1 Sec. 121. Adoption o f Polluter Pays Principle. - Polluters shall pay for the damage 2 they cause to the environment. The amount of damages shall be determined by 3 accredited independent consultants, to be chosen from a list and agreed upon by both 4 the mining proponent and by the Council. 5 Sec. 122. Tailings im poundm ent - Tailings impoundments shall be built away 6 from critical watershed drainage areas. Furthermore, it shall be ensured that 7 impoundments will not endanger critical watershed areas or low-lying valleys in the 8 event of accidents under abnormal conditions. Tailing impoundments and dams shall 9 meet the international standards for large dams. 10 Sec. 123. Dumping o f waste. - Dumping of waste or tailings in any body of water 11 shall be prohibited. Provisions on the Clean Water Act and Clean Air Act shall be strictly 12 implemented. 13 Sec. 124. Use o f toxic chemicals and methods. - At all times, mining contractors 14 shall use chemicals or reagents which would result to the least environmental and social 15 destruction. The use of mercury and cyanide for the extraction of gold, silver and other 16 minerals shall be prohibited. The use of blow torching to separate gold from amalgam 17 shall likewise be prohibited. 18 19 Sec. 125. Preservation o f topsoil. - The removed topsoil, or the more productive horizons of the soil shall be preserved for other uses. 20 Sec. 126. Priority use fo r water. - The National Water Resources Board shall 21 investigate any existing use of water resources in the area whether or not covered by 22 any existing water permit or registration. Upon determination of any existing use, the 23 applicant shall procure the consent of all water users and/or the free prior and informed 24 consent of ICCs/IPs with or without water permits within the same groundwater 25 network or any downstream users of water resources. In all instances, priority shall be 26 given to use of water for domestic, municipal, and agricultural purposes. I f potential 27 negative impact on other water users is identified, the water permit shall not be 28 granted. For water resources within the ancestral domain of indigenous peoples, no 29 water permit shall be granted by the National Water Resources Board without the free 30 and prior informed consent of indigenous peoples. 31 Sec. 127. Recycling o f water resources. - Water used in mining operations shall 32 be recycled. Mining contractors shall be required to provide for the methods or 33 equipment for the recycling or reuse of water. 34 treated accordingly to meet national standards. Released water must at least be 35 equivalent in quality to the baseline water quality. 36 Released contaminated water shall be Sec. 128. Water user fee. - A water user fee that reflects the value of water to 39

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