RULES AND OPERATING GUIDELINES TO IMPLEMENT AND ENFORCE THE SAFETY AND EXCLUSION ZONES ESTABLISHED UNDER PROCLAMATION NO. 72, SERIES OF 2001

 

 

Pursuant to Section 5, Proclamation No. 72, series of 2001, the following Rues and Operating Guidelines are hereby promulgated for the information, guidance and compliance of all concerned:

 

SECTION 1.  Title.  – These Rules and Operating Guidelines shall be referred to as the “Rules and Operating Guidelines Implementing Proclamation No. 72” or for brevity the “Proclamation 72 Rules”.

 

SEC. 2.  Purpose and Objectives.  – These Rules and Operating Guidelines are issued to implement and enforce the Safety and Exclusion Zones established under the aforesaid Proclamation 72 and prescribe the specific responsibilities and functions of the concerned Government agencies and their functional relationship to each other.

 

SEC. 3.  Definition of Terms. 

 

(a)      General terms:

 

(1)      “CALM Buoy” – the catenary anchored leg mooring (CALM) Buoy located approximately three (3) kilometers from the Platform that will be used by tankers to lift condensate from the Platform.

 

(2)      “Municipal waters” – include not only streams, lakes, inland bodies of water arid tidal waters within the municipality which are not included within the protected areas as defined under Republic Act No. 7586 (The NIPAS Law), public forest, timber lands, forest reserves or fishery reserves, but also marine waters included between two (2) lines drawn perpendicular to the general coastline from points where the boundary lines of the municipality touch the sea at low tide and a third, line parallel with the general coastline including offshore islands and fifteen (15) kilometers from such coastline.  Where two (2) municipalities are so situated on opposite shores that there is less than thirty (30) kilometers of marine waters, between them, the third line shall be equally distant from opposite shore of the respective municipalities.

 

(3)      “Platform” – the shallow-water structure located fifty (50) kilometers offshore Northwest Palawan that processes, separates and stores condensate from the extracted natural gas from the Malampaya field.

 

(4)      “Petroleum Operations” – searching for and obtaining any mineral oil, hydrocarbon gas, bitumen, asphalt, mineral gas and all other similar or naturally associated substances through drilling and pressure or suction or the like, and all other operations incidental thereto.  It includes the transportation, storage, handling and sale (whether for export or domestic consumption) of petroleum so obtained but does not include any (1) transportation of petroleum outside the Philippines; (2) processing or refining at a refinery; or (3) any transactions in the products so refined.  It shall include operations and use of vessels and aircraft not only by the Service Contractor but also by its subcontractors.

 

(5)      Project” – the Malampaya Deep Water Gas-to-Power Project of the Government, under the supervision and control of the Department of Energy (DOE), implemented by the Service Contractor under Service Contract 38 (SC 38) for the exploration and development of natural gas in the Malampaya field and its transportation to the users of the gas.  The Project includes the following major components:  (a) nine or more development wells and a subsea manifold in offshore Northwest Palawan; (b) shallow-water platform; (c) catenary anchored leg mooring (CALM) buoy; (d) required flowlines from the wells to the offshore platform, and the 504-kilometer pipeline on the seabed; (e) the onshore gas terminal; (f) associated pipelines; and (g) a potential oil rim development;

 

(6)      Service Contractor” – The petroleum service contractor of the Government under Service Contract No. 38 dated December 11, 1990 (SC 38), executed pursuant to Presidential Decree No. 87, or the “Oil Exploration and Development Act”, as amended.

 

(b)      Specific Terms in connection with Prohibited Acts in the Safety Zones:

 

(1)      “Anchoring” – to hold a vessel in a particular place by means of a line attached to a device usually of metal with fluke that digs into the seabed;

 

(2)      “Trawl fishing” – fishing using an active gear consisting of a bag-shaped net with or without otter boards to open its opening which is dragged or towed along the bottom or through the water column to take fishery species by straining them from water, including all variations and modifications of trawls (bottom, mid-water and baby trawls) and tow nets;

 

(3)      “Other fishing methods which involve the use of weights, anchors or similar devices on the seabed” include:

 

(i)       Use of “active gear” – a fishing device characterized by gear movements, and/or the pursuit of the target species by towing, lifting, and pushing the gears, surrounding, covering, dredging, pumping and scaring the target species to impoundments; such as, but not limited to, trawl, purse seines, Danish seines, bag nets, paaling, drift gillnet, and tuna longline.

 

(ii)      Use of “payao” – a fish aggregating device consisting of a floating raft anchored by a weighted line with suspended materials such as palm fronds to attract pelagic and schooling species common in deep waters.

 

(iii)     Use of “passive gear” – is characterized by the absence of gear movements and/or the pursuit of the target species, such as, but not limited to, hook and line, fishpots, traps and gillnets across the path of the fish.

 

(4)      “Use of and/or dumping of explosives” – detonating and/or disposal of dynamite, TNT, ordinance, munitions, and similar devices, substances, or chemical compounds that contain combustible elements or ingredients.

 

(5)      “Subsea activities” – operations below the surface of the water, including but not limited to geophysical/geological surveys, drilling, construction, installation of submarine pipeline and cable, seabed dredging, mining or quarrying, and offshore disposal of dredging, mining or quarrying waste.

 

(i)       “Geophysical/geological surveys” – investigation of the geological formations under the seabed through the use of various methods such as seismic, gravity, magnetic, remote sensing, echo sounding, sonal, obtaining core samples and other means to search for petroleum and/or minerals.

 

(ii)      “Drilling” – an operation consisting of applying downward force to rotate a series of drillpipes through the seabed in order to bore a hole for research and/or economic purposes.

 

(iii)     “Dredging” – excavation of sediments and soil from beneath tidal and coastal waters by mechanical or hydraulic means.

 

(c)      Specific Terms in connection with Prohibited Acts in the Exclusion Zones:

 

(a)      “Aircraft” – airplanes, helicopters and all kinds of manned or unmanned airborne vessels, including hot-air balloons, regardless of use, size, registration and nationality.

 

(b)      “Subsea activities” – shall have the same meaning as Section 3 (b) (5).

 

(c)       “Use of and/or dumping of explosives” – shall have the same meaning as Section 3 (b) (4).

 

(d)       “Vessels” – all crafts or artificial contrivance capable of floating in water, manned or unmanned, including subsea vehicles, designed to be used or capable of being used as a means of water transportation utilizing its own motive power or that of others, regardless of use, size, registration and nationality.

 

SEC. 4.  Safety and Exclusion Zones.  – The areas covered by the Safety and Exclusion Zones are as follows:

 

(a)      Exclusion Zone – The Exclusion Zone covers the waters and submerged lands in offshore Northwest Palawan which shall be for the exclusive use of the DOE and the SC 38 Service Contractor, for the construction, operation and maintenance of the Project facilities, more particularly described and bounded as follows:

 

EXCLUSION ZONE BOUNDARY

REFERRED TO LUZON DATUM, UTM ZONE

 

 

POINT

 

LATITUDE (N)

 

LONGITUDE (E)

 

1

 

11° 40’ 54”

 

118° 51’ 33”

 

2

 

11° 40’ 32”

 

118° 57’ 47”

 

3

 

11° 34’ 38”

 

119° 04’ 01”

 

4

 

11° 32’ 04”

 

119° 08’ 28”

 

5

 

11° 31’ 21”

 

119° 08’ 28”

 

6

 

11° 30’ 24”

 

119° 08’ 27”

 

7

 

11° 29’ 24”

 

119° 08’ 27”

 

8

 

11° 33’ 44”

 

118° 51’ 31”

 

 

 

The Exclusion Zone is shown in NAMRIA Chart Nos. 4200, 4316, 4706, 4707 and 4716, as the same may be updated from time to time.

 

(b)      Safety Zone – The Safety Zone covers:

 

(i)       the waters and submerged lands in offshore Palawan, Mindoro and Batangas extending up to 500 meters on either side of the 504-kilometer-long offshore pipeline of the Project; and

 

(ii)      the foreshore area in the vicinity of the onshore gas terminal in Batangas City.

 

The Safety Zone is shown in NAMRIA Chart Nos. 4200, 4214, 4256, 4256-A, 4315, 4316, 4305, 4706, 4707, 4714 and 4716, as the same may be updated from time to time.

 

SEC. 5.  Prohibited Acts.  – In the absence of the prior written authorization and/or consent issued pursuant to Section 9 hereof, the following acts are prohibited within the Safety and Exclusion Zones:

 

(a)      Safety Zone

 

(1)      trawl fishing or other fishing methods involving the use of weights, anchors or similar devices on the seabed:  Provided however, That fishing with passive gear is not prohibited in the Safety Zone;

 

(2)      anchoring;

 

(3)      use of and/or dumping of explosives;

 

(4)      subsea activities other than in connection with Service Contractor’s Petroleum Operations, and

 

(5)      all other activities which pose a potential risk to the Project infrastructure and to public safety.

 

(b)      Exclusion Zone

 

(1)      entry of vessels other than in connection with Service Contractor’s Petroleum Operations;

 

(2)      flying of aircraft below an altitude of five hundred (500) meters within a one (1) kilometer radius away from the Platform and CALM Buoy other than in connection with Service Contractor’s Petroleum Operations, without prejudice to stricter rules that may be imposed by the Air Transportation Office, in consultation with the Inter-Agency Committee created under Section 7 hereof;

 

(3)      use of and/or dumping of explosives;

 

(4)      subsea activities; and

 

(5)      all other activities which pose a potential risk to the Project infrastructure and to public safety.

 

SEC. 6.  Administration and Enforcement.  – The Department of Energy (DOE) and the Department of National Defense (DND) are the lead agencies in implementing and enforcing the provisions of these rules.  The following agencies shall support and assist the DOE and/or the DND in the administration and enforcement of the Safety and Exclusion Zones:

 

(a)      Armed Forces of the Philippines (AFP)

 

(b)      Department of Agriculture (DA)

 

Bureau of Fisheries and Aquatic Resources (BFAR)

 

(c)      Department of Environment and Natural Resources (DENR)

 

National Mapping and Resource Information Authority (NAMRIA)

 

Mines and Geosciences Bureau (MGB)

 

Environmental Management Bureau (EMB)

 

(d)      Department of Transportation and Communications (DOTC)

 

Air Transportation Office (ATO)

 

Maritime Industry Authority (MARINA)

 

National Telecommunications Commission (NTC)

 

Philippine Coast Guard (PCG)

 

Philippine Ports Authority (PPA)

 

(e)      Department of the Interior and Local Government (DILG)

 

Philippine National Police (PNP)

 

SEC. 7.  Establishment of an Inter-Agency Committee. 

 

(a)      Inter-Agency Committee.  – An Inter-Agency Committee (IAC) is hereby established composed of:  an Undersecretary of the DOE and of the DND, as Co-Chairs; and representatives of the concerned agencies enumerated in Section 6 as members.  A representative of the Service Contractor shall be an ex-officio member of the IAC.

 

(b)      Functions and Responsibilities.  The AIC shall have the following functions and responsibilities:

 

(i)       to develop a comprehensive strategy and plan for the effective administration and enforcement of the Safety and Exclusion Zones;

 

(ii)      to define the roles, responsibilities and functions of the concerned agencies and to facilitate inter-agency cooperation;

 

(iii)     to ensure that the agencies authorized by law issue complementary regulations as may be necessary to achieve the purposes of Proclamation No. 72;

 

(iv)     to allocate and channel the resources required for the security of the Project;

 

(v)      to design and implement training programs for the relevant personnel, including specialized training for the protection of the Project;

 

(vi)     to prescribed, review and update operating guidelines for, among others, the boarding and inspection of vessels and/or aircrafts, arrest or detention, and rules of engagement;

 

(vii)    to formulate and implement an information, education and communications (IEC) program;

 

(viii)   to monitor and evaluate the administration and enforcement of the Safety and Exclusion Zones, review these rules from time to time, and as necessary, to recommend the required amendments or supplements thereto;

 

(ix)     to maintain a database of reported violations of the Safety and Exclusion Zones and the actions taken thereon;

 

(x)      to submit quarterly and annual reports to the DOE Secretary and the DND Secretary; and

 

(xi)     to perform such other acts as may be necessary and incidental to achieve the purposes of Proclamation No. 72.

 

(c)      Secretariat.  The Energy Resource and Development Bureau (ERDB) of the DOE shall serve as the IAC Secretariat, and provide the technical, administrative and secretariat support to the IAC.  The Secretariat shall serve as the IAC Coordination and Operations Center for the purpose of: 

 

(i)       monitoring, coordinating, and integrating the enforcement, security operations and IEC programs on a sustained basis;

 

(ii)      receiving and analyzing reports and disseminating such reports to the relevant agencies;

 

(iii)     recommending to the IAC actions or decisions to be taken thereon;

 

(iv)     the annual review of the implementation of the enforcement, security operations and IEC programs; and

 

(v)      performing such other functions incidental or necessary for the effective implementation of these rules.

 

(d)      Subcommittees.  To facilitate the performance of its functions and responsibilities, the IAC shall have the following Subcommittees:

 

(i)       Security – with the DND as Subcommittee Chair and the following as members:  AFP, PCG, PNP.  Its principal responsibility shall be to formulate, update, and implement the security plan, subject to the review and supervision of the IAC.

 

(ii)      Enforcement – with the DILG as Subcommittee Chair and the following as members:  AFP, PCG, PNP, BFAR, ATO, PPA, NTC, MGB, and MARINA.  Its principal responsibility shall be to formulate, update and implement the enforcement plan, subject to the review and supervision of the IAC.

 

(iii)     Information, Education and Communications – with the DOE as Subcommittee Chair and the following as members:  DILG, DENR, MARINA, ATO and BFAR.  Its principal responsibility shall be to formulate, update and implement the IEC plan, subject to the review and supervision of the IAC.  It shall implement a public information, education and communications program on the Safety and Exclusion Zones for the relevant Local Government Units (LGUs), municipal fishers, and commercial fishers, among others.

 

The DOE and DND Secretaries acting jointly may, upon the recommendation of the IAC, establish other Subcommittees, or reorganize the same, as the need arises.  The IAC and its Subcommittees may seek the support and assistance of other national Government agencies and local government units, as the need arises.

 

SEC. 8.  Notice to Mariners and Air Transportation Operators.  The NAMRIA shall provide the PCG and the ATO a map of the Safety and Exclusion Zones and the applicable restrictions therein.  The ATO shall give due notice of the flight restrictions in the vicinity of the Platform and CALM Buoy through an appropriate circular to air transportation operators.  The PCG shall give due notice of the navigational restrictions in the vicinity of the Platform and CALM Buoy through an appropriate circular to vessel owners and operators.

 

The NAMRIA, PCG and ATO shall update the navigational charts used for water and air transportation to show the locations of the Safety and Exclusion Zones, and of the Municipal Waters pertaining to the relevant LGUs.

 

SEC. 9.  Authorizations and/or Consent from DOE, DND and Service Contractor– The following provisions shall govern requests for cancellation or suspension of authorizations and/or consent from the DOE, DND and Service Contractor.

 

(a)      Requests for authorization and/or consent under Section 5 of these rules, shall be addressed to the DOE Secretary for the attention of the Director, ERDB.  The ERDB shall promptly furnish the DND and the Service Contractor with copies of the request.  Within ten (10) days from receipt of the request, the DND and the Service Contractor shall advise the ERDB in writing whether or not they endorse the request, and stating the grounds therefor.  No requests for authorization and/or consent shall be granted by the DOE Secretary or his duly authorized representative without the endorsement of both DND and Service Contractor.  Authorization and/or consent may be granted by the DOE Secretary or his duly authorized representative, subject to reasonable conditions, such as requiring its representative and/or that of the Service Contractor to be present to observe the activity/operation and to ensure that the activity/operation is carried out in a safe and competent manner.  The decision of the DOE Secretary in this regard may be subject to reconsideration upon meritorious grounds.

 

(b)      The party requesting authorization and/or consent under Section 5 of these rules shall secure the required permits, certificates and consents from the following agencies:

 

(i)       BFAR for fishing in national waters;

 

(ii)      LGUs concerned for fishing in municipal waters;

 

(iii)     EMB for environmentally sensitive projects or projects located in environmentally sensitive areas;

 

(iv)     MGB for offshore mining, dredging or quarrying;

 

(v)      DOE for submarine power transmission cable, oil or gas pipelines and other energy projects;

 

(vi)     NTC for submarine telecommunications cable;

 

(vii)    PNP for the use of explosives;

 

(viii)   Public Estate Authority for reclamation projects;

 

(ix)     MARINA for utilization of vessels in Philippine waters;

 

(x)      Other Government agencies concerned, as may be required under applicable laws, rules and regulations.

 

(c)      The DOE, DND and/or Service Contractor may withhold any authorization and/or consent requested under these rules, or suspend or cancel, where one is issued, on any of the following grounds:

 

(i)       if the activity/operation is prohibited under other applicable laws, rules and regulations or ordinances governing fishing, safety of life and property at sea, environmental protection;

 

(ii)      if the party requesting or to whom authorization or consent is given fails to demonstrate that it has the financial and technical capability to carry out the activity/operation in a safe and competent manner;

 

(iii)     upon the request of the national Government agency or local government unit authorized by law to regulate the activity/operation;

 

(iv)     if the activity/operation will pose an unacceptable level of risk to the Project infrastructure and to public safety, after giving due consideration to the technical, environmental and social aspects; and/or

 

(v)      violations of the conditions as may be set forth in the authorization and/or consent.

 

SEC. 10.  Clearance to Enter Exclusion Zone.  To prevent disruption of Petroleum Operations and in the interest of safety:

 

(a)      any vessel entering the Exclusion Zone; or

 

(b)      any aircraft flying below an attitude of five hundred (500) meters within a one (1) kilometer radius any from the oil rig, Platform, or CALM Buoy, is required to obtain prior clearance to enter, and to comply with instructions, from the Platform Offshore Installation Manager (OIM).  This requirement applies to all vessels and aircraft including those of the Government, the Service Contractor, or any party previously granted an authorization and/or consent under these rules:  Provided, however, That the IAC may prescribe operating guidelines for vessels and aircraft of the Government or the Service Contractor to enter the Exclusion Zone without prior clearance during exceptional circumstances, such as, but riot limited to:  emergencies, hot pursuit, search and rescue.

 

SEC. 11.  Surveillance, Boarding and Search of Vessels.  – The security of the Project from internal and external threats is the responsibility of the Government.  All vessels and/or aircraft at or in the vicinity of the Safety and Exclusion Zones shall be subject to surveillance, boarding and search by the AFP, PCG and/or PNP which are hereby deputized to enforce these rules in accordance with the rules of engagement of the AFP, PCG and/or the PNP, as the same may be updated from time to time.  In support thereof, the Service Contractor may implement security measures as are reasonably necessary for the protection of its personnel and the Project infrastructure.  Any use of force shall be strictly in accordance with applicable laws, international conventions, and the authority granted under the operating guidelines and rules of engagement of the AFP, PCG, and/or the PNP.

 

SEC. 12.  Investigation and Prosecution.  – Any person apprehended for violations under Section 5 hereof shall be turned over to the nearest PNP station for investigation.  The PNP may request the assistance of the PCG, NTC, PPA, MGB, ATO, MARINA, BFAR and the DILG in carrying out the investigation and in determining the appropriate administrative, civil or criminal actions to be filed.

 

SEC. 13.  Rights of Existing Geophysical Survey and Exploration Contractors or Service Contractors.  – The rights of parties holding Geophysical Survey and Exploration Contracts (GSEC) or Service Contracts as of July 10, 2001 to conduct petroleum operations in the established Safety and Exclusion Zones shall not be prejudiced by the provisions of these rules, subject to a thirty (30)-day notice to the Service Contractor and prior written consent of the DOE, before any petroleum operations are conducted within the established Safety and Exclusion Zones.

 

Any request for DOE consent under this section shall be addressed to the Director of the DOE ERDB.  These activities shall not in any way jeopardize the integrity or safety of the Project infrastructure.

 

SEC. 14.  Penalties.  – Violations of the Safety and Exclusion Zones shall be subject to penalties as may be imposed by the PCG, ATO, BFAR, MARINA, PPA, NTC, MGB or other agencies authorized by law.

 

The foregoing shall be without prejudice to civil or criminal prosecution under applicable laws, rules or regulations.

 

SEC. 15.  Funding.  – Funds needed by the concerned departments/agencies for the implementation and enforcement of the Safety and Exclusion Zones for the current year shall first be taken from the respective existing appropriations and/or savings.

 

Thereafter, funding requirements for the purpose shall be incorporated in the budget proposals of the concerned departments/agencies to be submitted to the Department of Budget and Management for possible inclusion in the national expenditure program, and eventually in the annual General Appropriations Act.

 

SEC. 16.  Amendatory Clause.  – In consultation with the IAC, the DOE and DND acting jointly may amend, alter, supplement, suspend, modify, repeal, or revoke these rules or any portion hereof as may be necessary.

 

SEC. 17.  Separability Clause.  – If any clause, sentence, provision or section of these rules shall be held invalid or unconstitutional, the other provisions not otherwise affected shall remain in full force and effect.

 

SEC. 18.  Effectivity Clause.  – These rules shall take effect 15 days after publication in a newspaper of general circulation and its filing with the National Administrative Register.

 

Done this 12th day of September 2001, in Metro Manila, Philippines.

 

 

 

Department of Energy

 

Department of National Defense

 

By:

 

 

 

 

By:

 

 

 

 

VINCENT S. PEREZ, JR.

ANGELO T. REYES

Secretary

Secretary

 

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