FIRST DIVISION

DIDIPIO EARTH-SAVERS MULTI-

PURPOSE ASSOCIATION,
INCORPORATED (DESAMA),
MANUEL BUTIC, CESAR
MARIANO, LAURO ABANCE, BEN
TAYABAN, ANTONIO DINGCOG,
TEDDY B. KIMAYONG, ALONZO
ANANAYO, ANTONIO MALAN-UYA,
JOSE BAHAG, ANDRES INLAB,
RUFINO LICYAYO, ALFREDO
CULHI, CATALILNA INABYUHAN,
GUAY DUMMANG, GINA PULIDO,
EDWIN ANSIBEY, CORAZON
SICUAN, LOPEZ DUMULAG,
FREDDIE AYDINON, VILMA JOSE,
FLORENTINA MADDAWAT, LINDA
DINGCOG, ELMER SICUAN, GARY
ANSIBEY, JIMMY MADDAWAT,
JIMMY GUAY, ALFREDO CUT-ING,
ANGELINA UDAN, OSCAR INLAB,
JUANITA CUT-ING, ALBERT
PINKIHAN, CECILIA TAYABAN,
CRISTA BINWAK, PEDRO DUGAY,
SR., EDUARDO ANANAYO, ROBIN
INLAB, JR., LORENZO PULIDO,
TOMAS BINWAG, EVELYN BUYA,
JAIME DINGCOG, DINAOAN CUT-
ING, PEDRO DONATO, MYRNA
GUAY, FLORA ANSIBEY, GRACE
DINAMLING, EDUARDO MENCIAS,
ROSENDA JACOB, SIONITA
DINGCOG, GLORIA JACOB,
MAIMA GUAY, RODRIGO
PAGGADUT, MARINA ANSIBEY,
TOLENTINO INLAB, RUBEN
DULNUAN, GERONIMO LICYAYO,
LEONCIO CUMTI, MARY
DULNUAN, FELISA BALANBAN,
MYRNA DUYAN, MARY MALAN-
G.R. N!. "#$%%&
Present:
PANGANIBAN, C.J.
Chairperson,
YNARES-SANTIAGO,
AUSTRIA-MARTINEZ,
CALLEO, SR!, an"
C#ICO-NAZARIO, JJ!
UYA, PRUDENCIO ANSIBEY,
GUILLERMO GUAY, MARGARITA
CULHI, ALADIN ANSIBEY, PABLO
DUYAN, PEDRO PUGUON, JULIAN
INLAB, JOSEPH NACULON,
ROGER BAJITA, DINAON GUAY,
JAIME ANANAYO, MARY ANSIBEY,
LINA ANANAYO, MAURA
DUYAPAT, ARTEMEO ANANAYO,
MARY BABLING, NORA ANSIBEY,
DAVID DULNUAN, AVELINO
PUGUON, LUCAS GUMAWI, LUISA
ABBAC, CATHRIN GUWAY,
CLARITA TAYABAN, FLORA
JAVERA, RANDY SICOAN, FELIZA
PUTAKI, CORAZON P. DULNUAN,
NENA D. BULLONG, ERMELYN
GUWAY, GILBERT BUTALE,
JOSEPH B. BULLONG, FRANCISCO
PATNAAN, JR., SHERWIN DUGAY,
TIRSO GULLINGAY, BENEDICT T.
NABALLIN, RAMON PUN-ADWAN,
ALFONSO DULNUAN, CARMEN D.
BUTALE, LOLITA ANSIBEY,
ABRAHAM DULNUAN, ARLYNDA
BUTALE, MODESTO A. ANSIBEY,
EDUARDO LUGAY, ANTONIO
HUMIWAT, ALFREDO PUMIHIC,
MIKE TINO, TONY CABARROGUIS,
BASILIO TAMLIWOK, JR., NESTOR
TANGID, ALEJO TUGUINAY,
BENITO LORENZO, RUDY
BAHIWAG, ANALIZA BUTALE,
NALLEM LUBYOC, JOSEPH
DUHAYON, RAFAEL CAMPOL,
MANUEL PUMALO, DELFIN
AGALOOS, PABLO CAYANGA,
PERFECTO SISON, ELIAS
NATAMA, LITO PUMALO,
SEVERINA DUGAY, GABRIEL
PAKAYAO, JEOFFREY SINDAP,
FELI TICUAN, MARIANO S.
MADDELA, MENZI TICAWA,
DOMINGA DUGAY, JOE BOLINEY,
JASON ASANG, TOMMY
ATENYAYO, ALEJO AGMALIW,
DIZON AGMALIW, EDDIE ATOS,
FELIMON BLANCO, DARRIL
DIGOY, LUCAS BUAY, ARTEMIO
BRAZIL, NICANOR MODI, LUIS
REDULFIN, NESTOR JUSTINO,
JAIME CUMILA, BENEDICT
GUINID, EDITHA ANIN, INOH-
YABAN BANDAO, LUIS BAYWONG,
FELIPE DUHALNGON, PETER
BENNEL, JOSEPH T. BUNGGALAN,
JIMMY B. KIMAYONG, HENRY
PUGUON, PEDRO BUHONG,
BUGAN NADIAHAN, SR., MARIA
EDEN ORLINO, SPC, PERLA
VISSORO, '() BISHOP RAMON
VILLENA,
Petitioners,
- versus -
ELISEA GOZUN, *( +,- .'/'.*01 '2
SECRETARY !3 0+, DEPARTMENT
OF ENVIRONMENT '() NATURAL
RESOURCES (DENR), HORACIO
RAMOS, *( +*2 .'/'.*01 '2 D*-,.0!- !3
0+, M*(,2 '() G,!2.*,(.,2 B4-,'4
(MGB-DENR), ALBERTO ROMULO,
*( +*2 .'/'.*01 '2 0+, E5,.40*6,
S,.-,0'-1 !3 0+, O33*., !3 0+, P-,2*),(0,
RICHARD N. FERRER, *( +*2
.'/'.*01 '2 A.0*(7 U(),-2,.-,0'-1 !3
0+, O33*., !3 0+, P-,2*),(0, IAN
HEATH SANDERCOCK, *( +*2
.'/'.*01 '2 P-,2*),(0 !3 CLIMA-
ARIMCO MINING CORPORATION.
Respon"ents! Pro$%&'ate":
Mar(h )*, +**,
-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --
. E C I S I O N
C#ICO-NAZARIO, J!:
This petition /or prohi0ition an" mandamus %n"er R%&e ,1 o/ the
R%&es o/ Co%rt assai&s the (onstit%tiona&it2 o/ Rep%0&i( A(t No! 345+
other6ise 7no6n as the Phi&ippine Minin' A(t o/ 8441, to'ether 6ith the
I$p&e$entin' R%&es an" Re'%&ations iss%e" p%rs%ant thereto, .epart$ent o/
En9iron$ent an" Nat%ra& Reso%r(es :.ENR; A"$inistrati9e Or"er No! 4,-
5*, s! 844, :.AO 4,-5*; an" o/ the <inan(ia& an" Te(hni(a& Assistan(e
A'ree$ent :<TAA; entere" into on +* %ne 8445 02 the Rep%0&i( o/ the
Phi&ippines an" Ari$(o Minin' Corporation :AMC;, a (orporation
esta0&ishe" %n"er the &a6s o/ A%stra&ia an" o6ne" 02 its nationa&s!
!
On +1 %&2 84=3, then Presi"ent Cora>on C! A?%ino pro$%&'ate"
E-e(%ti9e Or"er No! +34 6hi(h a%thori>e" the .ENR Se(retar2 to a((ept,
(onsi"er an" e9a&%ate proposa&s /ro$ /orei'n-o6ne" (orporations or /orei'n
in9estors /or (ontra(ts o/ a'ree$ents in9o&9in' either te(hni(a& or /inan(ia&
assistan(e /or &ar'e-s(a&e e-p&oration, "e9e&op$ent, an" %ti&i>ation o/
$inera&s, 6hi(h, %pon appropriate re(o$$en"ation o/ the Se(retar2, the
Presi"ent $a2 e-e(%te 6ith the /orei'n proponent!
On ) Mar(h 8441, then Presi"ent <i"e& @! Ra$os si'ne" into &a6 Rep!
A(t No! 345+ entit&e", AAn A(t Instit%tin' A Ne6 S2ste$ o/ Minera&
Reso%r(es E-p&oration, .e9e&op$ent, Uti&i>ation an" Conser9ation,B
other6ise 7no6n as the Phi&ippine Minin' A(t o/ 8441!

On 81 A%'%st 8441, then .ENR Se(retar2 @i(tor O! Ra$os iss%e"
.ENR A"$inistrati9e Or"er :.AO; No! +), Series o/ 8441, (ontainin' the
i$p&e$entin' '%i"e&ines o/ Rep! A(t No! 345+! This 6as soon s%perse"e"
02 .AO No! 4,-5*, s! 844,, 6hi(h too7 e//e(t on +) an%ar2 8443 a/ter "%e
p%0&i(ation!
Pre9io%s&2, ho6e9er, or spe(i/i(a&&2 on +* %ne 8445, Presi"ent
Ra$os e-e(%te" an <TAA 6ith AMC o9er a tota& &an" area o/ )3,***
he(tares (o9erin' the pro9in(es o/ N%e9a @i>(a2a an" C%irino! In(&%"e" in
this area is Baran'a2 .ipi"io, Dasi0%, N%e9a @i>(a2a!
S%0se?%ent&2, AMC (onso&i"ate" 6ith C&i$a- Minin' Li$ite" to
/or$ a sin'&e (o$pan2 that no6 'oes %n"er the ne6 na$e o/ C&i$a--
Ari$(o Minin' Corporation :CAMC;, the (ontro&&in' 44E o/ sto(7ho&"ers
o/ 6hi(h are A%stra&ian nationa&s!
On 3 Septe$0er +**8, (o%nse&s /or petitioners /i&e" a "e$an" &etter
a""resse" to then .ENR Se(retar2 #eherson A&9are>, /or the (an(e&&ation o/
the CAMC <TAA /or the pri$ar2 reason that Rep! A(t No! 345+ an" its
I$p&e$entin' R%&es an" Re'%&ations .AO 4,-5* are %n(onstit%tiona&! The
O//i(e o/ the E-e(%ti9e Se(retar2 6as a&so /%rnishe" a (op2 o/ the sai"
&etter! There 0ein' no response to 0oth &etters, another &etter o/ the sa$e
(ontent "ate" 83 %ne +**+ 6as sent to Presi"ent G&oria Ma(apa'a& Arro2o!
This &etter 6as in"orse" to the .ENR Se(retar2 an" e9ent%a&&2 re/erre" to
the Pane& o/ Ar0itrators o/ the Mines an" Geos(ien(es B%rea% :MGB;,
Re'iona& O//i(e No! *+, T%'%e'arao, Ca'a2an, /or /%rther a(tion!
On 8+ No9e$0er +**+, (o%nse&s /or petitioners re(ei9e" a &etter /ro$
the Pane& o/ Ar0itrators o/ the MGB re?%irin' the petitioners to (o$p&2 6ith
the R%&es o/ the Pane& o/ Ar0itrators 0e/ore the &etter $a2 0e a(te" %pon!
Yet a'ain, (o%nse&s /or petitioners sent Presi"ent Arro2o another
"e$an" &etter "ate" = No9e$0er +**+! Sai" &etter 6as a'ain /or6ar"e" to
the .ENR Se(retar2 6ho re/erre" the sa$e to the MGB, C%e>on Cit2!
In a &etter "ate" 84 <e0r%ar2 +**), the MGB reFe(te" the "e$an" o/
(o%nse&s /or petitioners /or the (an(e&&ation o/ the CAMC <TAA!
Petitioners th%s /i&e" the present petition /or prohi0ition an"
mandamus, 6ith a pra2er /or a te$porar2 restrainin' or"er! The2 pra2 that
the Co%rt iss%e an or"er:
8! enFoinin' p%0&i( respon"ents /ro$ a(tin' on an2 app&i(ation /or
<TAAG
+! "e(&arin' %n(onstit%tiona& the Phi&ippine Minin' A(t o/ 8441
an" its I$p&e$entin' R%&es an" Re'%&ationsG
)! (an(e&in' the <TAA iss%e" to CAMC!
In their $e$oran"%$ petitioners pose the /o&&o6in' iss%es:
I
H#ET#ER OR NOT REPUBLIC ACT NO! 345+ AN. T#E CAMC
<TAA ARE @OI. BECAUSE T#EY ALLOH T#E UNUST AN.
UNLAH<UL TADING O< PROPERTY HIT#OUT PAYMENT O<
UST COMPENSATION , IN @IOLATION O< SECTION 4, ARTICLE
III O< T#E CONSTITUTION!
II
H#ET#ER OR NOT T#E MINING ACT AN. ITS IMPLEMENTING
RULES AN. REGULATIONS ARE @OI. AN.
UNCONSTITUTIONAL <OR SANCTIONING AN
UNCONSTITUTIONAL A.MINISTRATI@E PROCESS O<
.ETERMINING UST COMPENSATION!
III
H#ET#ER OR NOT T#E STATE, T#ROUG# REPUBLIC ACT NO!
345+ AN. T#E CAMC <TAA, AB.ICATE. ITS PRIMARY
RESPONSIBILITY TO T#E <ULL CONTROL AN. SUPER@ISION
O@ER NATURAL RESOURCES!
I@
H#ET#ER OR NOT T#E RESPON.ENTSI INTERPRETATION O<
T#E ROLE O< H#OLLY <OREIGN AN. <OREIGN-OHNE.
CORPORATIONS IN T#EIR IN@OL@EMENT IN MINING
ENTERPRISES, @IOLATES PARAGRAP# 5, SECTION +, ARTICLE
JII O< T#E CONSTITUTION!
@
H#ET#ER OR NOT T#E 84=3 CONSTITUTION PRO#IBITS
SER@ICE CONTRACTS!
8
Be/ore 'oin' to the s%0stanti9e iss%es, the pro(e"%ra& ?%estion raise"
02 p%0&i( respon"ents sha&& /irst 0e "ea&t 6ith! P%0&i( respon"ents are o/ the
9ie6 that petitionersI e$inent "o$ain (&ai$ is not ripe /or a"F%"i(ation as
the2 /ai& to a&&e'e that CAMC has a(t%a&&2 ta7en their properties nor "o the2
a&&e'e that their propert2 ri'hts ha9e 0een en"an'ere" or are in "an'er on
a((o%nt o/ CAMCIs <TAA! In e//e(t, p%0&i( respon"ents insist that the iss%e
o/ e$inent "o$ain is not a F%sti(ia0&e (ontro9ers2 6hi(h this Co%rt (an ta7e
(o'ni>an(e o/!
A F%sti(ia0&e (ontro9ers2 is "e/ine" as a "e/inite an" (on(rete "isp%te
to%(hin' on the &e'a& re&ations o/ parties ha9in' a"9erse &e'a& interests 6hi(h
$a2 0e reso&9e" 02 a (o%rt o/ &a6 thro%'h the app&i(ation o/ a &a6!
+
Th%s,
(o%rts ha9e no F%"i(ia& po6er to re9ie6 (ases in9o&9in' po&iti(a& ?%estions
an" as a r%&e, 6i&& "esist /ro$ ta7in' (o'ni>an(e o/ spe(%&ati9e or
h2potheti(a& (ases, a"9isor2 opinions an" (ases that ha9e 0e(o$e $oot!
)
The Constit%tion is ?%ite e-p&i(it on this $atter!
5
It pro9i"es that F%"i(ia&
8
Rollo, pp! 141-14,!
+
Velarde v. Social Justice Society, G!R! No! 814)13, += Apri& +**5, 5+= SCRA +=), +48!
)
P#ILIPPINE POLITICAL LAH, Isa'ani Cr%>, p! +) :8441 e"!;!
5
Arti(&e @III, Se(tion 8!--- %"i(ia& po6er in(&%"es the "%t2 o/ the (o%rts o/ F%sti(e to
sett&e a(t%a& (ontro9ersies in9o&9in' ri'hts 6hi(h are &e'a&&2 "e$an"a0&e an" en/or(ea0&e, an" to
"eter$ine 6hether or not there has 0een a 'ra9e a0%se o/ "is(retion a$o%ntin' to &a(7 or e-(ess o/
po6er in(&%"es the "%t2 o/ the (o%rts o/ F%sti(e to sett&e a(t%a& (ontro9ersies
in9o&9in' ri'hts 6hi(h are &e'a&&2 "e$an"a0&e an" en/or(ea0&e! P%rs%ant to
this (onstit%tiona& $an"ate, (o%rts, thro%'h the po6er o/ F%"i(ia& re9ie6, are
to entertain on&2 rea& "isp%tes 0et6een (on/&i(tin' parties thro%'h the
app&i(ation o/ &a6! <or the (o%rts to e-er(ise the po6er o/ F%"i(ia& re9ie6,
the /o&&o6in' $%st 0e e-tant :8; there $%st 0e an a(t%a& (ase (a&&in' /or the
e-er(ise o/ F%"i(ia& po6erG :+; the ?%estion $%st 0e ripe /or a"F%"i(ationG
an" :); the person (ha&&en'in' $%st ha9e the Astan"in'!B
1
An a(t%a& (ase or (ontro9ers2 in9o&9es a (on/&i(t o/ &e'a& ri'hts, an
assertion o/ opposite &e'a& (&ai$s, s%s(epti0&e o/ F%"i(ia& reso&%tion as
"istin'%ishe" /ro$ a h2potheti(a& or a0stra(t "i//eren(e or "isp%te!
,
There
$%st 0e a (ontrariet2 o/ &e'a& ri'hts that (an 0e interprete" an" en/or(e" on
the 0asis o/ e-istin' &a6 an" F%rispr%"en(e!

C&ose&2 re&ate" to the se(on" re?%isite is that the ?%estion $%st 0e ripe
/or a"F%"i(ation! A ?%estion is (onsi"ere" ripe /or a"F%"i(ation 6hen the a(t
0ein' (ha&&en'e" has ha" a "ire(t a"9erse e//e(t on the in"i9i"%a&
(ha&&en'in' it!
3
The thir" re?%isite is &e'a& stan"in' or locus standi! It is "e/ine" as a
persona& or s%0stantia& interest in the (ase s%(h that the part2 has s%staine"
or 6i&& s%stain "ire(t inF%r2 as a res%&t o/ the 'o9ern$enta& a(t that is 0ein'
(ha&&en'e", a&&e'in' $ore than a 'enera&i>e" 'rie9an(e!
=
The 'ist o/ the
?%estion o/ stan"in' is 6hether a part2 a&&e'es As%(h persona& sta7e in the
o%t(o$e o/ the (ontro9ers2 as to ass%re that (on(rete a"9erseness 6hi(h
sharpens the presentation o/ iss%es %pon 6hi(h the (o%rt "epen"s /or
F%ris"i(tion on the part o/ an2 0ran(h or instr%$enta&it2 o/ the Go9ern$ent!
1
Guingona, Jr. v. Court of Appeals, )15 Phi&! 581, 5+1 :844=;!
,
Board of Optometry v. Hon. Colet, )+= Phi&! 88=3, 8+*, :844,;!
3
ntregrated Bar of t!e "!ilippines v. #amora, )4+ Phi&! ,8=, ,)+-,)) :+***;!
=
$umlao v. Commission on %lections, G!R! No! L-1++51, ++ an%ar2 84=*, 41 SCRA )4+, 5*+!
i&&%$ination o/ "i//i(%&t (onstit%tiona& ?%estions!B
4
Un&ess a person is
inF%rio%s&2 a//e(te" in an2 o/ his (onstit%tiona& ri'hts 02 the operation o/
stat%te or or"inan(e, he has no stan"in'!
8*
In the instant (ase, there e-ists a &i9e (ontro9ers2 in9o&9in' a (&ash o/
&e'a& ri'hts as Rep! A(t No! 345+ has 0een ena(te", .AO 4,-5* has 0een
appro9e" an" an <TAAs ha9e 0een entere" into! The <TAA ho&"ers ha9e
a&rea"2 0een operatin' in 9ario%s pro9in(es o/ the (o%ntr2! A$on' the$ is
CAMC 6hi(h operates in the pro9in(es o/ N%e9a @i>(a2a an" C%irino
6here n%$ero%s in"i9i"%a&s in(&%"in' the petitioners are i$peri&e" o/ 0ein'
o%ste" /ro$ their &an"ho&"in's in 9ie6 o/ the CAMC <TAA! In &i'ht o/ this,
the (o%rt (annot a6ait the a"9erse (onse?%en(es o/ the &a6 in or"er to
(onsi"er the (ontro9ers2 a(t%a& an" ripe /or F%"i(ia& inter9ention!
88
A(t%a&
e9i(tion o/ the &an" o6ners an" o((%pants nee" not happen /or this Co%rt to
inter9ene! As he&" in "imentel, Jr. v. Hon. Aguirre
8+
&
B2 the $ere ena(t$ent o/ the ?%estione" &a6 or the appro9a& o/ the
(ha&&en'e" a(t, the "isp%te is sai" to ha9e ripene" into a F%"i(ia&
(ontro9ers2 e9en 6itho%t an2 other o9ert a(t! In"ee", e9en a sin'%&ar
9io&ation o/ the Constit%tion an"Kor the &a6 is eno%'h to a6a7en F%"i(ia&
"%t2!
8)
Petitioners e$0ra(e 9ario%s se'$ents o/ the so(iet2! These in(&%"e
.i"ipio Earth-Sa9ersI M%&ti-P%rpose Asso(iation, In(!, an or'ani>ation o/
/ar$ers an" in"i'eno%s peop&es or'ani>e" %n"er Phi&ippine &a6s,
representin' a (o$$%nit2 a(t%a&&2 a//e(te" 02 the $inin' a(ti9ities o/
CAMC, as 6e&& as other resi"ents o/ areas a//e(te" 02 the $inin' a(ti9ities
o/ CAMC! These petitioners ha9e the stan"in' to raise the (onstit%tiona&it2
4
ntegrated Bar of t!e "!ilippines v. #amora, s%pra note 3, p! ,))!
8*
%rmita'(alate Hotel and (otel Operators Association, nc. v. City (ayor of (anila, 8+=
Phi&! 53), 5=*-5=8 :84,3;!
88
Cru) v. Secretary of %nvironment * +atural Resources, G!R! No! 8)1)=1, , .e(e$0er
+***, )53 SCRA 8+=, +1,!
8+
)48 Phi&! =5 :+***;!
8)
I"!, p! 8*3!
o/ the ?%estione" <TAA as the2 a&&e'e a persona& an" s%0stantia& inF%r2!
85
The2 assert that the2 are a//e(te" 02 the $inin' a(ti9ities o/ CAMC!
Li7e6ise, the2 are %n"er i$$inent threat o/ 0ein' "isp&a(e" /ro$ their
&an"ho&"in's as a res%&t o/ the i$p&e$entation o/ the ?%estione" <TAA!
The2 th%s $eet the appropriate (ase re?%ire$ent as the2 assert an interest
a"9erse to that o/ respon"ents 6ho, on the other han", (&ai$ the 9a&i"it2 o/
the assai&e" stat%te an" the <TAA o/ CAMC!
Besi"es, the trans(en"enta& i$portan(e o/ the iss%es raise" an" the
$a'nit%"e o/ the p%0&i( interest in9o&9e" 6i&& ha9e a 0earin' on the
(o%ntr2Is e(ono$2 6hi(h is to a 'reater e-tent "epen"ent %pon the $inin'
in"%str2! A&so a//e(te" 02 the reso&%tion o/ this (ase are the proprietar2
ri'hts o/ n%$ero%s resi"ents in the $inin' (ontra(t areas as 6e&& as the
so(ia& e-isten(e o/ in"i'eno%s peop&es 6hi(h are threatene"! Base" on these
(onsi"erations, this Co%rt "ee$s it proper to ta7e (o'ni>an(e o/ the instant
petition!
#a9in' reso&9e" the pro(e"%ra& ?%estion, the (onstit%tiona&it2 o/ the
&a6 %n"er atta(7 $%st 0e a""resse" s?%are&2!
F*-20 S4820'(0*6, I224,9 V':*)*01 !3 S,.0*!( $; !3 R,/. A.0 N!. $<=& '()
DAO <;-=>
In see7in' to n%&&i/2 Rep! A(t No! 345+ an" its i$p&e$entin' r%&es
.AO 4,-5* as %n(onstit%tiona&, petitioners set their si'ht on Se(tion 3, o/
Rep! A(t No! 345+ an" Se(tion 8*3 o/ .AO 4,-5* 6hi(h the2 (&ai$ a&&o6
the %n&a6/%& an" %nF%st Ata7in'B o/ pri9ate propert2 /or pri9ate p%rpose in
(ontra"i(tion 6ith Se(tion 4, Arti(&e III o/ the 84=3 Constit%tion $an"atin'
that pri9ate propert2 sha&& not 0e ta7en e-(ept /or p%0&i( %se an" the
85
,a Bugal'B-,aan .ri/al Association, nc. v. Ramos, G!R! No! 8+3==+, +3 an%ar2 +**5,
5+8 SCRA 85=, 834!
(orrespon"in' pa2$ent o/ F%st (o$pensation! The2 assert that p%0&i(
respon"ent .ENR, thro%'h the Minin' A(t an" its I$p&e$entin' R%&es an"
Re'%&ations, (annot, on its o6n, per$it entr2 into a pri9ate propert2 an"
a&&o6 ta7in' o/ &an" 6itho%t pa2$ent o/ F%st (o$pensation!
Interpretin' Se(tion 3, o/ Rep! A(t No! 345+ an" Se(tion 8*3 o/ .AO
4,-5*, F%-tapose" 6ith the (on(ept o/ ta7in' o/ propert2 /or p%rposes o/
e$inent "o$ain in the (ase o/ Repu/lic v. Vda. de Castellvi,
01
petitioners
assert that there is in"ee" a Ata7in'B %pon entr2 into pri9ate &an"s an"
(on(ession areas!
Repu/lic v. Vda. de Castellvi "e/ines Ata7in'B %n"er the (on(ept o/
e$inent "o$ain as enterin' %pon pri9ate propert2 /or $ore than a
$o$entar2 perio", an", %n"er the 6arrant or (o&or o/ &e'a& a%thorit2,
"e9otin' it to a p%0&i( %se, or other6ise in/or$a&&2 appropriatin' or
inF%rio%s&2 a//e(tin' it in s%(h a 6a2 as to s%0stantia&&2 o%st the o6ner an"
"epri9e hi$ o/ a&& 0ene/i(ia& enFo2$ent thereo/!
<ro$ the (riteria set /orth in the (ite" (ase, petitioners (&ai$ that the
entr2 into a pri9ate propert2 02 CAMC, p%rs%ant to its <TAA, is /or $ore
than a $o$entar2 perio", i.e., /or +1 2ears, an" rene6a0&e /or another +1
2earsG that the entr2 into the propert2 is %n"er the 6arrant or (o&or o/ &e'a&
a%thorit2 p%rs%ant to the <TAA e-e(%te" 0et6een the 'o9ern$ent an"
CAMCG an" that the entr2 s%0stantia&&2 o%sts the o6ner or possessor an"
"epri9es hi$ o/ a&& 0ene/i(ia& enFo2$ent o/ the propert2! These /a(ts,
a((or"in' to the petitioners, a$o%nt to ta7in'! As s%(h, petitioners ?%estion
the e-er(ise o/ the po6er o/ e$inent "o$ain as %n6arrante" 0e(a%se
81
813 Phi&! )+4, )55 :8435;! It "e/ines Ata7in'B %n"er the (on(ept o/ e$inent "o$ain as
enterin' %pon pri9ate propert2 /or $ore than a $o$entar2 perio", an", %n"er the 6arrant or (o&or
o/ &e'a& a%thorit2, "e9otin' it to a p%0&i( %se, or other6ise in/or$a&&2 appropriatin' or inF%rio%s&2
a//e(tin' it in s%(h a 6a2 as s%0stantia&&2 to o%st the o6ner an" "epri9e hi$ o/ a&& 0ene/i(ia&
enFo2$ent thereo/!
respon"ents /ai&e" to pro9e that the entr2 into pri9ate propert2 is "e9ote" /or
p%0&i( %se!
Petitioners a&so stress that e9en 6itho%t the "o(trine in the Castellvi
(ase, the nat%re o/ the $inin' a(ti9it2, the e-tent o/ the &an" area (o9ere" 02
the CAMC <TAA an" the 9ario%s ri'hts 'rante" to the proponent or the
<TAA ho&"er, s%(h as :a; the ri'ht o/ possession o/ the E-p&oration Contra(t
Area, 6ith /%&& ri'ht o/ in'ress an" e'ress an" the ri'ht to o((%p2 the sa$eG
:0; the ri'ht not to 0e pre9ente" /ro$ entr2 into pri9ate &an"s 02 s%r/a(e
o6ners an"Kor o((%pants thereo/ 6hen prospe(tin', e-p&orin' an" e-p&oitin'
/or $inera&s thereinG :(; the ri'ht to enFo2 ease$ent ri'hts, the %se o/ ti$0er,
6ater an" other nat%ra& reso%r(es in the E-p&oration Contra(t AreaG :"; the
ri'ht o/ possession o/ the Minin' Area, 6ith /%&& ri'ht o/ in'ress an" e'ress
an" the ri'ht to o((%p2 the sa$eG an" :e; the ri'ht to enFo2 ease$ent ri'hts,
6ater an" other nat%ra& reso%r(es in the Minin' Area, res%&t in a ta7in' o/
pri9ate propert2!
Petitioners ?%i(7&2 a"" that e9en ass%$in' arguendo that there is no
a0so&%te, ph2si(a& ta7in', at the 9er2 &east, Se(tion 3, esta0&ishes a &e'a&
ease$ent %pon the s%r/a(e o6ners, o((%pants an" (on(essionaires o/ a
$inin' (ontra(t area s%//i(ient to "epri9e the$ o/ enFo2$ent an" %se o/ the
propert2 an" that s%(h 0%r"en i$pose" 02 the &e'a& ease$ent /a&&s 6ithin the
p%r9ie6 o/ e$inent "o$ain!
To /%rther 0o&ster their (&ai$ that the &e'a& ease$ent esta0&ishe" is
e?%i9a&ent to ta7in', petitioners (ite the (ase o/ +ational "o2er Corporation
v. Gutierre)
03
ho&"in' that the ease$ent o/ ri'ht-o/-6a2 i$pose" a'ainst the
%se o/ the &an" /or an in"e/inite perio" is a ta7in' %n"er the po6er o/
e$inent "o$ain!
8,
G!R! No! ,**33, 8= an%ar2 8448, 84) SCRA 8, 3!
Tra9ersin' petitionersI assertion, p%0&i( respon"ents ar'%e that
Se(tion 3, is not a ta7in' pro9ision 0%t a 9a&i" e-er(ise o/ the po&i(e po6er
an" 02 9irt%e o/ 6hi(h, the state $a2 pres(ri0e re'%&ations to pro$ote the
hea&th, $ora&s, pea(e, e"%(ation, 'oo" or"er, sa/et2 an" 'enera& 6e&/are o/
the peop&e! This 'o9ern$ent re'%&ation in9o&9es the a"F%st$ent o/ ri'hts /or
the p%0&i( 'oo" an" that this a"F%st$ent (%rtai&s so$e potentia& /or the %se
or e(ono$i( e-p&oitation o/ pri9ate propert2! P%0&i( respon"ents (on(&%"e"
that Ato re?%ire (o$pensation in a&& s%(h (ir(%$stan(es 6o%&" (o$pe& the
'o9ern$ent to re'%&ate 02 p%r(hase!B
P%0&i( respon"ents are in(&ine" to 0e&ie9e that 02 enterin' pri9ate
&an"s an" (on(ession areas, <TAA ho&"ers "o not o%st the o6ners thereo/
nor "epri9e the$ o/ a&& 0ene/i(ia& enFo2$ent o/ their properties as the sai"
entr2 $ere&2 esta0&ishes a &e'a& ease$ent %pon s%r/a(e o6ners, o((%pants
an" (on(essionaires o/ a $inin' (ontra(t area!
T'?*(7 *( E@*(,(0 D!@'*( D*20*(74*2+,) 3-!@ R,74:'0*!( *( P!:*.,
P!A,-
The po6er o/ e$inent "o$ain is the inherent ri'ht o/ the state :an" o/
those entities to 6hi(h the po6er has 0een &a6/%&&2 "e&e'ate"; to (on"e$n
pri9ate propert2 to p%0&i( %se %pon pa2$ent o/ F%st (o$pensation!
83
On the
other han", po&i(e po6er is the po6er o/ the state to pro$ote p%0&i( 6e&/are
02 restrainin' an" re'%&atin' the %se o/ &i0ert2 an" propert2!
8=
A&tho%'h
0oth po&i(e po6er an" the po6er o/ e$inent "o$ain ha9e the 'enera&
6e&/are /or their o0Fe(t, an" re(ent tren"s sho6 a $in'&in'
84
o/ the t6o 6ith
83
Ro/ern $evelopment Corporation v. 4uitain, )3) Phi&! 33), 34+-34) :8444;!
8=
5.S. v. .ori/io, 81 Phi&! =1, 4) :848*;G Ru/i v. .!e "rovincial Board of (indoro, )4 Phi&!
,,*, 3*= :8484;!
84
Association of Small ,ando2ners of t!e "!ilippines, nc. v. Secretary of Agrarian
Reform, G!R! No! 3=35+, 85 %&2 84=4, 831 SCRA )5), )38!
the &atter 0ein' %se" as an i$p&e$ent o/ the /or$er, there are sti&& tra"itiona&
"istin(tions 0et6een the t6o!
Propert2 (on"e$ne" %n"er po&i(e po6er is %s%a&&2 no-io%s or
inten"e" /or a no-io%s p%rposeG hen(e, no (o$pensation sha&& 0e pai"!
+*
Li7e6ise, in the e-er(ise o/ po&i(e po6er, propert2 ri'hts o/ pri9ate
in"i9i"%a&s are s%0Fe(te" to restraints an" 0%r"ens in or"er to se(%re the
'enera& (o$/ort, hea&th, an" prosperit2 o/ the state! Th%s, an or"inan(e
prohi0itin' theaters /ro$ se&&in' ti(7ets in e-(ess o/ their seatin' (apa(it2
:6hi(h 6o%&" res%&t in the "i$in%tion o/ pro/its o/ the theater-o6ners; 6as
%phe&" 9a&i" as this 6o%&" pro$ote the (o$/ort, (on9enien(e an" sa/et2 o/
the (%sto$ers!
+8
In 5.S. v. .ori/io,
66
the (o%rt %phe&" the pro9isions o/ A(t
No! 8853, a stat%te re'%&atin' the s&a%'hter o/ (ara0ao /or the p%rpose o/
(onser9in' an a"e?%ate s%pp&2 o/ "ra/t ani$a&s, as a 9a&i" e-er(ise o/ po&i(e
po6er, not6ithstan"in' the propert2 ri'hts i$pair$ent that the or"inan(e
i$pose" on (att&e o6ners! A >onin' or"inan(e prohi0itin' the operation o/ a
&%$0er 2ar" 6ithin (ertain areas 6as assai&e" as %n(onstit%tiona& in that it
6as an in9asion o/ the propert2 ri'hts o/ the &%$0er 2ar" o6ners in "eople
v. de Gu)man.
67
The Co%rt nonethe&ess r%&e" that the re'%&ation 6as a 9a&i"
e-er(ise o/ po&i(e po6er! A si$i&ar r%&in' 6as arri9e" at in Seng 8ee S Co.
v. %arns!a2 and "iatt
69
6here an or"inan(e "i9i"e" the Cit2 o/ Mani&a into
in"%stria& an" resi"entia& areas!
A thoro%'h s(r%tin2 o/ the e-tant F%rispr%"en(e &ea"s to a (o'ent
"e"%(tion that 6here a propert2 interest is $ere&2 restri(te" 0e(a%se the
(ontin%e" %se thereo/ 6o%&" 0e inF%rio%s to p%0&i( 6e&/are, or 6here
propert2 is "estro2e" 0e(a%se its (ontin%e" e-isten(e 6o%&" 0e inF%rio%s to
+*
5.S. v. .ori/io, s%pra note 8=, p! )3*!
+8
"eople v. C!an, ,1 Phi&! ,88 :84)=;!
++
S%pra note 8=, p! 43!
+)
4* Phi&! 8)+ :8418;!
+5
1, Phi&! +*5 :84)8;!
p%0&i( interest, there is no (o$pensa0&e ta7in'!
+1
#o6e9er, 6hen a propert2
interest is appropriate" an" app&ie" to so$e p%0&i( p%rpose, there is
(o$pensa0&e ta7in'!
+,
A((or"in' to note" (onstit%tiona&ist, <r! oa?%in Bernas, S, in the
e-er(ise o/ its po&i(e po6er re'%&ation, the state restri(ts the %se o/ pri9ate
propert2, 0%t none o/ the propert2 interests in the 0%n"&e o/ ri'hts 6hi(h
(onstit%te o6nership is appropriate" /or %se 02 or /or the 0ene/it o/ the
p%0&i(!
+3
Use o/ the propert2 02 the o6ner 6as &i$ite", 0%t no aspe(t o/ the
propert2 is %se" 02 or /or the p%0&i(!
+=
The "epri9ation o/ %se (an in /a(t 0e
tota& an" it 6i&& not (onstit%te (o$pensa0&e ta7in' i/ no0o"2 e&se a(?%ires
%se o/ the propert2 or an2 interest therein!
+4

I/, ho6e9er, in the re'%&ation o/ the %se o/ the propert2, so$e0o"2
e&se a(?%ires the %se or interest thereo/, s%(h restri(tion (onstit%tes
(o$pensa0&e ta7in'! Th%s, in City Government of 4ue)on City v. %ricta,
)*
it
6as ar'%e" 02 the &o(a& 'o9ern$ent that an or"inan(e re?%irin' pri9ate
(e$eteries to reser9e ,E o/ their tota& areas /or the 0%ria& o/ pa%pers 6as a
9a&i" e-er(ise o/ the po&i(e po6er %n"er the 'enera& 6e&/are (&a%se! This
(o%rt "i" not a'ree in the (ontention, r%&in' that propert2 ta7en %n"er the
po&i(e po6er is so%'ht to 0e "estro2e" an" not, as in this (ase, to 0e "e9ote"
to a p%0&i( %se! It /%rther "e(&are" that the or"inan(e in ?%estion 6as
a(t%a&&2 a ta7in' o/ pri9ate propert2 6itho%t F%st (o$pensation o/ a (ertain
area /ro$ a pri9ate (e$eter2 to 0ene/it pa%pers 6ho are (har'es o/ the &o(a&
'o9ern$ent! Bein' an e-er(ise o/ e$inent "o$ain 6itho%t pro9ision /or the
+1
T#E 84=3 CONSTITUTION O< T#E REPUBLIC O< T#E P#ILIPPINES: A COMMENTARY,
Bernas, p! 5+*!
+,
I"!
+3
I"!, p! 5+8!
+=
I"!
+4
I"!
)*
+*3 Phi&! ,5= :84=);!
pa2$ent o/ F%st (o$pensation, the sa$e 6as ren"ere" in9a&i" as it 9io&ate"
the prin(ip&es 'o9ernin' e$inent "o$ain!
In "eople v. :a;ardo,
)8
the $%ni(ipa& $a2or re/%se" <aFar"o
per$ission to 0%i&" a ho%se on his o6n &an" on the 'ro%n" that the propose"
str%(t%re 6o%&" "estro2 the 9ie6 or 0ea%t2 o/ the p%0&i( p&a>a! The
or"inan(e re&ie" %pon 02 the $a2or prohi0ite" the (onstr%(tion o/ an2
0%i&"in' that 6o%&" "estro2 the 9ie6 o/ the p&a>a /ro$ the hi'h6a2! The
(o%rt r%&e" that the $%ni(ipa& or"inan(e %n"er the '%ise o/ po&i(e po6er
per$anent&2 "i9est o6ners o/ the 0ene/i(ia& %se o/ their propert2 /or the
0ene/it o/ the p%0&i(G hen(e, (onsi"ere" as a ta7in' %n"er the po6er o/
e$inent "o$ain that (o%&" not 0e (o%ntenan(e" 6itho%t pa2$ent o/ F%st
(o$pensation to the a//e(te" o6ners! In this (ase, 6hat the $%ni(ipa&it2
6ante" 6as to i$pose an ease$ent on the propert2 in or"er to preser9e the
9ie6 or 0ea%t2 o/ the p%0&i( p&a>a, 6hi(h 6as a /or$ o/ %ti&i>ation o/
<aFar"oIs propert2 /or p%0&i( 0ene/it!
)+
Hhi&e the po6er o/ e$inent "o$ain o/ten res%&ts in the appropriation
o/ tit&e to or possession o/ propert2, it nee" not a&6a2s 0e the (ase! Ta7in'
$a2 in(&%"e trespass 6itho%t a(t%a& e9i(tion o/ the o6ner, $ateria&
i$pair$ent o/ the 9a&%e o/ the propert2 or pre9ention o/ the or"inar2 %ses
/or 6hi(h the propert2 6as inten"e" s%(h as the esta0&ish$ent o/ an
ease$ent!
))
In Ayala de Ro<as v. City of (anila,
79
it 6as he&" that the
i$position o/ 0%r"en o9er a pri9ate propert2 thro%'h ease$ent 6as
(onsi"ere" ta7in'G hen(e, pa2$ent o/ F%st (o$pensation is re?%ire"! The
Co%rt "e(&are":
)8
8*5 Phi&! 55) :841=;!
)+
T#E 84=3 CONSTITUTION O< T#E REPUBLIC O< T#E P#ILIPPINES, s%pra note
+5, p! 5++!
))
CONSTITUTIONAL LAH, Cr%>, p! ,, :8441 e"!;!
)5
4 Phi&! +81, ++8 :84*3;!
An", (onsi"erin' that the ease$ent inten"e" to 0e esta0&ishe",
6hate9er $a2 0e the o0Fe(t thereo/, is not $ere&2 a rea& ri'ht that 6i&&
en(%$0er the propert2, 0%t is one ten"in' to pre9ent the e-(&%si9e %se o/
one portion o/ the sa$e, 02 e-propriatin' it /or p%0&i( %se 6hi(h, 0e it
6hat it $a2, (an not 0e a((o$p&ishe" %n&ess the o6ner o/ the propert2
(on"e$ne" or sei>e" 0e pre9io%s&2 an" "%&2 in"e$ni/ie", it is proper to
prote(t the appe&&ant 02 $eans o/ the re$e"2 e$p&o2e" in s%(h (ases, as it
is on&2 a"e?%ate re$e"2 6hen no other &e'a& a(tion (an 0e resorte" to,
a'ainst an intent 6hi(h is nothin' short o/ an ar0itrar2 restri(tion i$pose"
02 the (it2 02 9irt%e o/ the (oer(i9e po6er 6ith 6hi(h the sa$e is
in9este"!
An" in the (ase o/ +ational "o2er Corporation v. Gutierre),
)1
"espite
the NPCIs protestation that the o6ners 6ere not tota&&2 "epri9e" o/ the %se
o/ the &an" an" (o%&" sti&& p&ant the sa$e (rops as &on' as the2 "i" not (o$e
into (onta(t 6ith the 6ires, the Co%rt ne9erthe&ess he&" that the ease$ent o/
ri'ht-o/-6a2 6as a ta7in' %n"er the po6er o/ e$inent "o$ain! The Co%rt
sai":
In the (ase at 0ar, the ease$ent o/ ri'ht-o/-6a2 is "e/inite&2 a
ta7in' %n"er the po6er o/ e$inent "o$ain! Consi"erin' the nat%re an"
e//e(t o/ the insta&&ation o/ +)* D@ Me-i(o-Li$a2 trans$ission &ines, the
&i$itation i$pose" 02 NPC a'ainst the %se o/ the &an" /or an in"e/inite
perio" "epri9es pri9ate respon"ents o/ its or"inar2 %se!
A (ase e-e$p&i/2in' an instan(e o/ (o$pensa0&e ta7in' 6hi(h "oes
not entai& trans/er o/ tit&e is Repu/lic v. "!ilippine ,ong $istance .elep!one
Co.
),
#ere, the B%rea% o/ Te&e(o$$%ni(ations, a 'o9ern$ent
instr%$enta&it2, ha" (ontra(te" 6ith the PL.T /or the inter(onne(tion
0et6een the Go9ern$ent Te&ephone S2ste$ an" that o/ the PL.T, so that
the /or$er (o%&" $a7e %se o/ the &ines an" /a(i&ities o/ the PL.T! In its
"esire to e-pan" ser9i(es to 'o9ern$ent o//i(es, the B%rea% o/
Te&e(o$$%ni(ations "e$an"e" to e-pan" its %se o/ the PL.T &ines!
.isa'ree$ent ens%e" on the ter$s o/ the (ontra(t /or the %se o/ the PL.T
/a(i&ities! The Co%rt r%$inate":
)1
S%pra note 8,!
),
8), Phi&! +* :84,4;!
Nor$a&&2, o/ (o%rse, the po6er o/ e$inent "o$ain res%&ts in the
ta7in' or appropriation o/ tit&e to, an" possession o/, the e-propriate"
propert2G 0%t no (o'ent reason appears 6h2 sai" po6er $a2 not 0e a9ai&e"
o/ to i$pose on&2 a 0%r"en %pon the o6ner o/ the (on"e$ne" propert2,
6itho%t &oss o/ tit&e an" possession! It is %n?%estiona0&e that rea& propert2
$a2, thro%'h e-propriation, 0e s%0Fe(te" to an ease$ent ri'ht o/ 6a2!
)3
In Repu/lic v. Castellvi,
)=
this Co%rt ha" the o((asion to spe&& o%t the
re?%isites o/ ta7in' in e$inent "o$ain, to 6it:
:8; the e-propriator $%st enter a pri9ate propert2G
:+; the entr2 $%st 0e /or $ore than a $o$entar2 perio"!
:); the entr2 $%st 0e %n"er 6arrant or (o&or o/ &e'a& a%thorit2G
:5; the propert2 $%st 0e "e9ote" to p%0&i( %se or other6ise in/or$a&&2
appropriate" or inF%rio%s&2 a//e(te"G
:1; the %ti&i>ation o/ the propert2 /or p%0&i( %se $%st 0e in s%(h a 6a2 as
to o%st the o6ner an" "epri9e hi$ o/ 0ene/i(ia& enFo2$ent o/ the
propert2!
As sho6n 02 the /ore'oin' F%rispr%"en(e, a re'%&ation 6hi(h
s%0stantia&&2 "epri9es the o6ner o/ his proprietar2 ri'hts an" restri(ts the
0ene/i(ia& %se an" enFo2$ent /or p%0&i( %se a$o%nts to (o$pensa0&e ta7in'!
In the (ase %n"er (onsi"eration, the entr2 re/erre" to in Se(tion 3, an" the
ease$ent ri'hts %n"er Se(tion 31 o/ Rep! A(t No! 345+ as 6e&& as the
9ario%s ri'hts to CAMC %n"er its <TAA are no "i//erent /ro$ the
"epri9ation o/ proprietar2 ri'hts in the (ases "is(%sse" 6hi(h this Co%rt
(onsi"ere" as ta7in'! Se(tion 31 o/ the &a6 in ?%estion rea"s:
Ease$ent Ri'hts! - Hhen $inin' areas are so sit%ate" that /or
p%rposes o/ $ore (on9enient $inin' operations it is ne(essar2 to 0%i&",
(onstr%(t or insta&& on the $inin' areas or &an"s o6ne", o((%pie" or &ease"
02 other persons, s%(h in/rastr%(t%re as roa"s, rai&roa"s, $i&&s, 6aste "%$p
sites, tai&in' pon"s, 6areho%ses, sta'in' or stora'e areas an" port
/a(i&ities, tra$6a2s, r%n6a2s, airports, e&e(tri( trans$ission, te&ephone or
)3
I"!, pp! +4-)*!
)=
S%pra note 81, pp! )51-)53!
te&e'raph &ines, "a$s an" their nor$a& /&oo" an" (at(h$ent areas, sites /or
6ater 6e&&s, "it(hes, (ana&s, ne6 ri9er 0e"s, pipe&ines, /&%$es, (%ts, sha/ts,
t%nne&s, or $i&&s, the (ontra(tor, %pon pa2$ent o/ F%st (o$pensation, sha&&
0e entit&e" to enter an" o((%p2 sai" $inin' areas or &an"s!
Se(tion 3, pro9i"es:
Entr2 into pri9ate &an"s an" (on(ession areas L S%0Fe(t to prior
noti/i(ation, ho&"ers o/ $inin' ri'hts sha&& not 0e pre9ente" /ro$ entr2
into pri9ate &an"s an" (on(ession areas 02 s%r/a(e o6ners, o((%pants, or
(on(essionaires 6hen (on"%(tin' $inin' operations therein!
The CAMC <TAA 'rants in /a9or o/ CAMC the ri'ht o/ possession o/
the E-p&oration Contra(t Area, the /%&& ri'ht o/ in'ress an" e'ress an" the
ri'ht to o((%p2 the sa$e! It a&so 0esto6s CAMC the ri'ht not to 0e
pre9ente" /ro$ entr2 into pri9ate &an"s 02 s%r/a(e o6ners or o((%pants
thereo/ 6hen prospe(tin', e-p&orin' an" e-p&oitin' $inera&s therein!
The entr2 re/erre" to in Se(tion 3, is not F%st a si$p&e ri'ht-o/-6a2
6hi(h is or"inari&2 a&&o6e" %n"er the pro9isions o/ the Ci9i& Co"e! #ere,
the ho&"ers o/ $inin' ri'hts enter pri9ate &an"s /or p%rposes o/ (on"%(tin'
$inin' a(ti9ities s%(h as e-p&oration, e-tra(tion an" pro(essin' o/ $inera&s!
Minin' ri'ht ho&"ers 0%i&" $ine in/rastr%(t%re, "i' $ine sha/ts an"
(onne(tin' t%nne&s, prepare tai&in' pon"s, stora'e areas an" 9ehi(&e "epots,
insta&& their $a(hiner2, e?%ip$ent an" se6er s2ste$s! On top o/ this, %n"er
Se(tion 31, ease$ent ri'hts are a((or"e" to the$ 6here the2 $a2 0%i&"
6areho%ses, port /a(i&ities, e&e(tri( trans$ission, rai&roa"s an" other
in/rastr%(t%res ne(essar2 /or $inin' operations! A&& these 6i&& "e/inite&2
o%st the o6ners or o((%pants o/ the a//e(te" areas the 0ene/i(ia& o6nership
o/ their &an"s! Hitho%t a "o%0t, ta7in' o((%rs on(e $inin' operations
(o$$en(e!
S,.0*!( $; !3 R,/. A.0 N!. $<=& *2 ' T'?*(7 P-!6*2*!(
Moreo9er, it 6o%&" not 0e a$iss to re9isit the histor2 o/ $inin' &a6s
o/ this (o%ntr2 6hi(h 6o%&" he&p %s %n"erstan" Se(tion 3, o/ Rep! A(t No!
345+!
This pro9ision is /irst /o%n" in Se(tion +3 o/ Co$$on6ea&th A(t No!
8)3 6hi(h too7 e//e(t on 3 No9e$0er 84),, vi):
Be/ore enterin' pri9ate &an"s the prospe(tor sha&& /irst app&2 in
6ritin' /or 6ritten per$ission o/ the pri9ate o6ner, (&ai$ant, or ho&"er
thereo/, an" in (ase o/ re/%sa& 02 s%(h pri9ate o6ner, (&ai$ant, or ho&"er
to 'rant s%(h per$ission, or in (ase o/ "isa'ree$ent as to the a$o%nt o/
(o$pensation to 0e pai" /or s%(h pri9i&e'e o/ prospe(tin' therein, the
a$o%nt o/ s%(h (o$pensation sha&& 0e /i-e" 02 a'ree$ent a$on' the
prospe(tor, the .ire(tor o/ the B%rea% o/ Mines an" the s%r/a(e o6ner, an"
in (ase o/ their /ai&%re to %nani$o%s&2 a'ree as to the a$o%nt o/
(o$pensation, a&& ?%estions at iss%e sha&& 0e "eter$ine" 02 the Co%rt o/
<irst Instan(e!
Si$i&ar&2, the pertinent pro9ision o/ Presi"entia& .e(ree No! 5,),
other6ise 7no6n as AThe Minera& Reso%r(es .e9e&op$ent .e(ree o/ 8435,B
pro9i"es:
SECTION 8+! Entr2 to P%0&i( an" Pri9ate Lan"s! M A person 6ho
"esires to (on"%(t prospe(tin' or other $inin' operations 6ithin p%0&i(
&an"s (o9ere" 02 (on(essions or ri'hts other than $inin' sha&& /irst o0tain
the 6ritten per$ission o/ the 'o9ern$ent o//i(ia& (on(erne" 0e/ore
enterin' s%(h &an"s! In the (ase o/ pri9ate &an"s, the 6ritten per$ission o/
the o6ner or possessor o/ the &an" $%st 0e o0taine" 0e/ore enterin' s%(h
&an"s! In either (ase, i/ sai" per$ission is "enie", the .ire(tor, at the
re?%est o/ the intereste" person $a2 inter(e"e 6ith the o6ner or possessor
o/ the &an"! I/ the inter(ession /ai&s, the intereste" person $a2 0rin' s%it in
the Co%rt o/ <irst Instan(e o/ the pro9in(e 6here the &an" is sit%ate"! I/ the
(o%rt /in"s the re?%est F%sti/ie", it sha&& iss%e an or"er 'rantin' the
per$ission a/ter /i-in' the a$o%nt o/ (o$pensation an"Kor renta& "%e the
o6ner or possessor: Pro9i"e", That pen"in' /ina& a"F%"i(ation o/ s%(h
a$o%nt, the (o%rt sha&& %pon re(o$$en"ation o/ the .ire(tor per$it the
intereste" person to enter, prospe(t an"Kor %n"erta7e other $inin'
operations on the "isp%te" &an" %pon postin' 02 s%(h intereste" person o/
a 0on" 6ith the (o%rt 6hi(h the &atter sha&& (onsi"er a"e?%ate to ans6er
/or an2 "a$a'e to the o6ner or possessor o/ the &an" res%&tin' /ro$ s%(h
entr2, prospe(tin' or an2 other $inin' operations!
#a$pere" 02 the "i//i(%&ties an" "e&a2s in se(%rin' s%r/a(e ri'hts /or
the entr2 into pri9ate &an"s /or p%rposes o/ $inin' operations, Presi"entia&
.e(ree No! 18+ "ate" 84 %&2 8435 6as passe" into &a6 in or"er to a(hie9e
/%&& an" a((e&erate" $inera& reso%r(es "e9e&op$ent! Th%s, Presi"entia&
.e(ree No! 18+ pro9i"es /or a ne6 s2ste$ o/ s%r/a(e ri'hts a(?%isition 02
$inin' prospe(tors an" (&ai$ants! Hhereas in Co$$on6ea&th A(t No! 8)3
an" Presi"entia& .e(ree No! 5,) e$inent "o$ain $a2 on&2 0e ,5,-.*2,) in
or"er that the $inin' (&ai$ants (an 0%i&", (onstr%(t or insta&& roa"s,
rai&roa"s, $i&&s, 6areho%ses an" other /a(i&ities, this ti$e, the po6er o/
e$inent "o$ain $a2 no6 0e *(6!?,) 02 $inin' operators /or the entr2,
a(?%isition an" %se o/ pri9ate &an"s, vi):
SECTION 8! Minera& prospe(tin', &o(ation, e-p&oration,
"e9e&op$ent an" e-p&oitation is here02 "e(&are" o/ p%0&i( %se an" 0ene/it,
an" /or 6hi(h the po6er o/ e$inent "o$ain $a2 0e in9o7e" an" e-er(ise"
/or the entr2, a(?%isition an" %se o/ pri9ate &an"s! - - -!

The e9o&%tion o/ $inin' &a6s 'i9es positi9e in"i(ation that $inin'
operators 6ho are ?%a&i/ie" to o6n &an"s 6ere 'rante" the a%thorit2 to
e-er(ise e$inent "o$ain /or the entr2, a(?%isition, an" %se o/ pri9ate &an"s
in areas open /or $inin' operations! This 'rant o/ a%thorit2 e-tant in
Se(tion 8 o/ Presi"entia& .e(ree No! 18+ is not e-press&2 repea&e" 02
Se(tion 3, o/ Rep! A(t No! 345+G an" neither are the /or$er stat%tes
i$p&ie"&2 repea&e" 02 the /or$er! These t6o pro9isions (an stan" to'ether
e9en i/ Se(tion 3, o/ Rep! A(t No! 345+ "oes not spe&& o%t the 'rant o/ the
pri9i&e'e to e-er(ise e$inent "o$ain 6hi(h 6as present in the o&" &a6!
It is an esta0&ishe" r%&e in stat%tor2 (onstr%(tion that in or"er that one
&a6 $a2 operate to repea& another &a6, the t6o &a6s $%st 0e in(onsistent!
)4
The /or$er $%st 0e so rep%'nant as to 0e irre(on(i&ia0&e 6ith the &atter a(t!
)4
Valera v. .uason, Jr!, =* Phi&! =+), =+3 :844=;!
Si$p&2 0e(a%se a &atter ena(t$ent $a2 re&ate to the sa$e s%0Fe(t $atter as
that o/ an ear&ier stat%te is not o/ itse&/ s%//i(ient to (a%se an i$p&ie" repea&
o/ the &atter, sin(e the ne6 &a6 $a2 0e (%$%&ati9e or a (ontin%ation o/ the
o&" one! As has 0een the r%&e", repea&s 02 i$p&i(ation are not /a9ore", an"
6i&& not 0e "e(ree" %n&ess it is $ani/est that the &e'is&at%re so inten"e"!
5*
As
&a6s are pres%$e" to 0e passe" 6ith "e&i0eration an" 6ith /%&& 7no6&e"'e o/
a&& e-istin' ones on the s%0Fe(t, it is 0%t reasona0&e to (on(&%"e that in
passin' a stat%te it 6as not inten"e" to inter/ere 6ith or a0ro'ate an2 /or$er
&a6 re&atin' to the sa$e $atter, %n&ess the rep%'nan(2 0et6een the t6o is
not on&2 irre(on(i&a0&e, 0%t a&so (&ear an" (on9in(in', an" /&o6in'
ne(essari&2 /ro$ the &an'%a'e %se", %n&ess the &ater a(t /%&&2 e$0ra(es the
s%0Fe(t $atter o/ the ear&ier, or %n&ess the reason /or the ear&ier a(t is 0e2on"
pera"9ent%re re$o9e"!
58
#en(e, e9er2 e//ort $%st 0e %se" to $a7e a&& a(ts
stan" an" i/, 02 an2 reasona0&e (onstr%(tion, the2 (an 0e re(on(i&e", the
&atter a(t 6i&& not operate as a repea& o/ the ear&ier!
Consi"erin' that Se(tion 8 o/ Presi"entia& .e(ree No! 18+ 'rante" the
?%a&i/ie" $inin' operators the a%thorit2 to e-er(ise e$inent "o$ain an"
sin(e this 'rant o/ a%thorit2 is "ee$e" in(orporate" in Se(tion 3, o/ Rep!
A(t No! 345+, the ines(apa0&e (on(&%sion is that the &atter pro9ision is a
ta7in' pro9ision!
Hhi&e this Co%rt "e(&ares that the assai&e" pro9ision is a ta7in'
pro9ision, this "oes not $ean that it is %n(onstit%tiona& on the 'ro%n" that it
a&&o6s ta7in' o/ pri9ate propert2 6itho%t the "eter$ination o/ p%0&i( %se an"
the pa2$ent o/ F%st (o$pensation!
5*
5nited States v. "alacio, )) Phi&! +*=, +8, :848,;!
58
I"!
The ta7in' to 0e 9a&i" $%st 0e /or p%0&i( %se!
5+
P%0&i( %se as a
re?%ire$ent /or the 9a&i" e-er(ise o/ the po6er o/ e$inent "o$ain is no6
s2non2$o%s 6ith p%0&i( interest, p%0&i( 0ene/it, p%0&i( 6e&/are an" p%0&i(
(on9enien(e!
5)
It in(&%"es the 0roa"er notion o/ in"ire(t p%0&i( 0ene/it or
a"9anta'e! P%0&i( %se as tra"itiona&&2 %n"erstoo" as Aa(t%a& %se 02 the
p%0&i(B has a&rea"2 0een a0an"one"!
55
Minin' in"%str2 p&a2s a pi9ota& ro&e in the e(ono$i( "e9e&op$ent o/
the (o%ntr2 an" is a 9ita& too& in the 'o9ern$entIs thr%st o/ a((e&erate"
re(o9er2!
51
The i$portan(e o/ the $inin' in"%str2 /or nationa& "e9e&op$ent
is e-presse" in Presi"entia& .e(ree No! 5,):
H#EREAS, $inera& pro"%(tion is a $aFor s%pport o/ the nationa&
e(ono$2, an" there/ore the intensi/ie" "is(o9er2, e-p&oration,
"e9e&op$ent an" 6ise %ti&i>ation o/ the (o%ntr2Is $inera& reso%r(es are
%r'ent&2 nee"e" /or nationa& "e9e&op$ent!
Irre/ra'a0&2, $inin' is an in"%str2 6hi(h is o/ p%0&i( 0ene/it!
That p%0&i( %se is ne'ate" 02 the /a(t that the state 6o%&" 0e ta7in'
pri9ate properties /or the 0ene/it o/ pri9ate $inin' /ir$s or $inin'
(ontra(tors is not at a&& tr%e! In Heirs of Juanc!o Ardona v. Reyes,
93
petitioners therein (onten"e" that the pro$otion o/ to%ris$ is not /or p%0&i(
%se 0e(a%se pri9ate (on(essionaires 6o%&" 0e a&&o6e" to $aintain 9ario%s
/a(i&ities s%(h as resta%rants, hote&s, stores, et(!, insi"e the to%rist area! The
Co%rt th%s (onte$p&ate":
The r%&e in Ber$an 9! Par7er N)5= U!S! +1G 44 L! e"! +3O o/
"e/eren(e to &e'is&ati9e po&i(2 e9en i/ s%(h po&i(2 $i'ht $ean ta7in' /ro$
5+
Heirs of Juanc!o Ardona v. Reyes, +8* Phi&! 8=3, 843 :84=);!
5)
I"!
55
I"!, p! 84=!
51
E-e(%ti9e Or"er No! +88!
5,
S%pra note 5+!
one pri9ate person an" (on/errin' on another pri9ate person app&ies as
6e&& in the Phi&ippines!
A! ! ! On(e the o0Fe(t is 6ithin the a%thorit2 o/
Con'ress, the $eans 02 6hi(h it 6i&& 0e attaine" is a&so /or
Con'ress to "eter$ine! #ere one o/ the $eans (hosen is the
%se o/ pri9ate enterprise /or re"e9e&op$ent o/ the area!
Appe&&ants ar'%e that this $a7es the proFe(t a ta7in' /ro$
one 0%siness$an /or the 0ene/it o/ another 0%siness$an!
B%t the $eans o/ e-e(%tin' the proFe(t are /or Con'ress an"
Con'ress a&one to "eter$ine, on(e the p%0&i( p%rpose has
0een esta0&ishe"! - - -B
53

Petitioners /%rther $aintain that the stateIs "is(retion to "e(i"e 6hen
to ta7e pri9ate propert2 is re"%(e" (ontra(t%a&&2 02 Se(tion 8)!1 o/ the
CAMC <TAA, 6hi(h rea"s:
I/ the CONTRACTOR so re?%ests at its option, the
GO@ERNMENT sha&& %se its o//i(es an" &e'a& po6ers to assist in the
a(?%isition at reasona0&e (ost o/ an2 s%r/a(e areas or ri'hts re?%ire" 02 the
CONTRACTOR at the CONTRACTORIs (ost to (arr2 o%t the Minera&
E-p&oration an" the Minin' Operations herein!
A&& o0&i'ations, pa2$ents an" e-penses arisin' /ro$, or in(i"ent
to, s%(h a'ree$ents or a(?%isition o/ ri'ht sha&& 0e /or the a((o%nt o/ the
CONTRACTOR an" sha&& 0e re(o9era0&e as Operatin' E-pense!
A((or"in' to petitioners, the 'o9ern$ent is re"%(e" to a s%0-
(ontra(tor %pon the re?%est o/ the pri9ate respon"ent, an" on a((o%nt o/ the
/ore'oin' pro9ision, the (ontra(tor (an (o$pe& the 'o9ern$ent to e-er(ise
its po6er o/ e$inent "o$ain there02 "ero'atin' the &atterIs po6er to
e-propriate propert2!
The pro9ision o/ the <TAA in ?%estion &a2s "o6n the 6a2s an" $eans
02 6hi(h the /orei'n-o6ne" (ontra(tor, "is?%a&i/ie" to o6n &an", i"enti/ies
to the 'o9ern$ent the spe(i/i( s%r/a(e areas 6ithin the <TAA (ontra(t area
to 0e a(?%ire" /or the $ine in/rastr%(t%re!
5=
The 'o9ern$ent then a(?%ires
53
I"!, p! +*8!
5=
,a Bugal'B-,aan .ri/al Association, nc. v. Ramos, G!R! No! 8+3==+, 8 .e(e$0er +**5,
551 SCRA 8, ++=!
o6nership o/ the s%r/a(e &an" areas on 0eha&/ o/ the (ontra(tor, thro%'h a
9o&%ntar2 transa(tion in or"er to ena0&e the &atter to pro(ee" to /%&&2
i$p&e$ent the <TAA! E$inent "o$ain is not 2et (a&&e" /or at this sta'e
sin(e there are sti&& 9ario%s a9en%es 02 6hi(h s%r/a(e ri'hts (an 0e a(?%ire"
other than e-propriation! The <TAA pro9ision %n"er atta(7 $ere&2 /a(i&itates
the i$p&e$entation o/ the <TAA 'i9en to CAMC an" shie&"s it /ro$
9io&atin' the Anti-.%$$2 La6! #en(e, 6hen (on/ronte" 6ith the sa$e
?%estion in ,a Bugal'B-,aan .ri/al Association, nc. v. Ramos,
54
the Co%rt
ans6ere":
C&ear&2, petitioners ha9e nee"&ess&2 F%$pe" to %n6arrante"
(on(&%sions, 6itho%t 0ein' a6are o/ the rationa&e /or the sai" pro9ision!
That pro9ision "oes not (a&& /or the e-er(ise o/ the po6er o/ e$inent
"o$ain -- an" "eter$ination o/ F%st (o$pensation is not an iss%e -- as
$%(h as it (a&&s /or a ?%a&i/ie" part2 to a(?%ire the s%r/a(e ri'hts on 0eha&/
o/ a /orei'n-o6ne" (ontra(tor!
Rather than ha9in' the /orei'n (ontra(tor a(t thro%'h a "%$$2
(orporation, ha9in' the State "o the p%r(hasin' is a 0etter a&ternati9e!
This 6i&& at &east (a%se the 'o9ern$ent to 0e a6are o/ s%(h transa(tionKs
an" /oster transparen(2 in the (ontra(torIs "ea&in's 6ith the &o(a& propert2
o6ners! The 'o9ern$ent, then, 6i&& not a(t as a s%0(ontra(tor o/ the
(ontra(torG rat!er, it 2ill facilitate t!e transaction and ena/le t!e parties
to avoid a tec!nical violation of t!e Anti'$ummy ,a2.
There is a&so no 0asis /or the (&ai$ that the Minin' La6 an" its
i$p&e$entin' r%&es an" re'%&ations "o not pro9i"e /or F%st (o$pensation in
e-propriatin' pri9ate properties! Se(tion 3, o/ Rep! A(t No! 345+ an"
Se(tion 8*3 o/ .AO 4,-5* pro9i"e /or the pa2$ent o/ F%st (o$pensation:
Se(tion 3,! --- Pro9i"e", that an2 "a$a'e to the propert2 o/ the
s%r/a(e o6ner, o((%pant, or (on(essionaire as a (onse?%en(e o/ s%(h
operations sha&& 0e properly compensated as $a2 0e pro9i"e" /or in the
i$p&e$entin' r%&es an" re'%&ations!
Se(tion 8*3! Co$pensation o/ the S%r/a(e O6ner an" O((%pant-
An2 "a$a'e "one to the propert2 o/ the s%r/a(e o6ners, o((%pant, or
(on(essionaire thereo/ as a (onse?%en(e o/ the $inin' operations or as a
54
I"!, p! 81*!
res%&t o/ the (onstr%(tion or insta&&ation o/ the in/rastr%(t%re $entione" in
8*5 a0o9e s!all /e properly and ;ustly compensated!
S%(h (o$pensation sha&& 0e 0ase" on the a'ree$ent entere" into
0et6een the ho&"er o/ $inin' ri'hts an" the s%r/a(e o6ner, o((%pant or
(on(essionaire thereo/, 6here appropriate, in a((or"an(e 6ith P!.! No!
18+! :E$phasis s%pp&ie"!;
S,.!() S4820'(0*6, I224,9 P!A,- !3 C!4-02 0! D,0,-@*(, J420
C!@/,(2'0*!(
C&ose&2-7nit to the iss%e o/ ta7in' is the "eter$ination o/ F%st
(o$pensation! It is (onten"e" that Rep! A(t No! 345+ an" Se(tion 8*3 o/
.AO 4,-5* en(roa(h on the po6er o/ the tria& (o%rts to "eter$ine F%st
(o$pensation in e$inent "o$ain (ases inas$%(h as the sa$e "eter$ination
o/ proper (o$pensation are (o'ni>a0&e on&2 02 the Pane& o/ Ar0itrators!
The ?%estion on the F%"i(ia& "eter$ination o/ F%st (o$pensation has
0een sett&e" in the (ase o/ %<port "rocessing #one Aut!ority v. $ulay
1=
6herein the (o%rt "e(&are" that the "eter$ination o/ F%st (o$pensation in
e$inent "o$ain (ases is a F%"i(ia& /%n(tion! E9en as the e-e(%ti9e
"epart$ent or the &e'is&at%re $a2 $a7e the initia& "eter$inations, the sa$e
(annot pre9ai& o9er the (o%rtIs /in"in's!
I$p&e$entin' Se(tion 3, o/ Rep! A(t No! 345+, Se(tion 8*1 o/ .AO
4,-5* states that ho&"er:s; o/ $inin' ri'ht:s; sha&& not 0e pre9ente" /ro$
entr2 into itsKtheir (ontra(tK$inin' areas /or the p%rpose o/ e-p&oration,
"e9e&op$ent, an"Kor %ti&i>ation! That in (ases 6here s%r/a(e o6ners o/ the
&an"s, o((%pants or (on(essionaires re/%se to a&&o6 the per$it ho&"er or
(ontra(tor entr2, the &atter sha&& 0rin' the $atter 0e/ore the Pane& o/
Ar0itrators /or proper "isposition! Se(tion 8*, states that 9o&%ntar2
a'ree$ents 0et6een the t6o parties per$ittin' the $inin' ri'ht ho&"ers to
1*
G!R! No! L-14,*), +4 Apri& 84=3, 854 SCRA )*1, )8+!
enter an" %se the s%r/a(e o6nersI &an"s sha&& 0e re'istere" 6ith the Re'iona&
O//i(e o/ the MGB! In (onne(tion 6ith Se(tion 8*,, Se(tion 8*3 pro9i"es
that the (o$pensation /or the "a$a'e "one to the s%r/a(e o6ner, o((%pant or
(on(essionaire as a (onse?%en(e o/ $inin' operations or as a res%&t o/ the
(onstr%(tion or insta&&ation o/ the in/rastr%(t%re sha&& 0e proper&2 an" F%st&2
(o$pensate" an" that s%(h (o$pensation sha&& 0e 0ase" on the a'ree$ent
0et6een the ho&"er o/ $inin' ri'hts an" s%r/a(e o6ner, o((%pant or
(on(essionaire, or 6here appropriate, in a((or"an(e 6ith Presi"entia& .e(ree
No! 18+! In (ases 6here there is "isa'ree$ent to the (o$pensation or 6here
there is no a'ree$ent, the $atter sha&& 0e 0ro%'ht 0e/ore the Pane& o/
Ar0itrators! Se(tion +*, o/ the i$p&e$entin' r%&es an" re'%&ations pro9i"es
an a''rie9e" part2 the re$e"2 to appea& the "e(ision o/ the Pane& o/
Ar0itrators to the Mines A"F%"i(ation Boar", an" the &atterIs "e(ision $a2
0e re9ie6e" 02 the S%pre$e Co%rt 02 /i&in' a petition /or re9ie6 on
certiorari!
18

An e-a$ination o/ the /ore'oin' pro9isions 'i9es no in"i(ation that
the (o%rts are e-(&%"e" /ro$ ta7in' (o'ni>an(e o/ e-propriation (ases %n"er
the $inin' &a6! The "isa'ree$ent re/erre" to in Se(tion 8*3 "oes not
in9o&9e the e-er(ise o/ e$inent "o$ain, rather it (onte$p&ates o/ a sit%ation
6herein the per$it ho&"ers are a&&o6e" 02 the s%r/a(e o6ners entr2 into the
&attersI &an"s an" "isa'ree$ent ens%es as re'ar"in' the proper (o$pensation
/or the a&&o6e" entr2 an" %se o/ the pri9ate &an"s! Noti(ea0&2, the pro9ision
points to a 9o&%ntar2 sa&e or transa(tion, 0%t not to an in9o&%ntar2 sa&e!
The &e'is&at%re, in ena(tin' the $inin' a(t, is pres%$e" to ha9e
"e&i0erate" 6ith /%&& 7no6&e"'e o/ a&& e-istin' &a6s an" F%rispr%"en(e on the
s%0Fe(t! Th%s, it is 0%t reasona0&e to (on(&%"e that in passin' s%(h stat%te it
18
Se(tion +88 o/ .AO 4,-5* pro9i"es: The "e(ision o/ the Boar" $a2 0e re9ie6e" 02
/i&in' a petition /or re9ie6 6ith the S%pre$e Co%rt 6ithin thirt2 :)*; "a2s /ro$ re(eipt o/ the
or"er or "e(ision o/ the Boar"!
6as in a((or" 6ith the e-istin' &a6s an" F%rispr%"en(e on the F%ris"i(tion o/
(o%rts in the "eter$ination o/ F%st (o$pensation an" that it 6as not inten"e"
to inter/ere 6ith or a0ro'ate an2 /or$er &a6 re&atin' to the sa$e $atter!
In"ee", there is nothin' in the pro9isions o/ the assai&e" &a6 an" its
i$p&e$entin' r%&es an" re'%&ations that e-(&%"e the (o%rts /ro$ their
F%ris"i(tion to "eter$ine F%st (o$pensation in e-propriation pro(ee"in's
in9o&9in' $inin' operations! A&tho%'h Se(tion 8*1 (on/ers %pon the Pane&
o/ Ar0itrators the a%thorit2 to "e(i"e (ases 6here s%r/a(e o6ners, o((%pants,
(on(essionaires re/%se per$it ho&"ers entr2, th%s, ne(essitatin' in9o&%ntar2
ta7in', this "oes not $ean that the "eter$ination o/ the F%st (o$pensation 02
the Pane& o/ Ar0itrators or the Mines A"F%"i(ation Boar" is /ina& an"
(on(&%si9e! The "eter$ination is on&2 pre&i$inar2 %n&ess a((epte" 02 a&&
parties (on(erne"! There is nothin' 6ron' 6ith the 'rant o/ pri$ar2
F%ris"i(tion 02 the Pane& o/ Ar0itrators or the Mines A"F%"i(ation Boar" to
"eter$ine in a pre&i$inar2 $atter the reasona0&e (o$pensation "%e the
a//e(te" &an"o6ners or o((%pants!
1+
The ori'ina& an" e-(&%si9e F%ris"i(tion
o/ the (o%rts to "e(i"e "eter$ination o/ F%st (o$pensation re$ains inta(t
"espite the pre&i$inar2 "eter$ination $a"e 02 the a"$inistrati9e a'en(2!
As he&" in "!ilippine Veterans Ban> v. Court of Appeals
1)
:
The F%ris"i(tion o/ the Re'iona& Tria& Co%rts is not an2 &ess
Aori'ina& an" e-(&%si9eB 0e(a%se the ?%estion is /irst passe" %pon 02 the
.AR, as the F%"i(ia& pro(ee"in's are not a (ontin%ation o/ the
a"$inistrati9e "eter$ination!
T+*-) S4820'(0*6, I224,9 S433*.*,(0 C!(0-!: 81 0+, S0'0, O6,- M*(*(7
O/,-'0*!(2
Anent the thir" iss%e, petitioners (har'e that Rep! A(t No! 345+, as
6e&& as its I$p&e$entin' R%&es an" Re'%&ations, $a7es it possi0&e /or <TAA
(ontra(ts to (e"e o9er to a /%&&2 /orei'n-o6ne" (orporation /%&& (ontro& an"
1+
"!ilippine Veterans Ban> v. Court of Appeals, )34 Phi&! 858, 853 :+***;!
1)
I"!, p! 854!
$ana'e$ent o/ $inin' enterprises, 6ith the res%&t that the State is a&&e'e"&2
re"%(e" to a passi9e re'%&ator "epen"ent on s%0$itte" p&ans an" reports,
6ith 6ea7 re9ie6 an" a%"it po6ers! The State is not a(tin' as the s%ppose"
o6ner o/ the nat%ra& reso%r(es /or an" on 0eha&/ o/ the <i&ipino peop&eG it
pra(ti(a&&2 has &itt&e e//e(ti9e sa2 in the "e(isions $a"e 02 the enterprise! In
e//e(t, petitioners asserte" that the &a6, the i$p&e$entin' re'%&ations, an"
the CAMC <TAA (e"e 0ene/i(ia& o6nership o/ the $inera& reso%r(es to the
/orei'n (ontra(tor!
It $%st 0e note" that this ar'%$ent 6as a&rea"2 raise" in ,a Bugal'
B-,aan .ri/al Association, nc. v. Ramos,
15
6here the Co%rt ans6ere" in the
/o&&o6in' $anner:
RA 345+ pro9i"es /or the stateIs (ontro& an" s%per9ision o9er
$inin' operations! The /o&&o6in' pro9isions thereo/ esta0&ish the
$e(hanis$ o/ inspe(tion an" 9isitoria& ri'hts o9er $inin' operations an"
instit%te reportoria& re?%ire$ents in this $anner:
8! Se(! = 6hi(h pro9i"es /or the .ENRIs po6er o/ o9er-a&&
s%per9ision an" perio"i( re9ie6 /or Athe (onser9ation,
$ana'e$ent, "e9e&op$ent an" proper %se o/ the StateIs
$inera& reso%r(esBG
+! Se(! 4 6hi(h a%thori>es the Mines an" Geos(ien(es B%rea%
:MGB; %n"er the .ENR to e-er(ise A"ire(t (har'e in the
a"$inistration an" "isposition o/ $inera& reso%r(esB, an"
e$po6ers the MGB to A$onitor the (o$p&ian(e 02 the
(ontra(tor o/ the ter$s an" (on"itions o/ the $inera&
a'ree$entsB, A(on/is(ate s%ret2 an" per/or$an(e 0on"sB,
an" "ep%ti>e 6hene9er ne(essar2 an2 $e$0er or %nit o/ the
Phi&! Nationa& Po&i(e, 0aran'a2, "%&2 re'istere" non-
'o9ern$enta& or'ani>ation :NGO; or an2 ?%a&i/ie" person to
po&i(e $inin' a(ti9itiesG
)! Se(! ,, 6hi(h 9ests in the Re'iona& .ire(tor Be-(&%si9e
F%ris"i(tion o9er sa/et2 inspe(tions o/ a&& insta&&ations,
6hether s%r/a(e or %n"er'ro%n"B, %ti&i>e" in $inin'
operations!
5! Se(! )1, 6hi(h in(orporates into a&& <TAAs the /o&&o6in'
ter$s, (on"itions an" 6arranties:
15
S%pra note 5=, pp! 8)+-8)3!
A:'; Minin' operations sha&& 0e (on"%(te" in
a((or"an(e 6ith the pro9isions o/ the A(t an" its
IRR!
A:h; Hor7 pro'ra$s an" $ini$%$ e-pen"it%res
(o$$it$ents!
- - - -
A:7; Re?%irin' proponent to e//e(ti9e&2 %se
appropriate anti-po&&%tion te(hno&o'2 an"
/a(i&ities to prote(t the en9iron$ent an" restore
or reha0i&itate $ine"-o%t areas!
A:&; The (ontra(tors sha&& /%rnish the Go9ern$ent
re(or"s o/ 'eo&o'i(, a((o%ntin' an" other
re&e9ant "ata /or its $inin' operation, an" that
0oo7s o/ a((o%nts an" re(or"s sha&& 0e open /or
inspe(tion 02 the 'o9ern$ent! - - -!
A:$; Re?%irin' the proponent to "ispose o/ the
$inera&s at the hi'hest pri(e an" $ore
a"9anta'eo%s ter$s an" (on"itions!
- - - -
A:o; S%(h other ter$s an" (on"itions (onsistent 6ith
the Constit%tion an" 6ith this A(t as the
Se(retar2 $a2 "ee$ to 0e /or the 0est interest o/
the State an" the 6e&/are o/ the <i&ipino peop&e!B
The /ore'oin' pro9isions o/ Se(tion )1 o/ RA 345+ are a&so
re/&e(te" an" i$p&e$ente" in Se(tion 1, :';, :h;, :&;, :$; an" :n; o/ the
I$p&e$entin' R%&es, .AO 4,-5*!
Moreo9er, RA 345+ an" .AO 4,-5* a&so pro9i"e 9ario%s
stip%&ations (on/ir$in' the 'o9ern$entIs (ontro& o9er $inin' enterprises:
P The (ontra(tor is to re&in?%ish to the 'o9ern$ent those portions o/ the
(ontra(t area not nee"e" /or $inin' operations an" not (o9ere" 02
an2 "e(&aration o/ $inin' /easi0i&it2 :Se(tion )1-e, RA 345+G Se(tion
,*, .AO 4,-5*;!
P The (ontra(tor $%st (o$p&2 6ith the pro9isions pertainin' to $ine
sa/et2, hea&th an" en9iron$enta& prote(tion :Chapter JI, RA 345+G
Chapters J@ an" J@I, .AO 4,-5*;!
P <or 9io&ation o/ an2 o/ its ter$s an" (on"itions, 'o9ern$ent $a2
(an(e& an <TAA! :Chapter J@II, RA 345+G Chapter JJI@, .AO 4,-
5*;!
P An <TAA (ontra(tor is o0&i'e" to open its 0oo7s o/ a((o%nts an"
re(or"s /or *inspe(tion 02 the 'o9ern$ent :Se(tion 1,-$, .AO 4,-
5*;!
P An <TAA (ontra(tor has to "ispose o/ the $inera&s an" 02-pro"%(ts at
the hi'hest $ar7et pri(e an" re'ister 6ith the MGB a (op2 o/ the
sa&es a'ree$ent :Se(tion 1,-n, .AO 4,-5*;!
P MGB is $an"ate" to $onitor the (ontra(torIs (o$p&ian(e 6ith the
ter$s an" (on"itions o/ the <TAAG an" to "ep%ti>e, 6hen ne(essar2,
an2 $e$0er or %nit o/ the Phi&ippine Nationa& Po&i(e, the 0aran'a2 or
a .ENR-a((re"ite" non'o9ern$enta& or'ani>ation to po&i(e $inin'
a(ti9ities :Se(tion 3-" an" -/, .AO 4,-5*;!
P An <TAA (annot 0e trans/erre" or assi'ne" 6itho%t prior appro9a& 02
the Presi"ent :Se(tion 5*, RA 345+G Se(tion ,,, .AO 4,-5*;!
P A $inin' proFe(t %n"er an <TAA (annot pro(ee" to the
(onstr%(tionK"e9e&op$entK%ti&i>ation sta'e, %n&ess its .e(&aration o/
Minin' ProFe(t <easi0i&it2 has 0een appro9e" 02 'o9ern$ent :Se(tion
+5, RA 345+;!
P The .e(&aration o/ Minin' ProFe(t <easi0i&it2 /i&e" 02 the (ontra(tor
(annot 0e appro9e" 6itho%t s%0$ission o/ the /o&&o6in' "o(%$ents:
8! Appro9e" $inin' proFe(t /easi0i&it2 st%"2 :Se(tion 1)-", .AO
4,-5*;
+! Appro9e" three-2ear 6or7 pro'ra$ :Se(tion 1)-a-5, .AO 4,-
5*;
)! En9iron$enta& (o$p&ian(e (erti/i(ate :Se(tion 3*, RA 345+;
5! Appro9e" en9iron$enta& prote(tion an" enhan(e$ent pro'ra$
:Se(tion ,4, RA 345+;
1! Appro9a& 02 the San''%nian' Pan&a&a6i'anKBa2anKBaran'a2
:Se(tion 3*, RA 345+G Se(tion +3, RA 38,*;
,! <ree an" prior in/or$e" (onsent 02 the in"i'eno%s peop&es
(on(erne", in(&%"in' pa2$ent o/ ro2a&ties thro%'h a
Me$oran"%$ o/ A'ree$ent :Se(tion 8,, RA 345+G Se(tion 14,
RA =)38;
P The <TAA (ontra(tor is o0&i'e" to assist in the "e9e&op$ent o/ its
$inin' (o$$%nit2, pro$otion o/ the 'enera& 6e&/are o/ its
inha0itants, an" "e9e&op$ent o/ s(ien(e an" $inin' te(hno&o'2
:Se(tion 13, RA 345+;!
P The <TAA (ontra(tor is o0&i'e" to s%0$it reports :on ?%arter&2, se$i-
ann%a& or ann%a& 0asis as the (ase $a2 0eG per Se(tion +3*, .AO 4,-
5*;, pertainin' to the /o&&o6in':
8! E-p&oration
+! .ri&&in'
)! Minera& reso%r(es an" reser9es
5! Ener'2 (ons%$ption
1! Pro"%(tion
,! Sa&es an" $ar7etin'
3! E$p&o2$ent
=! Pa2$ent o/ ta-es, ro2a&ties, /ees an" other Go9ern$ent Shares
4! Mine sa/et2, hea&th an" en9iron$ent
8*! Lan" %se
88! So(ia& "e9e&op$ent
8+! E-p&osi9es (ons%$ption
P An <TAA pertainin' to areas 6ithin 'o9ern$ent reser9ations (annot
0e 'rante" 6itho%t a 6ritten (&earan(e /ro$ the 'o9ern$ent a'en(ies
(on(erne" :Se(tion 84, RA 345+G Se(tion 15, .AO 4,-5*;!
P An <TAA (ontra(tor is re?%ire" to post a /inan(ia& '%arantee 0on" in
/a9or o/ the 'o9ern$ent in an a$o%nt e?%i9a&ent to its e-pen"it%res
o0&i'ations /or an2 parti(%&ar 2ear! This re?%ire$ent is apart /ro$
the representations an" 6arranties o/ the (ontra(tor that it has a((ess
to a&& the /inan(in', $ana'eria& an" te(hni(a& e-pertise an"
te(hno&o'2 ne(essar2 to (arr2 o%t the o0Fe(ti9es o/ the <TAA
:Se(tion )1-0, -e, an" -/, RA 345+;!
P Other reports to 0e s%0$itte" 02 the (ontra(tor, as re?%ire" %n"er
.AO 4,-5*, are as /o&&o6s: an en9iron$enta& report on the
reha0i&itation o/ the $ine"-o%t area an"Kor $ine 6asteKtai&in'
(o9ere" area, an" anti-po&&%tion $eas%res %n"erta7en :Se(tion )1-a-
+;G ann%a& reports o/ the $inin' operations an" re(or"s o/ 'eo&o'i(
a((o%ntin' :Se(tion 1,-$;G ann%a& pro'ress reports an" /ina& report
o/ e-p&oration a(ti9ities :Se(tion 1,-+;!
P Other pro'ra$s re?%ire" to 0e s%0$itte" 02 the (ontra(tor, p%rs%ant
to .AO 4,-5*, are the /o&&o6in': a sa/et2 an" hea&th pro'ra$
:Se(tion 855;G an en9iron$enta& 6or7 pro'ra$ :Se(tion 8,=;G an
ann%a& en9iron$enta& prote(tion an" enhan(e$ent pro'ra$ :Se(tion
838;!
The /ore'oin' 'a$%t o/ re?%ire$ents, re'%&ations, restri(tions an"
&i$itations i$pose" %pon the <TAA (ontra(tor 02 the stat%te an"
re'%&ations easi&2 o9ert%rns petitionersI (ontention! The set%p %n"er RA
345+ an" .AO 4,-5* har"&2 re&e'ates the State to the ro&e o/ a Apassi9e
re'%&atorB "epen"ent on s%0$itte" p&ans an" reports! On the (ontrar2, the
'o9ern$ent a'en(ies (on(erne" are e$po6ere" to appro9e or "isappro9e
-- hen(e, to in/&%en(e, "ire(t an" (han'e -- the 9ario%s 6or7 pro'ra$s an"
the (orrespon"in' $ini$%$ e-pen"it%re (o$$it$ents /or ea(h o/ the
e-p&oration, "e9e&op$ent an" %ti&i>ation phases o/ the $inin' enterprise!
On(e these p&ans an" reports are appro9e", the (ontra(tor is 0o%n"
to (o$p&2 6ith its (o$$it$ents therein! <i'%res /or $inera& pro"%(tion
an" sa&es are re'%&ar&2 $onitore" an" s%0Fe(te" to 'o9ern$ent re9ie6, in
or"er to ens%re that the pro"%(ts an" 02-pro"%(ts are "ispose" o/ at the
0est pri(es possi0&eG e9en (opies o/ sa&es a'ree$ents ha9e to 0e s%0$itte"
to an" re'istere" 6ith MGB! An" the (ontra(tor is $an"ate" to open its
0oo7s o/ a((o%nts an" re(or"s /or s(r%tin2, so as to ena0&e the State to
"eter$ine i/ the 'o9ern$ent share has 0een /%&&2 pai"!
The State $a2 &i7e6ise (o$pe& the (ontra(torIs (o$p&ian(e 6ith
$an"ator2 re?%ire$ents on $ine sa/et2, hea&th an" en9iron$enta&
prote(tion, an" the %se o/ anti-po&&%tion te(hno&o'2 an" /a(i&ities!
Moreo9er, the (ontra(tor is a&so o0&i'ate" to assist in the "e9e&op$ent o/
the $inin' (o$$%nit2 an" to pa2 ro2a&ties to the in"i'eno%s peop&es
(on(erne"!
Can(e&&ation o/ the <TAA $a2 0e the pena&t2 /or 9io&ation o/ an2
o/ its ter$s an" (on"itions an"Kor non(o$p&ian(e 6ith stat%tes or
re'%&ations! This 'enera&, a&&-aro%n", $%&tip%rpose san(tion is no tri/&in'
$atter, espe(ia&&2 to a (ontra(tor 6ho $a2 ha9e 2et to re(o9er the tens or
h%n"re"s o/ $i&&ions o/ "o&&ars s%n7 into a $inin' proFe(t!
O9era&&, (onsi"erin' the pro9isions o/ the stat%te an" the
re'%&ations F%st "is(%sse", 6e 0e&ie9e that the State "e/inite&2 possesses
the $eans 02 6hi(h it (an ha9e the %&ti$ate 6or" in the operation o/ the
enterprise, set "ire(tions an" o0Fe(ti9es, an" "ete(t "e9iations an"
non(o$p&ian(e 02 the (ontra(torG &i7e6ise, it has the (apa0i&it2 to en/or(e
(o$p&ian(e an" to i$pose san(tions, sho%&" the o((asion there/or arise!
In other 6or"s, the <TAA (ontra(tor is not /ree to "o 6hate9er it
p&eases an" 'et a6a2 6ith itG on the (ontrar2, it 6i&& ha9e to /o&&o6 the
'o9ern$ent &ine i/ it 6ants to sta2 in the enterprise! Ine&%(ta0&2 then, RA
345+ an" .AO 4,-5* 9est in the 'o9ern$ent $ore than a s%//i(ient "e'ree
o/ (ontro& an" s%per9ision o9er the (on"%(t o/ $inin' operations!

F!4-0+ S4820'(0*6, I224,9 T+, P-!/,- I(0,-/-,0'0*!( !3 0+,
C!(20*040*!(': P+-'2, BA7-,,@,(02 I(6!:6*(7 E*0+,- T,.+(*.': !-
F*('(.*': A22*20'(.,
In interpretin' the /irst an" /o%rth para'raphs o/ Se(tion +, Arti(&e JII
o/ the Constit%tion, petitioners set /orth the ar'%$ent that /orei'n
(orporations are 0arre" /ro$ $a7in' "e(isions on the (on"%(t o/ operations
an" the $ana'e$ent o/ the $inin' proFe(t! The /irst para'raph o/ Se(tion +,
Arti(&e JII rea"s:
- - - The e-p&oration, "e9e&op$ent, an" %ti&i>ation o/ nat%ra&
reso%r(es sha&& 0e %n"er the /%&& (ontro& an" s%per9ision o/ the State! The
State $a2 "ire(t&2 %n"erta7e s%(h a(ti9ities, or it $a2 enter into (o-
pro"%(tion, Foint 9ent%re, or pro"%(tion sharin' a'ree$ents 6ith <i&ipino
(iti>ens, or (orporations or asso(iations at &east si-t2 per(ent%$ o/ 6hose
(apita& is o6ne" 02 s%(h (iti>ens! S%(h a'ree$ents $a2 0e /or a perio"
not e-(ee"in' t6ent2 /i9e 2ears, rene6a0&e /or not $ore than t6ent2 /i9e
2ears, an" %n"er s%(h ter$s an" (on"itions as $a2 0e pro9i"e" 02 &a6 - -
-!
The /o%rth para'raph o/ Se(tion +, Arti(&e JII pro9i"es:
The Presi"ent $a2 enter into a'ree$ents 6ith /orei'n-o6ne"
(orporations in9o&9in' either te(hni(a& or /inan(ia& assistan(e /or &ar'e
s(a&e e-p&oration, "e9e&op$ent, an" %ti&i>ation o/ $inera&s, petro&e%$, an"
other $inera& oi&s a((or"in' to the 'enera& ter$s an" (on"itions pro9i"e"
02 &a6, 0ase" on rea& (ontri0%tions to the e(ono$i( 'ro6th an" 'enera&
6e&/are o/ the (o%ntr2 - - -!
Petitioners $aintain that the /irst para'raph 0ars a&iens an" /orei'n-
o6ne" (orporations /ro$ enterin' into an2 "ire(t arran'e$ent 6ith the
'o9ern$ent in(&%"in' those 6hi(h in9o&9e (o-pro"%(tion, Foint 9ent%re or
pro"%(tion sharin' a'ree$ents! The2 &i7e6ise insist that the /o%rth
para'raph a&&o6s /orei'n-o6ne" (orporations to parti(ipate in the &ar'e-s(a&e
e-p&oration, "e9e&op$ent an" %ti&i>ation o/ nat%ra& reso%r(es, 0%t s%(h
parti(ipation, ho6e9er, is $ere&2 &i$ite" to an a'ree$ent /or either /inan(ia&
or te(hni(a& assistan(e on&2!
A'ain, this iss%e has a&rea"2 0een s%((in(t&2 passe" %pon 02 this
Co%rt in ,a Bugal'B-,aan .ri/al Association, nc. v. Ramos!
11
In
"is(re"itin' s%(h ar'%$ent, the Co%rt ratio(inate":
Petitioners (&ai$ that the phrase ?agreements < < < involving eit!er
tec!nical or financial assistance@ si$p&2 $eans te(hni(a& assistan(e or
/inan(ia& assistan(e a'ree$ents, nothin' $ore an" nothin' e&se! The2
insist that there is no a$0i'%it2 in the phrase, an" that a p&ain rea"in' o/
para'raph 5 ?%ote" a0o9e &ea"s to the ines(apa0&e (on(&%sion that 6hat a
/orei'n-o6ne" (orporation $a2 enter into 6ith the 'o9ern$ent is $ere&2
an a'ree$ent /or eit!er /inan(ia& or te(hni(a& assistan(e only, /or the
&ar'e-s(a&e e-p&oration, "e9e&op$ent an" %ti&i>ation o/ $inera&s,
petro&e%$ an" other $inera& oi&sG s%(h a &i$itation, the2 ar'%e, e-(&%"es
/orei'n $ana'e$ent an" operation o/ a $inin' enterprise!
This restri(ti9e interpretation, petitioners 0e&ie9e, is in &ine 6ith the
'enera& po&i(2 en%n(iate" 02 the Constit%tion reser9in' to <i&ipino (iti>ens
an" (orporations the %se an" enFo2$ent o/ the (o%ntr2Is nat%ra& reso%r(es!
The2 $aintain that this Co%rtIs .e(ision o/ an%ar2 +3, +**5 (orre(t&2
"e(&are" the HMCP <TAA, a&on' 6ith pertinent pro9isions o/ RA 345+,
9oi" /or a&&o6in' a /orei'n (ontra(tor to ha9e "ire(t an" e-(&%si9e
$ana'e$ent o/ a $inin' enterprise! A&&o6in' s%(h a pri9i&e'e not on&2
r%ns (o%nter to the A/%&& (ontro& an" s%per9isionB that the State is
(onstit%tiona&&2 $an"ate" to e-er(ise o9er the e-p&oration, "e9e&op$ent
an" %ti&i>ation o/ the (o%ntr2Is nat%ra& reso%r(esG "oin' so a&so 9ests in the
/orei'n (o$pan2 A0ene/i(ia& o6nershipB o/ o%r $inera& reso%r(es! It 6i&&
0e re(a&&e" that the .e(ision o/ an%ar2 +3, +**5 >eroe" in on
A$ana'e$ent or other /or$s o/ assistan(eB or other a(ti9ities asso(iate"
6ith the Aser9i(e (ontra(tsB o/ the $artia& &a6 re'i$e, sin(e ?t!e
management or operation of mining activities /y foreign contractors,
2!ic! is t!e primary feature of service contracts, 2as precisely t!e evil
t!at t!e drafters of t!e 0ABC Constitution soug!t to eradicate.@
- - - -
11
I"!, pp! 8*8-8*1!
He "o not see ho6 app&2in' a stri(t&2 &itera& or ver/a legis
interpretation o/ para'raph 5 (o%&" ine-ora0&2 &ea" to the (on(&%sions
arri9e" at in the ponencia. :irst, the "ra/tersI (hoi(e o/ 6or"s -- their %se
o/ the phrase agreements < < < involving eit!er tec!nical or financial
assistance -- "oes not in"i(ate the intent to e<clude other $o"es o/
assistan(e! The "ra/ters opte" to %se involving 6hen the2 (o%&" ha9e
si$p&2 sai" agreements for financial or tec!nical assistance, i/ that 6as
their intention to 0e'in 6ith! In this (ase, the &i$itation 6o%&" 0e 9er2
(&ear an" no /%rther "e0ate 6o%&" ens%e!
In (ontrast, the %se o/ the 6or" Ain9o&9in'B si'ni/ies the
/!22*8*:*01 !3 0+, *(.:42*!( !3 !0+,- 3!-@2 !3 '22*20'(., !- '.0*6*0*,2
ha9in' to "o 6ith, other6ise re&ate" to or (o$pati0&e 6ith /inan(ia& or
te(hni(a& assistan(e! The 6or" Ain9o&9in'B as %se" in this (onte-t has
three (onnotations that (an 0e "i//erentiate" th%s: one, the sense o/
A(on(ernin',B Aha9in' to "o 6ith,B or Aa//e(tin'BG t2o, Aentai&in',B
Are?%irin',B Ai$p&2in'B or Ane(essitatin'BG an" t!ree, Ain(&%"in',B
A(ontainin'B or A(o$prisin'!B
P&ain&2, none o/ the three (onnotations (on9e2 a sense o/
e-(&%si9it2! Moreo9er, the 6or" Ain9o&9in',B 6hen %n"erstoo" in the
sense o/ Ain(&%"in',B as in including tec!nical or financial assistance,
ne(essari&2 i$p&ies that there are activities ot!er t!an those that are 0ein'
in(&%"e"! In other 6or"s, i/ an a'ree$ent includes te(hni(a& or /inan(ia&
assistan(e, there is apart /ro$ s%(h assistan(e -- so$ethin' e&se a&rea"2 in,
an" (o9ere" or $a2 0e (o9ere" 02, the sai" a'ree$ent!
In short, it a&&o6s /or the possi0i&it2 that $atters, other than those
e-p&i(it&2 $entione", (o%&" 0e $a"e part o/ the a'ree$ent! Th%s, 6e are
no6 &e" to the (on(&%sion that the %se o/ the 6or" Ain9o&9in'B i$p&ies that
these a'ree$ents 6ith /orei'n (orporations are not &i$ite" to $ere
/inan(ia& or te(hni(a& assistan(e! The "i//eren(e in sense 0e(o$es 9er2
apparent 6hen 6e F%-tapose Aa'ree$ents for te(hni(a& or /inan(ia&
assistan(eB a'ainst Aa'ree$ents including te(hni(a& or /inan(ia&
assistan(e!B This $%(h is %na&tera0&2 (&ear in a ver/a legis approa(h!
Second, i/ the rea& intention o/ the "ra/ters 6as to (on/ine /orei'n
(orporations to /inan(ia& or te(hni(a& assistan(e an" nothin' $ore, their
&an'%a'e 6o%&" ha9e (ertain&2 0een so %n$ista7a0&2 restri(ti9e an"
strin'ent as to &ea9e no "o%0t in an2oneIs $in" a0o%t their tr%e intent! <or
e-a$p&e, the2 6o%&" ha9e %se" the senten(e foreign corporations are
a/solutely pro!i/ited from involvement in t!e management or operation of
mining or similar ventures or 6or"s o/ si$i&ar i$port! A sear(h /or s%(h
strin'ent 6or"in' 2ie&"s ne'ati9e res%&ts! Thus, we come to the
inevitable conclusion that there was a conscious and deliberate decision
to avoid the use of restrictive wording that bespeaks an intent not to use
the expression agreements x x x involving either technical or financial
assistance in an exclusionary and limiting manner.
F*30+ S4820'(0*6, I224,9 S,-6*., C!(0-'.02 N!0 D,.!(20*040*!(':*C,)
Last&2, petitioners stress that the ser9i(e (ontra(t re'i$e %n"er the
843) Constit%tion is e-press&2 prohi0ite" %n"er the 84=3 Constit%tion as the
ter$ ser9i(e (ontra(ts /o%n" in the /or$er 6as "e&ete" in the &atter to a9oi"
the (ir(%$9ention o/ (onstit%tiona& prohi0itions that 6ere pre9a&ent in the
84=3 Constit%tion! A((or"in' to the$, the /ra$ers o/ the 84=3 Constit%tion
on&2 inten"e" /or /orei'n-o6ne" (orporations to pro9i"e either te(hni(a&
assistan(e or /inan(ia& assistan(e! Upon per%sa& o/ the CAMC <TAA,
petitioners are o/ the opinion that the sa$e is a rep&i(a o/ the ser9i(e (ontra(t
a'ree$ents that the present (onstit%tion a&&e'e"&2 prohi0it!
A'ain, this (ontention is not 6e&&-ta7en! The $ere /a(t that the ter$
ser9i(e (ontra(ts /o%n" in the 843) Constit%tion 6as not (arrie" o9er to the
present (onstit%tion, sans an2 (ate'ori(a& state$ent 0annin' ser9i(e
(ontra(ts in $inin' a(ti9ities, "oes not $ean that ser9i(e (ontra(ts as
%n"erstoo" in the 843) Constit%tion 6as era"i(ate" in the 84=3
Constit%tion!
1,
The 84=3 Constit%tion a&&o6s the (ontin%e" %se o/ ser9i(e
(ontra(ts 6ith /orei'n (orporations as (ontra(tors 6ho 6o%&" in9est in an"
operate an" $ana'e e-tra(ti9e enterprises, s%0Fe(t to the /%&& (ontro& an"
s%per9ision o/ the StateG this ti$e, ho6e9er, sa/et2 $eas%res 6ere p%t in
p&a(e to pre9ent a0%ses o/ the past re'i$e!
13
He r%&e", th%s:
To o%r $in", ho6e9er, s%(h intent (annot 0e "e/initi9e&2 an"
(on(&%si9e&2 esta0&ishe" /ro$ the $ere /ai&%re to (arr2 the sa$e
e-pression or ter$ o9er to the ne6 Constit%tion, a0sent a $ore spe(i/i(,
e-p&i(it an" %ne?%i9o(a& state$ent to that e//e(t! Hhat petitioners see7 :a
(o$p&ete 0an on /orei'n parti(ipation in the $ana'e$ent o/ $inin'
operations, as pre9io%s&2 a&&o6e" 02 the ear&ier Constit%tions; is nothin'
short o/ 0rin'in' a0o%t a $o$ento%s sea (han'e in the e(ono$i( an"
"e9e&op$enta& po&i(iesG an" the /%n"a$enta&&2 (apita&ist, /ree-enterprise
phi&osoph2 o/ o%r 'o9ern$ent! He (annot i$a'ine s%(h a radical s!ift
0ein' %n"erta7en 02 o%r 'o9ern$ent, to the 'reat preF%"i(e o/ the $inin'
se(tor in parti(%&ar an" o%r e(ono$2 in 'enera&, $ere&2 on the 0asis o/ the
1,
I"!
13
I"!
omission o/ the ter$s service contract /ro$ or the /ai&%re to (arr2 the$
o9er to the ne6 Constit%tion! There has to 0e a $%(h $ore "e/inite an"
e9en %nar'%a0&e 0asis /or s%(h a "rasti( re9ersa& o/ po&i(ies!
- - - -
The /ore'oin' are $ere /ra'$ents o/ the /ra$ersI &en'th2
"is(%ssions o/ the pro9ision "ea&in' 6ith agreements < < < involving eit!er
tec!nical or financial assistance, 6hi(h %&ti$ate&2 0e(a$e para'raph 5 o/
Se(tion + o/ Arti(&e JII o/ the Constit%tion! Be2on" an2 "o%0t, the
$e$0ers o/ the ConCo$ 6ere a(t%a&&2 "e0atin' a0o%t the $artia&-&a6-era
2,-6*., .!(0-'.02 for 2!ic! t!ey 2ere crafting '//-!/-*'0, 2'3,74'-)2!
In the 9otin' that &e" to the appro9a& o/ Arti(&e JII 02 the
ConCo$, the e-p&anations 'i9en 02 Co$$issioners Gas(on, Gar(ia an"
Ta"eo in"i(ate" that the2 ha" 9ote" to reFe(t this pro9ision on a((o%nt o/
their o0Fe(tions to the A(onstit%tiona&i>ationB o/ the Aser9i(e (ontra(tB
(on(ept!
Mr! Gas(on sai", ? felt t!at if 2e 2ould constitutionali)e any
provision on service contracts, t!is s!ould al2ays /e 2it! t!e concurrence
of Congress and not guided only /y a general la2 to /e promulgated /y
Congress.@ Mr! Gar(ia e-p&aine", ?Service contracts are given
constitutional legitimi)ation in Sec. 7, even 2!en t!ey !ave /een proven to
/e inimical to t!e interests of t!e nation, providing, as t!ey do, t!e legal
loop!ole for t!e e<ploitation of our natural resources for t!e /enefit of
foreign interests.@ Li7e6ise, Mr! Ta"eo (ite" inter alia the /a(t that
ser9i(e (ontra(ts (ontin%e" to s%0sist, ena0&in' /orei'n interests to 0ene/it
/ro$ o%r nat%ra& reso%r(es! I0 A'2 +'-):1 :*?,:1 0+'0 0+,2, 7,(0:,@,(
A!4:) +'6, !8D,.0,) 2! 20-,(4!42:1, +') 0+, /-!6*2*!( .'::,) 3!- @,-,
0,.+(*.': !- 3*('(.*': '22*20'(., '() (!0+*(7 @!-,.
The "e&i0erations o/ the ConCo$ an" so$e (o$$issionersI
e-p&anation o/ their 9otes &ea9e no roo$ /or "o%0t that the ser9i(e (ontra(t
(on(ept pre(ise&2 %n"erpinne" the (o$$issionersI %n"erstan"in' o/ the
Aa'ree$ents in9o&9in' either te(hni(a& or /inan(ia& assistan(e!B
- - - -
<ro$ the /ore'oin', 6e are i$pe&&e" to (on(&%"e that the phrase
agreements involving eit!er tec!nical or financial assistance, re/erre" to
in para'raph 5, are in /a(t service contracts. B%t %n&i7e those o/ the 843)
9ariet2, the ne6 ones are 0et6een /orei'n (orporations a(tin' as
(ontra(tors on the one han"G an" on the other, the 'o9ern$ent as prin(ipa&
or Ao6nerB o/ the 6or7s! In the ne6 ser9i(e (ontra(ts, the /orei'n
(ontra(tors pro9i"e (apita&, te(hno&o'2 an" te(hni(a& 7no6-ho6, an"
$ana'eria& e-pertise in the (reation an" operation o/ &ar'e-s(a&e
$inin'Ke-tra(ti9e enterprisesG an" the 'o9ern$ent, thro%'h its a'en(ies
:.ENR, MGB;, a(ti9e&2 e-er(ises (ontro& an" s%per9ision o9er the entire
operation!
- - - -
It is there/ore reasona0&e an" %na9oi"a0&e to $a7e the /o&&o6in'
(on(&%sion, 0ase" on the a0o9e ar'%$ents! As 6ritten 02 the /ra$ers an"
rati/ie" an" a"opte" 02 the peop&e, the Constit%tion a&&o6s the (ontin%e"
%se o/ ser9i(e (ontra(ts 6ith /orei'n (orporations -- as (ontra(tors 6ho
6o%&" in9est in an" operate an" $ana'e e-tra(ti9e enterprises, s%0Fe(t to
the /%&& (ontro& an" s%per9ision o/ the State -- sans the a0%ses o/ the past
re'i$e! The p%rpose is (&ear: to "e9e&op an" %ti&i>e o%r $inera&,
petro&e%$ an" other reso%r(es on a &ar'e s(a&e /or the i$$e"iate an"
tan'i0&e 0ene/it o/ the <i&ipino peop&e!
1=
H#ERE<ORE, the instant petition /or prohi0ition an" mandamus is
here02 .ISMISSE.! Se(tion 3, o/ Rep%0&i( A(t No! 345+ an" Se(tion 8*3
o/ .AO 4,-5*G Rep%0&i( A(t No! 345+ an" its I$p&e$entin' R%&es an"
Re'%&ations (ontaine" in .AO 4,-5* L inso/ar as the2 re&ate to /inan(ia& an"
te(hni(a& assistan(e a'ree$ents re/erre" to in para'raph 5 o/ Se(tion + o/
Arti(&e JII o/ the Constit%tion are NOT UNCONSTITUTIONAL!
SO ORDERED.
MINITA V. CHICO-NAZARIO
Asso(iate %sti(e
HE CONCUR:
ARTEMIO V. PANGANIBAN
Chie/ %sti(e
Chairperson
CONSUELO YNARES-SANTIAGO MA. ALICIA AUSTRIA-
MARTINEZ
Asso(iate %sti(e Asso(iate %sti(e
1=
I"!, pp! 8*1-8+=!
ROMEO J. CALLEJO, SR.
Asso(iate %sti(e
C E R T I < I C A T I O N
P%rs%ant to Arti(&e @III, Se(tion 8) o/ the Constit%tion, it is here02
(erti/ie" that the (on(&%sions in the a0o9e .e(ision 6ere rea(he" in
(ons%&tation 0e/ore the (ase 6as assi'ne" to the 6riter o/ the opinion o/ the
Co%rtIs .i9ision!
ARTEMIO V. PANGANIBAN
Chie/ %sti(e