REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF ENERGY
TAGUIG CITY, PHILIPPINES 1632

OFFICE OF THE SECRETARY

IN THE MATTER OF VIOLATIONS OF

DOE LAWS, RULES AND
REGULATIONS
OLS CASE NO. 2018-G-
Docketed:
ER PETRON SERVICE CENTER
and/or ERNANI C. TAN
Owner/Operator
Respondent
x --------------------------------------- x

ORDER

Pursuant to Special Assignment No. 2018-09-0160 dated September 13,

2018, inspectors from the Oil Industry Management Bureau (OIMB) of the
Department of Energy proceeded on September 18, 2018 to the business premises of
ER PETRON SERVICE CENTER, a petroleum products retail outlet owned and/or
operated by ERNANI C. TAN located at Brgy. 10, Poblacion, Catanauan, Quezon
purposely to conduct an inspection/investigation thereat.

The Inspection/Investigation Report revealed the following violations of the

provisions of Department Circular No. 2017-11-0011 also known as the
“Promulgating a Revised Rules and Regulations Governing the Business of
Retailing Liquid Fuels”:

1. For Illegal Trading, for failure to post a COC in the Retail Outlet, in
violation of Section 9, Rule II, which provides:

“Section 9. Posting of COC. The COC shall be prominently displayed in the

Retail Outlet in a conspicuous location for easy viewing/inspection by its customers
and the public. The failure to post COC shall constitute Illegal Trading.”

2. For Illegal Trading, for failure to maintain a NML calibrated and sealed
Test Measure as a result of a failure to recalibrate the calibrating bucket, ,
in violation of Section 25, Rule VI, which provides:

“Section 25. Test Measure Requirement in All Retail Outlets.

a. OIMB or the Field Offices shall inspect and verify the dispensing pump
using a valid Test Measure to check for possible underdelivering.
b. All Retail Outlets shall maintain a 10-litre Test Measure, which must be
inspected, calibrated, verified, adjusted, as necessary and resealed once
every twelve (12) months by the NML of the ITDI, DOST and DOST
regional calibration laboratories.
c. The Retail Outlet Official shall verify the accuracy of the dispensing pump
using a valid Test Measure and keep a written record or logbook of its
weekly readings. The periodic calibration by the retail Outlets shall guide
them as to whether they have to request for the LGU calibration earlier
than their schedule. The written record or logbook shall be duly-signed by
the authorized calibrating entity and countersigned by the Retail Outlet
Official or his authorized representative and shall be maintained at all
times in the Retail Outlet premises and presented to OIMB or the Field
Offices and to the public upon demand thereof.
d. The Retail Outlet Official shall ensure that the authority performing the
calibration shall install a seal after calibration to guard against
unauthorized adjustment of the dispensing pump meter, which seal shall be

Energy Center, Rizal Drive, Bonifacio Global City, Taguig City, Philippines 1632
Website: http://www.doe.gov.ph E-mail: info@doe.gov.ph Trunkline: (632) 840-1401
 broken until the next calibration by an authorized entity. Breaking the seal
for the purpose of calibration by an entity other than the LGU shall have
prior authorization by the LGU otherwise, unauthorized breaking of the
seal shall constitute the offense of ILLEGAL TRADING.

Failure to maintain a NML calibrated and sealed Test Measure, or the duly
documented and signed and countersigned written record or logbook, or
maintaining or using dilapidated, unserviceable, expired or uncalibrated Test
Measure notwithstanding the fact that the dispensing pumps are not actually
underdelivering shall constitute ILLEGAL TRADING.

3. For Illegal Trading, and for failure to maintain a NML calibration record
or logbook, in violation of Section 25, Rule VI, which provides:

“Section 25. Test Measure Requirement in All Retail Outlets.

a. OIMB or the Field Offices shall inspect and verify the dispensing pump
using a valid Test Measure to check for possible underdelivering.
b. All Retail Outlets shall maintain a 10-litre Test Measure, which must be
inspected, calibrated, verified, adjusted, as necessary and resealed once
every twelve (12) months by the NML of the ITDI, DOST and DOST
regional calibration laboratories.
c. The Retail Outlet Official shall verify the accuracy of the dispensing pump
using a valid Test Measure and keep a written record or logbook of its
weekly readings. The periodic calibration by the retail Outlets shall guide
them as to whether they have to request for the LGU calibration earlier
than their schedule. The written record or logbook shall be duly-signed by
the authorized calibrating entity and countersigned by the Retail Outlet
Official or his authorized representative and shall be maintained at all
times in the Retail Outlet premises and presented to OIMB or the Field
Offices and to the public upon demand thereof.
d. The Retail Outlet Official shall ensure that the authority performing the
calibration shall install a seal after calibration to guard against
unauthorized adjustment of the dispensing pump meter, which seal shall be
broken until the next calibration by an authorized entity. Breaking the seal
for the purpose of calibration by an entity other than the LGU shall have
prior authorization by the LGU otherwise, unauthorized breaking of the
seal shall constitute the offense of ILLEGAL TRADING.

Failure to maintain a NML calibrated and sealed Test Measure, or the duly
documented and signed and countersigned written record or logbook, or
maintaining or using dilapidated, unserviceable, expired or uncalibrated Test
Measure notwithstanding the fact that the dispensing pumps are not actually
underdelivering shall constitute ILLEGAL TRADING.

x–x–x

After that inspection on September 18, 2018, Respondent, through the

outlet’s representative Ms. Rosalita De Gala was then furnished a copy of the said
Inspection/Investigation Report and acknowledged her receipt of the same by
affixing therein her signature.

The Inspection /Investigation Report also contains a directive for the

respondent to institute corrective measures in conformity to the standards prescribed
by laws, rules and regulations governing liquid fuels industry.

It also gives the respondent the opportunity to explain in writing and under
oath within ten (10) days from the date of inspection why no administrative and/or
criminal action should be instituted against her for said violations.

However, ten (10) days had elapsed and, as of the date of this Order, the
respondent still failed to submit the required written explanation. Hence, respondent
has been given more than reasonable opportunity to explain the violations, and by

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 her failure to submit said written explanation, she is deemed to have waived her
opportunity to be heard.

Consequently, the DOE-OIMB forwarded the said Inspection Report to the

Office of the Legal Services of the DOE for appropriate action.

After careful evaluation of the Inspection/Investigation Report (I.R.), this

Office is convinced that herein Respondent ER PETRON SERVICE CENTER
and/or ERNANI C. TAN as owner/operator, was remiss in her duties and
responsibilities as an operator of a retail business catering to the general public.
WHEREFORE, in view of the foregoing, this Office finds Respondent ER
PETRON SERVICE CENTER and/or ERNANI C. TAN to have indeed committed
the violations as reported and, pursuant to Section 29, Rule VIII of Department
Circular No. 2017-11-0011, which provides:
“Section 29. Fines/Sanctions Against Prohibited Acts. In addition to the right
and authority of the OIMB or the Field Offices to suspend and revoke the COC as
provided in this Circular, the Retail Outlet Official and/or Retail Outlet that commits
the prohibited acts shall be imposed the following penalties:

Penalty
Prohibited Act
1st Offense 2nd Offense 3rd Offense

A. ILLEGAL TRADING Warning with P10,000.00 with P10,000.00,

directive to post directive to Revocation of
1. Failure to Post COC in a conspicuous within 30 days. comply COC and
place, where a Retail Outlet does not A penalty of Recommend
or fails, or refuses to post the COC in P10,000.00 shall revocation of
the premises. be imposed for the permit or
failure to license to LGU
comply within
the said period.

A. ILLEGAL TRADING P10,000.00 P10,000.00 and

with Recommend
14. Failure to comply with Test Measure directive to revocation of
Requirements comply. the permit or
license to LGU.

hereby imposes on respondent,

1. For Illegal Trading, for failure to post a COC in the Retail Outlet,
this serves as a WARNING with DIRECTIVE TO POST WITHIN 30
days, and with notice that a penalty of P10,000.00 shall be imposed for
failure to comply within the said period; and

2. For Illegal Trading, for failure to maintain a NML calibrated and

sealed Test Measure, an administrative fine of TEN THOUSAND
PESOS (P10,000.00); and

3. For Illegal Trading, for failure to maintain a duly documented and

signed and countersigned written record or logbook, an administrative
fine of TEN THOUSAND PESOS (P10,000.00).

Consequently, Respondent ER PETRON SERVICE CENTER and/or

ERNANI C. TAN is hereby directed to pay the total administrative fine of
TWENTY THOUSAND PESOS (P20,000.00) within thirty days (30) from receipt
of this Order, either in cash, postal money order or manager’s check with the
DEPARTMENT OF ENERGY as payee. Payment, together with a copy of this
Order, may be personally brought to, made or sent by mail to:
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 DEPARTMENT OF ENERGY
ADMINISTRATIVE SERVICES
c/o TREASURY DIVISION
Energy Center, Rizal Drive corner 34th Street
Bonifacio Global City, Taguig
Metro Manila

Respondent is further directed to institute corrective measures on the

aforesaid violations, and submit proof of compliance to the DOE-Office of the Legal
Services within thirty (30) days from receipt of this Order.
Respondent is likewise reminded that her failure to comply with this Order
will not preclude this Office from imposing a more severe penalty, recommendation
to the proper government unit the suspension or revocation of the respondent’s
business permit, as provided in Section 15e of R.A. 8479 (An Act Deregulating the
Downstream Oil Industry and for Other Purposes).

SO ORDERED.

Bonifacio Global City, Taguig, Metro Manila, ___________________.

For and by authority of the Secretary:

ATTY. ARTHUS T. TENAZAS

Director, Legal Services

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