PCSD RESOLUTION NO. 16-549

“RATIFYING THE ACTION OF THE PCSD EXECUTIVE DIRECTOR IN ISSUING AND SIGNING THE AMENDED SEP CLEARANCE FOR OIL AND GAS EXPLORATION PROJECT UNDER SERVICE CONTRACT NO. 74 (SC 74) OF PHILEX PETROLEUM CORPORATION, PHILODRILL CORPORATION AND PHILIPPINE NATIONAL OIL COMPANY EXPLORATION CORPORATION”

WHEREAS,in the exercise of its mandate provided in Section 19, paragraph 8 of Republic Act 7611 or the SEP for Palawan Act which states that the Council is hereby vested with the power to “adopt, amend and rescind such rules and regulations and impose penalties therefor for the effective implementation of the SEP and the other provisions of this Act,” the Palawan Council for Sustainable Development promulgated PCSD Administrative Order No. 06, as amended, otherwise known as the Revised Guidelines in the Implementation of the SEP Clearance System;

WHEREAS, under PCSD Administrative Order No. 06, any person intending to implement a project or carry out an undertaking within the Province of Palawan shall secure from the Palawan Council for Sustainable Development (PCSD) a Strategic Environmental Plan (SEP) Clearance, a document issued by the PCSDS Executive Director or by the PCSD certifying that the proposed project is in accordance with the SEP for Palawan Act or the Republic Act No. 7611 subject to the compliance of the requirements provided in the SEP Clearance System;

WHEREAS,under the same Administrative Order, Section 12 provides that “For Category A projects or those projects located outside the Environmentally Critical Areas that are pollutive and/or extractive, the Executive Director shall submit his recommendation to the PCSD which, in turn, shall decide whether or not to approve the project application and issue the corresponding SEP Clearance upon payment of the SEP Clearance Fee;

WHEREAS, the project entitled “Oil and Gas Exploration Project under Service Contract No. 74 (SC 74) is grouped under Category A;

WHEREAS, in a letter dated 23 May 2016, the Department of Energy’s (DOE) Energy Resources Development Bureau wrote the PCSDS Executive Director endorsing the request for amendment of SEP Clearance No. OGEP-082714-026, specifically the change in the name of the project’s proponent from Pitkin Petroleum PLC and Philodrill Corporation into Philex Petroleum Corporation, Philodrill Corporation and PNOC EC in view of the transfer of participating interest and operatorship from Pitkin Petroleum PLC to Philex Petroleum Corporation which was approved by DOE on April 25, 2016;

WHEREAS, on May 25, 2016, the PCSDS Executive Director signed and issued the SEP Clearance pertaining to the above-mentioned project’s request for amendment of the name of project proponent;

WHEREAS, in today’s regular meeting, the issuance of the PCSDS Executive Director of the amended SEP Clearance to the said project was presented for confirmation of this body;

WHEREAS, considering that this project is imbued with public interest, it is but necessary that this body ratifies the action taken by the PCSD Executive Director;

WHEREFORE, in consideration of the foregoing premises and on motion duly seconded, the Council resolves to approve, as it is hereby APPROVED, ratifying the action of the PCSD Executive Director in issuing and signing the amended SEP Clearance for Oil and Gas Exploration Project under Service Contract No. 74 (SC 74) of the Philex Petroleum Corporation, Philodrill Corporation and PNOC Exploration Corporation;

RESOLVED FINALLY, that copies of this resolution be furnished theDOE, the above-mentioned proponents and other concerned agencies and LGU’s for their information and guidance;

ADOPTED AND APPROVED this 26^th day of May 2016 at Puerto Princesa City.

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I hereby certify that the above-quoted resolution has been duly adopted by the PCSD on the26^th day of May 2016.

NELSON P. DEVANADERA

Secretary

ATTESTED BY:

HON. JOSE CH. ALVAREZ

Chairman, PCSD