Coal Development Act of

1976
 coal consuming country

great demand

has a vast potential for coal resources

Accelerated exploration Production
&
Utilization

Development Cooperation
&
Participation

Exploitation Upgrade on
the capabilities
 Coal Development Program
Purpose: Effect of Program:
 To encourage the participation of the private  Division into coal regions
sector  Institution of Exploitation Programs
 To promote and develop the technical and  “Coal-Operating Contracts”
financial capability in exploiting coal
resources
 To effectively explore and exploit coal  Exercise of Power of Eminent Domain
resources
 To be able to meet the particular needs of such
regions (coal units) according to its coal
resources
 Coal Development Program
Energy Resource Development Bureau

Formulates and implements government policies, programs and regulations

relating to the
 exploration,
 development and
 production
of indigenous petroleum, coal and geothermal energy resources, and related
product and market development thereof

 Has two (2) divisions:

 Petroleum Division
 Geothermal and Coal Division
 What it is:
An authorization for

Coal Operating  exploration,

 development, and;
 production
of coal resources in the
contracted area
Bacaltos Coal Mines
v
Court of Appeals
G.R. No. 114091
 What it means for the operator:

1. Technical competence
Coal Operating 2. Financial capability
3. Examination/investigation
of the land
4. Extraction and utilization
of coal deposits
5. To be reimbursed
6. Timber and Water Rights
 The government shall:
1. Provide service,
technology, financing
Coal Operating
2. Observe the mining
practices
3. Present data and
information to the Bureau
4. Maintain records and
account
 The Bureau shall:
1. Reimburse the
Coal Operating operator (not exceeding
90% of the gross proceeds)

2. Pay the operator a fee

(not exceeding 40% of the
balance of the gross income)
 Coal Operating

INCENTIVES

To operators: To users:
-exemption from taxes (except - tax exemption and
income tax credit on imported
- exemption from tariff duties an equipment
compensating tax - income tax
- prioritized in financial assistance exemption
- freedom on the employment of
- priority in
personnel
government loans
Industrial Enterprises, Inc.
v
Court of Appeals
G.R. No. 88550