REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF ENERGY
Energy Center, Rizal Drive, Bonifacio Global City
Taguig City

IN RE: DOE-ERDB Case No. 2019-02-0004

APPLICATION FOR COAL

TRADER UNDER DEPARTMENT
CIRCULAR No. DC2012-05-0006 OR
THE “GUIDELINES ON THE
ACCREDITATION OF COAL
TRADERS AND REGISTRATION OF
COAL END-USERS”

WHOOPS GAS CORPORATION ,

Applicant/Respondent
x----------------------------------------------x

ANSWER

Respondent, WHOOPS GAS CORPORATION, through its

president, , and the undersigned counsel and unto this Honorable
Office, respectfully submits this Answer and avers the following in
support thereof:

1. The Respondent admits that it was accredited as a coal

trader by the Department of Energy under WHOOPS

2. Respondent denies the allegations contained in the

ORDER dated 18 February 2019 sent by your Honorable Office for
reasons discussed hereunder:

DISCUSSION

3. By way of factual backdrop, sometime in 2012,

Respondent has decided to expand its business and venture into coal
trading. Thus, on 04 September 2012 Respondent applied for
accreditation as a coal trader and was issued one under CT-2012-09-

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033. On 04 September 2013, Respondent applied for a renewal of the
accreditation and was granted one on 14 January 2014 under CT-
2014-01-0101(R). On 09 July 2015, Respondent has applied for a
renewal of its accreditation and was granted one on 24 August 2015
under WHOOPS

4. Throughout all this time that respondent was accredited

as a coal trader, it has complied with all the obligations and
reportorial requirements that the Government, especially the
Department of Energy has required. This is especially true for the
three (3) percent Government Share which is required under Section
7.2 (e) of Department Circular No. DC 2012-05-0006.

5. On 17 November 2017, Respondent has applied for the

renewal of its accreditation and has paid the application fee of three
thousand and five hundred pesos (PhP 3,500.00). On 02 October 2017,
the Department of Energy sent a letter1 requiring more documents
from Respondent and demanding that the latter settle its financial
obligations with the Department of Energy. Until compliance has
been met, the renewal of the accreditation of the Respondent was
deferred. Thus, the Respondent complied with all the requirements
that the Department of Energy required.

6. In 2017, while the Respondent was still engrossed in the

renewal of its accreditation, it was still sending the necessary
reportorial requirements for its sales of coal. This is especially true for
the Yellow Copies of Coal Transport Permit which the Respondent
has not failed to give.

7. Despite the submission of Yellow Copies of Coal

Transport Permit, the Department of Energy has not required the
Respondent to cease from its coal transactions. The Department was
had complete knowledge that the accreditation under WHOOPS was
valid only until 24 August 2016 and yet it did not require the
respondent to stop all of its coal transactions.

8. Sometime in December of 2018, the Respondent has not

yet received any word from the Department regarding its application
for the renewal of its accreditation. Thus on 17 December 2018, it filed
for another renewal of its accreditation and has paid for the
application fee of three thousand and hundred pesos (PhP 3,500.00).
Again, Respondent was still sending the Yellow Copies of Coal

1 A copy of the letter dated 02 October 2017 is attached hereto as an Annex

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Transport Permit and yet the Department has not required the
Respondent to stop its coal transactions.

9. It is these set of events that led the Respondent to believe

in good faith that its actions were in accordance with the Department
of Energy’s policies since the Respondent has been forthcoming with
its coal transactions. The unique circumstances of repeatedly
applying for the renewal of accreditation and selling coal without
being required to stop by the Department of Energy gave the
impression to the Respondents that it was not violating any law.

10. The fact that the Respondent has not even attempted to
conceal its coal transactions in 2017 and 2018 clearly shows that there
was no malicious or fraudulent intent in its actions. It shows that the
Respondent was and is acting in good faith when it deals with the
Department of Energy.

PRAYER

WHEREFORE, it is respectfully prayed for your Honorable

Office –

a) To DISMISS the instant charge against the Respondent for lack

of merit, and
b) Other reliefs just and equitable are likewise prayed for.

Respectfully submitted.

Pasig City for Taguig City, 08 April 2019.

For: