PCSD RESOLUTION NO. 16-550

“AMENDING SEP CLEARANCE NO. OGEP-082714-024 FOR OIL AND GAS EXPLORATION PROJECT UNDER SERVICE CONTRACT NO. 6A (SC-6A) REPLACING PITKIN PETROLEUM PLC WITH PHILODRILL CORPORATION AS CO-PROPONENT WITH DEPARTMENT OF ENERGY (DOE)”

WHEREAS,paragraph 8 of Republic Act 7611 or the SEP for Palawan Act states that the Council is 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”;

WHEREAS,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, as amended, 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, Section 15 of the same Administrative Order provides for the transferability of the Clearance which states that: “The SEP Clearance may be transferred as long as a document shall be submitted showing the transfer of ownership, operating agreements or rights over the property;

WHEREAS, on April 27, 2014, an SEP Clearance was issued for the project entitled Oil and Gas Exploration Project in Service Contract No. 6A (SC-6A) with Pitkin Petroleum PLC represented by Atty. Arturo B. Maulion and the Department of Energy (DOE) as the project proponents;

WHEREAS, on a letter dated 23 May 2016, the Department of Energy’s (DOE) Energy Resource Development Bureau wrote the PCSDS Executive Director endorsing the request for amendment of SEP Clearance No. OGEP-082714-024, specifically the change in the name of the project proponents from Pitkin Petroleum PLC and Department of Energy into Philodrill Corporation and Department of Energy in view of the withdrawal of Pitkin Petroleum PLC and the formal Deed of Assignment defining the current composition of SC 6A joint venture, which was approved by DOE on May 14, 2015;

WHEREAS,considering that this project is imbued with public interest, it is but necessary that this bodygrants the amendment of the SEP Clearance for SC-6A as requested;

WHEREFORE, in consideration of the foregoing premises and on motion duly seconded, the Council resolves to approve, as it is hereby APPROVED,amending SEP Clearance No. OGEP-082714-024 for Oil and Gas Exploration Project under Service Contract No. 6a (SC-6a) replacing Pitkin Petroleum PLC with Philodrill Corporation as co-proponent with Department of Energy (DOE);

RESOLVED FURTHER, that the amended SEP Clearance shall be released onlyupon submission to the PCSDSof the complete company profile, transfer of ownership, operating agreements or rights over the propertyof the new operator PhilodrillCorporation;

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

ADOPTED AND APPROVED this 26^thday 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:

JOSE CH. ALVAREZ

Chairman, PCSD