WHEREAS, under Section 1 of P.D. 1442, the Government through the Department of Energy (DOE) is mandated to exercise at all times direct supervision over the activities and operations of Geothermal Service Contractors (GSC).

WHEREAS, in order to effectively supervise and monitor the activities and operations of GSC, there is a need for the registration of sub-contract agreements entered into by and between the GSC and the sub-contractor.

NOW, THEREFORE, to effectively implement Section 1 of P.D. 1442, this circular is hereby issued to read as follows:

SECTION 1. All Geothermal Service Contractors are hereby required to register with the Department of Energy all existing sub-contract agreements not later than May 31, 1995.

SECTION 2. All future sub-contract agreements shall be registered with the DOE within one (1) month from its execution thereof.

SECTION 3. Failure on the part of the Geothermal Service Contractors to register sub-contracting agreements to the DOE shall be sufficient cause to disallow any claim for recovery of expenses incurred from such sub-contracting agreements.

SECTION 4. This Circular shall take effect immediately.

Adopted: 10 Apr. 1995

(SGD.) FRANCISCO L. VIRAY
Acting Secretary