Coal operations in the Philippines is governed by Presidential Decree 972, or the Coal Development Act of the Philippines, as amended by PD 1174, providing for the active and systematic exploration, exploitation, development, disposition and utilization of Philippine coal resources. These decrees introduced The Philippine Coal Service Contract System and established the appropriate guidelines for coal operations. Under these guidelines, the Philippines retains ownership of the government through the coal contract system, is assigned the right to explore, develop, exploit and market the coal.

There are three (3) types of coal contracts:
(pursuant to PD 972 dated 27 July 1976 as amended by PD 1174 dated 27 July 1977)

1. Coal Operating Contract (COC) for Exploration.
2. Coal Operating Contract for Development / Production
3. Small Scale Coal Mining Permit (SSCMP)