Republic Act No. 8997

AN ACT GRANTING FIRST GAS HOLDINGS CORPORATION A FRANCHISE TO CONSTRUCT, INSTALL, OWN, OPERATE AND MAINTAIN A NATURAL GAS PIPELINE FOR THE TRANSPORTATION AND DISTRIBUTION OF NATURAL GAS TO DIFFERENT AREAS IN THE ISLAND OF LUZON

Section 1. Nature and Scope of Franchise. - Subject to the provisions of the Constitution and applicable laws, rules and regulations, there is here by granted to First Gas Holdings Corporation, its successors or assigns, hereunder referred to as the grantee, a franchise to construct, install, own, operate and maintain for commercial purposes and in the interest of the public, natural gas pipeline system including pumping and compressing stations, metering and measurement facilities, storage tanks, gas tanks, power plants, shops, storehouses and other buildings, water supply and communication systems, roads and such other equipment or facilities as may be needed from time to time for the purpose of transporting and distributing natural gas throughout the Island of Luzon.

Section 2. Prior Approval of the Department of Environment and Natural Resources and the Department of Energy. - The grantee shall se cure from the Department of Environment and Natural Resources (DENR), the Department of Energy (DOE) or any other government agency which has jurisdiction over the operation of the herein franchise, the appropriate permits and licenses for the construction, installation, ownership, operation and maintenance of the said natural gas pipeline system. The DENR, the DOE and other concerned government agencies shall not unreasonably withhold or delay the grant of any such authority.

Section 3. Authority to the End Consumer and t he Environment. - The grantee shall at all times provide adequate, reliable and safe service to t he end consumers and shall conform to the highest environment and safety standard as ma y be prescribed by the DOE, the DENR with regards to Palawan gas, the Palawan Council for Sustainable Development and such other appropriate agencies of the government.

Section 4. Right of Way and Construction. - For the purpose of constructing, installing, operating and maintaining the pipeline system, it shall be lawful for the grantee to make excavations and laypipes in any of the public lands, waters and properties, including highways, streets, bridges and public works in any city or municipality throughout the Island of Luzon: Provided , That any public land, water and property, including highways, streets, bridges and public works disturbed, altered or changed thereby shall be repaired, restored and replaced in workmanlike manner by the grantee to the satisfaction of the Department of Public Works and Highways (DPWH) or the local engineering office, as the case may be, and in accordance with existing laws and rules on excavation and reconstitution of such public works.

Section 5. Easement Over Public Land. - When rights or easements of temporary occupancy over public land, water or property including high ways, roads, bridges and other public works are needed by the grantee for the purpose of carrying out work essential to its operation, such right shall be granted by the DPWH who shall see to it that such easement or temporary occupancy shall cause the least inconvenience to the general public: whenever rights or easement of temporary occupancy over public land without existing infrastructure, including foreshore lands are needed by the grantee in its operation, such rights or permit for the use or occupation of said public lands shall be granted by the DENR.

Section 6. Easement Over Private Land. - When easement or temporary occupancy over private lands are needed by a grantee for the purpose of carrying out work essential to its operations, the grantee may enter into the necessary agreement with owner or legal occupant of such private lands. If no agreement could be reached, or if the owner or legal occupant refuses to grant such easement, or in general, when any obstacle of whatever nature exist the immediate and certain acquisition of the necessary area, or of any right indispensable to the grantee for the purpose of the franchise, the regional trial court of the city or province where the land is situated shall, upon application and posting of the necessary bond therefor, authorize the grantee to use and occupy the land needed by it in its operations, pending final determination of the case which shall include among others the reasonable value or rental of the land to be occupied and the compensation for any resulting damage that the landowner or legal occupant may suffer as a result of such operation.

Section 7. Eminent Domain. - The grantee may acqui re such private property or portion thereof as is actually necessary for the realization of t he purposes for which this franchise is granted: Provided , That in case the owner refuses to sell or allow the use thereof, the proper proceedings shall be instituted by the grantee, posting therefor a bond as ma y be fixed and approved by the regional trial court of the city or province wher e the land is situated. The court shall issue an order allowing such right pending the final deter mination of the proper amount that shall be paid by the grantee to the landowner or legal occupant.