MGB-8 puts on hold sand and gravel operations in Leyte town

By Philippine Information Agency (PIA 8)
March 5, 2008

TACLOBAN CITY, Leyte  –  The sand and gravel extraction, processing and disposal of the five sand and gravel industrial permit holders in the municipality of Hilongos, Leyte were ordered suspended by the Mines and Geosciences Bureau Regional Office 8 Director Loreto B. Alburo, in view of their failure to pay their accrued sand and gravel extraction fee.

This was learned from OIC Chief of the Mining Environment and Safety Division of MGB, Mr. Armando S. Dupio, Jr.

The issuance of the order is in accordance with DENR Administrative Order 96-40 otherwise known as the Philippine Mining Act of 1995.

Director Alburo said that the regular payment of extraction fee to the provincial treasurer, or the municipal treasurer if deputized by the province, is one of the requirements of the new Mining Act and other subsequent policy issuances or amendments, and terms and conditions of the issued permits in the conduct of industrial sand and gravel operation.

The Local Government Code of 1991 provides that 30% of the extraction fees goes to the province; another 30% goes to the municipality and the remaining 40% accrues to the barangay where the materials are extracted.

The settlement of the unpaid sand and gravel extraction fee has been the discussed in the quarterly meeting of the Mine Rehabilitation Fund Committee in Hilongos, Leyte held in November, 2007.

Director Alburo, being the MRFC Chair advised all the permit holders to settle their arrears lest suspension orders be issued, however, the same failed to heed the advice.

Director Alburo said that the suspension will be lifted upon individual submission to the MGB-8, the official receipts and certification from the provincial treasurer or municipal treasurer of Hilongos, indicating that 50% of their arrears has been fully paid. The concerned LGU will generate approximately P2 Million from the required 50% payment, Director Alburo said.

In addition, a duly notarized compromise agreement entered into by and between the permitee and the provincial Governor of Leyte or municipal Mayor of Hilongos, must also be submitted to MGB-8, Director Alburo added.

The agreement should state among others, that the remaining 50% arrears shall be paid in 6 equal monthly installments from the date of payment of the first 50% of the arrears.

Director Alburo said that failure to comply with the terms and conditions of the agreement and the permit shall be a ground for cancellation of the sand and gravel industrial permit.