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ople v torres

ople v torres

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Published by CLark Barcelon
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Categories:Types, Business/Law
Published by: CLark Barcelon on Nov 27, 2013
Copyright:Attribution Non-commercial


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FACTS: The petitions challenge the constitutionality of RA No.

8180 entitled “An Act Deregulating the Downstream Oil Industry and For Other Purposes.” The deregulation process has two phases: (a) the transition phase (Aug. 12, 1996) and the (b) full deregulation phase (Feb. 8, 1997 through EO No. 372). Sec. 15 of RA No. 8180 constitutes an undue delegation of legislative power to the President and the Sec. of Energy because it does not provide a determinate or determinable standard to guide the Executive Branch in determining when to implement the full deregulation of the downstream oil industry, and the law does not provide any specific standard to determine when the prices of crude oil in the world market are considered to be declining nor when the exchange rate of the peso to the US dollar is considered stable. Issue: w/n the provisions of RA No. 8180 and EO No. 372 is unconstitutional. sub-issue: (a) w/n sec. 15 violates the constitutional prohibition on undue delegation of power, and (b) w/n the Executive misapplied RA No. 8180 when it considered the depletion of the OPSF fund as factor in fully deregulating the downstream oil industry in Feb. 1997. HELD/RULING: (a) NO. Sec. 15 can hurdle both the completeness test and the sufficient standard test. RA No. 8180 provided that the full deregulation will start at the end of March 1997 regardless of the occurrence of any event. Thus, the law is complete on the question of the final date of full deregulation. Sec. 15 lays down the standard to guide the judgment of the President—he is to time it as far as practicable when the prices of crude oil and petroleum in the world market are declining and when the exchange rate of the peso to the US dollar is considered stable. Webster defines “practicable” as meaning possible to practice or perform, “decline” as meaning to take a downward direction, and “stable” as meaning firmly established. (b) YES. Sec. 15 did not mention the depletion of the OPSF fund as a factor to be given weight by the Executive before ordering full deregulation. The Executive department failed to follow faithfully the standards set by RA No. 8180 when it co0nsidered the extraneous factor of depletion of the OPSF fund. The Executive is bereft of any right to alter either by subtraction or addition the standards set in RA No. 8180 for it has no powers to make laws.

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