PROPOSED AMENDMENTS TO SANGGUNIANG PANLALAWIGAN ORDINANCE

NO. 733-2005, KNOWN AS THE 2005 REVENUE CODE OF MISAMIS ORIENTAL

EXPLANATORY NOTE

The intent to revise the 2005 Revenue Code of Misamis Oriental, particularly on the fees and
charges imposed to permittees and/or operators of small-scale mining, extraction of sand and gravel and
other quarry resources is premised by the guiding principle of shared responsibility in the management,
conservation and protection of the environment. The cost involved in regulating the business of mining,
extraction of sand and gravel and other quarry resources currently imposed by the province, although
slightly similar with that of the neighboring LGUs of Regions 10 and 13, (Bukidnon, Agusan del Norte,
Agusan del Sur, Surigao del Norte and Cagayan de Oro City) not to mention other provinces/ cities in
Mindanao notably known for mining and quarry operations is patently uncompetitive considering the
strategic location of the province to potential market and its added advantage being the frontier of growth
and development in the region.

The fees and charges imposed under this Code were not seasonably revisited for quite a time, and
no longer responsive to the needs of the present situation, despite its limited scope and coverage.

Accordingly, the proposed increase is justifiably reasonable since the same is patterned after the
survey conducted and the rates adopted are at par with other provinces, although some are equitably
increased for it to be more competitive. Moreover, consideration is also given to added cost of delivering
regulatory services since supplies and materials and other ancillary expenses have tremendously increased
from the time this Code was approved. Finally, the need to improve the efficiency of generating more
revenue from this sector is well within the 8-point agenda of the present dispensation.

In view thereof, it is most respectfully recommended to the Sangunniang Panlalawigan for utmost
consideration the following proposed amendments to specific provision of this Code, the particulars of
which are properly underlined and printed in bold for emphasis, to wit:

CHAPTER 3 – SERVICE FEES AND CHARGES

A. Applications and permitting

Proposed Amendment # 1:

SECTION 38. Small Scale Mining , Extraction of Sand and Gravel and Other Quarry
Resources Operation
/licensing sand, gravel and other quarry resources:

Present Rate Proposed Rate

Filing fee …………………… Php 50.00 Php 500.00
Processing fee …………………….. 100.00 500.00
Area Verification fee …………………… 3,000.00 5,000.00
(Note: Above charges shall be subjected to Php 20.00
pursuant to PD 1856, as amended) …… 20.00 -
Aggregate Shipment Umpiring/Verification fee … 3,600.00 5,000.00
Tax clearance fee ……………………… 20.00 -
Renewal fee ……………………… - 300.00
Proposed inclusion: Present Rate Proposed Rate

Occupation Fee / ha.

or fraction thereof/year ................................... - Php 75.00
Permit Registration fee ……………………… - 1,000.00
Extraction fee:
Sand and Gravel 11.90/cu.m. 20.00/cu.m.
Filling materials (ordinary earth soil) 5.00/cu.m. 8.00/cu.m.
Filling materials (sandy soil - 12.00/cu.m.
Mountain mix - 12.00/cu.m.
Boulders 17.00/cu.m. 30.00/cu.m.
Rock armour - 50.00/ton
Guano - 150.00/cu.m.
White clay - 100.00/ton
Shale - 100.00/ton
Limestone (industrial/agricultural purposes) - 100.00/cu.m.
Bentonite - 50.00/cu.m.
Pebbles - 5.00/bag

B. Applications and permitting/licensing small scale mining (metallic minerals):

Present Rate Proposed Rate

Filing fee ……………………… Php 2,000.00 Php 5,000.00
Processing fee ……………………… 100.00 500.00
Area Verification fee …................................ 3,600.00 5,000.00
(Note: Above
charges shall be subjected to Php 20.00
pursuant to PD 1856, as amended) ……………… 20.00 -
Sketch Plan Verification fee ……………………………. 100.00 300.00
Renewal fee ……………………………. 1,000.00 2,500.00
Permit Registration fee ……………………………. 1,000.00 2,000.00
Ore Transport Permit Application fee …………….. 100.00 1,000.00
Ore Transport Permit Certificate fee ………………… 30.00 100.00/ton
Ore Stockpile verification fee ……………………….. 5,000.00 5,000.00
Ore Shipment Umpiring/Verification fee …………… 3,600.00 5,000.00

Proposed Inclusion:

Mining production fee ........………………………. - Php 100.00/ton

Occupation fee ……………………………………. - 75.00/ha/yr

C-1. Applications and Accreditations of Processors, Traders, Dealers and Retailers

of metallic minerals, non-metallic minerals, sand, gravel and other
quarry resources mined and/or extracted from areas covered with permit
issued by the Provincial Governor:

Present Rate Proposed Rate

Filing fee …………………… Php 5,000.00 Php -
Processing fee …………………………… 100.00 500.00
Accreditation fee …………………………… - 3,000.00
Renewal fee …………………………… 2,500.00 -
(Note: Above charges shall be subjected to Php 20.00
pursuant to PD 1856, as amended) ………… 20.00 -

C-2. Application of accreditation of Hollow Blocks Makers, Reinforced Concrete Pipe

Culvert Makers and other By-Products who drew its raw materials from areas
 covered by permit issued by the Governor:

Present Rate Proposed Rate

Filing fee …………………… Php 1,000.00 Php -
Processing fee ……………………… 100.00 500.00
Accreditation fee ……………………… - 2,500.00
Renewal fee ………………………… 500.00 1,000.00

D. Shipment Fees for minerals and aggregates going out the province:

Present Rate Proposed Rate

Metallic Minerals ……………… Php 2.00/Metric Ton Php 50.00/M.T.
Non-Metallic Minerals ………………… 0.50/Metric Ton 10.00/M.T
Aggregates ………………… 1.00/cu.m. 20.00/cu.m.

Proposed Inclusion:

D-1. Shipment Fees for minerals and aggregates entering the province:

Proposed Rate

Metallic Minerals ……………………………………………. Php 10.00/MT

Non-Metallic Minerals ……………………………………………. 8.00/MT
Aggregates …………………………………………… 5.00/cu.m

E. Registration Fees :

Present Rate Proposed Rate

Special Power of Attorney ………………… Php 200.00 Php 500.00
Supply Contract ………………… 200.00 500.00
Amendment of Permit ………………… 1,000.00 2,000.00
All other Mining Rights Documents ………… 1,000.00 2,000.00

F. Other Fees:
Present Rate Proposed Rate
Forms (legal size) ………………… Php 10.00/page Php 50.00/page
Forms (short size) …………………. 8.00/page 30.00/page

Proposed Amendment # 2:

Section 39. Penalties and Surcharges on the violation of Small Scale Mining, Extraction of
sand, gravel and other quarry resources operations.

A. Late Submission of Report --The corresponding fine hereunder specified shall

be imposed to permittee for late submission of any of the following required
reports:

Basic Fine Daily Fine

1st Violation Php1,000.00 Php 10.00

2nd Violation 2,000.00 20.00
3rd Violation 3,000.00 30.00
4th Violation Cancellation/revocation of permit

1. Quarterly Report on Production, Sales and Inventory of Quarry Resources

(Except Sand and Gravel) and Employment.

A holder of a Quarry Permit or its operator shall submit to the Provincial

Governor, copy furnished the concerned MGB Regional Director, a sworn
Quarterly Report on Production, Sales and Inventory of Quarry Resources
and Employment within fifteen (15) working days after the end of each
calendar quarter.

2. Monthly Report on Production, Sales and Inventory of Industrial Sand and

Gravel and Employment.

A holder of an Industrial Sand and Gravel Permit or its Operator shall submit
to the Provincial Governor, copy furnished the concerned MGB Regional Director,
a sworn Monthly Report on Production, Inventory and Sale of Industrial Sand
and Gravel and Employment, within fifteen (15) working days after the end of
of each calendar month. (Forms shall be prepared) .

3. Monthly Report on Production and Sales of Commercial Sand and Gravel and
Employment.

A holder of a Commercial Sand and Gravel Permit or its Operator shall submit to the
Provincial Governor, copy furnished the concerned MGB Regional Director, a sworn
Monthly Report on Production, Sales and Inventory of Commercial Sand and Gravel
and Employment within fifteen (15) working days after the end of each calendar
month.

4. Quarterly Report on Production and Sales of Small Scale Metallic Mines and
Employment.

The holder of a Small Scale Metallic Mines Permit shall submit to the Provincial
Governor, copy furnished the concerned MGB Regional Director, a sworn Quarterly
Report on Production and Sales of Small Scale Metallic Mines and Employment
within fifteen (15) working days after the end of the each calendar quarter.

5. Integrated Annual Report.

The holder of a Quarry Permit or its Operator and Small Scale Mining Permit
Holder shall submit to the Provincial Governor, copy furnished the concerned MGB
Regional Director, a sworn Integrated Annual Report within two (2) months after the
end of each calendar year.

B. Non-submission of any of the required reports enumerated in (A) of this section after
one (1) month from the prescribed reporting period, following fines shall be
imposed:

Basic Fine Daily Fine

1st Violation Php 2, 000.00 Php 20.00

2nd Violation 3, 000.00 30.00
3rd Violation 5, 000.00 50.00
4th Violation Cancellation/Revocation of permit

Provided, That a late report classified under non-submission category shall not
pay the accumulated fines in ( A) but instead pay the fines imposed in (B) in
this Section: Provided, further, That the total fine for non-submission of any
of the Required reports at any one time shall not exceed Ten Thousand Pesos
 (Php10,000.0).
C. Failure to carry “Delivery Receipt” on the transport of sand, gravel and other
quarry resources.

1ST Violation Php 100.00/ cu.m.

2ND Violation 200.00/ cu.m.
3RD Violation 500.00/ cu.m.
4TH Violation Cancellation/revocation of permit

D. Failure to carry “Ore Transport Permit” in the transport/delivery of minerals.

1ST Violation Php 1,000.00/MT

2ND Violation 2,000.00/MT
3RD Violation 5,000.00/MT
4TH Violation Cancellation/revocation of permit

E. Extraction and hauling of sand, gravel and other quarry resources without permit

Php 1,000.00 for volume not more than three (3) cu.m.
2,000.00 for volume not more than ten (10) cu.m.
5,000.00 for volume not more than twenty (20) cu.m.

F.Extraction/mining and hauling of minerals without permit.

Php 10,000.00 for volume not more than three (3) MT

15,000.00 for volume not more than five (5) MT
20,000.00 for volume not more than ten (10) MT
or imprisonment from 6 months to 6 years or both, upon discretion of
the court

G. Late filing of application for renewal of permit, a penalty of Two Thousand

Pesos (Php 2,000.00) shall be imposed.

Recommended for deletion:

A grace period of fifteen (15) calendar days shall be given to a permittee to file application
for renewal reckoned from the date of expiration.

CHAPTER 5 – GENERAL ADMINISTRATIVE PROVISIONS

Proposed Amendment # 3:

Section 64 . Deputation. - The Punong Barangay, Municipal Mayors, Provincial/City/

Municipal Treasurers and local PNP are hereby deputize to monitor mining and quarry
activities, implement laws and regulations on mining and quarry operations, and apprehend
illegal mining and quarry activities within their territorial jurisdictions.
Proposed Amendment # 4:

Section 67. Special Permit to Extract. – The granting of Special Permit to extract
sand, gravel and other quarry resources for special usage shall be allowed, subject
to the guidelines below stated:

a. That the usage of materials is necessary;

Recommended for deletion:

b. That there is no source of said materials covered with legitimate permit issued
by proper authority within 20 kilometers radius;

c. That the materials needed is available in the locality and there is no legitimate
permit issued by the proper authority within the municipality.

d. That the materials needed do not exceed 1,000 cu.m.

Proposed Amendment # 5 under Chapter V- General Administrative Provisions:

Recommended for Inclusion:

Section 68-A. Mining Operation -Mining/extraction of metallic and non-metallic minerals

shall require a permit from the Provincial Governor for Small Scale Mining
and from the Regional Director of Mines and Geosciences Bureau for
Large Scale Mining.

Section 68-B .Extraction/quarrying operation -- Extraction/quarrying of sand, gravel and

other quarry resources shall require permit from the Provincial Governor
for areas not exceeding five (5) hectares and from the Director of
Mines and Geosciences Bureau for areas above five (5) hectares.

Section 68-C. Production Reports -- Holders of small scale mining permit and permit to
extract sand, gravel and other quarry resources are required to submit
reports on production as provided in the implementing rules and
regulations of Republic Act 7942 to the ENRO, copy furnished the MGB.

Section 68-D. Hauling of sand, gravel and other quarry resources –Hauling of sand, gravel
and other quarry resources shall require an accompanying original
Delivery Receipt (DR) duly registered at the Environment
and Natural Resources Office (ENRO).

Section 68-E. Hauling of metallic and non-metallic minerals from mining area--Hauling of
metallic minerals shall require an accompanying original “Ore Transport
Permit” (OTP) issued by the Provincial Governor or his duly
authorized officer.
Section 68-F. Registration of Documents--Special Power of Attorney, Supply Contract,
Permit Amendments and all other Mining Right Documents shall be
registered at the Environment and Natural Resources Office (ENRO).

Section 68-G. Accreditation--All mineral processors, traders, dealers and retailers of

metallic minerals, non-metallic minerals, sand, gravel, other quarry
resources, its products and by-products with raw materials
mined/extracted from areas covered with permit issued by the
Provincial Governor shall be required to apply for an accreditation by
the Provincial Government thru the Environment and Natural Resources
Office (ENRO).

Section 68-H . Renewal of Permit --Renewal of permit shall be considered only if filed on
or before its expiration date.

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