stating thereof the schedule of the pre-application conference; 3. During the pre-application conference, the Applicant shall present the general projest concept to the ONG-REC including the discussions on any clarification yr rules and requirements of the permit application; Page 2 of 204. The Applicant shall submit the application with all the documentary requirements, including the payment of processing fee, addressed to the DNG-REC Chair; 5. The DNG-REC shall, within thirty (30) working days from receipt of the application, evaluate, resolve and inform the Applicant whether or not it has submitted completely all the documentary requirements. A complete application shall qualify for further substantive legal, technical and financial evaluation while incomplete submission shall be automatically rejected without prejudice to the right of the Applicant to re-apply; 6. The DNG-REC shall conduct, within forty five (45) working days, the substantive legal, technical and financial evaluation and recommend, for approval of the DOE Secretary, the issuance or non-issuance of the NTP; 7. The DOE Secretary shall, within fifteen (15) working days from date of receipt of the recommendation from the DNG-REC, review and decide on the recommendation for approval or non-approval of the NTP. ‘The DOE Secretary may, within an appropriate additional period given to the DNG-REC, require further explanation, clarification or re-evaluation of the recommendation; . Permit to Construct, Expand, Rehabilitate, and Modify (PCERM) 8. Upon approval and issuance of the NTP, the Applicant shall be given an NTP period of six (6) months from date of issuance of NTP, extendable for up to a maximum of six (6) months upon approval of the DNG-REC, unless extended again due to Force Majeure, to secure permits or clearances from the other Government Agencies and Financial Closing (NTP Conditions); 9. Within five (5) working days from the end of the NTP period, the Applicant shall submit, for validation of the DNG-REC, its compliance to the NTP Conditions; 10.Upon validation of the fulfillment of the NTP Conditions, the DNG-REC shall then recommend, for approval of the DOE Secretary, the issuance or non- issuance of the PCERM as an authority of the Operator to proceed with the construction or expansion, rehabilitation or modification, whenever applicable, of the Natural Gas Facilities; 11. The DOE Secretary shall, within fifteen (15) working days from date of receipt of the“recommendation from the DNG-REC, review and decide on the “ommendation for approval or non- approval of the PCERM. Page 3 of 20c. The DOE Secretary may, within an appropriate additional period given to the DNG-REC, require further explanation, clarification or re-evaluation of the recommendation; 12.To monitor the progress of the project, the Operator is required to submit regular progress report, as required under guideline no. 10 of this Annex A, to the DNG-REC and, in coordination with the PIA-HSSE IMT, shall conduct on- site progress validation. The completion of construction shall be within the approved construction timeline; Permit to Operate and Maintain (POM) 13.Within thirty (30) working days from the practical completion of the construction, the Operator shall submit an application for POM attaching the Requirements for the issuance of POM under Guideline 7.2.3 of this Annex A; 14,The DNG-REC, in coordination with the PIA-HSSE IMT, shall verify the completion of construction and compliance to the testing and commissioning requirements under the EPC contract and that the Natural Gas Facility otherwise complies with applicable regulation. Upon verification, the DNG- REC shall recommend, for approval of the Secretary, the issuance of POM; and 15. The DOE Secretary shall, within fifteen (15) working days from date of receipt of the recommendation from the DNG-REC, review and decide on the recommendation for approval or non- approval of the POM The DOE Secretary may, within an appropriate additional period given to the DNG-REC, require further explanation, clarification or re-evaluation of the recommendation; and 46.By the authority of POM, the Operator shall proceed to the commercial operation of the Downstream Natural Gas Facilities for an initial period of twenty (25) years renewable for up to a maximum of twenty five (25) years subject to the following conditions: i. That the Operator and the Natural Gas Facilities continue to be legally, technically and financially competent to operate for the renewal period; and ji, That the Operator shall submit the renewal application at least six (6) months before the expiration of the POM. 7. Documentary Requirements i eral Information Page 4 of 20The Applicant shall refer to (1) any local and/or foreign individual company, or (2) incorporated joint venture Company, or (3) the designated member of an unincorporated joint venture or consortium, which is authorized for the purpose of engaging in the Downstream Natural Gas Project and wishes to secure any Permit under this Circular. The ownership and operation of the transmission and distribution pipeline considered as Public Utilities shall comply, however, with the ownership requirements pursuant to Section 3, Rule 7 of the PDNG! If the Applicant is an unincorporated joint venture or consortium, it shall, in all cases and stages of the application, construction or operation, designate from among them an Applicant who shall, in behalf of the joint venture/consortium, apply and represent the joint venture/consortium in all its dealing with the DOE; The Applicant may include the submission of the qualifications of its Applicant Group; . Assignment or transfer of interest of Operatorship shall be allowed only upon prior written approval of the DOE Secretary based on the following documentary submissions: i. Letter to the Secretary and attention to the DNG-REC of the notice of assignmentltransfer of interest and the reasons thereof, ii, Original Copy of the assignee’s Corporate Secretary's Certificate showing assumption by the assignee of all the rights and obligations of the Operatorship and attached thereof is the certified true copy of the assignment agreement; il, Submission of assignee’s complete legal_and financial documentation as set out in the Permit Application Guideline; iv. Description of the assignee’s project management team; and v. Proof of its financial closing to continuously fund the Downstream Natural Gas Project A foreign-registered Applicant shall submit its legal, technical and financial documents in English language and duly authenticated by its embassy which has operational coverage of the Philippines; . The application must be both in paper, with two (2) complete sets of legal, technical, and financial documents, and digital (USB Drive in PDF format) Recommended format is the use of the Times New Roman at 12 font and in single line spacing, figures in A4 size and maps at an appropriate scale: Page $ of 207. A non-refundable processing fee shall be paid by the Applicant in accordance with the latest DOE approved schedule of fees and charges (Annex A-1), upon submission of the application and its supporting documents. 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. Application is not considered accepted by the DOE without full payment of the processing fee; and 8. The application shall be sent by courier, registered mail, or hand-delivered, stamped-received by the DOE Records Division and addressed to: The Chair Downstream Natural Gas-Review and Evaluation Committee Department of Energy Energy Center, Rizal Drive, Bonifacio Global City, Taguig City, Metro Manila, 1632, Philippines b, Documentation 4. Requirements for the Issuance of NTP The Applicant shall submit the following documents to the DOE and shall keep all such documents and other information forming part of an application confidential in accordance with Section 5, Rule 6 of the PDNGR: 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, Articles of Incorporation and By- Laws, and latest Certificate of Amendment, if applicable; or their foreign equivalents. The corporate purpose of the Applicant shall include the authority to construct and operate Downstream Natural Gas Facilities; 3. Certified true copy of the updated General Information Sheet (GIS), or their foreign equivalent, and stamped-received by the Securities and-Exchange Commission (SEC) within twelve (12) months from yo of the filing of application; and Page 6 of 204. 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. ii, Technical Documentation 4. Applicant Profile The Applicant shall submit a duly notarized description of its own, or if necessary including that of the chosen member/s of the Applicant Group, experience and technical capability relevant to carrying out the proposed Project, specifically: a, A summary of the company profile, business direction, strategy and major accomplishments in the downstream Natural Gas industry; b. A summary 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; c. Description of the qualifications and experience of key management, professional and technical personnel in the Downstream Natural Gas Facility construction and operation; . Disclosure of any pending or determined with finality major safety or environmental enforcement actions by relevant authorities; e. Description of existing Natural Gas supply sustainability program and arrangements; f. If Applicant Group's technical capability will be used, the Secretary's certificate of the chosen member/s confirming a board resolution authorizing the commitment of the identified technical capability to the proposed Project; g. Other information that the Applicant may deem necessary to suppott its application or as maybe required by the DNG-REC. 2. Construction Plans and Designs a, General Project Description; b. Locational zoning clearance subject to the local government ning ordinance; Page 7 of 20c. Quantitative isk assessment report for safe distance requirements; d. Environmental (land, air, water and people) impact identification, prevention and mitigation assessment report of the proposed infrastructure and processes on the proposed site consistent with the Philippine Environmental Impact Statement System Law (EISS) and its implementing rules; e. Geologic, Oceanographic, Seismic, Atmospheric, and Security hazard identification, prevention and mitigation assessment report; f. Distribution Impact Study (DIS) and Distribution Asset Study (DAS) or embedded power plant construction plan for power supply requirement; g. 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; 4. 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 items guideline 2.a to 2.f above; 2, 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; 3. Planned Construction Schedule; 4. Plot Plans and list of key buildings, other facilities, equipment, access roads, safety zones and distances; 5. Manpower and construction equipment requirements 6, Management of change system; i tenance of records system; Page 8 of 20h. Third party quality assurance program validation: 1. Safety and Quality Assurance Certifications of the plans and designs of the buildings, other facilities and installed equipment; 2. Safety and Quality Assurance Certifications of the material used on the construction, facilities and equipment; and 3. Safety and Quality Assurance Certifications of the applied engineering and technology for the construction, installation and operation of the buildings, facilities and equipment; i. A summary of the execution plan for the establishment of a professional project management team for construction, installation, testing and commissioning; j. A summary report prepared by the Applicant on other Government agencies’ permitting requirements before construction and before operation; and k. Other relevant studies or assessment reports that the Applicant may deem necessary to support its application. 3. Health, Safety, Security and Environment (HSSE) Assessment and Management Plan (Construction and Equipment Installation Phase) 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 environmentel 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 includes, but are not limited to, the following: Page 9 of 20Threats to aquatic and shoreline environments; Hazardous material management; Wastewater; Air emissions; Waste management; and Oar ena Noise. b. 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 Downstream Natural Gas Facilities which includes, 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. ©aANRAARWN A are Security Risk Assessment and Management Plan Page 10 of 20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 d. 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; and . Other areas of concern that the Operator may deem necessary. Financial Documentation The Applicant shall submit the following financial reports for each application: 1 Economic/Financial Feasibility report with clear demonstration of the projected revenue versus the costs associated with the project; and Financial Closing methodology report covering the entire proposed work program and budget with clear demonstration of ability to meet funding requirements; ‘Supporting Documents: 4 Certified executed copies, which may be redacted for confidentiality reasons, of all key binding agreements required for the development of the proposed Project: a. Engineering, Procurement and Construction (EPC) agreementis; b. LNG supply agreements of Operators and/or terminal user/s; and c. Gas sales agreement/s by Operator and/or terminal user/s with power or non-power customers. 2. Certified true copy of Applicant's tax clearance certificate from its respective tax regulating Government Agency for the immediate preceding year from year of application as required by the Philippine ‘utive Order No. 398; Page 11 of 20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 Financial Statements (FS) for the last two (2) years from the date of the Application and Original copy of the latest Unaudited FS duly signed by the responsible official such as the President and/or Chief Finance Officer; b. Original copy of the Projected Cash Flow Statement covering the cash availability for the entire construction and expansion or modification, if applicable; c. Proof of ability to raise its equity share earmarked for the proposed Project as described in the Financial Closing methodology through any or a combination of the following: i. Original copy of the bank certification to substantiate the cash balance as of 10 business days prior to the date of application; and ii, Existing and readily available credit lines; . For newly-organized corporations existing for less than two (2) years at the time of filing of application a. Certified true copy of the Audited Financial Statements (FS) or Original copy of the latest Unaudited FS duly signed by the responsible official such as the President and/or Chief Finance Officer; b. Original copy of the Projected Cash Flow Statement covering the cash availability for the entire construction and expansion or modification, if applicable; and ¢. Proof of ability to raise its equity share for the project through any or a combination of the following: ii, Original copy of the bank certification to substantiate the cash balance as of 10 business days prior to the date of application; ind Page 12 of 20ii, Existing and readily available credit lines; 5. Applicant with insufficient ability to raise its equity share for the proposed Project may seek earmarked fund guarantee from the chosen member/s of the Applicant Group but shall be limited to its corresponding participating interest and shall thereby submit the following a. Certified true copy of the shareholders or Parent Company's financial documents per 3.a to 3.c and 4.a to 4.c, as applicable; and b. Secretary's certificate confirming a board resolution authorizing the contribution to the funding of the equity share corresponding to its participating interest. 2. Requirements for the Issuance of PCERM The Operator shall proceed with the acquisition of permitting requirements of other Government Agencies for the construction, expansion. rehabilitation or modification, based on the summary report prepared by the Applicant on other Government agencies’ permitting requirements which shall include the following: a. Permits 1. Applicable regulatory permits from the Department of Environment and Natural Resources (DENR) and other requirements to satisfy the Environmental Compliance Certificate (ECC) provisions from the DENR; 2. Endorsement and Permits for Operation from the Local Government Unit (LGU); 3. Certificate of Pre-Condition (CP) from the National Commission on Indigenous Peoples (NCIP), if applicable; 4. Registration and Permit to Operate from the Department of Labor and Employment (DOLE); 5. Registration with the Bureau of Internal Revenue (BIR), Philippine Health Insurance Corporation (PhilHealth), HDMF-Pag-ibig and Social Security System Corporation (SSS); 6. Firé Safety Inspection Certificate (Fire Code); Page 13 of 207. Sanitary Permit (Sanitary Code); and 8, Other permits as maybe required by law or rules b, Submission of Proof of Financial Closing. 3. Requirements for the Issuance of POM After completion of construction, the Operator shall proceed to the application of POM. The Operator shall submit an application for a POM to the DOE within thirty (30) working days from the completion of construction which shall include the following documents: a. Certificate of Completion; Refers to the certificate of practical completion and certificate of completion testing issued by the Engineering, Procurement and Construction (EPC) Contractor with the conformity of the Owner's project manager; b. Summary List of Buildings, Facilities and Equipment; c. Operational Process with Flow Diagram; Description of operational process with flow diagram of building, facilities, and equipment for testing, commissioning, operation, repair and maintenance for DOE guidance and reference; d, Health, Safety, Security and Environment (HSSE) Assessment and Management Plan (Operational Phase) 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: 4. 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 id potential impacts to the environment. Page 14 of 20Potential environmental issues associated with the construction and installations of LNG equipment 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 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 Downstream Natural Gas Facilities include but are not limited to the following: i. Fire and explosion; ii. Rolkover; iii, Contact with cold surfaces; iv. Chemigattiézaids, v. Q6nfined spaces Page 15 of 20vi. Working at heights; vii, Lifting and rigging; viii. Excavation; and ix. Other construction and installation related hazards. 3. 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 vulnerability of the facility’ location against identified threats shall likewise be assessed and corresponding plans shall be put in place 4. 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. 5. Community social development program 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, livelinood and other programs that promotes improvement of the lives and welfare of the community. 6. Other areas of concer that the Operator may deem necessary. e. Permitting Requirement of Other Government Agencies for the Operation of the Facility which shall include the following: 1. Applicable regulatory permits from the Department of Environment and Natural Resources (DENR) and other requirements to satisfy the Environmental Compliance Certificate (ECC) provisions from the DENR; 2. Endorsement and Permits for Operation from the Local Government pe Page 16 of 203. Certificate of Pre-Condition (CP) from the National Commission on Indigenous Peoples (NCIP), if applicable; 4. Registration and Permit to Operate from the Department of Labor and Employment (DOLE); 5. Registration with the Bureau of Internal Revenue (BIR), Philippine Health Insurance Corporation (PhilHealth), HDMF-Pag-ibig and Social Security System Corporation (SSS); 6. Fire Safety Inspection Certificate (Fire Code); 7. Sanitary Permit (Sanitary Code); and 8. Other permits as maybe required by law or rules 8. Evaluation Criteria a. In order to meet the objectives of the PDNGI development, the DOE Secretary, upon the recommendation of the DNG-REC, shall grant Permits applied for under the formal application process as described under this Guideline on a first-come, first-served basis, with due consideration for objectivity and transparency in the conduct of evaluation, recommendation and issuance of permits. b. First-come, first-served basis shall refer to the process of prioritizing the acceptance and substantive evaluation by order of time and date of application but applicable only to those with complete legal, technical and financial documentary submissions. c. The DNG-REC and the Doe Secretary shall consider the following criteria in the evaluation of the proposed Project 4. The proposed Project is consistent with the Declaration of Policies in this Circular; and 2. The Applicant: Has submitted the complete documentary requirements; ii, Has shown that the proposed Project can be actually constructed and operated; ii, Has clearly demonstrated its ability to meet the funding requirements; a iv. Has-clearly demonstrated that the proposed Project has sufficient market justify its construction; Page 17 of 20,v. Has clearly demonstrated that the proposed Project has sufficient supply of LNG; and vi. Has clearly demonstrated that the proposed Project shall not result to any Anti-Competitive Act. 9. Operational Meeting The Operator shall participate, with the DNG-REC, in a regular operational meeting and special workshops for the development, issuance and review of plans, protocols, standards and codes applicable to the Natural Gas project; 10. Progress Report and Validation The Operator shall submit a monthly progress report, as set out in Annex B, of its work commitments under the NTP and PCERM which shall be subject for validation by the DNG-REC in coordination with the PIA- HSSE IMT. 14. Performance Operators whose permits issued under this Guideline and/or service/operating contract holders whose contracts executed with the DOE, have been terminated for breach, and a disqualified from applying under this Guideline. Page 18 of 20Annex A-1 SCHEDULE OF FEES AND CHARGES CY 2013 Name of Fee ‘Amount ~ (Php) 1. For filing an application for the grant of permit or other form of authorization to construct, Php 10.00 per meter of install, own, operate, an maintain pipeline _ pipeline system to transport energy resources 2. Processing fee for permit application for LNG | Php 113,000 terminal and related facilities __|_per project application 3. Processing fee for permit application for LNG | Php 93,000 terminal and related facilities ___per project application 4, Processing fee for permit application for 7 Php 81,000 supply of natural gas __|_per project application [6. Annual fee for the regulation and supervision | Php41,000 of e & transmission and distribution Per facility oo Page 19 of 20Annex A-2 PARTICULARS OPERATOR PARENT COMPANY JOINT \VENTURE/CONSORTIUM MEMBERS. PARENT COMPANY 1. NAME AND, PARTICIPATING INTEREST 2. ADDRESS 3.COUNTRY OF REGISTRATION “4. NAME OF AUTHORIZED REPRESENTATIVE 5. POSITION (6. TELEPHONE NUMBER/S, 7. FAX NUMBER/S 8. EMAIL ADDRESS ‘9. WEBSITE ADDRESS 10. SUMMARY DESCRIPTION OF APPLICATION: Construct Expand Rehabilitate Modify Operate & Maintain Certification certify under penalty of law, based on information and belief formed after reasonable inquiry, the staiements and information contained in these documents are true, accurate and complete. Name and Signature of Authorized Representative: Date: oe Page 20 of 20ANNEX B OPERATOR AND FACILITY REGISTRY AND REPORTORIAL REQUIREMENTS GUIDELINE a. NTP Holder 1. Monthly Progress Report The Operator shall submit a monthly progress report on the status of the permitting, clearances and financial closing acquisition to the DNG-REC, copy furnished the Department of Energy- Oil Industry Management Bureau, Department of Energy (DOE- OIMB), on or before the fifteenth (15th) day of the succeeding month. b. PCERM Holder 1. Monthly Progress Report. During construction / expansion / rehabilitation / modification of the Project the Permit holder shall submit a monthly progress report to the DNG-REC, copy furnished the DOE- OIMB, on or before the fifteenth (15th) day of the succeeding month, This Report shall include, among others, the following: i. Gantt chart showing the rate of completion based on the construction timeline; ii, Summary of ongoing site activities, schedules and photos; iii, Compliance update report to Government permitting, clearances and obligations; and iv, Update Report on issues and challenges encountered during the month. 2. Lost-Time Incident Report. The Operator shalll report to the DNG-REC, copy furnished the DOE- OIMB, on any lost-time incident situation and the corresponding action/s taken ar to be undertaken within twenty-four (24) hours from the time the Applicant has Pa made aware of the situation.c. POM Holder 1. Registry The DOE- OIMB shall maintain a registry of all Downstream Natural Gas Facility Operators, their buildings, facilities and equipment. For this purpose, all Operators are required to submit on or before the fifteenth (15th) day of January Annual facility update report containing, among others, the following: i. Updated Management Profile; and ii. Inventory of building, facilities and equipment and their operational and disposal status 2. Reportorial Requirements to be submitted to the DNG-REC, copy furnished the DOE- OIMB, on or before the fifteenth (15th) day of the succeeding month. i, Monthly Operation Report, The Report shall include, but not limited to, the following 1. Operational Performance; 2. Planned or Projected System Availability and Maintenance Schedule (for the next two years); 3. Production output; 4. Goal-zero Milestones / Days since Loss Time Incident (LTI); 5. Key developments / Highlights and Lowlights; and 6. HSSE Integrity Performance ii, Lost-Time Incident Report. The Operator shall report any lost-time incident situation and the corresponding action/s taken or to be undertaken within twenty-four (24) ye from the time the Applicant has been made aware of the situation. Page 2 of2ANNEX IMPORTER AND SUPPLIER ACCREDITATION GUIDELINE. 4. Accreditation a. Applicant Any Person who intends to engage in the import and/or supply and transport of any quantity of Natural Gas shall apply for accreditation with the Department of Energy- Oil Industry Management Bureau (DOE-OIMB). b. Documentary Requirements All applications for accreditation to import and/or supply and transport of Natural Gas shall comply with all of the following documentary requirements otherwise the application shall not be accepted: 4. Letter of Intent with the following information: i. Company Name (Business name, address, telephone numbers, email address); ii. Contact Person and Contact Details; and iii. Activity to engage in: () Import (.) Supply and Transport () Both 2. Supporting documents required: Importer 1, Articles of incorporation/Certificate of Registration approved by Securities and Exchange Commission (SEC) including Audited Financial Statement, if corporation and Department of Trade and Industry (DTI), if single proprietorship: 2. Duly executed Secretary's Certificate and Board Resolution naming their authorized representatives;4. Importer's Clearance Certificate (ICC) from the Bureau of Internal Revenue; 5. Certificate of Accreditation as Importer from the Bureau of Customs; 6. Duly executed redacted importation agreement; and 7. Other supporting and relevant documents that the law or rules may require. ii. Supplier 1. Articles of Incorporation/Certificate of Registration approved by Securities and Exchange Commission (SEC) including Audited Financial Statement, if corporation and Department of Trade and Industry (DTI), if single proprietorship; 2. Duly executed Secretary's Certificate and Board Resolution naming their authorized representative/s; 3. Business Permit; 4. Duly executed redacted supply agreement; and 5. Other supporting and relevant documents that the law or rules may require. . Importer and Supplier Accreditation Certificate All compliant applications shall be accredited by DOE-OIMB and be issued by an LNG Importer Accreditation Certificate (Annex C-1) and Natural Gas Supplier Accreditation Certificate (Annex C-2) c. Validity LNG Importer Accreditation Certificate and Natural Gas Supplier Accreditation Certificate shall have a validity of fifteen (15) years from date of issuance unless earlier revoked or cancelled by DOE-OIMB for a cause. Application for renewal shall be filed-riot later than thirty (30) working days prior to the expiration of the accreditation certificate. Page 2 0f62. Acknowledgement to Import LNG (ATI-LNG) and Acknowledgement to Supply and Transport Natural Gas (AST-NG) Accredited Importer and Supplier shall send applicable notice prior to every activity. ‘An Acknowledgement to Import LNG (ATI-LNG) (Annex C-3) and Acknowledgement to Supply and Transport Natural Gas (AST-NG) (Annex C-4) shall likewise be issued by the DOE-OIMB a. Importation 1. Pre-Importation Requirements To effectively monitor and ensure conformance to the Basel Convention, accredited Importer shall file a notice (Annex C-5) with the DOE-OIMB not later than seven (7) working days prior to loading of every importation, indicating details and/or supporting documents, as follows i. Details of Pre- importation Notice: 1 2 7. 8. Name of Company and OIMB-Accreditation No.; Estimated quantity; Specified quality of Natural Gas or LNG; Estimated date of loading and arrival (ETL & ETA); ‘Supplier of imported LNG; Estimated FOB price, freight, insurance cost and other importation cost, Vessel particulars (name and voyage number); and Country and port of loading and discharge. ii. Supporting Document: me Invoice Page 30f62. Post-Importation Documents. Post-importation notice shall be submitted to the DOE-OIMB not later than twenty (20) working days after unloading of every importation with the following supporting documents: i, Commercial Invoice; ii, Import bill of lading; ili, Safety Data Sheet (SDS); iv. Certificate of quality; v. Final import entry declaration; and vi, Statement of Settlement of Duties and Taxes (SSDT) b. Supply and Transport 4. Domestic Accredited Supplier shall submit monitoring reports to DOE-OIMB not later than the 15th of the succeeding month. 2. Export i. Pre-exportation notice To effectively monitor and ensure conformance to the Base! Convention, accredited Supplier shall file @ notice (Annex C-6) with the OIMB-OIMB not later than seven (7) working days prior to loading of every exportation indicating the details and submission of supporting documents, as follows: 1. Details a. Name of Company and DOE-OIMB-Accreditation No.; b. Type and quantity (volume) of Natural Gas or LNG: c. Estimated date of loading and arrival (ETL & ETA); Buyer of exported LNG; Page 4 0f6©. FOB price, freight and insurance cost; f Vessel Particulars (name and voyage number); g. Port of Loading; and h. Country and Port of Discharge. 2. Supporting Document a. Proforma Invoice il. Post-exportation documents. To account for the record of the actual export, a notice shall be likewise submitted to the OIMB-DOE not later than twenty (20) working days after loading of every export with the following supporting documents: 1 2: 3. 4. Commercial Invoice; Export Bill of Lading; Certificate of Quality; and Cargo Manifest 3. Monitoring Reports All registered importers and suppliers shall submit to the DOE-OIMB the monthly reports on or before the fifteenth (15th) day of the succeeding month, with the following details as follows: a. Monthly Reports: 4. Importer i. Actual quantity of LNG importation made for the previous month; Running Inventory; iii, Average unbundled LNG purchase price: and iv. Average unbundled LNG sales Price; Page 5 of62. Supplier i. Actual quantity of LNG supply made for the previous month: ji, Running Inventory, iii, Average unbundled LNG purchase price; and iv. Average unbundled LNG sales Price; b. Annual Reports: 1. Projected quantity of Imports and/or supply for the next three (3) years. 4. Compliance Failure to comply with the requirements of this guideline shall be ground for the suspension or cancellation of the accreditation and the non-issuance of ATI and AST for succeeding applications. Annex C-1 LNG Importer Accreditation Certificate Annex C-2 Natural Gas Supplier Accreditation Certificate Annex C-3 Acknowledgement fo Import LNG (ATI-LNG) Annex C-4 Acknowigagement to Supply and Transport Natural Gas (AST-NG) Page 6 of 6Annex C-1: LNG Importer Accreditation Certificate Date Company Name Company Address Contact Numbers Email Address Salutat This is to acknowledge receipt of your notification letter dated relative to your interest in the business as LNG Importer with the following information{documents: Company Name (Business name, address, telephone number/s, email address); “| Contact Person and Contact Details; Activity to Engage in () Import; (.) Supply and Transport; () Both; () Others: Articles of Incorporation/Certificate of Registration approved by Securities and Exchange Commission (SEC), if corporation and Department of Trade and Industry (DT), if single proprietorship; Duly Executed Secretary's Certificate and Board Resolution naming their authorized representative/s: © Importer’s Clearance Certificate (ICC) of the Bureau of internal Revenue (BIR); and Certificate of Accreditation as Importer by Bureau of Customs (BOC): In this regard, you are deemed to have fully complied with the requirements of Import and Supply Guidelines of PDNGR and as such, you are now a Registered and Accredited Importer of LNG and been issued an LNG Importer Accreditation Certificate. Further, you are reminded to comply with the requirements of PNGR's Reportorial Requirements including submission of reports. For your proper guidance and strict compliance. Very truly yours, Director ~~ Ot Management BureauDate Company Name Company Address Contact Numbers Email Address Salutation: This is to acknowledge receipt of your notification letter dated relative to your interest in the business as Natural Gas Supplier with the following information/documents © Company Name (Business name, address, telephone number/s, email address); = Contact Person and Contact Details; Activity to Engage in: () Import; (.) Supply and Transport () Both; () Others: Articles of Incorporation/Ceriificate of Registration approved by Securities and Exchange Commission (SEC), if corporation and Department of Trade and Industry (DT!), if single proprietorship; and Duly Executed Secretary's Certificate and Board Resolution naming their authorized representative/s. In this regard, you are deemed to have fully complied with the requirements of Importer and Supplier Accreditation Guideline of PDNGR and as such, you are now a Registered and Accredited Natural Gas Supplier and been issued a Natural Gas ‘Supplier Accreditation Certificate. Further, you are reminded to comply with the requirements of PDNGR's Reportorial Requirements including submission of reports, For your proper guidance and strict compliance Very truly yours, a Director Oil Indystfy Management BureauANNEX C-3: Acknowledgement to Import LNG (ATI-LNG) Date DOE-OIMB Accreditation #: YYYY-Mi Company Name Company Address Contact Numbers Email Address Attention: Salutation: This is to certify your compliance with (reference, ie. DC or RA) notification requirement for your Importation of LNG from with details as follows’ EST. GIF VOLUME Propuct | (ineubic | PRICE | LOADPORT | pisport | BL Date | vegse, meter) _| (ussmmera The following documents were attached in your notification Commercial Invoice Import Bill of Lading Safety Data Sheet (SDS) Certificate of Quality Final Import Entry Declaration ‘Statement of Settlement of Duties and Taxes (SSDT) Ponens However, as per the reportorial requirements of (reference, i.e. DC or RA), you are also required ‘every 18% of the month, to submit monthly ectivily report of your actual importation to this Bureau. Failure to comply with the notice requirement shall mean non-issuance of ATI-LNG for your succeeding transactions. Please be guided accordingly. Very truly yours, ctor Oil Industry Management Bureau oeANNEX G-4: Acknowledgement to Supply and Transport Natural Gas (AST-NG) Date DOE-OIMB Accreditation #: YYYY-MM-Doc# ‘Company Name Company Address Contact Numbers Email Address Attention Salutat This is to certify your compliance with (reference, i.e. DC or RA) notification requirement for your Supply and Transport Natural Gas to (Name of Company) with details as follows: EST. FOB | QUANTITY PRODUCT | (in cubic | ygoRICE | LOAPPORT | isport | Sate | vesser [tesa® | (ussimmery) The following documents were attached in your notification: 1. Commercial Invoice 2. Export Bill of Lading 2. Certificate of Quality 3. Cargo Manifest However, as per the reportorial requirements of (reference. ie. DC or RA), you are also required every 15"of the month, to submit monthly activity report of your actual importation to this Bureau. Failure to comply with the notice requirement shall mean non-issuance of AST- NG for your succeeding transactions Please be guided accordingly. Very truly yours, Director Oil Industry Management Bureau ec:_BOC Commissioner oY