By Lenie Lectura – July 17, 2019
SEMIRARA Mining and Power Corp.
(SMPC) is asking the Department of Energy (DOE) to amend the conditions cited
in lifting of the cease-and-desist order (CDO) earlier imposed on the Consunji-led
firm’s coal trading operations.
SMPC earlier requested
reconsideration with the DOE to hold in abeyance the implementation of its June
4 order pending resolution of the alleged violation and in order not to
interrupt SMPC’s ongoing coal trading activities and operations, and renege on
its contractual commitments and obligations to its coal buyers.
The DOE, in a letter dated July 12,
granted SMPC’s request to hold in abeyance the CDO, subject to four
conditions: The order shall take effect for 30 days or until the DOE
resolves SMPC’s verified answer, whichever comes earlier; SMPC shall continue
its coal trading activities only on existing coal supply contracts/agreements;
SMPC shall not enter into new coal supply contracts/agreements; and SMPC shall
faithfully comply with all its commitments and obligations under Coal Trader
Accreditation No. CT-208-12-0351(R).
“SMPC submits today a rejoinder to
DOE with a prayer to amend the conditions, which might limit SMPC’s compliance
to its commitment per DOE-approved Work Program,” SMPC said on Tuesday.
SMPC was earlier told by the DOE to
submit its verified answer allegedly for illegal coal trading operation in
Pulupandan Port, Pulupandan, Negros Occidental.
SMPC supplied Semirara coal to a
buyer on May 23, 2019, for a trial shipment of 4,768.73 metric tons in order to
tap additional markets on the basis of a representation by the buyer that it
has accordingly submitted and applied for a Coal Accreditation Certificate with
the DOE on April 5, 2019.
Under the rules, DOE will issue the
Certificate of Accreditation and/or Registration or reject the application
within 15 working days from receipt thereof.
Unfortunately, on shipment date, the
buyer was unable to submit the said accreditation as it was still pending with
the DOE. Thereafter, SMPC discontinued its supply and any trading with said
buyer.
SMPC said there is an ongoing
discussion with the DOE to have this matter resolved immediately.
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