Amendment to the Rules and Regulations Implementing Presidential Decree No. 1251

June 25, 1981

MNR ORDER NO. 03-81

 

Pursuant to the authority granted the undersigned under Section 4 of Presidential Decree No. 1251, Sections 10 and 11 of Ministry Order No. 1, Series of 1979, are hereby amended for the information of all concerned.

SECTION 1. Section 10 of Ministry Order No. 1, Series of 1979 is hereby amended to read, as follows:

"CHAPTER V"

"Guidelines in Damage Assessment"

"Sec. 10. Factors/Criteria in Damage Assessment —

a. Compensation for damages to real property shall not exceed the market value of the real property as determined by the Provincial Assessor.

b. Damages sustained prior to 1977 shall not be entertained, provided that applications for compensation for damages incurred during the year 1977, 1978, 1979 and 1980 shall have been filed as June 30, 1981.

c. Damages to Agriculture —

1) Land/Soil

a) Crop originally fit for planting in the area.

b) Previous production without pollution.

c) Loss of fertility.

d) Depreciation of market value.

e) Possible change of use from that which land is previously devoted productively.

f) Location and accessibility

g) Declared assessed and market value.

d. Damages to Crops —

(1) Total destruction to crops.

(2) Decrease in production.

(3) Increase in cost of production.

 Increased

a) Labor, e.g.

1) Transplanting

2) Weeding

b) Fertilizer

c) Seedlings

d) Pesticides

e) Others — Treatment of seeds.

e. Damages to Infrastructures —

An assessment of damages to infrastructures shall be determined by considering the following factors:

(1) desilting of canals

(2) crop yield

(3) inability to irrigate area

(4) loss due to low irrigation fee collection

f. Damages to Forest Products —

Where grown forest products cannot in any way be salvaged for use by the owner, the assessment must be based on current market value at the stump for timber or current assessed market value in case of other forest products.

g. Damages to Marine and Aquatic Resources —

(1) Fishponds

a) No. of milkfish stocked.

b) No. of other fishery fish products stocked.

c) Volume of harvest produced per year in kilograms.

d) Cost of milkfish fingerlings stocked.

e) Cost of fertilizer/pesticides applied.

f) Cost of other fish and fishery aquatic products.

g) Sales and marketable milkfish or other fish and fishery/aquatic products.

h) Total maintenance and operating expenses

i) Area in hectares of fishponds affected/damaged by mine wastes/tailings.

j) Total amount of damaged claimed.

SECTION 2. Section 11 of Ministry Order No. 1, Series of 1979, is hereby amended to read, as follows:

"CHAPTER VI"

"Category of Mining Companies and Fees to be Paid"

"Sec. 11. Determination of Fees to be Paid — For the purpose of these regulations, all operating mining companies shall be categorized into metallic and non-metallic mines and are hereby required to pay the fees as herein fixed:

METALLIC MINES

TAILINGS

A. For mining companies which are disposing their tailings by utilizing dams/ponds, the tailing fee shall be from P0.05 to P0.10 per metric ton with the following formula to be used in determining the amount of tailings fee per metric ton:

Tailings fee/ton = P0.05 +[0.05 (TWMF) - .05 (TWPF)]

TWMF — Total Weighted Minus Factor

TWPF — Total Weighted Plus Factor

In using the above formula, the following groups were considered, each factor having a corresponding weight:

1.	Minus Factor	Weight
	a)	Area affected by tailings	80%
	b)	Toxicity of Tailings	20%
			——
			100%
2.	Plus Factor	Weight
	a)	Pollution Abatement Measures
1.	Investment	40%
2.	Annual Expenses	20%
	b)	Assets	15%
	c)	Annual Sales	25%
			——
			100%

Multiplying the weight of a factor by its rating gives the weighted rating (WR). The total weighted rating of the minus factors is the TWMF while the total weighted rating of the plus factors is the TWPF.

1. Basis for the Rating of the Factor "Area Affected"

The mining companies whose tailings do not affect farmlands are given the minimum rating of 50%. For the mining companies whose tailings affect farmlands, the basis for their is in the following table:

RATING (%)	AREAS AFFECTED (Has.)
60	less than 50
70	50 to 200
80	200 to 500
90	more than 500

2. Basis of Rating for the Factor "Degree of Toxicity"

Those processing chromite are rated 10%. The mining companies processing copper ore with no arsenic content are rated 20%. Those processing copper ore with appreciable amounts of lead and/or arsenic are rated 70%. Lastly, the tailings of the nickel and gold processing plants are rated 80%.

3. Basis of Rating for the Plus Factor

POLLUTION ABATEMENT

		ANNUAL	SALES	ASSETS
(%)	INVESTMENT	EXPENSES	REVENUE	MILLION
RATING	MILLION (P)	THOUSAND (P)	MILLION P/YR.	(P)
10	Below 2	Below 200	Below 10	Below 100
20	2	200	10	100
30	5	300	25	150
40	7	400	50	200
50	10	500	100	400
60	15	800	200	600
70	20	1500	400	800
80	30	3000	600	1000
90	40	4000	800	1500
100	50 or more	5000 or more	1000 or more	2000 or more

B. Mining companies which are disposing their tailings into the sea by means of pipelines, launders and tunnels shall pay P0.01 per metric ton of tailings disposed.

C. Amounts of tailings used as fill materials for underground mined-out areas shall be exempted from the mine tailings fee.

D. Those without tailings ponds/dams shall pay P1.00 per metric ton.

MINE WASTE FEE

A. Mine waste exempted from payment of mine waste fee:

1. Mine waste used for underground fill.

2. Mine waste used for rehabilitation and restoration of mined-out and tailings-covered areas.

3. Mine waste used for infrastructure such as road and building construction and for fill material for sites of buildings and playgrounds.

4. Mine waste impounded for future use in the restoration and rehabilitation program of the mining company when the impoundment area is such that no waste will be carried into drainage systems or into properties other than the company's or land contracted by the company.

B. Mine waste other than those mentioned in A that are dumped into sites where it is likely to be carried into drainage systems or to cause damage to properties not owned by or under contract with the company shall be subject to the fee of P0.05 per metric ton.

C. Each mining company shall submit semi-annually to the Bureau of Mines and Geo-Sciences a report under oath which states the total amount of mine waste exempted from the payments of the fee and how the exempted tonnages are utilized/contained.

NON METALLIC MINES

A. The rules which determine the mine waste fees of metallic mining operations shall also apply to non-metallic mines.

B. Fee for washings, slimes and non-useful by-products:

1. Non-metallic mines with settling and/or treatment plants — P0.05 per metric ton.

2. Those without settling and/or treatment plants — P0.10 per metric ton.

Sec. 12. Manner and Time of Payment — The fees herein imposed shall become due during the months of June and December of each year and payable to the Director of Mines and Geo-Sciences or his duly authorized representative within fifteen (15) days from the end of the said months. All collections shall be deposited in an officially designated depository as reserve fund not later than thirty (30) days from the end of the said months.

Sec. 13. Penalty for Failure to Pay —

Failure on the part of an operating mining company to pay the fees on time shall make said company liable for a surcharge of 10% of the fee deemed payable, for each day of delay beyond the designated days."

SECTION 3. Effectivity — This order shall take effect immediately upon approval.

Approved: _______________ 

(SGD.) JOSE J. LEIDO, JR.MinisterMinistry of Natural Resources

RECOMMENDED BY:

(SGD.) JUANITO C. FERNANDEZDirectorBureau of Mines and Geo-Sciences

 

REPUBLIKA NG PILIPINAS

MINISTRI NG KATARUNGAN

TANGGAPAN NG PAMBATAS NA TULONG SA MAMAMAYAN

(CITIZENS LEGAL ASSISTANCE OFFICE)

MANILA DISTRICT OFFICE

Groundfloor, Old Congress Building

Taft Avenue, Manila

 

The Honorable MinisterMinistry of Natural ResourcesDiliman, Quezon City 

Dear Sir,

Your Office had released Ministry Order No. 3 dated June 25, 1981, considering that we have a claim against a mining firm, may we request that we given a copy of the said Order.

Thank you, August 14, 1981.

Very truly yours,

(SGD.) ALIMATAR M. CARANGANTrial Attorney IIDesignated Counsel of the Heirs of Felipe Matalino