r
SEVENTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES
First Regular Session
))
SENATE 
.
S.B. NO. 1371
Senate
of lilt iiitmavp
*17 MAR-7 P5«6
RECEIVED SY:
Introduced by Senator Maria Lourdes Nancy S. Binay
EXPLANATORY NOTE
Several years have passed since the advent of the pipeline leak involving West Tower 
Condominium that was affected by the pipeline leak, and First Philippine Industrial 
Corporation, which owns and operates the Batangas-Manila pipeline. However, up to this 
time, there is no single governing body that has a clear and substantial jurisdiction over 
said pipeline and other pipelines in terms of regulation as to safety, specification and 
overall operation.
Due to the closure of the Batangas-Manila pipeline, the efficient and reliable supply of 
white oil products (gasoline, diesel, kerosene and jet fuel) to Metro Manila and nearby 
provinces were affected. The said pipeline approximately supplies 30-40% of the oil 
supply in the Pandacan Terminal.
To address the need of a single governing body that will regulate, monitor and oversee 
the operations of petroleum pipelines this bill seeks to enhance and increase the 
jurisdiction of the Department of Energy (DOE) to include the foregoing. Also, this bill is 
in furtherance of the exercise of DOE’s mandate to secure a safe and adequate supply of 
oil as well as to establish a Petroleum Pipeline Code that will serve as basis for the 
regulation, monitoring and overseeing operations of petroleum pipelines in the country.
In view of the foregoing, the passage of this bill is earnestly recommended.
MARIA LOU 
Senator
ES NANCY S. BINAY


SEVENTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S.B.NO. l O / l
^  
of t!if fefcretarp
'17 
mar-7 P5«6
RECEIVED BY:
Introduced by Senator Maria Lourdes Nancy S. Binay
AN ACT TO STRENGTHEN THE JURISDICTION AND POWER OF THE 
DEPARTMENT OF ENERGY OVER PETROLEUM PIPELINE OPERATIONS 
AND FOR THIS PURPOSE PROVIDE A PETROLEUM PIPELINE CODE TO 
PRESCRIBE STANDARDS FOR THE DESIGN, CONSTRUCTION, 
OPERATION AND MAINTENANCE AND ABANDONMENT OF LIQUID 
PETROLEUM PIPELINES AND APPROPRIATING FUNDS THEREFOR, AND
FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
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CHAPTER I 
GENERAL PROVISION
SECTION 1. Short Title. This Act shall be known as the “Philippine Pipeline Act of
2017”.
SECTION 2. Declaration of Policy. It is hereby declared the policy of the State to:
a) Promote transportation of liquid petroleum products through pipelines as a safe 
and efficient way of transporting liquid petroleum products;
b) Provide for basic safety rules in petroleum pipeline operations and enhance 
reliability in the transportation of oil and liquid petroleum products by pipeline in 
the country;
c) To encourage the inflow of private capital to encourage the use and development 
of petroleum pipelines; and
d) To protect the public interest by ensuring the unhampered use of pipelines as a 
mode of transporting petroleum, especially to urban areas.
SECTION 3. Scope and Application. Except as otherwise provided herein, this Act shall
apply to all existing and future petroleum pipelines in the country.
SECTION 4. Definition of Terms.


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a) A ct- shall refer to the Philippine Pipeline Act of 2017;
b) Concession -  shall refer to the authority franted to a Person for the right to own, 
establish, provide, construct, install, operate and maintain Petroleum Pipeline 
systems for transporting Petroleum Products;
c) Contract of Concession -  shall refer to the agreement executed between the DOE 
on behalf of the Government of the Republic of the Philippines and a Pipeline 
Operator granting a Pipeline Concession;
d) Crude Oil -  means oil in its natural state before the same has been refined or 
otherwise treated, excluding water and foreign substances;
e) DILG -  shall refer to the Department of Interior and Local Government;
f) DOE -  shall refer to the Department of Energy;
g) DOH- shall refer to the Department of Health;
h) DOTr -  shall refer to the Department of Transportation;
i) DPWH- shall refer to the Department of Public Works and Highways;
j) Grantee -  shall refer to a Person to whom a Concession for Petroleum Pipeline 
Operations has been granted by law;
k) Local Government Units or LGUs -  shall refer to the local government units 
created under the Local Government Code;
l) MMDA -  shall refer to the Metro Manila Development Authority;
m) National Pipeline Board or NPB -  shall refer to the Board created under Chapter 
VI, Section 16 of this Act;
n) Petroleum Pipeline -  shall refer to the system of Pipelines, including related 
Pipeline Facilities through which Petroleum Products are transported, including 
without limitation the pipeline, valves, break out tanks and other appurtenances 
connected to the pipeline and pumping units;
o) Petroleum Products -  shall refer to any liquid petroleum product obtained from 
distilling and processing of crude oil, unfinished oils, natural gas liquids and other 
hydrocarbon compounds. The term shall exclude natural gas and liquefied natural 
gas;


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p) Petroleum Pipeline Operations -  shall refer to the business of engaging in the 
Transportation of Petroleum Products through a Petroleum Pipeline;
q) Petroleum -  shall refer to crude oil, condensate and liquefied petroleum gas;
r) Person -  includes a natural person, corporation, or partnership;
s) Pipeline or Line Pipe -  shall refer to a tube, usually cylindrical, through which 
liquid Petroleum Product flows from one point to another;
t) Pipeline Facility(ies) -  shall refer to a new or existing Pipeline, including rights- 
of-way and any equipment, facility or building used in the Transportation of 
Petroleum Products;
u) Pipeline Operators -  Persons operating Petroleum Pipeline or Pipeline systems;
v) PNP — shall refer to the Philippine National Police; and
w) Transportation of Petroleum Products -  shall refer to the conveyance, carriage or 
transmission of Petroleum Products through a Petroleum Pipeline(s).
CHAPTER II
JURISDICTION OF THE DEPARTMENT OF ENERGY
SECTION 5. Jurisdiction. This Act strengthens and confirms the sole regulatory and 
administrative power and authority of the DOE to supervise and regulate Petroleum 
Pipeline Operations. In addition to its existing powers and functions, the DOE shall have 
the sole responsibility to supervise and regulate Petroleum Pipeline Operations. It shall:
a) Formulate, in consultation with petroleum pipeline industry participants, a 
Petroleum Pipeline Code and such other rules and regulations to Implement this 
Act: Provided that, said regulations shall not be inconsistent with the standards 
and regulations adopted under the Petroleum Pipeline Code;
b) Ensure the reliability and safety of transporting liquid petroleum products through 
pipelines;
c) Enforce the Petroleum Pipeline Code as well as rules and regulations 
implementing this Act;
d) Exercise original and exclusive jurisdiction over questions and cases involving 
Concessions as well as fees and fines imposed by the DOE in the exercise of the 
foregoing functions; and
e) Exercise such other powers and functions as may be necessary to attain the 
objectives of this Act.


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CHAPTER III 
PIPELINE CONCESSION
SECTION 6. Nature of a Pipeline Concession. A Concession is an authority granted to a 
Person for the right to establish, own, operate and maintain a Petroleum Pipeline(s) for 
transporting Petroleum Products. No Person may engage in Petroleum Pipeline 
Operations without a valid Concession obtained from the DOE: Provided that. Persons 
who are holders of existing Concessions or are existing Pipeline Operators shall not be 
required to secure a new Concession from the DOE for the remaining period of their 
current Concession.
SECTION 7. Philippine Ownership Requirement. No Concession for the ownership, 
establishment, operation and maintenance of a Pipeline shall be granted except to citizens 
of the Philippines or to corporations or associations organized under the laws of the 
Philippines at least sixty percent (60%) of whose capital is owned by such citizens.
SECTION 8. Term of Concession. The Concession shall be valid for a term of twenty 
five (25) years, renewable for another twenty five (25) years, provided that, due 
consideration will be given for the automatic renewal of the Grantee’s Concession in 
view of the Grantee’s sizeable investments, infrastructure and installations or the 
necessity and/or urgency of maintaining the Pipeline to serve public interest. For existing 
Pipeline Operators, the term of their Concession shall be as provided in their existing 
Concession Agreements: Provided that, existing Pipeline operators may apply for a 
Contract of Concession under this Act prior to the expiration of their current Concession.
CHAPTER IV
PROCEDURES FOR APPLICATION OF CONCESSION
SECTION 9. Application of Concession. Any applicant for Concession shall apply with 
the DOE pursuant to the requirements herein. An application for Concession under this 
Act shall be filed with the Oil Industry Management Bureau (OIMB) of the DOE which 
shall examine and pass upon the same as well as upon the qualifications of the applicant.
SECTION 10. Requirements. The applicant must demonstrate that it is legally existing 
and qualified to conduct its business under Philippine laws and, taking into account the 
length and location of the Petroleum Pipeline, is financially and technically capable of 
operating and maintaining the same pursuant to this Act, the Petroleum Pipeline Code 
and the rules and regulations implementing this Act.
SECTION 11. Public Notice. The OIMB shall issue a public notice of all Concession 
applications and afford interested parties an opportunity to comment on such 
applications. If no opposition is filed within theNperiod provided in the public notice, it 
shall be conclusively presumed that no such opposition exist. Thereafter, no objection 
from third parties to the granting of the Concession shall be heard and the Contract of 
Concession shall be executed by the Secretary of the DOE on behalf of and for the


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Republic of the Philippines, and the Grantee, in accordance with this Act, the 
implementing rules and regulations and existing laws.
SECTION 12. Disposition of Opposition to the Concession. If an Opposition is filed in 
accordance with Section 11 hereof, the DOE shall, decide based on the qualifications of 
the applicant pursuant to this Act, the implementing rules and regulations as well as 
merits of the oppositor’s claims if the applicant is duly qualified to be granted a 
Concession. The DOE may require submission of additional documents and other papers 
and shall render a decision within fifteen (15) days from the date of filing of the 
opposition or from the date the case is deemed submitted for resolution as may be 
provided in the implementing rules and regulations, without prejudice to the right of any 
aggrieved party to appeal to the courts pursuant to the Rules of Court.
SECTION 13. Issuance of Concession. The DOE shall issue a Contract of Concession 
upon its determination that the establishment, operation and maintenance of the 
Petroleum Pipeline(s) by the applicant is consistent with this Act. The Contract of 
Concession shall state definitely the principal rights and obligations of the parties 
concerned pursuant to this Act.
SECTION 14. Registry of Pipeline Operators. The DOE shall establish and maintain a 
registry of all pipeline operators or Concession Grantees.
CHAPTER V 
RIGHTS GRANTED
SECTION 15. Grant of Rights. Grantees of Pipeline Concessions acquire the right to 
own, construct, establish, operate and maintain a Petroleum Pipeline to transport 
Petroleum Products, by means of, and through, a Pipeline or system of Pipelines, between 
the sources of production and/or refining and/or supply (storage) the places defined in the 
Pipeline Concession, in accordance with the provision of this Act and the implementing 
rules and regulations.
This right includes the construction, installation and operation of pipelines, pipeline 
facilities, pumping stations, storage tanks and other buildings, water supply and 
communication systems, roads, and such other equipment or facilities as may be needed 
by the Grantee to conduct its Petroleum Pipeline Operations.
Among other things, the Contract of Concession shall state definitely:
a) The right of the Grantee to own, construct, install, operate and maintain a 
Petroleum Pipeline system passing through a designated area(s), specifying the 
province(s), city(ies), and/or municipality(ies);
b) The Grantee’s right to acquire rights of way, easements and other similar rights 
on, over, under, across and through the designated area(s) or adjacent thereto;


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c) The right of eminent domain to be exercised by the Government, as represented 
by the DOE, for and on behalf of and/or through the Grantee, over private 
property when the occupation of private land is needed by the Grantee in 
connection with his Concession, for the purpose of constructing, installing, 
maintaining and operating Petroleum Pipelines, road, wells, tanks, reservoirs, 
pumping stations for public use or benefit;
d) Term of Concession;
e) Right to receive assistance from the DOE in obtaining fiscal and non-fiscal 
incentives granted by this Act;
the DOE and/or other government 
licenses and clearances relating to the
f) Right to receive assistance from 
instrumentalities in securing permits. 
Petroleum Pipeline Operations; and
g) Other rights consistent with this Act.
CHAPTER VI
THE NATIONAL PIPELINE BOAIH) AND THE PETROLEUM PIPELINE
CODE
SECTION 16. National Pipeline Board. There is hereby created the National Pipeline 
Board. The NPB shall be composed of the Secretary of the DOE as Chairman and the 
Secretaries of the Department of Environment and Natural Resources, Department of 
Transportation, and the Department of Public Works and Highways, as members, and 
representatives from Pipeline Industry operators, who shall automatically be members by 
reason of being Grantees of a Pipeline Concession. The DOE Secretary, in his capacity as 
Chairperson, shall, within thirty (30) days from the effectivity of this Act, convene the 
NPB to discharge its powers and functions as provided in Section 17 hereof The Board 
shall be assisted by a Technical Secretariat attached to the OIMB of the DOE. The 
number of staff of the Technical Secretariat and the corresponding positions shall be 
determined by the Board, subject to approval by the Department of Budget and 
Management (DBM) and existing civil service rules and regulations.
SECTION 17. Powers and Functions of the NPB. The NPB shall have the following 
powers and functions:
a) It shall recommend to the DOE the standards for the design, construction, 
pressure testing, operation, and maintenance, corrosion control and abandonment 
of Petroleum Pipeline systems. Within thirty (30) days from enactment of this 
Act, the NPB shall formulate a Petroleum Pipeline Code for approval by the 
DOE. The NPB may adopt such relevant and applicable standards from the 
United States Department of Transportation Regulations and American Society of 
Mechanical Engineers on Petroleum Pipelines as well as other internationally 
accepted standards for Petroleum Pipelines. In view of changes in internationally


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accepted Petroleum Pipeline standards and Pipeline technologies, the NPB may 
revise and/or amend the Petroleum Pipeline Code; Provided that, the NPB may 
only introduce amendments after sufficiently holding consultations with all its 
members to ensure transparency and further encourage private sector 
participation. The NPB may call on members from the academic community and 
experts from the private sector, and other pipeline industry participants as 
resource persons to aid in updating the Petroleum Pipeline Code. There shall be a 
mandatory review of the Petroleum Pipeline Code set pursuant to the provisions 
of this Act every two (2) years;
b) In carrying out its duties and functions under this section, it shall, whenever 
appropriate, be authorized to utilize agencies of the government to obtain 
technical, economic and statistical information and advice; and
c) It shall conduct periodic analyses of the domestic transport of Petroleum Products 
by Pipeline. Such analyses should identify the areas through which the Pipeline 
traverses where unplanned loss of Petroleum Pipeline may cause shortages of 
Petroleum Products or price disruptions and where shortages of Pipeline capacity 
and reliability concerns may have or are anticipated to contribute to shortages of 
Petroleum Products or price disruptions. Upon identifying such areas, the NPB 
may determine if the current level of regulation is sufficient to minimize the 
economic impact for such unplanned losses of Pipeline capacity. In preparing any 
analysis hereunder, the NPB may consult with the heads of other government 
agencies and public and private sector experts in Petroleum Pipeline Operations 
and other forms of Transportation of Petroleum Products, energy consumption, 
pipeline capacity, population and economic development.
CHAPTER VII
RIGHT OF WAY, EXPROPIHATION, EASEMENT
SECTION 18. Grant of Right of Way. As may be required by the DOE or granted by the 
Concession, all government agencies and/or instrumentalities, including but not limited to 
the DPWH, the relevant LGUs, MMDA, their successors and assigns, shall grant the 
necessary right of way over non-private property within their jurisdiction.
SECTION 19. Priority. Due to the importance of a steady, safe and efficient supply of 
Petroleum Products, priority shall, whenever practicable, be given to Pipeline Operators 
in acquiring right of way over government property.
SECTION 20. Right of Way over Private Property; Expropriation. The DOE shall assist 
or represent Grantees of Concessions in procuring the necessary right of way over private 
property.
When the occupation or possession of private land is needed by the Grantee in connection 
with its Concession, for the purpose of constructing, installing, maintaining and operating 
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stations, powerhouses, transmission lines, pumping stations, wharves, piers, and 
terminals, which are herby declared to be for public use or benefit, the right of eminent 
domain may be exercised by the Government, as represented by the DOE, for and on 
behalf of the Grantee, in accordance with the applicable laws on the matter. In all cases of 
voluntary agreement between the Grantee and a private landowner, a copy thereof shall 
be furnished the DOE. For the purpose of this Section, the necessity of the work in 
Petroleum Pipeline Operations will be presumed in cases of construction of Pipelines, 
tanks, pumping stations, power systems, and other means of transportation and 
communication, including any auxiliary facilities and works.
SECTION 21. Easement Over Public Land. When easement or right of temporary 
occupancy over public land is needed by a Grantee for the purpose of carrying out any 
work necessary to its Petroleum Pipeline Operations, such right may be granted by the 
Government through the DOE subject to applicable laws and regulations. The same 
presumption in Section 20 applies in this instance.
CHAPTER VIII
COMPLIANCE WITH STANDARDS
SECTION 22. Petroleum Pipeline Code. All Grantees of a Pipeline Concession under 
this Act shall provide safeguards for the safety, reliability, adequacy, security, stability 
and integrity of their Petroleum Pipeline systems in accordance with the technical 
specifications and performance standards set forth in the Petroleum Pipeline Code to be 
promulgated by the NPB, as may be amended.
CHAPTER IX 
PIPELINE SECURITY
SECTION 23. Pipeline Security; One Call System. It is hereby declared that Petroleum 
Pipeline systems are imbued with public interest. For this purpose, the DOE, in 
coordination with the DND, DPWH, PNP, MMDA, DILG, LGUs and the appropriate 
government agencies and instrumentalities shall implement a one-call system, whereby 
any third party shall report to a designated agency any possible excavation, installation or 
activity which may affect Pipelines as well as any act which may result in damage to 
property or injury to persons. The one-call system is intended to bring to immediate 
notice of the foregoing to the affected Grantee or other underground utility providers and 
to provide a mechanism for immediate liaison and coordination with all relevant 
government agencies to avoid damage to or loss of property as well as injury to persons.
The DOE shall implement a procedure for a systematic response to emergency cases, 
including without limitation, incidents involving leaks, breaches on the Pipelines or 
Pipeline facilities and other similar occurrences, whereby there will be immediate, 
appropriate and coordinated response actions from the concerned LGUs, Bureau of Fire 
Protection, the DENR, DOH and such other government agencies and instrumentalities. 
In case of remediation or clean-up, the DENR shall be the lead agency (in coordination


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with other government agencies or instrumentalities) in directing the clean-up of affected 
areas premised on a risk-based criteria.
SECTION 24. Inter-agency Cooperation. Should the DOE find it necessary, it shall 
consult, participate, cooperate and enter into agreement with other government agencies 
and instrumentalities, non-governmental organizations or people’s organizations and 
private enterprises in the furtherance of the foregoing objectives.
CHAPTER X
ROLE OF GOVERNMENT AGENCIES
SECTION 25. Role of Government Agencies. In the Implementation of the provisions of 
this Act, its implementing rules and regulations and related laws, the following agencies 
shall perform, among others, the following functions:
a) The DOTr shall:
1. Assist in coordinating networks for the transportation of Petroleum as well 
as the fast and safe transportation services thereof, as determined by the 
DOE; and
2. When requested by the DOE, assist the DOE in identifying routes, zones 
or areas of operations of particular operators.
b) The DPWH shall, when necessary, provide the technical support in the 
construction and installation of Petroleum Pipelines.
c) The DILG shall:
1. Provide, through the Philippine National Police (PNP), manpower and 
available resources to Grantees of Pipeline Concessions in case of threats 
to the security of the Pipelines and other similar acts;
2. Employ the assistance, cooperation and coordination of LGUs in the 
implementation of the policies and orders issued by the DOE; and
3. Mobilize the Bureau of Fire Protection (BFP) to ensure the prevention and 
suppression of all destructive fires on the Petroleum Pipeline installations.
d) The corresponding LGUs, where the Pipelines are situated, shall share in the 
responsibility of implementing safety and prevention measures within their 
territorial jurisdiction solely with respect to third parties who may affect the 
Pipelines situated within their respective territorial jurisdictions.
CHAPTER XI
ABANDONMENT AND DECOMMISSIONING


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SECTION 26. Abandonment and Decommissioning. At the expiration of the term of the 
Contract of Concession or a renewal thereof, or when a Pipeline has come to the end of 
its useful life and/or users or customers of the Petroleum Product have discontinued using 
the Pipeline to transport Petroleum Products or there are no forseeable new users or 
customers in the future, the Grantee shall undertake Pipeline decommissioning and 
cleaning. The Pipelines shall be cleaned and decontaminated before it can be either left in 
its existing place or dismantled for proper disposal.
The DOE, through the appropriate regulations, may provide guidelines for:
a) the clean-up of residual fluids in the Pipeline and proper disposal thereof in 
accordance with applicable environmental laws and regulations;
b) decontaminated Pipelines which may be trenched or buried underground;
c) environmental concerns have been addressed; and
d) whether such Pipelines can be left in place without creating any risk to the 
surrounding environment or to the community.
SECTION 21. Decommissioning Fund. For this purpose, the DOE shall, after public 
consultation with Pipeline Operators and Pipeline industry participants, implement a 
system whereby the Pipeline Operator shall collect from its users or customers 
decommissioning costs/fees, to be agreed upon between the Pipeline Operator and the 
users or customers. These decommissioning costs or fees shall be held in a 
Decommissioning Fund, established jointly by the Pipeline Operator and its users or 
customers and administered by the Pipeline Operator specifically to pay for the costs of 
decommissioning. The Decommissioning Fund shall not be subject to Value Added Tax, 
income tax and such other taxes, charges and fees.
f
CHAPTER XII 
FISCAL INCENTIVES
SECTION 28. Taxes. Pipeline operations shall be subject to the payment of all taxes, 
duties, fees or charges and other impositions under the National Internal Revenue Code 
of 1997, as amended, and other applicable laws; Provided however, that in recognition of 
the substantial investments needed for the construction, installation, operation and 
maintenance of the Grantee, the Grantee shall be entitled to an income tax holiday and 
such other incentives granted to pioneer enterprises under the Omnibus Investment Code, 
as amended.
SECTION 29. Customs Duties. The Grantee may import, free of applicable customs 
duties and charges, all equipment, machinery, material, instruments, supplies and 
accessories necessary for the installation, construction, operation and maintenance of the 
Petroleum Pipeline.
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CHAPTER XIII
FORCE MAJEURE AND/OR FORTUITOUS EVENTS
SECTION 30. Force Majeure and/or Fortuitous Events. Failure on the part of the 
Grantee to fulfill any of the terms and conditions provided by this Act or its 
implementing rules and regulations or by other relevant laws shall not be deemed a 
breach of such obligation on the part of the Grantee in so far as such failure results from 
force majeure and/or fortuitous events, including without limitation, acts of God, war, 
insurrection, riot, civil commotion, strike, tide, storm, flood, lightning, explosion, fire, 
earthquake, passage of laws, orders and rules and any other happening which the Grantee 
could not reasonably prevent, control or avoid.
CHAPTER XIV 
PROHIBITED ACTS
SECTION 31. Prohibited Acts. Without the prior written consent of the Grantee, it shall 
be unlawful for any Person to:
a) Demolish, excavate, tunnel, or construct, drill, install, or make improvements 
within five (5) meters from the nearest portion of the Pipeline facility;
b) Cut, saw slice, separate, split, sever, smelt, remove mutilate, alter, tap, reconnect, 
disconnect, or in any way tamper any Pipeline or part thereof, or any other 
pipeline related installation from the place of installation of any other place or site 
where it may be rightfully or lawfully situated;
c) Take, carry away, transport, transfer, move, with or without the use of a motor 
vehicle or any other means of conveyance, the Pipeline, or part thereof, or any 
other Pipeline related installation;
d) Store, possess, or otherwise keep in his premises, custody or control, any portion 
of the Pipeline including Pipeline related installation; and
e) Knowingly use or receive direct benefit of petroleum delivery service obtained 
through any of the acts mentioned in paragraphs (a), (b), (c) and (d) above.
SECTION 32. Fines and Penalties for Unlawful Acts. Any person who commits any of 
the foregoing acts shall suffer the penalty of a fine of not less than Ten Thousand Pesos 
(PhP 10,000.00) but not more than Five Million Pesos (PhP5,000,000.00) or 
imprisonment of not less than six (6) months, or both shall be imposed. If the offender is 
a juridical person, the president, manager, directors, trustees, officers or the officials 
directly in charge of the operations shall suffer the penalty herein provided.
CHAPTER XV 
APPROPRIATIONS
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SECTION 33. Appropriations. Such sums as may be necessary for the initial 
implementation of this Act shall be taken by the DOE from its annual appropriation. 
Thereafter, the fund necessary to carry out the provisions of this Act shall be included in 
the annual General Appropriations Act.
CHAPTER XVT 
FINAL PROVISIONS
SECTION 34. Implementing Rules and Regulations. The DOE, in coordination with the 
NPB, shall promulgate the necessary implementing rules and regulations within thirty 
(30) days after the effectivity of this Act. There shall be a mandatory review every two 
(2) years of the implementing rules and regulations and the pipeline standards set 
pursuant to the provisions of this Act.
SECTION 35. Separability Clause. If any provision of this Act is declared invalid or 
unconstitutional, the other provisions not affected thereby shall remain valid and 
subsisting.
SECTION 36. Non-Retroactivity Clause. Concessions which have been granted under 
previous laws at the time this Act becomes effective, shall remain effective and shall 
continue to operate under their existing Concessions or authority.
SECTION 37. Grantees of Concession under Other Laws. Nothing in this Act shall be 
deemed to revoke any existing Concession granted under the Petroleum Act of 1949, as 
amended, or other administrative or regulatory permit, authority or contract, which 
Concession, Permit, Authority or Contract shall be allowed to its full term or renewal 
thereof, but may not be renewed except pursuant to the provisions of this Act.
SECTION 38. Precursor Laws. Under the Petroleum Act of 1949, as amended, the 
power to grant pipeline concessions was granted to the Seeretary of Agriculture and 
Natural Resources. The authority over pipeline concessions under the Petroleum Act was 
transferred to the Petroleum Board pursuant to Presidential Decree No. 782 dated 25 
August 1975. The Petroleum Board was thereafter abolished and its powers and functions 
were transferred to the Energy Development Board in accordance with Presidential 
Decree No. 910 dated 22 March 1976. The Energy Development Board (EDB) was 
abolished by Presidential Deeree No. 1206 dated 6 October 1977. The powers and 
functions of the EDB were transferred to the Bureau of Energy Development under the 
Department of Energy pursuant to Section 12 of Presidential Decree No. 1206. 
Presidential Decree No. 1700 issued on 10 July 1980 amended Presidential Deeree No. 
1206 by transferring the power to regulate and fix the rates of pipeline concessionaires 
under the Petroleum Act to the Board of Energy. The powers of the Board of Energy to 
grant and regulate pipeline concessions were later transferred to the Energy Regulatory 
Board under Section 3 of Executive Order No. 172. Executive Order No. 193 abolished 
the Bureau of Energy Development on 10 June 1987 and transferred its pertinent 
functions to the Office of the Deputy Executive Director for Energy Operations of the
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Office for Energy Affairs. The non-price regulatory jurisdiction, powers and functions of 
the Energy Regulatory Board were thereafter transferred to the DOE, pursuant to 
Sections 12 (c) and 18 of Republic Act No. 7638, otherwise known as the Department of 
Energy Act of 1992. Subsequently, the powers and functions of the Energy Industry 
Administration Bureau, which includes the formulation and implementation of policies, 
programs and regulations on the downstream oil industry, including the transportation of 
petroleum crude oils, products and by-products, were transferred to the Oil Industry 
Administration Bureau under Administrative Order No. 38 issued on 23 August 2002. 
Pursuant to Section 44 of Republic Act No. 9136, otherwise known as the “Electric 
Power Industry Reform Act of 2001”, the non-price regulatory functions of the Energy 
Regulatory Board were transferred to the Energy Regulatory Commission.
SECTION 39. Repealing Clause. The provisions of Republic Act No. 387, otherwise 
known as the “Petroleum Act of 1949”, as amended and the provisions of all foregoing 
precursor laws, and such other laws, acts, executive orders, rules and regulations and 
other issuances inconsistent with this Act are hereby repealed or modified accordingly.
SECTION 40. Transitory Provision. Pipeline Operators or Grantees of Petroleum 
Pipeline Concessions which have been constructed and have commenced operation prior 
to the date of effectivity of this Act shall continue to operate under their existing 
authorities. Nothing in this Act shall be deemed to revoke or otherwise modify any of the 
powers and functions of the Director of Mines and the Secretary of Agriculture and 
Natural Resources and its successors and assigns under the Petroleum Act of 1949, as 
amended, any existing Concession granted under the Petroleum Act of 1949, as amended, 
or any administrative or regulatory permit or concession, which concession certificate or 
franchise shall be allowed to its full term but may not be renewed except pursuant to the 
provisions of this Act.
SECTION 41. Effectivity. This Act shall take effect fifteen (15) days upon its publication 
in the Official Gazette or in at least two (2) newspapers of general circulation.
Approved,
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