SIXTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES — )
First Regular Session )

HOUSE OF REPRESENTATIVES
‘House Bill No,

Introduced by Representative Ben P. Evardone
Lone District, Eastern Samar

EXPLANATORY NOTE

Presidential Decree (PD) No, 910 was promulgated at a time when distorted governance
prevailed over our motherland. It entered the Philippine legal system not in accordance with the ideal
democratic legislative process where laws pass upon consensus of and after careful deliberation by
legislators representing their respective district or territorial constituency. It was engendered by the
sole will and mind of one man who was then wielding both executive and legislative powers at the
same time,

Born on March 22, 1976, fathered by former President Ferdinand E. Marcos, PD No. 910 is
certainly a product of presidential legislation, a martial law era baby.

PD No. 910 created the Energy Development Board which was tasked to implement the
declared policy of the State to achieve self-reliance in the country’s energy requirements primarily
through the intensified and coordinated exploration, exploitation and development of indigenous
energy resources in order to accelerate overall economic growth. (Sec. 2)

‘The Decree led to the discovery of the Camago-Malampaya oil and natural gas reserves,
among others. Service Contract No, 38 (SC 38), which relates to the Malampaya natural gas field
development and utilization off the coast of Palawan, was entered into pursuant to this Decree,

Under the 2" paragraph, Section 8 of the Decree, “All fees, revenues and receipts xxx as well
as the government share representing royalties, rentals, production share on service contracts and
similar payments on the exploration, development and exploitation of energy resources, shall form
part of a special fund to be used to finance energy resource development and exploitation programs
and projects of the government and for such other purposes as may be hereafter directed by the
President.”

This specific portion of Section 8, 2" paragraph remained untouched even with the
restoration and re-institutionalization of the Doctrine of Separation of Powers under the 1987
Constitution, with a slight modification in view of LGU-Palawan’s claim to a portion of the
government share, specifically under SC 38, pursuant to the Local Government Code,

Recent events have exposed the anomalous exercise of the broad Executive diser
the Malampaya ‘special funds’ (allegedly in the past administration) which resulted in dissipation of
billions of pesos. This highlighted the urgent need for Congress to revisit and modify the law in the
exercise of its constitutional duty to check on the activities of the Executive Branch, a co-equal body.



While recognizing that Section 8, paragraph 2, PD No. 910 came in handy in the
rehabilitation of the Typhoons Ondoy and Peping devastations, this bill seeks to amend the same
provision, hoping to limit the prerogatives of Chief Executive insofar as the disposition of the special
funds, and thus avoid the recurrence of scandalous expenditure of moneys coming from said fund,
‘This bill proposes the course of action Congress must take to restore the balance of power for the
benefit of the people.

‘On this score, urgent passage of this bill is earnestly sought.

BEN EVARDONE


SIXTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES
House Bill No. 2960

Introduced by Representative Ben P. Evardone
Lone et, Eastern Samar

AN ACT
AMENDING THE SECOND PARAGRAPH OF EIGHTH SECTION OF
PRESIDENTIAL DECREE NUMBERED NINE HUNDRED AND TEN (P.D. No.
910)

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
assembled:

SECTION 1, The 2" paragraph of Section 8, P.D. No. 910 is hereby am
follows:

nded to read as

“Section 8, Appropt

xX ox x

All fees, revenues and receipts of the Board from any and all sources including
receipts from service contracts and agre uch as application and processing fees,
signature bonus, discovery bonus, production bonus; all money collected from
concessionaites, representing unspent work obligations, fines and penalties under the
Petroleum Act of 1949; as well as the government share representing royalties, rentals,
production share on service contracts and similar payments on the exploration, development
and exploitation of energy resources, shall form part of a special fund to be used to finance
energy resource development , and] exploitation , AND SUCH OTHER ENERGY-
RELATED programs and projects of the government [and for such other purposes) as may
be hereafter directed by the President.

SECTION 2. All laws, decrees, executive orders, proclamations, rules and regulations, or
parts thereof inconsistent herewith are hereby repealed or modified accordingly.

‘CTION 3. This Act shall take effect fifteen (15) days after its publication in at least two
(2) national newspapers of general circulation,

Approved,