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TO:	The Secretary of Natural Resources The President and Chairman, Philippine National Oil Company The Commissioner of the Budget

The provisions of Letter of Instructions No. 339 dated November 20, 1975, to the contrary notwithstanding, the Bureau of Mines shall, pursuant to Presidential Decree No. 463, administer coal resources exploration and development and undertake active exploration and development of coal deposits in selected areas and/or in government reservations. To this end the Bureau of Mines shall, among others:

	(a)	supervise, direct, and operate the government's drilling exploration, surface and underground mine development, and eventual exploitation of coal resources;
	(b)	initiate and undertake underground and surface development of coal mines, after which, the same may be turned over to private operators who shall reimburse the Bureau of Mines for all expenses incurred thereon in the manner and within a specified period to be determined by the Secretary of Natural Resources as recommended by the Director of Mines; and
	(c)	render to the President periodic progress re ports on the above matters, including problems arising therefrom and incident to the implementation of this Letter of Instructions.

The Bureau of Mines shall be provided with such funds as may be necessary to cover the operational expenses to carry out this Letter of Instructions, including the payment  of  allowances  and honoraria of experts who will be involved in the planning, programming and execution of its various coal projects.

Done in the City of Manila, this 16th day of March, in the year of Our Lord, nineteen hundred and seventy-six.