(ter), or the concession is terminated by the competent officer who has the right to revoke the concession on reasonable grounds that the concessionaire has not complied with the notifications or conditions as stated in the concession, the timber andforest products for which royalty has been not paid, regardlessofwhethertheyarein or outside the area of the concession, shallbelongtothegovernment. The concessionaire is entitled to the ownership of the timber or forest products after he is able to substantiate that he has logged out or collected forest products in a lawful manner or within thenotifications and conditions as stated in the concession, priortothedate that the right of the concession shall come to an end.

Incases wherethe concessionaire wishes to substantiate in accordance with thefirst paragraph, he shall make an application of substantiation to the Minister within thirty days of the date of the receiptof the notice from the competent officer, who has notified according to theorderissued bytheMinisteror notified the logging ban in the concession under thefirst paragraphofSection68.(octiens),as the case maybe. Themethods of the application, the procedures of substantiation, the consideration and the order issued by the Minister shallbe inaccordancewiththe rules, procedures 36 and conditions as specified in the ministerial regulations.

In cases where the concessionaire is not satisfied with the order issued by the Minister, he shall have a right to
appeal in theCourt in the area where he has logged or collectedforestproducts in a lawful manner as specified in
thenotifications andconditions stated in the concession prior to the time when the right of the concession shall come
to an end. Thisappeal must be submitted within a period of sixty days from the date of the receipt of the order issued
by the Minister.

SECTION68.(quini), Incases where it is a logging concession that receives of the order issued from the Minister under Section 68. (bis), or where the right of logging has expired underSection68.(ter),the concessionaire shall stop all activities oflogging in the concession thereof, and stop moving any log from the log yard and calculating any log for royalty. The competent officer shall inspectthe conditions of logging and timber at the log yard andmakea report to submit to the Director-General without delay.Thesaidreport shall indicate the facts regarding the particular procedureof logging, the total amount and size of the timber, and shall give the opinions whether the concessionaire hasbeenlogged out according to the notifications and conditions as stated in the concession.

In cases where the result of the inspection under the first paragraph showsthat the concessionaire acted in contravention orfailed to comply within the notifications or conditions as stated in the concession, the official has the
right to revoke the concession or to terminate therightof logging concession under Section 68. (bis), or68. (ter),
37 without prejudice to the right of an official to revoke the concession, prior to effectivedate upon the date of the
right of logging concession comes to terminate.

The concessionaire who hassubstantiatedhimselfwith the Minister underSection68. (quater),that he has logged in a lawfulmanner withthe notifications and conditions stated intheconcession, prior to effective date uponthe date of theright of thelogging concession comes to terminate or the Court hasadjudication todoso, the Director-General shall have a writtennoticeto theconcessionaire for hauling or moving out ofthe timberthereinandhe may impose the rules,
methods, conditions and a specified period of time to be conducted by the concessionaire,if anyconcessionairedoes
notcomply therewith, he shall have non-right of such timber, and it shall belong to the State.

SECTION 68.(sexiens), In this regard, the concessionaire receiving the order issued underSection68. (bis), orthe
concessionaire whose license isterminated under Section 68. (ter), asfollows, shallhave the right to refund for the compensation for damage inaccordancewith the rules, procedures as prescribed under Section 68. (septies), 68.
(octiens), 68.(noveni), 68.(deni), and 68.(undeni):
(1) the concessionaire whose license is terminated, in its wholecompartments inaccordance with Section 68.(bis),
(1) or 68.(ter); and
(2) the concessionaire receiving the order issued in accordance with Section 68. (bis), (2) or (3), or the conces-
sionairewhoselicenseis terminated, in part, inaccordance with Section68. (ter), only for theconcessionaire who made
a formal request for expropriation oftheremaining ofits whole oftheconcessionto the official.

Incaseof the order issued under Section 68. (bis),or the logging concession is terminated under Section 68. (ter), the claim orthe payment of the compensation for damage or any othercompensation fordamage without prescribed under
this Section, he shall have no further right to exercise it.

SECTION 68.(septies), The compensationfordamageto the concessionaire who is entitled to receive according to the rules, viz:
(1)must depend on theactual damage to the concessionaire and inrespect only to, as follows:
(a) the expenditure of investment of the concessionaireforhislogging operation, such as: the cost ofheavy equipment,vehicles,implements andother instrumentsusedin andwhich have not yielded financial returns, shall be taken intoconsiderationof the depreciation values deducted froma periodofthe right concession of logging therein,thetotal
amount of timber or forest products and as well as other benefitsthat haveyielded financial returns during a period
of the time ofloggingoperation andthevalue of properties or things oftheremaining still have the benefits to the
concessionaire;
(b) the expenditure, which the concessionaire has investedfor his logging operation and which have notyielded
financial returns, shall be taken into consideration as notified in (a); and
(c) the attachment in accordance with the Protection of Employee Code, theconcessionaire shall make
severancepay for employeesinanycaseifthey are laid off.

The investment or the expenditures shall be taken into the consideration for yielding financial returns in accordancewith (a) and (b), shall not exceed the investment or the expenditure of a general principle business.

(2) the responsibility of the concessionaire with a thirdparty, who has an agreement in dealing with the logging
operation wheretheagreement has been contracted withthe concessionaire, shall be responded in any case by force
majeure in differentfrom those the Civil Procedure Code or an agreement between the third party and the concessionaire grounded accordingto the government has an order issued to vary or dissolve the logging concession, the saidagreement involved in the contract will not be compensated, nor with the benifits concessionaire expected in accordance with this Section;

(3) non-payment shall not pay compensation to the concessionaire any profit or any other benefit within suspected;
(4) in cases where the dissolution to extent that the concessionaire, shall yield the payment or property or profit
or any other compensation from the insurance oranyother compensation for damage, regard as, it is in a partofthe
compensation for damage in accordance with this Section.

In cases where any concessionaire has been made the expropriation for receiving the concession under Section 68.
(sixth), (2), the concessionaire shall be yielded thecompensationfordamage onlytheratio of such area therein,orthe
totalamount of timber or forest products hasbeencarried outtherefrom,inpart,ofarea of the determination of the
concession, whicheveris higher. Apart fromthereasonable groundsof the expiration, in part, ofareaof the concession
is made to the concessionaire notbeingabletoprocess to carry out his logging operation on the expropriation
therefor, thecompensation fordamage shallbeyielded the same asthecase of, in whole, of the determination of the
concession.

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