Environmental Protection and Management Program (EPEP)

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{slide=WHAT IS AN ENVIRONMENTAL PROTECTION AND ENHANCEMENT PROGRAM (EPEP)?}

  • EPEP refers to the comprehensive and strategic environmental management plant for the life of the mining project on which AEPEPs are based and implemented to achieve the environmental management objectives, criteria and commitments including protection and rehabilitation of the disturbed environment.
  • It is the operational link between the environmental protection and enhancement commitments under D.A.O No. 96-40 the revised implementing rules and regulations of RA No. 7942, as well as those stipulated in the Environmental Compliance Certificate (ECC) under P.D. 1586 and the Contractor’s plan of mining operation.
  • It is the description of the expected and considered acceptable impacts and shall set out the life-of-mine environmental protection and enhancement strategies based on best practice in environmental management in mining.

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{slide=WHAT IS THE LEGAL BASIS FOR THE SUBMISSION OF EPEP?}

  • Section 69 Republic Act No. 7942 (Philippine Mining Act of 1995) states that “Every contractor shall undertake an environmental protection and enhancement program covering the period of the mineral agreement or permit. Such environmental program shall be incorporated in the work program which the contractor permitted shall submit as an accompanying document to the application for a mineral agreement or permit. The work program shall include not only plans relative to mining operations but also to rehabilitation, regeneration, revegetation reforestation of mineralized areas, slope stabilization of mined-out and tailings covered areas, aquaculture, watershed development and water conservation; and socioeconomic development”.

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{slide=HOW IS EPEP RELATED TO ECC?}

  • The preparation, submission and approval of EPEP shall be incorporated as a mandatory conditionality in the ECC being issued by the Secretary/RED or their duly authorized representatives to a Contractor/Permit Holder. The ECC shall be basis in the preparation of EPEP.

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{slide=WHEN IS EPEP REQUIRED?}

  • EPEP is required in the following cases:

As mandatory requirements for:

  1. Mineral Agreement Application;
  2. FTAA Contractors Application;
  3. Quarry Permit Application;
  4. Commercial/Industrial Sand and Gravel Permit Application;
  5. Government Gratuitous Permit Application;
  6. Guano Permit Application;
  7. Mineral Processing Permit Application; and\
  8. Special Mining Permit Application.
  • For existing MPSA or FTAA Contractors with ECCs and operating mines and quarries

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{slide=WHAT IS THE PENALTY IF A CONTRACTOR/ PERMIT HOLDER FAILS TO ESTABLISH AN MRF?}

Section 188 of the D.A.O No. 96-40 states that, “Failure of the Contractor/Permit Holder to establish a Mine Rehabilitation Fund shall be Sufficient ground to suspend pr cancel the mining operations in the areas under contracts”.

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{slide=WHAT ARE MINE WASTE AND TAILING FEES (MWTF)?}

  • MWTF are fees collected semiannually from each operating mill tailing it generated for the said period. The amount of fees collected shall accrue to a Mine Waste and Tailings (MWT) Reserve Fund and shall be deposited in a Government depository bank to be used for a payment of compensation for damages caused by any mining operations. The MWT Reserve Fund shall also be utilized for research project duly approved by the CLRF Steering Committee which are deemed necessary for the promotion and furtherance of its objectives.
  • MWTF shall be P0.50/MT of Mine Waste produced and P0.10 Mill Tailing Generated from milling operation.

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{slide=WHAT IS AN ENVIRONMENTAL TRUST FUND (ETF)?}

  • ETF is established to pay for mining related compensable damages other than those caused by mine waste and mill tailing. It is contained in the MOA entered into by and among the stakeholders. ETF is pegged at a minimum of PHP 50,000.00.


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{slide=WHAT IS THE MINE ENVIRONMENTAL PROTECTION AND ENHANCEMENT OFFICE (MEPEO)?}

  • A MEPEO is an office that shall be incorporated by a Contractors/Permit Holders in their mine organization structures and shall set the level of priorities and marshal the resources needed to implement environmental management programs.

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{slide=WHO SHALL HEAD THE MEPEO?}

  • The MEPEO shall be headed preferably by either a licensed Mining Engineer Geologist or Metallurgical Engineer or by an Environmental Engineer with at least five (5) years experience in actual mining environment work.

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{slide=WHO SHALL MONITOR AND AUDIT THE PERFORMANCE AND COMPLIANCE OF MINING COMPANIES WITH THE APPROVED EPEP/AEPEP?}

  • To ensure and check performance of and compliance with the approved EPEP/AEPEP by the Contractors/Permit Holders, a Multipartite Monitoring team (MMT), shall monitor every quarter, or more frequently as may be deemed necessary, the activities stipulated in the EPEP/AEPEP. The expenses for such monitoring shall be chargeable against the Monitoring Trust Fund of Mine Rehabilitation Fund. The environmental monitoring reports shall be submitted by the MMT to the MRF Committee and shall serve as part of the agenda during its meetings.
  • The reports shall also be submitted to the CLRF Steering Committee to serve as one of the bases for the annual environmental audit it shall conduct.

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{slide=WHAT IS THE PENAL PROVISION FOR MINING COMPANIES FOUND OPERATION WITHOUT AN APPROVED EPEP?}

  • Contractors/Permit Holders found operating a mining project without an approved EPEP/revised EPEP shall suffer the penalty prescribed in the Penal Provisions of the Mining Act.

{/slide}

{slide=WHAT SHOULD BE SUBMITTED BEFORE MINE CLOSURE?}

  • Five (5) years before the final decommissioning of the contract/mining area, the Contractors/Permit Holders shall submit to the MRF Committee through the MGB Regional Office and to CLRF Steering Committee through the MGB Central Office its final mine rehabilitation and/or decommissioning plan(s), including financial requirements up to post-decommissioning over e ten-year period for monitoring purpose. The plan shall be subject to pre-evaluation by the MRF Committee and to final approval by the CLRF Steering Committee.
  • The plan shall be prepared in consultation with local government and the communities. Integral to the plan is the social plans that minimize the mine closure’s economic impact to the host communities and adjoining communities and to the mine employees and dependents.

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{slide=WHO SHALL EVALUATE AND APPROVE/DISAPPROVE THE EPEP UNDER D.A.O No. 2003-46 (AMENDMENTS TO D.A.O No. 96-40)?}

  • EPEPs for MPSA, FTAA and Mineral Processing Permit holders/applicants shall be evaluated and approved/disapproved by the Contingent Liability and Rehabilitation Fund Steering Committee (CLRFSC); and
  • EPEPs for industrial Sand and Gravel Permit Quarry Permit holders/applicants shall be evaluated and approved/disapproved by the Mine Rehabilitation Fund Committee (MRFC).

{/slide}

{slide=WHAT SHALL BE DISCUSSED IN THE EPEP?}

  • EPEP shall discuss statement on post-mining land use potential for various types of disturbed land (inter alia, pit, waste dumps, tailing-impounding structures and infrastructure sites) and extend to the completion of the commitments in the rehabilitation of the disturbed land in a technically, socially and environmentally competent manner. The program shall be based on practical and achievable options and demonstrated practice. Finally, the program shall include implementation schedules, system of environmental compliance guarantees, monitoring, reporting and cost provisions. Where proposed practices are unproven, search program to prove the impact control and rehabilitation technology shall be required.
  • MGB Form No. 16-2 is the outline for the preparation of EPEP.

{/slide}

{slide=WHAT IS AN ANNUAL ENVIRONMENTAL PROTECTION AND ENHANCEMENT PROGRAM (AEPEP)?}

  • AEPEP refers to a yearly environmental management work plans base on the approved environmental protection and enhancement strategy. This must be submitted to concerned MGB Regional Office at least thirty (30) calendar days prior to the beginning of every calendar year effectively implement the approved EPEP.

{/slide}

{slide=WHAT SHALL BE DISCUSSED AND INCLUDED IN THE ANNUAL ENVIRONMENTAL PROTECTION AND ENHANCEMENT PROGRAM (AEPEP)?}

  • AEPEP shall include discussion on , but shall not be limited to , exploration, development, utilization, rehabilitation, regeneration, revegetation and reforestation of mineralized areas, slope stabilization of mined-out areas, waste dumps (acid mine drainage control)’ Tailing-covered areas, aquaculture, watershed development and water conversation and socioeconomic development.
  • MGB Form 16-3 is the outline for the preparation of AEPEP.

{/slide}

{slide=WHAT IS THE MINIMUM FINANCIAL REQUIREMENT FOR AEPEP?}

  • A Contractor/Permit Holder shall allocate for its annual environment-related expense a percentage based on AEPEP which may approximate a minimum of three to five percent (3-5%) of its direct mining and milling cost depending on the environment/geologic condition, nature and scale of operation and technology employed.

{/slide}

{slide=WHAT IS A CONTINGENT LIABILITY AND REHABILITATION FUND (CLRF)}

  • CLRF is an environmental guarantee fund mechanism to ensure just and timely compensation for damages and progressive and sustainable rehabilitation for any adverse effect a mining operation or activity may cause.
  • The CLRF shall be in the form of the Mine Rehabilitation Fund and the Mine Waste and Tailing Fess as stipulated in the Mining Act and shall be administered by the CLRF Steering Committee.

{/slide}

{slide=WHERE WILL THE FUND FOR THE IMPLEMENTATION EPEP COME FROM?}

  • A Mine Rehabilitation Fund (MRF) shall be established and maintained by each operation Contractor/Permit Holder as a reasonable environmental deposit to ensure availability of dunds for the satisfactory compliance with the commitments and performance of the activities stipulated in the EPEP/AEPEP during specific project phase. The MRF shall be deposited as a Trust Fund in a Government depository bank and shall be used for physical and social rehabilitation of areas and communities effected by mining activities and for research on the social, technical and preventive aspects of rehabilitation.

    The MRF shall be in two forms, namely:

(a)

Monitoring Trust Fund (MTF). This Fund shall be initiated by the Contractor/Permit Holder and shall be deposited in a mutually acceptable Government depository bank for the exclusive use in the monitoring program approved by the MRF Committee.

The MTF shall be in cash and in an amount to be determined by the MRF Committee which shall not be less than the amount of Fifty Thousand Pesos (P50,000.00) to cover maintenance and other operating budget for the transportation and travel expenses, cost of laboratory analysis, cost of supplies and materials, cost of communication services, cost of consultancy work and other reasonable expenses incurred by the monitoring team.

Authorization for the disbursement from the MTF shall only be given by the designated representatives of both the MRF Committee and the Contractor/Permit Holder. Replenishment of this amount shall be done monthly to correspond to the expenses incurred by the monitoring team for the month.

(b)

Rehabilitation Cash Fund (RCF). The Contractor/Permit Holder shall set up a RCF for a designated amount to ensure compliance with the approved rehabilitation activities and schedules for specific mining project phase, including research programs as defined in the EPEP/AEPEP. It shall be equivalent to ten percent (10%) of the total amount needed to implement the EPEP or Five Million Pesos (P5,000,000.00), whichever is lower. It shall be deposited as a Trust Fund in a mutually agreed Government depository bank in four (4) equal quarterly deposits within fifteen (15) calendars days from the beginning of each quarter of the first year following the approval of the EPEP.

 

In the event of withdrawals from RCF, the Contractor shall annually replenish the RCF so as to maintain the minimum required amount.


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{slide=PROCEDURAL FLOW FOR THE REVIEW/EVALUATION OF ENVIRONMENTAL PROTECTION AND ENHANCEMENT PROGRAM (EPEP)}

 


{/slide}

{slide=EPEP/AEPEP IS MENTIONED IN THE FOLLOWING SECTIONS OF DAO 96-40}

  • Section 5c & 5ad – Definition of Terms
  • Section 30.e – Declaration of Mining Project Feasibility Study
  • Section 35a4 & 35b6 – Mandatory Requirements for Mineral Agreement Application
  • Section 39u – Terms and Condition of Mineral Agreement
  • Section 48e – Issuance of Special Mines Permit
  • Section 53a6 – Filling of FTAA Applications/Mandatory Requirements
  • Section 56w – Terms and Condition of FTAA
  • Section 74e – Mandatory Requirement for Quarry or Commercial/Industrial Sand Gravel or Government Gratuitous Permit Application
  • Section 80.a8 and 80.a7 – Specific Terms and Conditions of a Quarry or Commercial/Industrial Sand and Gravel or Government Gratuitous Permit
  • Section 82d – Mandatory Requirements for Guano Permit Application
  • Section 87g – Specific Terms and Conditions of a Guano Permit
  • Section 98e – Renewal of Quarry/Commercial or Industrial Sand and Gravel/Guano/Gemstone Gathering Permit
  • Section 110h – Application for Mineral Processing Permit/Mandatory Requirements
  • Section 169 – Environmental Protection and Enhancement Program (EPEP)
  • Section 170 – Processing and Approval of the EPEP
  • Section 171 – Annual Environmental Protection and Enhancement Program (AEPEP)
  • Section 172 – Penalties
  • Section 174 – Environmental Monitoring and Audit
  • Section 178 – EPEP in Relation to ECC
  • Section 181 – Mine Rehabilitation Fund
  • Section 182 – The Mine Rehabilitation Fund Committee
  • Section 186 – Disbursement from the MRF
  • Section 193 – The Contingent Liability and Rehabilitation Fund Steering Committee
  • Section 196 – The Technical Working Group
  • Section 197 – Contingent Liability and Rehabilitation Steering Committee Administrative Fund

For more information, email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it or call telephone numbers (63) 86 826 5256 / 86 826 1058

DENR-MGB Regional Office No. 13, Km. 2 National Highway, Surigao City

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