DOE ready to defend asset-surrender rule in court

The Department of Energy (DOE) is prepared to fight to keep the asset-surrender provision, as the Consunji Group floated the possibility of challenging the rule in court.

“Yes, we are,” Energy Secretary Sharon Garin told reporters recently when asked about the agency’s readiness to defend its joint administrative order with the Department of Environment and Natural Resources.

The energy chief said the planned bidding for the coal mine site has been delayed because the government has been “studying the legal and commercial and actually the energy security impact of this.”

“We’ve been studying it properly on how to reconcile all the concerns,” she said.

Garin even acknowledged that those who are interested in the highly prized Semirara mine site “are not happy with us, whether you’re with the existing or the prospective.”

The official reiterated that the rules are meant to give everyone “a fair chance,” while maximizing the benefits for the country.

Under the joint policy, existing contract holders and operators that eye joining in competitive auctions for harnessing natural resources will be required to surrender their operational assets to the implementing agency once the contract expires.

Last week, Isidro Consunji, chair and president of DMCI Holdings, said the provision would “probably be challenged in court.”

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“If it affects us adversely, we’ll probably have to challenge it,” he told reporters.

Garin said that the auction may suffer a new delay “if the court tells us to stop.”

DMCI Holdings’ subsidiary Semirara Mining and Power Corp. said the delays and issues in the coal bidding have been affecting its operations and investment decisions.

Its contract with the government will lapse in July 2027.