Case No.

13
LEAGUE OF PROVINCES OF THE PHILIPPINES v DENR
G.R. No. 175368
April 11, 2013
Facts:

March 28, 1996 - Golden Falcon Mineral Exploration Corporation (Golden Falcon) filed
with the DENR Mines and Geosciences Bureau Regional Office (MGB RO) an
Application for Financial and Technical Assistance Agreement (FTAA) covering an area
of 61,136 hectares situated in the Municipalities of San Miguel, San Ildefonso,
Norzagaray and San Jose del Monte, Bulacan.

April 29, 1998 - the MGB RO issued an Order denying Golden Falcon's for failure to
secure area clearances. Golden Falcon filed an appeal with the DENR.

February 10, 2004 - while the appeal was pending, Eduardo D. Mercado, Benedicto S.
Cruz, Gerardo R. Cruz and Liberato Sembrano filed with the Provincial Environment
and Natural Resources Office (PENRO) of Bulacan their respective Applications for
Quarry Permit which covered the same area subject of Golden Falcon's Application for
Financial and Technical Assistance Agreement.

July 16, 2004 - the MGB-Central Office (MGB-CO) issued an Order denying Golden
Falcon's appeal.

September 13, 2004 - Atlantic Mines and Trading Corporation (AMTC) filed with the
PENRO of Bulacan an Application for Exploration Permit (AEP) area covered by Golden
Falcon's Application.

Confusion of rights resulted from the overlapping applications of AMTC and the
persons applying for quarry permits.

October 19, 2004 - upon query by MGB-RO Director Cabantog, DENR-MGB Director
Ramos stated that the denial of Golden Falcons application became final on August
11, 2004, or fifteen days after Golden Falcon received the order of denial of its
application. Hence, the area of Golden Falcons application became open to permit
applications only on that date.

Subsequently, the Provincial Legal Officer of Bulacan issued a legal opinion on the
issue, stating that the subject area became open for new applications on the date of
the first denial on April 29, 1998 (MGB-ROs order of denial), as MGB-COs order of
denial on July 16, 2004 was a mere reaffirmation of the MGB-ROs April 29 order;
hence, the reckoning period should be April 29.

Based on this legal opinion, MGB-RO Director Cabantog endorsed the applications for
quarry permit, now apparently converted to applications for small-scale mining
permit, to the Governor of Bulacan.

PENRO of Bulacan recommended to the Governor the approval of said

applications.

Eventually, the Governor issued the small-scale mining permits.

AMTC appealed to the DENR Secretary

The DENR Secretary decided in favor of the AMTC and nullified and cancelled
the governors issuance of small-scale mining permits. It agreed with DENR-MGB
Director Ramos that the area was open to mining location only on August 11, 2004
(15 days after the MGB-CO denial). Hence, the applications for quarry permit
filed
on February 10, 2004 were null as these were filed when the area was still closed to
mining
location. On the other hand, AMTC filed its application when the area
was already open to other mining applicants; hence, its application was valid. The
small-scale mining permits were also issued in violation of
Section 4 of R.A. No.
7076 and beyond the authority of the Governor pursuant to Sec. 43 of RA 7942
because the area was never proclaimed to be under the small-scale mining
program.
Hence, petitioner League of Provinces filed this petition. Petitioner is a duly organized
league of local governments incorporated under R.A. No. 7160. Petitioner declares
that it is composed of 81 provincial governments, including the Province of Bulacan.
It states that this is not an action of one province alone, but the collective action of

all provinces through the League, as a favorable ruling will not only benefit one
province, but all provinces and all local governments.
Issues:

WHETHER OR NOT SECTION 17(B)(3)(III) OF THE, 1991 LOCAL GOVERNMENT CODE

AND SECTION 24 OF THE PEOPLE'S SMALL-SCALE MINING ACT OF 1991 ARE
UNCONSTITUTIONAL FOR PROVIDING FOR EXECUTIVE CONTROL AND INFRINGING
UPON THE LOCAL AUTONOMY OF PROVINCES.

WHETHER OR NOT THE ACT OF RESPONDENT [DENR] IN NULLIFYING, VOIDING AND

CANCELLING THE SMALL-SCALE MINING PERMITS AMOUNTS TO EXECUTIVE CONTROL,
NOT MERELY SUPERVISION AND USURPS THE DEVOLVED POWERS OF ALL PROVINCES.

Ruling:
Petition denied.
1. NO.

Control of the DENR over small-scale mining in the provinces is granted by three
statutes: (1) R.A. 7061 or The Local Government Code of 1991; (2) R.A. 7076 or the
People's Small Scale Mining Act of 1991; and (3) R.A. No. 7942 or the Philippine Mining
Act of 1995.

The Constitutional guarantee of local autonomy in the Article X, Sec. 2 of the Constitution
refers to the administrative autonomy of the LGUs or the decentralization of government
authority. Administrative autonomy may involve devolution of powers, but it is still
subject to limitations, like following national policies or standards and those provided by
the Local Government Code, as the structuring of LGUs and the allocation of
powers/responsibilities/resources among the LGUs and local officials are placed by the
Constitution to Congress under Article X Section 3.

It is the DENR which is incharge of carrying out the States constitutional mandate to
control and supervise the exploration, development and utilization of the countrys
natural resources, pursuant to the provisions of Section 17, b(3)(III) of the LGC. Hence,
the enforcement of the small-scale mining law by the provincial government is subject to
the supervision, control and review of the DENR. The LGC did not fully devolve to the
provincial government the enforcement of the small-scale mining law.

RA 7076 or the Peoples Small-Scale Mining program was established to be implemented

by the DENR Secretary in coordination with other government agencies (Section 4, RA
7076). Section 24 of the law makes the Provincial/ Mining Regulatory Board under the
direct supervision and control of the Secretary, its powers and functions subject to
review by the same.

DENR Administrative Order No. 34 (1992) which contains the IRR of RA 7076 likewise
provides that the DENR Secretary shall exercise direct supervision and control over the
Peoples Small-Scale Mining Program, and that the Provincial/City Mining Regulatory
Boards (PMRB) powers and functions shall be subject to review by the DENR Secretary.

2. NO.

DENR Secretary was granted the power of review in the PMRBs resolution of disputes
under Sec. 24 of RA 7076 and Section 22 of its IRR. The decision of the DENR Secretary
to nullify and cancel the Governors issuance of permits emanated from its power of
review under RA 7076 and its IRR. Its power to review and decide on the validity of the
issuance of the Small-Scale Mining Permits by the Provincial Governor is a quasi-judicial
function which involves the determination of what the law is and what the legal rights of
the contending parties are, with respect to the matter in controversy and on the basis
thereof and the facts obtaining, the adjudication of their respective rights.

The DENR Secretary exercises quasi-judicial function under RA 7076 and its IRR to the
extent necessary in settling disputes, conflicts, or litigations over conflicting claims. This
quasi-judicial power of the DENR can neither be equated with substitution of judgment
of the Provincial Governor in issuing Small-Scale Mining Permits nor control over the
said act of the Provincial Governor as it is a determination of the rights of the AMTC over
conflicting claims based on the law.