Inside Page | Fernan A. Gianan:

The 39-year-old circular behind small-scale coal mining

The issuance of the Small-Scale Coal Mining Permit (SSCMP) to Adelbert Almario is not covered by Republic Act 7076, or the People’s Small-Scale Mining Act of 1991, but by a 1987 circular issued by the defunct Board of Energy Development (BED).

RA 7076 pertains only to mineralized areas with naturally occurring deposits of gold, silver, chromite, kaolin, silica, marble, gravel, clay and like mineral resources while BED, created pursuant to Presidential Decree 972 or the Coal Development Act of 1972, introduced the service contract system for the exploration, development and exploitation of domestic coal resources.

In 1987, BED issued Circular No. 87-03-001 providing for guidelines and procedure to implement a program that will allow small-scale coal mining in coal-bearing areas that have been traditionally mined by local residents as a source of income and economic livelihood.

This circular has been amended by Office of Energy Affairs (OEA) Circular Nos. 88-02-002 and 88-03-006, but, unfortunately, the Tribune was unable to locate said circulars on the DOE website.

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Under the original guidelines, any Filipino citizen, of legal age, and resident of the place or area where the coal deposit is located, as certified to by its barangay captain and local mayor, may apply for a small scale

coal mining permit with the BED, which is now the Department of Energy’s Energy Resource Development Bureau (ERDB).

Aside from a written undertaking between the applicant and a supervising coal operator, the survey plan, a one-year work program, and a contract of purchase of the extracted coal, the applicant is supposed to submit a written endorsement or clearance from the barangay captain and the mayor attesting that the applicant is a permanent resident of the province or municipality where the small-scale mining operations will be undertaken.

In the new guidelines for the SSCMP, the applicant is required to submit the following documents: an application letter addressed to ERDB Director; Survey Plan, Technical Description, and Lot Data Computation; Work Program including a computation of coal reserves, mining method to be used, projection of daily and annual production rates, table of organization, list of mining equipment, geological map of area applied, detailed mine plan, production cost per metric ton, minimum acceptable market price per metric ton, proof of working capital, documents for the engineers, and a business permit issued by the municipal government.

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PENRO Atty. Vivian Escoto has yet to confirm if the Lubas site where five illegal coal miners were found as well as the Obi coal mining area are outside the Catanduanes Natural Park.

Under Rule 14.6 of the National Integrated Protected Areas System (NIPAS) Act of 1992, the development and operation of non-renewable energy projects like coal are allowed only upon satisfaction of the following conditions: a) the projects are not located in areas categorized as Strict Nature Reserves and Natural Parks, and in Strict Protection Zones; b) a resolution approved by majority vote of the members of the PAMB, attesting that the non-renewable energy project is not detrimental to the environment and integrity of the protected area, and providing recommendations for consideration of the DENR Secretary; c) the projects are undertaken pursuant to Congressional legislation; and d) continuing compliance with environmental laws, rules and regulations.

If the applied area is outside the CNP, it will be a whole new ballgame.

It could become a lengthy legal battle that could wind up at the highest court of the land.

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THE JOB APPLICANT. The manager was giving the applicant the job.

“I think you will be very happy with us,” he said. “We have a bonus scheme, a non-contributory pension scheme, special medical and hospital insurance schemes, free training and recreational facilities, and a profit-sharing plan.”

“Sounds wonderful,” said the applicant,” and what are the wages?”

“Wages?” said the manager. “Hell, with all that we can’t afford wages!”

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