Petroleum Act of 1949

Article 83

Application for Pipe Line Concession shall be filed with the Director of Mines in accordance with article twenty-eight of this Act. When the granting of a Pipe Line Concession is obligatory upon the Government by reason of the provisions of article eleven, and provided, that all the requirements of this Act and of the Regulations have been complied with, an application filed shall operate to confer upon the concessionaire all the rights and obligations which are conferred by this Act through such a concession, pending the execution of the contract of concession. Pipe Line Concession may also be granted to any person legally qualified under this Act, who is not a holder of an Exploitation or Refining Concession, upon his filing with the Director of Mines an application therefor.

Article 84

When an application for a Pipe Line Concession is filed, the applicant shall pay an application fee of two thousand pesos, in the manner prescribed by the Regulations. In the event that no concession is granted corresponding to such application, the sum shall be returned to the applicant less such amount as corresponds to the expenses incurred by the Government in connection with the consideration, as determined by the Regulations.

Article 85

A pipe line concessionaire acquires the non-exclusive right to transport petroleum, by means of, and through, a pipe line or system of pipe lines, between the sources of production and/or refining and the places defined in the Pipe Line Concession, in accordance with the provisions of this Act and the Regulations. This concession right includes the construction and operation of pipe lines, pumping or compressing stations, storage tanks, gas tanks, power plants, shops, storehouses and other buildings, water supply and communication systems, roads, and such other equipment or facilities as may be needed for the purpose of the concession. All such auxiliary works and operations and the products thereof shall be for the exclusive use of the concessionaire in the operation of his concession: Provided, however, That all roads and bridges constructed by the concessionaire, except as may otherwise be agreed upon between the Secretary of Agriculture and Natural Resources and the concessionaire, shall be available for public use.

Article 86

A pipe line concessionaire shall have the preferential right to utilize his installations for the transportation of petroleum owned by him, but is obligated to utilize any remaining transportation capacity pro rata for the transportation of such other petroleum as may be offered by others for transport, and to charge without discrimination such rates as may have been approved by the Secretary of Agriculture and Natural Resources. When the pipe line concessionaire is also an exploitation concessionaire, the Secretary of Agriculture and Natural Resources may require that the royalty in kind of the Government received from the same concessionaire, be transported, pro rata, with that owned by the concessionaire from the same concession; and in all cases the petroleum of the Government shall have priority over all other petroleum in the utilization of the excess capacity of the pipe line over that required to transport petroleum owned by the pipe line concessionaire. Procedure for the determination of pipe line transportation rates and the conditions governing the transportation of petroleum other than that owned by the concessionaire shall conform to the Regulations.

Article 87

The term of a Pipe Line Concession shall not exceed twenty-five years counted from the date of its issuance, renewable for another twenty-five years, upon application of the concessionaire filed prior to the expiration of the original term.

Article 88

Any Pipe Line Concession may be renounced at any time, except when the undertaking to build a pipe line is imposed upon an Exploitation Concessionaire under the provisions of article nineteen of this Act, in which case, the renunciation shall be subject to the prior written approval of the Secretary of Agriculture and Natural Resources. Renunciation extinguishes all rights granted by the concession, but does not relieve the concessionaire from making any payments due to the Government.