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SIXTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES) 
First Regular Session 
) 
SENATE 
S. B. No. 2184 
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'14 
JUN -2 A9:43 
Introduced ~1_§ena.!or A:.~toniC) __ '''~-Y''!'''''Jrillan~!y ___ . ___ . _______ _ 
• 
AN ACT 
AMENDING SECTION 8 OF PRESIDENTIAL DK'REE NO. 910 TO ALLOW THE 
FINANCING OF ENERGY-RELATED EXPENSES OF THE ARMED FORCES OF THE 
PHILIPPINES IN THE USE OF THE SPECIAL FUND 
EXPLANATORY NOTE 
The Malampaya Fund was created to provide funds to finance tor energy-related projects and for 
other purposes that may be decided by the President. It consists of royalties collected from 
operations of the Ma\ampaya gas and oil fields in the waters offPalawan province. 
However, such huge Presidential latitude purportedly became a blanket approval for the past 
administration to abuse said power. The fund was allegedly drained to accommodate bogus 
projects of the non-governmental organizations (NGOs) of Mrs. Janet Lim Napoles, in collusion 
with government officials. 
The present law, laced with noble intentions but little guidelines, was thereafter partially junked 
by the Supreme Court, as it struck as illegal the discretiOllllfY power of the President in utilizing 
said Fund. 
One of the basic and most urgent requirements for the peaceful and successful exploration and 
development of energy resource in the country is safety and security in the area. This is because 
energy sources are often found in isolated and sometimes contested areas. Hence, security 
provided by the military is often an indispensible requirement for the successful pursuit of any 
energy related project. 
In fact, the Malampaya gas and oil fields themselves. which are near disputed waters off 
Palawan, continue to remain secure because of the efforts of the Armed Forces of the Philippines 
(AFP) particularly, the Philippine Navy, which constantly patrol the area with ships coming from 
Naval Forces West (NavForWest) operating at Oyster Bay, Palawan, the country's first line of 
defense in the disputed waters in West Philippine Sea. 
Unfortunately, the existing law is silent with regards the provision of military support for enecgy-
related projects to guarantee the security of critical infrastructures in the Malampaya gas 
platform and other energy related projects. 
Prior to the High Court's decision to clip the discretionary power of the President to disburse the 
Fund, President Benigno Simeon Aquino m was able to prudently approve the release of 
necessary funding to the AFP in order to expand and fuftilY the defenses fur natural gas 
exploration in northern Palawan. With the issuance of the Supreme Court decision, however, the 
President can no longer pursue this laudable objective. 
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It is now up to Congress to introduce the necessary guidelines in the law to authorize the use of 
the Special Fund to finance the energy-related expenses of the' AFP, particularly those 
undertaken in part or in full for the security and prote<'hon of the Malampaya oil and gas fields 
and other enery projects. 
Hence, this measure seeks ensure the continued'vial>ility of the country's energy program by 
including guidelines for the utilization of the Special Fund to include the financing of energy-
related expenses of the AFP, such as but not limited to provisions for operational support, 
capability-building, acquisition of vessels, machinery and materiel, bases and support system 
development and technology development, tor the security and protection of the Malampaya oil 
and gas fields and other energy projects. 
In view of the foregoing, immediate passage of this meallUCe is earnestly sought. 
AN 
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10 ", ONNY" F TimtANES N 
Senator 
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£,.,mlYt· 
SIXTEENTH CONGRESS OF THE 
) 
REPUBlJC OF THE PHIlJPPINES ) 
((Iff,;, "r til' '\>m.lnr~ 
First Regular Session 
) 
'14 
JUN -2 A 9 :43 
SENATE 
S. B. No. 2264 
Introduced by Senator Antonio "Sunny" F. Trillanes IV 
.i\N ACT 
AMENDING SECTION 8 OF PRESIDENTIAL DECREE NO. 910 TO TO ALLOW THE 
FINANCING OF ENERGY-RELATED EXPENSES OF THE ARMED FORCES OF THE 
PHILIPPINES IN THE USE OF THE SPECIAL FUND 
Be it enacted by the Senate and the House qf Representatives qf the RepUblic oj the 
Philippines in Congress assembled: 
SECTION 1. Section 8 of Presidential Decree No. 910 is hereby amended to read 
as follows: 
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Section 8. Appropriations. - The sum of Five Million Pesos out of any 
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available funds from the. National Treasury is henlby appropriated and authorized 
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to be released for the organization of the Board and its initial operations. 
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Henceforth, funds sufficient to fully carry out the functions and objectives of the 
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Board shall be appropriated every fiscal year in the General Appropriations Act. 
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All fees, revennes and receipts of the Board from any and all sources including 
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receipts from service contracts and agreements such as application and processing 
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fees, signature bonus, discovery bonus, production botrus; all money collected 
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from concessionaires, representing unspent work obligations, fines and penalties 
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under the Petroleum Act of 1949; as well as the government share representing 
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royalties, rentals, production share on service contracts and similar payments on 
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the exploration, development and exploitation of energy resources, shall focm part 
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of a Special Fund to be used to finance energy Tesource development and 
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exploitation programs and projects of the government, INCLUDING ENERGY-
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RELATED EXPENSES OF THE ARMED FORL7IS OF THE PHILIPPINES 
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(AFP), 
SUCH AS BUT NOT LIMITED TO PROVLWONS FOR 
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OPERATIONAL SUPPORT, CAPABILITY-BUILDING, ACQUISlll0N OF 
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VESSELS, MACHINERY AND MATERIEL, BASES AND SUPPORT 
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SYSTEM DEVELOPMENT AND TECHNOLOGY DEVELOPMENT, FOR 
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THE SECURlTY AND PROTEC110N (JF THE MALAMPAYA OIL AND 
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GAS FIELDS AND OTHER ENERY PROJECTS [and fOT such other purposes) 
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as may be hereafter directed by the President. 
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SEC. 2. Repealing Provision. -
All laws, executive orders or 
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administrative orders, rules and regulations or parts thereof which are inconsistent 
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with this Act are hereby amended, repealed or modified accordingly. 
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SEC. 3. Effectivity. - This Act shall take effect fifteen (15) days following 
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its publication in the Official Gazette or in two (2) newspapers of general 
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circulation. 
Approved, 
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