An Ordinance Regulating Extraction, Disposition, Utilization and Processing of Quarry and Other Mineral Resources within the Province of Isabela

April 8, 2014 Excerpt from the Minutes of the 28th Regular Session of the Sangguniang Panlalawigan of Isabela Held at Faustino N. Dy Hall, Capitol, Ilagan, Isabela on April 08, 2014. ISABELA PROVINCIAL ORDINANCE NO. 005-14 AN ORDINANCE REGULATING THE EXTRACTION, DISPOSITION, UTILIZATION AND PROCESSING OF QUARRY AND OTHER MINERAL RESOURCES WITHIN THE TERRITORIAL JURISDICTION OF THE PROVINCE OF ISABELA AND IMPOSING VARIOUS TAXES AND FEES THEREFORE BE IT ORDAINED BY THE SANGGUNIANG PANLALAWIGAN OF ISABELA, in session duly assembled, that: ARTICLE I Definition of Terms SECTION 1. Terminology. Unless otherwise specified, the terms and phrases in these rules and regulations shall have the following meaning: Boulders Are fragments of rock retained on a 75mm (3 inches) US standard mesh/sieve. ENRO ENVIRONMENT AND NATURAL RESOURCES OFFICE The implementing arm of the Provincial Government on Environment and Natural Resources concerns. Extraction The act or process of taking, excavating and removing sand, gravel and boulders. Foreshore The area offshore beyond 100 meters from the water mark at the mean low tide extending seaward or lakeward. Government The Government of the Province of Isabela. Gravel Are particles of rock passing 7mm sieve. Large-Scale Mining Refers to mining activities which rely more on heavy mechanized equipment using advanced mining technologies and mainly operate in mining areas with more than 20 hectares. Metallic Mineral A mineral having brilliant appearance, quite opaque to light, usually giving a black or very dark streak, and from which a metallic element/component can be extracted/utilized for profit. cDHAES Mineral Refers to all naturally occurring inorganic substance in solid, gas, liquid, or any intermediate state. Mineral Lands Means any area where mineral resources are found. Non-Metallic Mineral Refers to a mineral usually dull luster, generally light-colored, transmits light, usually giving either colorless or light colored streak from which a non-metallic element/component can be extracted/utilized for profit. Ordinary Earth The ordinary soil (lupa). Ore Refers to a naturally occurring substance or material from which a mineral or element can be mined and/or processed for profit. Permit A written warrant or licensure granted for sand and gravel commercial, industrial, gratuitous and small-scale mining permit issued under this Order. Permittee One to whom a permit is issued under these regulations. Private Lands Those lands belonging to private persons with complete titles as well as those claimed by bonafide holder, claimant, or occupant with imperfect title. Public Lands The portion of public domain to which title remains vested to the Government. Public waters Bodies of water belonging to the public domain such as but not limited to seas, bays, lakes, ponds, creeks, streams, rivers and swamps. Puka Refers to the portion of a shell that is sometimes found mixed with sand and gravel. Quarry Resources Refer to any common rock or other mineral substances such as andesite, basalt, conglomerates, coral sand, diatomaceous earth, diorite, decorative stones, gabbro, granite, limestone, marbles, marl, red burning clays for potteries and bricks, rhyolite, rock phosphate, sandstone, serpentine, shale, tuff, volcanic cinders and volcanic glass. Quarrying Means the process of extracting, removing and disposing quarry resources found on or underneath the surface of public or private lands. Regulations An official rule or law that deals with details or process and pertains to procedures enacted under this ordinance. River Bed Bed of creeks, streams, bedrocks, etc., found covered by water during its highest flood without causing inundation. Sand Are particles of rock passing 2mm sieve. Small-Scale Mining Refers to mining activities which rely majorly on manual labor using simple implements and methods and do not use explosives or heavy mining equipment. Treasurer The Provincial Treasurer of Isabela. PMRD Provincial Mining Regulatory Board. SECTION 2. Permit to Take or Dispose Off Materials. No person, corporation, partnership or government entity/instrumentality shall be allowed to take or dispose off materials covered by these regulations both from public or private lands unless authorized under a permit issued in accordance with this Ordinance. ARTICLE II General Provisions SECTION 3. Kinds of Permits and Terms Thereof. Under this Ordinance, there are six (6) kinds of Permits that may be issued, namely: a) Commercial Sand and Gravel Permit the area applied should not be more than five (5) hectares with a term of one (1) year only from the date of issuance, renewable for one or more terms but not to exceed twenty five (25) years. b) Industrial Sand and Gravel Permit the area applied should not be more than five (5) hectares with permit duration of five (5) years Permittee with corresponding financial and technical capability. c) Gratuitous Permit Applied by any government entity/instrumentality with duly approved Program of Work (POW) and for a period coterminous with the project in public land(s) covering an area of not more than two (2) hectares. d) Exclusive Permit to be applied by any person for extraction, removal and utilization of sand and gravel and other loose or unconsolidated materials from public land for its own use covering an area of not more than one (1) hectare for a non-renewable period not exceeding sixty (60) days and a maximum volume of fifty (50) cubic meters, provided, that there will be no commercial disposition thereof. e) Small-Scale Mining Permit a permit issued where the applied area should not be more than twenty (20) hectares and the issuance of which is exclusively by the Provincial Government with permit duration of two (2) years. f) Special Permit shall be issued to any individual who wish to develop his idle land into productive use, wherein, during the course of development, there is a need to extract or remove specific volume of earth of sand and gravel materials therefrom. ASEcHI For areas of more than twenty (20) hectares, this will already be applied through Large-Scale Mining Permit duly issued by the Mines and Geo-Sciences Bureau Regional Office. SECTION 4. General Guidelines in Quarry and Mining Operations. This is for strict implementation and compliance of all permittees/quarry operators within the province for safety and precautionary measures. a) All conveyance vehicles accredited as haulers of quarry and other mineral resources shall issue delivery receipts for every trip from all quarry outlets within the province of Isabela, delivery receipts thereof shall be recorded by the monitoring checkpoint/team for purposes of recording proper quarry tax collection/s. Conveyance vehicles without the necessary delivery receipts shall be impounded by the monitoring team. Provided that such delivery receipts shall be within the controlling powers of the Environment and Natural Resources Office. b) Protective covering must be used to cover sand, gravel or any other quarry and mineral resources loaded on the conveyance vehicles prior to delivery to its final destination. Provided further that trucks and or conveyance vehicles without the necessary protective covering shall be stopped at each designated monitoring checkpoint for proper compliance and with the corresponding penalty for non-compliance. c) Quarry materials shall be only up to the height of the side wall (without side extension). This is in strict coordination with of the quarry operators. d) Quarry operators may check garbage hauled as backload from other places dumping to the quarry sites. Trucks carrying garbage shall be stopped/impounded. e) Strict observance of hauling time within the quarry sites from 8:00 o'clock in the morning up to 5:00 o'clock in the afternoon only. There should be no hauling allowed before and beyond the specified time. SECTION 5. Permit Fees, Taxes and Other Charges. The Province through the Provincial Treasurer or his/her authorized representative shall collect the following fees: a) Commercial/Industrial/Gratuitous and Exclusive Sand and Gravel Permit Application (5 hectares and below) PERMIT APPLICATION AMOUNT OF FEES AND CHARGES 1. Application/Processing/Filing Fee 1,000.00 2. P.D. 1856 (Legal Research Fee) 20.00 3. Project Description Outline Fee 310.00 4. Governor's Permit Fee 5,000.00 5. Field Verification Fee 5,000.00 (P1,000.00/man-day but not to exceed P5,000.00) Total P11,330.00 ========= b) There shall be an imposition of Extraction, Accreditation, Quarry Fees, Mine Rehabilitation Fund (MRF) & Environmental Guarantee Fund (EGF) SAND AND GRAVEL PERMIT AMOUNT (all for commercial, industrial, gratuitous) 1. Extraction Fee per cubic meter 10.00 2. Accreditation Fee (per proprietor) 2,520.00 - Accreditation sticker per unit equipment 100.00 per year 3. Quarry Fees at 10% of fair market value (sharing of proceeds for the Barangay: 40%, Municipality: 30% & the Province: 30%) - Boulders (per cubic meter) 40.00 - G1/S1 (per cubic meter) 30.00 - Mixed gravel (per cubic meter) 20.00 - Ordinary earth (mountain soil, clay, etc.) 15.00 4. Mine Rehabilitation Fund (MRF) per cubic meter for Sand, Gravel and Quarrying 5.00 MINING PERMIT (for all small-scale & large-scale mining) 5. Extraction Fee per kilo (Guano) 1.00 6. Extraction Fee per cubic meter (Metallic and Non-Metallic Minerals) 10.00 7. Environmental Guarantee Fund (EGF) for Small-Scale Mining Permits (per permit 500,000.00 basis) c) Small-Scale Mining Permit Application (for metallic: copper, chromite, gold, etc. and non-metallic minerals: guano, etc.) PERMIT APPLICATION AMOUNT 1. Application/Processing/Filing Fee 5,000.00 2. P.D. 1856 (Legal Research Fee) 20.00 3. Project Description Outline Fee 500.00 4. Governor's Permit Fee 5,000.00 5. Field Verification Fee 5,000.00 Total 15,520.00 ======== d) Imposition of 10% Tax (Correction: Other term for Excise Tax) levied from the fair market value of minerals for small scale mining ITAaHc SALES TAX PERCENTAGE 1. Metallic Mineral 2% e) Payment of Survey Fee (for new applications only) SURVEY FEE AMOUNT 1. On a per hectare basis or any equivalent fraction thereof @ P500.00/ha. 500.00 f) Payment of Mine Waste and Tailings Fees MINE WASTE/TAILINGS FEES AMOUNT 1. Mine waste and tailings fees per metric P20.00/metric ton ton/cu.m 2. Mine Rehabilitation Fund (metric ton/cu.m.) P5.00/metric ton 3. Penalties for Non-submission of Mine P5,000.00 Tailings Report (semi-annual) by the Contractor/Lessee/Permit Holder SECTION 6. Liability to Real Property Tax (For Mining Operations). Any person, grantee, concessionaire who shall undertake and execute mining operation (exploration, development and commercial utilization) of certain mineral deposits existing within the mining area shall be subject/liable to real property tax. (Sec. 6 of Local Finance Circular No. 2-09) SECTION 7. Collection of Shares from the Payment of Occupation Fees for Large-Scale Mining Rights (for EP, MA, FTAA, TEP, SMP, MLC) as per DENR Adm. Order No. 08-2005. PARTICULARS 1. Mineral reservation areas @ P100.00/hectare or a fraction thereof 30% for the province 70% for the municipality 2. Non-mineral reservation areas @ P75.00/hectare or a fraction thereof 30% for the province 70% for the municipality SECTION 8. Fees and Charges for Ore Transport Permit Application (Small-Scale Mining Permit). The transport permit shall be prepared by the ENRO to be signed and issued by the Provincial Governor or his duly authorized representative with the corresponding fees to be paid at the Provincial Treasurers Office. TRANSPORT PERMIT AMOUNT OF FEES & CHARGES 1. Metallic minerals 5,000.00/application 2. Non-metallic minerals 3,000.00/application SECTION 9. Surcharge for Late Payment. Failure to pay the tax in Sections 5, 6 and 7 of this Ordinance shall subject the taxpayer to a surcharge of twenty five percent (25%) of the original amount of tax due, such surcharges shall be paid at the same time and in the same manner as the tax due. SECTION 10. Interest on Unpaid Tax. In addition to the surcharge for late payment, there shall be imposed upon the unpaid amount an interest of two percent (2%) per month from the due date until the tax is fully paid but in no case shall the total interest on the unpaid amount or portion thereof exceed thirty six (36) months or seventy two percent (72%). SECTION 11. Imposition of Other Charges. There shall be collected the following from any individual, partnership or corporation for the exploitation of quarry and mineral resources. FOR REGISTERING OF MINING AMOUNT INSTRUMENTS AND DOCUMENTS a. Per Special Power of Attorney 200.00 b. Transfer of Other Assignments 1,000.00 c. All Other Instruments Affecting Mining 3,000.00 Rights d. Additional per P.D. 1856 (Legal 20.00 Research Fee) e. Request for Certification 50.00 SECTION 12. Who may be Granted a Permit. A permit shall be issued to any applicant who has complied with the requirements prescribed by these rules and regulations and other pertinent laws and who possesses the following qualifications: a. In case of an individual, he must be of legal age and a citizen of the Philippines; b. In case of a corporation or partnership, it shall be organized under the laws of the Philippines duly registered with the Securities and Exchange Commission and at least 60% of the capital of which shall at all times be owned and controlled by citizens of the Philippines; and c. In case of government agency/office, it must be duly recognized and existing, and in need of materials for infrastructure projects and certified true by the agency concerned. CHTAIc SECTION 13. Filing, Processing and Approval of Permit Applications. The permit to extract sand, gravel, quarry, mines and other mineral resources shall be filed within the Environment and Natural Resources Office and shall be exclusively issued by the Provincial Governor upon recommendation of the Provincial Mining Regulatory Board and with the corresponding fees paid to the Provincial Treasurer: a. Filing of Permit. The permit to extract sand, gravel, quarry, mines and other mineral sources shall be filed at the Environment and Natural Resources Office. b. Processing. The Environment and Natural Resources Office under its Mineral Resources Management Division shall process all quarry and mining permit applications and shall determine compliance of all the necessary requirements mentioned in this Ordinance and payment of the corresponding fees, taxes and charges to the Provincial Treasurer. c. Deliberation. The Provincial Mining Regulatory Board shall convene quarterly or as the need arises to deliberate all quarry and mining permit applications for their recommendation for approval by the Provincial Governor. d. Approval. The Permit shall be exclusively issued by the Provincial Governor or his duly authorized representative. SECTION 14. Specific Conditions for the Issuance of the Permit. Permits issued under this Ordinance shall be subject to the following terms and conditions: a. The Permit issued may be suspended or revoked at any time by the Provincial Governor, as the case maybe, when in his opinion, public interest so requires or upon failure of the Permittee to comply with the other terms and conditions stated in the Permit. b. The statements made in the application or those made later in support thereof shall be considered as conditions and essential parts of the Permit and any misrepresentations therein shall be a cause for the suspension or revocation of the Permit. c. Permits issued may be revoked if they inflict serious damage to the environment like destruction of foundation of bridges, roads, public buildings or private residences or properties and appropriate charges and/or penalties shall be imposed. d. The removal or taking of materials under the Permit shall be confined within the area specified therein. The boundaries of which, according to the application are established on the ground with prominent marks. e. Extraction or removal of quarry and mineral resources shall not be allowed without the corresponding permit issued. f. Extraction or removal of quarry and mineral resources in excess of the allowed quantity specified in the permit shall be considered an infringement and be subject for permit revocation. g. Extraction or removal of quarry and mineral resources outside the permit area shall also be considered as a vocation and ground for permit revocation. h. No extraction or removal of materials within a distance of one (1) kilometer (per RA 7942 or Philippine Mining Act of 1995) from the boundaries of reservoirs established for public water supply and any public or private works and structures unless the prior clearance of the agency or owner concerned is obtained, and twenty (20) meters away from the embankment or rivers and creeks. i. The Permittee shall assume full responsibility and shall be liable for damages to private or public property that may occur during his extraction or operation under the permit. j. The Provincial Treasurer or his/her duly authorized representative shall issue the corresponding official receipt on the required taxes and fees imposed under this Ordinance. k. All haulers, processors, traders, dealers, and retailers in the trading of mineral/mineral products and by-products shall be required to secure sticker to be issued by the Provincial Treasurer's Office (PTO) upon payment of the amount of P100.00 per sticker to be placed permanently on the windshield of the vehicle used for quarrying and transportation of sand, gravel, and other quarry and mineral resources. Such Sticker shall be valid for a period of one (1) year only. SECTION 15. Administrative Provisions. a. Convening of the Provincial Mining and Regulatory Board (PMRB). Within a reasonable period, PMRB shall be convened by the Provincial Governor composed of the Regional Director of DENR-MGB as Chairman, the Provincial Governor as Vice Chairman and representatives from the Small-Scale Miners, Large-Scale Miners and DENR accredited Environment NGO as Members with the ENR Office acting as the technical arm and secretariat of the said Board (under Executive Order No. 2011-02) for the deliberation of permit applications, for proper disposition. EATCcI b. Keeping of Permit. The permit shall be for the exclusive use of the permittee and shall keep and post the permit at the place where the removal or taking of materials is made. It shall be made available at all times for the inspection and examination by the authorized representative of the Provincial Governor, the ENR Officer or the Provincial Treasurer. c. Monthly Reports. The permitee shall submit to the ENR Office within ten (10) days after the end of each month a sworn report containing the quantity/volume of quarry materials removed or extracted, the amount of taxes and fees paid, stating therein the Official Receipt number and date issued, the quantity sold or disposed of during the period covered by the report, the selling price, the name and address of the person or persons to whom the same were sold. d. Record and Inspection. The ENRO & PTO shall conduct regular inspection of book of accounts, check production against allowable volume, and conduct inventory of active operations and other transactions relative to the business and report to the Governor's Office from time to time as may be required the activities performed in connection with these rules and regulations. e. Rehabilitation of Excavated Areas. Quarry permittees shall rehabilitate the excavated area to a condition suitable for agricultural or other economic activities. f. Surety Bond. To guarantee faithful compliance with the terms and conditions stated in the permit, a surety bond in the amount of Twenty Thousand Pesos (Php20,000.00) per application shall be posted by the applicant with surety acceptable/accredited to the Provincial Treasurer, or his/her authorized representative. g. Corporate Social Responsibility. The permitee shall commit to undertake Corporate Social Responsibility (CSR) through the delivery of sand, gravel and filling materials to sustain environment and provide meaningful support and services to the community. Including but not limited to minor road maintenance. h. "No Hauling Pass/Plate Number, No Loading" Policy. Quarry permitees shall not allow entry of vehicles not having the Provincial Hauling & Loading Stickers that signifies their payment of taxes and fees due to the government. It must be the duty of quarry operators to advice truck owners who have not complied with these regulations to settle their obligations to the Provincial Government. Likewise, motor vehicles without plate numbers are deemed technically impounded and should not be allowed to load, haul or transport quarry materials. i. Safety Regulations. Motor vehicles used for hauling, transporting and delivery of quarry resources shall be securely covered with tarpaulin or canvass materials to avoid spillage which may cause harm and/or accident. SECTION 16. Survey Plan. All applications under these rules and regulations shall be accompanied by a survey plan duly prepared, signed and sealed by a deputized License Geodetic Engineer. Such plan shall contain general information including technical description, reference point, location map and operational plan which shall contain a rehabilitation of the area applied for when necessary. SECTION 17. Assignment and Transfer. An application or a permit can be assigned or transferred by the applicant or permittee to any qualified individual/entity in an instrument duly notarized registered and approved by with the Office of the Governor upon the payment of the required registration fee of One Thousand Pesos (Php1,000.00). No succeeding transfer maybe allowed anymore. ARTICLE III Quarrying and Mining Operations SECTION 18. Commercial Permit. A commercial permit shall be issued for the extraction, removal and disposition of sand and gravel and other loose or unconsolidated materials which are taken in their natural or original state without undergoing processing covering an area of not more than five (5) hectares for a term of one (1) year renewable subject to submission of the following requirements: a. Application Form (MGB Form No. 8-3, 8-4); b. Survey plan signed by Deputized License Geodetic Engineer; c. Barangay Certification; d. Zoning Certification; e. Mayor's Certification; f. Certificate of Projection from Mines & Geo-Sciences Bureau (MGB); R-02 and g. Environmental Compliance Certificate (ECC) from Environmental Management Bureau (EMB). SECTION 19. Industrial Permit. An industrial permit shall be issued for the extraction, removal and disposition of sand and gravel and other loose or unconsolidated materials that necessitate the use of mechanical processing covering an area of not more than five (5) hectares at any one time for a term of five (5) years renewable but not to exceed twenty five (25) years. The permittee should have the technical and financial capability and shall be allowed until after the processing machinery or crushing equipment shall been installed by the permittee. Provided, further, that failure of the permittee to install the required equipment within one (1) year from the grant of the permit may cause the revocation of permit. DHITCc SECTION 20. Gratuitous Permit. This permit shall be applied by any government entity/instrumentality in need of quarry, sand and gravel or loose/unconsolidated materials with the corresponding program of work in the construction of building(s) and/or infrastructure for public use or other purposes for a period coterminous with the construction stage of the project but not to exceed one (1) year in public land(s) covering an area of not more than two (2) hectares. SECTION 21. Small-Scale Mining Permit. The applied area for small-scale mining permit should not be more than twenty (20) hectares and shall be exclusively issued by the Provincial Government with permit duration of two (2) years with the following required documents: a. Sketch plan/map duly surveyed by deputized Geodetic Engineer by the Mines & Geo-Sciences Bureau (MGB) R-02; b. Certificate of projection from MGB; c. Barangay Certification; d. Zoning Certification; e. Mayor Certification; f. Clearance from the Office of the National Commission of Indigenous Peoples; g. Two (2)-year development plan and work program; h. Proof of Technical Competence Submit bio-data of the Mining Engineer; i. Proof of Financial Capability Latest Audited Financial Report; j. Photocopy of Articles of Incorporation and By-Laws duly certified by Securities and Exchange Commission (SEC) if Corporation & Company; k. Environmental Compliance Certificate (ECC) from DENR-EMB; and l. Environmental Management Plan. SECTION 22. Earth Moving Permit with Commercial Disposition. This applies to areas subjected to Scrapping and Hauling for Commercial Purposes with the following requirements: a. Letter of Intent with limit to up to two (2) hectares; b. Sketch plan with vicinity map; c. Title, tax declaration of the site; d. Barangay Certification; e. Municipal Certification; f. List of Equipment to be used; g. Volume to be extracted; and h. Environmental Compliance Certificate (ECC) from EMB. SECTION 23. Desilting/Dredging Permit with Commercial Disposition. Applies to areas with heavily built-up sediments, alluvial piles, and other related mineral residues within river channels in the province of Isabela. Requirements: a. Letter of Intent addressed to the LCE; b. Survey plan with mineral product estimates; and c. Dredging/Desilting Work Plan with Environmental Protection and Enhancement Program (EPEP). SECTION 24. Limitations on the Issuance of Permits. Only one (1) permit shall be granted to an applicant in a municipality at any one time under such terms and conditions as provided therein. a) Commercial/Industrial Permit The issuance of commercial and industrial permits are subject to the following requirements : a.1. Duly accomplished Application Form, reviewed, notarized and approved a.2. Special Power of Attorney if applicant is represented by another person. Special Power of Attorney should be notarized and registered in the local government unit a.3. In case of Industrial Permit, program of work, project study by a registered engineer stating among others, the nature and kind of materials applied for, production rate, equipment and machineries to be used, estimated volume of the deposit a.4. Tax Clearance from the Office of the Provincial Treasurer a.5. Official Receipt covering payment of corresponding application fees cEaSHC a.6. Consent of landowner in case the area of extraction is within private properties, and a.7. Sand and Gravel Tax should be paid in advance before extraction is made b) Gratuitous Permit: The issuance of gratuitous permit shall be subject to the following conditions : b.1. That the grant shall be coterminous with the term of the project. b.2. That the office of the municipal, provincial and district engineer shall use its trucks or other government vehicles in transporting materials. b.3. That the government office concerned shall submit a project proposal where the material to be taken shall be used and the estimated volume needed. b.4. That the material extracted shall be used exclusively for government projects and in no case shall be disposed of commercially, otherwise, person responsible therefor shall be liable for prosecution under appropriate laws, and b.5. That the district, provincial and municipal engineer shall submit monthly reports to the Provincial Governor, copy furnished the Provincial Treasurer on the quantity of Sand and Gravel and other construction materials extracted and the specific projects where they were used. ARTICLE IV Penal Clause SECTION 25. Unlawful Acts. The following shall constitute unlawful acts under these rules, to wit: a. Any extraction or removal of quarry and mineral resources without the permit duly issued. b. Any extraction or removal of quarry and mineral resources in excess of the allowed quantity specified in the permit. c. Extraction or removal of quarry and mineral resources outside the permitted area. d. Collection of quarry fees and taxes by unauthorized individuals and other assessments which are not prescribed in this ordinance are deemed illegal and shall be penalized for imprisonment, to be determined by the court of law. e. Any other acts committed in violation of the terms and conditions of the Permit issued. SECTION 26. Penalties for Unlawful Acts. Commission of any of the unlawful acts referred to in the preceding section shall subject the offender to penalties provided for under these provisions: a. Extraction and removal or sale of quarry and mineral resources without permit and/or outside permitted area shall be prosecuted for violation of this Article punishable by a fine and cancellation of their accreditation as follows: First Offense = Php2,500.00 Second Offense = 3,000.00 Third Offense = 5,000.00 and cancellation of Accreditations b. Truck drivers and haulers of quarry resources who fail to present the required official receipt and/or monitoring ticket upon demand shall pay the corresponding penalty per truckload for materials being transported as follows: First Offense = Php2,500.00 Second Offense = 3,000.00 Third Offense = 5,000.00 Failure to pay the penalty shall be a cause for the impounding of materials and vehicles by the Province to be released only upon payment of the required amount to the PTO, and if not, the transported quarry materials and mineral resources shall be forfeited in favor of the Province. c. Non-payment by the quarry operators of the required taxes and fees mentioned in the above Articles prior to extraction and hauling of the quarry materials and/or by the truckers or haulers (under the Article on Taxes & Fees on Delivery Trucks and/or Vans) shall cause the impounding of the motor vehicle used in the hauling and transporting of the quarry resources, which shall be released only upon full payment of the required taxes and fees and the penalty of One Thousand Pesos (Php1,000.00) per truck. d. Non-payment of the required penalties shall be without prejudice to the impounding by the province of the equipment and vehicles used in violation of the above Articles and/or the filing of the appropriate charges before courts of competent jurisdictions. CTIEac e. Collection of taxes and fees by unauthorized persons or collecting agency shall be prosecuted before courts of competent jurisdiction. ARTICLE V Manpower Requirement SECTION 27. Monitoring of Sand, Gravel and Other Quarry and Mineral Resources. Pursuant to Section 138 of RA 7160, the Provincial Government thru the ENR Office as its implementing arm on ENR concerns is tasked to effectively carry out the enforcement of pertinent laws on small scale mining and quarrying operations for the proper collection of taxes and fees on sand, gravel and other quarry resources by the Provincial Treasurer's Office. a) Duty of the Provincial Mining Regulatory Board It shall be the responsibility of the PMRB to accept and evaluate and conduct a preliminary study of all applications for quarry permit, to determine compliance of all requirements and conditions and to recommend to the Governor the approval or disapproval of the application as the case may be. Determine appropriate fair market value of the sand and gravel and other quarry resources. b) Duty of the Environment and Natural Resources Officer (ENRO) It shall be the duty of the ENRO to monitor the quarry, quarrying activities and the actual extraction of quarry materials to determine activities that may endanger the environment. If the quarrying will be detrimental to the ecology then it shall recommend to the Governor through the Board disapproval of the application or recall of the permit already issued. It shall be responsible in monitoring the volume of extraction from the quarry and shall submit periodic report to the Provincial Treasurer for validation as a basis for collection of dues and taxes and to conduct periodic inspection of the quarry area to determine compliance of all the conditions of the permit and report regularly to the Governor. c) Duty of the Provincial Treasurer it shall be the duty of the Provincial Treasurer to collect taxes, fees and other charges due by virtue hereof. d) Sharing of the proceeds of the Tax the proceeds of the tax on sand, gravel earth and other quarry resources applied for, shall be distributed as follows: 1) Province Thirty percent (30%) 2) Component City or municipality where the stones, gravel, earth and other quarry resources are extracted Thirty percent (30%) 3) Barangay where the stones, sand gravel, earth and other quarry resources are extracted Forty percent (40%) SECTION 28. Creation and Hiring of Additional Manpower. The province has an existing 22 municipalities with potential quarry sites. In order to effectively safeguard these resources and to efficiently collect the corresponding fees and taxes due to the Provincial Government of Isabela, the following positions are hereby required, to wit: a. One (1) Geodetic Engineer I b. Forty two (42) Watchers ARTICLE V Miscellaneous Provisions SECTION 29. Recognition of Existing Mining Rights. All existing and valid mining claims, perfected and non-perfected, registered under the provisions of Commonwealth Act No. 157 as amended, Presidential Decree No. 4643 as amended, and the other laws relating to mining shall be recognized and the rights acquired there under respected. SECTION 30. Preferential Right. Owners/lessees of private lands shall have the preferential right to extract and remove sand and gravel materials that may be found in their land. Lands with imperfect title shall be recognized if supported by up-to-date payment of realty taxes. Provided, that any extraction of sand and gravel and other earth materials for commercial purposes shall be subject to tax. SECTION 31. Failure to Keep Book of Accounts. Failure of the Permittee, as required in this Ordinance to keep a book of accounts containing the records of transactions related to the materials removed and disposed of, shall be sufficient ground for the suspension or revocation of the permit, the confiscation of the bond and forfeiture of all payments made by the permittee. SECTION 32. Repealing Clause/Provisions. All ordinances, resolutions, executive orders and other issuances related to sand, gravel and mining operations or parts thereof, inconsistent with this Ordinance are hereby repealed or modified accordingly. SECTION 33. Separability Clause. If for any reason a provision or application of this Ordinance is declared invalid or unconstitutional, all other provisions hereof not affected thereby shall continue to be in full force and effect. SECTION 34. Effectivity. This Ordinance shall take effect fifteen (15) days following the completion of its full publication. SaCIDT ARTICLE VI Publication SECTION 35. Funding. An amount of Two Hundred Thousand Pesos shall be allocated and is hereby appropriated for the publication of this Ordinance which shall be sourced from any available funds and/or General Fund. SECTION 36. Period of Publication. This Ordinance shall be published in two consecutive issues of a local newspaper of general circulation within the Province of Isabela. ENACTED and APPROVED, April 8, 2014. I HEREBY ATTEST TO THE GENUINENESS AND AUTHENTICITY of the foregoing Ordinance: (SGD.) MANUEL R. SANTOS Secretary, Sangguniang Panlalawigan ATTESTED: (SGD.) ANTONIO T. ALBANO Provincial Vice Governor & Presiding Officer APPROVED: (SGD.) HON. FAUSTINO G. DY, III Provincial Governor