MEMORANDUM

January 27, 2016

For: R. B. SAVELLA Ref:

Cc: Code: 23 - 505

Rehabilitation of Naga Mindanao

- Malangas 69kV Transmission
Line

We re-transmit the letter from NGCP dated October 13, 2015 regarding the Rehabilitation of
Naga Mindanao-Malangas 69kV Transmission Line.

Ms. Mae Roselle L. Curiano, NGCP Principal Specialist – Corporate Affairs Department
followed-up through telephone conversation our response on the letter regarding the above
subject.

We suggest that wewill directly inquire and clarify the matter to NGCP Head Office for
further information and clarification affiliation

For your information and reference.

Affiliation

DBL/GLR E. L. Achay
 MEMORANDUM

October 17, 2016

For: C. M. MAGSOMBOL Ref:

Cc: R. G. Taganas, Jr. Code:

R. F. Atilano, Jr.
Safety Findings on the Wire Rope
of the Hoist at the Boom area and
the Corroded Beam/Column
foundations at the MCY loading
point

We would like to inform the Management regarding the safety findings observed on the wire
rope of the hoist at the boom area and the corroded beam/column foundation at the MCY
loading point. Based from our latest inspection dated October 14, 2016, we found out that the
wire rope scratched/hit on the galvanized iron sheet during ascending and descending
operation of the boom. Although the results of our inspection on the wire rope are within its
safety operational limit, the continuous friction of the wire rope to the galvanized sheet will
lead to premature deterioration of the wire rope. With regard to the corroded beam/column
foundations at the loading point, we observed that most of the beams appeared to be rusted
and slightly damaged.

In this regard, the HSSE section highly recommended cutting the portion of the GI sheet that
caused friction on the wire rope during ascending/descending operations at the boom area and
conduct regular application of gear coat to avoid early deterioration of the aforementioned
item. We would also like to request the COG-Malangas Maintenance Section to conduct
thorough evaluation on how to reinforce the corroded beam/column foundations at the MCY
loading point and provide mitigating measures to prevent it from early corrosion.

For your information and reference.

DBL/GLR P. C. delos Reyes

December 5, 2016

Engr. Cesar B. Ramirez

Project Operations-OIC

PNOC EC
Km.9, DiplahanZamboangaSibugay

Sub: Declining the contract (Supply and Installation of Front Windshield forToyota
Hilux XFV 662 – 2002 Model)

Dear Sir,

This is to inform your good office that JC Autoworxx formally declining the contract (Supply
and Installation of Front Windshield forToyota Hilux XFV 662 – 2002 Model).

After several weeks of waiting from our supplier of windshields in Cebu City, they informed
us that the windshield that we’ve been asking from them for the Toyota Hilux - 2002 model
is no longer available.

JC Autoworxx feels sorry to decline this contract and apologize for the inconvenience we’ve
made.

We appreciate your efforts for considering JC Autoworxx.

Sincerely,

Jorman J. Constantino

Proprietor/Owner
 MEMORANDUM

December 19, 2016

To: B. C. Baniqued Ref:

Thru: E. L. Achay

Cc: R. B. SAVELLA Code:

M. C. MENDOZA
Request to Award the Contract
for the Supply and Installation of
Front Windshield for Toyota
Hilux XFV 662- 2002 Model to the
2nd Lowest and Complying
Bidder

We would like to request the Procurement Section to award the contract for the Supply
andInstallation of Front Windshield for Toyota Hilux XFV 662– 2002 Model to the 2nd
lowest and complying bidder. This is in connection to JC Autoworxx’s letter declining the
contract for the Supply and Installation of Front Windshield for Toyota Hilux XFV 662 –
2002 Model (see attached letter).

For your information and reference.

P. C. delos Reyes

Attach.
 MEMORANDUM

March 22, 2017

To: E. L.Achay Ref:

Cc: S. H. Jala, Jr. Code:

MSSC
Sparked on the Insulator
Suspension observed at the
69kVA Electrical Substation
behind the Power House area
located at Km.9 Industrial Site

We would like to inform the Management regarding the reported sparked on the insulator
suspension observed by the Roving Security on duty Mr. Enosencio J. Cordova at the 69
kVA Electrical Substation behind the Power House area located at Km.9, Industrial Site on
March 10, 2017 at around 4:00 in the morning. As a background, SG E. J. Cordova was doing
roving inspection near the Power House and Main Warehouse at Km.9 Industrial site. It was
raining during that time when he actuallyobserved the sparked on the insulator suspension at
the 69kVA Electrical Substation. The MSSC Head Guard Mr. Mark A. R. Daulong submitted
a Spot Report informing the COG-Malangas Staff regarding the incident on March 21, 2017.
The HSSE Industrial Safety Inspectors headed by Engr. German L. Reyes accompanied by
MSSC Head Guard immediately conducted inspection and assessment regarding the reported
sparked on the insulator suspension at the 69kVA Electrical Substation. Based on our
assessment, the possible cause of the sparked on the insulator suspension was the loosen
splicing of the suspension or the corrosion of the wires due to moist, heat and acid rain.

In this regard, the HSSE sectionhighly recommended that the Maintenance Section must
conduct Preventive Maintenance Services (PMS) on the 69kVA Electrical Substation. We
would also like to request the COG-Malangas Maintenance Section to conduct thorough
evaluation andprovide mitigating measures to preventrecurrence of incident.

For your information and reference.

DBL/GLR P. C. delos Reyes

 MEMORANDUM

April 20, 2017

For: R. B. SAVELLA Ref:

Thru: R. G. Taganas, Jr.

Cc: J. M. Foronda Code:

C. B. Ramirez
E. L. Achay
Surface Fire Drill Training

We would like to request Management’s approval for the Surface Fire Drill Training activity
which will be held on April 25, 2017 at ILB Mine 1 Industrial site to be facilitated by the
Bureau of Fire and Protection (BFP) of Diplahan to be attended by the PNOC EC employees
together with the Maximum Security Services Corporation (MSSC) and Manpower Services.

Attached is the summary of the proposed expenses to be incurred for the aforementioned
activity with the approved budget of Php16,725.00 which will be charged under Cost Center
123000 and Charex505001.

For your information and approval.

DBL/ABP P. C. delos Reyes

Approved by:

_______________
R. B. SAVELLA

Attach
 MEMORANDUM

May 6, 2017

To: J. H. Magpantay Ref:

Cc: R. G. Taganas, Jr. Code:

R. F. Atilano, Jr.
Unsafe Condition of the Access
Road and other Facilities at the
PNOC EC Malangas Coal
Terminal Area

We would like to inform the Management regarding the unsafe condition observed on the
access road and facilities at the PNOC EC Malangas Coal Terminal area due to the
improvement/widening of the roads implemented by the Department of Public Works and
Highways (DPWH).The project was implemented last January 26, 2016. Based on site
inspection, we noticed that the distance between the shouldering and the cut/sloping of the
road widening improvement project of Malangas Port area is only two (2) meters away from
theaccess road going to the Malangas Coal Yard area with a slope angle of more or less
80°.Heavy equipment such as Loader, Dump Truck, Back Hoe and Wing Van were passing
this road. Most of the times were haulers delivering coal product from different SSCM areas.
We’ve also observed that the ground condition of the cut/slope portion of the widening road
wasunstable due to the back filling materials and this situation could possibly put in danger
the facilities of the Company such as the Access Road, Scale House and Light Houselocated
at the top portion of the aforementioned road widening project.

In this regard, the COG-Malangas HSSE section seek an assistance from Head Office
Engineering and Planning Department to send an expert or a Civil Engineer to conduct
thorough evaluation and plan a mitigating measures to prevent soil erosion and possible
destruction of the access road and other facilities located at Malangas Coal Terminal
especially during the comingrainy season.

For your information and reference.

GLR / DBL P. C. delos Reyes

Attach
 MEMORANDUM

July 28, 2017

For: C. M. MAGSOMBOL Ref:

Cc: R. G. Taganas, Jr. Code:

J. H. Magpantay
Request for Lifting Suspension of
Naraja SSCM Operation

This refers to a memorandum seeking approval for the lifting of suspension of Naraja’s
SSCMP wherein some issues and concern need to be enlightened.

1. There were no interventions from the DOE and LGU with respect to the suspension of
Naraja’s SSCM relative to the accident.

2. Only PNOC EC issued the temporary suspension of Naraja’soperation upon knowing

that the victim died a couple of days after the accident.(attached letter)

3. PNOC EC Safety personnel conducted inspection of the area and recommend that the
suspension order of Naraja’s SSCMP must be lifted hence the concern mine area was
already abandoned and properly sealed.

For your information and reference.

C. B. Ramirez
 MEMORANDUM

July 29, 2017

For: R. B. SAVELLA Ref:

Thru: J. M. Foronda

Cc: Code:

Purchase of Materials for the

Nissan Urvan State (Mine Rescue)
with Plate No. NQI 988

We would like to request Management’s approval for the payment of purchase materials for
the Nissan Urvan State with Plate No. (NQI 988) the emergency service vehicle of COG-
Malangas Project.

As a background, this emergency service vehicle was utilized during travel to Zamboanga
City to facilitate the submission of water samples to EMB Region-IX, Zamboanga City since
2016 before the Ford Ranger with Plate No. PLQ 475 arrived at the COG-Malangas project
site. Based from the traveling distance or mileage, this vehicle is due for PMS already.

Based on the attached quotations during pre-canvass, the total price for the purchase materials
is Three Thousand Nine Hundred Forty Five and 00/100 pesos (Php3,945.00) which will be
charged under Cost Center 1030-123000 and Charex 527001.

For your information and approval.

E. L. Achay

Approved by:

_______________

R. B. SAVELLA

Attach
 MEMORANDUM

September 5, 2017

For: R. B. SAVELLA Ref:

Thru: J. M. Foronda

Cc: Code:

AirconditionServices for the Ford

Ranger with Plate No. PLQ 475

We would like to request Management’s approval for the payment of aircondition services
for the Ford Ranger with Plate No. (PLQ 475) the service utility vehicle of HSSE COG-
Malangas Project.

As a background, this service utility vehicle was utilized during long trips, (fetch and ferry
PNOC EC personnel and VIP’s at Pagadian City Airport) and travel to Zamboanga City to
facilitate the submission of water samples to EMB Region-IX, Zamboanga City since 2016.
The vehicle experienced warm temperature especially at the back seat area as an indication
that the aircondition of the vehicle requires servicing already.

Based on the attached quotations during pre-canvass, the total price for the aircondition
services is Four Thousand Five Hundred and 00/100 pesos (Php4,500.00) which will be
charged under Cost Center 1030-123000 and Charex 527101.

For your information and approval.

E. L. Achay

Approved by:

_______________
R. B. SAVELLA

Attach
 MEMORANDUM

September 6, 2017

For: R. B. SAVELLA Ref:

Thru: J. M. Foronda

Cc: Code:

Aircondition Services for the

Nissan Navara with Plate No.
ZRM 283

We would like to request Management’s approval for the payment of aircondition services
for the Nissan Navara with Plate No. (ZRM 283) the service utility vehicle of Admin COG-
Malangas Project.

As a background, this service utility vehicle was utilized during fetch and ferrying PNOC EC
personnel within the project area. The vehicle experienced warm temperature especially at
the back seat area as an indication that the aircondition of the vehicle requires servicing
already.

Based on the attached quotations during pre-canvass, the total price for the aircondition
services is Four Thousand Five Hundred and 00/100 pesos (Php4,500.00) which will be
charged under Cost Center 1030-123000 and Charex 527101.

For your information and approval.

DBL E. L. Achay

Approved by:

_______________
R. B. SAVELLA

Attach
 MEMORANDUM

September 12, 2017

For: R. B. SAVELLA Ref:

Thru: J. M. Foronda

Cc: Code:

Change Tires Four (4) pieces and

Wheel alignment Services for the
Ford Ranger with Plate No. PLQ
475

We would like to request Management’s approval for the payment of change tires four (4)
pieces and wheel alignment services for the Ford Ranger with Plate No. (PLQ 475) the
service utility vehicle of HSSE COG-Malangas Project.

To ensure the safety of the personnel on board and to maintain the good condition of the
vehicle, the COG-HSSE Section highly recommended the immediate change of tires four (4)
pieces and wheel alignment of the vehicle due to the worn out andexperienced uneven
deterioration of tires especially at the front side of the vehicle cause by frequent long trip
travel.

Based on the attached quotations during pre-canvass, the total price for the change tires and
wheel alignment services is OneThousand Six Hundredand 00/100 pesos (Php1,600.00)
which will be charged under Cost Center 1030-123000 and Charex 527101.

For your information and approval.

DBL E. L. Achay

Approved by:

_______________
R. B. SAVELLA

Attach
 MEMORANDUM

September 29, 2017

For: R. B. SAVELLA Ref:

Thru: R. G. Taganas, Jr.

Cc: J. M. Foronda Code:

Worn outTires of the Isuzu

Crosswind with Plate No. ZKY
827

We would like to inform the Management regarding the safety findings observed on the worn
out tires of the service vehicle unitIsuzu Crosswind with Plate No. (ZKY 827) the service
vehicle of Admin COG-Malangas.

As a background, due to broke down of CEDD’s Field Geologist service vehicle, the
aforementioned unit was temporarily assigned to CEDD and regularly utilized by the CEDD
Field Geologists during the conduct of monitoring and inspection of COC 41 infill drilling
operations at Sta. Barbara area and location of proposed drill holes at COC 185 and 186.
Sometimes, it was also utilized during long trip travel, fetch and ferrying PNOC EC
personnel coming from Head Office and also utilized in the project area for expediting the
necessary tasks for its current state of operations. Based from the latestsafety findings, the
tires of the service vehicle unit has been worn out and the tread becomes thinner as an
indication of frequent usage in the project.

To ensure the safety of the personnel on board and to maintain the performance and
efficiency of the vehicle, the COG-HSSE Section highly recommend the immediate
replacement of four (4) pieces tires due to the worn out and experienced uneven deterioration
caused by frequent usage at the project siteand long trip travel.

For your information and approval.

PCR E. L. Achay

Approved by:

_______________
R. B. SAVELLA

Attach
 MEMORANDUM

October 11, 2017

For: R. B. SAVELLA Ref:

Thru: R. G. Taganas, Jr.

Cc: J. M. Foronda Code:

Safety Findings on the 4160KV

Powerline from Km.9 Power
House to Base Camp

We would like to inform the Management regarding the safety findings observed on the worn
out tires of the service vehicle unitIsuzu Crosswind with Plate No. (ZKY 827) the service
vehicle of Admin COG-Malangas.

As a background, due to broke down of CEDD’s Field Geologist service vehicle, the
aforementioned unit was temporarily assigned to CEDD and regularly utilized by the CEDD
Field Geologists during the conduct of monitoring and inspection of COC 41 infill drilling
operations at Sta. Barbara area and location of proposed drill holes at COC 185 and 186.
Sometimes, it was also utilized during long trip travel, fetch and ferrying PNOC EC
personnel coming from Head Office and also utilized in the project area for expediting the
necessary tasks for its current state of operations. Based from the latest safety findings, the
tires of the service vehicle unit has been worn out and the tread becomes thinner as an
indication of frequent usage in the project.

To ensure the safety of the personnel on board and to maintain the performance and
efficiency of the vehicle, the COG-HSSE Section highly recommend the immediate
replacement of four (4) pieces tires due to the worn out and experienced uneven deterioration
caused by frequent usage at the project siteand long trip travel.

For your information and approval.

PCR E. L. Achay

Approved by:

_______________
R. B. SAVELLA

Attach
 MEMORANDUM

October 11, 2017

For: R. B. SAVELLA Ref:

Thru: J. M. Foronda

Cc: R. G. Taganas, Jr. Code:

R. V. Oliquino
L. C. Dalloran
J. L. Pascua
Cash Purchase of Rare Brake
Hydrobox Assembly of Boom
Truck with Plate No. GME 867

We would like to request Management’s approval for the cash purchase of Rare Brake
Hydrobox Assembly for the Boom Truck with Plate No. (GME 867).

Immediate cash purchase of the aforementioned item is necessary for the vehicle in
mobilization/transportof the underground mine equipment and materials coming from ILB
Mine 1 to Km.9 Field Office. This vehicle will also be utilize in transporting construction
materials such as (hollow blocks, sand and gravel) from Mine 3 (LCP) to ILB Mine 1 for the
decommissioning activities.

Based on the attached quotations during pre-canvass, the total price for the Rare Brake
Hydrobox Assemblyis FourThousand Eight Hundredand 00/100 pesos (Php4,800.00) which
will be charged under Cost Center 1030-123000 and Charex 527001.

For your information and approval.

DBL E. L. Achay

Approved by:

_______________
R. B. SAVELLA

Attach
 MEMORANDUM

October 17, 2017

For: R. B. SAVELLA Ref:

Thru: E. L. Achay

Cc: J. M. Foronda Code:

R. G. Taganas, Jr.

Damaged Electrical Posts on the

4160 Volts Powerline at the Base
Camp Substation / Defective
3.7kW Submersible Pump at Base
Camp

We would like to inform the Management regarding the incident occurred involving the
damaged of electrical wires and posts hit by the huge (Bakan) tree last Sunday afternoon at
around 3:30 due to heavy rainfall and strong wind cause by the Typhoon Odette.These
electrical wires supplies current and connected from Km.9 Power House to Base Camp
Facilities. During that time, three (3) of the electrical posts were affected and destroyed by
the strong wind. The Post No.1 located behind the Basketball ring of the PNOC EC
Recreational Facilities and the Posts No.2 and No.3 were located near and at the Substation
area in front of the Base Camp Guard House. After the huge (Bakan) tree fell due to strong
wind, the tree hit the electrical wires that demolished the cross arm of the Post No.1 and
suddenly dragged the Posts No.2 and No.3 simultaneously.

In this regard, theCOG-HSSE section highly recommends the immediate repair and
replacement of the damaged posts near and at the Substation area to restore the electric power
supply at Base Camp Duplexes and other Facilities. We would also like to request the COG-
Malangas Maintenance Section to conduct clearing operations of the power lines from Km.9
Power House area to Base Camp and conduct thorough evaluation and provide mitigating
measures to prevent recurrence of incident. Furthermore, we recommend immediate
replacement of the 3.7kW submersible pump that got damaged last October 12, 2017 which is
necessary for the Base Camp Facilities and PNOC EC regular residence/occupants and
visitor’sconvenience.

For your information and reference.

DBL P. C. delos Reyes

Attach
 MEMORANDUM

October 20, 2017

For: R. B. SAVELLA Ref:

Thru: J. M. Foronda

Cc: Code:

Aircondition Services for the

Nissan Urvan (Mine Rescue) with
Plate No. NQI 988

We would like to request Management’s approval for the payment of aircondition services
for the Nissan Urvan (Mine Rescue) with Plate No. (NQI 988) the emergency service vehicle
of COG-Malangas Project.

As a background, the aforementioned service vehicle was utilized during travel to

Zamboanga City to facilitate the submission of water samples to EMB Region-IX,
Zamboanga City as an alternative vehicle since the Ford Ranger with Plate No. PLQ 475
experienced engine overheating. This vehicle was also utilized during long trips, (fetch and
ferrying PNOC EC personnel and VIP’s at Pagadian City Airport). The vehicle experienced
warm temperature especially at the back seat area as an indication that the aircondition of the
vehicle requires servicing already.

Based on the attached quotations during pre-canvass, the total price for the aircondition
services is Four Thousand Five Hundred and 00/100 pesos (Php4,500.00) which will be
charged under Cost Center 1030-123000 and Charex 527101.

For your information and approval.

E. L. Achay

Approved by:

_______________
R. B. SAVELLA

Attach
 MEMORANDUM

November 20, 2017

For: R. B. SAVELLA Ref:

Thru: J. M. Foronda

Cc: Code:

Purchase of Materials for the

Ford Ranger with Plate No. PLQ
475

We would like to request Management’s approval for the payment of purchase materials for
the Ford Ranger with Plate No. (PLQ 475) the service vehicle of HSSE COG-Malangas
Project.

As a background, this service utility vehicle was utilized during long trips, (fetch and ferrying
PNOC EC personnel and VIP’s at Pagadian City Airport) and travel to Zamboanga City to
facilitate the submission of water samples to EMB Region-IX, Zamboanga City since 2016.
The vehicle experienced overheating sometimes in the mid-month of September. Since then,
the HSSE made inquiries to the Project Development Department (PDD) personnel together
with their mechanic regarding the condition of the vehicle. They recommended for the
conduct of preventive maintenance services and replace all the necessary materials to stir up
the good condition of the aforementioned vehicle.

Based on the attached quotations during pre-canvass, the total price for the purchase materials
is Two Thousand Fifty and 00/100 pesos (Php2,050.00) which will be charged under Cost
Center 1030-123000 and Charex 527001.

For your information and approval.

E. L. Achay

Approved by:

_______________

R. B. SAVELLA

Attach
 MEMORANDUM

December 6, 2018

To: J. L. Pascua Ref:

Thru: C. B. Ramirez

Cc: J. M. Foronda Code:

F. D. Galang
Safety Findings on the 16mm
Wire Rope of the Tadano Crane
located at Km. 9 Maintenance
Shop

We would like to inform the Management regarding the safety findings observed on the
16mm wire rope of the Tadano Crane located at the Km.9 Maintenance Shop. Below are the
lists of findings based from our inspection dated December 5, 2018.

 Broken two (2) wires on a different strand of the wire rope were detected
 Kinky deformation of the wire rope possibly caused by sudden release of a load
 Improper filing/unorganized loop of wire rope at the hoist sheave or drum of the
Tadano Crane
 Lack of lubrication and excessive exposed to heat or moisture

In this regard, the HSSE section highly recommend to immediately discard the Tadano Crane
wire rope and replacement should be done immediately to prevent from any untoward
incident/accident and damage of property that might happened for continuous utilizing the
wire rope in lifting activities. Furthermore, to prevent the new wire rope from premature
deterioration and damage, we recommended the following:

 Ensure proper handling and installation of the wire rope on the Crane sheave or drum
to prevent from twisting
 Regular lubrication to prevent from corrosion
 Provide shed for the Crane to prevent from excessive exposure to sunlight or heat and
rain
 Prevent from sudden release of load to avoid distortion of the wire rope structure

For your information and reference.

DBL P. C. delos Reyes

Attach