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Republic act no 5092


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This is enacted in 1967 and had been used other laws and proclamations pertaining to use of MakBan.

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Republic act no 5092

  1. 1. Republic Act No 5092AN ACTTO PROMOTE AND REGULATE THEEXPLORATION, DEVELOPMENT,EXPLOITATION AND UTILIZATION OFGEOTHERMAL ENERGY, NATURAL GAS ANDMETHANE GAS; TO ENCOURAGE ITSCONSERVATION; AND FOR OTHER PURPOSESSECTION 1. Short title of Act. – The short title ofthis Act shall be “Geothermal Energy, Natural Gas andMethane Gas Law.”SEC. 2. Definition of terms. – When used in this Act,the following terms shall, unless the context otherwiseindicates, have the following respective meanings:(a) “Act” means this “Geothermal Energy, NaturalGas and Methane Gas Law.”(b) “Bore” means any well, hole, pipe, or excavation ofany kind which is bored, drilled, sunk or made inthe ground for the purpose of investigating,prospecting, obtaining, or producing geothermalenergy, natural gas and methane gas, or whichtaps or is likely to tap geothermal energy,natural gas and methane gas and includes anyhole in the ground which taps geothermalenergy, natural gas and methane gas.(c) “Geothermal energy” means energy derived orderivable from and produced within the earth bynatural heat phenomenon: and includes allsteam, and water vapor, and every mixture of allor any of them that has been heated by natural
  2. 2. underground energy, and every kind of matterderived from a bore and for the time being withor in any such stead, water, water vapor, ormixture.(d) “Government” means the Government of thePhilippines.(e) “State” means the Republic of the Philippines.(f) “Person” includes a natural person, corporation, orpartnership.SEC. 3. State ownership. – All geothermal sources oroccurrences of geothermal energy, natural gas andmethane gas in public and/or private lands in thePhilippines, whether found in, on or under the surfaceof dry lands, creeks, rivers, lakes, or other submergedlands within the territorial waters of the Philippinesbelong to the State, inalienable and imprescriptible andtheir exploration for, tapping and utilization shall begoverned by the provisions of this Act.SEC. 4. Title to land. – The ownership or the right tothe use of lands for agricultural, industrial, commercial,residential, mining, petroleum, or for any otherpurposes other than for the exploration, tapping or useof geothermal energy, natural gas and methane gas,does not include ownership of, nor the right to explorefor, tap, or utilize the geothermal energy, natural gasand methane gas in, on or under the surface of suchland.SEC. 5. Granting of geothermal energy, natural gasand methane gas rights. – The right to explore for, tap,or utilize geothermal energy, natural gas and methane
  3. 3. gas may be obtained and exercised only by means ofpermits and/or leases granted to duly qualified personsin accordance with the provisions of this Act: Provided,That no such permit shall be required if the explorationis undertaken by the owner of the land himself or by hisagent: Provided, further, That where geothermalenergy, natural gas and methane gas is already beingused for any domestic purpose whatever (includingcooking, heating, washing, and bathing) at the time thisAct takes effect, the user thereof may continue usingthe same to similar or lesser extent without the need ofsecuring a permit or lease under this Act unless theDirector of Mines, having regard to the public interest,otherwise directs.The Government reserves the right to undertake theexploration for, tapping, or utilization of geothermalenergy, natural gas and methane gas either by itself orthrough its instrumentalities, or through competentpersons qualified to undertake such work asindependent contractor or contractors.SEC. 6. Qualifications of applicants. – Applicants forpermits or leases under this Act shall have thefollowing qualifications:In case of an individual, he shall be a citizen of thePhilippines, be of legal age, and have the capacity tocontract obligations.In case of an association of individuals, it shall either apartnership or a corporation duly organized andconstituted under the laws of the Philippines, at leastsixty per centum of the capital of which is and shall atall times be owned and held by citizens of thePhilippines.
  4. 4. Any applicant shall present evidence showing thatsufficient finance, organization, resources, technicalcompetence, skills, and experience necessary to conductthe operations to be undertaken under the permitand/or lease being applied for, in a manner which is inaccordance with the best method known to theindustry, are available to the applicant.SEC. 7. Lands covered by permits, leases are subject topublic easements. – All lands covered by permits and/orleases granted under this Act shall be subject to publiceasements established or recognized by existing orfuture laws.SEC. 8. Operations of permittees/lessees subject tomining rights. – The operations of permittees and/orlessees under the provisions of this Act shall be subjectto existing mining or petroleum rights, grants, permits,leases, and concessions and the same shall notadversely affect the operations of the latter. Anyquestion in this regard shall be decided and settled bythe Director of Mines.SEC. 9. Rights to enter private land. – Holders ofpermits and/or leases granted under the provisions ofthis Act, their men, contractors or operators, uponwritten notice sent to the owner on the land at least tendays in advance, are granted the right to enter and re-enter from time to time upon private lands covered bytheir permits and/or leases for the purpose ofconducting geological and/or geophysical studies, makeany bore therein, with the right to use all instrumentsand apparatus necessary to carry out such studies,subject to the obligations to indemnify the owner orlegal occupant of the land for all material damage
  5. 5. suffered by the property, its annexes or appurtenancesas a result of such studies: Provided, That in no caseshall the occupancy of private buildings, yards orgardens be authorized against the will of their owner.In the event the right granted in this Section shall bedenied by the owner of the private land or by its legaloccupant, the permittee and/or lessee may apply forand, upon posting such bond as may be fixed andapproved by the municipal court of the municipalitywhere the land is situated, the court shall issue anorder allowing such right to enter pending the finaldetermination of the proper amount that shall be paidby the permittee and/or lessee to the land-owner orlegal occupant.SEC. 10. Easements over private land. – Wheneasements of temporary or permanent occupancy overprivate lands are needed by a permittee or lessee forthe purpose of carrying out any works essential to hisoperations under the provisions of this Act, he mayenter into necessary agreement with the owner or legaloccupant of such private land. If no agreement can bereached, or if the owner or legal occupant refuses togrant such easement, or in general, when any obstacleof whatever nature exists to the immediate and certainacquisition of the necessary surface area or of any rightindispensable to the permittee or lessee for the purposeof concession, the municipal court of the municipalitywhere the land is situated shall, upon application of thepermittee or lessee and posting of the necessary bond,grant to the said, permittee or lessee authority to useand occupy the land needed by him in his operations,pending final determination of the case which shallinclude among others the reasonable value or rental ofthe land to be occupied and the compensation for any
  6. 6. resulting damage that the land-owner or legal occupantmay suffer as a result of such occupation.When the occupation of a private land is needed by thepermittee or lessee in connection with his permit and/orease granted in this Act for the purpose of constructing,maintaining, operating, and drilling bores, tanks,reservoirs, waterways, pipelines, roads, railroads,tramlines, telephone and telegraph lines; airfields,radio stations, powerhouses, transmission lines,pumping stations, wharves, piers and terminals, whichare hereby declared to be for public use or benefit, theright of eminent domain may be exercised by theGovernment through the permittee or lessee, inaccordance with the applicable laws on the matter.In all cases, whether it be an order of the court or avoluntary agreement between the permittee and/orlessee and the private landowner, as referred to in thisSection, a copy of such order or agreement shall befurnished to the Director of Mines.For the purpose of this Section the necessity of thework will presumed in the cases of bore drilling andauxiliary works, construction of pipelines, tanks,pumping plants, power systems, warehouses, shops,and means of transport and communication.SEC. 11. Right to enter public land and easement overthe same. – Except lands covered by armed forcesreservations, all public lands may be entered into bythe holder of a permit and/or lease issued under thisAct if the same is covered by said permit and/or lease.When easement or right of temporary or permanentoccupancy over said public land is needed by said
  7. 7. holder of a permit and/or lease for the purpose ofcarrying any work essential to his operations under thisAct, except in areas covered by military reservation,such right may be granted by the Director of Mineswith due regard to prior rights of third parties and tothe purpose for which the reservation had beenestablished.The presumption of necessity stated in Section tenapplies likewise in this case.SEC. 12. Application for permit. – Application forpermit shall be accompanied by a plan showing thebearings and distances of the boundaries and latitudeand longitude to the nearest second of the corner 1. Itshall be filed with the Director of Mines who shallexamine an act upon the same as well as upon thequalification, and authorize the publication of a noticethereof at least once a week for three consecutive weeksin the Official Gazette and in a newspaper of generalcirculation published in English in the City of Manila,notwithstanding any provision of law to the contrary.At any time during the period of publication of saidnotice, an adverse claim stating the nature and groundsthereof, may be filed with the Director of Mines. If noadverse claim is filed within the said period ofpublication, it shall be conclusively presumed that nosuch adverse claims exists and thereafter no adverseclaim for third parties shall be heard; and the permitshall be issued by the Director of Mines for the Republicof the Philippines which shall state the principal rightsand obligations of the permittee.The applicant for a permit should prosecute hisapplication with due diligence by seeing to it that his
  8. 8. application is in order and that he has submittedsatisfactory evidence showing that he possesses thequalifications required by law and regulations. In caseof conflict of application for permit under the provisionsof this Act, priority of the filing of application shalldetermine as to who has the preferential right,provided that his application is put in order andsatisfactory evidence of the required qualifications issubmitted within the period provided for by theregulations.Any adverse claim filed during the period of publicationof the notice shall be decided by the Director of Mines.SEC. 13. Size and shape of permit areas. – A permitshall be granted in blocks rectangular in shape exceptwhen allowed by the Director of Mines in cases where itis contiguous with the seas, bays, lakes or with otherpermits or leases already granted; as much as possible,its longer dimension shall not be more than five timesits shorter dimension. Each permit area shall not bemore than five thousand hectares.No person shall acquire more than ten permits in thewhole territory of the Philippines.SEC. 14. Rights conveyed under a permit. – Thepermit conveys upon the holder thereof, his heirs andassigns, from the date of its granting and during itsterm and any extension thereof, the exclusive right toexplore the block covered, to do geological and physicalwork, to conduct drilling operations, and to do suchother work related to explorations or that has for itsobject the discovery of geothermal energy, natural gasor methane gas. The actual production and utilizationof any geothermal energy, natural gas or methane gasthat may be discovered is not included in the right
  9. 9. granted under a permit.SEC. 15. Exploration work obligations. – With theapplication for permit and before the start of eachcalendar year thereafter during the life of the permit,the applicant/permittee shall submit to the Director ofMines a program of exploration work to be undertakenby him within his permit during the year.Beginning from the date of the granting of the permitand up to the first anniversary date thereof and everypermit year thereafter during the life of the permit, heis obligated to spend in the direct prosecution ofexploration work within his permit such astopographical or geological reconnaissance or detailedsurvey, mapping or cross sectioning, geophysicalsurveys, core or exploratory drilling, or anycombination of said work, not less than two pesos perhectare per year or fraction thereof: Provided, That inno case shall the total amount for each permit be lessthan one thousand pesos a year: Provided, further,That for purposes of renewal of the permit necessarydrilling as required in Section sixteen hereof, shall havebeen conducted therein.The permittee or lessee shall give satisfactory evidenceto the Government of such expenditures duly supportedand justified by technical report or reports prepared inaccordance with the regulations which shall besubmitted within ninety days after the end of thecorresponding calendar year.An amount actually spent for the exploration work inexcess of any minimum amount required for any yearand duly approved by the Bureau of Mines may becarried forward to exploration work obligations
  10. 10. required for the succeeding years: Provided, That suchexcess expenditures may not be carried forward to anyperiod of renewal: Provided, however, That shouldthere be any unspent balance of the required workobligations for any year, the same shall be forfeited infavor of the Bureau of Mines and shall form part of itsMines Special Fund.Failure to comply with the minimum work obligationsin any one year as hereinabove provided or to submitthe required technical report within the period given,shall be sufficient cause for the cancellation of thepermit by the Secretary of Agriculture and NaturalResources upon recommendation of the Director ofMines and termination of the right of permittee withoutprejudice to collecting from the permittee whateverdifference their is between the minimum amountrequired and that actually spent for any year. An nonew or additional areas and/or rights under this Actshall be granted to a permittee who has thus failed tocomply with his minimum work obligation in any of hissubsisting permit and/or lease under this Act until afterhe shall have corrected his defaults.SEC. 16. Term of permit. – The initial term of a permitshall not be more than three years counted from thedate of its issuance: Provided, That if the permitteehas drilled a well or wells within the area covered byhis permit at any time during the initial term with atotal footage of not less than one thousand feet and hascomplied with the provisions of this Act and theregulations and with the terms of the permit, theSecretary of Agriculture and Natural Resources maygrant an extension thereof for a term of two years, forits entire area or for any part thereof, upon applicationmade prior to the expiration of the original term of the
  11. 11. permit: Provided, further, That if during the term ofthe first extension the permittee has also drilled a wellor wells within the area covered by the permit with atotal footage of two thousand feet and has compliedwith the provisions of this Act and the regulations andwith the terms and conditions of the permit, theSecretary of Agriculture and Natural Resources, uponthe application of the concessionaire made prior to theexpiration of the first extension of the said permit, maygrant an extension thereof for its entire area or partthereof, for another term of two years. No furtherextension of any permit shall be granted at the end ofseven years from date of its original issuance:Provided, That should the permittee be still interestedin the area and he had drilled a well or wells thereinduring the period of the second renewal with therequired total footage and has complied with theprovisions of this Act and the regulations and with theterms and conditions of the permit, he may, if he isqualified to do so, file an application for a permit overthe same area or portion thereof, which shall be treatedas any other new application for permit.SEC. 17. Application for lease. – If and when adiscovery of geothermal energy, natural gas andmethane gas has been made by a holder of a permit andhe has determined that the same is of commercial valueand that he is ready to produce and utilize the same orput it into commercial use, he may at any time duringthe life of his permit and subject to the limitation inSection eighteen of this Act, apply for a lease of thearea or portion covered by his permit by filing anapplication with the Director of Mines which shall beaccompanied by a plan prepared from an accuratetransit and tape survey of the area indicating onecorner of a claim tied by bearing and distance to a
  12. 12. recognized bench mark, permanent monument, or otherregistered points, and approved by the Director ofMines.If and when the application for lease is found in order,the condition for the granting of the lease present andapplicant, qualified, the Director of Mines shall grantthe lease to the applicant for the Republic of thePhilippines stating therein the principal rights andobligations of the lessee.SEC. 18. Size and shape of the lease area. – The areathat may be applied for lease shall be not more thanone-half of the original area covered by the permit andshall be in block rectangular in shape, except whenallowed by the Secretary of Agriculture and NaturalResources in cases where it is contiguous with seas,bays and lakes and with other existing concessions,with its longer dimension not more than five times itsshorter dimension. No person shall be allowed to holdmore than twenty-five thousand hectares under lease inthe whole territory of the Philippines.SEC. 19. Rights conveyed under lease. – The lessee, hisheirs and assigns have the exclusive right, under theterm of the lease, to drill within the boundariesprojected vertically downward of the area covered byhis lease to tap and utilize the geothermal energy,natural gas and methane gas existing therein and/or toextract therefrom any kind of matter derived from abore and for the time being with or any steam, water,water vapor or mixture and to process and market thesame, subject to the provisions of this Act and theregulations that may be issued by the Secretary ofAgriculture and Natural Resources regardingconservation and prevention of waste, prevention of
  13. 13. water and air pollution, safety and health, and anyother pertinent matter.SEC. 20. Minerals mixed with steam. – Any mineralthat may be found in or mixed with steam, water vapor,or mixture thereof that has been heated by naturalunderground energy may be separated therefrom andproduce without the need of coming under theprovisions of the Mining Act, if such separation andproduction of the mineral is only incidental to or a by-product of the production and utilization for commercialpurposes of the geothermal energy, natural gas andmethane gas.SEC. 21. Work obligations of lessee. – With theapplication for lease and before the beginning of eachcalendar year during the life of the lease, the applicantor lessee shall submit to the Director of Mines, aprogram of work proposed to be undertaken by himwithin the lease during that year.The lessee shall commence to tap and utilize thegeothermal energy, natural gas and methane gasdiscovered within one year from the date the lease isgranted and shall continue such tapping and utilizationuntil at least the commercial requirement for suchenergy as determined by the lessee after consultationwith the Director of Mines is met: Provided, That theextent of such tapping and utilization is in accordancewith good engineering practice: Provided, further, Thatunreasonable suspension or limitation of suchproduction or utilization shall be a cause forcancellation of the lease by the Director of Mines.SEC. 22. Annual tax. – No annual tax on the leaseshall be due until the lessee has commenced
  14. 14. commercial operation, but thereafter, a tax of two pesosper hectare per year or fraction thereof shall be due andpayable to the government.SEC. 23. Term of lease. – The term of lease shall notexceed twenty- five years counted from the date of itsissuance renewable for another period not to exceedtwenty-five years at the option of and upon applicationof the lessee made prior to the expiration of the originalterm.SEC. 24. Royalty. – Geothermal energy, natural gasand methane gas that may be produced and utilized forcommercial purposes shall be subject to the payment ofroyalty to the Government at the rate of one and one-half per centum of the market value of the energy or gasso produced and utilized.SEC. 25. Renunciation of areas covered by permitand/or lease. – The holder of a permit and/or leasemay, at any time during the existence of the permitand/or lease, renounce the whole or any part of the totalarea covered thereby.SEC. 26. Application fee. – Every application shall beaccompanied with an application fee of five hundredpesos for a permit and one thousand pesos for a lease.In the event that no corresponding permit to lease isgranted, the sum paid shall be returned to theapplicant less such amount of expenses incurred by theGovernment in connection with the processing of saidapplication in accordance with the regulations. Saidfees shall form part of the trust fund of the Bureau ofMines.SEC. 27. Bond for performance. – Upon the issuance of
  15. 15. a permit and/or lease, the permittee and/or lessee shallpost a bond in favor of the government in a sum to befixed by the regulations and with surety or suretiessatisfactory to the Secretary of Agriculture and NaturalResources conditioned upon the faithful performance bythe permittee and/or lessee of all his obligations underthe permit and/or lease to be issued to him.SEC. 28. Employment of Filipinos. – Permittees and/orlessees and their contractors or operators are obligatedto give preference to Philippine citizens in all types ofemployment within the country, insofar as such citizensare qualified to perform the corresponding work withreasonable efficiency and without hazard to the safetyof the operations; and are obligated likewise tomaintain effective programs of training andadvancement commensurate with the demonstratedabilities of such citizens to perform satisfactorily thevarious types of operations involved. The permitteesand/or lessees, however, shall not be hindered fromusing employees of their own selection and withoutrestriction for executive or technical work which; intheir judgment, and with the approval of the Director ofMines, requires highly specialized training or longexperience.Each permittee and/or lessee and their contractors oroperators shall submit to the Government annualreport giving statistical and descriptive informationrelevant to the provisions of this Section as provided inthe regulations, and shall be obligated to demonstrateto the satisfaction of the Director of Mines uponrequest, that these provisions are being complied with.In the event that in the opinion of the Director ofMines, such provisions are not complied with, he isempowered to require the permittee and/or lessee to
  16. 16. take such steps as may be necessary to effect suchcompliance, without prejudice, however, to the right ofthe permittee and/ or lessee under the exceptionprovided in the last sentence of the first paragraph ofthis Section.SEC. 29. Submission of information and reports bypermittee and/or lessee. – Holders of a permit and/orlease issued under this Act shall submit to the Directorof Mines all information that the latter may requirefrom time to time particularly but not limited to,reports on the results of geological and geophysicalexamination, including a complete history on its wellformation records, electric logs, and result of all testsproduction reports showing all pertinent productiondata, etc., in the form and manner and at intervalsprescribed by the regulations.SEC. 30. Inspection of operations and examination ofbooks and accounts. – The Director of Mines or hisrepresentatives shall have authority to inspect anyoperations of the permittee and/or lessee at allreasonable times and to examine the records of saidoperations as well as all the books and accountspertaining thereto or related to payment of taxes androyalties under this Act and to carry out any otherinspection authorized by law or regulations. Thepermittee and/or lessee shall furnish to said official orhis representative all technical and actual dataspecified in the regulations and shall give themauthority and ample facilities and assistance todischarge their duties as such.For the purpose of enabling proper examination asprovided for in this Section, the permittee and/or lesseeis obligated to retain within the country all original
  17. 17. records or original carbon copies thereof which areessential for the purpose of determining the amount oftaxes and royalties due to the Government.SEC. 31. Taxes and customs duties. – During the firstfive-year period following the granting of any lease, thepermittee and/or lessee may import, free of customs andtariff duties, compensating tax, and such other taxesthat may be imposed on importation, such equipment,machineries, instruments, accessories and spare parts,chemicals and supplies as may be certified by theDirector of Mines to be essential to the operations of thepermittee and/or lessee.These equipment, machineries, instruments,accessories and spare parts, chemicals and supplies,when no longer needed in the operation of the permitteeand/or lessee, may be exported or returned to point oforigin without being subject to any export tax:Provided, That when such equipment, machineries,instruments, accessories and spare parts, chemicalsand supplies are subsequently sold to any person notqualified under this law, the same shall be subject totax.No exemption shall be allowed on goods imported bythe permittee and/or lessee for his personal use or thatof any other; nor for sale or for purposes other than forthe exploration, for production and utilization ofgeothermal energy, natural gas and methane gas, andafter any goods on which exemption has been allowed tobe thus used or disposed of the permittee and/or lesseeis obliged to make a report to that effect to pay suchduty or duties as due thereon.SEC. 32. Work obligations, special taxes and royalties
  18. 18. not to be changed. – Work obligations, special taxesand royalties which are fixed by the provisions of thisAct or by the terms of the permit and/or lease, areconsidered as inherent on such permit and/or leaseafter they have been granted and shall not be increasedor changed during the life of the permit and/or lease towhich they apply; nor shall any other special taxes orlevies be applied to such permit and/or lease; nor shallthe permittee and/or lessee be subject to any provincial,municipal or other local taxes or levies. All suchpermittees and lessees, however, shall be subject tosuch taxes as are of general application in addition totaxes and levies specifically provided in this Act.SEC. 33. Compulsory collection. – In the event offailure by a permittee and/or lessee to pay any tax,royalty or unspent balance on his work obligations, dueunder the provisions of this Act, the same shall besubject to surcharge of one per cent a month until paidand when such failure shall be for a period of sixmonths from the date when they become due andpayable, the Government may resort to compulsorycollection and in accordance with the provisions of theNational Internal Revenue Code.SEC. 34. Officials in charge and powers and duties. –The Director of Mines shall be the executive officercharged with carrying out the provisions of this Act. Heshall prescribe rules and regulations and issue orderswhich he may find necessary to carry out the provisionsof this Act, which, among others, shall include thefollowing:(a) Prescribing any form that may be required forthe purpose of this Act;
  19. 19. (b) Prescribing the financial and technicalqualifications of applicants for permit or lease,and the conditions upon or subject to whichpermits or leases, may be applied for, granted orrenewed;(c) Providing for the keeping of records andfurnishing of information and returns by personsauthorized by permittee and/or lessee andprescribing the nature of records, information,and returns and the form, manner, and times inor at which they shall be kept or furnished;(d) Prescribing the duties of permittees and/or lesseeand the operations to be carried out under saidpermits or leases;(e) Prescribing the qualifications of persons incharge in making, marking and closing bores andin particular, of persons employed as boremanagers and providing for the examinations ofand grant certificates to qualified persons;(f) Preventing or abating nuisances in or aboutbores and industries using geothermal energy,natural gas and methane gas;(g) Prescribing safety precautions in the making andafter completion of bores, and the treatment ofthe ground about any bore and of water aboveand below the ground, and preventing waste orloss of geothermal energy, natural gas andmethane gas;(h) Prescribing drilling machinery, materials andcasts to be used in making of bores and to be
  20. 20. available to cope with any emergency inconnection with any bore and prohibiting the useof other classes thereof;(i) Prohibiting or regulating the making of boresnear other bores;(j) Regulating the cessation of boring operations andthe abandonment and closing of bores andprescribing precautions against loosening theearth in the vicinity of any bore;(k) Providing for bores to be made with due diligenceand by safe and satisfactory methods.SEC. 35. Orders, decisions and appeals. – Orders anddecisions of the Director of Mines may be appealed tothe Secretary of Agriculture and Natural Resourceswithin thirty days after receipt of such order ordecision. In case any of the parties concerned shoulddisagree from the order or decision of the Secretary ofAgriculture and Natural Resources the matter may betaken to the Court of Appeals or to the Supreme Court,as the case may be, within thirty days from receipt ofsuch order or decision. Failure to take the necessaryappeal within the period herein prescribed shall renderthe order or decision final and binding upon the partiesconcerned. Findings of facts in the decision of theDirector of Mines when affirmed by the Secretary ofAgriculture and Natural Resources shall be finalconclusively, and the aggrieved party or partiesdesiring to appeal from such order or decision shall filein the Supreme Court within the period hereinprovided, a petition for review wherein only questionsof law may be raised.
  21. 21. SEC. 36. Transfer and assignment. – Holders ofpermits and/or leases under this Act shall not, withoutprevious written approval of the Secretary ofAgriculture and Natural Resources, transfer or assign,in whole or in part, the rights under permits and/orleases: Provided, That no such transfer or assignmentshall be made to a person who is not qualified toacquire or hold a permit or lease under this Act, or whoshall hold a total area under permit or lease, includingthat to be assigned to him or more than the maximumareas allowed under this Act.SEC. 37. Partial invalidity. – If any clause, sentence,provisions or article of this Act shall be held invalid orunconstitutional, it shall not affect in anywise theremaining parts of this Act and such remaining partshall remain in full force and effect.SEC. 38. Repeal of laws, rules and regulations. – AllActs, laws, rules and regulations inconsistent with anyof the provisions of this Act are hereby repealed.SEC. 39. Effective date. – This Act shall take effectupon its approval.Enacted without Executive approval, June 17, 1967