Petroleum Act of 1949

Article 1

The short title of this Act shall be "Petroleum Act of 1949. "

Article 2

When used in this Act, the following terms shall, unless the context otherwise indicates, have the following respective meanings: (a) "Petroleum" shall include any mineral oil, hydrocarbon gas, bitumen, asphalt, mineral wax, and all other similar or naturally associated substances; with the exception of coal, peat, bituminous shale, and/or other stratified mineral fuel deposits. (b)"Crude oil" means oil in its natural state before the same has been refined or otherwise treated, but excluding water and foreign substances. (c) "Natural gas" means gas obtained from boreholes and wells and consisting primarily of hydrocarbon. (d) "Government" means the Government of the Philippines. (e)"State" means the Republic of the Philippines. (f)"Permittee," "concessionaire" or "contractor" means a person to whom a permit, concession, or contract, as the case may be, has been granted or awarded under the provisions of this Act, his successors and assigns. (g)"Person" includes a natural person, corporation, or partnership. (h)A "barrel" is equivalent to 158. 98 liters or 42 U. S. gallons. (i)All measurements of distances, width, length, areas, depth and volume, and weight shall be in the system designated by the Secretary of Agriculture and Natural Resources. (Amendments to R. A. No. 387 (Petroleum Act of 1949), Republic Act No. 3098, [June 17, 1961]) (j)Words in singular shall include the plural, and vice versa.

Article 3

All natural deposits or occurrences of petroleum or natural gas in public and/or private lands in the Philippines, whether found in, on or under the surface of dry lands, creeks, rivers, lakes, or other submerged lands within the territorial waters or on the continental shelf, or its analogue in an archipelago, seaward from the shores of the Philippines which are not within the territories of other countries, belong to the State, inalienably and imprescriptibly.

Article 4

The ownership or the right to the use of lands for agricultural, industrial, commercial, residential, mining, or for any purpose other than for petroleum exploration, development or exploitation does not include the ownership of, nor the right to explore for, exploit, or utilize the petroleum or natural gas deposits in, on or under the surface of such land.

Article 5

The right to explore for, develop, exploit or utilize the petroleum resources described in article three hereof may only be granted to duly qualified persons by means of concessions in accordance with the provisions of this Act. The Government, however, reserves the right to undertake such work either by itself or through its instrumentalities, or through competent persons qualified to undertake such work as independent contractor or contractors under a contract of service executed for the Republic of the Philippines by the President and approved by the Congress of the Philippines in accordance with the provisions of article thirteen of this Act. Exploration or exploitation rights may be exclusive within certain areas; but no exclusive rights may be granted for refining or transportation.

Article 6

The granting of concession under this Act is discretionary with the Government, except in the cases mentioned in article eleven hereof, where, upon the fulfillment of the formalities and requirements of this Act, the granting thereof is obligatory upon the Government.

Article 7

Everything relating to the exploration for and exploitation of petroleum which may exist naturally or below the surface of the earth, and everything relating to the manufacture, refining, storage, or transportation by special methods of petroleum as provided for in this Act, is hereby declared to be of public utility.

Article 8

Concessions referred to in this Act shall be granted at the complete risk of the interested party. The Government does not guarantee the existence of petroleum or undertake, in any case, title warranty.

Article 9

Exploration and Exploitation Concessions do not confer upon the concessionaire the ownership over the petroleum lands and petroleum deposits, but only the right to explore for, develop, exploit, and utilize them for the period and under the conditions determined by this Act.