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LAW ON NATURAL RESOURCES REVIEWER citizens.

Such agreements may be for a period not exceeding


twenty-five years, renewable for not more than twenty-five years,
and under such terms and conditions as may be provided by law.
Blacks Law Definition of Natural Resources In cases of water rights for irrigation, water supply fisheries, or
industrial uses other than the development of water power,
Blacks first definition in his 7th ed. is any material from nature beneficial use may be the measure and limit of the grant.
having potential economic value or providing for the sustenance
of life, such as timber, minerals, oil, water and wildlife. The The State shall protect the nation's marine wealth in its
second definition is environmental features that serve a archipelagic waters, territorial sea, and exclusive economic zone,
communitys well-being or recreational interests, such as parks. and reserve its use and enjoyment exclusively to Filipino citizens.

Blacks (Sixth edition, 1990), defined natural resources as any The Congress may, by law, allow small-scale utilization of natural
material in its native state which when extracted has economic resources by Filipino citizens, as well as cooperative fish farming,
value. Basically it states that for a substance or feature to be with priority to subsistence fishermen and fish- workers in rivers,
classified as a natural resource, it must offer potential or actual lakes, bays, and lagoons.
economic value, creating wealth.
The President may enter into agreements with foreign-owned
corporations involving either technical or financial assistance for
Definition of Natural Resources : Other Websites large-scale exploration, development, and utilization of minerals,
petroleum, and other mineral oils according to the general terms
Natural resource is any naturally occurring substance or feature of and conditions provided by law, based on real contributions to the
the environment (physical or biological) that, while not created by economic growth and general welfare of the country. In such
human effort, can be exploited by humans to satisfy their needs or agreements, the State shall promote the development and use of
wants. Many of such resources are our life line such as water, air local scientific and technical resources.
and solar radiation, which are essential elements for the existence
of all the flora and fauna.
The Concept of Jure Regalia (Regalian Doctrine)

Two basic conditions for a substance or feature to be classified as This principle means that all natural wealth - agricultural, forest or
a natural resource: First, the resource must exist naturally in the timber, and mineral lands of the public domain and all other
environment; that is, not synthetically produced by human beings, natural resources belong to the State. Thus, even if the private
such as in a laboratory or factory. Second, the resource must be person owns the property where minerals are discovered, his
able to be exploited by humans to directly satisfy a need or want. ownership for such does not give him the right to extract or utilize
said minerals without permission from the state to which such
Natural resources may either be: minerals belong.
a) Biotic resources which are derived from biosphere such
as the forests, marine organism, animals, birds and The abovementioned provision provides that except for
their products including mineral fuels come in this agricultural lands for public domain which alone may be alienated,
category, or forest or timber, and mineral lands, as well as all other natural
b) Abiotic which includes water, air, land and elemental resources must remain with the State, the exploration,
ores such as gold, silver, copper, iron etc. development and utilization of which shall be subject to its full
control and supervision albeit allowing it to enter into
It may also be either be renewable and non-renewable resources. coproduction, joint venture or production-sharing agreements, or
A renewable resource grows again or comes back again after we into agreements with foreign-owned corporations involving
use it. For example, sunlight, water, and trees are renewable technical or financial assistance for large-scale exploration,
resources. A non-renewable resource is a resource that does not development, and utilization
grow or come back, or a resource that would take a very long time
to come back. For example, coal is a non-renewable resource. Cases

1. Cruz vs. Secretary of Environment and Natural


Regalian Doctrine Resource (2000)

Art XII, Sec. 2 of the 1987 Constitution Facts:

All lands of the public domain, waters, minerals, coal, petroleum, Petitioners Isagani Cruz and Cesar Europa filed a case
and other mineral oils, all forces of potential energy, fisheries, for prohibition and mandamus as citizen and taxpayers,
forests or timber, wildlife, flora and fauna, and other natural assailing the constitutionality of certain provisions of
resources are owned by the State. With the exception of the Indigenous Peoples Rights Act (IPRA) and its
agricultural lands, all other natural resources shall not be implementing Rules on ground that they amount to an
alienated. The exploration, development, and utilization of natural unlawful deprivation of the States ownership over
resources shall be under the full control and supervision of the lands of public domain and minerals and other natural
State. The State may directly undertake such activities, or it may resources, in violation of the Regalian doctrine.
enter into co-production, joint venture, or production-sharing o They likewise contend that providing an all-
agreements with Filipino citizens, or corporations or associations encompassing definition of ancestral
at least sixty per centum of whose capital is owned by such domain and ancestral lands which might
even include private lands within the areas This case answered the question of which is the better
violate the rights of private land owners. basis for ownership of land: long-time occupation or
o Petitioners likewise contend that provisions paper title.
of the IPRA defining the jurisdiction and
powers of the NCIP violate due process of In this case, plaintiffs entered into peaceful occupation
law. of the subject land while defendants ourchased the
o Lastly, petitioners assail the validity of NCIP land in 1892. The Court ruled that from 1860 to 1892
Administrative Order No. 1 which provides there was no law in force in the Philippines by which
that the administrative relationship of the plaintiffs could obtain ownership by prescription,
NCIP to the Office of the President (OP) as without any action of the State, otherwise the same
lateral and autonomous relationship for shall remain the property of the State. Thus, it required
purposes of policy coordination, thereby settlers on public lands to obtain titles deeds from the
infringing upon the Presidents power of State.
control over the executive department.

A groups of intervenors, including Sen. Flavier, one of C. Public Land Acts and the Torrens System
the authors of the IPRA and members of 112 groups of
indigenous peoples prayed for the dismissal of the Act No. 926, the first Public Land Act, was passed in
petition. pursuance with the Philippine Bill of 1902, governing
The Commission of Human Rights likewise asserts that the disposition of land of public domain. It prescribe
IPRA is an expression of the principle of parens patriae rules for the homesteading, selling and leasing of
and that the State has the responsibility to protect the portions of the public domain, and to enable persons
rights of the indigenous peoples. to perfect their titles to public lands. It also provided
for the issuance of patents to certain native settlers
Decision: upon public lands.

The votes of the Court are split where 7 voted to dismiss the Act No. 926 was superseded by the Act 2874, the
petition and 7 voted to grant. As the votes were equally divided second Public Land Act, passed under the Jones Law. it
and the necessary majority was not obtained, the petition was limited the exploitation of agricultural lands to Filipinos
dismissed. and Americans and citizens of other countries which
gave the Filipinos the same privileges.

SEPARATE OPINION (Justice Puno) It was amended by Commonwealth Act No. 141which
remains the present Public Land Law.
I. The Development of the Regalian Doctrine in the Philippine
Legal System Grants of public land were brought under the
operation of the Torrens System under Act 496 which
placed all public and private lands in the Philippines
A. The Laws of Indies under the Torrens system, requiring that the
government issue an official certificate of title attesting
to the fact that the person named is the owner of the
The Regalian Doctrine or jura regalia is a Western property described.
legal concept first introduced by the Spaniards through
the Laws of Indies and the Royal Cedulas. All lands
became the exclusive dominion of the Spanish Crown, D. The Philippine Constitutions
and the Spanish Government took charge of
distributing the lands by issuing royal grants and The Regalian Doctrine was enshrined in the 1935, 1973
concessions to Spaniards. Private land titles can only be and 1987 Constitutions which basically states that all
acquired from the government by purchase or other lands of the public domain as well as natural resources,
land grant from the Crown. whether on public or private land, belong to the State.
It is this concept of state ownership that petitioners
The Law of Indies was followed by the Mortgage Law claim is being violated by the IPRA.
of 1893 which provided for the systematic registration
of titles and deeds. The Maura Law of 1894 was the
last Spanish law promulgated in the Philippines, which II. The Indigenous Peoples Rights Act
required the registration of all agricultural lands;
otherwise the lands shall revert to the state.
The IPRA recognizes the existence of the indigenous cultural
communities or indigenous peoples as a distinct sector. It
grants these people the ownership and possession of their
ancestral domains and ancestral lands, and defines the
B. Valentin vs. Murciano extent of these lands and domains. Within their ancestral
domains and lands the ICCs/IPs are given the right to self-
governance and right to preserve their culture. To carry out
the policies of the ACT, the law created the National
Commission on Indigenous Peoples (NCIP) Ancestral domains are all areas belonging to ICCs/IPs held
under a claim of ownership, occupied or possessed by
A. Indigenous Peoples ICCs/IPs since time immemorial, continuously until the
present except when interrupted by war or force majeure. It
Indigenous Cultural Communities or Indigenous Peoples comprises of lands, inland waters, coastal areas, and natural
(ICCs/ IPs) refer to a group of people who have continuously resources therein and includes ancestral lands, forests,
lived as an organized community on communally bounded pastures, hunting grounds, burial grounds, and bodies of
and defined territory. These groups of peoples have actually water, mineral and other natural resources.
occupied, possessed and utilized their territories under claim
of ownership since time immemorial. Ancestral lands are lands held by the ICCs/ IPs under the
same conditions as ancestral domains except that these are
Their unit of government is the barangay. In a baranganic limited to lands, not merely occupied and possessed but are
society, the chiefs administered the lands in the name of the also utilized, including residential lots, rice terraces, or
barangay, there was no private property in land. When Islam paddies, private forests.
was introduced in the country in the archipelago of
Maguindanao, the Sultanate of Sulu claimed jurisdiction over The delineation of ancestral domains and lands is conferred
territorial areas. on the NCIP who shall issue a Certificate of Ancestral Domain
(CADT) upon finding that the application is meritorious, in
When Spaniards settled in the Philippines, Spanish the name of the community. Ancestral Lands outside the
missionaries were ordered to establish pueblos where ancestral domain, the NCIP issues a Certificate of Land Title
church would be constructed. All the new Christian converts (CALT). The CALTs and CADTs shall be registered in the
were required to construct their house around the church. Register of Deeds in the place where property is situated.
All lands lost by the old barangays in the process of pueblo
organization and all lands not assigned to the pueblos were B. Carino vs. Insular Government
declared to be lands of the Crown., and the natives were
stripped of their ancestral rights to the lands. On June 23, 1903, Mateo Cario went to the Court of Land
Registration to petition his inscription as the owner of a 146
The American government classified the Filipinos into two: hectare land hes been possessing in the then municipality of
Christian Filipinos and non-Christian Filipinos, not to Baguio. Mateo only presented possessory information and no
religious belief, but to geographical area, the latter referring other documentation. The State opposed the petition averring
to natives of the Philippines of a low grade of civilization, that the land is part of the US military reservation. The CLR ruled
usually living in tribal relationship. The Americans pursued a in favor of Mateo. The State appealed. Mateo lost. Mateo averred
policy of assimilation. They passed Act No. 253 creating the that a grant should be given to him by reason of immemorial use
bureau of Non-Christian Tribes to determine the most and occupation.
practicable means for bring about their advancement.
The US SC ruled in favor of Carino and ordered the registration of
The 1935 Constitution did not carry any policy on the non- the subject lands in his name. The court laid down the
Christian Filipinos. It was in the 1973 Constitution that the presumption of a certain title held as far back as memory went
State recognized the customs and interest of national and under a claim of private ownership. Land held by this title is
cultural communities in the formulation of state policies. presumed to never have been public land. The registration
requirement was not to confer title, but simply to establish it. In
In 1974, President Marcos promulgated PD 410 or the a nutshell, Cario enunciated the legal presumption that ancestral
Ancestral Lands Decree, providing for the issuance of land lands and domains were not part of the public domain, having
occupancy certificates to members of the national cultural maintained their character as private lands of the indigenous
communities. peoples since time immemorial

The Aquino government shifted from the policy of Why Carino doctrine is unique?
integration to one of preservation. She created the Office of Carino is the only case that specifically recognizes native title.
Muslim Affairs, Office of Northern Cultural Communities and Carino was cited by succeeding cases to support the concept of
the Office for Southern Cultural Communities all under the acquisitive prescription under the Public Land Act
OP.

The 1987 Constitution expressly guaranteed the rights of Other Separate Opinions:
tribal Filipinos to their ancestral domain and ancestral lands.

Justice Kapunan
III. THE PROVISIONS OF THE IPRA DO NOT Regalian theory doesnt negate the native title to lands held in
CONTRAVENE THE CONSTITUTION private ownership since time immemorial, adverting to
the landmark case of CARINO V. LOCAL GOVERNMENT, where the
US SC through Holmes held: xxx the land has been held by
A. Ancestral Domains and Ancestral Lands are the Private individuals under a claim of private ownership, it will be presumed
Property of the Indigenous Peoples and do not constitute to have been held in the same way from before the Spanish
Part of the Land of Public Domain conquest, and never to have been public land. Existence of native
titie to land, or ownership of land by Filipinos by virtue of March 30, 1999, PEA and AMARI signed an Amended
possession under a claim of ownership since time immemorial and Joint Agreement, which was approved by Pres. Estrada.
independent of any grant from the Spanish crown as an exception
to the theory of jure regalia Note:
The Amended Joint Venture Agreement: The subject matter of
Justice Puno: Carino case firmly established a concept of private the Amended JVA, as stated in its second Whereas clause, consists
land title that existed irrespective of any royal grant from the State of three properties, namely:
and was based on the strong mandate extended to the Islands via
the Philippine Bill of 1902. The IPRA recognizes the existence of
1. "[T]hree partially reclaimed and substantially eroded
ICCs/IPs as a distinct sector in the society. It grants this people the
islands along Emilio Aguinaldo Boulevard in Paranaque
ownership and possession of their ancestral domains and
and Las Pinas, Metro Manila, with a combined titled
ancestral lands and defines the extent of these lands and domains
area of 1,578,441 square meters;"
2. Chavez vs. Public Estates Authority (2002)1
2. "[A]nother area of 2,421,559 square meters
Facts: contiguous to the three islands;" and
The Phil govt (through the Commissioner of Public
Highways) signed a contract with the CDCP 3. "[A]t AMARI's option as approved by PEA, an
(Construction and Development Corporation of the additional 350 hectares more or less to regularize the
Philippines) to reclaim certain foreshore and offshore configuration of the reclaimed area."
areas of Manila Bay and for the construction of the
Manila-Cavite Coastal Road.
Pres. Marcos issued P.D. 1084 creating PEA (Public PEA confirms that the Amended JVA involves "the development of
Estates Authority) and transferred to it the lands the Freedom Islands and further reclamation of about 250
reclaimed in Manila Bay for the Manila-Cavite Road hectares x x x," plus an option "granted to AMARI to subsequently
and Reclamation Project (MCCRRP). reclaim another 350 hectares x x x."
Thereafter, Pres. Aquino issued Special Patent No.
3517, granting and transferring to PEA the parcels of In short, the Amended JVA covers a reclamation area of 750
land so reclaimed under the MCCRRP. A TCT was also hectares. Only 157.84 hectares of the 750-hectare reclamation
issued in the name of PEA covering 3 reclaimed islands project have been reclaimed, and the rest of the 592.15 hectares
known as the "Freedom Islands" (157.84 hectares) are still submerged areas forming part of Manila Bay.
located at the southern portion of the Manila-Cavite
Coastal Road, Paraaque City, which were part of these
Indisputably, under the Amended JVA, AMARI will acquire and
lands acquired by PEA.
own a maximum of 367.5 hectares of reclaimed land which will
PEA entered into a Joint Venture Agreement (JVA) with
be titled in its name.
AMARI (AMARI Coastal Bay and Development
Corporation), a private corporation, to develop the
Freedom Islands.
o However, the JVA also required the Issue:
reclamation of an additional 250 hectares of
submerged areas surrounding these islands Whether the stipulations in the Amended Joint Venture
to complete the configuration in the Master Agreement or the transfer to AMARI of certain lands reclaimed
Development Plan of the Southern and still to be reclaimed violate the 1987 Constitution.
Reclamation Project-MCCRRP.
o PEA and AMARI entered into the JVA Decision:
through negotiation without public bidding.
On June 8, 1995, then President Fidel V. Ramos,
through then Executive Secretary Ruben Torres, The SC summarized the conclusions as follows:
approved the JVA.
On November 29, 1996, then Senate President Maceda 1. The 157.84 hectares of reclaimed lands comprising
delivered a privilege speech denouncing the JVA as the the Freedom Islands, now covered by certificates of
"grandmother of all scams." title in the name of PEA, are alienable lands of the
Thus the Senate Committees investigated on the public domain. PEA may lease these lands to private
matter and concluded (1) the reclaimed lands PEA corporations but may not sell or transfer ownership of
seeks to transfer to AMARI under the JVA are lands of these lands to private corporations. PEA may only sell
the public domain which the government has not these lands to Philippine citizens, subject to the
classified as alienable lands and therefore PEA cannot ownership limitations in the 1987 Constitution and
alienate these lands; (2) the certificates of title existing laws.
covering the Freedom Islands are thus void, and (3) the
JVA itself is illegal.
2. The 592.15 hectares of submerged areas of Manila
Petitioner Frank Chavez, as a taxpayer, filed the instant
Bay remain inalienable natural resources of the public
Petition for Mandamus with Prayer for Issuance of a
domain until classified as alienable or disposable lands
Writ of Preliminary Injunction and TRO.
open to disposition and declared no longer needed for
1 public service. The government can make such
Two subsequent motions for reconsideration was filed and were classification and declaration only after PEA has
denied.
reclaimed these submerged areas. Only then can these Thereafter, Aquino proclaimed MO 415 applying RA
lands qualify as agricultural lands of the public domain, 6957 to SMDRP, among others.
which are the only natural resources the government o The same MO also established EXECOM and
can alienate. In their present state, the 592.15 hectares TECHCOM in the execution and evaluation
of submerged areas are inalienable and outside the of the plan, respectively, to be assisted by
commerce of man. the Public Estates Authority (PEA).
Notices of public bidding to become NHAs venture
3. Since the Amended JVA seeks to transfer to AMARI, partner for SMDRP were published in newspapers in
a private corporation, ownership of 77.34 hectares of 1992, from which R-II Builders, Inc. (RBI) won the
the Freedom Islands, such transfer is void for being bidding process.
contrary to Section 3, Article XII of the 1987 o Then-President Ramos authorized NHA to
Constitution which prohibits private corporations from enter into a Joint Venture Agreement with
acquiring any kind of alienable land of the public RBI.
domain. Under the JVA, the project involves the clearing of
Smokey Mountain for eventual development into a low
cost housing complex and industrial/commercial site.
4. Since the Amended JVA also seeks to transfer to o RBI is expected to fully finance the
AMARI ownership of 290.156 hectares of still development of Smokey Mountain and
submerged areas of Manila Bay, such transfer is void reclaim 40 hectares of the land at the
for being contrary to Section 2, Article XII of the 1987 Manila Bay Area.
Constitution which prohibits the alienation of natural o The latter together with the commercial
resources other than agricultural lands of the public area to be built on Smokey Mountain will be
domain. PEA may reclaim these submerged areas. owned by RBI as enabling components. If
Thereafter, the government can classify the reclaimed the project is revoked or terminated by the
lands as alienable or disposable, and further declare Government through no fault of RBI or by
them no longer needed for public service. Still, the mutual agreement, the Government shall
transfer of such reclaimed alienable lands of the public compensate RBI for its actual expenses
domain to AMARI will be void in view of Section 3, incurred in the Project plus a reasonable
Article XII of the 1987 Constitution which prohibits rate of return not exceeding that stated in
private corporations from acquiring any kind of the feasibility study and in the contract as of
alienable land of the public domain. the date of such revocation, cancellation, or
termination on a schedule to be agreed
Clearly, the Amended JVA violates glaringly Sections 2 and 3, upon by both parties.
Article XII of the 1987 Constitution. Under Article 1409 of the Civil To summarize, the SMDRP shall consist of Phase I and
Code, contracts whose "object or purpose is contrary to law," or Phase II.
whose "object is outside the commerce of men," are "inexistent o Phase I of the project involves clearing,
and void from the beginning." The Court must perform its duty to levelling-off the dumpsite, and construction
defend and uphold the Constitution, and therefore declares the of temporary housing units for the current
Amended JVA null and void ab initio. residents on the cleared and levelled site.
o Phase II involves the construction of a
fenced incineration area for the on-site
disposal of the garbage at the dumpsite.
3. Chavez vs. National Housing Authority (2007) Due to the recommendations done by the DENR after
evaluations done, the JVA was amended and restated
Facts: (now ARJVA) to accommodate the design changes and
On August 5, 2004, former Solicitor General Francisco additional work to be done to successfully implement
Chavez, filed an instant petition raising constitutional the project.
issues on the JVA entered by National Housing o The original 3,500 units of temporary
Authority and R-II Builders, Inc. housing were decreased to 2,992. The
On March 1, 1988, then-President Cory Aquino issued reclaimed land as enabling component was
Memorandum order No. (MO) 161 approving and increased from 40 hectares to 79 hectares,
directing implementation of the Comprehensive and which was supported by the issuance of
Integrated Metropolitan Manila Waste Management Proclamation No. 465 by President Ramos.
Plan. The revision also provided for the 119-
o During this time, Smokey Mountain, a hectare land as an enabling component for
wasteland in Tondo, Manila, are being made Phase II of the project.
residence of many Filipinos living in a Subsequently, the Clean Air Act was passed by the
subhuman state. legislature which made the establishment of an
As presented in MO 161, NHA prepared feasibility incinerator illegal, making the off-site dumpsite at
studies to turn the dumpsite into low-cost housing Smokey Mountain necessary.
project, thus, Smokey Mountain Development and On August 1, 1998, the project was suspended, to be
Reclamation Project (SMDRP), came into place. RA later reconstituted by President Estrada in MO No. 33.
6957 (Build-Operate-Transfer Law) was passed on July On August 27, 2003, the NHA and RBI executed a
1990 declaring the importance of private sectors as Memorandum of Agreement whereby both parties
contractors in government projects.
agreed to terminate the JVA and subsequent that the reclamation of lands of public domain is
agreements. reposed first in the Philippine President.
o During this time, NHA reported that 34
temporary housing structures and 21 3. The reclaimed lands were classified alienable and
permanent housing structures had been disposable via MO 415 issued by President Aquino and
turned over by RBI. Proclamation Nos. 39 and 465 by President Ramos.

Issues: 4. Despite not having an explicit declaration, the lands


1. Whether respondents NHA and RBI have been granted have been deemed to be no longer needed for public
the power and authority to reclaim lands of the public use as stated in Proclamation No. 39 that these are to
domain as this power is vested exclusively in PEA as be disposed to qualified beneficiaries. Furthermore,
claimed by petitioner these lands have already been necessarily reclassified
2. Whether respondents NHA and RBI were given the as alienable and disposable lands under the BOT law.
power and authority by DENR to reclaim foreshore and
submerged lands 5. Letter I of Sec. 6 of PD 757 clearly states that the NHA
can acquire property rights and interests and
3. Whether respondent RBI can acquire reclaimed encumber or otherwise dispose of them as it may
foreshore and submerged lands considered as deem appropriate.
alienable and outside the commerce of man
6. There is no doubt that respondent NHA conducted a
4. Whether respondent RBI can acquire reclaimed lands public bidding of the right to become its joint venture
when there was no declaration that said lands are no partner in the Smokey Mountain Project. It was noted
longer needed for public use that notices were published in national newspapers.
The bidding proper was done by the Bids and Awards
5. Whether there is a law authorizing sale of reclaimed Committee on May 18, 1992.
lands
7. RA 6957 as amended by RA 7718 explicitly states that a
6. Whether the transfer of reclaimed lands to RBI was contractor can be paid a portion as percentage of the
done by public bidding reclaimed land subject to the constitutional
requirement that only Filipino citizens or corporation
7. Whether RBI, being a private corporation, is barred by with at least 60% Filipino equity can acquire the same.
the Constitution to acquire lands of public domain In addition, when the lands were transferred to the
NHA, these were considered Patrimonial lands of the
8. Whether respondents can be compelled to disclose all state, by which it has the power to sell the same to any
information related to the SMDRP qualified person.

9. Whether the operative fact doctrine applies to the 8. This relief must be granted. It is the right of the Filipino
instant position people to information on matters of public concerned
as stated in Article II, Sec. 28, and Article III, Sec. 7 of
the 1987 Constitution.
Decision:
9. When the petitioner filed the case, the JVA had already
1. Executive Order 525 reads that the PEA shall be been terminated by virtue of MOA between RBI and
primarily responsible for integrating, directing, and NHA. The properties and rights in question after the
coordinating all reclamation projects for and on behalf passage of around 10 years from the start of the
of the National Government. This does not mean that projects implementation cannot be disturbed or
it shall be responsible for all. The requisites for a valid questioned. The petitioner, being the Solicitor General
and legal reclamation project are approval by the at the time SMDRP was formulated, had ample
President (which were provided for by MOs), opportunity to question the said project, but did not do
favourable recommendation of PEA (which were seen so. The moment to challenge has passed.
as a part of its recommendations to the EXECOM), and
undertaken either by PEA or entity under contract of
PEA or by the National Government Agency (NHA is a 4. Republic of the Philippines vs. Celestina Naguiat
government agency whose authority to reclaim lands (2006)
under consultation with PEA is derived under PD 727
and RA 7279). Facts:
Celestina Naguiat applied for registration of title to 4
2. Notwithstanding the need for DENR permission, the parcels of land (located in Botolan, Zambales) with RTC
DENR is deemed to have granted the authority to Zambales.
reclaim in the Smokey Mountain Project for the DENR o She claimed to have acquired it from LID
is one of the members of the EXECOM which provides Corporation, who in turn had acquired it
reviews for the project. ECCs and Special Patent Orders from Calderon, Moraga and Monje and their
were given by the DENR which are exercises of its predecessors-in-interest who have been in
power of supervision over the project. Furthermore, it possession for more than 30 years.
was the President via the abovementioned MOs that Republic of the Philippines (through the OSG) filed an
originally authorized the reclamation. It must be noted opposition to the application.
o They claim that neither Naguiat nor her In the case at bar, the CA only granted the petition
predecessors-in-interest have been in because it assumed that the lands in question are already
possession since 12 June 1945, that the alienable and disposable, which is found by the SC to not be in this
muniments of title and tax payment receipts case.
arent sufficient evidence of a bona fide
acquisition of the lands, that Naguiats Here, respondent never presented the required
Spanish title can no longer be availed of and certification from the proper government agency or official
finally, that said lands are part of the public proclamation reclassifying the land applied for as alienable and
domain and not subject of private disposable. Matters of land classification or reclassification
appropriation. cannot be assumed. It calls for proof. Aside from tax receipts,
RTC rendered a decision in favour of Naguiat and respondent submitted in evidence the survey map and technical
decreed the registration of said lands in her name. descriptions of the lands, which, needless to state, provided no
Petitioner Republic of the Phils brought case to the CA. information respecting the classification of the property. These
CA affirmed RTC decision. documents are not sufficient to overcome the presumption that
Issue: the land sought to be registered forms part of the public domain.

Whether or not the areas in question have ceased to have the Therefore, the issue of whether or not Naguiat and her
status of forest or other inalienable lands of the public domain. predecessor-in-interest have been in open, exclusive and
continuous possession of the parcels of land in question is now of
Decision: little moment. For, unclassified land, as here, cannot be acquired
by adverse occupation or possession; occupation thereof in the
No. Naguiat was unable to provide sufficient evidence that such concept of owner, however long, cannot ripen into private
parcels of land are no longer a part of the public domain. ownership and be registered as title.

Public forest lands or forest reserves, unless


declassified and released by positive act of the Government so
that they may form part of the disposable agricultural lands of the
public domain, are not capable of private appropriation. As to Sustainable Development
these assets, the rules on confirmation of imperfect title do not
apply. Sustainable Development is development that meets the needs of
the present without compromising the ability of future
generations to meet their own needs (Brundtland Report). It is a
Forests, in the context of both the Public Land Act and pattern of resource use that aims to meet human needs while
the Constitution classifying lands of the public domain into preserving the environment so that these needs can be met not
"agricultural, forest or timber, mineral lands and national only in the present, but also for generations to come.
parks," do not necessarily refer to a large tract of wooded land or
an expanse covered by dense growth of trees and underbrush. As
It contains within it two key concepts:
we stated in Heirs of Amunategui:
the concept of 'needs', in particular the essential needs
of the world's poor, to which overriding priority should be
A forested area classified as forest land of the public domain does given; and
not lose such classification simply because loggers or settlers have the idea of limitations imposed by the state of
stripped it of its forest cover. Parcels of land classified as forest technology and social organization on the environment's
land may actually be covered with grass or planted to crops by ability to meet present and future needs
kaingin cultivators or other farmers. "Forest lands" do not have to
be on mountains or in out of the way places. xxx. The classification The Brundtland Reports targets were multilateralism and
is merely descriptive of its legal nature or status and does not interdependence of nations in the search for a sustainable
have to be descriptive of what the land actually looks like. xxx development path. The report sought to recapture the spirit of
the United Nations Conference on the Human Environment - the
Under Section 2, Article XII of the Constitution, which Stockholm Conference - which had introduced
embodies the Regalian doctrine, all lands of the public domain environmental concerns to the formal political development
belong to the State the source of any asserted right to sphere. Our Common Future placed environmental issues firmly
ownership of land. All lands not appearing to be clearly of private on the political agenda; it aimed to discuss the environment
dominion presumptively belong to the State. Accordingly, public and development as one single issue.
lands not shown to have been reclassified or released as alienable
agricultural land or alienated to a private person by the State The publication of Our Common Future and the work of the World
remain part of the inalienable public domain. Under Section 6 of Commission on Environment and Development laid the
the Public Land Act, the prerogative of classifying or reclassifying groundwork for the convening of the 1992 Earth Summit and the
lands of the public domain, i.e., from forest or mineral to adoption of Agenda 21, the Rio Declaration and to the
agricultural and vice versa, belongs to the Executive Branch of the establishment of the Commission on Sustainable Development.
government and not the court. Needless to stress, the onus to In addition, key contributions of Our Common Future to the
overturn, by incontrovertible evidence, the presumption that the concept of sustainable development include the recognition that
land subject of an application for registration is alienable or the many crises facing the planet are interlocking crises that are
disposable rests with the applicant. elements of a single crisis of the whole and of the vital need for
the active participation of all sectors of society in consultation and
decisions relating to sustainable development.
Sustainable development ensures the well-being of the human AGENDA 21
person by integrating social development, economic
development, and environmental conservation and protection. It Commission [formally the World Commission on Environment
refers to the "interdependent and mutually reinforcing pillars of and Development (WCED)]:
sustainable development as economic development, social
development, and environmental protection. As the goal of
sustainable development is to permanently improve the living It was known by the name of its Chair Gro Harlem Brundtland
conditions of human beings, social and economic developments (former Norwegian Prime Minister), and was convened by
must be carried out in a way that is environmentally and the United Nations in 1983. The commission was created to
ecologically sound; ensuring the continual rejuvenation and address growing concern "about the accelerating deterioration of
availability of natural resources for future generations. the human environment and natural resources and the
consequences of that deterioration for economic and social
development." In establishing the commission, the UN General
Assembly recognized that environmental problems were global in
Seven Dimensions of Sustainable Development : From the nature and determined that it was in the common interest of all
Philippine Agenda 21 nations to establish policies for sustainable development.

From the Philippine perspective sustainable development is a


multidimensional concept, involving no less than seven
dimensions. Sustainable development is viewed as the mutually Agenda 21: an action plan of the United Nations (UN) related
beneficial interaction between the legitimate interests of business to sustainable development and was an outcome of the United
and the economy, government and the polity, and civil society and Nations Conference on Environment and Development (UNCED)
culture. held in Rio de Janeiro, Brazil, in 1992. It is a comprehensive
From this perspective, five dimensions of sustainable blueprint of action to be taken globally, nationally and locally by
development are clearly visible. These arethe human being, organizations of the UN, governments, and major groups in every
culture, polity, economy, and Nature. area in which humans directly affect the environment.

Development of Agenda 21: The full text of Agenda 21 was


Article II, Sec. 16 of 1987 Constitution revealed at the United Nations Conference on Environment and
Development (Earth Summit), held in Rio de Janeiro on June 13,
The State shall protect and advance the right of the people to a 1992, where 178 governments voted to adopt the program. The
balanced and healthful ecology in accord with the rhythm and final text was the result of drafting, consultation and negotiation,
harmony of nature. beginning in 1989 and culminating at the two-week conference.
The number 21 refers to an agenda for the 21st century. It may
also refer to the number on the UN's agenda at this particular
Does Sec. 16 provide for enforceable rights? summit.

Yes. The provision, as worded, recognizes an enforceable right. Rio+5: In 1997, the General Assembly of the UN held a special
Hence, appeal to it has been recognized as conferring standing session to appraise five years of progress on the implementation
on minors to challenge logging policies of the government (Oposa of Agenda 21 (Rio +5). The Assembly recognized progress as
vs. Factoran). On this basis too, the Supreme Court upheld the 'uneven' and identified key trends including
empowerment of the Laguna Lake Development Authority to increasing globalization, widening inequalities in income and a
protect the inhabitants of the Laguna Lake Area from the continued deterioration of the global environment. A new General
deleterious effects of pollutants coming from garbage dumping Assembly Resolution (S-19/2) promised further action.
and the discharge of wastes in the area as against the local
autonomy claim of local governments in the area (Laguna Lake
Development Authority vs. CA) The Johannesburg Summit: The Johannesburg Plan of
Implementation, agreed at the World Summit on Sustainable
Development (Earth Summit 2002) affirmed UN commitment to
While the right to a balanced and healthful ecology is to be found 'full implementation' of Agenda 21, alongside achievement of
under the Declaration of Principles and State Policies and not the Millennium Development Goals and other international
under the Bill of Rights, it does not follow that it is less important agreements.
than any of the civil and political rights enumerated in the latter.
As a matter of fact, these basic rights need not even be written in
the Constitution for they are assumed to exist from the inception Implementation: The Commission on Sustainable
of humankind. The right to a balanced and healthful ecology Development acts as a high level forum on sustainable
carries with it the correlative duty to refrain from impairing the development and has acted as preparatory committee for
environment. summits and sessions on the implementation of Agenda 21. The
United Nations Division for Sustainable Development acts as the
Section 16 is unusual among those found in Article II in that, secretariat to the Commission and works 'within the context of'
whereas almost all the other provisions in the Article are not self- Agenda 21. Implementation by member states remains essentially
executing but need implementing legislation to make them voluntary.
effective, Section 16 has been recognized by the Supreme Court as
self-executing like the provisions in the Bill of Rights. Structure and Contents:
There are 40 chapters in the Agenda 21, divided into four main
sections.
1. Section I: Social and Economic Dimensions - which
deals with combating poverty, changing consumption
patterns, promoting health, change population and
sustainable settlement.
2. Section II: Conservation and Management of
Resources for Development - Includes atmospheric
protection, combating deforestation, protecting fragile
environments, conservation of biological diversity
(biodiversity), and control of pollution.
3. Section III: Strengthening the Role of Major Groups -
Includes the roles of children and youth, women,
NGOs, local authorities, business and workers.
4. Section IV: Means of Implementation -
Implementation includes science, technology
transfer, education, international institutions and
financial mechanisms.

Local Agenda 21: The implementation of Agenda 21 was intended


to involve action at international, national, regional and local
levels. Some national and state governments have legislated or
advised that local authorities take steps to implement the plan
locally, as recommended in Chapter 28 of the document. Such
programmes are often known as 'Local Agenda 21' or 'LA21'.

Agenda 21 for culture: During the first World Public Meeting on


Culture, held in Porto Alegre in 2002, it came up the idea to draw
up a document guidelines for local cultural policies, a document
comparable to what the Agenda 21 meant in 1992 for the
environment. The Agenda 21 for culture is the first document with
worldwide mission that advocates establishing the groundwork of
an undertaking by cities and local governments for cultural
development.
initiatives to achieve coordination in the implementation of plans
and programs to address climate change in the context of
sustainable development.

Further recognizing that climate change and disaster risk


reduction are closely interrelated and effective disaster risk
reduction will enhance climate change adaptive capacity, the State
shall integrate disaster risk reduction into climate change
programs and initiatives.

Cognizant of the need to ensure that national and subnational


government policies, plans, programs and projects are founded
upon sound environmental considerations and the principle of
sustainable development, it is hereby declared the policy of the
State to systematically integrate the concept of climate change in
various phases of policy formulation, development plans, poverty
reduction strategies and other development tools and techniques
by all agencies and instrumentalities of the government.
REPUBLIC ACT NO. 9729: CLIMATE CHANGE ACT OF 2009
Section 3. Definition of Terms. For purposes of this Act, the
following shall have the corresponding meanings:
Section 2. Declaration of Policy. It is the policy of the State to
afford full protection and the advancement of the right of the
people to a healthful ecology in accord with the rhythm and (a) Adaptation refers to the adjustment in natural or
harmony of nature. In this light, the State has adopted the human systems in response to actual or expected
Philippine Agenda 21 framework which espouses sustainable climatic stimuli or their effects, which moderates harm
development, to fulfill human needs while maintaining the quality or exploits beneficial opportunities.
of the natural environment for current and future generations.
(b) Adaptive capacity refers to the ability of
Towards this end, the State adopts the principle of protecting the ecological, social or economic systems to adjust to
climate system for the benefit of humankind, on the basis of climate change including climate variability and
climate justice or common but differentiated responsibilities and extremes, to moderate or offset potential damages and
the Precautionary Principle to guide decision-making in climate to take advantage of associated opportunities with
risk management. As a party to the United Nations Framework changes in climate or to cope with the consequences
Convention on Climate Change, the State adopts the ultimate thereof.
objective of the Convention which is the stabilization of
greenhouse gas concentrations in the atmosphere at a level that (c) Anthropogenic causes refer to causes resulting
would prevent dangerous anthropogenic interference with the from human activities or produced by human beings.
climate system which should be achieved within a time frame
sufficient to allow ecosystems to adapt naturally to climate
change, to ensure that food production is not threatened and to (d) Climate Change refers to a change in climate that
enable economic development to proceed in a sustainable can be identified by changes in the mean and/or
manner.1awphil As a party to the Hyogo Framework for Action, variability of its properties and that persists for an
the State likewise adopts the strategic goals in order to build extended period typically decades or longer, whether
national and local resilience to climate change-related disasters. due to natural variability or as a result of human
activity.

Recognizing the vulnerability of the Philippine archipelago and its


local communities, particularly the poor, women, and children, to (e) Climate Variability refers to the variations in the
potential dangerous consequences of climate change such as average state and in other statistics of the climate on
rising seas, changing landscapes, increasing frequency and/or all temporal and spatial scales beyond that of
severity of droughts, fires, floods and storms, climate-related individual weather events.
illnesses and diseases, damage to ecosystems, biodiversity loss
that affect the countrys environment, culture, and economy, the (f) Climate Risk refers to the product of climate and
State shall cooperate with the global community in the resolution related hazards working over the vulnerability of
of climate change issues, including disaster risk reduction. It shall human and natural ecosystems.
be the policy of the State to enjoin the participation of national
and local governments, businesses, nongovernment organizations,
local communities and the public to prevent and reduce the (g) Disaster refers to a serious disruption of the
adverse impacts of climate change and, at the same time, functioning of a community or a society involving
maximize the benefits of climate change. It shall also be the policy widespread human, material, economic or
of the State to incorporate a gender-sensitive, pro-children and environmental losses and impacts which exceed the
pro-poor perspective in all climate change and renewable energy ability of the affected community or society to cope
efforts, plans and programs. In view thereof, the State shall using its own resources.
strengthen, integrate, consolidate and institutionalize government
(h) Disaster risk reduction refers to the concept and and variation to which a system is exposed, its
practice of reducing disaster risks through systematic sensitivity, and its adaptive capacity.
efforts to analyze and manage the causal factors of
disasters, including through reduced exposure to
Section 4. Creation of the Climate Change Commission. There is
hazards, lessened vulnerability of people and property,
hereby established a Climate Change Commission, hereinafter
wise management of land and the environment, and
referred to as the Commission.
improved preparedness for adverse events.

The Commission shall be an independent and autonomous body


(i) Gender mainstreaming refers to the strategy for
and shall have the same status as that of a national government
making womens as well as mens concerns and
agency. It shall be attached to the Office of the President.
experiences an integral dimension of the design,
implementation, monitoring, and evaluation of policies
and programs in all political, economic, and societal The Commission shall be the sole policy-making body of the
spheres so that women and men benefit equally and government which shall be tasked to coordinate, monitor and
inequality is not perpetuated. It is the process of evaluate the programs and action plans of the government
assessing the implications for women and men of any relating to climate change pursuant to the provisions of this Act.
planned action, including legislation, policies, or
programs in all areas and at all levels. The Commission shall be organized within sixty (60) days from the
effectivity of this Act.
(j) Global Warming refers to the increase in the
average temperature of the Earths near-surface air and Section 5. Composition of the Commission. The Commission
oceans that is associated with the increased shall be composed of the President of the Republic of the
concentration of greenhouse gases in the atmosphere. Philippines who shall serve as the Chairperson, and three (3)
Commissioners to be appointed by the President, one of whom
(k) Greenhouse effect refers to the process by which shall serve as the Vice Chairperson of the Commission.
the absorption of infrared radiation by the atmosphere
warms the Earth. The Commission shall have an advisory board composed of the
following:
(l) Greenhouse gases (GHG) refers to constituents of
the atmosphere that contribute to the greenhouse (a) Secretary of the Department of Agriculture;
effect including, but not limited to, carbon dioxide,
methane, nitrous oxide, hydrofluorocarbons,
perfluorocarbons and sulfur hexafluoride. (b) Secretary of the Department of Energy;

(m) Mainstreaming refers to the integration of (c) Secretary of the Department of Environment and
policies and measures that address climate change into Natural Resources;
development planning and sectoral decision-making.
(d) Secretary of the Department of Education;
(n) Mitigation in the context of climate change,
refers to human intervention to address anthropogenic (e) Secretary of the Department of Foreign Affairs;
emissions by sources and removals by sinks of all GHG,
including ozone- depleting substances and their
substitutes. (f) Secretary of the Department of Health;

(o) Mitigation potential shall refer to the scale of (g) Secretary of the Department of the Interior and
GHG reductions that could be made, relative to Local Government;
emission baselines, for a given level of carbon price
(expressed in cost per unit of carbon dioxide equivalent (h) Secretary of the Department of National Defense, in
emissions avoided or reduced). his capacity as Chair of the National Disaster
Coordinating Council;
(p) Sea level rise refers to an increase in sea level
which may be influenced by factors like global warming (i) Secretary of the Department of Public Works and
through expansion of sea water as the oceans warm Highways;
and melting of ice over land and local factors such as
land subsidence.
(j) Secretary of the Department of Science and
Technology;
(q) Vulnerability refers to the degree to which a
system is susceptible to, or unable to cope with,
(k) Secretary of the Department of Social Welfare and
adverse effects of climate change, including climate
Development;
variability and extremes. Vulnerability is a function of
the character, magnitude, and rate of climate change
(l) Secretary of the Department of Trade and Industry;
(m) Secretary of the Department of Transportation and The Commissioners shall hold office for a period of six (6) years,
Communications; and may be subjected to reappointment: Provided, That no
person shall serve for more than two (2) consecutive terms:
Provided, further, That in case of a vacancy, the new appointee
(n) Director-General of the National Economic and
shall fully meet the qualifications of a Commissioner and shall
Development Authority, in his capacity as Chair of the
hold office for the unexpired portion of the term only: Provided,
Philippine Council for Sustainable Development;
finally, That in no case shall a Commissioner be designated in a
temporary or acting capacity.
(o) Director-General of the National Security Council;
The Vice Chairperson and the Commissioners shall have the rank
(p) Chairperson of the National Commission on the and privileges of a Department Secretary and Undersecretary,
Role of Filipino Women; respectively. They shall be entitled to corresponding
compensation and other emoluments and shall be subject to the
(q) President of the League of Provinces; same disqualifications.

(r) President of the League of Cities; Section 8. Climate Change Office. There is hereby created a
Climate Change Office that shall assist the Commission. It shall be
headed by a Vice Chairperson of the Commission who shall act as
(s) President of the League of Municipalities; the Executive Director of the Office. The Commission shall have
the authority to determine the number of staff and create
(t) President of the Liga ng mga Barangay; corresponding positions necessary to facilitate the proper
implementation of this Act, subject to civil service laws, rules and
regulations. The officers and employees of the Commission shall
(u) Representative from the academe; be appointed by the Executive Director.

(v) Representative from the business sector; and Section 9. Powers and Functions of the Commission. The
Commission shall have the following powers and functions:
(w) Representative from nongovernmental
organizations. (a) Ensure the mainstreaming of climate change, in
synergy with disaster risk reduction, into the national,
At least one (1) of the sectoral representatives shall come from sectoral and local development plans and programs;
the disaster risk reduction community.
(b) Coordinate and synchronize climate change
The representatives shall be appointed by the President from a list programs of national government agencies;
of nominees submitted by their respective groups. They shall
serve for a term of six (6) years without reappointment unless (c) Formulate a Framework Strategy on Climate Change
their representation is withdrawn by the sector they represent. to serve as the basis for a program for climate change
Appointment to any vacancy shall be only for the unexpired term planning, research and development, extension, and
of the predecessor. monitoring of activities on climate change;

Only the ex officio members of the advisory board shall appoint a (d) Exercise policy coordination to ensure the
qualified representative who shall hold a rank of no less than an attainment of goals set in the framework strategy and
Undersecretary. program on climate change;

Section 6. Meetings of the Commission. The Commission shall (e) Recommend legislation, policies, strategies,
meet once every three (3) months, or as often as may be deemed programs on and appropriations for climate change
necessary by the Chairperson. The Chairperson may likewise call adaptation and mitigation and other related activities;
upon other government agencies for the proper implementation
of this Act.
(f) Recommend key development investments in
climate- sensitive sectors such as water resources,
Section 7. Qualifications, Tenure, Compensation of agriculture, forestry, coastal and marine resources,
Commissioners. The Commissioners must be Filipino citizens, health, and infrastructure to ensure the achievement
residents of the Philippines, at least thirty (30) years of age at the of national sustainable development goals;
time of appointment, with at least ten (10) years of experience on
climate change and of proven honesty and ntegrity. The
Commissioners shall be experts in climate change by virtue of (g) Create an enabling environment for the design of
their educational background, training and experience: Provided, relevant and appropriate risk-sharing and risk-transfer
That at least one (1) Commissioner shall be female: Provided, instruments;
further, That in no case shall the Commissioners come from the
same sector: Provided, finally, That in no case shall any of the (h) Create an enabling environment that shall promote
Commissioners appoint representatives to act on their behalf. broader multi-stakeholder participation and integrate
climate change mitigation and adaptation;
(i) Formulate strategies on mitigating GHG and other The Framework shall be reviewed every three (3) years, or as may
anthropogenic causes of climate change; be deemed necessary.

(j) Coordinate and establish a close partnership with Section 12. Components of the Framework Strategy and Program
the National Disaster Coordinating Council in order to on Climate Change. The Framework shall include, but not limited
increase efficiency and effectiveness in reducing the to, the following components:
peoples vulnerability to climate-related disasters;
(a) National priorities;
(k) In coordination with the Department of Foreign
Affairs, represent the Philippines in the climate change
(b) Impact, vulnerability and adaptation assessments;
negotiations;

(c) Policy formulation;


(l) Formulate and update guidelines for determining
vulnerability to climate change impacts and adaptation
assessments and facilitate the provision of technical (d) Compliance with international commitments;
assistance for their implementation and monitoring;
(e) Research and development;
(m) Coordinate with local government units (LGUs) and
private entities to address vulnerability to climate (f) Database development and management;
change impacts of regions, provinces, cities and
municipalities;
(g) Academic programs, capability building and
mainstreaming;
(n) Facilitate capacity building for local adaptation
planning, implementation and monitoring of climate
change initiatives in vulnerable communities and areas; (h) Advocacy and information dissemination;

(o) Promote and provide technical and financial (i) Monitoring and evaluation; and
support to local research and development programs
and projects in vulnerable communities and areas; and (j) Gender mainstreaming.

(p) Oversee the dissemination of information on Section 13. National Climate Change Action Plan. The
climate change, local vulnerabilities and risks, relevant Commission shall formulate a National Climate Change Action Plan
laws and protocols and adaptation and mitigation in accordance with the Framework within one (1) year after the
measures. formulation of the latter.

Section 10. Panel of Technical Experts. The Commission shall The National Climate Change Action Plan shall include, but not
constitute a national panel of technical experts consisting of limited to, the following components:
practitioners in disciplines that are related to climate change,
including disaster risk reduction.
(a) Assessment of the national impact of climate
change;
The Panel shall provide technical advice to the Commission in
climate science, technologies, and best practices for risk
assessment and enhancement of adaptive capacity of vulnerable (b) The identification of the most vulnerable
human settlements to potential impacts of climate change. communities/areas, including ecosystems to the
impacts of climate change, variability and extremes;

The Commission shall set the qualifications and compensation for


the technical experts. It shall provide resources for the operations (c) The identification of differential impacts of climate
and activities of the Panel. change on men, women and children;

Section 11. Framework Strategy and Program on Climate (d) The assessment and management of risk and
Change. The Commission shall, within six (6) months from the vulnerability;
effectivity of this Act, formulate a Framework Strategy on Climate
Change. The Framework shall serve as the basis for a program for (e) The identification of GHG mitigation potentials; and
climate change planning, research and development, extension,
and monitoring of activities to protect vulnerable communities
(f) The identification of options, prioritization of
from the adverse effects of climate change.
appropriate adaptation measures for joint projects of
national and local governments.
The Framework shall be formulated based on climate change
vulnerabilities, specific adaptation needs, and mitigation potential,
Section 14. Local Climate Change Action Plan. The LGUs shall be
and in accordance with the international agreements.
the frontline agencies in the formulation, planning and
implementation of climate change action plans in their respective maintenance of a climate change information
areas, consistent with the provisions of the Local Government management system and network, including on climate
Code, the Framework, and the National Climate Change Action change risks, activities and investments, in
Plan. collaboration with other concerned national
government agencies, institutions and LGUs;
Barangays shall be directly involved with municipal and city
governments in prioritizing climate change issues and in (d) The Department of Foreign Affairs (DFA) shall
identifying and implementing best practices and other solutions. review international agreements related to climate
Municipal and city governments shall consider climate change change and make the necessary recommendation for
adaptation, as one of their regular functions. Provincial ratification and compliance by the government on
governments shall provide technical assistance, enforcement and matters pertaining thereto;
information management in support of municipal and city climate
change action plans. Inter-local government unit collaboration
(e) The Philippine Information Agency (PIA) shall
shall be maximized in the conduct of climate- related activities.
disseminate information on climate change, local
vulnerabilities and risk, relevant laws and protocols and
LGUs shall regularly update their respective action plans to reflect adaptation and mitigation measures; and
changing social, economic, and environmental conditions and
emerging issues. The LGUs shall furnish the Commission with
(f) Government financial institutions, shall, any
copies of their action plans and all subsequent amendments,
provision in their respective charters to the contrary
modifications and revisions thereof, within one (1) month from
notwithstanding, provide preferential financial
their adoption. The LGUs shall mobilize and allocate necessary
packages for climate change- related projects. In
personnel, resources and logistics to effectively implement their
consultation with the Bangko Sentral ng Pilipinas (BSP),
respective action plans.
they shall, within thirty (30) days from the effectivity of
this Act, issue and promulgate the implementing
The local chief executive shall appoint the person responsible for guidelines therefor.
the formulation and implementation of the local action plan.
The Commission shall evaluate, recommend the approval of loans
It shall be the responsibility of the national government to extend and monitor the use of said funds of LGUs.
technical and financial assistance to LGUs for the accomplishment
of their Local Climate Change Action Plans.
Section 16. Coordination with Various Sectors. In the
development and implementation of the National Climate Change
The LGU is hereby expressly authorized to appropriate and use the Action Plan, and the local action plans, the Commission shall
amount from its Internal Revenue Allotment necessary to coordinate with the nongovernment organizations (NGOs), civic
implement said local plan effectively, any provision in the Local organizations, academe, peoples organizations, the private and
Government Code to the contrary notwithstanding. corporate sectors and other concerned stakeholder groups.

Section 15. Role of Government Agencies. To ensure the Section 17. Authority to Receive Donations and/or Grants. The
effective implementation of the framework strategy and program Commission is hereby authorized to accept grants, contributions,
on climate change, concerned agencies shall perform the donations, endowments, bequests, or gifts in cash, or in kind from
following functions: local and foreign sources in support of the development and
implementation of climate change programs and plans: Provided,
That in case of donations from foreign governments, acceptance
(a) The Department of Education (DepED) shall
thereof shall be subject to prior clearance and approval of the
integrate climate change into the primary and
President of the Philippines upon recommendation of the
secondary education curricula and/or subjects, such as,
Secretary of Foreign Affairs: Provided, further, That such donations
but not limited to, science, biology, sibika, history,
shall not be used to fund personal services expenditures and
including textbooks, primers and other educational
other operating expenses of the Commission.
materials, basic climate change principles and
concepts;
The proceeds shall be used to finance:
(b) The Department of the Interior and Local
Government (DILG) and Local Government Academy (a) Research, development, demonstration and
shall facilitate the development and provision of a promotion of technologies;
training program for LGUs in climate change. The
training program shall include socioeconomic,
(b) Conduct of assessment of vulnerabilities to climate
geophysical, policy, and other content necessary to
change impacts, resource inventory, and adaptation
address the prevailing and forecasted conditions and
capability building;
risks of particular LGUs. It shall likewise focus on
women and children, especially in the rural areas, since
they are the most vulnerable; (c) Advocacy, networking and communication activities
in the conduct of information campaign; and
(c) The Department of Environment and Natural
Resources (DENR) shall oversee the establishment and
(d) Conduct of such other activities reasonably Order No. 220, shall be abolished: Provided, That their powers
necessary to carry out the objectives of this Act, as may and functions shall be absorbed by the Commission: Provided,
be defined by the Commission. further, That the officers and employees thereof shall continue in
a holdover capacity until such time as the new officers and
employees of the Commission shall have been duly appointed
Section 18. Funding Allocation for Climate Change. All relevant
pursuant to the provisions of this Act. All qualified regular or
government agencies and LGUs shall allocate from their annual
permanent employees who may be transferred to the Commission
appropriations adequate funds for the formulation, development
shall not suffer any loss in seniority or rank or decrease in
and implementation, including training, capacity building and
emoluments. Any employee who cannot be absorbed by the
direct intervention, of their respective climate change programs
Commission shall be entitled to a separation pay under existing
and plans. It shall also include public awareness campaigns on the
retirement laws
effects of climate change and energy-saving solutions to mitigate
these effects, and initiatives, through educational and training
programs and micro-credit schemes, especially for women in rural
areas. In subsequent budget proposals, the concerned offices and
units shall appropriate funds for program/project development
and implementation including continuing training and education
in climate change.1avvphi1

Section 19. Joint Congressional Oversight Committee. There is Executive Order No. 15 : Creating a Philippine Council for
hereby created a Joint Congressional Oversight Committee to Sustainable Development
monitor the implementation of this Act. The Oversight Committee
shall be composed of five (5) Senators and five (5) Representatives
WHEREAS, the 1987 Constitution mandates a policy of the state,
to be appointed by the Senate President and the Speaker of the
the protection and advancement of the right of the people to a
House of Representatives, respectively. The Oversight Committee
balanced and healthful ecology in accordance with the rhythm
shall be co-chaired by a Senator and a Representative to be
and harmony of nature;
designated by the Senate President and the Speaker of the House
of Representatives, respectively. Its funding requirement shall be
charged against the appropriations of Congress. WHEREAS, a National Conservation Strategy, as spelled out in the
Philippine Strategy for Sustainable Development (PSSD), which
was adopted in 1989, takes a balanced and integrated approach to
Section 20. Annual Report. The Commission shall submit to the
environment and development issues by incorporating sustainable
President and to both Houses of Congress, not later than March
development principles and concepts in the national priorities of
30 of every year following the effectivity of this Act, or upon the
government;
request of the Congressional Oversight Committee, a report giving
a detailed account of the status of the implementation of this Act,
a progress report on the implementation of the National Climate WHEREAS, the Philippines already adhering too the principle of
Change Action Plan and recommend legislation, where applicable sustainable development actively participated in the United
and necessary. LGUs shall submit annual progress reports on the Nations Conference on Environment and Development (UNCED)
implementation of their respective local action plan to the Summit held in Rio de Janeiro, and committed to the principles set
Commission within the first quarter of the following year. forth in the Rio Declaration, the Agenda 21, the Conventions on
Climate Change and Biodiversity;
Section 21. Appropriations. The sum of Fifty million pesos
(Php50,000,000.00) is hereby appropriated as initial operating WHEREAS, the United Nations in UNCED, has adopted a resolution
fund in addition to the unutilized fund of the Presidential Task for the creation of a Sustainable Development Commission that
Force on Climate Change and the Office of the Presidential Adviser will evaluate and monitor the compliance too the agreements and
on Global Warming and Climate Change. The sum shall be sourced commitments made in Rio and in the course of it's creation urged
from the Presidents contingent fund. governments to also for similar bodies that will ensure that the
activities at the national level are implemented and coordinated
within global efforts;
Thereafter, the amount necessary to effectively carry out the
provisions of this Act shall be included in the annual General
Appropriations Act. WHEREAS, the agreements oblige the Philippines to translate the
commitments to more concrete actions and ensure that all sectors
of the society shall be involved in its cooperalization;
Section 22. Implementing Rules and Regulations. Within ninety
(90) days after the approval of this Act, the Commission shall,
upon consultation with government agencies, LGUs, private WHEREAS, in order to active these ends, the creation of a national
sector, NGOs and civil society, promulgate the implementing rules sustainable development and thus assure its integration in the
and regulations of this Act: Provided, That failure to issue rules Philippine national policies, plans, and programs that will involve
and regulations shall not in any manner affect the executory all sectors of the society.
nature of the provisions of this Act.
SEC 1. Creation and Composition of the Council.
Section 23. Transitory Provisions. Upon the organization of the
Commission, the Presidential Task Force on Climate Change 1) There is hereby created a Philippine Council for Sustainable
created under Administrative Order No. 171 and the Inter-Agency Development to be headed by the Director-General of the
Committee on Climate Change created by virtue of Administrative National Economic and Development Authority (NEDA) as
Chairperson, and the Secretary of the Department of Environment 7) To perform such other acts which are necessary to carry out its
and Natural Resources as Vice-Chairperson. mandated functions and responsibilities.

2) The Council will have as members committed environmentalists Sec. 3. The Secretariat. The Council shall be assisted by the
from the following owing departments of a position of Bureau Secretariat which shall be based at the Notional Economic and
Director of their, duly deputized to represent their respective Development Authority whose composition will be determined by
Secretaries: the Director-General.

Department of Foreign Affairs Sec. 4. Transitory Provisions. There shall be immediately be


Department of Science and Technology convened an interim Technical Working Group of seven members
Department of Finance composed or representatives from National Economic and
Department of Agriculture Development Authority (NEDA), Department of Environment and
Department of Public Works and Highways Natural Resources (DENR), Department of Foreign Affairs(DFA),
Department of Education, Culture, and Sports Department of the Interior and Local Government (DILG), and the
Department of Labor and Employment three representatives from non-government sector, which shall
Department of Health work out the formulation of the operational guidelines for the
Department of Trade and Industry Council. The working group shall be assisted by a composite
Department of the Interior and Local Governments secretariat from NEDA and DENR, These transitory groups shall
Department of Social Welfare and Developments cease its function upon the Council meeting and adoption of the
Department of Budget and Management operating guidelines within sixty (60) days upon signing of this
Department of National Defense Order.
Office of Energy Affairs
EXECUTIVE ORDER NO. 62: FURTHER STRENGTHENING THE
3) As civil society counterpart, the non-government community PHILIPPINE COUNCIL FOR SUSTAINABLE DEVELOPMENT (PCSD)
shall also have seven (7) representative in the Council. These
representative shall be selected by the non-government WHEREAS, to ensure that the commitments made in the Rio de
community considering commitment to environmental causes, Janeiro Declaration are fulfilled and to realize the countrys
gender balance, and sector representation through a process sustainable development goals, the PCSD was established on 01
designed by them. September 1992 through Executive Order No. 15;

Sec. 2 Powers and Functions of the Council. The Council shall WHEREAS, to strengthen PCSD, the expansion of its membership
have the following powers and function: as well as the establishment of local councils for sustainable
development were provided for through the issuance of Executive
Order No. 370 (s. 1996);
1`) To review and ensure the implementation on the commitments
the Philippines made in the light of the UNCED Conference;
WHEREAS, in order to operationalize sustainable development at
the local level, Memorandum Order No. 47 (s. 1999) was issued
2) To establish guidelines and mechanisms that will expand, mandating local government units (LGUs) to formulate and
concretize and operationalize the sustainable development implement their sustainable integrated area development plans or
principles as embodied in the Rio Declaration, the UNCED Agenda Local Agenda 21 with the assistance of concerned government
21, the National Conservation Strategy, and the Philippine Agenda agencies;
21, and incorporate them in the preparation of the Medium Term
Development Plan both at the national and local levels with active WHEREAS, in light of changing circumstances and, emerging issues
participation from the non-government sector a and people's on sustainable development locally and globally there is an urgent
organizations; need to pursue new interventions through a more responsive
PCSD structure;
3) Too provide directions in the form of policy reforms, programs
and new legislations that respond to the continuing and emerging WHEREAS, for the PCSD to be more effective and responsive in
issues and charting future actions related to environment and ensuring the realization of the governments sustainable
developments; development goals, there is a need to streamline and define its
core functions and membership, keeping in mind the various
4) To act as the coordinating mechanism in cooperation either agencies in government whose functions are integral components
DFA-office of the United Nations Commission for Sustainable of the overall government sustainable development operational
Development and actively solicit assistance and cooperation thrusts;
towards the realization of our commitments made at the UNCED;
WHEREAS, there is a need for PCSD to focus on strategic
interventions that have significant and catalytic impact on
5) To require any and all government agencies for assistance in to
sustainable development;
forum of personnel, facilities, and other resources which is
essential for the performance for the duties of the Council;
WHEREAS, it is necessary to further strengthen the PCSD as the
lead instrumentality responsible for mainstreaming sustainable
6) To create sub-committees that it may deem fit in the development in national government and affiliated agencies,
performance of its duties; and Congress, LGUs, as well as existing multi-stakeholder governance
mechanisms.
3. To establish guidelines and mechanisms that will ensure that
NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the sustainable development principles, as embodied in the Rio
the Philippines, by virtue of the powers vested in me by law, do Declaration, Agenda 21, and the Philippine Agenda 21, are
hereby order: integrated in the formulation of national, regional and local
development policies, plans and programs;
Section 1. Further Strengthening the PCSD. The Philippine
Council for Sustainable Development, hereinafter referred to as 4. To formulate policies and recommend new actions to
the Council, is hereby further strengthened, structurally and appropriate bodies on sustainable development issues focusing on
functionally, in accordance with the provisions of this Executive the environment dimensions of social and economic interventions
Order. and the social and economic dimensions of environment
interventions;
Sec. 2. Composition of the Council.
5. To review and monitor plans, policies, program and legislation
on sustainable development to promote efficiency and timeliness
1. The core members from government shall be composed of
of their execution and ensure consistency and coordination
Secretaries of the following Departments as permanent principal
among the Legislative and Executive branches of government,
members, with an Undersecretary as alternate:
local government units, civil society, business, labor and other
concerned entities/sectors, and existing multi-stakeholder
a. National Economic and Development Authority; governance mechanisms;

b. Department of Environment and Natural Resources; 6. To establish a networking mechanism to link the Council with
local and international organizations involved in sustainable
2. Civil society, composed of peoples organizations, non- development;
government organizations and sectoral/major groups
representation shall have five (5) Council members selected by 7. To create, reorganize or abolish committees of the Council, ad-
their community, based on their commitment to sustainable hoc or permanent, and to define their structure, functions and
development concerns, through a process designed by them limitations;
These may include the following groups: women, youth, farmers,
fisherfolk, indigenous people, Moro and Cordillera people, urban 8. To submit its annual work program with actionable and time
poor, persons with disabilities, academe, professionals, media, bounded targets and regularly report to the President the status
religious groups and NGOs. of implementation and achievement of specific targets thereof;

3. Labor and business shall have one (1) representative each in the 9. To perform such other acts which are necessary to carry out its
Council. Representation shall, likewise be decided through a mandated functions and responsibilities.
process to be designed by them.
Sec. 5. Participation of Other Government Agencies in the Council.
The Chairperson of the Council shall be the Secretary of Socio- The Council can call upon other government agencies and
Economic Planning and NEDA Director-General. The Secretary of instrumentalities, civil society, business and labor sector
the Department of Environment and Natural Resources (DENR) organizations to participate in Council business, including its
shall be the Vice-Chairperson. meetings, if so warranted by conditions as may exist from time to
time. For this purpose, other government agencies shall identify a
Sec. 3. Terms of Office and Meetings. The term of office of PCSD focal officer not lower than a rank of Director who shall
members shall be co-terminus with their appointment or election coordinate their agencys participation in PCSD concerns.
in their respective departments or organizations.
Sec. 6. Secretariat. The Council shall be assisted by a
The Council shall meet quarterly, or as frequently as may be Coordinating Secretariat which shall be based at the NEDA, the
deemed necessary. Special meetings may be convened at the call composition of which shall be determined by the Director-
of the Chairperson or by a majority of the members of the General, and a Counterpart Secretariat, the composition of which
Council. In the absence of the Chairperson, the Vice-Chairperson shall be determined by the Civil Society Counterpart Council for
shall preside. In case any civil society, business or labor sector Sustainable Development (CSCCSD).
member of the Council cannot attend the meeting, he or she shall
be represented by the alternate to be designated through their Sec. 7. Budget. There shall be provided in the General
respective selection process for the purpose. Appropriations Act (GAA) a regular line item under the NEDA
budget to cover the operational requirements of the Council
Sec. 4. Powers and Functions of the Council. subject to the prescribed budgetary guidelines. Other member-
agencies of the Council shall also include a line item in the GAA
1. To review and ensure the implementation of the commitments under their respective agency budgets to cover the cost of their
made by the Philippines in the light of the United Nations activities related to PCSD.
Conference on Environment and Development (UNCED) and its
follow-up processes;

2. To act as the coordinating mechanism with the United Nations


Commission on Sustainable Development (UNCSD) and the
Governing Bodies or Secretaries of other related multilateral
conventions, through the Department of Foreign Affairs (DFA);
report on their progress and impacts to the PCSD.

Section 4. Role of the Department of Interior and Local Government


(DILG) and the Local Government Units (LGUs). The LGUs, in
coordination with the local business and civil society, shall implement
the Philippine Agenda 21 through the integration of sustainable
development concerns in their respective plans, programs and
projects and the formulation of their respective Local Agenda 21,
where appropriate.

Section 5. Role of the Civil Society, Labor and Business Sectors. The
PCSD shall coordinate with civil society, labor and business sectors in
operationalizing Philippine Agenda 21. Major stakeholders from these
sectors are thereby enjoined to adopt and implement the principles
Memorandum Order No. 399: DIRECTING THE and action agenda contained in the Philippine Agenda 21.
OPERATIONALIZATION OF THE PHILIPPINE
AGENDA 21 Section 6. Funding. The PCSD, in the coordination with the
Department of Finance (DOF), Department of Budget and Management
AND MONITORING ITS IMPLEMENTATION (DBM), and the National Economic and Development Authority (NEDA),
shall identify funding sources in implementing and monitoring the
Philippine Agenda 21.
Whereas, Article 2, Section 12 of the Constitution mandates as a
policy of the State the protection and advancement of the right of
the people to a balanced and healthful ecology in accord with the
rhythm and harmony of nature;

Whereas, the government adheres to the sustainable development


principles embodied in the Rio Declaration and adopted by the
United Nations Conference on Environment and Development in
Rio de Janeiro, Brazil in 1992, and to which the Philippines is a
signatory;

Whereas, the Philippine Council for Sustainable Development


(PCSD), created by virtue of Executive Order No. 15 (Series of 1992)
is mandated to coordinate the formulation of Philippine Agenda 21;

Whereas, the Philippine Agenda 21 was formulated after an extensive


and intensive process of coordination, cooperation, counterparting
and consensus-building among the various stakeholders of society;

Whereas, the operationalization of the Philippine Agenda 21 shall


provide the overall direction and serve as an enabling environment in
achieving sustainable development;

Section 1. Adoption and Operationalization of the Philippine Agenda


21. The Philippine Agenda 21, as the national action agenda for
sustainable development, is hereby adopted.

Section 2. Overall Administration. The Philippine Council for


Sustainable Development shall oversee and monitor the
operationalization of the Philippine Agenda 21. In this regard, the
Council shall provide the coordinating and monitoring mechanisms for
its implementation. For this purpose, it shall mobilize coordinating
bodies including the Regional Development Councils (RDCs) and the
local councils for sustainable development.

Section 3. Collaborating Agencies. All government agencies,


departments, and instrumentalities are directed to adopt and
translate the principles and action agenda contained in the Philippine
Agenda 21 in their respective workplans, programs and projects and
Further, it is a rule of statutory construction that every part must
be read with other parts, thus, the TC in declaring local
government units as exempt from the coverage of the EIS law,
failed to relate Section 2 of PD 1586 to the several provision of the
same law.

Section 4 of PD 1586 clearly states that no person, partnership or


corporation shall undertake or operate any such declared
environmentally critical project or area without first securing an
Environmental Compliance Certificate issued by the President or
his duly authorized representative. Undoubtedly therefore, local
government units are not excluded from the coverage of PD 1586.
Sec. 1 stated that the policy of the State is to attain an orderly
balance between socio-economic growth and environmental
protection. The Whereas clause stresses that such is only possible
if we adopt an integrated environmental protection program
where all the sectors of the community are involved, i.e., the
government and the private sectors. The local government units,
Cases as part of the machinery of the government, cannot therefore be
deemed as outside the scope of the EIS system

Republic of the Philippines vs. The City of Davao This however presuppose that a project, for which an
Environmental Compliance Certificate is necessary, is
Republic vs. Alvarez, in his capacity as Sec. of DENR environmentally critical or within an environmentally critical
area. In the case at bar, respondent has sufficiently shown that
Alvarez filed an application for a Certificate of Non- the Artica Sports Dome will not have a significant negative
Coverage for its proposed project, the Davao Artica environmental impact because it is not an environmentally critical
Sports Dome, with the Environmental Management project and it is not located in an environmentally critical area.
Bureau (EMB), Region 11. The EMB Region 11 denied They submitted Certification from the City Planning and
the application on ground that the proposed project Development Office, PHILVOLCS, CENRO-West in support thereof.
was within an environmentally critical area, and ruled
that under the Environmental Impact Statement
System, the City of Davao must undergo the The Environmental Impact Statement System, which ensures
environmental impact assessment (EIA) process to environmental protection and regulates certain government
secure an Environmental Compliance Certificate (ECC), activities affecting the environment, was established by
before it can proceed with the construction of its Presidential Decree No. 1586. Under Article II, Section 1, of the
project Rules and Regulations Implementing PD 1586, the declaration of
Believing that it was entitled to a Certificate of Non- certain projects or areas as environmentally critical, and which
Coverage, respondent filed a petition for mandamus shall fall within the scope of the Environmental Impact Statement
with the RTC of Davao alleging that the proposed System, shall be by Presidential Proclamation.
project was neither an environmentally critical project
nor within an environmentally critical area, thus it was
outside the scope of the EIS system. Pursuant thereto, Proclamation No. 2146 was issued
The RTC granted the writ of mandamus and directed proclaiming the following areas and types of projects as
EMB to issue a Certificate of Non-Coverage. It ruled environmentally critical and within the scope of the Environmental
that there is nothing in the EIA System guidelines Impact Statement System established under PD 1586:
which requires LGUs to comply with the EIS law, as only
agencies and instrumentalities are mandated to go A. Environmentally Critical Projects
through the EIA process for their proposed projects
which have significant effect on the quality of the
I. Heavy Industries
environment. A local government unit, not being an
a. Non-ferrous metal industries
agency or instrumentality of the National Government,
b. Iron and steel mills
is deemed excluded
c. Petroleum and petro-chemical industries including
oil and gas
Issue: Whether LGUs are covered by the EIA System?
d. Smelting plants
Decision:
II. Resource Extractive Industries
a. Major mining and quarrying projects
The Local Government Code provides that it is the duty of the
b. Forestry projects
LGUs to promote the peoples right to a balanced ecology.
Pursuant to this, an LGU, like the City of Davao, cannot claim
1. Logging
exemption from the coverage of PD 1586. As a body politic
2. Major wood processing projects
endowed with governmental functions, an LGU has the duty to
3. Introduction of fauna (exotic-animals) in
ensure the quality of the environment, which is the very same
public/private forests
objective of PD 1586.
4. Forest occupancy critical projects and undertakings to provide additional
5. Extraction of mangrove products environmental safeguards as it may deem necessary.
6. Grazing
c. Fishery Projects The Artica Sports Dome in Langub does not come close to
1. Dikes for/and fishpond development projects any of the projects or areas enumerated above. Neither is it
analogous to any of them. It is clear, therefore, that the said
project is not classified as environmentally critical, or within an
III. Infrastructure Projects
environmentally critical area. Consequently, the DENR has no
a. Major dams
choice but to issue the Certificate of Non-Coverage. It becomes its
b. Major power plants (fossil-fueled, nuclear fueled,
ministerial duty, the performance of which can be compelled by
hydroelectric or geothermal)
writ of mandamus, such as that issued by the trial court in the
c. Major reclamation projects
case at bar.
d. Major roads and bridges

B. Environmentally Critical Areas


Laguna Lake Development Authority vs CA
1. All areas declared by law as national parks,
watershed reserves, wildlife preserves and
RA 4850 was enacted creating the "Laguna Lake Development
sanctuaries;
Authority." This agency was supposed to accelerate the
2. Areas set aside as aesthetic potential tourist
development and balanced growth of the Laguna Lake area and
spots;
the surrounding provinces, cities and towns, in the act, within the
3. Areas which constitute the habitat for any
context of the national and regional plans and policies for social
endangered or threatened species of
and economic development.
indigenous Philippine Wildlife (flora and
fauna);
PD 813 amended certain sections RA 4850 because of the concern
4. Areas of unique historic, archaeological, or
for the rapid expansion of Metropolitan Manila, the suburbs and
scientific interests;
the lakeshore towns of Laguna de Bay, combined with current and
5. Areas which are traditionally occupied by
prospective uses of the lake for municipal-industrial water supply,
cultural communities or tribes;
irrigation, fisheries, and the like.
6. Areas frequently visited and/or hard-hit by
natural calamities (geologic hazards, floods,
To effectively perform the role of the Authority under RA 4850,
typhoons, volcanic activity, etc.);
the Chief Executive issued EO 927 further defined and enlarged
7. Areas with critical slopes;
the functions and powers of the Authority and named and
8. Areas classified as prime agricultural lands;
enumerated the towns, cities and provinces encompassed by the
9. Recharged areas of aquifers;
term "Laguna de Bay Region". Also, pertinent to the issues in this
10. Water bodies characterized by one or any
case are the following provisions of EO 927 which include in
combination of the following conditions;
particular the sharing of fees:
a. tapped for domestic purposes
Sec 2: xxx the Authority shall have exclusive jurisdiction to issue
b. within the controlled and/or protected
permit for the use of all surface water for any projects or activities
areas declared by appropriate authorities
in or affecting the said region including navigation, construction,
c. which support wildlife and fishery activities
and operation of fishpens, fish enclosures, fish corrals and the like.
11. Mangrove areas characterized by one or any combination
of the following conditions:
SEC. 3. Collection of Fees. The Authority is hereby empowered to
a. with primary pristine and dense young
collect fees for the use of the lake water and its tributaries for all
growth;
beneficial purposes including but not limited to fisheries,
b. adjoining mouth of major river systems;
recreation, municipal, industrial, agricultural, navigation,
c. near or adjacent to traditional productive
irrigation, and waste disposal purpose; Provided, that the rates of
fry or fishing grounds;
the fees to be collected, and the sharing with other government
d. which act as natural buffers against shore
agencies and political subdivisions, if necessary, shall be subject to
erosion, strong winds and storm floods;
the approval of the President of the Philippines upon
e. on which people are dependent for their
recommendation of the Authority's Board, except fishpen fee,
livelihood.
which will be shared in the following manner: 20 percent of the
12. Coral reefs, characterized by one or any combinations of the
fee shall go to the lakeshore local governments, 5 percent shall go
following conditions:
to the Project Development Fund which shall be administered by a
a. with 50% and above live
Council and the remaining 75 percent shall constitute the share of
coralline cover;
LLDA. However, after the implementation within the three-year
b. spawning and nursery grounds
period of the Laguna Lake Fishery Zoning and Management Plan
for fish;
the sharing will be modified as follows: 35 percent of the fishpen
c. which act as natural breakwater of
fee goes to the lakeshore local governments, 5 percent goes to the
coastlines.
Project Development Fund and the remaining 60 percent shall be
retained by LLDA; Provided, however, that the share of LLDA shall
Environmentally Non-Critical Projects. All other projects,
form part of its corporate funds and shall not be remitted to the
undertakings and areas not declared by the President as
National Treasury as an exception to the provisions of Presidential
environmentally critical shall be considered as non-critical and
Decree No. 1234.
shall not be required to submit an environmental impact
statement. The National Environmental Protection Council, thru
Then came Republic Act No. 7160. The municipalities in the
the Ministry of Human Settlements may however require non-
Laguna Lake Region interpreted the provisions of this law to mean
that the newly passed law gave municipal governments the power to grant permits devolved to respective local government
exclusive jurisdiction to issue fishing privileges within their units concerned.
municipal waters because R.A. 7160 provides:
Issue: Which agency of the Government - the LLDA or the
"Sec. 149. Fishery Rentals; Fees and Charges (a) Municipalities towns and municipalities comprising the region - should exercise
shall have the exclusive authority to grant fishery privileges in the jurisdiction over the Laguna Lake and its environs insofar as the
municipal waters and impose rental fees or charges therefor in issuance of permits for fishery privileges is concerned?
accordance with the provisions of this Section.
Municipal governments thereupon assumed the authority to issue Held: LLDA
fishing privileges and fishpen permits. Big fishpen operators took
advantage of the occasion to establish fishpens and fishcages to Ratio: Section 4 (k) of RA 4850, the provisions of PD 813, and
the consternation of the Authority. Unregulated fishpens and Section 2 of EO 927, specifically provide that the LLDA shall have
fishcages occupied almost one-third the entire lake water surface exclusive jurisdiction to issue permits for the use or all surface
area, increasing the occupation drastically from 7,000 ha in 1990 water for any projects or activities in or affecting the said region,
to almost 21,000 ha in 1995. The Mayor's permit to construct including navigation, construction, and operation of fishpens, fish
fishpens and fishcages were all undertaken in violation of the enclosures, fish corrals and the like. On the other hand, RA 7160
policies adopted by the Authority on fishpen zoning and the has granted to the municipalities the exclusive authority to grant
Laguna Lake carrying capacity. In view of the foregoing fishery privileges in municipal waters. The Sangguniang Bayan may
circumstances, the Authority served notice to the general public grant fishery privileges to erect fish corrals, oyster, mussels or
that: other aquatic beds or bangus fry area within a definite zone of the
municipal waters.
1. All fishpens, fishcages and other aqua-culture structures in
the Laguna de Bay Region, which were not registered or to which The provisions of RA7160 do not necessarily repeal the laws
no application for registration and/or permit has been filed with creating the LLDA and granting the latter water rights authority
Laguna Lake Development Authority as of March 31, 1993 are over Laguna de Bay and the lake region.
hereby declared outrightly as illegal.
2. All fishpens; fishcages and other aqua-culture structures so The Local Government Code of 1991 does not contain any express
declared as illegal shall be subject to demolition which shall be provision which categorically expressly repeal the charter of the
undertaken by the Presidential Task Force for illegal Fishpen and Authority. It has to be conceded that there was no intent on the
Illegal Fishing. part of the legislature to repeal Republic Act No. 4850 and its
3. Owners of fishpens, fishcages and other aqua-culture amendments. The repeal of laws should be made clear and
structures declared as illegal shall, without prejudice to demolition expressed.
of their structures be criminally charged in accordance with
Section 39-A of Republic Act 4850 as amended by P.D. 813 for It has to be conceded that the charter of the LLDA constitutes a
violation of the same laws. Violations of these laws carries a special law. RA 7160 is a general law. It is basic is basic in statutory
penalty of imprisonment of not exceeding 3 years or a fine not construction that the enactment of a later legislation which is a
exceeding Five Thousand Pesos or both at the discretion of the general law cannot be construed to have repealed a special law. It
court. is a well-settled rule in this jurisdiction that "a special statute,
provided for a particular case or class of cases, is not repealed by a
All operators of fishpens, fishcages and other aqua-culture subsequent statute, general in its terms, provisions and
structures declared as illegal in accordance with the foregoing application, unless the intent to repeal or alter is manifest,
Notice shall have one (1) month on or before 27 October 1993 to although the terms of the general law are broad enough to
show cause before the LLDA why their said fishpens, fishcages and include the cases embraced in the special law." Where there is a
other aqua-culture structures should not be conflict between a general law and a special statute, the special
demolished/dismantled." statute should prevail since it evinces the legislative intent more
clearly that the general statute. The special law is to be taken as
One month, thereafter, the Authority sent notices to the an exception to the general law in the absence of special
concerned owners of the illegally constructed fishpens, fishcages circumstances forcing a contrary conclusion. This is because
and other aqua-culture structures advising them to dismantle implied repeals are not favored and as much as possible, given to
their respective structures within 10 days from receipt thereof, all enactments of the legislature. A special law cannot be
otherwise, demolition shall be effected. repealed, amended or altered by a subsequent general law by
mere implication.
The fishpen owners filed injunction cases against the LLDA. The
LLDA filed motions to dismiss the cases against it on jurisdictional Considering the reasons behind the establishment of the
grounds. The motions to dismiss were denied. Meanwhile, Authority, which are enviromental protection, navigational safety,
TRO/writs of preliminary mandatory injunction were issued and sustainable development, there is every indication that the
enjoining the LLDA from demolishing the fishpens and similar legislative intent is for the Authority to proceed with its mission.
structures in question. Hence, the present petition for certiorari,
prohibition and injunction. The CA dismissed the LLDAs We are on all fours with the manifestation of LLDA that "Laguna
consolidated petitions. It ruled that (A) LLDA is not among those de Bay, like any other single body of water has its own unique
quasi-judicial agencies of government appealable only to the natural ecosystem. The 900 km lake surface water, the 8 major
Court of Appeals; (B) the LLDA charter does vest LLDA with quasi- river tributaries and several other smaller rivers that drain into the
judicial functions insofar as fishpens are concerned; (C) the lake, the 2,920 km2 basin or watershed transcending the
provisions of the LLDA charter insofar as fishing privileges in boundaries of Laguna and Rizal provinces, constitute one
Laguna de Bay are concerned had been repealed by the Local integrated delicate natural ecosystem that needs to be protected
Government Code of 1991; (D) in view of the aforesaid repeal, the with uniform set of policies; if we are to be serious in our aims of
attaining sustainable development. This is an exhaustible natural situated therein and the authority to exercise such powers as are
resource-a very limited one-which requires judicious management by its charter vested on it.
and optimal utilization to ensure renewability and preserve its
ecological integrity and balance. Managing the lake resources
would mean the implementation of a national policy geared
towards the protection, conservation, balanced growth and
sustainable development of the region with due regard to the
inter-generational use of its resources by the inhabitants in this
part of the earth. The authors of Republic Act 4850 have foreseen
this need when they passed this LLDA law-the special law
designed to govern the management of our Laguna de Bay lake
resources. Laguna de Bay therefore cannot be subjected to
fragmented concepts of management policies where lakeshore
local government units exercise exclusive dominion over specific
portions of the lake water. The implementation of a cohesive and
integrated lake water resource management policy, therefore, is
necessary to conserve, protect and sustainably develop Laguna de
Bay."

The power of the LGUs to issue fishing privileges was clearly


granted for revenue purposes. This is evident from the fact that
Section 149 of the New Local Government Code empowering local
governments to issue fishing permits is embodied in Chapter 2,
Book II, of Republic Act No. 7160 under the heading, "Specific
Provisions On The Taxing And Other Revenue Raising Power of
LGUs.

On the other hand, the power of the Authority to grant permits


for fishpens, fishcages and other aqua-culture structures is for the
purpose of effectively regulating and monitoring activities in the
Laguna de Bay region and for lake quality control and
management. 6 It does partake of the nature of police power
which is the most pervasive, the least limitable and the most
demanding of all State powers including the power of taxation.
Accordingly the charter of the Authority which embodies a valid
exercise of police power should prevail over the Local Government
Code of 1991 on matters affecting Laguna de Bay.

There should be no quarrel over permit fees for fishpens,


fishcages and other aqua-culture structures in the Laguna de Bay
area. Section 3 of Executive Order No. 927 provides for the proper
sharing of fees collected.

In respect to the question as to whether the Authority is a quasi-


judicial agency or not, it is our holding that, considering the
provisions of Section 4 of Republic Act No. 4850 and Section 4 of
Executive Order No. 927, series of 1983, and the ruling of this
Court in Laguna Lake Development Authority vs. Court of Appeals,
there is no question that the Authority has express powers as a
regulatory a quasi-judicial body in respect to pollution cases with
authority to issue a "cease a desist order" and on matters affecting
the construction of illegal fishpens, fishcages and other aqua-
culture structures in Laguna de Bay. The Authority's pretense,
however, that it is co-equal to the Regional Trial Courts such that
all actions against it may only be instituted before the Court of
Appeals cannot be sustained. On actions necessitating the
resolution of legal questions affecting the powers of the Authority
as provided for in its charter, the Regional Trial Courts have
jurisdiction.

In view of the foregoing, this Court holds that Section 149 of RA


7160, otherwise known as the Local Government Code of 1991,
has not repealed the provisions of the charter of the LLDA,
Republic Act No. 4850, as amended. Thus, the Authority has the
exclusive jurisdiction to issue permits for the enjoyment of fishery
privileges in Laguna de Bay to the exclusion of municipalities
Section 4. Presidential Proclamation of Environmentally Critical
Areas and Projects. The President of the Philippines may, on his
own initiative or upon recommendation of the National
Environmental Protection Council, by proclamation declare certain
projects, undertakings or areas in the country as environmentally
critical. No person, partnership or corporation shall undertake or
operate any such declared environmentally critical project or area
without first securing an Environmental Compliance Certificate
issued by the President or his duly authorized representative. For
the proper management of said critical project or area, the
President may by his proclamation reorganize such government
offices, agencies, institutions, corporations or instrumentalities
including the re-alignment of government personnel, and their
specific functions and responsibilities.

For the same purpose as above, the Ministry of Human


Settlements shall: (a) prepare the proper land or water use
PRESIDENTIAL DECREE No. 1586: ESTABLISHING AN pattern for said critical project(s) or area (s); (b) establish ambient
ENVIRONMENTAL IMPACT STATEMENT SYSTEM, INCLUDING environmental quality standards; (c) develop a program of
OTHER ENVIRONMENTAL MANAGEMENT RELATED MEASURES environmental enhancement or protective measures against
AND FOR OTHER PURPOSES calamituous factors such as earthquake, floods, water erosion and
others, and (d) perform such other functions as may be directed
by the President from time to time.
WHEREAS, the pursuit of a comprehensive and integrated
environment protection program necessitates the establishment
and institutionalization of a system whereby the exigencies of Section 5. Environmentally Non-Critical Projects. All other
socio-economic undertakings can be reconciled with the projects, undertakings and areas not declared by the President as
requirements of environmental quality; environmentally critical shall be considered as non-critical and
shall not be required to submit an environmental impact
statement. The National Environmental Protection Council, thru
WHEREAS, the regulatory requirements of environmental Impact
the Ministry of Human Settlements may however require non-
Statements and Assessments instituted in pursuit of this national
critical projects and undertakings to provide additional
environmental protection program have to be worked into their
environmental safeguards as it may deem necessary.
full regulatory and procedural details in a manner consistent with
the goals of the program.
Section 6. Secretariat. The National Environmental Protection
Council is hereby authorized to constitute the necessary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
secretariat which will administer the Environmental Impact
Philippines, by virtue of the powers vested in me by the
Statement System and undertake the processing and evaluation of
Constitution do hereby order and declare:
environmental impact statements.

Section 1. Policy. It is hereby declared the policy of the State to


Section 7. Management and Financial Assistance. The Ministry of
attain and maintain a rational and orderly balance between socio-
Human Settlements is hereby authorized to provide management
economic growth and environmental protection.
and financial support to government offices and instrumentalities
placed under its supervision pursuant to this Decree financed
Section 2. Environmental Impact Statement System. There is from its existing appropriation or from budgetary augmentation as
hereby established an Environmental Impact Statement System the Minister of Human Settlements may deem necessary.
founded and based on the environmental impact statement
required, under Section 4 of Presidential Decree No. 1151, of all
Section 8. Rules and Regulations. The National Environmental
agencies and instrumentalities of the national government,
Protection Council shall issue the necessary rules and regulations
including government-owned or controlled corporations, as well
to implement this Decree. For this purpose, the National Pollution
as private corporations, firms and entities, for every proposed
Control Commission may be availed of as one of its implementing
project and undertaking which significantly affect the quality of
arms, consistent with the powers and responsibilities of the
the environment.
National Pollution Control Commission as provided in P.D. No. 984.

Section 3. Determination of Lead Agency. The Minister of Human


Section 9. Penalty for Violation. Any person, corporation or
Settlements or his designated representative is hereby authorized
partnership found violating Section 4 of this Decree, or the terms
to name the lead agencies referred to in Section 4 of Presidential
and conditions in the issuance of the Environmental Compliance
Decree No. 1151 which shall have jurisdiction to undertake the
Certificate, or of the standards, rules and regulations issued by the
preparation of the necessary environmental impact statements on
National Environmental Protection Council pursuant to this Decree
declared environmentally critical projects and areas. All
shall be punished by the suspension or cancellation of his/its
Environmental Impact Statements shall be submitted to the
certificate or and/or a fine in an amount not to exceed Fifty
National Environmental Protection Council for review and
Thousand Pesos (P50,000.00) for every violation thereof, at the
evaluation.
discretion of the National Environmental Protection Council.
Section 10. Environmental Revolving Fund. Proceeds from the c. Project proponents are responsible for determining and
penalties prescribed in the preceding Section 9 and other disclosing all relevant information necessary for a methodical '
penalties imposed by the National Pollution Control Commission assessment of the environmental impacts of their projects;
as authorized in P.D. 984, shall be automatically appropriated into
an Environment Revolving Fund hereby created as an exemption d. The review of the EIS by EMB shall be guided by three general
to P.D. 711 and P.D. 1234. The fund shall be used exclusively for criteria: (1) that environmental considerations are integrated into
the operation of the National Environmental Protection Council the overall project planning, (2) that the assessment is technically
and the National Pollution Control Commission in the sound and proposed environmental mitigation, measures are
implementation of this Decree. The rules and regulations for the effective, and (3) that , social acceptability is based on informed
utilization of this fund shall be formulated by the Ministry of public participation;
Human Settlements and submitted to the President for approval.
e. Effective regulatory review of the EIS depends largely on timely
full; and accurate disclosure of relevant: information by project
Section 11. Repealing Clause. The Inter-Agency Advisory Council
proponents and, other stakeholders in the EIA process
of the National Pollution Control Commission created under
f. The social acceptability of a project is a result of meaningful
Section 4 of P.D. 984 is hereby abolished and its powers and
public participation, which shall be assessed as part of the
responsibilities are forthwith delegated and transferred to the
Environmental Compliance Certificate (ECC) application, based on
Control of the National Environmental Protection Council.
concerns related to the project's environmental impacts;

All other laws, decrees, executive orders, rules and regulations g. The timelines prescribed by this Order, within which an
inconsistent herewith are hereby repealed, amended or modified Environmental - Compliance Certificate must be issued, or denied,
accordingly. apply only to processes and actions within the Environmental
Management Bureau's (EMB) control and do not include actions
or activities that are the responsibility of the proponent.

Section 2. Objective
DENR Administrative Order No. 2003- 30
SUBJECT: Implementing Rules and Regulations (IRR) for the The objective of this Administrative Order is to rationalize and
Philippine Environmental Impact Statement (EIS) System streamline the EIS System to make it more effective as a project
planning and management tool by:
Consistent with the continuing effort of the Department of
Environment and Natural Resources (DENR) to rationalize and a. Making the System more responsive to the demands and needs
streamline the implementation of the Philippine Environmental of the project proponents and the various stakeholders;
Impact Statement (EIS) System established under Presidential
Decree (PD) No. 1586, Presidential Proclamation No. 2146 b. Clarifying the, coverage of the System and updating it to take
defining the scope of the EIS System and pursuant to into consideration industrial and technological innovations and
Administrative Order No. 42 issued by tile Office of the President trends
on November 2, 2002, the following rules and regulations are
hereby promulgated; c. Standardizing requirements to ensure focus on critical
environment parameters;
ARTICLE I
BASIC POLICY, OPERATING PRINCIPLES, OBJECTIVES AND d. Simplifying procedures for processing ECC applications, and
DEFINITION OF TERMS establishing measures to ensure adherence to ECC conditions by
project proponents, and
Section 1. Basic Policy and Operating Principles
e. Assuring that critical environmental concerns are addressed
Consistent with the principles of sustainable development, it is the during project development and implementation
policy of the DENR to implement a systems-oriented and
integrated approach to the LIS system to ensure a rational balance Section 3. Definition of Terms
between socio-economic development and environmental
protection for the benefit of present and future generations. For the purpose of this Order, the following definitions shall be
applied;
The following are the key operating principles in the
implementation of the Philippine EIS System: a. Certificate, of Non-Coverage - a certification issued by the EMB
certifying that, based on the submitted project description, the
a. The EIS System is concerned primarily with assessing the direct project is not covered by the EIS System and is not required to
and indirect impacts of a project on the biophysical and human secure an ECC
environment and ensuring that these impacts addressed by
appropriate environmental protection and enhancement b. Co-located projects / undertakings- projects, or series of similar
measures. projects or a project subdivided to several phases and/or stages by
the same proponent, located in contiguous areas.
b. The EIS System aids proponents in incorporating environmental
considerations in planning their projects as well as in determining c Environment - Surrounding air, water (both ground and surface),
the environment's impact on their project. land, flora, fauna, humans and their interrelations.
d. Environmental Compliance Certificate (ECC)- document issued contingency and monitoring measures to enhance positive
by the DENR/EMB after a positive review of an ECC application, impacts and minimize negative impacts and risks of a proposed
certifying that based on the representations of the proponent, the project or undertaking. For operating projects, the EMP can also
proposed project or undertaking will not cause significant be derived from an EMS,
negative: environmental impact. The ECC also certifies that the
proponent has complied with all the requirements of the EIS m. Environmental Management Systems (EMS) - refers to the EMB
System and has committed to implement its approved PEPP EMS as provided for under DAO 2003-14, which is a part of
Environmental Management Plan. The ECC contains specific the overall management system of a project or organization that
measures and conditions that the project proponent has to includes environmental policy, organizational structure, planning
undertake before and during the operation of a project, and in activities, responsibilities, practices, procedures, processes and
some cases, during the project's abandonment phase to mitigate resources for developing, implementing, achieving, reviewing and
identified environmental impacts. maintaining an improved overall environmental performance.

e. Environmentally Critical Area (ECA) - area delineated as n. Environmental Monitoring Fund (EMF) -fund that a proponent
environmentally sensitive such that significant environmental shall set up after an ECC is issued for its project or undertaking, to
impacts are expected if certain types of proposed projects or be used to support the activities of the multi-partite monitoring
programs are located, developed or, implemented in it. team. It shall be immediately accessible and easily disbursable.

f. Environmentally Critical Project (ECP) - project or program that o. Environmental Performance - capability of proponents to
has high potential for significant negative environmental impact. mitigate environmental impacts of projects or programs.

g. Environmental Guarantee Fund (EGF) - fund to be set up by a p. Environmental Performance Report and Management Plan
project proponent which shall be readily accessible and (EPRMP) - documentation of the actual cumulative environmental
disbursable for the immediate clean-up or rehabilitation of areas impacts and effectiveness of current measures for single projects
affected by damages in the environment and the resulting that are already operating but without ECC's, i.e., Category A-3.
deterioration of environmental quality as a direct consequence of For Category B-3 projects, a checklist form of the EPRMP would
a project's construction, operation or abandonment. It shall suffice.
likewise be used to compensate parties and communities affected
by the negative impacts of the project, and to fund community- q. Environmental Risk Assessment (ERA) - assessment, through the
based environment related projects including, but not limited to, use of universally accepted and scientific methods, of risks
information and education and emergency preparedness associated with a project. It focuses on determining the
programs. probability of occurrence of accidents and their magnitude (e.g.
failure, of containment or exposure to hazardous materials or
h. Environmental Impact Assessment (EIA) - process that involves situations.)
evaluating and predicting the likely impacts of a project (including
cumulative impacts) on the environment during construction, r. EMS-based EMP - environmental management plan based on
commissioning, operation and abandonment. It also includes the environmental management system (EMS) standard as
designing appropriate preventive, mitigating and enhancement defined in the DAO 2003-14.
measures addressing these consequences to protect the
environment and the community's welfare. The process is s. Initial Environmental Examination (IEE) Report document
undertaken by, among others, the project proponent and/or EIA similar to an EIS, but with reduced details and depth of
Consultant, EMB, a Review Committee, affected communities and assessment and discussion
other stakeholders.
t. Initial Environmental Examination (IEE) Checklist Report -
i. Environmental Impact Assessment Consultant - a professional or simplified checklist version of an IEE Report, prescribed by the
group of professionals commissioned by the proponent to prepare DENR, to be filled up by a proponent to identify and assess a
the EIS/IEE and other related documents. In some cases, the project's environmental impacts and the mitigation/enhancement
person or group referred to may be the proponent's technical measures to address such impacts.
staff.
u. Multipartite Monitoring Team (MMT) - community-based multi-
j. Environmental Impact Assessment Review Committee (EIARC) - a sectoral team organized for the purpose of monitoring the
body of independent technical experts and professionals of known proponent's compliance with ECC conditions, EMP and applicable
probity from various fields organized by the EMB to evaluate the laws, rules and regulations.
EIS and other related documents and to make appropriate
recommendations regarding the issuance or non-issuance of an v. Programmatic Environmental Impact Statement (PEIS) -
ECC. documentation of comprehensive studies on environmental
baseline conditions of a contiguous area. It also includes an
k. Environmental Impact Statement (EIS) - document, prepared assessment of the carrying capacity of the area to absorb impacts
and submitted by the project proponent and/or EIA Consultant from co-located projects such as those in industrial estates or
that serves as an application for an ECC. It is a comprehensive economic zones (ecozones),
study of the significant impacts of a project on the environment. It
includes an Environmental Management Plan/Program that the w. Programmatic Environmental Performance Report and
proponent will fund and implement to protect the environment Management Plan (PEPRMP) - documentation of actual
cumulative environmental impacts of collocated projects with
l. Environmental Management Plan/Program (EMP) - section in proposals for expansion. The PEPRMP should also describe the
the EIS that details the prevention, mitigation, compensation,
effectiveness of current environmental mitigation measures and coordination with the Department of Trade and Industry (DTI) and
plans for performance improvement. other concerned government agencies, the EMB is authorized to
update or make appropriate revisions to the technical guidelines
x. Project Description (PD) - document, which may also be a for EIS System implementation.
chapter in an EIS, that describes the nature, configuration, use of
raw materials and natural resources, production system, waste or 4.2 The issuance of ECC or CNC for a project under the EIS System
pollution generation and control and the activities of a proposed does not exempt the proponent from securing other government
project. It includes a description of the use of human resources as permits and clearances as required by other laws.
well as activity timelines, during the pre-construction,
construction, operation and abandonment phases. It is to be used In determining the scope of the EIS System, two factors are
for reviewing co-located and single projects under Category C, as considered: (i) the nature of the project and its potential to cause
well as for Category D projects. significant negative environmental impacts, and (ii) the sensitivity
or vulnerability of environmental resources in the project area. 4.3
Y. Project or Undertaking - any activity, regardless of scale or The specific criteria for, determining projects or undertakings to
magnitude, which may have significant impact on the be covered by the EIS System are as follows:
environment.
a. Characteristics of the project or undertaking
z. Proponent - any natural or juridical person intending to Size of the project
implement a project or undertaking. Cumulative nature of impacts vis-a-vis: other projects
Use of natural resources
aa. Public Participation - open, transparent, gender-sensitive, and Generation of waste and environment-related nuisance
community based process aimed at ensuring the social Environment-related hazards and risk of accidents
acceptability of a project or undertaking, involving the broadest
range of stakeholders, commencing at the earliest possible stage, b. Location of the Project
of project design and development and continuing until post- Vulnerability of the project area to disturbances due to its
assessment monitoring. ecological importance, endangered or protected status
Conformity of the proposed project to existing land use,
bb. Procedural Review - phase in the ECC application review based on approved zoning or on national laws and
process to check for the completeness the required documents, regulations
conducted by EIAM Division at the EMB Central Office or Regional Relative abundance, quality and regenerative capacity of
Office. natural resources in the area, including the impact
absorptive capacity of the environment
cc. Process Industry - an industry whose project operation stage
involves chemical, mechanical or other processes. c. Nature of the potential impact
Geographic extent of the impact and size of affected
dd. Scoping - the stage in the EIS System where information and population
project impact assessment requirements are established to Magnitude and complexity of the impact
provide the proponent and the stakeholders the scope of work Likelihood, duration, frequency, and reversibility of the
and terms of reference for the EIS. impact

ee. Secretary - the Secretary of the DENR. The following are the categories of projects/undertakings under
the EIS system:
ff. Social Acceptability - acceptability of a project by affected
communities based on timely and informed participation in the Category A. Environmentally Critical Projects (ECPs) with
EIA process particularly with regard to environmental impacts that significant potential to cause negative environmental impacts
are of concern to them.
Category B. Projects that are not categorized as ECPs, but which
gg. Stakeholders - entities who may be directly and significantly may cause negative environmental impacts because they are
affected by the project or undertaking. located in Environmentally Critical Areas (ECA's)

hh. Substantive Review - the phase in the EIA process whereby the Category C. Projects intended to directly enhance environmental
document submitted is subjected to technical evaluation by the quality or address existing environmental problems not falling
EIARC. under Category A or B.

ii. Technology - all the knowledge, products, processes, tools, Category D. Projects unlikely to cause adverse environmental
methods and systems employed in the creation of goods or impacts.
providing services.
4.4 Proponents of co-located or single projects that fall under
ARTICLE II Category A and B are required to secure ECC. For co-located
ECC APPLICATION PROCESSING AND APPROVAL PROCEDURES projects, the proponent has the option to secure a Programmatic
ECC. For ecozones, ECC application may be programmatic based
Section 4. Scope of the EIS System on submission of a programmatic EIS, or locator-specific based on
submission of project EIS by each locator.
4.1 In general, only projects that pose potential significant impact
to the environment shall be required to secure ECC's. In 4.5 Projects under Category C are required submit Project
Description.
coordinate with relevant government agencies and the private
4.6 Projects classified under Category D may secure a CNC. The sector to customize and update IEE Checklists to further
EMB-DENR, however, may require such, projects or undertakings streamline ECC processing, especially for small and medium
to provide additional environmental safeguards as it may deem enterprises.
necessary. ,
5.2.3. Programmatic Environmental Impact Statement (PEIS)
4.7 Projects/undertakings introducing new technologies or
construction technique but which may cause significant negative The PEIS shall contain the following:
environmental impacts shall be required to submit a Project
Description Which will be used as basis by EMB for screening the a. Executive Summary;
project and b. Project Description;
determining its category. c. Summary matrix of scoping agreements as validated by EMB;
Section 5. Requirements for Securing Environmental Compliance d. [-co-profiling of air, land, water, and relevant people aspects;
Certificate (ECC) and Certificate of Non-Coverage (CNC) e. Environmental carrying capacity analysis;
f. Environmental Risk Assessment (if found necessary during
5.1 Documentary Requirements for Proponents ECC processing scoping);
requirements shall focus on information needed to assess critical g. Environmental Management Plan to include allocation scheme
environmental impacts of projects. Processing requirements shall for discharge of pollutants; criteria for acceptance of locators,
be customized based on the project categories. environmental management guidebook for locators, and
environmental liability scheme;
The total maximum processing time reckons from the acceptance h. Duties of the Environmental Management Unit to be created;
of the ECC/CNC application for substantive review up to the i. Proposals for Environmental Monitoring & Guarantee Funds and
issuance of the decision terms of reference for the Multi-partite Monitoring Team, and
j. Other supporting documents and clearances that may be agreed
5.2 Forms and Contents of EIA Study Reports and Other during the scoping.
Documents Required Under the EIS System
5.2.4. Programmatic Environmental Performance Report and
The following are the different forms of EIA study reports and Management Plan (PEPRMP).
documents required under the EIS System. DENR employees are
prohibited from taking part in the preparation of such documents. The PEPRMP shall contain the following:
The DENR/EMB shall limit to a maximum of two (2) official
requests (in writing) to the project proponent for additional a. Project Description of the co-located projects;
information, which shall be made within the first 75% of the b. Documentation of the actual environmental performance based
processing timeframe shown in Section 5.1.1. on current/past environmental management measures
implemented, and
5.2.1. Environmental Impact Statement (EIS). c. An EMP based on an environmental management system
framework and standard set by EMB.
The EIS should contain at least the following:
5.2.5. Environmental Performance Report and Management Plan
a. EIS Executive Summary;
b. Project Description; The EPRMP shall contain the following:
c. Matrix of the scoping agreement identifying critical issues and a. Project Description;
concerns, as validated by EMB; b. Baseline conditions for critical environmental parameters;
d. Baseline environmental conditions focusing on the sectors (and c. Documentation of the environmental performance based on the
resources) most significantly affected by the proposed action; current/past environmental management measures implemented;
e. Impact assessment focused on significant environmental d. Detailed comparative, description of the proposed project
impacts (in relation to project construction/commissioning, expansion and/or process modification with corresponding
operation and decommissioning), taking into account cumulative material and energy balances in the case of process industries,
impacts; e. EMP based on an environmental management system
f. Environmental Risk Assessment if determined by EMB as framework and standard set by EMB.
necessary during scoping;
g. Environmental Management Program/Plan; 5.2.6. Project Description (PD)
h. Supporting documents; including technical/socio-economic
data used/generated; certificate of zoning viability and municipal The PD shall be guided by the definition of terms and shall contain
land use plan; and proof of consultation with stakeholders; the following: and update IEE Checklists to further streamline ECC
i. Proposals for Environmental Monitoring and Guarantee Funds processing, especially for small and medium enterprises.
including justification of amount, when required;
j. Accountability statement of EIA consultants and the project 5.2.3. Programmatic Environmental Impact Statement (PEIS)
proponent; and The PEIS shall contain the following:
k. Other clearances and documents that may be determined and a. Executive Summary;
agreed upon during scoping. b. Project Description;
c. Summary matrix of scoping agreements as validated by EMB;
5.2.2. Initial Environmental Examination (IEE) Report d. [-co-profiling of air, land, water, and relevant people aspects;
IEE Report is similar to an EIS, but with reduced details of data and e. Environmental carrying capacity analysis;
depth of assessment and discussion. It may be customized for f. Environmental Risk Assessment (if found necessary during
different types of projects under Category B. The EMB shall scoping);
g. Environmental Management Plan to include allocation scheme Proponents should initiate - public consultations early in order to
for discharge of pollutants; criteria for acceptance of locators, ensure that environmentally relevant concerns of stakeholders are
environmental management guidebook for locators, and taken into consideration in the EIA study and the formulation of
environmental liability scheme; the management plan, All public consultations and public hearings
h. Duties of the Environmental Management Unit to be created; conducted during the EIA process are to be documented. The
i. Proposals for Environmental Monitoring & Guarantee Funds and public hearing/ consultation Process report shall be validated by
terms of reference for the Multi-partite Monitoring Team, and the EMB/EMB RD and shall constitute part of the records of the
j. Other supporting documents and clearances that may be agreed EIA process.
during the 5.4 Documentation Requirements for DENR-EMB and EIA
scoping. Reviewers
5.2.4. Programmatic Environmental Performance Report and
Management Plan (PEPRMP). The EMB Central Office as well as the EMB Regional Offices shall
document the proceedings of the ECC application process and
The PEPRMP shall contain the following: shall set up and maintain relevant information management
a. Project Description of the co-located projects; systems. The documentation shall, at a minimum, include the
b. Documentation of the actual environmental performance based following:
on current/past environmental management measures
implemented, and 5.4.1. Review Process Report
c. An EMP based on the environmental management system This is to be prepared by the EMB Central or EMB RO. It is to be
framework and standard set by EMB. forwarded to the DENR Secretary or RD as reference for decision-
making and maintained as part of the records on the ECC
5.2.5. Environmental Performance Report and Management Plan application. The report should contain at least the following:
(EPRMP)
a. Summary of the environmental impacts of the undertaking,
The EPRMP shall contain the following: along with the proposed mitigation and enhancement measures;
b. Key issues/concerns and the proponent's response to these;
a. Project Description; c. Documentation of compliance with procedural requirements;
b. Baseline conditions for critical environmental parameters; d. Acceptability of proposed EMP including the corresponding cost
c. Documentation of the environmental performance based on the of mitigation, EGF and EMF if required;
current/past environmental management measures implemented; e. Key bases for the decision on the ECC application.
d. Detailed comparative, description of the proposed project
expansion and/or process modification with corresponding 5.4.2. EIARC Report
material and energy balances in the case of process industries, This report, to be prepared by the EIA Review Committee, forms
e. EMP based on an environmental management system part of the EIS review documentation. The EIARC Report shall be
framework and standard set by EMB. written by the designated member of the EIARC and signed by all
the members within five days after the final review meeting. If an
5.2.6. Project Description (PD) EIARC member dissents, he or she must submit a memorandum to
the EMB Director through the EIARC Chairman his or her reasons
The PD shall be guided by the definition of terms and shall contain for dissenting.
the following:
At a minimum the EIARC report should contain;
a. Description of the project;
b. Location and area covered; a. Detailed assessment of the proposed mitigation and
c. Capitalization and manpower requirement; enhancement measures for the identified environmental impacts
d. For process industries, a listing of raw materials to be used, and risks;
description of the process or manufacturing technology, type and b. Description of residual or unavoidable environmental impacts
volume of products and discharges: despite proposed mitigation measures;
e. For Category C projects, a detailed description on how c. Documentation of compliance with technical/substantive review
environmental efficiency and overall performance improvement criteria;
will be attained, or how an existing environmental problem will be d. Key issues/concerns and the proponent's response to these,
effectively solved or mitigated by the project, and including social acceptability measures;
f. A detailed location map of the impacted site showing relevant e. Assessment of the proposed EMP (including risk
features (e.g. slope, topography, human settlements). reduction/management plan) and amounts proposed for the
g. Timelines for construction and commissioning . Environmental Guarantee Fund and the Environmental Monitoring
Fund, and
5.2.7. EMS-based EMP. f. Recommended decision regarding the ECC application as well as
The EMS-based EMP is an option that proponents may undertake proposed ECC conditions.
in lieu of the EPRMP for single projects applying for ECC under
Category A-3 and B-3. 5.4.3. Decision Document
This is an official letter regarding the decision on the application. It
5.3 Public Hearing 1 Consultation Requirements may be in the form of an Environmental Compliance Certificate or
For projects under Category A-1, the conduct of public hearing as a Denial Letter. The ECC shall contain the scope and limitations of
part of the EIS review is mandatory unless otherwise determined the approved activities, as well as conditions to ensure compliance
by EMB. For all other undertakings, a public hearing is not with the Environmental Management Plan. The ECC shall also
mandatory unless specifically required by EMB. specify the setting up of an EMF and EGF, if applicable. No ECC
shall be released until the proponent has settled all liabilities, fines lapsed. However, the EMB may deny issuance of ECC if the
and other obligations with DENR. proponent fails to submit required additional information critical
to deciding on the ECC/CNC application, despite written request
A Denial Letter on the other hand shall specify the bases for the from EMB and despite an adequate period for the proponent to
decision. The ECC or Denial Letter shall be issued directly to the comply with the said requirement;
project proponent or its duly authorized representative, and 8.2.2. In cases where ECC issuance cannot be decided due to the
receipt of the letter shall be properly documented. The ECC of a proponent's inability to submit required additional information
project not implemented within five years from its date of within the prescribed period, the EMB shall return the application
issuance is deemed expired. The Proponent shall have to apply for to the proponent. The project proponent may resubmit its
a new ECC if it intends to pursue the project. The reckoning date application, including the required additional information, within
of project implementation is the date of ground breaking, based one (1) year for Category A projects and six (6) months for
on the proponent's work plan as submitted to the EMB. Category B projects without having to pay processing and other
fees. Otherwise, the matter shall be treated as a new application.
Section 6. Appeal
Any party aggrieved by the final decision on the ECC / CNC 8.2.3. In cases where EMB and the project proponent have
applications may, within 15 days from receipt of such decision, file exhausted all reasonable efforts to generate the information
an appeal on the following grounds: needed for deciding on the ECC/CNC application, the responsible
authority (Secretary or EMB Director/ Regional Director), shall
a. Grave abuse of discretion on the part of the deciding authority, make a decision based on the available information so as to
or comply with the prescribed timeframe. The decision shall
b. Serious errors in the review findings. nonetheless reflect a thorough assessment of impacts taking into
consideration (i) the significance of environmental impacts and
The DENR may adopt alternative conflict/dispute resolution risks; (ii) the carrying capacity of the environment; (iii) equity
procedures as a means to settle grievances between proponents issues with respect to use of natural resources, (iv) and the
and aggrieved parties to avert unnecessary legal action. Frivolous proponent's commitment, to institute effective environmental
appeals shall not be countenanced. management measures.

The proponent or any stakeholder may file an appeal to the 8.3 Amending an ECC
following: Requirements for processing ECC amendments shall depend on
the nature of the request but shall be focused on the information
Deciding Authority Where to file the appeal necessary to assess the environmental impact of such changes.
EMB Regional Office Director Office of the EMB Director
EMB Central Office Office of the DENR Secretary 8.3.1. Requests for minor changes to ECCs such as extension of
DENR Secretary Office of the President deadlines for submission of post-ECC requirements shall be
decided upon by the endorsing authority.
Section 7. The EIA Process in Relation to the Project Planning 8.3.2. Requests for major changes to ECCs shall be decided upon
Cycle by the deciding authority.
Proponents are directed under AO 42 to conduct simultaneously 8.3.3. For ECCs issued pursuant to an IEE or IEE checklist, the
the environmental impact study and the project planning or processing of the amendment application shall not exceed thirty
feasibility study. EMB may validate whether or not the EIS was (30) working days; and for ECCs issued pursuant to an EIS, the
integrated with project planning by requiring relevant processing shall not exceed sixty (60) working days. Provisions on
documentary proofs, such as the terms of reference for the automatic approval related to prescribed timeframes under AO 42
feasibility study and copies of the feasibility study report. shall also apply for the processing of applications to amend ECCs.

The EMB shall study the potential application of EIA to policy- Section 9. Monitoring of Projects with ECCs
based undertakings as a further step toward integrating and Post ECC monitoring of projects shall follow these guidelines.
streamlining the EIS system. Other details on requirements for monitoring of projects with
ECCs shall be stipulated in a procedural manual to be formulated
Section 8. EIS System Procedures by EMB.
8.1 Manual of Procedures
9.1 Multipartite Monitoring Team
8.1.1. The procedures to enable the processing of ECCICNC For projects under Category A, a multi-partite monitoring team
applications within the timeframes, specified in AO 42 shall be (MMT) shall be formed immediately after the issuance of an ECC.
prescribed in a Procedural Manual to be issued by the EMB Proponents required to establish an MMT shall put up an
Central Office within ninety (90) days from the date of this Order. Environmental Monitoring Fund (EMF) not later than the initial
8.1.2. The Manual of Procedures shall be updated as the need construction phase of the project.
arises to continually shorten the review and approval/denial
timeframes where feasible. Formulation of said procedures shall The MMT shall be composed of representatives of the proponent
conform to the following guidelines; and of stakeholder groups, including representatives from
concerned LGU's, locally accredited NGOs/POs, the community,
8.2 Processing Timeframe concerned EMB Regional Office, relevant government agencies,
and other sectors that may be identified during the negotiations.
8.2.1. If no decision is made within the specified timeframe, the
ECC/CNC application is deemed automatically approved and the The team shall be tasked to undertake monitoring of compliance
approving authority shall issue the ECC or CNC within five (5) with ECC conditions as well as the EMP. The MMT shall submit a
working days after the prescribed processing timeframe has
semi-annual monitoring report within January and July of each The President shall be apprised of the issues raised as well as the
year. actions taken by DENR to address these issues whenever
necessary.
The EMB shall formulate guidelines for operationalizing area-
based or cluster-based MMT. The Bureau may also develop Section 11. Information Systems Improvement
guidelines for delegating, monitoring responsibilities to other The information system on the EIS System implementation shall
relevant government agencies as may be deemed necessary. For be improved for the effective dissemination of information to the
projects whose significant environmental impacts do not persist public. The information system shall include regular updating of
after the construction phase or whose impacts could be addressed the status of ECC applications through a website and through
through other regulatory means or through the mandates of other other means.
government agencies, the operations of MMT may be terminated
immediately after construction or after a reasonable period during Section 12. Accreditation System
implementation. To enhance the quality of the EIS submitted to the DENR/EMB, the
EMB shall establish an accreditation system for individual
9.2 Self-monitoring and Third Party Audit professionals, academic and professional organizations that can be
The proponent shall also conduct regular self-monitoring of tapped to train professionals in conducting EIA using training
specific parameters indicated in the EMP through its modules approved by EMB.
environmental unit. The proponent's environmental unit shall
submit a semi-annual monitoring report within January and July of The EMB shall also work with DTI-BPS for an accreditation system
each year. for environmental and EMS auditors, consistent with provisions of
DAO 2003-14 on the Philippine Environmental Partnership
For projects with ECCs issued based on a PEPRMP, EPRMP, or an Program.
EMS-based EMP, a third party audit may be undertaken by a
qualified environmental or EMS auditor upon the initiative of the Section 13. Creation of an HAM Division and Strengthening of
proponent and in lieu of forming an MMT. The said proponent Review and Monitoring Capability
shall submit to EMB a copy of the audit findings and shall be held In order to effectively implement the provisions of this
accountable for the veracity of the report. The EMB may opt to administrative order, the current EIA ad hoc division at the EMB
validate the said report. Central Office and the EMB Regional Offices that are primarily in-
charge of processing ECC applications and post-ECC monitoring
9.3 Environmental Guarantee Fund shall be converted to a full-pledged Environmental Impact
An Environmental Guarantee Fund (EGF) shall be established for Assessment and Management Division (EIAMD). The Division shall
all co-located or single projects that have been determined by have the following structure and functions:
DENR to pose a significant public risk or where the project
requires rehabilitation or restoration. An EGF Committee shall be 13.1 The EIA Evaluation Section shall be in charge of screening
formed to manage the fund. It shall be composed of projects for coverage under the EIS System, EIS Scoping, and
representatives from the EMB Central Office, EMB Regional Office, evaluation of EIS's and IEE's submitted for ECC issuance. It shall
affected communities, concerned LGUs, and relevant government have three units responsible, respectively, for screening for
agencies identified by EMB. coverage, EIS Scoping, and evaluation of ECC applications. The
EMB may commission independent professionals, experts from
An integrated MOA on the MMT-EMF-EGF shall be entered into the academe and representatives from relevant government
among the EMB Central Office, EMB Regional Office, the agencies as members of the EIA Review Committee as may be
proponent, and representatives of concerned stakeholders. deer 31d necessary. Further, continual improvement of the
technical capability of the Staff of the EIA Division shall be
9.4 Abandonment undertaken.
For projects that shall no longer be pursued, the proponent should
inform EMB to relieve the former from the requirement for 13.2 The Impact Monitoring and Validation Section shall be in
continued compliance with the ECC conditions. For projects that charge of monitoring compliance to ECC conditions and
have already commenced implementation, an implementation of the Environmental Management Program
abandonment/decommissioning plan shall be submitted for (EMP): The unit shall also validate actual impacts as a basis for
approval by EMB at least six (6) months before the planned evaluating environmental performance and effectiveness of the
abandonment/decommissioning. The implementation of the plan EMP.
shall be verified by EMB.
13.3 In the EMB Central Office, there shall be a Systems Planning
ARTICLE Ill and Management Section. It shall ensure that a continually
STRENGTHENING THE IMPLEMENTATION OF THE PHILIPPINE EIS improving systems-oriented and integrated approach is followed
SYSTEM in implementing the Philippine EIS System vis-a-vis national
development programs. The section shall have two units
Section 10. Coordination with other Government Agencies and responsible for specific systems level concerns: (1) Project Level
other Organizations Systems Planning and Management Unit; and (2) Program and
Policy Level Systems Planning and Management Unit. This section
The DENR-EMB shall conduct regular consultations with DTI and shall also be responsible for technical coordination with the EIA
other pertinent government agencies, affected industry groups Division in the different EMB Regional Offices.
and other stakeholders on continually streamlining the processing
of ECC applications and post ECC implementation to fulfill the The organizational structure of the EMB Central Office is in Annex
policy and objectives of this administrative order. 1.
ARTICLE 1V
MISCELLANEOUS PROVISIONS

Section 14. Budget Allocation


For the effective implementation of this order, adequate funding
should be provided under the annual General Appropriations Act.

Per AU 42, the new position items for the EIA Division shall be
created out of the existing budget and vacant position items
within the government service, which shall be reclassified
accordingly.

Section 15. Fees


All proponents, upon submission of the IEEIEIS and application for
amendment, shall pay filing fees and other charges in accordance
with prescribed standard costs and fees set by EMB in relation to
the implementation of the Philippine EIS System, as shown in
Annex 2.

The proponent shall shoulder the cost of reviewing the EIS.

Section 16. Fines, Penalties And Sanctions


The EMB Central Office or Regional Office Directors shall impose
penalties upon persons or entities found violating provisions of
P.D. 1586, and its Implementing Rules and Regulations. Details of
the Fines and Penalty Structure shall be covered by a separate
order.

The EMB Director or the EMB-RD may issue a Cease and Desist
Order (CDO) based on violations under the Philippine EIS System
to prevent grave or irreparable damage to the environment. Such
CDO shall be effective immediately. An appeal or any motion
seeking to lift the CDO shall not stay its effectivity. However, the
DENR shall act on such appeal or motion within ten (10) working
days from filing.

The EMB may publish the identities of firms that are in violation of
the EIA Law and its Implementing Rules and Regulations despite
repeated Notices of Violation and/or Cease and Desist Orders.

Section 17. Transitory Provisions


The DENR may extend reprieve to proponents of projects
operating without ECC (Categories A-3 and B-3) from penalties
specified in PD 1586 upon registration with the EMB Central
Office. An Environmental Performance Report and Management
Plan (EPRMP) shall be submitted as a requirement for such ECC
application within six months from the signing of this
Administrative order.

During the period that that the Procedural Manual and other
necessary guidelines are being prepared, existing guidelines which
are consistent with the provisions of this Order shall remain in
effect. Adequate resources shall be provided for the formulation
of the Procedural Manual and for the effective implementation of
this Order.

Section 18. Repealing Clause


This Order hereby supersedes Department Administrative Order
No. 96-37, Department Administrative Order No. 2000-37, DAO
2000-05 and other related orders, which are inconsistent
herewith.
Sec. 8. Only those lands shall be declared open to disposition or
concession which have been officially delimited and classified and,
when practicable, surveyed, and which have not been reserved for
public or quasi-public uses, nor appropriated by the Government,
nor in any manner become private property, nor those on which a
private right authorized and recognized by this Act or any other
valid law may be claimed, or which, having been reserved or
appropriated, have ceased to be so However, the President may,
for reasons of public interest, declare lands of the public domain
C.A. No. 141 : AN ACT TO AMEND AND COMPILE THE LAWS open to disposition before the same have had their boundaries
RELATIVE TO LANDS OF THE PUBLIC DOMAIN established or been surveyed, or may, for the same reason,
suspend their concession or disposition until they are again
TITLE I declared open to concession or disposition by proclamation duly
TITLE AND APPLICATION OF THE ACT, LANDS TO WHICH IT published or by Act of the National Assembly.
REFERS, AND CLASSIFICATION, DELIMITATION, AND SURVEY - Sec. 9. For the purpose of their administration and disposition, the
THEREOF FOR CONCESSION lands of the public domain alienable or open to disposition shall
be classified, according to the use or purposes to which such lands
are destined, as follows:
CHAPTER I
(a) Agricultural
SHORT TITLE OF THE ACT, LANDS TO WHICH IT APPLIES, AND
(b) Residential commercial industrial or for similar productive
OFFICERS CHARGED WITH ITS EXECUTION
purposes
(c) Educational, charitable, or other similar purposes
Sec. 2. The provisions of this Act shall apply to the lands of the (d) Reservations for town sites and for public and quasi-public
public domain; but timber and mineral lands shall be governed by uses.
special laws and nothing in this Act provided shall be understood The President, upon recommendation by the Secretary of
or construed to change or modify the administration and Agriculture and Commerce, shall from time to time make the
disposition of the lands commonly called friar lands and those classifications provided for in this section, and may, at any time
which, being privately owned, have reverted to or become the and in a similar manner, transfer lands from one class to another.
property of the Commonwealth of the Philippines, which Sec. 10. The words alienation, disposition, or concession as
administration and disposition shall be governed by the laws at used in this Act, shall mean any of the methods authorized by this
present in force or which may hereafter be enacted. Act for the acquisition, lease, use, or benefit of the lands of the
Sec. 3. The Secretary of Agriculture and Commerce shall be the public domain other than timber or mineral lands.
executive officer charged with carrying out the provisions of this
Act through the Director of Lands, who shall act under his TITLE II
immediate control. AGRICULTURAL PUBLIC LANDS
Sec. 4. Subject to said control, the Director of Lands shall have CHAPTER III
direct executive control of the survey, classification, lease, sale or FORMS OF CONCESSION OF AGRICULTURAL LANDS
any other form of concession or disposition and management of
the lands of the public domain, and his decisions as to questions
Sec. 11. Public lands suitable for agricultural purposes can be
of fact shall be conclusive when approved by the Secretary of
disposed of only as follows, and not otherwise:
Agriculture and Commerce.
(1) For homestead settlement
Sec. 5. The Director of Lands, with the approval of the Secretary of
(2) By sale
Agriculture and Commerce shall prepare and issue such forms,
(3) By lease
instructions, rules, and regulations consistent with this Act, as may
(4) By confirmation of imperfect or incomplete titles:
be necessary and proper to carry into effect the provisions thereof
(a) By judicial legalization
and for the conduct of proceedings arising under such provisions.
(b) By administrative legalization (free patent).
Sec. 12. Any citizen of the Philippines over the age of eighteen
CHAPTER II
years, or the head of a family, who does not own more than
CLASSIFICATION, DELIMITATION, AND SURVEY OF LANDS OF THE
twenty-four hectares of land in the Philippines or has not had the
PUBLIC DOMAIN, FOR THE CONCESSION THEREOF
benefit of any gratuitous allotment of more than twenty-four
hectares of land since the occupation of the Philippines by the
Sec. 6. The President, upon the recommendation of the Secretary United States, may enter a homestead of not exceeding twenty-
of Agriculture and Commerce, shall from time to time classify the four hectares of agricultural land of the public domain.
lands of the public domain into - Sec. 13. Upon the filing of an application for a homestead, the
(a) Alienable or disposable; Director of Lands, if he finds that the application should be
(b) Timber, and approved, shall do so and authorize the applicant to take
(c) Mineral lands, possession of the land upon the payment of five pesos, Philippine
and may at any time and in a like manner transfer such lands from currency, as entry fee. Within six months from and after the date
one class to another, for the purposes of their administration and of the approval of the application, the applicant shall begin to
disposition. work the homestead, otherwise he shall lose his prior right to the
Sec. 7. For the purposes of the administration and disposition of land.
alienable or disposable public lands, the President, upon Sec. 14. No certificate shall be given or patent issued for the land
recommendation by the Secretary of Agriculture and Commerce, applied for until at least one-fifth of the land has been improved
shall from time to time declare what lands are open to disposition and cultivated. The period within which the land shall be
or concession under this Act. cultivated shall not be less than one or more than five years, from
and after the date of the approval of the application. The applicant
shall, within the said period, notify the Director of Lands as soon application of the purchaser. Any person who has so transferred
as he is ready to acquire the title. If at the date of such notice, the his rights may not again apply for a new homestead. Every transfer
applicant shall prove to the satisfaction of the Director of Lands, made without the previous approval of the Director of Lands shall
that he has resided continuously for at least one year in the be null and void and shall result in the cancellation of the entry
municipality in which the land is located, or in a municipality and the refusal of the patent.
adjacent to the same, and has cultivated at least one-fifth of the Sec. 21. Any non-Christian Filipino who has not applied for a
land continuously since the approval of the application, and shall home-stead, desiring to live upon or occupy land on any of the
make affidavit that no part of said land has been alienated or reservations set aside for the so-called non-Christian tribes may
encumbered, and that he has complied with all the requirements request a permit of occupation for any tract of land of the public
of this Act, then, upon the payment of five pesos, as final fee, he domain reserved for said non-Christian tribes under this Act, the
shall be entitled to a patent. area of which shall not exceed four hectares. It shall be an
Sec. 15. At the option of the applicant, payment of the fees essential condition that the applicant for the permit cultivate and
required in this chapter may be made to the municipal treasurer improve the land, and if such cultivation has not been begun
of the locality, who, in turn, shall forward them to the provincial within six months from and after the date on which the permit
treasurer. In case of delinquency of the applicant, the Director of was received, the permit shall be cancelled. The permit shall be
Lands may, sixty days after such delinquency has occurred, either for a term of one year. If at the expiration of this term or at any
cancel the application or grant an extension of time not to exceed time prior thereto, the holder of the permit shall apply for a
one hundred and twenty days for the payment of the sum due. homestead under the provisions of this chapter, including the
Sec. 16. If at any time before the expiration of the period allowed portion for which a permit was granted to him, he shall have the
by law for the making of final proof, it shall be proven to the priority, otherwise the land shall be again open to disposition at
satisfaction of the Director of Lands, after due notice to the the expiration of the permit.
homesteader, that the land entered is under the law not subject For each permit the sum of one peso shall be paid.
to home-stead entry, or that the homesteader has actually
changed his residence, or voluntarily abandoned the land for CHAPTER IV
more than six months at any one time during the years of SALE
residence and occupation herein required, or has otherwise failed
to comply with the requirements of this Act, the Director of Lands Sec. 22. Any citizen of lawful age of the Philippines, and any such
may cancel the entry.
citizen not of lawful age who is a head of a family, and any
Sec. 17. Before final proof shall be submitted by any person corporation or association of which at least sixty per centum of
claiming to have complied with the provisions of this chapter, due
the capital stock or of any interest in said capital stock belongs
notice, as prescribed by the Secretary of Agriculture and wholly to citizens of the Philippines, and which is organized and
Commerce shall be given to the public of his intention to make
constituted under the laws of Philippines, and corporate bodies
such proof, stating therein the name and address of the organized in the Philippines authorized under their charters to do
homesteader, the description of the land, with its boundaries and
so; may purchase any tract of public agricultural land disposable
area, the names of the witness by whom it is expected that the under this Act, not to exceed one hundred and forty-four hectares
necessary facts will be established, and the time and place at
in the case of an individual and one thousand and twenty-four
which, and the name of the officer before whom, such proof will hectares in that of a corporation or association, by proceeding as
be made.
prescribed in this chapter: Provided, That partnerships shall be
Sec. 18. In case the homesteader shall suffer from mental entitled to purchase not to exceed one hundred and forty-four
alienation, or shall for any other reason be incapacitated from
hectares for each member thereof. But the total area so
exercising his rights personally, the person legally representing purchased shall in no case exceed the one thousand and twenty-
him may offer and submit the final proof on behalf of such
four hectares authorized in this section for associations and
incapacitated person. corporations.
Sec. 19. Not more than one homestead entry shall be allowed to
Sec. 23. No person, corporation, association, or partnership other
any one person, and no person to whom a homestead patent has than those mentioned in the last preceding section may acquire or
been issued by virtue of the provisions of this Act regardless of the
own agricultural public land or land of any other denomination or
area of his original homestead, may again acquire a homestead; classification, which is at the time or was originally, really or
Provided, however, That any previous homesteader who has been
presumptively, of the public domain, or any permanent
issued a patent for less than twenty-four hectares and otherwise improvement thereon, or any real right on such land and
qualified to make a homestead entry, may be allowed another
improvement: Provided, however, That persons, corporations,
homestead which, together with his previous homestead shall not associations or partnerships which, at the date upon which the
exceed an area of twenty-four hectares.
Philippine Constitution took effect, held agricultural public lands
Sec. 20. If at any time after the approval of the application and or land of any other denomination, that belonged originally, really
before the patent is issued, the applicant shall prove to the
or presumptively, to the public domain, or permanent
satisfaction of the Director of Lands that he has complied with all improvements on such lands, or a real right upon such lands and
the requirements of the law, but cannot continue with his
Constitution took improvements, having acquired the same under
homestead, through no fault of his own, and there is a bona fide the laws and regulations in force at the date of such acquisition,
purchaser for the rights and improvements of the applicant on the
shall be authorized to continue holding the same as if such
land, and that the conveyance is not made for purposes of persons, corporations, associations, or partnerships were qualified
speculation, then the applicant, with the previous approval of the
under the last preceding section; but they shall not encumber,
Director of Lands may transfer his rights to the land and convey, or alienate the same to persons, corporations,
improvements to any person legally qualified to apply for a
associations, or partnerships not included in section twenty-two
homestead, and immediately after such transfer, the purchaser of this Act, except by reason of hereditary succession, duly
shall file a homestead application for the land so acquired and
legalized and acknowledged by competent courts.
shall succeed the original homesteader in his rights and Sec. 24. Lands sold under the provisions of this chapter must be
obligations beginning with the date of the approval of said
appraised in accordance with section one hundred and sixteen of
this Act. The Director of Lands shall announce the sale thereof by Sec. 27. The purchase price shall be paid as follows: The balance
publishing the proper notice once a week for six consecutive of the purchase price after deducting the amount paid at the time
weeks in the Official Gazette, and in two newspapers one of submitting the bid, may be paid in full upon the making of the
published in Manila and the other published in the municipality or award, or in not more than ten equal annual installments from the
in the province where the lands are located, or in a neighboring date of the award.
province, and the same notice shall be posted on the bulletin Sec. 28. The purchaser shall have not less than one-fifth of the
board of the Bureau Of Lands in Manila, and in the most land broken and cultivated within five years after the date of the
conspicuous place in the provincial building and the municipal award; and before any patent is issued, the purchaser must show
building of the province and municipality, respectively, where the of occupancy, cultivation, and improvement of at least one-fifth of
land is located, and, if practicable, on the land itself; but if the the land applied for until the date on which final payment is
value of the land does not exceed two hundred and forty pesos, made: Provided, however, That in case land purchased is to be
the publication in the Official Gazette and newspapers may be devoted to pasture, it shall be sufficient compliance with this
omitted. The notices shall be published one in English and the condition if the purchaser shall graze on the land as many heads
other in Spanish or in the local dialect, and shall fix a date not of his cattle as will occupy at least one-half of the entire area at
earlier than sixty days after the date of the notice upon which the the rate of one head per hectare.
land will be awarded to the highest bidder, or public bids will be Sec. 29. After title has been granted, the purchaser may not,
called for, or other action will be taken as provided in this chapter. within a period of ten years from such cultivation or grant, convey
Sec. 25. Public agricultural lands which are not located within ten or encumber or dispose said lands or rights thereon to any person,
(10) kilometers from the boundaries of the city proper in corporation or association, without prejudice to any right or
chartered cities or within five (5) kilometers from the municipal interest of the Government in the land: Provided, That any sale
hall or town occupants plaza of any municipality may be sold to and encumbrance made in violation of the provisions of this
actual occupants who do not own any parcel of land or whose section, shall be null and void and shall produce the effect of
total land holdings do not exceed five hectares and who comply annulling the acquisition and reverting the property and all rights
with the minimum requirements of Commonwealth Act thereto to the State, and all payments on the purchase price
numbered one hundred forty-one, as amended, and who have theretofore made to the Government shall be forfeited.
resided on the land applied for at least two years prior to the date Sec. 30. If at any time after the date of the award and before the
of the application. issuance of patent, it is proved to the satisfaction of the Director
All bids must be sealed and addressed to the Director of Lands of Lands, after due notice to the purchaser, that the purchaser has
and must have enclosed therewith cash or certified check, voluntarily abandoned the land for more than one year at any one
treasury warrant, or post-office money order payable to the order time, or has otherwise failed to comply with the requirements of
of the Director of Lands for ten per centum of the amount of the the law, then the land shall revert to the State, and all prior
bid, which amount shall be retained in case the bid is accepted as payments made by the purchaser and all improvements existing
part payment of the purchase price: Provided, That no bid shall be on the land shall be forfeited.
considered the amount of which is less than the appraised value Sec. 31. No person, corporation, association, or partnership shall
of the land. be permitted, after the approval of this Act, to acquire the title to
In addition to existing publication requirements in section twenty- or possess as owner any lands of the public domain if such lands,
four of Commonwealth Act Numbered one hundred forty-one, as added to other lands belonging to such person, corporation,
amended, notices and of applications shall be posted for a period association, or partnership shall give a total area greater than area
of not less than thirty days in at least three conspicuous places in the acquisition of which by purchase is authorized under this Act.
the municipality where the parcel of land is located, one of which Any excess in area over this maximum and all right, title, interest,
shall be at the municipal building, and other, in the barrio council claim or action held by any person, corporation, association, or
building of the barrio where the land is located. partnership resulting directly or indirectly in such excess shall
Sec. 26. Upon the opening of the bids, the land shall be awarded revert to the State.
to the highest bidder. If there are two or more equal bids which This section shall, however, not be construed to prohibit any
are higher than the others, and one of such equal bids is that of person, corporation, association, or partnership authorized by this
the applicant, his bid shall be accepted. If, however, the bid of the Act to require lands of the public domain from making loans upon
applicant is not one of such equal and higher bids, the Director of real necessary for the recovery of such loans; but in this case, as
Lands shall at once submit the land for public bidding, and to the soon as the excess above referred to occurs, such person,
person making the highest bid on such public auction the land corporation, association, or partnership shall dispose of such lands
shall be awarded. In any case, the applicant shall always have the within five years, for the purpose of removing the excess
option of raising his bid to equal that of the highest bidder, and in mentioned. Upon the land in excess of the limit there shall be
this case the land shall be awarded to him. No bid received at such paid, so long as the same is not disposed of, for the first year a
public auction shall be finally accepted until the bidder shall have surtax of fifty per centum additional to the ordinary tax to which
deposited ten per centum of his bid, as required in Section such property shall be subject, and for each succeeding year fifty
twenty-five of this Act. In case none of the tracts of land that are per centum shall be added to the last preceding annual tax rate,
offered for sale or the purchase of which has been applied for, has until the property shall have been disposed of.
an area in excess of twenty-four hectares, the Director of Lands The person, corporation, association, or partnership owning the
may delegate to the District Land Officer concerned the power of land in excess of the limit established by this Act shall determine
receiving bids, holding the auction, and proceeding in accordance the portion of land to be segregated.
with the provisions of this Act, but the District Land Officer shall At the request of Secretary of Agriculture and Commerce, the
submit his recommendation to the Director of Lands, for the final Solicitor-General or the officer acting in his stead shall institute
decision of the latter in the case. the necessary proceedings in the proper court for the purpose of
The District Land Officer shall accept and process any application determining the excess portion to be segregated, as well as the
for the purchase of public lands not exceeding five hectares disposal of such portion in the exclusive interest of the
subject to the approval of the Director of Lands within sixty days Government.
after receipt of the recommendation of said District Land Officer.
Sec. 32. This chapter shall be held to authorize only one purchase hundred sixteen of this Act; except for lands reclaimed by the
of the maximum amount of land hereunder by the same person, Government, which shall not be less than four per centum of the
corporation, association, or partnership; and no corporation, appraised and reappraised value of the land: Provided, That one-
association, or partnership, any member of which shall have fourth of the annual rental of these lands reclaimed prior to the
received the benefits of this chapter or of the next following approval of this Act shall accrue to the construction and
chapter, either as an individual or as a member of any other improvement portion of the Portworks Funds: And provided,
corporation, association, or partnership, shall purchase any other further, That the annual rental of not less than four per centum of
lands of the public domain under this chapter. But any purchaser the appraised and reappraised value of the lands reclaimed using
of public land, after having made the last payment upon and the Portworks Fund after the approval of this Act shall all accrue
cultivated at least one-fifth of the land purchased, if the same to the construction and improvement portion of the Portworks
shall be less than the maximum allowed by this Act, may purchase Fund. But if the land leased is adapted to and be devoted for
successively additional agricultural public land adjacent to or not granting purposes, the annual rental shall be not less than two per
distant from the land first purchased, until the total area of such centum of-the appraised and reappraised value thereof- Every
purchases shall reach the maximum established in this chapter: contract of lease under the provisions of this chapter shall contain
Provided, That in making such additional purchase or purchases, a cause to the effect that are appraisal of the land leased shall be
the same conditions shall be complied with as prescribed by this made every ten years from the date of the approval of the lease, if
Act for the first purchase. the term of the same shall be in excess of ten years. In case the
lessee is not agreeable to the reappraisal and prefers to give up
CHAPTER V his contract of lease, he shall notify the Director of Lands of his
LEASE desire within the six months next preceding the date on which the
reappraisal takes effect, and in case his request is approved, the
Director of Lands may, if the lessee should so desire, proceed in
Sec. 33. Any citizen of lawful age of the Philippines, and any
accordance with section one hundred of this Act.
corporation or association of which at least sixty per centum of
Sec. 38. Leases shall run for a period of not more than twenty-five
the capital stock or of any interest in said capital stock belongs
years, but may be renewed once for another period of not to
wholly to citizens of the Philippines, and which is organized and
exceed twenty-five years, in case the lessee shall have made
constituted under the laws of the Philippines, may lease any tract
important improvements which, in the discretion of the Secretary
of agricultural public land available for lease under the provisions
of Agriculture and Commerce justify a renewal. Upon the final
of this Act, not exceeding a total of one thousand and twenty-four
expiration of the lease, all buildings and other permanent
hectares. If the land leased is adapted to and be devoted for
improvements made by the lessee, his heirs, executors,
grazing purposes, an area not exceeding two thousand hectares
administrators, successors, or assigns shall become the property
may be granted. No member, stockholder, of officer,
of the Government, and the land together with the said
representative, attorney, agent, employee or bondholder of any
improvements shall be disposed of in accordance with the
corporation or association holding or controlling agricultural
provisions of chapter five of this Act.
public land shall apply, directly or indirectly, for agricultural public
Sec. 39. It shall be an inherent and essential condition of the lease
land except under the homestead and free patent provisions of
that the lessee shall have not less than one-third of the land
this Act: Provided, That no lease shall be permitted to interfere
broken and cultivated within five years after the date of the
with any prior claim by settlement or occupation, until the
approval of the lease: Provided, however, That in case the land
consent of the occupant or settler is first had, or until such claim
leased is to be devoted to pasture, it shall be sufficient compliance
shall be legally extinguished, and no person, corporation, or
with this condition if the lessee shall graze on the land as many
association shall be permitted to lease lands here-under which are
heads of cattle as will occupy at least one-half of the entire area at
not reasonably necessary to carry on his business in case of an
the rate of one head per hectare.
individual, or the business for which it was lawfully created and
Sec. 40. The lessee shall not assign, encumber, or sublet his rights
which it may lawfully pursue in the Philippines, if an association or
without the consent of the Secretary of Agriculture and
corporation.
Sec. 34. A notice of the date and place of the auction of the right Commerce, and the violation of this condition shall avoid the
contract: Provided, That assignment, encumbrance, or subletting
to lease the land shall be published and announced in the same
for purposes of speculation shall not be permitted in any case:
manner as that prescribed for the publication and announcement
Provided, further, That nothing contained in this section shall be
of the notice of sale, in section twenty-four of this Act.
understood or construed to permit the assignment, encumbrance,
Sec. 35. All bids must be sealed and addressed to the Director of
or subletting of lands leased under this Act, or under any previous
Lands and must have enclosed therewith cash or a certified check,
Act, to persons, corporations, or associations which under this Act,
Treasury warrant, or post-office money order payable to the order
are not authorized to lease public lands.
of the Director of Lands, for a sum equivalent to the rental for at
Sec. 41. The lease of any lands under this chapter shall not confer
least, the first three months of the lease: Provided, That no bid
the right to remove or dispose of any valuable timber except as
shall be considered in which the proposed annual rental is less
provided in the regulations of the Bureau of Forestry for cutting
than three per centum of the value of the land according to the
timber upon such lands. Nor shall such lease confer the right to
appraisal made in conformity with section one hundred and
remove or dispose of stone, oil, coal, salts. or other minerals, or
sixteen of this Act.
medicinal mineral waters existing upon the same. The lease as to
Sec. 36. The auction of the right to lease the land shall be
the part of the land which shall be mineral may be canceled by the
conducted under the same procedure as that prescribed for the
Secretary of Agriculture and Commerce, after notice to the lessee,
auction sale of agricultural lands as described in section twenty-six
whenever the said part of the land is more valuable for
of this Act: Provided, That no bid shall be accepted until the
agricultural purposes.
bidder shall have deposited the rental for at least the first three
The commission of waste or violation of the forestry regulations
months of the lease.
by the lessee shall work a forfeiture of his last payment of rent
Sec. 37. The annual rental of the land leased shall not be less than
and render him liable to immediate dispossession and suit for
three per centum of the value of the land, according to the
damage.
appraisal and reappraisal made in accordance with section one
Sec. 42. After having paid rent for at least the first two years of the council affected, and copies thereof shall be posted on the bulletin
lease, and having complied with the requirements prescribed in board of the Bureau of Lands at Manila and at conspicuous places
section thirty nine, the lessee of agricultural public land with an in the provincial building and at the municipal building and
area than the maximum allowed by law, may lease successively barangay hall or meeting place. It shall moreover, be announced
additional agricultural public land adjacent to or near the land by government radio whenever available, in each of the barrios of
originally leased until the total- area of such leases shall reach the the municipality.
maximum established in this chapter: Provided, That in making Sec. 46. If, after the filing of the application and the investigation,
such additional lease, the same conditions shall be complied with the Director of Lands shall be satisfied of the truth of the
as prescribed by this Act for the first lease. allegations contained the application and that the applicant comes
Sec. 43. During the life of the lease, any lessee who shall have within the provisions chapter, he shall cause a patent to issue to
complied with all the conditions thereof and shall have the the applicant or his legal successor for the tract so occupied and
qualifications required by section twenty-two, shall have the cultivated, provided its area does not exceed twenty-four
option of purchasing the land leased subject to the restrictions of hectares: Provided, That no application shall be finally acted upon
chapter five of this Act. until notice thereof has been published in the municipality and
barrio in which the land is located and adverse claimants have had
CHAPTER VI an opportunity to present their claims.
FREE PATENTS
CHAPTER VII
JUDICIAL CONFIRMATION OF IMPERFECT OR INCOMPLETE TITLES
Sec. 44. Any natural-born citizen of the Philippines who is not the
owner of more than twenty-four hectares and who since July
fourth, nineteen hundred and twenty-six or prior thereto, has Sec. 47. The persons specified in the next following section are
continuously occupied and cultivated, either by himself or through hereby granted time, not to extend beyond December 31, 1987
his predecessors-in-interest, a tract or tracts of agricultural public within which to take advantage of the benefit of this chapter:
lands subject to disposition, or who shall have paid the real estate Provided, That this extension shall apply only where the area
tax thereon while same has not been occupied by any person shall applied for does not exceed 144 hectares. Provided, further, That
be entitled, under the provisions of this chapter, to have a free the several periods of time designated by the President in
patent issued to him for such tract or tracts of such land not to accordance with section forty-five of this Act shall apply also to
exceed twenty-four hectares. the lands comprised in the provisions of this chapter, but this
A member of the national cultural minorities who has section shall not be construed as prohibiting any of said persons
continuously occupied and cultivated, either by himself or through from acting under this chapter at any time prior to the period
his predecessors-in-interest, a tract or tracts of land, whether fixed by the President.
disposable or not since July 4, 1955, shall be entitled to the right Sec. 48. The following-described citizens of the Philippines,
granted in the preceding paragraph of this section: Provided, That occupying lands of the public domain or claiming to own any such
at the time he files his free patent application he is not the owner lands or an interest therein, but whose titles have not been
of any real property secured or disposable under this provision of perfected or completed, may apply to the Court of First Instance
the Public Land Law of the province where the land is located for confirmation of their
Sec. 45. The President of the Philippines (Prime Minister), upon claims and the issuance of a certificate of title therefor, under the
recommendation of the Secretary of Natural Resources, shall from Land Registration Act , to wit:
time to time fix by proclamation the period which applications for (a) Those who prior to the transfer of sovereignty from Spain to
Proclamation free patents may be filed in the district, chartered the prior United States have applied for the purchase,
city, of period province, municipality or region specified in such composition or other form of grant of lands of the public domain
proclamation, and upon the expiration of the period so under the laws and royal decrees then in force and have instituted
designated, unless the same be extended by the President (Prime and prosecuted the proceedings in connection therewith, but
Minister) all the land comprised within such district, chartered have with or without default upon their part, or for any other
city, province, municipality or region subject thereto under the cause, not received title therefor, if such applicants or grantees
provisions of this chapter may be disposed of as agricultural public and their heirs have occupied and cultivated said lands
land without prejudice to the prior right of the occupant and continuously since the filing of their applications.
cultivator to acquire such land under this Act by means other than (b) Those who by themselves or through their predecessors in
free patent. The time to be fixed in the entire Archipelago for the interest have been in open, continuous, exclusive, and notorious
filing of applications under this Chapter shall not extend beyond possession and occupation of agricultural lands of the public
December 31, 1987, except in the provinces of Agusan del Norte, domain, under a bona fide claim of acquisition or ownership, for
Agusan del Sur, Cotabato, South Cotabato, Bukidnon, Lanao del at least thirty years immediately preceding the filing of the
Norte, Lanao del Sur, Davao del Norte, Davao del Sur, Davao application for confirmation of title except when prevented by war
Oriental, Sulu, Mt. Province, Benguet, Kalinga-Apayao, and Ifugao or force majeure. These shall be conclusively presumed to have
where the President of the Philippines, upon recommendation of performed all the conditions essential to a Government grant and
the Secretary of Natural Resources, shall determine or fix the time shall be entitled to a certificate of title under the provisions of this
beyond which the filing of applications under this Chapter shall chapter.
not extend. The period fixed for any district, chartered city, (c) Members of the national cultural minorities who by themselves
province, or municipality shall begin to run thirty days after the or through their predecessors-in-interest have been in open,
publication of the proclamation in the Official Gazette and if continuous, exclusive and notorious possession and occupation of
available in one newspaper of general circulation in the city, lands of the public domain suitable to agriculture, whether
province or municipality concerned. A certified copy of said disposable or not, under a bona fide claim of ownership for at
proclamation shall be furnished by the Secretary of Natural least 30 years shall be entitled to the rights granted in sub-section
Resources within 30 days counted from the date of the (b) hereof.
presidential proclamation to the Director of Lands and to the
provincial board, the municipal board or city council and barangay
Sec. 49. No person claiming title to lands of the public domain not Sec. 54. If in the hearing of any application arising under this
possession of the qualifications specified in the last preceding chapter the court shall find that more than one person or claimant
section may apply for the benefits of this chapter. has an interest in the land, such conflicting interests shall be
Sec. 50. Any person or persons, or their legal representatives or adjudicated by the court and decree awarded in favor of the
successors in right, claiming any lands or interest in lands under person or persons entitled to the land according to the laws, but if
the provisions of this chapter, must in every case present an none of said person is entitled to the land, or if the person who
application to the proper Court of First Instance, praying that the might be entitled to the same lacks the qualifications required by
validity of the alleged title or claim be inquired into and that a this Act for acquiring agricultural land of the public domain, the
certificate of title be issued to them under the provisions of the decision shall be in favor of the Government.
Land Registration Act. Sec. 55. Whenever, in any proceedings under this chapter to
The application shall conform as nearly as may be in its material secure registration of an incomplete or imperfect claim of title
allegations to the requirements of an application for registration initiated prior to the transfer of sovereignty from Spain to the
under the Land Registration Act, and shall be accompanied by a United States, it shall appear that had such claims been
plan of the land and all documents evidencing a right on the part prosecuted to completion under the laws prevailing when
of the applicant to the land claimed. The application shall also instituted, and under the conditions of the grant then
state the citizenship of the applicant and shall set forth fully the contemplated, the conveyance of such land to the applicant would
nature of the claim and when based upon proceeding initiated not have been gratuitous, but would have involved payment
under Spanish laws, it shall specify as exactly as possible the date therefor to the Government, then and in that event the court
and form of application for purchase composition or other form of shall, after decreeing in whom title should vest, further determine
grant, the extent of the compliance with the conditions required the amount to be paid as a condition for the registration of the
by the Spanish laws and royal decrees for the acquisition of legal land. Such judgment shall be certified to the Director of Lands by
title, and if not fully complied with, the reason for such the clerk of the court for collection of the amount due from the
noncompliance, together with a statement of the length of time person entitled to conveyance.
such land or any portion thereof has been actually occupied by Upon payment to the Director of Lands of the price specified in
the claimant or his predecessors in interest; the use made of the the judgment, he shall so certify to the proper Court of First
land, and the nature of the enclosure, if any. The fees provided to Instance and said court shall forthwith order the registration of
be paid for the registration of lands under the Land Registration the land in favor of the competent person entitled thereto. If said
Act shall be collected from applicants under this chapter. person shall fail to pay the amount of money required by the
Sec. 51. Applications for registration under this chapter shall be decree within a reasonable time fixed in the same, the court shall
heard in the Court of First Instance in the same manner and shall order the proceeding to stand dismissed and the title to the land
be subject to the same procedure as established in the Land shall then be in the State free from any claim of the applicant.
Registration Act for other applications, except that a notice of all Sec. 56. Whenever any judgment of confirmation or other decree
such applications, together with a plan of the lands claimed, shall of the court under this chapter shall become final, the clerk of the
be immediately forwarded to the Director of Lands, who may court concerned shall certify that fact to the Director of Lands,
appear as a party in such cases: Provided, That prior to the with a certified copy of the decree of confirmation or judgment of
publication for hearing, all of the papers in said case shall be the court and the plan and technical description of the land
transmitted papers by the clerk to the Solicitor General or officer involved in the decree or judgment of the court.
acting in his stead, in order that he may, if he deems it advisable Sec. 57. No title or right to, or equity in, any lands of the public
for the interests of the Government, investigate all of the facts domain may hereafter be acquired by prescription or by adverse
alleged in the application or otherwise brought to his attention. possession or occupancy, or under or by virtue of any law in effect
The Solicitor-General shall return such papers to the clerk as soon prior to American occupation, except as expressly provided by
as practicable within three months. laws enacted after said occupation of the Philippines by the
The final decree of the court shall in every case be the basis for United States.
the original certificate of title in favor of the person entitled to the
property under the procedure prescribed in section forty-one of TITLE III
the Land Registration Act. LANDS FOR RESIDENTIAL, COMMERCIAL OR INDUSTRIAL
Sec. 52. In cadastral proceedings, instead of an application, an PURPOSES AND OTHER SIMILAR PURPOSES
answer or claim may be filed with the same effect as in the CHAPTER VIII
procedure provided in the last preceding two sections. CLASSIFICATION AND CONCESSION OF PUBLIC LANDS SUITABLE
Sec. 53. It shall be lawful for the Director of Lands, whenever in FOR RESIDENCE, COMMERCE AND INDUSTRY
the opinion of the President the public interests shall require it, to
cause to be filed in the proper Court of First Instance, through the
Sec. 58. Any tract of land of the public domain which, being
Solicitor-General or the officer acting in his stead, a petition neither timber nor mineral land, is intended to be used for
against the holder, claimant, possessor, or occupant of any land
residential purposes or for commercial, industrial, or other
who shall not have voluntarily come in under the provisions of this productive purposes other than agricultural, and is open to
chapter or of the Land Registration Act, stating in substance that
disposition or concession, shall be disposed of under the
the title of such holder, claimant, possessor, or occupant is open provisions of this chapter and not otherwise.
to discussion; or that the boundaries of any such land which has
Sec. 59. The lands disposable under this title shall be classified as
not been brought into court as aforesaid are open to question; or follows:
that it is advisable that the title to such lands be settled and
(a) Lands reclaimed by the Government by dredging, filing, or
adjudicated, and praying that the title to any such land or the other means;
boundaries thereof or the right to occupancy thereof be settled
(b) Foreshore;
and adjudicated. The judicial proceedings under this section shall (c) Marshy lands or lands covered with water bordering upon the
be in accordance with the laws on adjudication of title in cadastral
shores or banks of navigable lakes or rivers;
proceedings. (d) Lands not included in any of the foregoing classes.
Sec. 60. Any tract of land comprised under this title may be leased (b) The land rented and the improvements thereon shall be
or sold, as the case may be, to any person, corporation, or reappraised every ten years if the term of the lease is in excess of
association authorized to purchase or lease public lands for that period.
agricultural purposes. The area of the land so leased or sold shall (c) The term of the lease shall be as prescribed by section thirty-
be such as shall, in the judgment of the Secretary of Agriculture eight of this Act.
and Natural Resources, be reasonably necessary for the purposes (d) The lessee shall construct permanent improvements
for which such sale or lease is requested, and shall in no case appropriate for the purpose for which the lease is granted, shall
exceed one hundred and forty-four hectares: Provided, however, commence the construction thereof within six months from the
That this limitation shall not apply to grants, donations, transfers date of the award of the right to lease the land, and shall
made to a province, municipality or branch or subdivision of the complete the said construction within eighteen months from said
Government for the purposes deemed by said entities conducive date.
to the public interest; but the land so granted donated, or (e) At the expiration of the lease or of any extension of the same,
transferred to a province, municipality, or branch or subdivision of all improvements made by the lessee, his heirs, executors,
the Government shall not be alienated, encumbered, or otherwise administrators, successors, or assigns shall become the property
disposed of in a manner affecting its title, except when authorized of the Government.
by Congress: Provided, further, That any person, corporation, (f) The regulation of all rates and fees charged to the public; and
association or partnership disqualified from purchasing public land the annual submission to the Government for approval of all
for agricultural purposes under the provisions of this Act, may tariffs of such rates and fees.
lease land included under this title suitable for industrial or (g) The continuance of the easements of the coast police and
residential purposes, but the lease granted shall only-be valid other easements reserved by existing law or by any laws hereafter
while such land is used for the purposes referred to. enacted.
Sec. 61. The lands comprised in classes (a), (b), and (c) of section (h) Subjection to all easements and other rights acquired by the
fifty-nine shall be disposed of to private parties by lease only and owners of lands bordering upon the foreshore or marshy land.
not otherwise, as soon as the President, upon recommendation by The violation of one or any of the conditions specified in the
the Secretary of Agriculture and Commerce shall declare that the contract shall give rise to the rescission of said contract. The
same are not necessary for the public service and are open to Secretary of Agriculture and Commerce may, however, subject to
disposition under this chapter. The lands included in class (d) may such conditions as he may prescribe, waive the rescission arising
be disposed of by sale or lease under the provisions of this Act. from a violation of the conditions of subsection (d), or extend the
Sec. 62. The lands reclaimed by the Government by dredging, time within which the construction of the improvements shall be
filling or otherwise shall be surveyed and may, with the approval commenced and completed.
of the Secretary of Agriculture and Commerce, be divided by the Sec. 65. The sale of the lands comprised in classes (c) and (d) of
Director of Lands into lots and blocks, with the necessary streets section fifty-nine shall, among others, comprise the following
and alley-ways between them, and said Director shall give notice conditions:
to the public by publication in the Official Gazette or by other (a) The purchaser shall make improvements of a permanent
means, that the lots or blocks not needed for public purposes character appropriate for the purpose for which the land is
shall be leased for commercial or industrial or other similar purchased, shall commence work thereon within six months from
purposes. the receipt of the order of award, and shall complete the
Sec. 63. Whenever it is decided that lands covered by this chapter construction of said improvements within eighteen months from
are not needed for public purposes, the Director of Lands shall ask the date of such award; otherwise the Secretary of Agriculture
the Secretary of Agriculture and Commerce for authority to and Natural Resources may rescind the contract.
dispose of the same. Upon receipt of such authority, the Director (b) The purchase price shall be paid in cash or in equal annual
of Lands shall give notice by public advertisement in the same installments, not to exceed ten.
manner as in the case of leases or sales of agricultural public land, The contract of sale may contain other conditions not inconsistent
that the Government will lease or sell, as the case may be, the lots with the provisions of this Act.
or blocks specified in the advertisement, for the purpose stated in Sec. 66. The kind of improvements to be made by the lessee or
the notice and subject to the conditions specified in this chapter. the purchaser, and the plans thereof, shall be subject to the
Sec. 64. The leases executed under this chapter by the Secretary approval of the Secretary of Public Works and Communications, in
of Agriculture and Commerce shall, among other conditions, case they are constructions or improvements which if by the
contain the following: Government, would properly have to be executed under the
(a) The rental shall not be less than three per centum of the supervision of the Bureau of Public Works.
appraised or reappraised value of the land plus one per centum of Sec. 67. The lease or sale shall be made through oral bidding; and
the appraised or reappraised value of the improvements, except adjudication shall be made to the highest bidder. However, where
for lands reclaimed by the Government which shall not be less an applicant has made improvements on the land by virtue of a
than four per centum of the appraised or reappraised value of the permit issued to him by competent authority, the sale or lease
land plus two per centum of the appraised or reappraised value of shall be made by sealed bidding as prescribed in section twenty-
the improvements thereon: Provided, That twenty-five per six of this Act, the provisions of which shall be applied wherever
centum of the total annual rental on all lands reclaimed prior to applicable. If all or part of the lots remain unleased or unsold, the
the approval of this Act and one per centum of the appraised or Director of Lands shall from time to time announce in the Official
reappraised value of improvements shall accrue to the Gazette or in any other newspapers of general circulation, the
construction and improvement portion of the Portworks Fund: lease or sale of those lots, if necessary
And provided, further, That the annual rental on lands reclaimed Sec. 68. The Secretary of Agricultural and Commerce may grant to
using the Portworks Fund together with the fee due on account of qualified persons temporary permission, upon payment of a
the improvement thereon after the effectivity of this Act shall all reasonable charge, for the use of any portion of the lands covered
accrue to the construction and improvement portion of the by this chapter for any lawful private purpose, subject to
Portworks Fund. revocation at any time when, in his judgment, the public interest
shall require it.
Sec. 73. It shall then be the duty of the Director of Lands, after
TITLE IV having recorded the proclamation of the President and the survey
LANDS FOR EDUCATIONAL, CHARITABLE, AND OTHER SIMILAR accompanying the same, and having completed the legal
PURPOSES proceedings prescribed in chapter thirteen of this Act, to direct a
CHAPTER IX subdivision in accordance with the instructions of the Secretary of
CONCESSION OF LANDS FOR EDUCATIONAL, CHARITABLE, AND Agriculture and Commerce, if there shall be such instructions, and
OTHER SIMILAR PURPOSES if there shall not be any, then in the manner which may to the
Director of Lands seem best adapted to the convenience and
interest of the public and the residents of the future town.
Sec. 69. Whenever any province, municipality, or other branch or
Sec. 74. The plat of the subdivision shall designate certain lots for
subdivision of the Government shall need any portion of the land
commercial and industrial uses and the remainder as residence
of the public domain open to concession for educational,
lots, and shall also reserve and note the lots owned by private
charitable or other similar purposes, the President, upon
individuals as evidenced by record titles, or possessed or claimed
recommendation by the Secretary of Agriculture and Commerce,
by them as private property. Such lots, whether public or private,
may execute contracts in favor of the same. in the form of
shall be numbered upon a general plan or system.
donation, sale, lease, exchange, or any other form, under terms
The plat prepared by the Director of Lands shall be submitted to
and conditions to be inserted in the contract; but land so granted
the Secretary of Agriculture and Commerce for consideration,
shall in no case be encumbered or alienated, except when the
modification, amendment, or approval.
public service requires their being leased or exchanged, with the
Sec. 75. Unless the necessary reservations are made in the
approval of the President, for other lands belonging to private
proclamation of the President, the Director of Lands, with the
parties, or if the National Assembly disposes otherwise.
approval of the Secretary of Agriculture and Commerce, shall
Sec. 70. Any tract of public land of the class covered by this title
reserve out of the land by him to be subdivided lots of sufficient
may be sold or leased for the purpose of founding a cemetery,
size and convenient situation for public use, as well as the
church, college, school, university, or other institutions for
necessary avenues, streets, alleyways, parks, and squares. The
educational, charitable or philanthropical purposes or scientific
avenues, streets, alleys, parks, plazas, and lots shall be laid out on
research, the area to be such as may actually and reasonably be
the plat as though the lands owned or claimed by private persons
necessary to carry out such purpose, but not to exceed ninety-six
were part of the public domain and part of the reservation, with a
hectares in any case. The sale or lease shall be made subject to
view to the possible subsequent purchase or condemnation
the same conditions as required for the sale and lease of
thereof, if deemed necessary by the proper authorities.
agricultural public land, but the Secretary of Agriculture and
Sec.76. At any time after the subdivision has been made, the
Commerce may waive the conditions requiring cultivation. The
President may, in case the public interest requires it, reserve for
Secretary of Agriculture and Commerce, if conveyance he sees fit,
public purposes any lot or lots of the land so reserved and not
may order the sale to be made without public auction, at a price
disposed of.
to be fixed by said Secretary, or the lease to be granted without
Sec. 77. If, in order to carry out the provisions of this chapter, it
auction, at a rental to be fixed by him. In either case it shall be a
shall be necessary to condemn private lands within the limits of
condition that the purchaser or lessee or their successors or
the new town, the President shall direct the Solicitor-General or
assigns shall not sell transfer, encumber or lease the land for the
officer acting in his stead to at once begin proceedings for
purposes of speculation or use it for any purpose other than that
condemnation, in accordance with the provisions of existing law.
contemplated in the application, and that the violation of this
Sec. 78. When the plat of subdivision has been finally approved by
condition shall give rise to the immediate rescission of the sale or
the Secretary of Agriculture and Commerce, the Director of Lands
lease, as the case may be, and to the forfeiture to the Government
shall record the same in the records of his office and shall forward
of all existing improvements: Provided, That it shall in no case be
a certified copy of such record to the register of deeds of the
sublet, encumbered or resold under the conditions above set
province in which the land lies, to be by such register recorded in
forth except with the approval of the Secretary of Agriculture and
the records of his office
Commerce.
Sec. 79. All lots, except those claimed by or belonging to private
parties and those reserved for parks, buildings, and other public
TITLE V
uses, shall be sold, after due notice, at public auction to the
RESERVATIONS
highest bidder, after the approval and recording of the plat of
CHAPTER X
subdivision as above provided, but no bid shall be accepted that
TOWN SITE RESERVATIONS
does not equal at least two-thirds of the appraised value, nor shall
bids be accepted from persons, corporations, associations, or
Sec. 71. Whenever it shall be considered to be in the public partnerships not authorized to purchase public lands for
interest to found a new town. The Secretary of Agriculture and commercial, residential or industrial purposes under the
Commerce shall direct the Director of Lands to have a survey provisions of this Act. The provisions of sections twenty-six and
made by his Bureau of the exterior boundaries of the site on sixty-five of this Act shall be observed in so far as they are
which such town is to be established, and upon the completion of applicable. Lots for which satisfactory bids have not been received
the survey he shall send the same to said Secretary, with his shall be again offered for sale, under the same conditions as the
recommendations. first time, and if they then remain unsold, the Director of Lands
Sec. 72. The Secretary of Agriculture and Commerce, if he shall be authorized to sell them at private sale for not less than
approves the recommendations of the Director of Lands, shall two-thirds of their appraised value.
submit the matter to the President to the end that the latter may Sec. 80. All funds derived from the sale of lots shall be covered
issue a proclamation reserving the land surveyed, or such part into the Philippine Treasury as part of the general funds.
thereof as he may deem proper, as a town site, and a certified Sec. 81. Not more than two residence lots and two lots for
copy of such proclamation shall be sent to the Director of Lands commercial and industrial uses in any one town site shall be sold
and another to the register of deeds of the province in which the to any one person, corporation, or association without the specific
surveyed land lies. approval of the Secretary of Agriculture and Commerce.
Sec. 82. The Assembly shall have the power at any time to modify, so reserved to any person or corporation, in order that such
alter, rescind, repeal, annul, and cancel, with or without person or corporation may clear, break, and prepare for cultivation
conditions, limitation, exceptions, or reservations, all and any the lands of said colony and establish the necessary irrigation
dispositions made by the executive branch of the Philippine system and suitable roads and fences; but final disposition shall be
Government by virtue of this chapter, and the exercise of this made of the land in accordance with the provisions of this Act,
power shall be understood as reserved in all cases, as an inherent subject, however, to such conditions as the National Assembly
condition thereof. may establish for the reimbursement of the expense incurred in
putting such lands in condition for cultivation: Provided, That the
CHAPTER XI National Assembly may direct that such land so prepared for
RESERVATIONS FOR PUBLIC AND SEMI-PUBLIC PURPOSES cultivation may be disposed of only by sale or lease.

CHAPTER XII
Sec. 83. Upon the recommendation of the Secretary of Agriculture
PROVISIONS COMMON TO RESERVATIONS
and Commerce, the President may designate by proclamation any
tract or tracts of land of the public domain as reservations for the
use of the Commonwealth of the Philippines or of any of its Sec. 86. A certified copy of every proclamation of the President
branches, or of the inhabitants thereof, in accordance with issued under the provisions of this title shall be forwarded to the
regulations prescribed for this purpose, or for quasi-public uses or Director of Lands for record in his office, and a copy of this record
purposes when the public interest requires it, including shall be forwarded to the register of deeds of the province or city
reservations for highways, rights of way for railroads, hydraulic where the land lies. Upon receipt of such certified copy, the
power sites, irrigation systems, communal pastures or leguas Director of Lands shall order the immediate survey of the
comunales, public parks, public quarries, public fishponds, proposed reservation if the land has not yet been surveyed, and as
workingmens village and other improvements for the public soon as the plat has been completed, he shall proceed in
benefit. accordance with the next following section.
Sec. 84. Upon recommendation of the Secretary of Agriculture Sec. 87. If all the lands included in the proclamation of the
and Commerce, the President, may by proclamation, designate President are not registered under the Land Registration Act, the
any tract or tracts of the public domain for the exclusive use of the Solicitor-General, if requested to do so by the Secretary of
non-Christian Filipinos, including in the reservation, in so far as Agriculture and Commerce, shall proceed in accordance with the
practicable, the lands used or possessed by them, and granting to provision of section fifty-three of this Act.
each member not already the owner, by title or gratuitous patent, Sec. 88. The tract or tracts of land reserved under the provisions
of four or more hectares of land, the use and benefit only of a of section eighty-three shall be non-alienable and shall not be
tract of land not to exceed four hectares for each male member subject to occupation, entry, sale, lease, or other disposition until
over eighteen years of age or the head of a family. As soon as the again declared alienable under the provisions of this Act or by
Secretary of the Interior shall certify that the majority of the non- proclamation of the President.
Christian inhabitants of any given reservation have advanced
sufficiently in civilization, then the President may order that the TITLE VI
lands of the public domain within such reservation be granted GENERAL PROVISIONS
under the general provisions of this Act to the said inhabitants, CHAPTER XIII
and the subdivision and distribution of said lands as above APPLICATIONS: PROCEDURE, CONCESSION OF LANDS, AND
provided shall be taken into consideration in the final disposition LEGAL RESTRICTIONS AND ENCUMBRANCES
of the same. But any non-Christian inhabitant may at any time
apply for the general benefits of this Act provided the Secretary of
Sec. 89. All applications filed under the provisions of this Act shall
Agriculture and Commerce is satisfied that such inhabitant is be addressed to the Director of Lands.
qualified to take advantage of the provisions of the same:
Sec. 90. Every application under the provisions of this Act shall be
Provided, That all grants, deeds, patents and other instruments of made under oath and shall set forth:
conveyance of land or purporting to convey or transfer rights of
(a) The full name of applicant, his age, place of birth, citizenship,
property, privileges, or easements appertaining to or growing out civil status, and post-office address. In case the applicant is a
of lands, granted by sultans, datus, or other chiefs of the so-called
corporation, association or co-partnership, the application shall be
non-Christian tribes, without the authority of the Spanish accompanied with a certified copy of its articles of incorporation,
Government while the Philippines were under the sovereignty of
association or co-partnership together with an affidavit of its
Spain, or without the consent of the United States Government or President, manager, or other responsible officer, giving the names
of the Philippine Government since the sovereignty over the
of the stockholders or members, their citizenship, and the number
Archipelago was transferred from Spain to the United States, and of shares subscribed by each.
all deeds and other documents executed or issued or based upon
(b) That the applicant has all the qualifications required by this Act
the deeds, patents, and documents mentioned, are hereby in the case.
declared to be illegal, void, and of no effect.
(c) That he has none of the disqualifications mentioned herein.
Sec. 85. Upon recommendation by the Secretary of Agriculture (d) That the application is made in good faith, for the actual
and Commerce, the President may, by proclamation designate any
purpose of using the land for the object specified in the
tract or tracts of land of the public domain for the establishment application and for no other purpose, and that the land is suitable
of agricultural colonies; and although the disposition of the lands
for the purpose to which it is to be devoted.
to the colonists shall be made under the provisions of this Act, yet, (e) That the application is made for the exclusive benefit of the
while the Government shall have the supervision and
application and not, either directly or indirectly, for the benefit of
management of said colonies, the Secretary of Agriculture and any other person or persons, corporation, association, or
Commerce may make the necessary rules and regulations for the
partnership.
organization and internal administration of the same. The (f) As accurate a description of the land as may be given, stating its
Secretary of Agriculture and Commerce may also, under
nature the province, municipality, barrio, and sitio where it is
conditions to be established by the Assembly, turn over a colony
located, and its limits and boundaries, specifying those having area that may be granted to the applicant, and to deny or cancel
reference to accidents of the ground or permanent monuments, if or limit any application for concession, purchase, or lease if
any. convinced of the lack of means of the applicant for using the land
(g) Whether all or part of the land is occupied or cultivated or for the purpose for which he has requested it.
improved, and by whom, giving his post-office address, and Sec. 93. Lands applied for under this Act shall conform to the legal
whether the land has been occupied or cultivated or improved by subdivisions and shall be contiguous if comprising more than one
the applicant or his ascendant, the name of the ascendant, the subdivision. If subdivisions have not been made on the date of the
relationship with him, the date and place of the death of the application, the lands shall be rectangular in form so far as
ascendant, the date when the possession and cultivation began, practicable, but it shall be endeavored to make them conform to
and description of the improvements made, accompanying the legal subdivision as soon as the same has been made,
satisfactory evidence of the relationship of the applicant with the provided the interests of the applicant or grantee are protected;
ascendant, and of the death of the latter and the descendants left and the subdivision assigned to the applicant or grantee shall, so
by him, in case it is alleged that he occupied and cultivated the far as practicable, include the land improved or cultivated. The
land first; or whether there are indications of its having been regulations to be issued for the execution of the provisions of this
occupied, cultivated, or improved entirely or partially, and if so, in section shall take into account the legal subdivision to be made by
what such indications consist, whether he has made investigations the Government and the inadvisability of granting the best land at
as to when and by whom such improvements were made, and if a given place to only one person.
so, how such investigations were made and what was the result Sec. 94. In case the legal subdivisions have already been made at
thereof; or whether the land is not occupied, improved, or the time of the filing of the application, no charge shall be made
cultivated either entirely or partially, and there are no indications for the survey; but if the legal subdivisions have not yet been
of it having ever been occupied, improved, or cultivated, and in made, the cost of the survey shall be charged to the Government,
this case, what is the condition of the land. except in the following cases:
(h) That the land applied for is neither timber nor mineral land (a) In purchases under chapters five and ten of this Act, the cost of
and does not contain guano or deposits of salts or coal. the survey shall be charged to the purchaser if the same is a
(i) That the applicant agrees that a strip forty meters wide starting corporation, association, or partnership; in other purchases the
from the bank on each side of any river or stream that may be purchases, whoever it be, shall pay the total cost of the survey.
found on the land applied for, shall be demarcated and preserved (b) In leases, the cost of the survey shall be paid by the lessee; but
as permanent timberland to be planted exclusively to trees of at any time after the first five years from the approval of the lease,
known economic value, and that he shall not make any clearing and during Cost of the life of the same, the lessee shall be entitled
thereon or utilize the same for ordinary farming purposes even to the reimbursement of one-half of the cost of the survey, if he
after patent shall have been issued to him or a contract of lease shows to the satisfaction of the Director of Lands that he has
shall have been executed in his favor. 68 occupied and improved a sufficient area of the land or incurred
Sec. 91. The statements made in the application shall be sufficient expenses in connection therewith to warrant such
considered as essential conditions and parts of any concession, reimbursement.
title, or permit issued on the basis of such application, and any Section95. If before the delimitation and survey of a tract of public
false statements therein or omission of facts altering, changing, or land the President shall declare the same disposable or alienable
modifying the consideration of the facts set forth in such and such land shall be actually occupied by a person other than
statements, and any subsequent modification, alteration, or the applicant, the Director of Lands shall inform the occupant of
change of the material facts set forth in the application shall ipso his prior right to apply for the land and shall give him one hundred
facto produce the cancellation of the concession, title, or permit and twenty days time in which to file the application or apply for
granted. It shall be the duty of the Director of Lands, from time to the concession by any of the forms of disposition authorized by
time and whenever he may deem it advisable, to make the this Act, if such occupant is qualified to acquire a concession
necessary investigations for the purpose of ascertaining whether under this Act.
the material facts set out in the application are true, or whether Sec. 96. As soon as any land of the public domain has been
they continue to exist and are maintained and preserved in good surveyed, delimited, and classified, the President may, in the order
faith, and for the purposes of such investigation, the Director of issued by him declaring it open for disposition, designate a term
Lands is hereby empowered to issue subpoenas and subpoenas within which occupants with improvements but not entitled to
duces tecum and, if necessary, to obtain compulsory process from free patents may apply for the land occupied by them, if they have
the courts. In every investigation made in accordance with this the qualifications required by this Act.
section, the existence of bad faith, fraud, concealment, or Sec. 97. If in the case of the two last preceding sections, the
fraudulent and illegal modification of essential facts shall be occupant or occupants have not made application under any of
presumed if the grantee or possessor of the land shall refuse or the provisions of this Act at the expiration of the time limit fixed,
fail to obey a subpoena or subpoena duces tecum lawfully issued they shall lose any prior right to the land recognized by this Act,
by the Director of Lands or his authorized delegates or agents, or and the improvements on the land, if any, shall be forfeited to the
shall refuse or fail to give direct and specific answers to pertinent Government.
questions, and on the basis of such presumption, an order of Sec. 98. All rights in and interest to, and the improvements and
cancellation may issue without further proceedings. crops upon, land for which an application has been denied or
Sec. 92. Although the maximum area of public land that may be canceled or a patent or grant refused, or a contract or concession
acquired is fixed, yet the spirit of this Act is that the rule which rescinded or annulled, shall also be forfeited to the Government.
must determine the real area to be granted is the beneficial use of Sec. 99. The Secretary of Agriculture and Commerce may order
the land. The concession or disposition shall be for less than the such improvements and crops to be appraised separately, for sale
maximum area authorized if, at the time of the issuance of the to the new applicant or grantee, or may declare such land open
patent or of the concession or disposition, it shall appear that the only to sale or lease.
applicant is utilizing and is only able to utilize a smaller area, even Sec. 100. In case the cancellation is due to delinquency on the
though the application is for a greater area. For the purposes of part of the applicant or grantee, the same shall be entitled to the
this section, the Director of Lands is authorized to determine the reimbursement of the proceeds of the sale of the improvements
and crops, after deducting the total amount of his indebtedness to name of the Government of the Republic of the Philippines under
the Government and the expense incurred by it in the sale of the the signature of the President of the Philippines: Provided,
improvements or crops and in the new concession of the land. however, That the President of the Philippines may delegate to
Sec. 101. All actions for the reversion to the Government of lands the Secretary of Agriculture and Natural Resources 74 and/or the
of the public domain or improvements thereon shall be instituted Under secretary for Natural Resources 74 the power to sign
by the Solicitor-General or the officer acting in his stead, in the patents or certificates covering lands not exceeding one hundred
proper courts, in the name of the Commonwealth of the forty-four hectares in area, and to the Secretary of Agriculture and
Philippines. Natural Resources 75 the power to sign patents or certificates
Sec. 102. Any person, corporation, or association may file an covering lands exceeding one hundred forty-four hectares in area:
objection under oath to any application or concession under this Provided, further, That District Land Officers in every province are
Act, grounded on any reason sufficient under this Act for the hereby empowered to sign patents or certificates covering lands
denial or cancellation of the application or the denial of the patent not exceeding five hectares in area when the office of the District
or grant. If, after the applicant or grantee has been given suitable Land Officer is properly equipped to carry out the purposes of this
opportunity to be duly heard, the objection is found to be well Act: Provided, That no applicant shall be permitted to split the
founded, the Director of Lands shall deny or cancel the application area applied for by him in excess of the area fixed in this section
or deny patent or grant, and the person objecting shall, if among his relatives within the sixth degree of consanguinity or
qualified, be granted a prior right of entry for a term of sixty days affinity excepting the applicants married children who are actually
from the date of the notice. occupying the land: Provided, finally, That copies of said patents
Sec. 103. All the proofs, affidavits, and oaths of any kind required issued shall be furnished to the Bureau of Lands for record
or necessary under this Act may be made before the justice of the purposes. No patent or certificate shall be issued by the District
peace 71 of the municipality in which the land lies, or before the Land Officer unless the survey of the land covered by such patent
judge or clerk of the Court of First Instance of the province in or certificate, whether made by the Bureau of Lands or by a
which the land lies, or before any justice of the peace or private surveyor, has been approved by the Director of Lands. The
chargeable notary public of the province in which the land lies, or Director of Lands shall promptly act upon all surveys submitted to
before any officer or employee of the Bureau of Lands authorized him for approval and return the same to the District Land Officer
by law to administer oaths. within ninety days after receipt of such surveys by his office. In
The fees for the taking of final evidence before any of the officials case of disapproval, the Director of Lands shall state the reasons
herein-before mentioned shall be as follows: therefor. Any person aggrieved by the decision or action of the
For each affidavit, fifty centavos. District Land Officer may, within thirty days from receipt of the
For each deposition of the applicant or the witness, fifty centavos. copy of the said decision, appeal to the Director of Lands. Such
Sec. 104. Any owner of uncultivated agricultural land who patents or certificates shall be effective only for the purposes
knowingly permits application for the same to be made to the defined in Section one hundred and twenty-two of the land
Government and the land to be tilled and improved by a bona fide Registration Act, and actual conveyance of the land shall be
grantee without protesting to the Bureau of Lands within one year effected only as provided in said section.
after cultivation has begun, shall lose all to the part of the land so All surveys pending approval by the Director of Lands at the time
cultivated and improved, unless he shall bring action in the proper this Act takes effect shall be acted upon by him within ninety days
court before such action for recovery prescribes and obtains from the effectivity of this Act.
favorable judgment therein, in which case the court shall, upon its Section108. No patent shall issue nor shall any concession or
decision becoming final, order the payment to the grantee, within contract be finally approved unless the land has been surveyed
a reasonable period, of the indemnity fixed by said court for the and an accurate plat made thereof by the Bureau of Lands.
cultivation and improvement. Sec. 109. In no case shall any land be granted under the provisions
Sec. 105. If at any time the applicant or grantee shall die before of this Act when this affects injuriously the use of any adjacent
the issuance of the patent or the final grant of the land, or during land or of the waters, rivers, creeks, foreshore, roads, or
the life of the lease, or while the applicant or grantee still has roadsteads, or vest the grantee with other valuable rights that
obligations pending towards the Government, in accordance with may be detrimental to the public interest.
this Act, he shall be succeeded in his rights and obligations with Sec. 110. Patents or certificates issued under the provisions of this
respect to the land applied for or granted or leased under this Act Act shall not include nor convey the title to any gold, silver,
by his heirs in law, who shall be entitled to have issued to them copper, iron, or other metals or minerals, or other substances
the patent or final concession if they show that they have containing minerals, guano, gums, precious stones, coal, or coal oil
complied with the requirements therefor, and who shall be contained in lands granted thereunder. These shall remain to be
subrogated in all his rights and obligations for the purposes of this property of the State.
Act. Sec. 111. All persons receiving title to lands under the provisions
Sec. 106. If at any time after the approval of the application and of this Act shall hold such lands subject to the provisions hereof
before the issuance of a patent or the final concession of the land, and to the same public servitudes as exist upon lands owned by
or during the life of the lease, or at any time when the applicant or private persons, including those with reference to the littoral of
grantee still has obligations pending with the Government, in the sea and the banks of navigable rivers or rivers upon which
accordance with this Act, it appears that the land applied for is rafting may be done.
necessary, in the public interest, for the protection of any source Sec. 112. Said land shall further be subject to a right-of-way not
of water or for any work for the public benefit that the exceeding sixty (60) meters in width for public highways, railroads,
Government wishes to undertake, the Secretary of Agriculture and irrigation ditches, aqueducts, telegraph and telephone lines and
Commerce may order the cancellation of the application or the similar works as the Government or any public or quasi-public
non issuance of the patent or concession or the exclusion from service or enterprise, including mining or forest concessionaires,
the land applied for of such portion as may be required, upon may reasonably require for carrying on their business, with
payment of the value of the improvements, if any. damages for the improvements only. 77
Sec. 107. All patents or certificates for land granted under this Act Sec. 113. The beneficial use of water shall be the basis, the
shall be prepared in the Bureau of Lands and shall be issued in the measure, and the limit of all rights thereto, and the patents herein
granted shall be subject to the right of the Government to make may request the assistance of the provincial treasurer of the
such rules and regulations for the use of water and the protection province in which the land lies or may appoint a committee for
of the water supply, and for other public purposes, as it may deem such purpose in the province or in the municipality in which the
best for the public good. Whenever, by priority of possession, land lies. In no case shall the appraisal or reappraisal be less than
rights to the use of water for mining, agricultural, manufacturing, the expense incurred or which may be incurred by the
or other purposes have vested and accrued, and the same are Government in connection with the application or concession, nor
recognized and acknowledged by the local customs, or by the laws shall any reappraisal be made with an increase of more than one
and decisions of the courts, the possessors and owners of such hundred per centum upon the appraisal or reappraisal next
vested rights shall be maintained and protected in the same, and preceding.
all patents granted under this Act shall be subject to any vested Sec.117. All sums due and payable to the Government under this
and accrued rights to ditches and reservoirs used in connection Act, except homestead fees, shall draw simple interest at the rate
with such water rights as may have been acquired in the manner of four per centum per annum from and after the date in which
above described prior to April eleven, eighteen hundred and the debtor shall become delinquent.
ninety-nine. Sec. 118. Except in favor of the Government or any of its
Sec. 114. There is hereby reserved from the operation of all branches, units, or institutions, lands acquired under free patent
patents, certificates, entries, and grants by the Government or homestead provisions shall not be subject to encumbrance or
authorized under this Act the right to use for the purposes of alienation from the date of the approval of the application and for
power any flow of water in any stream running through or by the a term of five years from and after the date of issuance of the
land granted, the convertible power from which at ordinary low patent or grant, nor shall they become liable to the satisfaction of
water exceeds fifty horse power. Where the convertible power in any debt contracted prior to the expiration of said period, but the
any stream running through or by land granted under the improvements or crops on the land may be mortgaged or pledged
authority of this Act thus exceeds fifty horsepower, and there is no to qualified persons, associations, or corporations.
means of using such power except by the occupation of a part of No alienation, transfer, or conveyance of any homestead after five
the land granted under authority of this Act, then so much land as years and before twenty-five years after issuance of title shall be
is reasonably necessary for the mill site or site for the power valid without the approval of the Secretary of Agriculture and
house, and for a suitable dam and site for massing the water, is Commerce, which approval shall not be denied except on
hereby excepted from such grants, not exceeding four hectares, constitutional and legal grounds.
and a right of way to the nearest public highway from the land Sec. 119. Every conveyance of land acquired under the free patent
thus excepted, and also a right of way for the construction and or homestead provisions, when proper, shall be subject to
maintenance of such flumes, aqueducts, wires, poles, or order repurchase by the applicant, his widow, or legal heirs, within a
conduits as may be needed in conveying the water to the point period of five years from the date of the conveyance.
where its fall will yield the greatest power, or the power from the Sec. 120. Conveyance and encumbrance made by persons
point of conversion to the point of use, is reserved as a servitude belonging to the so-called non-Christian Filipinos or national
or easement upon the land granted by authority of this Act: cultural minorities, when proper, shall be valid if the person
Provided, however, That when the Government or any making the conveyance or encumbrance is able to read and can
concessionaire of the Government shall take possession of the understand the language in which the instrument or conveyance
land under this section which a grantee under this Act shall have or encumbrances is written. Conveyances and encumbrances
paid for, supposing it to be subject to grant under this Act, said made by illiterate non-Christian or literate non-Christians where
grantee shall be entitled to indemnity from the Government or the instrument of conveyance or encumbrance is in a language
the concessionaire, as the case may be, in the amount, if any, paid not understood by the said literate non-Christians shall not be
by him to the Government for the land taken from him by virtue valid unless duly approved by the Chairman of the Commission on
of this section: And provided, further, That with respect to the National Integration.
flow of water, except for converting the same into power
exceeding fifty horse power, said grantee shall be entitled to the Sec. 121. Except with the consent of the grantee and the approval
same use of the water flowing through or along his land that other of the Secretary of Natural Resources, and solely for commercial,
private owners enjoy under the law, subject to the governmental industrial, educational, religious or charitable purposes or for a
regulation provided in the previous section. Water power right of way, no corporation, association, or partnership may
privileges in which the convertible power at ordinary low water acquire or have any right, title, interest, or property right
shall exceed fifty horse power shall be disposed of only upon whatsoever to any land granted under the free patent,
terms established by an Act of the Assembly concerning the use, homestead, or individual sale provisions of this Act or to any
lease or acquisition of such water privilege. permanent improvement on such land.
The provisions of Section 124 of this Act to the contrary
Sec. 115. All lands granted by virtue of this Act, including notwithstanding, any acquisition of such land, rights thereto or
homesteads upon which final proof has not been made or improvements thereon by a corporation, association, or
approved, shall, even though and while the title remains in the partnership prior to the promulgation of this Decree for the
State, be subject to the ordinary taxes, which shall be paid by the purposes herein stated is deemed valid and binding; Provided,
grantee or the applicant, beginning with the year next following That no final decision of reversion of such land to the State has
the one in which the homestead application has been filed, or the been rendered by a court; And Provided, further, That such
concession has been approved, or the contract has been signed, acquisition is approved by the Secretary of Natural Resources
as the case may be, on the basis of the value fixed in such filing, within six (6) months from the effectivity of this Decree.
approval or signing of the application, concession or contract.
Sec. 122. No land originally acquired in any manner under the
Sec. 116. The appraisal or reappraisal of the lands or provisions of this Act, nor any permanent improvement on such
improvements subject to concession or disposition under this Act land, shall encumbered, alienated, or transferred, except to
shall be made by the Director of Lands, with the approval of the persons, corporations, associations, or partnerships who may
Secretary of Agriculture and Commerce. The Director of Lands acquire lands of the public domain under this Act or to
corporations organized in the Philippines authorized therefor by Sec. 2. Declaration of State Policies.- The State shall recognize and
their charters. promote all the rights of Indigenous Cultural
Except in cases of hereditary succession, no land or any portion Communities/Indigenous Peoples (ICCs/IPs) hereunder
thereof originally acquired under the free patent, homestead, or enumerated within the framework of the Constitution:
individual sale provisions of this Act, or any permanent
improvement on such land, shall be transferred or assigned to any
a) The State shall recognize and promote the rights of ICCs/IPs
individual, nor shall such land or any permanent improvement
within the framework of national unity and development;
thereon be leased to such individual, when the area of said land,
added to that of his own, shall exceed one hundred and forty-four
hectares. Any transfer, assignment, or lease made in violation b)The State shall protect the rights of ICCs/IPs to their ancestral
hereof, shall be null and void. domains to ensure their economic, social and cultural well being
Sec. 123. No land originally acquired in any manner under the and shall recognize the applicability of customary laws governing
provisions of any previous Act, ordinance, royal order, royal property rights or relations in determining the ownership and
decree, or any other provision of law formerly in force in the extent of ancestral domain;
Philippines with regard to public lands, terrenos baldios y
realengos, or lands of any other denomination that were actually c) The State shall recognize, respect and protect the rights of
or presumptively of the public domain, or by royal grant or in any ICCs/IPs to preserve and develop their cultures, traditions and
other form, nor any permanent improvement on such land, shall institutions. It shall consider these rights in the formulation of
be encumbered, alienated, or conveyed, except to persons, national laws and policies;
corporations or associations who may acquire land of the public
domain under this Act or to corporate bodies organized in the
Philippines whose charters authorize them to do so: Provided, d) The State shall guarantee that members of the ICCs/IPs
however, That this prohibition shall not be applicable to the regardless of sex, shall equally enjoy the full measure of human
conveyance or acquisition by reason of hereditary succession duly rights and freedoms without distinctions or discriminations;
acknowledged and legalized by competent courts; Provided,
further, That in the event of the ownership of the lands and e) The State shall take measures, with the participation of the
improvements mentioned in this section and in the last preceding ICCs/IPs concerned, to protect their rights and guarantee respect
section being transferred by judicial decree to persons, for their cultural integrity, and to ensure that members of the
corporations or associations not legally capacitated to acquire the ICCs/IPs benefit on an equal footing from the rights and
same under the provisions of this Act, such persons, corporations, opportunities which national laws and regulations grant to other
or associations shall be obliged to alienate said lands or members of the population and
improvements to others so capacitated within the precise period
of five years; otherwise, such property shall revert to the
Government. f) The State recognizes its obligations to respond to the strong
Sec. 124. Any acquisition, conveyance, alienation, transfer, or expression of the ICCs/IPs for cultural integrity by assuring
other contract made or executed in violation of any of the maximum ICC/IP participation in the direction of education,
provisions of sections one hundred and eighteen, one hundred health, as well as other services of ICCs/IPs, in order to render
and twenty, one hundred and twenty-one, one hundred and such services more responsive to the needs and desires of these
twenty two, and one hundred and twenty-three of this Act shall communities.
be unlawful and null and void from its execution and shall produce
the effect of annulling and cancelling the grant, title, patent, or Towards these ends, the State shall institute and establish the
permit originally issued, recognized or confirmed, actually or necessary mechanisms to enforce and guarantee the realization of
presumptively, and cause the reversion of the property and its these rights, taking into consideration their customs, traditions,
improvements to the State. values, beliefs, their rights to their ancestral domains.
Sec. 125. The provisions of sections twenty-two, twenty-three,
thirty-three, one hundred and twenty-two, and one hundred and CHAPTER ll
twenty-three of this Act, and any other provision or provisions DEFINITION OF TERMS
restricting or tending to restrict the right of persons, corporations,
or associations to acquire, hold, lease, encumber, dispose of, or
Sec. 3. Definition of Terms.- For purposes of this Act, the following
alienate land in the Philippines, or permanent improvements
terms shall mean:
thereon, or any interest therein, shall not be applied in cases in
which the right to acquire, hold or dispose of such land,
permanent improvements thereon or interests therein in the a) Ancestral Domains - Subject to Section 56
Philippines is recognized by existing treaties in favor of citizens or hereof, refer to all areas generally belonging to
subjects of foreign nations and corporations or associations ICCs/IPs comprising lands,inland waters,
organized and constituted by the same, which right, in so far as it coastal areas, and natural resources therein,
exists under such treaties, shall continue and subsist in the held under a claim of ownership, occupied or
manner and to the extent stipulated in said treaties, and only possessed by ICCs/IPs, themselves or through
while these are in force, but not thereafter. their ancestors, communally or individually
Sec. 126. All public auctions provided for in the foregoing chapters since time immemorial, continuously to the
in the disposition of public lands shall be held, wherever possible, present except when interrupted by war, force
in the province where the land is located, or, in the office of the majeure or displacement by force, deceit,
Bureau of Lands in Manila stealth or as a consequence of government
projects or any other voluntary dealings
entered into by government and private
REPUBLIC ACT NO. 8371: "The Indigenous Peoples Rights Act individuals, corporations, and which are
necessary to ensure their economic, social and h) Indigenous Cultural
cultural welfare. It shall include ancestral land, Communities/Indigenous Peoples - refer to a
forests, pasture, residential, agricultural, and group of people or homogenous societies
other lands individually owned whether identified by self-ascription and ascription by
alienable and disposable or otherwise, hunting other, who have continuously lived as
grounds, burial grounds, worship areas, bodies organized community on communally
of water, mineral and other natural resources, bounded and defined territory, and who have,
and lands which may no longer be exclusively under claims of ownership since time
occupied by ICCs/IPs but from which their immemorial, occupied, possessed customs,
traditionally had access to for their subsistence tradition and other distinctive cultural traits, or
and traditional activities, particularly the home who have, through resistance to political,
ranges of ICCs/IPs who are still nomadic and/or social and cultural inroads of colonization,
shifting cultivators; non-indigenous religions and culture, became
historically differentiated from the majority of
Filipinos. ICCs/IPs shall likewise include
b) Ancestral Lands - Subject to Section 56
peoples who are regarded as indigenous on
hereof, refers to land occupied, possessed and
account of their descent from the populations
utilized by individuals, families and clans who
which inhabited the country, at the time of
are members of the ICCs/IPs since time
conquest or colonization, or at the time of
immemorial, by themselves or through their
inroads of non-indigenous religions and
predecessors-in-interest, under claims of
cultures, or the establishment of present state
individual or traditional group
boundaries, who retain some or all of their
ownership,continuously, to the present except
own social, economic, cultural and political
when interrupted by war, force majeure or
institutions, but who may have been displaced
displacement by force, deceit, stealth, or as a
from their traditional domains or who may
consequence of government projects and
have resettled outside their ancestral domains;
other voluntary dealings entered into by
government and private
individuals/corporations, including, but not i) Indigenous Political Structure - refer to
limited to, residential lots, rice terraces or organizational and cultural leadership systems,
paddies, private forests, swidden farms and institutions, relationships, patterns and
tree lots; processed for decision-making and
participation, identified by ICCs/IPs such as,
but not limited to, Council of Elders, Council of
c) Certificate of Ancestral Domain Title - refers
Timuays, Bodong Holder, or any other tribunal
to a title formally recognizing the rights of
or body of similar nature;
possession and ownership of ICCs/IPs over
their ancestral domains identified and
delineated in accordance with this law; j) Individual Claims - refer to claims on land
and rights thereon which have been devolved
to individuals, families and clans including, but
d) Certificate of Ancestral Lands Title - refers to
not limited to, residential lots, rice terraces or
a title formally recognizing the rights of
paddies and tree lots;
ICCs/IPs over their ancestral lands;

k) National Commission on Indigenous Peoples


e) Communal Claims - refer to claims on land,
(NCIP) - refers to the office created under this
resources and rights thereon, belonging to the
Act, which shall be under the Office of the
whole community within a defined territory
President, and which shall be the primary
government agency responsible for the
f) Customary Laws - refer to a body of written formulation and implementation of policies,
and/or unwritten rules, usages, customs and plans and programs to recognize, protect and
practices traditionally and continually promote the rights of ICCs/IPs;
recognized, accepted and observed by
respective ICCs/IPs;
l) Native Title - refers to pre-conquest rights to
lands and domains which, as far back as
g) Free and Prior Informed Consent - as used in memory reaches, have been held under a
this Act shall mean the consensus of all claim of private ownership by ICCs/IPs, have
members of the ICCs/IPs to; be determined in never been public lands and are thus
accordance with their respective customary indisputably presumed to have been held that
laws and practices, free from any external way since before the Spanish Conquest;
manipulation, interference and coercion, and
obtained after fully disclosing the intent and
m) Nongovernment Organization - refers to a
scope of the activity, in a language an process
private, nonprofit voluntary organization that
understandable to the community;
has been organized primarily for the delivery
of various services to the ICCs/IPs and has an
established track record for effectiveness and
acceptability in the community where it profits from allocation and utilization of the natural resources
serves; found therein; the right to negotiate the terms and conditions for
the exploration of natural resources in the areas for the purpose
of ensuring ecological, environmental protection and the
n) People's Organization - refers to a private,
conservation measures, pursuant to national and customary laws;
nonprofit voluntary organization of members
the right to an informed and intelligent participation in the
of an ICC/IP which is accepted as
formulation and implementation of any project, government or
representative of such ICCs/IPs;
private, that will affect or impact upon the ancestral domains and
to receive just and fair compensation for any damages which they
o) Sustainable Traditional Resource Rights sustain as a result of the project; and the right to effective
- refer to the rights of ICCs/IPs to sustainably measures by the government to prevent any interfere with,
use,manage, protect and conserve a) land, air, alienation and encroachment upon these rights;
water, and minerals; b) plants, animals and
other organisms; c) collecting, fishing and
c. Right to Stay in the Territories- The right to stay in the territory
hunting grounds; d) sacred sites; and e) other
and not be removed therefrom. No ICCs/IPs will be relocated
areas of economic, ceremonial and aesthetic
without their free and prior informed consent, nor through any
value in accordance with their indigenous
means other than eminent domain. Where relocation is
knowledge, beliefs, systems and practices; and
considered necessary as an exceptional measure, such relocation
shall take place only with the free and prior informed consent of
p) Time Immemorial - refers to a period of time when as far back the ICCs/IPs concerned and whenever possible, they shall be
as memory can go, certain ICCs/IPs are known to have occupied, guaranteed the right to return to their ancestral domains, as soon
possessed in the concept of owner, and utilized a defined territory as the grounds for relocation cease to exist. When such return is
devolved to them, by operation of customary law or inherited not possible, as determined by agreement or through appropriate
from their ancestors, in accordance with their customs and procedures, ICCs/IPs shall be provided in all possible cases with
traditions. lands of quality and legal status at least equal to that of the land
previously occupied by them, suitable to provide for their present
CHAPTER III needs and future development. Persons thus relocated shall
RIGHTS TO ANCESTRAL DOMAINS likewise be fully compensated for any resulting loss or injury;

Sec. 4. Concept of Ancestral Lands/Domains.- Ancestral d. Right in Case of Displacement.- In case displacement occurs as a
lands/domains shall include such concepts of territories which result of natural catastrophes, the State shall endeavor to resettle
cover not only the physical environment but the total the displaced ICCs/IPs in suitable areas where they can have
environment including the spiritual and cultural bonds to the area temporary life support system: Provided, That the displaced
which the ICCs/IPs possess, occupy and use and to which they ICCs/IPs shall have the right to return to their abandoned lands
have claims of ownership. until such time that the normalcy and safety of such lands shall be
determined: Provided, further, That should their ancestral domain
cease to exist and normalcy and safety of the previous settlements
Sec. 5. Indigenous Concept of Ownership.- Indigenous concept of are not possible, displaced ICCs/IPs shall enjoy security of tenure
ownership sustains the view that ancestral domains and all over lands to which they have been resettled: Provided,
resources found therein shall serve as the material bases of their furthermore, That basic services and livelihood shall be provided
cultural integrity. The indigenous concept of ownership generally to them to ensure that their needs are adequately addressed:
holds that ancestral domains are the ICC's/IP's private but
community property which belongs to all generations and
therefore cannot be sold, disposed or destroyed. It likewise covers e. Right to Regulate Entry of Migrants.- Right to regulate the entry
sustainable traditional resource rights. of migrant settlers and organizations into the domains;

Sec. 6. Composition of Ancestral Lands/Domains.- Ancestral lands f. Right to Safe and Clean Air and Water.- For this purpose, the
and domains shall consist of all areas generally belonging to ICCs/IPs shall have access to integrated systems for the
ICCs/IPs as referred under Sec. 3, items (a) and (b) of this Act. management of their inland waters and air space;

Sec. 7. Rights to Ancestral Domains.- The rights of ownership and g. Right to Claim Parts of Reservations.- The right to claim parts of
possession of ICCs/IPs t their ancestral domains shall be the ancestral domains which have been reserved for various
recognized and protected. Such rights shall include: purposes, except those reserved and intended for common and
public welfare and service; and

a. Rights of Ownership.- The right to claim ownership over lands,


bodies of water traditionally and actually occupied by ICCs/IPs, h. Right to Resolve Conflict.- Right to resolve land conflicts in
sacred places, traditional hunting and fishing grounds, and all accordance with customary laws of the area where the land is
improvements made by them at any time within the domains; located, and only in default thereof shall the complaints be
submitted to amicable settlement and to the Courts of Justice
whenever necessary.
b. Right to Develop Lands and Natural Resources.- Subject to
Section 56 hereof, right to develop, control and use lands and
territories traditionally occupied, owned, or used; to manage and Sec. 8. Rights to Ancestral Lands.- The right of ownership and
conserve natural resources within the territories and uphold the possession of the ICCs/IPs, to their ancestral lands shall be
responsibilities for future generations; to benefit and share the recognized and protected.
a. Right to transfer land/property.- Such right shall include the with a slope of eighteen percent (18%) or more, are hereby
right to transfer land or property rights to/among members of the classified as alienable and disposable agricultural lands.
same ICCs/IPs, subject to customary laws and traditions of the
community concerned.
The option granted under this Section shall be exercised within
twenty (20) years from the approval of this Act.
b. Right to Redemption.- In cases where it is shown that the
transfer of land/property rights by virtue of any agreement or
CHAPTER IV
devise, to a non-member of the concerned ICCs/IPs is tainted by
RIGHT TO SELF-GOVERNANCE AND EMPOWERMENT
the vitiated consent of the ICCs/IPs,or is transferred for an
unconscionable consideration or price, the transferor ICC/IP shall
have the right to redeem the same within a period not exceeding Sec. 13. Self-Governance.- The State recognizes the inherent right
fifteen (15) years from the date of transfer. of ICCs/IPs to self-governance and self-determination and respects
the integrity of their values, practices and institutions.
Consequently, the State shall guarantee the right of ICCs/IPs to
Sec. 9. Responsibilities of ICCs/IPs to their Ancestral Domains.-
freely pursue their economic, social and cultural development.
ICCs/IPs occupying a duly certified ancestral domain shall have the
following responsibilities:
a. Maintain Ecological Balance- To preserve, restore, and maintain Sec. 14. Support for Autonomous Regions.- The State shall
a balanced ecology in the ancestral domain by protecting the flora continue to strengthen and support the autonomous regions
and fauna, watershed areas, and other reserves; created under the Constitution as they may require or need. The
State shall likewise encourage other ICCs/IPs not included or
outside Muslim Mindanao and the Cordillera to use the form and
b. Restore Denuded Areas- To actively initiate, undertake and
content of their ways of life as may be compatible with the
participate in the reforestation of denuded areas and other
fundamental rights defined in the Constitution of the Republic of
development programs and projects subject to just and
the Philippines and other internationally recognized human rights.
reasonable remuneration; and

Sec. 15. Justice System, Conflict Resolution Institutions and Peace


c. Observe Laws- To observe and comply with the provisions of
Building Processes.- The ICCs/IPs shall have the right to use their
this Act and the rules and regulations for its effective
own commonly accepted justice systems, conflict resolution
implementation.
institutions, peace building processes or mechanisms and other
customary laws and practices within their respective communities
Sec. 10. Unauthorized and Unlawful Intrusion.- Unauthorized and and as may be compatible with the national legal system and with
unlawful intrusion upon, or use of any portion of the ancestral internationally recognized human rights.
domain, or any violation of the rights herein before enumerated,
shall be punishable under this law. Furthermore, the Government
Sec. 16. Right to Participate in Decision -Making.- ICCs/IPs have
shall take measures to prevent non-ICCs/IPs from taking
the right to participate fully, if they so choose, at all levels of
advantage of the ICCs/IPs customs or lack of understanding of
decision-making in matters which may affect their rights, lives and
laws to secure ownership, possession of land belonging to said
destinies through procedures determined by them as well as to
ICCs/IPs.
maintain and develop their own indigenous political structures.
Consequently, the State shall ensure that the ICCs/IPs shall be
Sec. 11. Recognition of Ancestral Domain Rights.- The rights of given mandatory representation in policy-making bodies and
ICCs/IPs to their ancestral domains by virtue of Native Title shall other local legislative councils.
be recognized and respected. Formal recognition, when solicited
by ICCs/IPs concerned, shall be embodied in a Certificate of
Sec. 17. Right to Determine and Decide Priorities for
Ancestral Domain Title (CADT), which shall recognize the title of
Development.- The ICCs/IPs shall have the right to determine and
the concerned ICCs/IPs over the territories identified and
decide their own priorities for development affecting their lives,
delineated.
beliefs, institutions, spiritual well-being, and the lands they own,
occupy or use. They shall participate in the
Sec. 12. Option to Secure Certificate of Title under Commonwealth formulation,implementation and evaluation of policies, plans and
Act 141, as amended, or the Land Registration Act 496.- Individual programs for national, regional and local development which may
members of cultural communities, with respect to individually- directly affect them.
owned ancestral lands who, by themselves or through their
predecessors-in -interest, have been in continuous possession and
Sec. 18. Tribal Barangays.- The ICCs/IPs living in contiguous areas
occupation of the same in the concept of owner since the
or communities where they form the predominant population but
immemorial or for a period of not less than thirty (30) years
which are located in municipalities, provinces or cities where they
immediately preceding the approval of this Act and uncontested
do not constitute the majority of the population, may form or
by the members of the same ICCs/IPs shall have the option to
constitute a separate barangay in accordance with the Local
secure title to their ancestral lands under the provisions of
Government Code on the creation of tribal barangays.
Commonwealth Act 141, as amended, or the Land Registration Act
496.
Sec. 19. Role of Peoples Organizations.- The State shall recognize
and respect the role of independent ICCs/IPs organizations to
For this purpose, said individually-owned ancestral lands, which
enable the ICCs/IPs to pursue and protect their legitimate and
are agricultural in character and actually used for agricultural,
collective interests and aspirations through peaceful and lawful
residential, pasture, and tree farming purposes, including those
means.
Sec. 20. Means for Development /Empowerment of ICCs/IPs.- The extent that they are not effectively protected by the laws
Government shall establish the means for the full applicable to workers in general.
development/empowerment of the ICCs/IPs own institutions and
initiatives and, where necessary, provide the resources needed
ICCs/IPs shall have the right to association and freedom for all
therefor.
trade union activities and the right to conclude collective
bargaining agreements with employers' conditions. They shall
CHAPTER V likewise have the right not to be subject to working conditions
SOCIAL JUSTICE AND HUMAN RIGHTS hazardous to their health, particularly through exposure to
pesticides and other toxic substances.
Sec. 21. Equal Protection and Non-discrimination of ICCs/IPs.-
Consistent with the equal protection clause of the Constitution of Sec. 24. Unlawful Acts Pertaining to Employment.- It shall be
the Republic of the Philippines, the Charter of the United Nations, unlawful for any person:
the Universal Declaration of Human Rights including the
Convention on the Elimination of Discrimination Against Women
a. To discriminate against any ICC/IP with respect to the terms and
and International Human Rights Law, the State shall, with due
conditions of employment on account of their descent. Equal
recognition of their distinct characteristics and identity, accord to
remuneration shall be paid to ICC/IP and non-ICC/IP for work of
the members of the ICCs/IPs the rights, protections and privileges
equal value; and
enjoyed by the rest of the citizenry. It shall extend to them the
same employment rights, opportunities, basic services,
educational and other rights and privileges available to every b. To deny any ICC/IP employee any right or benefit herein
member of the society. Accordingly, the State shall likewise ensure provided for or to discharge them for the purpose of preventing
that the employment of any form of force of coersion against them from enjoying any of the rights or benefits provided under
ICCs/IPs shall be dealt with by law. this Act.

The State shall ensure that the fundamental human rights and Sec. 25. Basic Services.- The ICC/IP have the right to special
freedoms as enshrined in the Constitution and relevant measures for the immediate, effective and continuing
international instruments are guaranteed also to indigenous improvement of their economic and social conditions, including in
women. Towards this end, no provision in this Act shall be the areas of employment, vocational training and retraining,
interpreted so as to result in the diminution of rights and housing, sanitation, health and social security. Particular attention
privileges already recognized and accorded to women under shall be paid to the rights and special needs of indigenous women,
existing laws of general application. elderly, youth, children and differently-abled persons. Accordingly,
the State shall guarantee the right of ICCs/IPs to government 's
basic services which shall include, but not limited to water and
Sec. 22. Rights during Armed Conflict.- ICCs/IPs have the right to
electrical facilities, education, health and infrastructure.
special protection and security in periods of armed conflict. The
State shall observe international standards, in particular, the
Fourth Geneva Convention of 1949, for the protection of civilian Sec. 26. Women.- ICC/IP women shall enjoy equal rights and
populations in circumstances of emergency and armed conflict, opportunities with men, as regards the social, economic, political
and shall not recruit members of the ICCs/IPs against their will and cultural spheres of life. The participation of indigenous
into armed forces, and in particular, for the use against other women in the decision-making process in all levels, as well as in
ICCs/IPs; not recruit children of ICCs/IPs into the armed forces the development of society, shall be given due respect and
under any circumstance; nor force indigenous individuals to recognition.
abandon their lands, territories and means of subsistence, or
relocate them in special centers for military purposes under any The State shall provide full access to education, maternal and child
discriminatory condition. care, health and nutrition, and housing services to indigenous
women. Vocational, technical, professional and other forms of
Sec. 23. Freedom from Discrimination and Right to Equal training shall be provided to enable these women to fully
Opportunity and Treatment.- It shall be the right of the ICCs/IPs to participate in all aspects of social life. As far as possible, the State
be free from any form of discrimination, with respect to shall ensure that indigenous women have access to all services in
recruitment and conditions of employment, such that they may their own languages.
enjoy equal opportunities as other occupationally-related
benefits, informed of their rights under existing labor legislation Sec. 27. Children and Youth.- The State shall recognize the vital
and of means available to them for redress, not subject to any role of the children and youth of ICCs/IPs in nation-building and
coercive recruitment systems, including bonded labor and other shall promote and protect their physical, moral, spiritual, moral,
forms of debt servitude; and equal treatment in employment for spiritual, intellectual and social well-being. Towards this end, the
men and women, including the protection from sexual State shall support all government programs intended for the
harassment. development and rearing of the children and youth of ICCs/IPs for
civic efficiency and establish such mechanisms as may be
Towards this end, the State shall within the framework of national necessary for the protection of the rights of the indigenous
laws and regulations, and in cooperation with the ICCs/IPs children and youth.
concerned, adopt special measures to ensure the effective
protection with regard to the recruitment and conditions of Sec. 28. Integrated System of Education.- The State shall, through
employment of persons belonging to these communities, to the the NCIP, provide a complete, adequate and integrated system of
education, relevant to the needs of the children and Young people without the free and prior informed consent of the community
of ICCs/IPs. concerned; and

b. Deface, remove or otherwise destroy artifacts which are of


great importance to the ICCs/IPs for the preservation of their
cultural heritage.

Sec. 34. Right to Indigenous Knowledge Systems and Practices and


CHAPTER VI
to Develop own Sciences and Technologies.- ICCs/IPs are entitled
CULTURAL INTEGRITY
to the recognition of the full ownership and control and protection
of their cultural and intellectual rights. They shall have the right to
Sec. 29. Protection of Indigenous Culture, traditions and special measures to control, develop and protect their sciences,
institutions.- The state shall respect, recognize and protect the technologies and cultural manifestations, including human and
right of the ICCs/IPs to preserve and protect their culture, other genetic resources, seeds, including derivatives of these
traditions and institutions. It shall consider these rights in the resources, traditional medicines and health practices, vital
formulation of national plans and policies. medicinal plants, animals and minerals, indigenous knowledge
systems and practices, knowledge of the properties of fauna and
Sec. 30. Educational Systems.- The State shall provide equal access flora, oral traditions, literature, designs, and visual and performing
to various cultural opportunities to the ICCs/IPs through the arts.
educational system, public or cultural entities, scholarships, grants
and other incentives without prejudice to their right to establish Sec. 35. Access to Biological and Genetic Resources.- Access to
and control their educational systems and institutions by providing biological and genetic resources and to indigenous knowledge
education in their own language, in a manner appropriate to their related to the conservation, utilization and enhancement of these
cultural methods of teaching and learning. Indigenous resources, shall be allowed within ancestral lands and domains of
children/youth shall have the right to all levels and forms of the ICCs/IPs only with a free and prior informed consent of such
education of the State. communities, obtained in accordance with customary laws of the
concerned community.
Sec. 31. Recognition of Cultural Diversity.- The State shall endeavor
to have the dignity and diversity of the cultures, traditions, Sec. 36. Sustainable Agro-Technical Development. - The State shall
histories and aspirations of the ICCs/IPs appropriately reflected in recognize the right of ICCs/IPs to a sustainable agro-technological
all forms of education, public information and cultural-educational development and shall formulate and implement programs of
exchange. Consequently, the State shall take effective measures, in action for its effective implementation. The State shall likewise
consultation with ICCs/IPs concerned, to eliminate prejudice and promote the bio-genetic and resource management systems
discrimination and to promote tolerance, understanding and good among the ICCs/IPs and shall encourage cooperation among
relations among ICCs/IPs and all segments of society. government agencies to ensure the successful sustainable
Furthermore, the Government shall take effective measures to development of ICCs/IPs.
ensure that State-owned media duly reflect indigenous cultural
diversity. The State shall likewise ensure the participation of
Sec. 37. Funds for Archeological and Historical Sites. - The ICCs/IPs
appropriate indigenous leaders in schools, communities and
shall have the right to receive from the national government all
international cooperative undertakings like festivals, conferences,
funds especially earmarked or allocated for the management and
seminars and workshops to promote and enhance their distinctive
preservation of their archeological and historical sites and artifacts
heritage and values.
with the financial and technical support of the national
government agencies.
Sec. 32. Community Intellectual Rights.- ICCs/IPs have the right to
practice and revitalize their own cultural traditions and customs.
CHAPTER VII
The State shall preserve, protect and develop the past, present
NATIONAL COMMISSION ON INDIGENOUS PEOPLES (NCIP)
and future manifestations of their cultures as well as the right to
the restitution of cultural, intellectual, religious, and spiritual
property taken without their free and prior informed consent or in Sec. 38. National Commission on Indigenous Cultural Communities
violation of their laws, traditions and customs. /Indigenous Peoples (NCCP).- to carry out the policies herein set
forth, there shall be created the National Commission on ICCs/IPs
(NCIP), which shall be the primary government agency responsible
Sec. 33. Rights to Religious, Cultural Sites and Ceremonies.-
for the formulation and implementation of policies, plans and
ICCs/IPs shall have the right to manifest, practice, develop teach
programs to promote and protect the rights and well-being of the
their spiritual and religious traditions, customs and ceremonies;
ICCs/IPs and the recognition of their ancestral domains as well as
the right to maintain, protect and have access to their religious
their rights thereto.
and cultural sites; the right to use and control of ceremonial
object; and the right to the repatriation of human remains.
Accordingly, the State shall take effective measures, in cooperation Sec. 39. Mandate.- The NCIP shall protect and promote the
with the burial sites, be preserved, respected and protected. To interest and well-being of the ICCs/IPs with due regard to their
achieve this purpose, it shall be unlawful to: beliefs, customs, traditions and institutions.

a. Explore, excavate or make diggings on archeological sites of the Sec. 40. Composition.- The NCIP shall be an independent agency
ICCs/IPs for the purpose of obtaining materials of cultural values under the Office of the President and shall be composed of seven
(7) Commissioners belonging to ICCs/IPs, one (1) of whom shall be f) Subject to existing laws, to enter into contracts, agreements, or
the Chairperson. The Commissioners shall be appointed by the arrangement, with government or private agencies or entities as
President of the Philippines from a list of recommendees may be necessary to attain the objectives of this Act, and subject
submitted by authentic ICCs/IPs: Provided, That the seven (7) to the approval of the President, to obtain loans from government
Commissioners shall be appointed specifically from each of the lending institutions and other lending institutions to finance its
following ethnographic areas: Region I and the Cordilleras; Region programs;
II; the rest of Luzon; Island Groups including Mindoro, Palawan,
Romblon, Panay and the rest of the Visayas; Northern and
g) To negotiate for funds and to accept grants, donations, gifts
Western Mindanao; Southern and Eastern Mindanao; and Central
and/or properties in whatever form and from whatever source,
Mindanao: Provided, That at least two (2) of the seven (7)
local and international, subject to the approval of the President of
Commissioners shall be women.
the Philippines, for the benefit of ICCs/IPs and administer the
same in accordance with the terms thereof; or in the absence of
Sec. 41. Qualifications, Tenure, Compensation.- The Chairperson any condition, in such manner consistent with the interest of
and the six (6) Commissioners must be natural born Filipino ICCs/IPs as well as existing laws;
citizens, bonafide members of ICCs/IPs as certified by his/her
tribe, experienced in ethnic affairs and who have worked for at
h) To coordinate development programs and projects for the
least ten (10) years with an ICC/IP community and/or any
advancement of the ICCs/IPs and to oversee the proper
government agency involved in ICC/IP, at least 35 years of age at
implementation thereof;
the time of appointment, and must be of proven honesty and
integrity: Provided, That at least two (2) of the seven (7)
Commissioners shall be the members of the Philippine Bar: i) To convene periodic conventions or assemblies of IPs to review,
Provided, further, That the members of the NCIP shall hold office assess as well as propose policies or plans;
for a period of three (3) years, and may be subject to re-
appointment for another term: Provided, furthermore, That no j) To advise the President of the Philippines on all matters relating
person shall serve for more than two (2) terms. Appointment to to the ICCs/IPs and to submit within sixty (60) days after the close
any vacancy shall only be for the unexpired term of the of each calendar year, a report of its operations and
predecessor and in no case shall a member be appointed or achievements;
designated in a temporary or acting capacity: Provided, finally,
That the Chairperson and the Commissioners shall be entitled to
compensation in accordance with the Salary Standardization Law. k) To submit to Congress appropriate legislative proposals
intended to carry out the policies under this Act;

Sec. 42. Removal from Office.- Any member of the NCIP may be
removed from office by the President, on his own initiative or l) To prepare and submit the appropriate budget to the Office of
upon recommendation by any indigenous community, before the the President;
expiration of his term for cause and after complying with due
process requirement of law. m) To issue appropriate certification as a pre-condition to the
grant of permit, lease, grant, or any other similar authority for the
Sec. 43. Appointment of Commissioners.- The President shall disposition, utilization, management and appropriation by any
appoint the seven (7) Commissioners of the NCIP within ninety private individual, corporate entity or any government agency,
(90) days from the effectivity of this Act. corporation or subdivision thereof on any part or portion of the
ancestral domain taking into consideration the consensus
approval of the ICCs/IPs concerned;
Sec. 44. Powers and Functions.- To accomplish its mandate, the
NCIP shall have the following powers, jurisdiction and function:
n) To decide all appeals from the decisions and acts of all the
various offices within the Commission:
a) To serve as the primary government agency through which
ICCs/IPs can seek government assistance and as the medium,
thorough which such assistance may be extended; o) To promulgate the necessary rules and regulations for the
implementation of this Act;

b) To review and assess the conditions of ICCs/IPs including


existing laws and policies pertinent thereto and to propose p) To exercise such other powers and functions as may be directed
relevant laws and policies to address their role in national by the President of the Republic of the Philippines; and
development;
q) To represent the Philippine ICCs/IPs in all international
c) To formulate and implement policies, plans, programs and conferences and conventions dealing with indigenous peoples and
projects for the economic, social and cultural development of the other related concerns.
ICCs/IPs and to monitor the implementation thereof;
Sec. 45. Accessibility and Transparency.- Subject to such
d) To request and engage the services and support of experts from limitations as may be provided by law or by rules and regulations
other agencies of government or employ private experts and promulgated pursuant thereto, all official records, documents and
consultants as may be required in the pursuit of its objectives; papers pertaining to official acts, transactions or decisions, as well
as research data used as basis for policy development of the
Commission shall be made accessible to the public.
e) To issue certificate of ancestral land/domain title;
Sec.46. Officers within the NCIP.- The NCIP shall have the following serve as the Office through which the NCIP shall coordinate with
offices which shall be responsible for the implementation of the pertinent government agencies specially charged with the
policies herein after provided: implementation of various basic socio-economic services, policies,
plans and programs affecting the ICCs/IPs to ensure that the same
are properly and directly enjoyed by them. It shall also be
a. Ancestral Domains Office - The Ancestral Domain Office shall be
responsible for such other functions as the NCIP may deem
responsible for the identification, delineation and recognition of
appropriate and necessary;
ancestral land/domains. It shall also be responsible for the
management of ancestral lands/domains in accordance with the
master plans as well as the implementation of the ancestral e. Office of Empowerment and Human Rights - The Office of
domain rights of the ICCs/IPs as provided in Chapter III of this Act. Empowerment and Human Rights shall ensure that indigenous
It shall also issue, upon the free and prior informed consent of the socio- political, cultural and economic rights are respected and
ICCs/IPs concerned, certification prior to the grant of any license, recognized. It shall ensure that capacity building mechanisms are
lease or permit for the exploitation of natural resources affecting instituted and ICCs/IPs are afforded every opportunity, if they so
the interests of ICCs/IPs in protecting the territorial integrity of all choose, to participate in all level decision-making. It shall likewise
ancestral domains. It shall likewise perform such other functions ensure that the basic human rights, and such other rights as the
as the Commission may deem appropriate and necessary; NCIP may determine, subject to existing laws, rules and
regulations are protected and promoted;
b. Office on Policy, Planning and Research - The Office on Policy,
Planning and Research shall be responsible for the formulation of f. Administrative Office - The Administrative Office shall provide
appropriate policies and programs for ICCs/IPs such as, but not the NCIP with economical, efficient and effective services
limited to, the development of a Five-Year Master Plan for the pertaining to personnel, finance, records, equipment, security,
ICCs/IPs. Such plan shall undergo a process such that every five supplies, and related services. It shall also administer the
years, the Commission shall endeavor to assess the plan and make Ancestral Domains Fund; and
ramifications in accordance with the changing situations. The
Office shall also undertake the documentation of customary law
g. Legal Affairs Office - There shall be a Legal Affairs Office which
and shall establish and maintain a Research Center that would
shall advice the NCIP on all legal matters concerning ICCs/IPs and
serve as a depository of ethnographic information for monitoring,
which shall be responsible for providing ICCs/IPs with legal
evaluation and policy formulation. It shall assist the legislative
assistance in litigation involving community interest. It shall
branch of the national government in the formulation of
conduct preliminary investigation on the basis of complaints filed
appropriate legislation benefiting ICCs/IPs.
by the ICCs/IPs against a natural or juridical person believed to
have violated ICCs/IPs rights. On the basis of its findings, it shall
c. Office of Education, Culture and Health - The Office on Culture, initiate the filing of appropriate legal or administrative action to
Education and Health shall be responsible for the effective the NCIP.
implementation of the education, cultural and related rights as
provided in this Act. It shall assist, promote and support
Sec. 47. Other Offices.- The NCIP shall have the power to create
community schools, both formal and non-formal, for the benefit
additional offices as it may deem necessary subject to existing
of the local indigenous community, especially in areas where
rules and regulations.
existing educational facilities are not accessible to members of the
indigenous group. It shall administer all scholarship programs and
other educational rights intended for ICC/IP beneficiaries in Sec. 48. Regional and Field Offices.- Existing regional and field
coordination with the Department of Education, Culture and offices shall remain to function under the strengthened
Sports and the Commission on Higher Education. It shall organizational structure of the NCIP. Other field office shall be
undertake, within the limits of available appropriation, a special created wherever appropriate and the staffing pattern thereof
program which includes language and vocational training, public shall be determined by the NCIP: Provided, That in provinces
health and family assistance program and related subjects. where there are ICCs/IPs but without field offices, the NCIP shall
establish field offices in said provinces.
It shall also identify ICCs/IPs with potential training in the health
profession and encourage and assist them to enroll in schools of Sec. 49. Office of the Executive Director.- The NCIP shall create the
medicine, nursing, physical therapy and other allied courses Office of the Executive Director which shall serve as its secretariat.
pertaining to the health profession. The office shall be headed by an Executive Director who shall be
appointed by the President of the Republic of the Philippines upon
the recommendation of the NCIP on a permanent basis. The
Towards this end, the NCIP shall deploy a representative in each of
staffing pattern of the office shall be determined by the NCIP
the said offices who shall personally perform the foregoing task
subject to existing rules and regulations.
and who shall receive complaints from the ICCs/IPs and compel
action from appropriate agency. It shall also monitor the activities
of the National Museum and other similar government agencies Sec. 50. Consultative Body.- A body consisting of the traditional
generally intended to manage and preserve historical and leaders, elders and representatives from the women and youth
archeological artifacts of the ICCs /IPs and shall be responsible for sectors of the different ICCs/IPs shall be constituted by the NCIP
the implementation of such other functions as the NCIP may from the time to time to advise it on matters relating to the
deem appropriate and necessary; problems, aspirations and interests of the ICCs/IPs.

d. Office on Socio-Economic Services and Special Concerns - The CHAPTER VIII


Office on Socio-Economic Services and Special Concerns shall DELINEATION AND RECOGNITION OF ANCESTRAL DOMAINS
Sec. 51. Delineation and Recognition of Ancestral Domains.- Self- 4. Historical accounts, including pacts and agreements concerning
delineation shall be guiding principle in the identification and boundaries entered into by the ICCs/IPs concerned with other
delineation of ancestral domains. As such, the ICCs/IPs concerned ICCs/IPs;
shall have a decisive role in all the activities pertinent thereto. The
Sworn Statement of the Elders as to the Scope of the territories
5. Survey plans and sketch maps;
and agreements/pacts made with neighboring ICCs/IPs, if any, will
be essential to the determination of these traditional territories.
The Government shall take the necessary steps to identify lands 6. Anthropological data;
which the ICCs/IPs concerned traditionally occupy and guarantee
effective protection of their rights of ownership and possession 7. Genealogical surveys;
thereto. Measures shall be taken in appropriate cases to safeguard
the rights of the ICCs/IPs concerned to land which may no longer
be exclusively occupied by them, but to which they have 8. Pictures and descriptive histories of traditional communal
traditionally had access for their subsistence and traditional forests and hunting grounds;
activities, particularly of ICCs/IPs who are still nomadic and/or
shifting cultivators. 9. Pictures and descriptive histories of traditional landmarks such
as mountains, rivers, creeks, ridges, hills, terraces and the like; and
Sec. 52. Delineation Process.- The identification and delineation of
ancestral domains shall be done in accordance with the following 10. Write-ups of names and places derived from the native dialect
procedures: of the community.

a. Ancestral Domains Delineated Prior to this Act - The provisions e. Preparation of Maps - On the basis of such investigation and the
hereunder shall not apply to ancestral domains/lands already findings of fact based thereon, the Ancestral Domains Office of
delineated according to DENR Administrative Order No. 2, series the NCIP shall prepare a perimeter map, complete with technical
of 1993, nor to ancestral lands and domains delineated under any descriptions, and a description of the natural features and
other community/ancestral domain program prior to the landmarks embraced therein;
enactment of his law. ICCs/IPs enactment of this law shall have the
right to apply for the issuance of a Certificate of Ancestral Domain
Title (CADT) over the area without going through the process f. Report of Investigation and Other Documents - A complete copy
outlined hereunder; of the preliminary census and a report of investigation, shall be
prepared by the Ancestral Domains Office of the NCIP;

b. Petition for Delineation - The process of delineating a specific


perimeter may be initiated by the NCIP with the consent of the g. Notice and Publication - A copy of each document, including a
ICC/IP concerned, or through a Petition for Delineation filed with translation in the native language of the ICCs/IPs concerned shall
the NCIP, by a majority of the members of the ICCs/IPs; be posted in a prominent place therein for at least fifteen (15)
days. A copy of the document shall also be posted at the local,
provincial and regional offices of the NCIP, and shall be published
c. Delineation Paper - The official delineation of ancestral domain in a newspaper of general circulation once a week for two (2)
boundaries including census of all community members therein, consecutive weeks to allow other claimants to file opposition
shall be immediately undertaken by the Ancestral Domains Office thereto within fifteen (15) days from the date of such publication:
upon filing of the application by the ICCs/IPs concerned. Provided, That in areas where no such newspaper exists,
Delineation will be done in coordination with the community broadcasting in a radio station will be a valid substitute: Provided,
concerned and shall at all times include genuine involvement and further, That mere posting shall be deemed sufficient if both
participation by the members of the communities concerned; newspaper and radio station are not available;

d. Proof required - Proof of Ancestral Domain Claims shall include h. Endorsement to NCIP - Within fifteen (15) days from
the testimony of elders or community under oath, and other publication, and of the inspection process, the Ancestral Domains
documents directly or indirectly attesting to the possession or Office shall prepare a report to the NCIP endorsing a favorable
occupation of the area since time immemorial by such ICCs/IPs in action upon a claim that is deemed to have sufficient proof.
the concept of owners which shall be any one (1) of the following However, if the proof is deemed insufficient, the Ancestral
authentic documents: Domains Office shall require the submission of additional
evidence: Provided, That the Ancestral Domains Office shall reject
any claim that is deemed patently false or fraudulent after
1. Written accounts of the ICCs/IPs customs and traditions; inspection and verification: Provided, further, That in case of
rejection, the Ancestral Domains Office shall give the applicant
due notice, copy furnished all concerned, containing the grounds
2. Written accounts of the ICCs/IPs political structure and for denial. The denial shall be appealable to the NCIP: Provided,
institution; furthermore, That in cases where there are conflicting claims, the
Ancestral Domains Office shall cause the contending parties to
3. Pictures showing long term occupation such as those of old meet and assist them in coming up with a preliminary resolution
improvements, burial grounds, sacred places and old villages; of the conflict, without prejudice to its full adjudication according
to the selection below.
i. Turnover of Areas Within Ancestral Domains Managed by Other exists, broadcasting in a radio station will be a valid substitute:
Government Agencies - The Chairperson of the NCIP shall certify Provided, further, That mere posting shall be deemed sufficient if
that the area covered is an ancestral domain. The secretaries of both newspapers and radio station are not available
the Department of Agrarian Reform, Department of Environment
and Natural Resources, Department of the Interior and Local
f. Fifteen (15) days after such publication, the Ancestral Domains
Government, and Department of Justice, the Commissioner of the
Office shall investigate and inspect each application, and if found
National Development Corporation, and any other government
to be meritorious, shall cause a parcellary survey of the area being
agency claiming jurisdiction over the area shall be notified thereof.
claimed. The Ancestral Domains office shall reject any claim that is
Such notification shall terminate any legal basis for the jurisdiction
deemed patently false or fraudulent after inspection and
previously claimed;
verification. In case of rejection, the Ancestral Domains office shall
give the applicant due notice, copy furnished all concerned,
j. Issuance of CADT - ICCs/IPs whose ancestral domains have been containing the grounds for denial. The denial shall be appealable
officially delineated and determined by the NCIP shall be issued a to the NCIP. In case of conflicting claims among individual or
CADT in the name of the community concerned, containing a list indigenous corporate claimants, the Ancestral domains Office shall
of all those identified in the census; and cause the contending parties to meet and assist them in coming
up with a preliminary resolution of the conflict, without prejudice
to its full adjudication according to Sec. 62 of this Act. In all
k. Registration of CADTs - The NCIP shall register issued certificates
proceedings for the identification or delineation of the ancestral
of ancestral domain titles and certificates of ancestral lands titles
domains as herein provided, the Director of Lands shall represent
before the Register of Deeds in the place where the property is
the interest of the Republic of the Philippines; and
situated.

g. The Ancestral Domains Office shall prepare and submit a report


Sec. 53. Identification, Delineation and Certification of Ancestral
on each and every application surveyed and delineated to the
Lands.-
NCIP, which shall, in turn, evaluate or corporate (family or clan)
claimant over ancestral lands.
a. The allocation of lands within any ancestral domain to individual
or indigenous corporate (family or clan) claimants shall be left to
Sec. 54. Fraudulent Claims.- The Ancestral Domains Office may,
the ICCs/IPs concerned to decide in accordance with customs and
upon written request from the ICCs/IPs, review existing claims
traditions;
which have been fraudulently acquired by any person or
community. Any claim found to be fraudulently acquired by, and
b. Individual and indigenous corporate claimants of ancestral issued to, any person or community may be cancelled by the NCIP
lands which are not within ancestral domains, may have their after due notice and hearing of all parties concerned.
claims officially established by filing applications for the
identification and delineation of their claims with the Ancestral
Sec. 55. Communal Rights.- Subject to Section 56 hereof, areas
Domains Office. An individual or recognized head of a family or
within the ancestral domains, whether delineated or not, shall be
clan may file such application in his behalf or in behalf of his
presumed to be communally held: Provide, That communal rights
family or clan, respectively;
under this Act shall not be construed as co-ownership as provided
in Republic Act. No. 386, otherwise known as the New Civil Code.
c. Proofs of such claims shall accompany the application form
which shall include the testimony under oath of elders of the
Sec. 56. Existing Property Rights Regimes.- Property rights within
community and other documents directly or indirectly attesting to
the ancestral domains already existing and/or vested upon
the possession or occupation of the areas since time immemorial
effectivity of this Act, shall be recognized and respected.
by the individual or corporate claimants in the concept of owners
which shall be any of the authentic documents enumerated under
Sec. 52 (d) of this act, including tax declarations and proofs of Sec. 57. Natural Resources within Ancestral Domains.- The ICCs/IPs
payment of taxes; shall have the priority rights in the harvesting, extraction,
development or exploitation of any natural resources within the
ancestral domains. A non-member of the ICCs/IPs concerned may
d. The Ancestral Domains Office may require from each ancestral
be allowed to take part in the development and utilization of the
claimant the submission of such other documents, Sworn
natural resources for a period of not exceeding twenty-five (25)
Statements and the like, which in its opinion, may shed light on
years renewable for not more than twenty-five (25) years:
the veracity of the contents of the application/claim;
Provided, That a formal and written agreement is entered into
with the ICCs/IPs concerned or that the community, pursuant to
e. Upon receipt of the applications for delineation and recognition its own decision making process, has agreed to allow such
of ancestral land claims, the Ancestral Domains Office shall cause operation: Provided, finally, That the all extractions shall be used
the publication of the application and a copy of each document to facilitate the development and improvement of the ancestral
submitted including a translation in the native language of the domains.
ICCs/IPs concerned in a prominent place therein for at least fifteen
(15) days. A copy of the document shall also be posted at the
Sec. 58. Environmental Consideration.- Ancestral domains or
local, provincial, and regional offices of the NCIP and shall be
portion thereof, which are found necessary for critical watersheds,
published in a newspaper of general circulation once a week for
mangroves wildlife sanctuaries, wilderness, protected areas, forest
two (2) consecutive weeks to allow other claimants to file
cover, or reforestation as determined by the appropriate agencies
opposition thereto within fifteen (15) days from the date of such
with the full participation of the ICCs/IPs concerned shall be
publication: Provided, That in areas where no such newspaper
maintained, managed and developed for such purposes. The
ICCs/IPs concerned shall be given the responsibility to maintain, implementation, enforcement and interpretation of this Act may
develop, protect and conserve such areas with the full and be brought for Petition for Review to the Court of Appeals within
effective assistance of the government agencies. Should the fifteen (15) days from receipt of a copy thereof.
ICCs/IPs decide to transfer the responsibility over the areas, said
decision must be made in writing. The consent of the ICCs/IPs
Sec. 63. Applicable Laws.- Customary laws, traditions and practices
should be arrived at in accordance with its customary laws
of the ICCs/IPs of the land where the conflict arises shall be
without prejudice to the basic requirement of the existing laws on
applied first with respect to property rights, claims and
free and prior informed consent: Provided, That the transfer shall
ownerships, hereditary succession and settlement of land
be temporary and will ultimately revert to the ICCs/IPs in
disputes. Any doubt or ambiguity in the application of laws shall
accordance with a program for technology transfer: Provided,
be resolved in favor of the ICCs/IPs.
further, That no ICCs/IPs shall be displaced or relocated for the
purpose enumerated under this section without the written
consent of the specific persons authorized to give consent. Sec. 64. Remedial Measures.- Expropriation may be resorted to in
the resolution of conflicts of interest following the principle of the
"common good". The NCIP shall take appropriate legal action for
Sec. 59. Certification Precondition.- all department and other
the cancellation of officially documented titles which were
governmental agencies shall henceforth be strictly enjoined from
acquired illegally: Provided, That such procedure shall ensure that
issuing, renewing, or granting any concession, license or lease, or
the rights of possessors in good faith shall be respected: Provided,
entering into any production-sharing agreement, without prior
further, That the action for cancellation shall be initiated within
certification from the NCIP that the area affected does not overlap
two (2) years from the effectivity of this Act: Provided, finally, That
with any ancestral domain. Such certificate shall only be issued
the action for reconveyance shall be a period of ten (10) years in
after a field-based investigation is conducted by the Ancestral
accordance with existing laws.
Domain Office of the area concerned: Provided, That no certificate
shall be issued by the NCIP without the free and prior informed
and written consent of the ICCs/IPs concerned: Provided, further, CHAPTER IX
That no department, government agency or government-owned JURISDICTION AND PROCEDURES FOR ENFORCEMENT OF RIGHTS
or -controlled corporation may issue new concession, license,
lease, or production sharing agreement while there is pending Sec. 65. Primary of Customary Laws and Practices.- When disputes
application CADT: Provided, finally, That the ICCs/IPs shall have the involve ICCs/IPs, customary laws and practices shall be used to
right to stop or suspend, in accordance with this Act, any project resolve the dispute.
that has not satisfied the requirement of this consultation process.
Sec. 66. Jurisdiction of the NCIP.- The NCIP, through its regional
Sec.60. Exemption from Taxes.- All lands certified to be ancestral offices, shall have jurisdiction over all claims and disputes
domains shall be exempt from real property taxes, specially levies, involving rights of ICCs/IPs; Provided, however, That no such
and other forms of exaction except such portion of the ancestral dispute shall be brought to the NCIP unless the parties have
domains as are actually used for large-scale agriculture, exhausted all remedies provided under their customary laws. For
commercial forest plantation and residential purposes and upon this purpose, a certification shall be issued by the Council of
titling by other by private person: Provided, that all exactions shall Elders/Leaders who participated in the attempt to settle the
be used to facilitate the development and improvement of the dispute that the same has not been resolved, which certification
ancestral domains. shall be a condition precedent to the filing of a petition with the
NCIP.
Sec. 61. Temporary Requisition Powers.- Prior to the establishment
of an institutional surveying capacity whereby it can effectively Sec. 67. Appeals to the Court of Appeals.- Decisions of the NCIP
fulfill its mandate, but in no case beyond three (3) years after its shall be appealable to the Court of Appeals by way of a petition
creation, the NCIP is hereby authorized to request the Department for review.
of Environment and Natural Resources (DENR) survey teams as
well as other equally capable private survey teams, through a Sec. 68. Execution of Decisions, Awards, Orders.- Upon expiration
Memorandum of Agreement (MOA), to delineate ancestral of the period here provided and no appeal is perfected by any of
domain perimeters. The DENR Secretary shall accommodate any the contending parties, the Hearing Officer of the NCIP, on its own
such request within one (1) month of its issuance: Provided, That initiative or upon motion by the prevailing party, shall issue a writ
the Memorandum of Agreement shall stipulate, among others, a of execution requiring the sheriff or the proper officer to execute
provision for technology transfer to the NCIP. final decisions, orders or awards of the Regional Hearing Officer of
the NCIP.
Sec. 62. Resolution of Conflicts.- In cases of conflicting interest,
where there are adverse claims within the ancestral domains as Sec. 69. Quasi-Judicial Powers of the NCIP.- The NCIP shall have the
delineated in the survey plan, and which cannot be resolved, the power and authority:
NCIP shall hear and decide, after notice to the proper parties, the
disputes arising from the delineation of such ancestral domains:
Provided, That if the dispute is between and/or among ICCs/IPs a. To promulgate rules and regulations governing the hearing and
regarding the traditional boundaries of their respective ancestral disposition of cases filed before it as well as those pertaining to its
domains, customary process shall be followed. The NCIP shall internal functions and such rules and regulations as may be
promulgate the necessary rules and regulations to carry out its necessary to carry out the purposes of this Act;
adjudicatory functions: Provided, further, That in any decision,
order, award or ruling of the NCIP on any ancestral domain b. To administer oaths, summon the parties to a controversy, issue
dispute or on any matter pertaining to the application, subpoenas requiring the attendance and testimony of witnesses
or the production of such books, papers, contracts, records, discretion of the court. In addition, he shall be obliged to pay to
agreements and other document of similar nature as may be the ICCs/IPs concerned whatever damage may have been suffered
material to a just determination of the matter under investigation by the latter as a consequence of the unlawful act.
or hearing conducted in pursuance of this Act;
Sec. 73. Persons Subject to Punishment.- If the offender is a
c. To hold any person in contempt, directly or indirectly, and juridical person, all officers such as, but not limited to, its
impose appropriate penalties therefor; and president, manager, or head of office responsible for their
unlawful act shall be criminally liable therefor, in addition to the
cancellation of certificates of their registration and/or license:
d. To enjoin any or all acts involving or arising from any case
Provided, That if the offender is a public official, the penalty shall
pending therefore it which, if not restrained forthwith, may cause
include perpetual disqualification to hold public office.
grave or irreparable damage to any of the parties to the case or
seriously affect social or economic activity.

Sec. 70. No restraining Order or Preliminary Injunction - No


CHAPTER XII
inferior court of the Philippines shall have the jurisdiction to issue
MERGER OF THE OFFICE FOR NORTHERN CULTURAL
any restraining order or writ of preliminary injunction against the
COMMUNITIES (ONCC) AND THE OFFICE FOR SOUTHERN
NCIP or any of its duly authorized or designated offices in any
CULTURAL COMMUNITIES (OSCC)
case, dispute or controversy to, or interpretation of this Act and
other pertinent laws relating to ICCs/IPs and ancestral domains.
Sec. 74. Merger of ONCC/OSCC.- The Office for Northern Cultural
Communities (ONCC) and the Office of Southern Cultural
CHAPTER IX Communities (OSCC), created under Executive Order Nos. 122-B
ANCESTRAL DOMAINS FUND and 122-C respectively, are hereby merged as organic offices of
the NCIP and shall continue to function under a revitalized and
Sec. 71. Ancestral Domains Fund.- There is hereby created a strengthened structures to achieve the objectives of the NCIP:
special fund, to be known as the Ancestral Domains Fund, an Provided, That the positions of Regional Directors and below, are
initial amount of the One Hundred thirty million hereby phased-out upon the effectivity of this Act: Provided,
pesos(P130,000,000) to cover compensation for expropriated further, That officials and employees of the phased-out offices
lands, delineation and development of ancestral domains. An who may be qualified may apply for reappointment with the NCIP
amount of Fifty million pesos (P50,000,000) shall be sourced from and may be given prior rights in the filing up of the newly created
the gross income of the Philippine Charity Sweepstakes Office positions of NCIP, subject to the qualifications set by the
(PCSO) from its lotto operation, Ten millions pesos (P10,000,000) Placement Committee: Provided, furthermore, That in the case
from the gross receipts of the travel tax of the preceding year, the where an indigenous person and a non-indigenous person with
fund of the Social Reform Council intended for survey and similar qualifications apply for the same position, priority shall be
delineation of ancestral lands/domains, and such other source as given to the former. Officers and employees who are to be
the government may be deem appropriate. Thereafter such phased-out as a result of the merger of their offices shall be
amount shall be included in the annual General Appropriations entitled to gratuity a rate equivalent to one and a half (1 1/2)
Act. Foreign as well as local funds which are made available for the months salary for every year of continuous and satisfactory
ICCs/IPs through the government of the Philippines shall be service rendered or the equivalent nearest fraction thereof
coursed through the NCIP. The NCIP may also solicit and receive favorable to them on the basis of the highest salary received. If
donations, endowments shall be exempted from income or gift they are already entitled to retirement benefits or the gratuity
taxes and all other taxes, charges or fees imposed by the herein provided. Officers and employees who may be reinstated
government or any political subdivision or instrumentality shall refund such retirement benefits or gratuity received:
thereof. Provided, finally That absorbed personnel must still meet the
qualifications and standards set by the Civil Service and the
CHAPTER XI Placement Committee herein created.
PENALTIES
Sec. 75. Transition Period.- The ONCC/OSCC shall have a period of
Sec. 72. Punishable Acts and Applicable Penalties.- Any person six (6) months from the effectivity of this Act within which to wind
who commits violation of any of the provisions of this Act, such as, up its affairs and to conduct audit of its finances.
but not limited to, authorized and/or unlawful intrusion upon any
ancestral lands or domains as stated in Sec. 10, Chapter III, or shall
Sec. 76. Transfer of Assets/Properties.- All real and personal
commit any of the prohibited acts mentioned in Sections 21 and
properties which are vested in, or belonging to, the merged offices
24, Chapter V, Section 33, Chapter VI hereof, shall be punished in
as aforestated shall be transferred to the NCIP without further
accordance with the customary laws of the ICCs/IPs concerned:
need of conveyance, transfer or assignment and shall be held for
Provided, That no such penalty shall be cruel, degrading or
the same purpose as they were held by the former offices:
inhuman punishment: Provided, further, That neither shall the
Provided, That all contracts, records and documents shall be
death penalty or excessive fines be imposed. This provision shall
transferred to the NCIP. All agreements and contracts entered into
be without prejudice to the right of any ICCs/IPs to avail of the
by the merged offices shall remain in full force and effect unless
protection of existing laws. In which case, any person who violates
otherwise terminated, modified or amended by the NCIP.
any provision of this Act shall, upon conviction, be punished by
imprisonment of not less than nine (9) months but not more than
twelve (12) years or a fine not less than One hundred thousand Sec. 77. Placement Committee.- Subject to rules on government
pesos (P100,000) nor more than Five hundred thousand pesos reorganization, a Placement Committee shall be created by the
(P500,000) or both such fine and imprisonment upon the NCIP, in coordination with the Civil Service Commission, which
shall assist in the judicious selection and placement of personnel agreements, the State shall promote the development and use of
in order that the best qualified and most deserving persons shall local scientific and technical resources.
be appointed in the reorganized agency. The placement
Committee shall be composed of seven (7) commissioners and an
The President shall notify the Congress of every contract entered
ICCs/IPs representative from each of the first and second level
into in accordance with this provision, within thirty days from its
employees association in the Offices for Northern and Southern
execution.
Cultural Communities (ONCC/OSCC), nongovernment
organizations (NGOs) who have served the community for at least
five (5) years and peoples organizations (POs) with at least five (5) Section 3. Lands of the public domain are classified into
years of existence. They shall be guided by the criteria of retention agricultural, forest or timber, mineral lands and national parks.
and appointment to be prepared by the consultative body and by Agricultural lands of the public domain may be further classified
the pertinent provisions of the civil service law. by law according to the uses to which they may be devoted.
Alienable lands of the public domain shall be limited to
agricultural lands. Private corporations or associations may not
hold such alienable lands of the public domain except by lease, for
Art I, Sec 21, 22 of the Constitution
a period not exceeding twenty-five years, renewable for not more
than twenty-five years, and not to exceed one thousand hectares
Section 21. The State shall promote comprehensive rural in area. Citizens of the Philippines may lease not more than five
development and agrarian reform. hundred hectares, or acquire not more than twelve hectares
thereof, by purchase, homestead, or grant.
Section 22. The State recognizes and promotes the rights of
indigenous cultural communities within the framework of national Taking into account the requirements of conservation, ecology,
unity and development. and development, and subject to the requirements of agrarian
reform, the Congress shall determine, by law, the size of lands of
the public domain which may be acquired, developed, held, or
Art XII, Secs. 2, 3, 4, 5, 7 and 8 of the Constitution
leased and the conditions therefor.

ARTICLE XII: NATIONAL ECONOMY AND PATRIMONY Section 4. The Congress shall, as soon as possible, determine, by
law, the specific limits of forest lands and national parks, marking
clearly their boundaries on the ground. Thereafter, such forest
Section 2. All lands of the public domain, waters, minerals, coal, lands and national parks shall be conserved and may not be
petroleum, and other mineral oils, all forces of potential energy, increased nor diminished, except by law. The Congress shall
fisheries, forests or timber, wildlife, flora and fauna, and other provide for such period as it may determine, measures to prohibit
natural resources are owned by the State. With the exception of logging in endangered forests and watershed areas.
agricultural lands, all other natural resources shall not be
alienated. The exploration, development, and utilization of natural
resources shall be under the full control and supervision of the Section 5. The State, subject to the provisions of this Constitution
State. The State may directly undertake such activities, or it may and national development policies and programs, shall protect the
enter into co-production, joint venture, or production-sharing rights of indigenous cultural communities to their ancestral lands
agreements with Filipino citizens, or corporations or associations to ensure their economic, social, and cultural well-being.
at least sixty per centum of whose capital is owned by such
citizens. Such agreements may be for a period not exceeding The Congress may provide for the applicability of customary laws
twenty-five years, renewable for not more than twenty-five years, governing property rights or relations in determining the
and under such terms and conditions as may be provided by law. ownership and extent of ancestral domain.
In cases of water rights for irrigation, water supply fisheries, or
industrial uses other than the development of water power,
beneficial use may be the measure and limit of the grant.
Section 7. Save in cases of hereditary succession, no private lands
shall be transferred or conveyed except to individuals,
The State shall protect the nation's marine wealth in its corporations, or associations qualified to acquire or hold lands of
archipelagic waters, territorial sea, and exclusive economic zone, the public domain.
and reserve its use and enjoyment exclusively to Filipino citizens.

Section 8. Notwithstanding the provisions of Section 7 of this


The Congress may, by law, allow small-scale utilization of natural Article, a natural-born citizen of the Philippines who has lost his
resources by Filipino citizens, as well as cooperative fish farming, Philippine citizenship may be a transferee of private lands, subject
with priority to subsistence fishermen and fish- workers in rivers, to limitations provided by law.
lakes, bays, and lagoons.

The President may enter into agreements with foreign-owned


corporations involving either technical or financial assistance for
large-scale exploration, development, and utilization of minerals,
petroleum, and other mineral oils according to the general terms
and conditions provided by law, based on real contributions to the
economic growth and general welfare of the country. In such
evaluation of the environmental quality and carrying capacity of
an area.

(m) "Environmental Compliance Certificate (ECC)" refers to the


document issued by the government agency concerned certifying
Republic Act No. 7942: Philippine Mining Act of 1995
that the project under consideration will not bring about an
unacceptable environmental impact and that the proponent has
Sec. 2 Declaration of Policy. All mineral resources in public and complied with the requirements of the environmental impact
private lands within the territory and exclusive economic zone of statement system.
the Republic of the Philippines are owned by the State. It shall be
the responsibility of the State to promote their rational (n) "Environmental Impact Statement (EIS)" is the document
exploration, development, utilization and conservation through which aims to identify, predict, interpret, and communicate
the combined efforts of government and the private sector in information regarding changes in environmental quality associated
order to enhance national growth in a way that effectively with a proposed project and which examines the range of
safeguards the environment and protect the rights of affected alternatives for the objectives of the proposal and their impact on
communities. the environment.

Sec. 3 Definition of Terms. As used in and for purposes of this Act, (o) "Exclusive economic zone" means the water, sea bottom and
the following terms, whether in singular or plural, shall mean: subsurface measured from the baseline of the Philippine
archipelago up to two hundred nautical miles (200 n.m.) offshore.
(a) "Ancestral lands" refers to all lands, exclusively and actually
possessed, occupied, or utilized by indigenous cultural (p) "Existing mining/quarrying right" means a valid and subsisting
communities by themselves or through their ancestors in mining claim or permit or quarry permit or any mining lease
accordance with their customs and traditions since time contract or agreement covering a mineralized area granted/issued
immemorial, and as may be defined and delineated by law. under pertinent mining laws.

(b) "Block" or "meridional block" means an area bounded by one- (q) "Exploration" means the searching or prospecting for mineral
half (1/2) minute of latitude and one-half (1/2) minute of resources by geological, geochemical or geophysical surveys,
longitude, containing approximately eighty-one hectares (81 has.). remote sensing, test pitting, trenching, drilling, shaft sinking,
tunneling or any other means for the purpose of determining the
(c) "Bureau" means the Mines and Geosciences Bureau under the existence, extent, quantity and quality thereof and the feasibility
Department of Environment and Natural Resources. of mining them for profit.

(d) "Carrying capacity" refers to the capacity of natural and human (r) "Financial or technical assistance agreement" means a contract
environments to accommodate and absorb change without involving financial or technical assistance for large-scale
experiencing conditions of instability and attendant degradation. exploration, development, and utilization of mineral resources.

(e) "Contiguous zone" refers to water, sea bottom and substratum (s) "Force majeure" means acts or circumstances beyond the
measured twenty-four nautical miles (24 n.m.) seaward from base reasonable control of contractor including, but not limited to, war,
line of the Philippine archipelago. rebellion, insurrection, riots, civil disturbance, blockade, sabotage,
embargo, strike, lockout, any dispute with surface owners and
(f) "Contract area" means land or body of water delineated for other labor disputes, epidemic, earthquake, storm, flood or other
purposes of exploration, development, or utilization of the adverse weather conditions, explosion, fire, adverse action by
minerals found therein. government or by any instrumentality or subdivision thereof, act
of God or any public enemy and any cause that herein describe
(g) "Contractor" means a qualified person acting alone or in over which the affected party has no reasonable control.
consortium who is a party to a mineral agreement or to a financial
or technical assistance agreement. (t) "Foreign-owned corporation" means any corporation,
partnership, association, or cooperative duly registered in
(h) "Co-production agreement (CA)" means an agreement entered accordance with law in which less than fifty per centum (50%) of
into between the Government and one or more contractors in the capital is owned by Filipino citizens.
accordance with Section 26(b) hereof.
(u) "Government" means the government of the Republic of the
(i) "Department" means the Department of Environment and Philippines.
Natural Resources.
(v) "Gross output" means the actual market value of minerals or
(j) "Development" means the work undertaken to explore and mineral products from its mining area as defined in the National
prepare an ore body or a mineral deposit for mining, including the Internal Revenue Code.
construction of necessary infrastructure and related facilities.
(w) "Indigenous cultural community" means a group or tribe of
(k) "Director" means the Director of the Mines and Geosciences indigenous Filipinos who have continuously lived as communities
Bureau. on communally-bounded and defined land since time immemorial
and have succeeded in preserving, maintaining, and sharing
(l) "Ecological profile or eco-profile" refers to geographic-based common bonds of languages, customs, traditions, and other
instruments for planners and decision-makers which presents an distinctive cultural traits, and as may be defined and delineated by
law.
chemicals, liquids or other harmful by products and gases emitted
(x) "Joint Venture Agreement (JVA)" means an agreement entered from any facility utilized in mining operations for their disposal.
into between the Government and one or more contractors in
accordance with Section 26(c) hereof. (an) "President" means the President of the Republic of the
Philippines.
(y) "Mineral processing" means the milling, benefaction or
upgrading of ores or minerals and rocks or by similar means to (ao) "Private land" refers to any land belonging to any private
convert the same into marketable products. person which includes alienable and disposable land being
claimed by a holder, claimant, or occupant who has already
(z) "Mine wastes and tailings" shall mean soil and rock materials acquired a vested right thereto under the law, although the
from surface or underground mining and milling operations with corresponding certificate or evidence of title or patent has not
no economic value to the generator of the same. been actually issued.

(aa) "Minerals" refers to all naturally occurring inorganic (ap) "Public land" refers to lands of the public domain which have
substance in solid, gas, liquid, or any intermediate state excluding been classified as agricultural lands and subject to management
energy materials such as coal, petroleum, natural gas, radioactive and disposition or concession under existing laws.
materials, and geothermal energy.
(aq) "Qualified person" means any citizen of the Philippines with
(ab) "Mineral agreement" means a contract between the capacity to contract, or a corporation, partnership, association, or
government and a contractor, involving mineral production- cooperative organized or authorized for the purpose of engaging
sharing agreement, co-production agreement, or joint-venture in mining, with technical and financial capability to undertake
agreement. mineral resources development and duly registered in accordance
with law at least sixty per cent (60%) of the capital of which is
(ac) "Mineral land" means any area where mineral resources are owned by citizens of the Philippines: Provided, That a legally
found. organized foreign-owned corporation shall be deemed a qualified
person for purposes of granting an exploration permit, financial or
(ad) "Mineral resource" means any concentration of technical assistance agreement or mineral processing permit.
minerals/rocks with potential economic value.
(ar) "Quarrying" means the process of extracting, removing and
(ae) "Mining area" means a portion of the contract area identified disposing quarry resources found on or underneath the surface of
by the contractor for purposes of development, mining, private or public land.
utilization, and sites for support facilities or in the immediate
vicinity of the mining operations. (as) "Quarry permit" means a document granted to a qualified
person for the extraction and utilization of quarry resources on
(af) "Mining operation" means mining activities involving public or private lands.
exploration, feasibility, development, utilization, and processing.
(at) "Quarry resources" refers to any common rock or other
(ag) "Nongovernmental Organization (NGO)" includes nonstock, mineral substances as the Director of Mines and Geosciences
nonprofit organizations involved in activities dealing with resource Bureau may declare to be quarry resources such as, but not
and environmental conservation, management and protection. limited to, andesite, basalt, conglomerate, coral sand,
diatomaceous earth, diorite, decorative stones, gabbro, granite,
(ah) "Net assets" refers to the property, plant and equipment as limestone, marble, marl, red burning clays for potteries and bricks,
reflected in the audited financial statement of the contractor net rhyolite, rock phosphate, sandstone, serpentine, shale, tuff,
of depreciation, as computed for tax purposes, excluding appraisal volcanic cinders, and volcanic glass: Provided, That such quarry
increase and construction in progress. resources do not contain metals or metallic constituents and/or
other valuable minerals in economically workable quantities:
(ai) "Offshore" means the water, sea bottom, and subsurface from Provided, further, That non-metallic minerals such as kaolin,
the shore or coastline reckoned from the mean low tide level up feldspar, bullquartz, quartz or silica, sand and pebbles, bentonite,
to the two hundred nautical miles (200 n.m.) exclusive economic talc, asbestos, barite, gypsum, bauxite, magnesite, dolomite, mica,
zone including the archipelagic sea and contiguous zone. precious and semi-precious stones, and other non-metallic
minerals that may later be discovered and which the Director
(aj) "Onshore" means the landward side from the mean tide declares the same to be of economically workable quantities, shall
elevation, including submerged lands in lakes, rivers and creeks. not be classified under the category of quarry resources.

(ak) "Ore" means a naturally occurring substance or material from (au) "Region director" means the regional director of any mines
which a mineral or element can be mined and/or processed for regional office under the Department of Environment and Natural
profit. Resources.

(al) "Permittee" means the holder of an exploration permit. (av) "Regional office" means any of the mines regional offices of
the Department of Environment and Natural Resources.
(am) "Pollution control and infrastructure devices" refers to
infrastructure, machinery, equipment and/or improvements used (aw) "Secretary" means the Secretary of the Department of
for impounding, treating or neutralizing, precipitating, filtering, Environment and Natural Resources.
conveying and cleansing mine industrial waste and tailings as well
as eliminating or reducing hazardous effects of solid particles, (ax) "Special allowance" refers to payment to the claim-owners or
surface right-owners particularly during the transition period from
Presidential Decree No. 463 and Executive Order No. 279, series of
1987. Sec. 8 Authority of the Department. The Department shall be the
primary government agency responsible for the conservation,
(ay) "State" means the Republic of the Philippines. management, development, and proper use of the State's mineral
resources including those in reservations, watershed areas, and
(az) "Utilization" means the extraction or disposition of minerals. lands of the public domain. The Secretary shall have the authority
to enter into mineral agreements on behalf of the Government
CHAPTER II upon the recommendation of the Director, promulgate such rules
GOVERNMENT MANAGEMENT and regulations as may be necessary to implement the intent and
provisions of this Act.
Sec. 4 Ownership of Mineral Resources. - Mineral resources are
owned by the State and the exploration, development, utilization, Sec. 9 Authority of the Bureau. The Bureau shall have direct
and processing thereof shall be under its full control and charge in the administration and disposition of mineral lands and
supervision. The State may directly undertake such activities or it mineral resources and shall undertake geological, mining,
may enter into mineral agreements with contractors. metallurgical, chemical, and other researches as well as geological
and mineral exploration surveys. The Director shall recommend to
The State shall recognize and protect the rights of the indigenous the Secretary the granting of mineral agreements to duly qualified
cultural communities to their ancestral lands as provided for by persons and shall monitor the compliance by the contractor of the
the Constitution. terms and conditions of the mineral agreements. The Bureau may
Sec. 5 Mineral Reservations. When the national interest so confiscate surety, performance and guaranty bonds posted
requires, such as when there is a need to preserve strategic raw through an order to be promulgated by the Director. The Director
materials for industries critical to national development, or certain may deputize, when necessary, any member or unit of the
minerals for scientific, cultural or ecological value, the President Philippine National Police, barangay, duly registered
may establish mineral reservations upon the recommendation of nongovernmental organization (NGO) or any qualified person to
the Director through the Secretary. Mining operations in existing police all mining activities.
mineral reservations and such other reservations as may
thereafter be established, shall be undertaken by the Department Sec. 10 Regional Offices. There shall be as many regional offices in
or through a contractor: Provided, That a small scale mining the country as may be established by the Secretary, upon the
agreement for a maximum aggregate area of twenty-five percent recommendation of the Director.
(25%) of such mineral reservation, subject to valid existing mining
quarrying rights as provided under Section 112 Chapter XX hereof. Sec. 11 Processing of Applications. The system of processing
All submerged lands within the contiguous zone and in the applications for mining rights shall be prescribed in the rules and
exclusive economic zone of the Philippines are hereby declared to regulations of this Act.
be mineral reservations.
Sec. 12 Survey, Charting and Delineation of Mining Areas. A sketch
A ten per centum (10%) share of all royalties and revenues to be plan or map of the contract or mining area prepared by a
derived by the government from the development and utilization deputized geodetic engineer suitable for publication purposes
of the mineral resources within mineral reservations as provided shall be required during the filing of a mineral agreement or
under this Act shall accrue to the Mines and Geosciences Bureau financial or technical assistance agreement application.
to be allotted for special projects and other administrative Thereafter, the contract or mining area shall be surveyed and
expenses related to the exploration and development of other monumented by a deputized geodetic engineer or bureau
mineral reservations mentioned in Section 6 hereof. geodetic engineer and the survey plan shall be approved by the
Director before the approval of the mining feasibility.
Sec. 6 Other Reservations. Mining operations in reserved lands
other than mineral reservations may be undertaken by the Sec. 13 Meridional Blocks. For purposes of the delineation of the
Department, subject to limitations as herein provided. In the contract of mining areas under this Act, the Philippine territory
event that the Department cannot undertake such activities, they and its exclusive economic zone shall be divided into meridional
may be undertaken by a qualified person in accordance with the blocks of one-half (1/2) minute of latitude and one-half (1/2)
rules and regulations promulgated by the Secretary. The right to minute of longitude.
develop and utilize the minerals found therein shall be awarded by
the President under such terms and conditions as recommended Sec. 14 Recording System. There shall be established a national
by the Director and approved by the Secretary. Provided, That the and regional filing and recording system. A mineral resource
party who undertook the exploration of said reservation shall be database system shall be set up in the Bureau which shall include,
given priority. The mineral land so awarded shall be automatically among others, a mineral rights management system. The Bureau
excluded from the reservation during the term of the agreement: shall publish at least annually, a mineral rights management
Provided, further, That the right of the lessee of a valid mining system. The Bureau shall publish at least annually, a mineral
contract existing within the reservation at the time of its gazette of nationwide circulation containing among others, a
establishment shall not be prejudiced or impaired. current list of mineral rights, their location in the map, mining
rules and regulations, other official acts affecting mining, and
Sec. 7 Periodic Review of Existing Mineral Reservations. The other information relevant to mineral resources development. A
Secretary shall periodically review existing mineral reservations for system and publication fund shall be included in the regular
the purpose of determining whether their continued existence is budget of the Bureau.
consistent with the national interest, and upon the
recommendation, the President may, by proclamation, alter or
modify the boundaries thereof or revert the same to the public CHAPTER III
domain without prejudice to prior existing rights. SCOPE OF APPLICATION
annual review and relinquishment or renewal upon the
Sec. 15 Scope of Application. This Act shall govern the exploration, recommendation of the Director.
development, utilization and processing of all mineral resources.
Sec. 22 Maximum Areas for Exploration Permit. The maximum
Sec. 16 Opening of Ancestral Lands for Mining Operations. No area that a qualified person may hold at any one time shall be:
ancestral land shall be opened for mining operations without the
prior consent of the indigenous cultural community concerned. (a) Onshore, in any one province -

Sec. 17 Royalty Payments for Indigenous Cultural Communities. In (1) For individuals, twenty (20) blocks; and
the event of an agreement with an indigenous cultural community
pursuant to the preceding section, the royalty payment, upon (2) (2) For partnerships, corporations, cooperatives, or
utilization of the minerals shall be agreed upon by the parties. The associations, two hundred (200) blocks.
said royalty shall form part of a trust fund for the socioeconomic
well-being of the indigenous cultural community. (b) Onshore, in the entire Philippines -

Sec. 18 Areas Open to Mining Operations. Subject to any existing (1) For individuals, forty (40) blocks; and
rights or reservations and prior agreements of all parties, all
mineral resources in public or private lands, including timber or (2) For partnerships, corporations, cooperatives, or associations,
forestlands as defined in existing laws shall be open to mineral four hundred (400) blocks.
agreements or financial or technical assistance agreement
applications. Any conflict that may arise under this provision shall (c) Onshore, beyond five hundred meters (500m) from the mean
be heard and resolved by the panel of arbitrators. low tide level -

Sec. 19 Areas Closed to Mining Applications. Mineral agreement (1) For individuals, one hundred (100) blocks; and
or financial or technical assistance agreement applications shall
not be allowed: (2) For partnerships, corporations, cooperatives, or associations,
one thousand (1,000) blocks.
(a) In military and other government reservations, except upon
prior written clearance by the government agency concerned; Sec. 23 Rights and Obligations of the Permittee. An exploration
permit shall grant to the permittee, his heirs or successors-in-
(b) Near or under public or private buildings, cemeteries, interest, the right to enter, occupy and explore the area: Provided,
archeological and historic sites, bridges, highways, waterways, That if private or other parties are affected, the permittee shall
railroads, reservoirs, dams or other infrastructure projects, public first discuss with the said parties the extent, necessity, and
or private works including plantations or valuable crops, except manner of his entry, occupation and exploration and in case of
upon written consent of the government agency or private entity disagreement, a panel of arbitrators shall resolve the conflict or
concerned; disagreement.

(c) In areas covered by valid and existing mining rights; The permittee shall undertake an exploration work on the area
specified by its permit based on an approved work program.
(d) In areas expressedly prohibited by law;
Any expenditure in excess of the yearly budget of the approved
(e) In areas covered by small-scale miners as defined by law unless work program may be carried forward and credited to the
with prior consent of the small-scale miners, in which case a succeeding years covering the duration of the permit. The
royalty payment upon the utilization of minerals shall be agreed Secretary, through the Director, shall promulgate rules and
upon by the parties, said royalty forming a trust fund for the regulations governing the terms and conditions of the permit.
socioeconomic development of the community concerned; and
The permittee may apply for a mineral production sharing
(f) Old growth or virgin forests, proclaimed watershed forest agreement, joint venture agreement, co-production agreement or
reserves, wilderness areas, mangrove forests, mossy forests, financial or technical assistance agreement over the permit area,
national parks, provincial/municipal forests, parks, greenbelts, which application shall be granted if the permittee meets the
game refuge and bird sanctuaries as defined by law in areas necessary qualifications and the terms and conditions of any such
expressly prohibited under the National Integrated Protected agreement: Provided, That the exploration period covered by the
areas System (NIPAS) under Republic Act No. 7586, Department exploration permit shall be included as part of the exploration
Administrative Order No. 25, series of 1992 and other laws. period of the mineral agreement or financial or technical
assistance agreement.
CHAPTER IV
EXPLORATION PERMIT Sec. 24 Declaration of Mining Project Feasibility. A holder of an
exploration permit who determines the commercial viability of a
Sec. 20 Exploration Permit. An exploration permit grants the right project covering a mining area may, within the term of the permit,
to conduct exploration for all minerals in specified areas. The file with the Bureau a declaration of mining project feasibility
Bureau shall have the authority to grant an exploration permit to a accompanied by a work program for development. The approval
qualified person. of the mining project feasibility and compliance with other
requirements provided in this Act shall entitle the holder to an
Sec. 21 Terms and Conditions of the Exploration Permit. An exclusive right to a mineral production sharing agreement or other
exploration permit shall be for a period of two (2) years, subject to mineral agreements or financial or technical assistance
agreement.
(c) Offshore, in the entire Philippines -
Sec. 25 Transfer or Assignment. An exploration permit may be
transferred or assigned to a qualified person subject to the (1) For individuals, fifty (50) blocks;
approval of the Secretary upon the recommendation of the
Director. (2) For partnerships, cooperatives, associations, or corporations,
five hundred (500) blocks; and
CHAPTER V
MINERAL AGREEMENTS (3) For the exclusive economic zone, a larger area to be
determined by the Secretary.
Sec. 26 Modes of Mineral Agreement. For purposes of mining
operations, a mineral agreement may take the following forms as The maximum areas mentioned above that a contractor may hold
herein defined: under a mineral agreement shall not include mining/quarry areas
under operating agreements between the contractor and a
(a) Mineral production sharing agreement - is an agreement claimowner/lessee/permittee/licensee entered into under
where the Government grants to the contractor the exclusive right Presidential Decree No. 463.
to conduct mining operations within a contract area and shares in
the gross output. The contractor shall provide the financing, Sec. 29 Filing and Approval of Mineral Agreements. All proposed
technology, management and personnel necessary for the mineral agreements shall be filed in the region where the areas of
implementation of this agreement. interest are located, except in mineral reservations which shall be
filed with the Bureau.
(b) Co-production agreement - is an agreement between the
Government and the contractor wherein the Government shall The filing of a proposal for a mineral agreement shall give the
provide inputs to the mining operations other than the mineral proponent the prior right to areas covered by the same. The
resource. proposed mineral agreement will be approved by the Secretary
and copies thereof shall be submitted to the President. Thereafter,
(c) Joint venture agreement - is an agreement where a joint- the President shall provide a list to Congress of every approved
venture company is organized by the Government and the mineral agreement within thirty (30) days from its approval by the
contractor with both parties having equity shares. Aside from Secretary.
earnings in equity, the Government shall be entitled to a share in
the gross output. Sec. 30 Assignment/Transfer. Any assignment or transfer of rights
and obligations under any mineral agreement except a financial or
A mineral agreement shall grant to the contractor the exclusive technical assistance agreement shall be subject to the prior
right to conduct mining operations and to extract all mineral approval of the Secretary. Such assignment or transfer shall be
resources found in the contract area. In addition, the contractor deemed automatically approved if not acted upon by the
may be allowed to convert his agreement into any of the modes of Secretary within thirty (30) working days from official receipt
mineral agreements or financial or technical assistance agreement thereof, unless patently unconstitutional or illegal.
covering the remaining period of the original agreement subject
to the approval of the Secretary. Sec. 31 Withdrawal from Mineral Agreements. The contractor
may, by giving due notice at any time during the terms of the
Sec. 27 Eligibility. A qualified person may enter into any of the agreement, apply for the cancellation of the mineral agreement
three (3) modes of mineral agreement with the government for due to causes which, in the opinion of the contractor, make
the exploration, development and utilization of mineral resources: continued mining operations no longer feasible or viable. The
Provided, That in case the applicant has been in the mining Secretary shall consider the notice and issue its decision within a
industry for any length of time, he should possess a satisfactory period of thirty (30) days: Provided, That the contractor has met
environmental track record as determined by the Mines and all its financial, fiscal and legal obligations.
Geosciences Bureau and in consultation with the Environment
Management Bureau of the Department. Sec. 32 Terms. Mineral agreements shall have a term not
exceeding twenty-five (25) years to start from the date of
Sec. 28 Maximum Areas for Mineral Agreement. The maximum execution thereof, and renewable for another term not exceeding
area that a qualified person may hold at any time under a mineral twenty-five (25) years under the same terms and conditions
agreement shall be: thereof, without prejudice to charges mutually agreed upon by
the parties. After the renewal period, the operation of the mine
(a) Onshore, in any one province - may be undertaken by the Government or through a contractor.
The contract for the operation of a mine shall be awarded to the
(1) For individuals, ten (10) blocks; and highest bidder in a public bidding after due publication of the
notice thereof: Provided, That the contractor shall have the right
(2) For partnerships, cooperatives, associations, or corporations, to equal the highest bid upon reimbursement of all reasonable
one hundred (100) blocks. expenses of the highest bidder.

(b) Onshore, in the entire Philippines -

(1) For individuals, twenty (20) blocks; and

(2) For partnerships, cooperatives, associations, or corporations, CHAPTER VI


two hundred (200) blocks. FINANCIAL OR TECHNICAL ASSISTANCE AGREEMENT
Sec. 33 Eligibility. Any qualified person with technical and financial (i) Preferential use of local goods and services to the maximum
capability to undertake large-scale exploration, development, and extent practicable;
utilization of mineral resources in the Philippines may enter into a
financial or technical assistance agreement directly with the (j) A stipulation that the contractors are obligated to give
Government through the Department. preference to Filipinos in all types of mining employment for
which they are qualified and that technology shall be transferred
Sec. 34 Maximum Contract Area. The maximum contract area that to the same;
may be granted per qualified person, subject to relinquishment
shall be: (k) Requiring the prominent to effectively use appropriate anti-
pollution technology and facilities to protect the environment and
(a) 1,000 meridional blocks onshore; to restore or rehabilitate mined out areas and other areas affected
(b) 4,000 meridional blocks offshore; or by mine tailings and other forms of pollution or destruction;
(c) Combinations of (a) and (b) provided that it shall not exceed
the maximum limits for onshore and offshore areas. (l) The contractors shall furnish the Government records of
geologic, accounting, and other relevant data for its mining
Sec. 35 Terms and Conditions. The following terms, conditions, operations, and that book of accounts and records shall be open
and warranties shall be incorporated in the financial or technical for inspection by the government;
assistance agreement, to wit:
(m) Requiring the proponent to dispose of the minerals and by
(a) A firm commitment in the form of a sworn statement, of an products produced under a financial or technical assistance
amount corresponding to the expenditure obligation that will be agreement at the highest price and more advantageous terms and
invested in the contract area: Provided, That such amount shall be conditions as provided for under the rules and regulations of this
subject to changes as may be provided for in the rules and Act;
regulations of this act;
(n) Provide for consultation and arbitration with respect to the
(b) A financial guarantee bond shall be posted in favor of the interpretation and implementation of the terms and conditions of
Government in an amount equivalent to the expenditure the agreements; and
obligation of the applicant for any year.
(o) Such other terms and conditions consistent with the
(c) Submission of proof of technical competence, such as, but not Constitution and with this Act as the Secretary may deem to be for
limited to, its track record in mineral resource exploration, the best interest of the State and the welfare of the Filipino
development, and utilization; details of technology to be people.
employed in the proposed operation; and details of technical
personnel to undertake the operations; Sec. 36 Negotiations. A financial or technical assistance agreement
shall be negotiated by the Department and executed and
(d) Representations and warranties that the applicant has all the approved by the President. The President shall notify Congress of
qualifications and none of the disqualifications for entering into all Financial or technical assistance agreements within thirty (30)
the agreement; days from execution and approval thereof.

(e) Representations and warranties that the contractor has or has Sec. 37 Filing and Evaluation of Financial or Technical Assistance
access to all the financing, managerial and technical expertise and, Agreement Proposals. All financial or technical assistance
if circumstances demand, the technology required to promptly agreement proposals shall be filed with the Bureau after payment
and effectively carry out the objectives of the agreement with the of the required processing fees. If the proposal is found to be
understanding to timely deploy these resources under its sufficient and meritorious in form and substance after evaluation,
supervision pursuant to the periodic work programs and related it shall be recorded with the appropriate government agency to
budgets, when proper, providing an exploration period up to two give the proponent the prior right to the area covered by such
(2) years, extendible for another two (2) years but subject to proposal: Provided, That existing mineral agreements, financial or
annual review by the Secretary in accordance with the technical assistance agreements and other mining rights are not
implementing rules and regulations of this Act, and further, impaired or prejudiced thereby. The Secretary shall recommend
subject to the relinquishment obligations; its approval to the President.

(f) Representations and warranties that, except for payments for Sec. 38 Terms of Financial or Technical Assistance Agreement. A
dispositions for its equity, foreign investments in local enterprises financial or technical assistance agreement shall have a term not
which are qualified for repartriation, and local supplier's credits exceeding twenty-five (25) years to start from the execution
and such other generally accepted and permissible financial thereof, renewable for not more than twenty-five (25) years under
schemes for raising funds for valid business purposes, the such terms and conditions as may be provided by law.
contractor shall not raise any form of financing from domestic
sources of funds, whether in Philippine or foreign currency, for Sec. 39 Option to Convert into a Mineral Agreement. The
conducting its mining operations for and in the contract area; contractor has the option to convert the financial or technical
assistance agreement to a mineral agreement at any time during
(g) The mining operations shall be conducted in accordance with the term of the agreement, if the economic viability of the
the provisions of this Act and its implementing rules and contract area is found to be inadequate to justify large-scale
regulations; mining operations, after proper notice to the Secretary as
provided for under the implementing rules and regulations:
(h) Work programs and minimum expenditures commitments; Provided, That the mineral agreement shall only be for the
remaining period of the original agreement.
cancellation of such permit, the holder thereof shall be given the
In the case of a foreign contractor, it shall reduce its equity to forty opportunity to be heard in an investigation conducted for the
percent (40%) in the corporation, partnership, association, or purpose.
cooperative. Upon compliance with this requirement by the
contractor, the Secretary shall approve the conversion and execute Sec. 46 Commercial Sand and Gravel Permit. Any qualified person
the mineral production-sharing agreement. may be granted a permit by the provincial governor to extract and
remove sand and gravel or other loose or unconsolidated
Sec. 40 Assignment/Transfer. A financial or technical assistance materials which are used in their natural state, without
agreement may be assigned or transferred, in whole or in part, to undergoing processing from an area of not more than five
a qualified person subject to the prior approval of the President: hectares (5 has.) and in such quantities as may be specified in the
Provided, That the President shall notify Congress of every permit.
financial or technical assistance agreement assigned or converted
in accordance with this provision within thirty (30) days from the Sec. 47 Industrial Sand and Gravel Permit. Any qualified person
date of the approval thereof. may be granted an industrial sand and gravel permit by the
Bureau for the extraction of sand and gravel and other loose or
Sec. 41 Withdrawal from Financial or Technical Assistance unconsolidated materials that necessitate the use of mechanical
Agreement. The contractor shall manifest in writing to the processing covering an area of more than five hectares (5 has.) at
Secretary his intention to withdraw from the agreement, if in his any one time. The permit shall have a term of five (5) years,
judgement the mining project is no longer economically feasible, renewable for a like period but not to exceed a total term of
even after he has exerted reasonable diligence to remedy the twenty-five (25) years.
cause or the situation. The Secretary may accept the withdrawal:
Provided, That the contractor has complied or satisfied all his Sec. 48 Exclusive Sand and Gravel Permit. Any qualified person
financial, fiscal or legal obligations. may be granted an exclusive sand and gravel permit by the
provincial governor to quarry and utilize sand and gravel or other
CHAPTER VII loose or unconsolidated materials from public lands for his own
SMALL-SCALE MINING use, provided that there will be no commercial disposition
thereof.
Sec. 42 Small-scale Mining. Small-scale mining shall continue to be
governed by Republic Act No. 7076 and other pertinent laws. A mineral agreement or a financial technical assistance agreement
contractor shall, however, have the right to extract and remove
CHAPTER VIII sand and gravel and other loose unconsolidated materials without
QUARRY RESOURCES need of a permit within the area covered by the mining
agreement for the exclusive use in the mining operations:
Sec. 43 Quarry Permit. Any qualified person may apply to the Provided, That monthly reports of the quantity of materials
provincial/city mining regulatory board for a quarry permit on extracted therefrom shall be submitted to the mines regional
privately-owned lands and/or public lands for building and office concerned: Provided, further, That said right shall be
construction materials such as marble, basalt, andesite, coterminous with the expiration of the agreement.
conglomerate, tuff, adobe, granite, gabbro, serpentine, inset filing
materials, clay for ceramic tiles and building bricks, pumice, perlite Holders of existing mining leases shall likewise have the same
and other similar materials that are extracted by quarrying from rights as that of a contractor: Provided, That said right shall be
the ground. The provincial governor shall grant the permit after coterminous with the expiry dates of the lease.
the applicant has complied with all the requirements as
prescribed by the rules and regulations. Sec. 49 Government Gratuitous Permit. Any government entity or
instrumentality may be granted a gratuitous permit by the
The maximum area which a qualified person may hold at any one provincial governor to extract sand and gravel, quarry or loose
time shall be five hectares (5 has.): Provided, That in large-scale unconsolidated materials needed in the construction of building
quarry operations involving cement raw materials, marble, and/or infrastructure for public use or other purposes over an
granite, sand and gravel and construction agreements, a qualified area of not more than two hectares (2 has.) for a period
person and the government may enter into a mineral agreement coterminous with said construction.
as defined herein.
Sec. 50 Private Gratuitous Permit. Any owner of land may be
A quarry permit shall have a term of five (5) years, renewable for granted a private gratuitous permit by the provincial governor.
like periods but not to exceed a total term of twenty-five (25)
years, No quarry permit shall be issued or granted on any area Sec. 51 Guano Permit. Any qualified person may be granted a
covered by a mineral agreement, or financial or technical guano permit by the provincial governor to extract and utilize
assistance agreement. loose unconsolidated guano and other organic fertilizer materials
in any portion of a municipality where he has established
Sec. 44 Quarry Fee and Taxes. A permittee shall, during the term domicile. The permit shall be for specific caves and/or for confined
of his permit, pay a quarry fee as provided for under the sites with locations verified by the Department's field officer in
implementing rules and regulations. The permittee shall also pay accordance with existing rules and regulations.
the excise tax as provided by pertinent laws.
Sec. 52 Gemstone Gathering Permit. Any qualified person may be
Sec. 45 Cancellation of Quarry Permit. A quarry permit may be granted a non-exclusive gemstone gathering permit by the
cancelled by the provincial governor for violations of the provincial governor to gather loose stones useful as gemstones in
provisions of this Act or its implementing rules and regulations or rivers and other locations.
the terms and conditions of said permit: Provided, That before the
CHAPTER IX
TRANSPORT, SALE AND PROCESSING OF MINERALS Sec. 59 Training and Development. A contractor shall maintain an
effective program of manpower training and development
Sec. 53 Ore Transport Permit. A permit specifying the origin and throughout the term of the mineral agreement and shall
quantity of non-processed mineral ores or minerals shall be encourage and train Filipinos to participate in all aspects of the
required for their transport. Transport permits shall be issued by mining operations, including the management thereof. For highly-
the mines regional director who has jurisdiction over the area technical and specialized mining operations, the contractor may,
where the ores were extracted. In the case of mineral ores or subject to the necessary government clearances, employ qualified
minerals being transported from the small-scale mining areas to foreigners.
the custom mills or processing plants, the Provincial Mining
Regulatory Board (PMRB) concerned shall formulate their own Sec. 60 Use of Indigenous Goods, Services and Technologies. A
policies to govern such transport of ores produced by small-scale contractor shall give preference to the use of local goods, services
miners. The absence of a permit shall be considered as prima facie and scientific and technical resources in the mining operations,
evidence of illegal mining and shall be sufficient cause for the where the same are of equivalent quality, and are available on
Government to confiscate the ores or minerals being transported, equivalent terms as their imported counterparts.
the tools and equipment utilized, and the vehicle containing the
same. Ore samples not exceeding two metric tons (2 m.t.) to be Sec. 61 Donations/Turn Over of Facilities. Prior to cessation of
used exclusively for assay or pilot test purposes shall be exempted mining operations occasioned by abandonment or withdrawal of
from such requirement. operations, on public lands by the contractor, the latter shall have
a period of one (1) year therefrom within which to remove his
Sec. 54 Mineral Trading Registration. No person shall engage in the improvements; otherwise, all the social infrastructure and
trading of mineral products, either locally or internationally, unless facilities shall be turned over or donated tax-free to the proper
registered with the Department of Trade and Industry and government authorities, national or local, to ensure that said
accredited by the Department, with a copy of said registration infrastructure and facilities are continuously maintained and
submitted to the Bureau. utilized by the host and neighboring communities.

Sec. 55 Minerals Processing Permit. No person shall engage in the Sec. 62 Employment of Filipinos. A contractor shall give preference
processing of minerals without first securing a minerals processing to Filipino citizens in all types of mining employment within the
permit from the Secretary. Minerals processing permit shall be for country insofar as such citizens are qualified to perform the
a period of five (5) years renewable for like periods but not to corresponding work with reasonable efficiency and without
exceed a total term of twenty-five (25) years. In the case of hazard to the safety of the operations. The contractor, however,
mineral ores or minerals produced by the small-scale miners, the shall not be hindered from hiring employees of his own selection,
processing thereof as well as the licensing of their custom mills, or subject to the provision of Commonwealth Act No. 613, as
processing plants shall continue to be governed by the provisions amended, for technical and specialized work which in his
of Republic Act No. 7076. judgement and with the approval of the Director, required highly-
specialized training or long experience in exploration,
Sec. 56 Eligibility of Foreign-owned/-controlled Corporation. A development or utilization of mineral resources: Provided, That in
foreign-owned/-controlled corporation may be granted a mineral no case shall each employment exceed five (5) years or the
processing permit. payback period as represented in original project study, whichever
is longer: Provided, further, That each foreigner employed as mine
CHAPTER X manager, vice-president for operations or in an equivalent
DEVELOPMENT OF MINING COMMUNITIES, SCIENCE AND managerial position in charge of mining, milling, quarrying or
MINING TECHNOLOGY drilling operation shall:

Sec. 57 Expenditure for Community Development and Science and (a) Present evidence of his qualification and work experience; or
Mining Technology. A contractor shall assist in the development of
its mining community, the promotion of the general welfare of its (b) Shall pass the appropriate government licensure examination;
inhabitants, and the development of science and mining or
technology.
(c) In special cases, may be permitted to work by the Director for a
Sec. 58 Credited Activities. Activities that may be credited as period not exceeding one (1) year: Provided, however, That if
expenditures for development of mining communities, and reciprocal privileges are extended to Filipino nationals in the
science and mining technology are the following: country of domicile, the Director may grant waivers or
exemptions.
(a) Any activity or expenditure intended to enhance the
development of the mining and neighboring communities of a CHAPTER XI
mining operation other than those required or provided for under SAFETY AND ENVIRONMENTAL PROTECTION
existing laws, or collective bargaining agreements, and the like:
and Sec. 63 Mines Safety and Environmental Protection. All contractors
and permittees shall strictly comply with all the mines safety rules
(b) Any activity or expenditure directed towards the development and regulations as may be promulgated by the Secretary
of geosciences and mining technology such as, but not limited to, concerning the safe and sanitary upkeep of the mining operations
institutional and manpower development, and basic and applied and achieve waste-free and efficient mine development.
researches. Appropriate supervision and control mechanisms shall Personnel of the Department involved in the implementation of
be prescribed in the implementing rules and regulations of this mines safety, health and environmental rules and regulations shall
Act. be covered under Republic Act No. 7305.
Sec. 64 Mine Labor. No person under sixteen (16) years of age Sec. 71 Rehabilitation. Contractors and permittees shall technically
shall be employed in any phase of mining operations and no and biologically rehabilitate the excavated mined-out, tailings
person under eighteen (18) years of age shall be employed covered and disturbed areas to the condition of environmental
underground in a mine. safety, as may be provided in the implementing rules and
regulations of this Act. A mine rehabilitation fund shall be created,
Sec. 65 Mine Supervision. All mining and quarrying operations based on the contractor's approved work program, and shall be
that employ more than fifty (50) workers shall have at least one deposited as a trust fund in a government depository bank and
(1) licensed mining engineer with at least five (5) years of used for physical and social rehabilitation of areas and
experience in mining operations, and one (1) registered foreman. communities affected by mining activities and for research on the
social, technical and preventive aspects of rehabilitation. Failure to
Sec. 66 Mine Inspection. The regional director shall have exclusive fulfill the above obligation shall mean immediate suspension or
jurisdiction over the safety inspection of all installations, surface closure of the mining activities of the contractor/permittee
or underground, in mining operations at reasonable hours of the concerned.
day or night and as much as possible in a manner that will not
impede or obstruct work in progress of a contractor or permittee. CHAPTER XII
AUXILIARY MINING RIGHTS
Sec. 67 Power to Issue Orders. The mines regional director shall, in
consultation with the Environmental Management Bureau, Sec. 72 Timber Rights. Any provision of law to the contrary
forthwith or within such time as specified in his order, require the notwithstanding, a contractor may be ranged a right to cut trees
contractor to remedy any practice connected with mining or or timber within his mining area as may be necessary for his
quarrying operations, which is not in accordance with safety and mining operations subject to forestry laws, rules and regulations:
anti-pollution laws and regulations, which is not in accordance Provided, That if the land covered by the mining area is already
with safety and anti-pollution laws and regulations. In case of covered by existing timber concessions, the volume of timber
imminent danger to life or property, the mines regional director needed and the manner of cutting and removal thereof shall be
may summarily suspend the mining or quarrying operations until determined by the mines regional director, upon consultation with
the danger is removed, or appropriate measures are taken by the the contractor, the timber concessionaire/permittee and the
contractor or permittee. Forest Management Bureau of the Department: Provided, further,
That in case of disagreement between the contractor and the
Sec. 68 Report of Accidents. In case of any incident or accident, timber concessionaire, the matter shall be submitted to the
causing or creating the danger of loss of life or serious physical Secretary whose decision shall be final. The contractor shall
injuries, the person in charge of operations shall immediately perform reforestation work within his mining area in accordance
report the same to the regional office where the operations are with forestry laws, rules and regulations.
situated. Failure to report the same without justifiable reason
shall be a cause for the imposition of administrative sanctions Sec. 73 Water Rights. A contractor shall have water rights for
prescribed in the rules and regulations implementing this Act. mining operations upon approval of application with the
appropriate government agency in accordance with existing water
Sec. 69 Environmental Protection. Every contractor shall laws, rules and regulations promulgated thereunder: Provided,
undertake an environmental protection and enhancement That water rights already granted or vested through long use,
program covering the period of the mineral agreement or permit. recognized and acknowledged by local customs, laws, and
Such environmental program shall be incorporated in the work decisions of courts shall not thereby be impaired: Provided
program which the contractor or permittee shall submit as an further, That the Government reserves the right to regulate water
accompanying document to the application for a mineral rights and the reasonable and equitable distribution of water
agreement or permit. The work program shall include not only supply so as to prevent the monopoly of the use thereof.
plans relative to mining operations but also to rehabilitation,
regeneration, revegetation and reforestation of mineralized areas, Sec. 74 Right to Possess Explosives. A contractor/ exploration
slope stabilization of mined-out and tailings covered areas, permittee shall have the right to possess and use explosives within
aquaculture, watershed development and water conservation; his contract/permit area as may be necessary for his mining
and socioeconomic development. operations upon approval of an application with the appropriate
government agency in accordance with existing laws, rules and
Sec. 70 Environmental Impact Assessment (EIA). Except during the regulations promulgated thereunder: Provided, That the
exploration period of a mineral agreement or financial or technical Government reserves the right to regulate and control the
assistance agreement or an exploration permit, an environmental explosive accessories to ensure safe mining operations.
clearance certificate shall be required based on an environmental
impact assessment and procedures under the Philippine Sec. 75 Easement Rights. When mining areas are so situated that
Environmental Impact Assessment System including Sections 26 for purposes of more convenient mining operations it is necessary
and 27 of the Local Government Code of 1991 which require to build, construct or install on the mining areas or lands owned,
national government agencies to maintain ecological balance, and occupied or leased by other persons, such infrastructure as roads,
prior consultation with the local government units, railroads, mills, waste dump sites, tailings ponds, warehouses,
nongovernmental and people's organizations and other concerned staging or storage areas and port facilities, tramways, runways,
sectors of the community: Provided, That a completed ecological airports, electric transmission, telephone or telegraph lines, dams
profile of the proposed mining area shall also constitute part of and their normal flood and catchment areas, sites for water wells,
the environmental impact assessment. People's organizations and ditches, canals, new river beds, pipelines, flumes, cuts, shafts,
non-governmental organizations shall be allowed and encourage tunnels, or mills, the contractor, upon payment of just
to participate in ensuring that contractors/permittees shall compensation, shall be entitled to enter and occupy said mining
observe all the requirements of environmental protection. areas or lands.
(b) To administer oaths, summon the parties to a controversy,
Sec. 76 Entry into Private Lands and Concession Areas. Subject to issue subpoenas requiring the attendance and testimony of
prior notification, holders of mining rights shall not be prevented witnesses or the production of such books, paper, contracts,
from entry into private lands and concession areas by surface records, statement of accounts, agreements, and other
owners, occupants, or concessionaires when conducting mining documents as may be material to a just determination of the
operations therein: Provided, That any damage done to the matter under investigation, and to testify in any investigation or
property of the surface owner, occupant, or concessionaire as a hearing conducted in pursuance of this Act;
consequence of such operations shall be properly compensated as
may be provided for in the implementing rules and regulations: (c) To conduct hearings on all matters within its jurisdiction,
Provided, further, That to guarantee such compensation, the proceed to hear and determine the disputes in the absence of any
person authorized to conduct mining operation shall, prior party thereto who has been summoned or served with notice to
thereto, post a bond with the regional director based on the type appear, conduct its proceedings or any part thereof in public or in
of properties, the prevailing prices in and around the area where private, adjourn its hearings at any time and place, refer technical
the mining operations are to be conducted, with surety or sureties matters or accounts to an expert and to accept his report as
satisfactory to the regional director. evidence after hearing of the parties upon due notice, direct
parties to be joined in or excluded from the proceedings, correct,
CHAPTER XIII amend, or waive any error, defect or irregularity, whether in
SETTLEMENT OF CONFLICTS substance or in form, give all such directions at it may deem
necessary or expedient in the determination of the dispute before
Sec. 77 Panel of Arbitrators. There shall be a panel of arbitraters in it and dismiss the mining dispute as part thereof, where it is trivial
the regional office of the Department composed of three (3) or where further proceedings by the Board are not necessary or
members, two (2) of whom must be members of the Philippine desirable;
Bar in good standing and one licensed mining engineer or a
professional in a related field, and duly designated by the (1) to hold any person in contempt, directly or indirectly, and
Secretary as recommended by the Mines and Geosciences Bureau impose appropriate penalties therefor; and
Director. Those designated as members of the panel shall serve as
such in addition to their work in the Department without receiving (2) To enjoin any or all acts involving or arising from any case
any additional compensation. As much as practicable, said pending before it which, if not restrained forthwith, may cause
members shall come from the different bureaus of the grave or irreparable damage to any of the parties to the case or
Department in the region. The presiding officer shall be on a seriously affect social and economic stability.
yearly basis. The members of the panel shall perform their duties
and obligations in hearing and deciding cases until their In any proceeding before the Board, the rules of evidence
designation is withdrawn or revoked by the Secretary. Within prevailing in courts of law or equity shall not be controlling and it
thirty (30) working days, after the submission of the case by the is the spirit and intention of this Act that shall govern. The Board
parties for decision, the panel shall have exclusive and original shall use every and all reasonable means to ascertain the facts in
jurisdiction to hear and decide on the following: each case speedily and objectively and without regard to
technicalities of law or procedure, all in the interest of due
(a) Disputes involving rights to mining areas; process. In any proceeding before the Board, the parties may be
represented by legal counsel. the findings of fact of the Board
(b) Disputes involving mineral agreements or permits; shall be conclusive and binding on the parties and its decision or
order shall be final and executory.
(c) Disputes involving surface owners, occupants and
claimholders/concessionaires; and A petition for review by certiorari and question of law may be filed
by the aggrieved party with the Supreme Court within thirty (30)
(d) Disputes pending before the Bureau and the Department at days from receipt of the order or decision of the Board.
the date of the effectivity of this Act.
CHAPTER XIV
Sec. 78 Appellate Jurisdiction. The decision or order of the panel GOVERNMENT SHARE
of arbitrators may be appealed by the party not satisfied thereto
to the mines Adjudication Board within fifteen (15) days from Sec. 80 Government Share in Mineral Production Sharing
receipt thereof which must decide the case within thirty (30) days Agreement. The total government share in a mineral production
from submission thereof for decision. sharing agreement shall be the excise tax on mineral products as
provided in Republic Act No. 7729, amending Section 151(a) of the
Sec. 79 Mines Adjudication Board. The Mines Adjudication Board National Internal Revenue Code, as amended.
shall be composed of three (3) members. The Secretary shall be
the chairman with the Director of the Mines and Geosciences Sec. 81 Government Share in Other Mineral Agreements. The
Bureau and the Undersecretary for Operations of the Department share of the Government in co-production and joint-venture
as member thereof. The Board shall have the following powers agreements shall be negotiated by the Government and the
and functions: contractor taking into consideration the: (a) capital investment of
the project, (b) risks involved, (c) contribution of the project to the
(a) To promulgate rules and regulations governing the hearing and economy, and (d) other factors that will provide for a fair and
disposition of cases before it, as well as those pertaining to its equitable sharing between the Government and the contractor.
internal functions, and such rules and regulations as may be The Government shall also be entitled to compensations for its
necessary to carry out its functions; other contributions which shall be agreed upon by the parties,
and shall consist, among other things, the contractor's income tax,
excise tax, special allowance, withholding tax due from the
contractor's foreign stockholders arising from dividend or interest Sec. 86 Occupation Fees. There shall be collected from any holder
payments to the said foreign stockholders, in case of a foreign of a mineral agreement, financial or technical assistance
national, and all such other taxes, duties and fees as provided for agreement or exploration permit on public or private lands, an
under existing laws. annual occupation fee in accordance with the following schedule;

The Government share in financial or technical assistance (a) For exploration permit - Five pesos (P5.00) per hectare or
agreement shall consist of, among other things, the contractor's fraction thereof per annum;
corporate income tax, excise tax, special allowance, withholding
tax due from the contractor's foreign stockholders arising from (b) For mineral agreements and financial or technical assistance
dividend or interest payments to the said foreign stockholder in agreements - Fifty pesos (P50.00) per hectare or fraction thereof
case of a foreign national and all such other taxes, duties and fees per annum; and
as provided for under existing laws.
(c) For mineral reservation - One hundred pesos (P100.00) per
The collection of government share in financial or technical hectare or fraction thereof per annum.
assistance agreement shall commence after the financial or
technical assistance agreement contractor has fully recovered its The Secretary is authorized to increase the occupation fees
pre-operating expenses, exploration, and development provided herein when the public interest so requires, upon
expenditures, inclusive. recommendation of the Bureau Director.

Sec. 82 Allocation of Government Share. The Government share as Sec. 87 Manner of payment of Fees. The fees shall be paid on the
referred to in the preceding sections shall be shared and allocated date the mining agreement is registered with the appropriate
in accordance with Sections 290 and 292 of Republic Act No. 7160 office and on the same date every year thereafter. It shall be paid
otherwise known as the Local Government Code of 1991. In case to the treasurer of the municipality or city where the onshore
the development and utilization of mineral resources is mining areas are located, or to the Director in case of offshore
undertaken by a government-owned or controlled corporation, mining areas. For this purpose, the appropriate officer shall
the sharing and allocation shall be in accordance with Sections submit to the treasurer of the municipality or city where the
291 and 292 of the said Code. onshore mining area is located, a complete list of all onshore
mining rights registered with his office, indicating therein the
CHAPTER XV names of the holders, area in hectares, location, and date
TAXES AND FEES registered. If the fee is not paid on the date specified, it shall be
increased by twenty-five per centum (25%).
Sec. 83 Income Taxes. After the lapse of the income tax holiday as
provided for in the Omnibus Investments Code, the contractor Sec. 88 Allocation of Occupation Fees. Thirty per centum (30%) of
shall be liable to pay income tax as provided in the National all occupational fees collected from holders of mining rights in
Internal Revenue Code, as amended. onshore mining areas shall accrue to the province and seventy per
centum (70%) to the municipality in which the onshore mining
Sec. 84 Excise Tax on Mineral Products. The contractor shall be areas are located. In a chartered city, the full amount shall accrue
liable to pay the excise tax on mineral products as provided for to the city concerned.
under Section 151 of the National Internal Revenue Code:
Provided, however, That with respect to a mineral production Sec. 89 Filing Fees and Other Charges. The Secretary is authorized
sharing agreement, the excise tax on mineral products shall be the to charge reasonable filing fees and other charges as he may
government share under said agreement. prescribe in accordance with the implementing rules and
regulations.
Sec. 85 Mine Wastes and Tailings Fees. A semi-annual fee to be
known as mine wastes and tailings fee is hereby imposed on all CHAPTER XVI
operating mining companies in accordance with the implementing INCENTIVES
rules and regulations. The mine wastes and tailings fee shall
accrue to a reserve fund to be used exclusively for payment for Sec. 90 Incentives. The contractors in mineral agreements, and
damages to: financial or technical assistance agreements shall be entitled to
the applicable fiscal and non-fiscal incentives as provided for
(a) Lives and personal safety; under Executive Order No. 226, otherwise known as the Omnibus
(b) Lands, agricultural crops and forest products, marine life and Investments Code of 1987: Provided, That holders of exploration
aquatic resources, cultural resources; and permits may register with the Board of Investments and be
(c) Infrastructure and the revegetation and rehabilitation of silted entitled to the fiscal incentives granted under the said Code for
farm lands and other areas devoted to agriculture and fishing the duration of the permits or extensions thereof: Provided,
caused by mining pollution. further, That mining activities shall always be included in the
investment priorities plan.
This is in addition to the suspension or closure of the activities of
the contractor at any time and the penal sanctions imposed upon Sec. 91 Incentives for Pollution Control Devices. Pollution control
the same. devices acquired, constructed or installed by contractors shall not
be considered as improvements on the land or building where
The Secretary is authorized to increase mine wastes and tailings they are placed, and shall not be subject to real property and
fees, when public interest so requires, upon the recommendation other taxes or assessments: Provided, however, That payment of
of the Director. mine wastes and tailings fees is not exempted.
Sec. 92 Income Tax-Carry Forward of Losses. A net operating loss (d) Freedom from expropriation. The right to be free from
without the benefit of incentives incurred in any of the first ten expropriation by the government of the property represented by
(10) years of operations may be carried over as a deduction from investments or loans, or of the property of the enterprise except
taxable income for the next five (5) years immediately following for public use or in the interest of national welfare or defense and
the year of such loss. The entire amount of the loss shall be upon payment of just compensation. In such cases, foreign
carried over to the first of the five (5) taxable years following the investors or enterprises shall have the right to remit sums received
loss, and any portion of such loss which exceeds the taxable as compensation for the expropriated property in the currency in
income of such first year shall be deducted in like manner from which the investment was originally made and at the exchange
the taxable income of the next remaining four (4) years. rate prevailing at the time of remittance.

Sec. 93 Income Tax-Accelerated Depreciation. Fixed assets may be (e) Requisition of investment. The right to be free from requisition
depreciated as follows: of the property represented by the investment or of the property
of the enterprises except in case of war or national emergency
(a) To the extent of not more than twice as fast as the normal rate and only for the duration thereof. Just compensation shall be
of depreciation or depreciated at normal rate of depreciation if determined and paid either at the time or immediately after
the expected life is ten (10) years or less; or cessation of the state of war or national emergency. Payments
received as compensation for the requisitioned property may be
(b) Depreciated over any number of years between five (5) years remitted in the currency in which the investments were originally
and the expected life if the latter is more than ten (10) years, and made and at the exchange rate prevailing at the time of
the depreciation thereon allowed as deduction from taxable remittance.
income: Provided, That the contractor notifies the Bureau of
Internal Revenue at the beginning of the depreciation period (f) Confidentiality. Any confidential information supplied by the
which depreciation rate allowed by this section will be used. contractor pursuant to this Act and its implementing rules and
regulations shall be treated as such by the department and the
In computing for taxable income, unless otherwise provided in this Government, and during the term of the project to which it
Act, the contractor may, at his option, deduct exploration and relates.
development expenditures accumulated at cost as of the date of
the prospecting or exploration and development expenditures CHAPTER XVII
paid or incurred during the taxable year: Provided, That the total GROUND FOR CANCELLATION, REVOCATION, AND TERMINATION
amount deductible for exploration and development expenditures
shall not exceed twenty-five per centum (25%) of the net income Sec. 95 Late or Non-filing of Requirements. Failure of the
from mining operations. The actual exploration and development permittee or contractor to comply with any of the requirements
expenditures minus the twenty-five per centum (25%) net income provided in this Act or in its implementing rules and regulations,
from mining shall be carried forward to the succeeding years until without a valid reason, shall be sufficient ground from the
fully deducted. suspension of any permit or agreement provided under this Act.

Net income from mining operation is defined as gross income Sec. 96 Violation of the Terms and Conditions of Permits or
from operations less allowable deductions which are necessary or Agreements. Violations of the terms and conditions of the permits
related to mining operations. Allowable deductions shall include or agreements shall be a sufficient ground for cancellation of the
mining, milling and marketing expenses, depreciation or same.
properties directly used in the mining operations. This paragraph
shall not apply to expenditures for the acquisition or improvement Sec. 97 Non-payment of taxes and Fees. Failure to pay the taxes
of property of a character which is subject to the allowances for and fees due the Government for two (2) consecutive years shall
depreciation. cause the cancellation of the exploration permit, mineral
agreement, financial or technical assistance agreement and other
Sec. 94 Investment Guarantees. The contractor shall be entitled to agreements and the re-opening of the area subject thereof to new
the basic rights and guarantees provided in applicants.
the Constitution and such other rights recognized by the
government as enumerated hereunder. Sec. 98 Suspension or Cancellation of Tax Incentives and Credits.
Failure to abide by the terms and conditions of tax incentives and
(a) Repatriation of investments. The right to repatriate the entire credits shall cause the suspension or cancellation of said
proceeds of the liquidation of the foreign investment in the incentives and credits.
currency in which the investment was originally made and at the
exchange rate prevailing at the time of repatriation. Sec. 99 Falsehood or Omission of Facts in the Statement. All
statements made in the exploration permit, mining agreement
(b) Remittance of earnings. The right to remit earnings from the and financial or technical assistance shall be considered as
investment in the currency in which the foreign investment was conditions and essential parts thereof and any falsehood in said
originally made at the exchange rate prevailing at the time of statements or omission of facts therein which may alter, change or
remittance. affect substantially the facts set forth in said statements may
cause the revocation and termination of the exploration permit,
(c) Foreign loans and contracts. The right to remit at the exchange mining agreement and financial or technical assistance
rate prevailing at the time of remittance such sums as may be agreement.
necessary to meet the payments of interest and principal on
foreign loans and foreign obligations arising from financial or CHAPTER XVIII
technical assistance contracts. ORGANIZATIONAL AND INSTITUTIONAL ARRANGEMENT
Sec. 100 From Staff Bureau to Line Bureau. The Mines and (P5,000.00) or imprisonment not exceeding one (1) year, or both,
Geosciences Bureau is hereby transformed into a line bureau at the discretion of the court.
consistent with Section 9 of this Act: Provided, That under the
Mines and Geosciences Bureau shall be the necessary mines Sec. 108 Violation of the Terms and Conditions of the
regional, district and other pertinent offices - the number and Environmental Compliance Certificate. Any person who willfully
specific functions of which shall be provided in the implementing violates or grossly neglects to abide by the terms and conditions
rules and regulations of this Act. of the environmental compliance certificate issued to said person
and which causes environmental damage through pollution shall
CHAPTER XIX suffer the penalty of imprisonment of six (6) months to six (6)
PENAL PROVISIONS years or a fine of Fifty thousand pesos (P50,000.00) to Two
Hundered Thousand Pesos (P200,000.00), or both at the
Sec. 101 False Statements. Any person who knowingly presents discretion of the court.
any false application, declaration, or evidence to the Government
or publishes or causes to be published any prospectus or other Sec. 109 Illegal Obstruction to Government Officials. Any person
information containing any false statement relating to mines, who illegally prevents or obstructs the Secretary, the Director or
mining operations or mineral agreements, financial or technical any of their representatives in the performance of their duties
assistance agreements and permits shall, upon conviction, be under the provisions of this Act and of the regulations
penalized by a fine of not exceeding Ten Thousand Pesos promulgated hereunder shall be punished, upon conviction, by
(P10,000.00). the appropriate court, by a fine not exceeding Five thousand
pesos (P5,000.00) or by imprisonment not exceeding one (1) year,
Sec. 102 Illegal Exploration. Any person undertaking exploration or both, at the discretion of the court.
work without the necessary exploration permit shall, upon
conviction, be penalized by a fine of not exceeding Fifty thousand Sec. 110 Other Violations. Any other violation of this Act and its
pesos (P50,000.00). implementing rules and regulations shall constitute an offense
punishable with a fine not exceeding five thousand pesos
Sec. 103 Theft of Minerals. Any person extracting minerals and (P5,000.00).
disposing the same without a mining agreement, lease, permit,
license, or steals minerals or ores or the products thereof from Sec. 111 Fines. The Secretary is authorized to charge fines for late
mines or mills or processing plants shall, upon conviction, be or nonsubmission of reports in accordance with the implementing
imprisoned from six (6) months to six (6) years or pay a fine from rules and regulations of this Act
Ten thousand pesos (P10,000.00) to Twenty thousand pesos
(P20,000.00), or both, at the discretion of the appropriate court.
In addition, he shall be liable to pay damages and compensation REPUBLIC ACT NO. 7076: People's Small-scale Mining Act
for the minerals removed, extracted, and disposed of. In the case
of associations, partnerships, or corporations, the president and Sec. 2. Declaration of Policy. It is hereby declared of the State
each of the directors thereof shall be responsible for the acts to promote, develop, protect and rationalize viable small-scale
committed by such association, corporation, or partnership. mining activities in order to generate more employment
opportunities and provide an equitable sharing of the nation's
Sec. 104 Destruction of Mining Structures. Any person who wealth and natural resources, giving due regard to existing rights
willfully destroys or damages structures in or on the mining area as herein provided.
or on the mill sites shall, upon conviction, be imprisoned for a
period not to exceed five (5) years and shall, in addition, pay
Sec. 3. Definitions. For purposes of this Act, the following
compensation for the damages which may have been caused
terms shall be defined as follows:
thereby.

Sec. 105 Mines Arson. Any person who willfully sets fire to any (a) "Mineralized areas" refer to areas with naturally occurring
mineral stockpile, mine or workings, fittings or a mine, shall be mineral deposits of gold, silver, chromite, kaolin, silica, marble,
guilty of arson and shall be punished, upon conviction, by the gravel, clay and like mineral resources;
appropriate court in accordance with the provisions of the Revised
Penal Code and shall, in addition, pay compensation for the (b) "Small-scale mining" refers to mining activities which rely
damages caused thereby. heavily on manual labor using simple implement and methods and
do not use explosives or heavy mining equipment;
Sec. 106 Willful Damage to a Mine. Any person who willfully
damages a mine, unlawfully causes water to run into a mine, or (c) "Small-scale miners" refer to Filipino citizens who, individually
obstructs any shaft or passage to a mine, or renders useless, or in the company of other Filipino citizens, voluntarily form a
damages or destroys any machine, appliance, apparatus; rope, cooperative duly licensed by the Department of Environment and
chain, tackle, or any other things used in a mine, shall be Natural Resources to engage, under the terms and conditions of a
punished, upon conviction, by the appropriate court, by contract, in the extraction or removal of minerals or ore-bearing
imprisonment not exceeding a period of five (5) years and shall, in materials from the ground;
addition, pay compensation for the damages caused thereby.

Sec. 107 Illegal Obstruction to Permittees or Contractors. Any (d) "Small-scale mining contract" refers to co-production, joint
person who, without justifiable cause, prevents or obstructs the venture or mineral production sharing agreement between the
holder of any permit, agreement or lease from undertaking his State and a small-scale mining contractor for the small-scale
mining operations shall be punished, upon conviction by the utilization of a plot of mineral land;
appropriate court, by a fine not exceeding Five thousand pesos
(e) "Small-scale mining contractor" refers to an individual or a (d) The extension of technical and financial assistance, and other
cooperative of small-scale miners, registered with the Securities social services;
and Exchange Commission or other appropriate government
agency, which has entered into an agreement with the State for
(e) The extension of assistance in processing and marketing;
the small-scale utilization of a plot of mineral land within a
people's small-scale mining area;
(f) The generation of ancillary livelihood activities;
(f) "Active mining area" refers to areas under actual exploration,
development, exploitation or commercial production as (g) The regulation of the small-scale mining industry with the view
determined by the Secretary after the necessary field investigation to encourage growth and productivity; and
or verification including contiguous and geologically related areas
belonging to the same claimowner and/or under contract with an (h) The efficient collection of government revenue.
operator, but in no case to exceed the maximum area allowed by
law;
Sec. 5. Declaration of People's Small-scale Mining Areas. The
Board is hereby authorized to declare and set aside people's
(g) "Existing mining right" refers to perfected and subsisting claim, small-scale mining areas in sites onshore suitable for small-scale
lease, license or permit covering a mineralized area prior to its mining, subject to review by the Secretary, immediately giving
declaration as a people's small-scale mining area; priority to areas already occupied and actively mined by small-
scale miners before August 1, 1987: Provided, That such areas are
(h) "Claimowner" refers to a holder of an existing mining right; not considered as active mining areas: Provided, further, That the
minerals found therein are technically and commercially suitable
for small-scale mining activities: Provided, finally, That the areas
(i) "Processor" refers to a person issued a license to engage in the
are not covered by existing forest rights or reservations and have
treatment of minerals or ore-bearing materials such as by gravity
not been declared as tourist or marine reserved, parks and wildlife
concentration, leaching benefication, cyanidation, cutting, sizing,
reservations, unless their status as such is withdrawn by
polishing and other similar activities;
competent authority.

(j) "License" refers to the privilege granted to a person to Sec. 6. Future People's Small-scale Mining Areas. The following
legitimately pursue his occupation as a small-scale miner or lands, when suitable for small-scale mining, may be declared by
processor under this Act; the Board as people's small scale mining areas:
(a) Public lands not subject to any existing right; vi
(k) "Mining plan" refers to a two-year program of activities and
methodologies employed in the extraction and production of (b) Public lands covered by existing mining rights which are not
minerals or ore-bearing materials, including the financial plan and active mining areas; and
other resources in support thereof;
(c) Private lands, subject to certain rights and conditions, except
(l) "Director" refers to the regional executive director of the those with substantial improvements or in bona fide and regular
Department of Environment and Natural Resources; and use as a yard, stockyard, garden, plant nursery, plantation,
cemetery or burial site, or land situated within one hundred
meters (100 m.) from such cemetery or burial site, water reservoir
(m) "Secretary" refers to the Secretary of the Department of
or a separate parcel of land with an area of ten thousand square
Environment and Natural Resources.
meters (10,000 sq. m.) or less.

Sec. 4. People's Small-scale Mining Program. For the purpose


Sec. 7. Ancestral Lands. No ancestral land may be declared as a
of carrying out the declared policy provided in Section 2 hereof,
people's small-scale mining area without the prior consent of the
there is hereby established a People's Small-scale Mining Program
cultural communities concerned: Provided, That, if ancestral lands
to be implemented by the Secretary of the Department of
are declared as people's small-scale mining areas, the members of
Environment and Natural Resources, hereinafter called the
the cultural communities therein shall be given priority in the
Department, in coordination with other concerned government
awarding of small-scale mining contracts.
agencies, designed to achieve an orderly, systematic and rational
scheme for the small-scale development and utilization of mineral
Sec. 8. Registration of Small-scale Miners. All persons
resources in certain mineral areas in order to address the social,
undertaking small-scale mining activities shall register as miners
economic, technical, and environmental connected with small-
with the Board and may organize themselves into cooperatives in
scale mining activities.
order to qualify for the awarding of a people's small-scale mining
The People's Small-scale Mining Program shall include the
contract.
following features:
(a) The identification, segregation and reservation of certain
mineral lands as people's small-scale mining areas; Sec. 9. Award of People's Small-scale Mining Contracts. A
(b) The recognition of prior existing rights and productivity; people's small-scale mining contract may be awarded by the
Board to small-scale miners who have voluntarily organized and
have duly registered with the appropriate government agency as
(c) The encouragement of the formation of cooperatives;
an individual miner or cooperative; Provided, That only one (1)
people's small-scale mining contract may be awarded at any one
time to a small-scale mining operations within one (1) year from
the date of award: Provided, further, That priority shall be given or (d) Pay all taxes, royalties or government production share as are
city where the small-scale mining area is located. now or may hereafter be provided by law;

Applications for a contract shall be subject to a reasonable fee to (e) Comply with pertinent rules and regulations on environmental
be paid to the Department of Environment and Natural Resources protection and conservation, particularly those on tree-cutting
regional office having jurisdiction over the area. mineral-processing and pollution control;

Sec. 10. Extent of Contract Area. The Board shall determine the (f) File under oath at the end of each month a detailed production
reasonable size and shape of the contract area following the and financial report to the Board; and
meridional block system established under Presidential Decree
No. 463, as amended, otherwise known as the Mineral Resources
(g) Assume responsibility for the safety of persons working in the
Development Decree of 1974, but in no case shall the area exceed
mines.
twenty hectares (20 has.) per contractor and the depth or length
of the tunnel or adit not exceeding that recommended by the
director taking into account the following circumstances: Sec. 14. Rights of Claimowners. In case a site declared and set
aside as a people's-scale mining area is covered by an existing
mining right, the claimowner and the small-scale miners therein
(a) Size of membership and capitalization of the cooperative;
are encouraged to enter into a voluntary and acceptable
(b) Size of mineralized area;
contractual agreement with respect to the small-scale utilization
of the mineral values from the area under claim. In case of
(c) Quantity of mineral deposits; disagreement, the claimowner shall be entitled to the following
rights and privileges:
(a) Exemption from the performance of annual work obligations
(d) Safety of miners;
and payment of occupation fees, rental, and real property taxes;

(e) Environmental impact and other considerations; and (b) Subject to the approval of the Board, free access to the
contract area to conduct metallurgical tests, explorations and
(f) Other related circumstances. other activities, provided such activities do not unduly interfere
with the operations of the small-scale miners; and

Sec. 11. Easement Rights. Upon the declaration of a people's


small-scale mining area, the director, in consultation with the (c) Royalty equivalent to one and one half percent (1 1/2%) of the
operator, claimowner, landowner or lessor of an affected area, gross value of the metallic mineral output or one percent (1%) of
shall determine the right of the small scale miners to existing the gross value of the nonmetallic mineral output to be paid to
facilities such as mining and logging roads, private roads, port and the claimowner: Provided, That such rights and privileges shall be
communication facilities, processing plants which are necessary available only if he is not delinquent and other performance of his
for the effective implementation of the People's Small-scale annual work obligations and other requirements for the last two
Mining Program, subject to payment of reasonable fees to the (2) years prior to the effectivity of this Act.
operator, claimowner, landowner or lessor.
Sec. 15. Rights of Private Landowners. The private landowner
Sec. 12. Rights Under a People's Small-scale Mining Contract. A or lawful possessor shall be notified of any plan or petition to
people's small-scale mining contract entitles the small-scale declare his land as a people's small-scale mining area. Said
mining contractor to the right to mine, extract and dispose of landowner may oppose such plan or petition in an appropriate
mineral ores for commercial purposes. In no case shall a small- proceeding and hearing conducted before the Board.
scale mining contract be subcontracted, assigned or otherwise
transferred. If a private land is declared as a people's small-scale mining area,
the owner and the small-scale mining contractors are encouraged
Sec. 13. Terms and Conditions of the Contract. A contract shall to enter into a voluntary and acceptable contractual agreement
have a term of two (2) years, renewable subject to verification by for the small-scale utilization of the mineral values from the
the Board for like periods as long as the contractor complies with private land: Provided, That the owner shall in all cases be entitled
the provisions set forth in this Act, and confers upon the to the payment of actual damages which he may suffer as a result
contractor the right to mine within the contract area: Provided, of such declaration: Provided, further, That royalties paid to the
That the holder of a small-scale mining contract shall have the owner shall in no case exceed one percent (1%) of the gross value
following duties and obligations: of the minerals recovered as royalty.

(a) Undertake mining activities only in accordance with a mining Sec. 16. Ownership of Mill Tailings. The small-scale mining
plan duly approved by the Board; contractor shall be the owner of all mill tailings produced from the
(b) Abide by the Mines and Geosciences Bureau and the small- contract area. He may sell the tailings or have them processed in
scale Mining Safety Rules and Regulations; any custom mill in the area: Provided, That, if the small-scale
mining contractor decide to sell its mill tailings, the claimowner
shall have a preemptive right to purchase said mill tailings at the
(c) Comply with his obligations to the holder of an existing mining prevailing market price.
right;
Sec. 17. Sale of Gold. All gold produced by small-scale miners the fine imposed shall render the small-scale mining contractor
in any mineral area shall be sold to the Central Bank, or its duly ineligible for other small-scale mining contracts.
authorized representatives, which shall buy it at prices
competitive with those prevailing in the world market regardless
Sec. 22. Reversion of People's Small-scale Mining Areas. The
of volume or weight.
Secretary, upon recommendation of the director, shall withdraw
the status of the people's small-scale mining area when it can no
The Central Bank shall establish as many buying stations in gold- longer feasibly operated on a small-scale mining basis or when the
rush areas to fully service the requirements of the small-scale safety, health and environmental conditions warrant that the
minerals thereat. same shall revert to the State for proper disposition.

Sec. 18. Custom Mills. The establishment and operation of safe Sec. 23. Actual Occupation by Small-scale Miners. Small-scale
and efficient customs mills to process minerals or ore-bearing miners who have been in actual operation of mineral lands on or
materials shall be limited to mineral processing zones duly before August 1, 1987 as determined by the Board shall not be
designated by the local government unit concerned upon dispossessed, ejected or removed from said areas: Provided, That
recommendation of the Board. they comply with the provisions of this Act.

In mining areas where the private sector is unable to establish Sec. 24. Provincial/City Mining Regulatory Board. There is
custom mills, the Government shall construct such custom mills hereby created under the direct supervision and control of the
upon the recommendation of the Board based on the viability of Secretary a provincial/city mining regulatory board, herein called
the project. the Board, which shall be the implementing agency of the
Department, and shall exercise the following powers and
functions, subject to review by the Secretary:
The Board shall issue licenses for the operation of custom mills
and other processing plants subject to pollution control and safety
standards. (a) Declare and segregate existing gold-rush areas for small-scale
mining;
The Department shall establish assay laboratories to cross-check
(b) Reserve future gold and other mining areas for small-scale
the integrity of custom mills and to render metallurgical and
mining;
laboratory services to mines.

(c) Award contracts to small-scale miners;


Custom mills shall be constituted as withholding agents for the
royalties, production share or other taxes due the Government.
(d) Formulate and implement rules and regulations related to
small-scale mining;
Sec. 19. Government Share and Allotment. The revenue to be
derived by the Government from the operation of the mining
program herein established shall be subject to the sharing (e) Settle disputes, conflicts or litigations over conflicting claims
provided in the Local Government Code. within a people's small-scale mining area, an area that is declared
a small-mining; and
Sec. 20. People's Small-scale Mining Protection Fund. There is
hereby created a People's Small-scale Mining Protection Fund (f) Perform such other functions as may be necessary to achieve
which shall be fifteen percent (15%) of the national government's the goals and objectives of this Act.
share due the Government which shall be used primarily for
information dissemination and training of small-scale miners on
Sec. 25. Composition of the Provincial/City Mining Regulatory
safety, health and environmental protection, and the
Board. The Board shall be composed of the Department of
establishment of mine rescue and recovery teams including the
Environment and Natural Resources representative as Chairman;
procurement of rescue equipment necessary in cases of
and the representative of the governor or city mayor, as the
emergencies such as landslides, tunnel collapse, or the like.
representative of the governor or city mayor, as the case may be,
one (1) small scale mining representative, one (1) big-scale mining
The fund shall also be made available to address the needs of the representative, and the representative from a nongovernment
small-scale miners brought about by accidents and/or fortuitous organization who shall come from an environmental group, as
events. members.

The representatives from the private sector shall be nominated by


Sec. 21. Rescission of Contracts and Administrative Fines. The
their respective organizations and appointed by the Department
noncompliance with the terms and conditions of the contract or
regional director. The Department shall provide the staff support
violation of the rules and regulations issued by the Secretary
to the Board.
pursuant to this Act, as well as the abandonment of the mining
site by the contractor, shall constitute a ground for the
cancellation of the contracts and the ejectment from the people's Sec. 26. Administrative Supervision over the People's Small-scale
small-scale mining area of the contractor. In addition, the Mining Program. The Secretary through his representative shall
Secretary may impose fines against the violator in an amount of exercise direct supervision and control over the program and
not less than Twenty thousand pesos (P20,000.00) and not more activities of the small-scale miners within the people's small-scale
than One hundred thousand pesos (P100,000.00). Nonpayment of mining area.
The Secretary shall within ninety (90) days from the effectivity of 1. Whether or not the Philippine Mining Act is
this Act promulgate rules and regulations to effectively implement unconstitutional for allowing fully foreign-owned
the provisions of the same. Priority shall be given to such rules corporations to exploit Philippine mineral resources
and regulations that will ensure the least disruption in the
operations of the small-scale miners. 2. Whether or not the FTAA between the government and
WMCP is a service contract that permits fully foreign
owned companies to exploit Philippine mineral
Sec. 27. Penal Sanctions. Violations of the provisions of this Act
resources
or of the rules and regulations issued pursuant hereto shall be
penalized with imprisonment of not less than six (6) months nor
3. Whether the Court has a role in the exercise of the
more than six (6) years and shall include the confiscation and
power of control over the EDU of our natural resources
seizure of equipment, tools and instruments.
HELD:

1) RA 7942 or the Philippine Mining Act of 1995 is


Cases unconstitutional for permitting fully foreign owned
corporations to exploit Philippine natural resources.

La Bugal Blaan Tribal Association Inc., et al. V. Victor O. Ramos, Article XII Section 2 of the 1987 Constitution retained the Regalian
Secretary Department of Environment and Natural Resources; doctrine which states that All lands of the public domain, waters,
Horacio Ramos, Director, Mines and Geosciences Bureau (MGB- minerals, coal, petroleum, and other minerals, coal, petroleum,
DENR); and other mineral oils, all forces of potential energy, fisheries,
forests or timber, wildlife, flora and fauna, and other natural
The constitutional provision allowing the President to enter into resources are owned by the State. The same section also states
FTAAs is an exception to the rule that participation in the nations that, exploration and development and utilization of natural
natural resources is reserved exclusively to Filipinos. Provision resources shall be under the full control and supervision of the
must be construed strictly against their enjoyment by non- State.
Filipinos.
Conspicuously absent in Section 2 is the provision in the 1935 and
RA 7942 (The Philippine Mining Act) took effect on April 9, 1995. 1973 Constitutions authorizing the State to grant licenses,
Before the effectivity of RA 7942, or on March 30, 1995, the concessions, or leases for the exploration, exploitation,
President signed a Financial and Technical Assistance Agreement development or utilization of natural resources. Y such omission,
(FTAA) with WMCP, a corporation organized under Philippine laws, the utilization of inalienable lands of public domain through
covering close to 100, 000 hectares of land in South Cotabato, license, concession or lease is no longer allowed under the 1987
Sultan Kudarat, Davao del Sur and North Cotabato. On August 15, Constitution.
1995, the Environment Secretary Victor Ramos issued DENR
Administrative Order 95-23, which was later repealed by DENR Under the concession system, the concessionaire makes a direct
Administrative Order 96-40, adopted on December 20, 1996. equity investment for the purpose of exploiting a particular
natural resource within a given area. The concession amounts to
Petitioners prayed that RA 7942, its implementing rules, and the complete control by the concessionaire over the countrys natural
FTAA between the government and WMCP be declared resource, for it is given exclusive and plenary rights to exploit a
unconstitutional on ground that they allow fully foreign owned particular resource at the point of extraction.
corporations like WMCP to exploit, explore and develop Philippine
mineral resources in contravention of Article XII Section 2 The 1987 Constitution, moreover, has deleted the phrase
paragraphs 2 and 4 of the Charter. management or other forms of assistance in the 1973 Charter.
The present Constitution now allows only technical and financial
In January 2001, MMC a publicly listed Australian mining and assistance. The management or operation of mining activities by
exploration company sold its whole stake in WMCP to Sagittarius foreign contractors, the primary feature of service contracts was
Mines, 60% of which is owned by Filipinos while 40% of which is precisely the evil the drafters of the 1987 Constitution sought to
owned by Indophil Resources, an Australian company. DENR avoid.
approved the transfer and registration of the FTAA in Sagittarius
name but Lepanto Consolidated assailed the same. The latter case The constitutional provision allowing the President to enter into
is still pending before the Court of Appeals. FTAAs is an exception to the rule that participation in the nations
natural resources is reserved exclusively to Filipinos. Accordingly
EO 279, issued by former President Aquino on July 25, 1987, such provision must be construed strictly against their enjoyment
authorizes the DENR to accept, consider and evaluate proposals by non-Filipinos. Therefore RA 7942 is invalid insofar as said act
from foreign owned corporations or foreign investors for contracts authorizes service contracts. Although the statute employs the
or agreements involving either technical or financial assistance for phrase financial and technical agreements in accordance with
large scale exploration, development and utilization of minerals the 1987 Constitution, its pertinent provisions actually treat these
which upon appropriate recommendation of the (DENR) Secretary, agreements as service contracts that grant beneficial ownership to
the president may execute with foreign proponent. WMCP foreign contractors contrary to the fundamental law.
likewise contended that the annulment of the FTAA would violate
a treaty between the Philippines and Australia which provides for The underlying assumption in the provisions of the law is that the
the protection of Australian investments. foreign contractor manages the mineral resources just like the
foreign contractor in a service contract. By allowing foreign
ISSUES: contractors to manage or operate all the aspects of the mining
operation, RA 7942 has in effect conveyed beneficial ownership groups to eradicate the grinding poverty of our people and answer
over the nations mineral resources to these contractors, leaving their cry for viable employment opportunities in the country. The
the State with nothing but bare title thereto. judiciary is loath to interfere with the due exercise by coequal
branches of government of their official functions. As aptly
The same provisions, whether by design or inadvertence, permit a spelled out seven decades ago by Justice George Malcolm, Just as
circumvention of the constitutionally ordained 60-40% the Supreme Court, as the guardian of constitutional rights,
capitalization requirement for corporations or associations should not sanction usurpations by any other department of
engaged in the exploitation, development and utilization of government, so should it as strictly confine its own sphere of
Philippine natural resources. influence to the powers expressly or by implication conferred on it
by the Organic Act. Let the development of the mining industry
When parts of a statute are so mutually dependent and connected be the responsibility of the political branches of government. And
as conditions, considerations, inducements or compensations for let not the Court interfere inordinately and unnecessarily. The
each other as to warrant a belief that the legislature intended Constitution of the Philippines is the supreme law of the land. It is
them as a whole, then if some parts are unconstitutional, all the repository of all the aspirations and hopes of all the people.
provisions that are thus dependent, conditional or connected
must fall with them. The Constitution should be read in broad, life-giving strokes. It
should not be used to strangulate economic growth or to serve
Under Article XII Section 2 of the 1987 Charter, foreign owned narrow, parochial interests. Rather, it should be construed to grant
corporations are limited only to merely technical or financial the President and Congress sufficient discretion and reasonable
assistance to the State for large scale exploration, development leeway to enable them to attract foreign investments and
and utilization of minerals, petroleum and other mineral oils. expertise, as well as to secure for our people and our posterity the
blessings of prosperity and peace. The Court fully sympathize with
the plight of La Bugal Blaan and other tribal groups, and
2) The FTAA between WMCP and the Philippine government is commend their efforts to uplift their communities. However, the
likewise unconstitutional since the agreement itself is a Court cannot justify the invalidation of an otherwise constitutional
service contract. statute along with its implementing rules, or the nullification of an
otherwise legal and binding FTAA contract. The Court believes that
Section 1.3 of the FTAA grants WMCP, a fully foreign owned it is not unconstitutional to allow a wide degree of discretion to
corporation, the exclusive right to explore, exploit, utilize and the Chief Executive, given the nature and complexity of such
dispose of all minerals and by-products that may be produced agreements, the humongous amounts of capital and financing
from the contract area. Section 1.2 of the same agreement required for large-scale mining operations, the complicated
provides that WMCP shall provide all financing, technology, technology needed, and the intricacies of international trade,
management, and personnel necessary for the Mining coupled with the States need to maintain flexibility in its dealings,
Operations. in order to preserve and enhance our countrys competitiveness in
world markets. On the basis of this control standard, the Court
These contractual stipulations and related provisions in the FTAA upholds the constitutionality of the Philippine Mining Law, its
taken together, grant WMCP beneficial ownership over natural Implementing Rules and Regulations -- insofar as they relate to
resources that properly belong to the State and are intended for financial and technical agreements -- as well as the subject
the benefit of its citizens. These stipulations are abhorrent to the Financial and Technical Assistance Agreement
1987 Constitution. They are precisely the vices that the
fundamental law seeks to avoid, the evils that it aims to suppress.
Consequently, the contract from which they spring must be struck
down. Separate Opinion of Justice Panganiban

3) The Chief Executive is the official constitutionally mandated The FTAA is now to be implemented by a Filipino corporation,
to enter into agreements with foreign owned corporations. therefore the Court can no longer declare it unconstitutional. The
On the other hand, Congress may review the action of the CA case is a dispute between two Filipino corporations (Sagittarius
President once it is notified of every contract entered into and Lepanto) both claiming the right to purchase the foreign
in accordance with this [constitutional] provision within shares in WMCP. Regardless of which side eventually prevails, the
thirty days from its execution. In contrast to this express FTAA would still be in the hands of a qualified Filipino firm. The
mandate of the President and Congress in the exploration, present Constitution, moreover, does not limit foreign
development and utilization (EDU) of natural resources, participation in the exploration, development and utilization of
Article XII of the Constitution is silent on the role of the minerals, petroleum and mineral oils to financial or technical
judiciary. However, should the President and/or Congress assistance. The drafters choice of words and excerpts from
gravely abuse their discretion in this regard, the courts may deliberations of the Constitutional Commission reveal that the
-- in a proper case -- exercise their residual duty under present Charter did not limit to financial or technical assistance
Article VIII. Clearly then, the judiciary should not inordinately the participation of foreign corporations in the large-scale
interfere in the exercise of this presidential power of control exploration, development, and utilization of minerals, petroleum
over the EDU of our natural resources. and mineral oils.
The drafters use of the phrase agreements xxx involving xxx
technical or financial assistance in Article XII Section 2 of the
Under the doctrine of separation of powers and due respect for
1987 Charter does not absolutely show intent to exclude other
co-equal and coordinate branches of government, the Court must
modes of assistance. Rather the phrase signifies the possibility of
restrain itself from intruding into policy matters and must allow
the inclusion of other activities, provided they bear some
the President and Congress maximum discretion in using the
reasonable relationship to and compatibility with financial or
resources of our country and in securing the assistance of foreign
technical assistance. If the drafters intended to strictly confine
foreign corporations to financial or technical assistance only, they that the BMG Director, under Section 99 of the Consolidated
would have employed restrictive or stringent language. Mines Administrative Order implementing Presidential Decree No.
463, was authorized to issue exploration permits and to renew the
Excerpts from then deliberations of the Constitutional Commission same without limit. The validity of Ex loration Permit No. 133 was
likewise show that its members discussed technical or financial reiterated and all the adverse claims against MPSAA No.128 are
assistance agreements in the same breath as service contracts DISMISSED.
and used the terms interchangeably. The members of the Concom
actually had in mind the Marcos-era service contracts that they Undaunted by the PA ruling, the adverse claimants appealed to
were more familiar with (but which they duly modified and the Mines Adjudication Board. In aDecision, the MAB considered
restricted so as to prevent present abuses), when they were erroneous the dismissal by the PA of the adverse claims filed
crafting and polishing the provisions dealing with financial and/or againstMMC and SEM over a mere technicality of failure to submit
technical assistance agreements. a sketch plan. It argued that the rules of procedure are not meant
to defeat substantial justice as the former are merely secondary in
The Concom discussions in their entirely had to do with service importance to the latter. Dealing with the question on EP 133s
contracts that might be given to foreign-owned corporations as validity, the MAB opined that said issue was not crucial and was
exceptions to the general principle of Filipino control of the irrelevant in adjudicating the appealed case because EP 133 has
economy long expired due to its non-renewal and that the holder of the
same, MMC, was no longer a claimant of the Agusan-Davao-
Surigao Forest Reserve having relinquished its right to SEM. After
APEX MINING CO., INC. vs. SOUTHEAST MINDANAO GOLD it brushed aside the issue of the validity of EP133 for being
MINING CORP irrelevant, the MAB proceeded to treat SEMs MPSA application
over the disputed area asan entirely new and distinct application.
Proclamation No. 369 was issued to establish the Agusan-Davao- It approved the MPSA application, excluding the area
Surigao Forest Reserve.Camilo Banad and his group, who claimed segregated by DAO No. 66, which declared 729 hectares within
to have first discovered traces of gold in Mount Diwata, filed the Diwalwal area as non-forest lands open for small-scale mining.
aDeclaration of Location for six mining claims in the
area. Apex Mining Corporation entered intooperating agreements Dissatisfied, the Villaflor group and Balite appealed the decision to
with Banad and his group.Marcopper Mining Corporation filed this Court. SEM, aggrieved by the exclusion of 729 hectares from
mining claims for areas adjacent to the area covered by the DOL its MPSA application, likewise appealed. Apex filed a Motion for
of Banad and his group. MMC abandoned the claims and instead Leave to Admit Petition for Intervention predicated on its right to
applied for a prospecting permit with theBureau of Forest stake its claim over the Diwalwal gold rush which was granted by
Development. BFD issued a Prospecting Permit to MMC covering the Court. These cases, however, were remanded to the Court of
an area within theforest reserve under Proclamation No. 369. The Appeals for proper disposition pursuant to Rule 43 of the 1997
permit embraced the areas claimed by Apex and the Rules of Civil Procedure. The Court of Appeals consolidated the
other individual mining claimants. MMC filed before the BMG a remanded cases as CA-G.R. SP No. 61215 and No. 61216.The Court
Petition for the Cancellation of the MiningClaims of Apex and of Appeals affirmed in toto the decision of the PA and declared
Small Scale Mining Permits. null and void the MAB decision. Hence, the instant Petitions for
Review on Certiorari under Rule 45 of the Rules of Court
MMC alleged that the areas covered by its EP 133 and the mining filed by Apex, Balite and MAB. During the pendency of these
claims of Apex were within an established and existing forest Petitions, President Gloria Macapagal-Arroyo issued Proclamation
reservation. Apex filed a motion to dismiss MMCs petition No. 297.This proclamation excluded an area of 8,100 hectares
alleging that its mining claims are not within any established or located in Monkayo, Compostela Valley, and proclaimed the same
proclaimed forest reserve, and as such, the acquisition of mining as mineral reservation and as environmentally critical area.
rights thereto must be undertaken via registration of DOL with the Subsequently, DENR Administrative Order No. 2002-18 was issued
BMG and not through the filing of application for permit declaring an emergency situation in the Diwalwal gold rush area
to prospect with the BFD. However, Supreme Court rendered a and ordering the stoppage of all mining operations therein.
Decision against Apex holding that the disputed area is a forest Thereafter, Executive Order No. 217was issued by the President
reserve; hence, the proper procedure in acquiring mining rights creating the National Task Force Diwalwal which is tasked to
therein is by initially applying for a permit to prospect with the address the situation in the Diwalwal Gold Rush Area.
BFD and not through a registration of DOL with the BMG. DENR
issued Department Administrative Order No. 66 declaring areas Issue
covered by the Agusan-Davao-Surigao Forest Reserve as non-
forest lands and open to small-scale mining purposes. Whether the subsequent acts of the executive department such as
the issuance of Proclamation No. 297,and DAO No. 2002-18 can
A portion of thecontested area open to small scale miners, several outweigh Apex and Balites claims over the Diwalwal Gold Rush
mining entities filed applications for Mineral Production Sharing Area.
Agreement. Monkayo Integrated Small Scale Miners Association
(MISSMA) filed an MPSA application which was denied by the Held
BMG on the grounds that the area applied for is within the area
covered by MMC EP 133and that the MISSMA was not qualified to Upon the effectivity of the 1987 Constitution, the State assumed a
apply for an MPSA.MMC assigned EP 133 to Southeast Mindanao more dynamic role in the exploration,development and utilization
Gold Mining Corporation. BMG accepted and registered SEMs of the natural resources of the country. With this policy, the State
MPSA application and the Deed of Assignment over EP 133 may pursuefull control and supervision of the exploration,
executed in its favor by MMC.SEMs application was designated development and utilization of the countrys naturalmineral
MPSA Application No. 128 (MPSAA 128).The PA rendered a resources. The options open to the State are through direct
resolution that EP 133 was valid and subsisting. It also declared undertaking or by entering into co- production, joint venture, or
production-sharing agreements, or by entering into agreement
with foreign-owned corporations for large-scale exploration, In P.D. 1067 (Philippines Water Code), the additional element to
development and utilization. Recognizing the importance of the be established is the dumping of mine tailings into the Makulapnit
countrys natural resources, not only for national economic River and the entire Boac River System without prior permit from
development, but also for its security and national defense, the authorities concerned. The gravamen of the offense here is
Section 5 of Republic Act No. 7942 empowers the President, when the absence of the proper permit to dump said mine tailings. This
the national interest so requires, to establish mineral reservations element is not indispensable in the prosecution for violation of PD
where mining operations shall be undertaken directly by the State 984 (Anti-Pollution Law), [RA] 7942 (Philippine Mining Act) and
or through a contractor Art. 365 of the Revised Penal Code. One can be validly prosecuted
for violating the Water Code even in the absence of actual
pollution, or even if it has complied with the terms of its
Loney vs. People of the Philippines Environmental Compliance Certificate, or further, even if it did
take the necessary precautions to prevent damage to property.
Petitioners are officers of Marcopper Mining Corp., engaged in
mining in the province of Marinduque. Marcopper had been In P.D. 984 (Anti-Pollution Law), the additional fact that must be
storing tailings from its operation in a pit in Mt. Taipan, at the base proved is the existence of actual pollution. The gravamen is the
of which ran a drainage leading to Boac and Makalupnit rivers. pollution itself. In the absence of any pollution, the accused must
Consequently, Marcopper had discharged millions of tons of be exonerated under this law although there was unauthorized
tailings into the rivers. dumping of mine tailings or lack of precaution on its part to
prevent damage to property.
In August 1996, the DOJ charged petitioners with violation of the
In R.A. 7942 (Philippine Mining Act), the additional fact that must
Water Code of the Philippines, the National Pollution Control
be established is the willful violation and gross neglect on the part
Decree, Philippine Mining Act and RPC for Reckless Imprudence
of the accused to abide by the terms and conditions of the
Resulting in Damage to Property. Petitioners moved to quash the
Environmental Compliance Certificate, particularly that the
information on grounds that these were duplicitous as DOJ
Marcopper should ensure the containment of run-off and silt
charged more than one offense for a single act and that the
materials from reaching the Mogpog and Boac Rivers. If there was
Informations contain allegations which constitute legal excuse or
no violation or neglect, and that the accused satisfactorily proved
justification.
[sic] that Marcopper had done everything to ensure containment
of the run-off and silt materials, they will not be liable. It does not
The MTC ruled that as far as the 3 laws are concerned, only the follow, however, that they cannot be prosecuted under the Water
Information for violation of Philippine Mining Act should be Code, Anti-Pollution Law and the Revised Penal Code because
maintained. Thus, the Informations for violation of Anti-Pollution violation of the Environmental Compliance Certificate is not an
Law and the Water Code should be dismissed because the essential element of these laws.
elements constituting the aforesaid violations are absorbed by the
same elements which constitute violation of the Philippine Mining On the other hand, the additional element that must be
Act. The RTC reversed the said decision and ruled that there can established in Art. 365 of the Revised Penal Code is the lack of
be no absorption by one offense of the three other offenses, as necessary or adequate precaution, negligence, recklessness and
the acts penalized by these laws are separate and distinct from imprudence on the part of the accused to prevent damage to
each other. This was affirmed by the CA. property. This element is not required under the previous laws.
Unquestionably, it is different from dumping of mine tailings
Petitioners contend that they should be charged with only one without permit, or causing pollution to the Boac river system,
offense Reckless Imprudence Resulting in Damage to Property much more from violation or neglect to abide by the terms of the
because all the charges filed against them are based on a single Environmental Compliance Certificate. Moreover, the offenses
act or incident of polluting the Boac and Makalupnit rivers thru punished by special law are mal[a] prohibita in contrast with those
dumping of mine tailings" and that the charge for violation of punished by the Revised Penal Code which are mala in se.29
Article 365 of the RPC "absorbs" the other charges since the Consequently, the filing of the multiple charges against
element of "lack of necessary or adequate protection, negligence, petitioners, although based on the same incident, is consistent
recklessness and imprudence" is common among them. with settled doctrine.

On petitioners claim that the charge for violation of Article 365 of


Ruling the RPC absorbs the charges for violation of PD 1067, PD 984, and
RA 7942, suffice it to say that a mala in se felony (such as Reckless
Court had ruled that a single act or incident might offend against Imprudence Resulting in Damage to Property) cannot absorb mala
two or more entirely distinct and unrelated provisions of law thus prohibita crimes (such as those violating PD 1067, PD 984, and RA
justifying the prosecution of the accused for more than one 7942). What makes the former a felony is criminal intent (dolo) or
offense. The only limit to this rule is the Constitutional prohibition negligence (culpa); what makes the latter crimes are the special
that no person shall be twice put in jeopardy of punishment for laws enacting them.
the same offense.
Petitioners reiterate their contention in the Court of Appeals that
However, for the limited purpose of controverting petitioners their prosecution contravenes this Courts ruling in People v.
claim that they should be charged with one offense only, the SC Relova. In particular, petitioners cite the Courts statement in
quote with approval RTCs comparative analysis of PD 1067, PD Relova that the law seeks to prevent harassment of the accused
984, RA 7942, and Article 365 of the RPC showing that in each of by "multiple prosecutions for offenses which though different
these laws on which petitioners were charged, there is one from one another are nonetheless each constituted by a common
essential element not required of the others, thus: set or overlapping sets of technical elements."
This contention is also without merit. Relova is no authority for
petitioners claim against multiple prosecutions based on a single
act not only because the question of double jeopardy is not at
issue here, but also because, as the Court of Appeals held,
petitioners are being prosecuted for an act or incident punished
by four national statutes and not by an ordinance and a national
statute. In short, petitioners, if ever, fall under the first sentence of
Section 21, Article III which prohibits multiple prosecution for the
same offense, and not, as in Relova, for offenses arising from the
same incident.

PD No. 705 : Revised Forestry Code of the Philippines


WHEREAS, proper classification, management and utilization of (f) Mineral lands refer to those lands of the public domain which
the lands of the public domain to maximize their productivity to have been classified as such by the Secretary of Natural Resources
meet the demands of our increasing population is urgently in accordance with prescribed and approved criteria, guidelines
needed; and procedure.

WHEREAS, to achieve the above purpose, it is necessary to (g) Forest reservations refer to forest lands which have been
reassess the multiple uses of forest lands and resources before reserved by the President of the Philippines for any specific
allowing any utilization thereof to optimize the benefits that can purpose or purposes.
be derived therefrom;
(h) National park refers to a forest land reservation essentially of
WHEREAS, it is also imperative to place emphasis not only on the primitive or wilderness character which has been withdrawn from
utilization thereof but more so on the protection, rehabilitation settlement or occupancy and set aside as such exclusively to
and development of forest lands, in order to ensure the continuity preserve the scenery, the natural and historic objects and the wild
of their productive condition; animals or plants therein, and to provide enjoyment of these
features in such a manner as will leave them unimpaired for
future generations.
WHEREAS, the present laws and regulations governing forest lands
are not responsive enough to support re-oriented government
programs, projects and efforts on the proper classification and (i) Game refuge or bird sanctuary refers to a forest land
delimitation of the lands of the public domain, and the designated for the protection of game animals, birds and fish and
management, utilization, protection, rehabilitation, and closed to hunting and fishing in order that the excess population
development of forest lands; may flow and restock surrounding areas.

Section 2. Policies. The State hereby adopts the following policies: (j) Marine parks refers to any off-shore area inhabited by rare and
unique species of marine flora and fauna.
(a) The multiple uses of forest lands shall be oriented to the
development and progress requirements of the country, the (k) Seashore park refers to any public shore area delimited for
advancement of science and technology, and the public welfare; outdoor recreation, sports fishing, water skiing and related
healthful activities.
(b) Land classification and survey shall be systematized and
hastened; (l) Watershed reservation is a forest land reservation established
to protect or improve the conditions of the water yield thereof or
reduce sedimentation.
(c) The establishment of wood-processing plants shall be
encouraged and rationalized; and
(m) Watershed is a land area drained by a stream or fixed body of
water and its tributaries having a common outlet for surface run-
(d) The protection, development and rehabilitation of forest lands
off.
shall be emphasized so as to ensure their continuity in productive
condition.
(n) Critical watershed is a drainage area of a river system
supporting existing and proposed hydro-electric power and
Section 3. Definitions.
irrigation works needing immediate rehabilitation as it is being
subjected to a fast denudation causing accelerated erosion and
(a) Public forest is the mass of lands of the public domain which destructive floods. It is closed from logging until it is fully
has not been the subject of the present system of classification for rehabilitated.
the determination of which lands are needed for forest purposes
and which are not.
(o) Mangrove is a term applied to the type of forest occurring on
tidal flat along the sea coast, extending along streams where the
(b) Permanent forest or forest reserves refer to those lands of the water is brackish.
public domain which have been the subject of the present system
of classification and determined to be needed for forest purposes.
(p) Kaingin is a portion of the forest land, whether occupied or
not, which is subjected to shifting and/or permanent slash-and-
(c) Alienable and disposable lands refer to those lands of the burn cultivation having little or no provision to prevent soil
public domain which have been the subject of the present system erosion.
of classification and declared as not needed for forest purposes.
(q) Forest product means timber, pulpwood, firewood, bark, tree
(d) Forest lands include the public forest, the permanent forest or top, resin, gum, wood, oil, honey, beeswax, nipa, rattan, or other
forest reserves, and forest reservations. forest growth such as grass, shrub, and flowering plant, the
associated water, fish, game, scenic, historical, recreational and
(e) Grazing land refers to that portion of the public domain which geologic resources in forest lands.
has been set aside, in view of the suitability of its topography and
vegetation, for the raising of livestock. (r) Dipterocarp forest is a forest dominated by trees of the
dipterocarp species, such as red lauan, tengile, tiaong, white
lauan, almon, bagtikan and mayapis of the Philippine mahogany obligation to develop, protect and rehabilitate the same in
group, apitong and the yakals. accordance with the terms and conditions set forth in said
agreement.
(s) Pine forest is a forest composed of the Benguet Pine in the
Mountain Provinces or the Mindoro pine in Mindoro and (ee) Permit is a short-term privilege or authority granted by the
Zambales provinces. State to a person to utilize any limited forest resources or
undertake a limited activity with any forest land without any right
of occupation and possession therein.
(t) Industrial tree plantation is any tract of forest land purposely
and extensively planted to timber crops primarily to supply the
raw material requirements of existing or proposed processing (ff) Annual allowable cut is the volume of materials, whether of
plants and related industries. wood or other forest products, that is authorized to be cut
regularly from the forest.
(u) Tree farm refers to any tract of forest land purposely and
extensively planted to trees of economic value for their fruits, (gg) Cutting cycle is the number of years between major harvests
flowers, leaves, barks, or extractives, but not for the wood thereof. in the same working unit and/or region, within a rotation.

(v) Multiple-use is the harmonized utilization of the numerous (hh) Ecosystem means the ecological community considered
beneficial uses of the land, soil, water, wildlife, recreation value, together with non-living factors and its environment as a unit.
grass and timber of forest lands.
(ii) Silviculture is the establishment, development reproduction
(w) Selective logging means the systematic removal of the mature, and care of forest trees.
over-mature and defective trees in such manner as to leave
adequate number and volume of healthy residual trees of the
(jj) Rationalization is the organization of a business or industry
desired species necessary to assure a future crop of timber, and
using scientific business management principles and simplified
forest cover for the protection and conservation of soil and water.
procedures to obtain greater efficiency of operation.

(x) Seed tree system is partial clearcutting with seed trees left to
(kk) Forest officer means any official or employee of the Bureau
regenerate the area.
who, by the nature of his appointment or the function of the
position to which he is appointed, is delegated by law or by
(y) Healthy residual is a sound or slightly injured tree of the competent authority to execute, implement or enforce the
commercial species left after logging. provisions of this Code, other related laws, as well as their
implementing regulations.
(z) Sustained-yield management implies continuous or periodic
production of forest products in a working unit with the aid of (ll) Primitive tribe is a group of endemic tribe living primitively as a
achieving at the earliest practicable time an approximate balance distinct portion of a people from a common ancestor.
between growth and harvest or use. This is generally applied to
the commercial timber resources and is also applicable to the
(mm) Private right means or refers to titled rights of ownership
water, grass, wildlife, and other renewable resources of the forest.
under existing laws, and in the case of primitive tribes, to rights of
possession existing at the time a license is granted under this
(aa) Processing plant is any mechanical set-up, machine or Code, which possession may include places of abode and worship,
combination of machine used for the processing of logs and other burial grounds, and old clearings, but excludes production forest
forest raw materials into lumber, veneer, plywood, wallboard, inclusive of logged-over areas, commercial forests and established
block-board, paper board, pulp, paper or other finished wood plantations of forest trees and trees of economic value.
products.
(nn) Person includes natural as well as juridical person.
(bb) Lease is a privilege granted by the State to a person to occupy
and possess, in consideration of a specified rental, any forest land
CHAPTER I
of the public domain in order to undertake any authorized activity
ORGANIZATION AND JURISDICTION OF THE BUREAU
therein.

Section 4. Creation of, and merger of all forestry agencies into, the
(cc) License is a privilege granted by the State to a person to utilize
Bureau of Forest Development. For the purpose of implementing
forest resources as in any forest land, without any right of
the provisions of this Code, the Bureau of Forestry, the
occupation and possession over the same, to the exclusion of
Reforestation Administration, the Southern Cebu Reforestation
others, or establish and operate a wood-processing plant, or
Development Project, and the Parks and Wildlife Office, including
conduct any activity involving the utilization of any forest
applicable appropriations, records, equipment, property and such
resources.
personnel as may be necessary, are hereby merged into a single
agency to be known as the Bureau of Forest Development,
(dd) License agreement is a privilege granted by the State to a hereinafter referred to as the Bureau.
person to utilize forest resources within any forest land with the
right of possession and occupation thereof to the exclusion of
others, except the government, but with the corresponding
Section 5. Jurisdiction of Bureau. The Bureau shall have shall be deemed to have declined the appointment, in which case
jurisdiction and authority over all forest land, grazing lands, and all the position may be filed by any other qualified applicant.
forest reservations including watershed reservations presently
administered by other government agencies or instrumentalities.
For the efficient and effective implementation of the program of
the Bureau, the following divisions and sections are hereby
It shall be responsible for the protection, development, created, to wit:
management, regeneration, and reforestation of forest lands; the
regulation and supervision of the operation of licensees, lessees
The Department Head may, upon recommendation of the
and permittees for the taking or use of forest products therefrom
Director, reorganize or create such other divisions, sections of
or the occupancy or use thereof; the implementation of multiple
units as may be deemed necessary and to appoint the personnel
use and sustained yield management in forest lands; the
there: Provided, That an employee appointed or designated as
protection, development and preservation of national parks,
officer-in-charge of a newly created division, section or unit, or to
marine parks, game refuges and wildlife; the implementation of
an existing vacant position with a higher salary, shall receive, from
measures and programs to prevent kaingin and managed
the date of such appointment or designation until he is replaced
occupancy of forest and grazing lands; in collaboration with other
or reverted to his original position, the salary corresponding to the
bureaus, the effective, efficient and economic classification of
position temporarily held by him.
lands of the public domain; and the enforcement of forestry,
reforestation, parks, game and wildlife laws, rules, and
regulations. There shall be created at least eleven regional offices. In each
region, there shall be as many forest districts as may be necessary,
in accordance with the extent of forest area, established work
The Bureau shall regulate the establishment and operation of
loads, need for forest protection, fire prevention and other
sawmills, veneer and plywood mills and other wood processing
factors, the provisions of any law to the contrary notwithstanding:
plants and conduct studies of domestic and world markets of
Provided, That the boundaries of such districts shall follow,
forest products.
whenever possible, natural boundaries of watersheds under the
river-basin concept of management.
Section 6. Director and Assistant Director and their
qualifications. The Bureau shall be headed by a Director, who shall
Section 11. Manpower Development. The Bureau shall establish
be assisted by one or more Assistant Directors. The Director and
and operate an in-service training center for the purpose of
Assistant Directors shall be appointed by the President.
upgrading and training its personnel and new employees.

No person shall be appointed Director or Assistant Director of the


The Bureau shall also set aside adequate funds to enable
Bureau unless he is a natural born citizen of the Philippines, at
personnel to obtain special education and training in local or
least 30 years of age, a holder of at least a Bachelor's Degree in
foreign colleges or institutions.
Forestry or its equivalent, and a registered forester.

Section 12. Performance Evaluation. The Bureau shall devise a


Section 7. Supervision and Control. The Bureau shall be directly
system, to be approved by the Department Head, to evaluate the
under the control and supervision of the Secretary of the
performance of its employees. The system shall measure
Department of Natural Resources, hereinafter referred to as the
accomplishment in quantity and quality of performance as related
Department Head.
to the funded program of work assigned to each organizational
unit. There shall be included a system of periodic inspection of
Section 8. Review. All actions and decisions of the Director are district offices by the regional offices and the regional and district
subject to review, motu propio or upon appeal of any person offices by the Central Office in both functional fields and in the
aggrieved thereby, by the Department Head whose decision shall overall assessment of how each administrative unit has
be final and executory after the lapse of thirty (30) days from implemented the laws, regulations, policies, programs, and
receipt by the aggrieved party of said decision, unless appealed to practices relevant to such unit. The evaluation system shall
the President in accordance with the Executive Order No. 19, provide the information necessary for annual progress reports and
series of 1966. The Decision of the Department Head may not be determination of employee training civil service awards and
reviewed by the courts except through a special civil action for transfer or disciplinary action.
certiorari or prohibition.
CHAPTER II
Section 9. Rules and Regulations. The Department Head, upon the CLASSIFICATION AND SURVEY
recommendation of the Director of Forest Development, shall
promulgate the rules and regulations necessary to implement
Section 13. System of Land Classification. The Department Head
effectively the provisions of this Code.
shall study, devise, determine and prescribe the criteria,
guidelines and methods for the proper and accurate classification
Section 10. Creation of Functional Divisions, and Regional and and survey of all lands of the public domain into agricultural,
District Offices. All positions in the merged agencies are industrial or commercial, residential, resettlement, mineral,
considered vacant. Present occupants may be appointed in timber or forest, and grazing lands, and into such other classes as
accordance with a staffing pattern or plan of organization to be now or may hereafter be provided by law, rules and regulations.
prepared by the Director and approved by the Department Head.
Any appointee who fails to report for duty in accordance with the
In the meantime, the Department Head shall simplify through
approved plan within thirty (30) days upon receipt of notification
inter-bureau action the present system of determining which of
the unclassified lands of the public domain are needed for forest 5. Ridge tops and plateaus regardless of size found
purposes and declare them as permanent forest to form part of within, or surrounded wholly or partly by, forest lands
the forest reserves. He shall decree those classified and where headwaters emanate;
determined not to be needed for forest purposes as alienable and
disposable lands, the administrative jurisdiction and management
6. Appropriately located road-rights-or-way;
of which shall be transferred to the Bureau of Lands: Provided,
That mangrove and other swamps not needed for shore
protection and suitable for fishpond purposes shall be released to, 7. Twenty-meter strips of land along the edge of the
and be placed under the administrative jurisdiction and normal high waterline of rivers and streams with
management of, the Bureau of Fisheries and Aquatic Resources. channels of at least five (5) meters wide;
Those still to be classified under the Present system shall continue
to remain as part of the public forest. 8. Strips of mangrove or swamplands at least twenty
(20) meters wide, along shorelines facing oceans, lakes,
Section 14. Existing Pasture Leases and Permits in Forest and other bodies of water, and strips of land at least
Lands. Forest lands which have been the subject of pasture leases twenty (20) meters wide facing lakes;
and permits shall remain classified as forest lands until classified
as grazing lands under the criteria, guidelines and methods of 9. Areas needed for other purposes, such as national
classification to be prescribed by the Department Head: Provided, parks, national historical sites, game refuges and
That the administration, management and disposition of grazing wildlife sanctuaries, forest station sites, and others of
lands shall remain under the Bureau. public interest; and

Section 15. Topography. No land of the public domain eighteen 10. Areas previously proclaimed by the President as
per cent (18%) in slope or over shall be classified as alienable and forest reserves, national parks, game refuge, bird
disposable, nor any forest land fifty per cent (50%) in slope or sanctuaries, national shrines, national historic sites:
over, as grazing land.

Provided, That in case an area falling under any of the foregoing


Lands eighteen per cent (18%) in slope or over which have already categories shall have been titled in favor of any person, steps shall
been declared as alienable and disposable shall be reverted to the be taken, if public interest so requires, to have said title cancelled
classification of forest lands by the Department Head, to form part or amended, or the titled area expropriated.
of the forest reserves, unless they are already covered by existing
titles or approved public land application, or actually occupied
openly, continuously, adversely and publicly for a period of not Section 17. Establishment of boundaries of forest lands. All
less than thirty (30) years as of the effectivity of this Code, where boundaries between permanent forests and alienable and
the occupant is qualified for a free patent under the Public Land disposable lands shall be clearly marked and maintained on the
Act: Provided, That said lands, which are not yet part of a well- ground, with infrastructure or roads, or concrete monuments at
established communities, shall be kept in a vegetative condition intervals of not more than five hundred (500) meters in
sufficient to prevent erosion and adverse effects on the lowlands accordance with established procedures and standards, or any
and streams: Provided, further, That when public interest so other visible and practicable signs to insure protection of the
requires, steps shall be taken to expropriate, cancel defective forest.
titles, reject public land application, or eject occupants thereof.
Section 18. Reservations in forest lands and off-shore areas. The
Section 16. Areas needed for forest purposes. The following lands, President of the Philippines may establish within any lands of the
even if they are below eighteen per cent (18%) in slope, are public domain, forest reserve and forest reservation for the
needed for forest purposes, and may not, therefore, be classified national park system, for preservation as critical watersheds, or for
as alienable and disposable land, to wit: any other purpose, and modify boundaries of existing ones. The
Department Head may reserve and establish any portion of the
public forest or forest reserve as site or experimental forest for
1. Areas less than 250 hectares which are far from, or use of the Forest Research Institute.
are not contiguous with, any certified alienable and
disposable land;
When public interest so requires, any off-shore area needed for
the preservation and protection of its educational, scientific,
2. Isolated patches of forest of at least five (5) hectares historical, ecological and recreational values including the marine
with rocky terrain, or which protect a spring for life found therein, shall be established as marine parks.
communal use;

3. Areas which have already been reforested;

CHAPTER III
4. Areas within forest concessions which are timbered UTILIZATION AND MANAGEMENT
or have good residual stocking to support an existing,
or approved to be established, wood processing plant;
Section 19. Multiple use. The numerous beneficial uses of the
timber, land, soil, water, wildlife, recreation value and grass of
forest lands shall be evaluated and weighted before allowing the
utilization, exploitation, occupation or possession thereof, or the Section 25. Cutting cycle. The Bureau shall apply scientific cutting
conduct of any activity therein. cycle and rotation in all forest lands, giving particular
consideration to the age, volume and kind of healthy residual
trees which may be left undisturbed and undamaged for future
Only the utilization, exploitation, occupation or possession of any
harvest and forest cover indipterocarp area, and seed trees and
forest land, or any activity therein, involving one or more or its
reproduction in pine area.
resources, which will produce the optimum benefits to the
development and progress of the country and the public welfare,
without impairment or with the least injury to its other resources, Section 26. Annual allowable cut. The annual allowable cut of any
shall be allowed. particular forest land shall be determined on the basis of the
established rotation and cutting cycle thereof, and the volume and
kind of harvestable timber and healthy residuals, seed trees and
All forest reservations may be open to uses not inconsistent with
reproduction found therein.
the principal objectives of the reservation: Provided, That critical
watersheds and national parks shall not be subject to logging
operations. Section 27. Duration of license agreement or license to harvest
timber in forest lands. The duration of the privilege to harvest
timber in any particular forest land under a license agreement or
Section 20. License agreement, license, lease or permit. No person
license shall be fixed and determined in accordance with the
may utilize, exploit, occupy, possess or conduct any activity within
annual allowable cut therein, the established cutting cycle thereof,
any forest land, or establish and operate any wood-processing
the yield capacity of harvestable timber, and the capacity of
plant, unless he has been authorized to do so under a license
healthy residuals for a second growth.
agreement, lease, license, or permit.

The privilege shall automatically terminate, even before the


Section 21. Sustained yield. All measures shall be taken to achieve
expiration of the license agreement of license, the moment the
an approximate balance between growth and harvest or use of
harvestable timber have been utilized without leaving any logged-
forest products in forest lands.
over area capable of commercial utilization.

A. TIMBER
The maximum period of any privilege to harvest timber is twenty-
five (25) years, renewable for a period, not exceeding twenty-five
Section 22. Silvicultural and harvesting systems. In any logging (25) years, necessary to utilize all the remaining commercial
operations in production forests within forest lands, the proper quantity or harvestable timber either from the unlogged or
silvicultural and harvesting systems that will promote optimum logged-over area.
sustained yield shall be practised.
It shall be a condition for the continued privilege to harvest timber
(a) For dipterocarp forest, selective logging shall be under any license or license agreement that the licensee shall
practised. reforest all the areas which shall be determined by the Bureau.

(b) For pine forest, the seed tree system with planting Section 28. Size of forest concessions. Forest lands shall not be
when necessary shall be practised. held in perpetuity.

(c) For other types of forest, the silvicultural and The size of the forest lands which may be the subject of timber
harvesting system that will be found suitable by utilization shall be limited to that which a person may effectively
research shall be applied. Meanwhile, a system based utilize and develop for a period of fifty (50) years, considering the
on observation and practices abroad may be adopted cutting cycle, the past performance of the applicant and his
initially. capacity not only to utilize but, more importantly, to protect and
manage the whole area, and the requirements of processing
Any practised system are subject to modification or changes based plants existing or to be installed in the region.
on research findings.
Forest concessions which had been the subject of consolidations
Section 23. Timber inventory. The Bureau shall conduct a program shall be reviewed and re-evaluated for the effective
of progressive inventories of the harvestable timber and young implementation of protection, reforestation and management
trees in all forest lands, whether covered by any license thereof under the multiple use and sustained yield concepts, and
agreement, license, lease or permit, or not, until a one hundred for the processing locally of the timber resources therefrom.
per cent (100%) timber inventory thereon has been achieved.

Section 24. Required inventory prior to timber utilization in forest


lands. No harvest of timber in any forest land shall be allowed B. WOOD-PROCESSING
unless it has been the subject of at least a five per cent (5%)
timber inventory, or any statistically sound timber estimate, made
Section 29. Incentives to the wood industry. The Department
not earlier than five (5) years prior to the issuance of a license
Head, in collaboration with other government agencies and the
agreement or license allowing such utilization.
wood industry associations and other private entities in the
country, shall evolve incentives for the establishment of an
integrated wood industry in designated wood industry centers (e) Denuded or inadequately-timbered areas proclaimed by the
and/or economic area. President as forest reserves and reservations as critical
watersheds, national parks, game refuge, bird sanctuaries,
national shrines, national historic sites;
The President of the Philippines, upon the recommendations of
the National Economic Development Authority and the
Department Head, may establish wood industry import-export (f) Inadequately-stocked forest lands within forest concessions;
centers in selected locations: Provided, That logs imported for
such centers shall be subject to such precaution as may be
(g) Portions of areas covered by pasture leases or permits having a
imposed by the Bureau, in collaboration with proper government
slope of at least fifty per cent (50%); and
agencies, to prevent the introduction of pests, insects and/or
diseases detrimental to the forests.
(h) River banks, easements, road rights-of-ways, deltas, swamps,
former river beds, and beaches.
Section 30. Rationalization of the wood industry. While
establishment of wood-processing plants shall be encouraged,
their locations and operations shall be regulated in order to Section 34. Industrial Tree Plantations and Tree Farms. A lease for
rationalize the industry. No new processing plant shall be a period of twenty-five (25) years, renewable for another period
established unless adequate raw material is available on a not exceeding twenty-five (25) years, for the establishment of an
sustained-yield basis in the area where the raw materials will industrial tree plantation or a tree farm may be granted by the
come from. Department Head upon recommendation of the Director to any
person qualified to develop and exploit natural resources, over
timber or forest lands of the public domain categorized in Section
The Department Head may cancel, suspend, or phase-out all
33 hereof, with a minimum area of One Thousand (1,000) hectares
uneconomical wood-processing plants which are not responsive to
for industrial tree plantation and One Hundred (100) hectares for
the rationalization program of the government.
tree farm; Provided, That the size of the area that may be granted
under each category shall in each case depend upon the capacity
Section 31. Wood wastes, weed trees and residues. Timber of the lessee to develop or convert the area into productive
licensees shall be encouraged and assisted to gather and save the condition within the term of the lease; Provided, further, That no
wood wastes and weed trees in their concessions, and those with lease shall be granted within critical watersheds.
processing plants, the wood residues thereof, for utilization and
conversion into wood by-products and derivatives.
Scattered areas of less than One Hundred (100) hectares each may
be leased for the establishment of tree farms to different qualified
Section 32. Log production and processing. Unless otherwise persons upon a showing that if developed as an integrated unit
decreed by the President, upon recommendation of the National these areas can be economically exploited: Provided, That it shall
Economic Development Authority, the entire production of logs by be a condition of the lease that such persons organize themselves
all licensees shall, beginning January 1, 1976, be processed locally. into a cooperative to ensure the orderly management thereof.

A licensee who has no processing plant may, subject to the The lease may be granted under such terms and conditions as the
approval of the Director, enter into a contract with a wood Department Head may prescribe, taking into account, among
processor for the processing of his logs. Wood processors shall others, the raw material needs of forest-based industries and the
accept for processing only logs cut by, or purchased from, maintenance of a wholesome ecological balance.
licensees of good standing at the time of the cutting of logs.
Reforestation projects of the Government, or portions thereof
C. REFORESTATION which, upon field evaluation, are found to be more suitable for, or
can be better developed as, industrial tree plantations or tree
farms in terms of benefits to the Government and the general
Section 33. Forest lands to be reforested. The following shall be
surrounding area, may be the subject of the lease under this
reforested and covered with suitable and sufficient trees, to wit:
section.

(a) Bare or grass-covered tracts of forest lands with at least fifty


Section 35. Priority. Over any suitable area covered by a timber
per cent (50%) slope;
license agreement, or a pasture lease agreement or permit, the
priority to establish industrial forest plantation or tree farm shall
(b) Bare or grass-covered tracts of forest lands with less than fifty be given to the holder thereof.
per cent (50%) slope, but with soil so highly erodible as to make
grass cover inadequate for soil erosion control;
The priority herein granted must, however, be availed of within a
reasonable period to be determined by the Department Head,
(c) Brushlands or tracts of forest lands generally covered with otherwise, the area shall be declared open to any qualified person
brush, which need to be developed to increase their productivity; and consequently segregated from the holder's area.

(d) Open tracts of forest lands with slopes or gradients generally Section 36. Incentives. To encourage qualified persons to engage
exceeding fifty per cent (50%), interspersed with patches of forest in industrial tree plantation and/or tree farming, the following
each of which is less than two hundred fifty (250) hectares in area; incentives are granted:
(a) Payment of a nominal filing fee of fifty centavos (P0.50) per (h) A lessee shall not be subject to any obligation prescribed in, or
hectare; arising out of, the provisions of the National Internal Revenue
Code on withholding of tax at source upon interests paid on
borrowings incurred for development and operation of the
(b) No rental shall be collected during the first five (5) years from
industrial tree plantation or tree farm.
the date of the lease; from the sixth year to the tenth year, the
annual rental shall be fifty centavos (P0.50) per hectare; and
thereafter, the annual rental shall be one peso (P1.00) per The Department Head may provide other incentives in addition to
hectare: Provided, That lessees of areas long denuded as certified those hereinabove granted to promote industrial tree plantation
by the Director and approved by the Department Head, shall be and tree farms in special areas such as, but not limited to, those
exempted from the payment of rental for the full term of the lease where there are no roads or where roads are inadequate, or areas
which shall not exceed twenty-five (25) years; for the first five (5) with rough topography and remote areas far from processing
years following the renewal of the lease, the annual rental shall be plants.
fifty centavos (P0.50) per hectare; and thereafter, the annual
rental shall be one peso (P1.00) per hectare.
All amounts collected under this section shall accrue to a special
deposit of the Bureau to be used for reforestation of critical
(c) The lessee shall pay forest charges on the timber and other watersheds or degraded areas and other development activities,
forest products grown and cut or gathered in an industrial tree over and above the general appropriation of the said Bureau.
plantation or tree farm equivalent to six percent (6%) current
market value thereof;
D. FOREST PROTECTION

(d) Sale at cost of seedlings and free technical advice and


Section 37. Protection of all resources. All measures shall be taken
assistance to persons who will develop their privately-owned
to protect the forest resources from destruction, impairment and
lands into industrial tree plantation or tree farm;
depletion.

(e) Exemption from the payment of the percentage tax levied in


Section 38. Control of concession area. In order to achieve the
Title V of the National Internal Revenue Code when the timber
effective protection of the forest lands and the resources thereof
and forest products are sold, bartered or exchanged by the lessee
from illegal entry, unlawful occupation, kaingin, fire, insect
whether in their original state or not;
infestation, theft, and other forms of forest destruction, the
utilization of timber therein shall not be allowed except through
(f) The Board of Investments shall, notwithstanding its nationality license agreements under which the holders thereof shall have
requirement on projects involving natural resources, classify the exclusive privilege to cut all the allowable harvestable timber
industrial tree plantations and tree farms as pioneer areas of in their respective concessions, and the additional right of
investment under its annual priority plan, to be governed by the occupation, possession, and control over the same, to the
rules and regulations of said Board. A lessee of an industrial tree exclusive of all others, except the government, but with the
plantation or tree farm may either apply to the Board of corresponding obligation to adopt all the protection and
Investments for the tax and other benefits thereunder, or avail of conservation measures to ensure the continuity of the productive
the following benefits: condition of said areas, conformably with multiple use and
sustained yield management.
1. Amounts expended by a lessee in the development and
operation of an industrial tree plantation or tree farm prior to the If the holder of a license agreement over a forest area expressly or
time when the production state is reached, may, at the option of impliedly waives the privilege to utilize any softwood, hardwood
said lessee, be regarded as ordinary and necessary business or mangrove species therein, a license may be issued to another
expenses or as capital expenditures; and person for the harvest thereof without any right of possession or
occupation over the areas where they are found, but he shall,
likewise, adopt protection and conservation measures consistent
2. Deduction from an investor's taxable income for the year, of an
with those adopted by the license agreement holder in the said
annual investment allowance equivalent to thirty-three and one-
areas.
third per cent (33-1/3%) of his actual investment during the year
in an enterprise engaged in industrial tree plantation or tree farm:
Provided, That such investment shall not be withdrawn for a Section 39. Regulation of timber utilization in all other classes of
period of at least ten (10) years from the date of investment: lands and of wood-processing plants. The utilization of timber in
Provided, further, That should the investment be withdrawn alienable and disposable lands, private lands, civil reservations,
within such period, a tax equivalent to double the amount of the and all lands containing standing or felled timber, including those
total income tax rebate resulting from the investment allowance under the jurisdiction of other government agencies, and the
shall be payable as a lump sum in addition to the income tax due establishment and operation of saw-mills and other wood-
from the taxpayer for the year the investment was withdrawn. processing plants, shall be regulated in order to prevent them
from being used as shelters for excessive and unauthorized
harvests in forest lands, and shall not therefore be allowed except
(g) Except when public interest demands the alteration or
through a license agreement, license, lease or permit.
modification, the boundaries of an area covered by an industrial
tree plantation or tree farm lease, once established on the
ground, shall not be altered or modified; and Section 40. Timber inventory in other lands containing standing or
felled timber. The Bureau shall conduct a one hundred per cent
(100%) timber inventory in alienable and disposable lands and civil
reservations immediately upon classification or reservation conducted under the authority of this Code and the implementing
thereof. rules and regulations.

No harvest of standing or felled timber in alienable and disposable Section 46. Scaling stations. In collaboration with appropriate
lands, private lands, civil reservation, and all other lands, including government agencies, the Bureau shall establish control or scaling
those under the jurisdiction of other government agencies, shall stations at suitably located outlets of timber and other forest
be allowed unless a one hundred per cent (100%) timber products to insure that they were legally cut or harvested.
inventory has been conducted thereon.
Section 47. Mining operations. Mining operations in forest lands
Section 41. Sworn timber inventory reports. All reports on timber shall be regulated and conducted with due regard to protection,
inventories of forest lands, alienable and disposable lands, private development and utilization of other surface resources.
lands, civil reservations, and all lands containing standing or felled
timber must be subscribed and sworn to by all the forest officers
Location, prospecting, exploration, utilization or exploitation of
who conducted the same.
mineral resources in forest reservations shall be governed by
Mining laws, rules and regulations. No location, prospecting,
Section 42. Participation in the development of alienable and exploration, utilization, or exploitation of mineral resources inside
disposable lands and civil reservations. The privilege to harvest forest concessions shall be allowed unless proper notice has been
timber in alienable and disposable lands and civil reservations served upon the licensees thereof and the prior approval of the
shall be given to those who can best help in the delineation and Director, secured.
development of such areas in accordance with the management
plan of the appropriate government exercising jurisdiction over
Mine tailings and other pollutants affecting the health and safety
the same.
of the people, water, fish, vegetation, animal life and other surface
resources, shall be filtered in silt traps or other filtration devices
The extent of participation shall be based on the amount of and only clean exhausts and liquids shall be released therefrom.
timber which may be harvested therefrom.
Surface-mined areas shall be restored to as near its former natural
Section 43. Swamplands and mangrove forests. Strips of configuration or as approved by the Director prior to its
mangrove forest bordering numerous islands which protect the abandonment by the mining concern.
shoreline, the shoreline roads, and even coastal communities from
the destructive force of the sea during high winds and typhoons,
Section 48. Mineral Reservations. Mineral reservations which are
shall be maintained and shall not be alienated. Such strips must be
not the subject of mining operations or where operations have
kept from artificial obstruction so that flood water will flow
been suspended for more than five (5) years shall be placed under
unimpeded to the sea to avoid flooding or inundation of cultivated
forest management by the Bureau.
areas in the upstream.

Mineral reservations where mining operations have been


All mangrove swamps set aside for coast-protection purposes shall
terminated due to the exhaustion of its minerals shall revert to the
not be subject to clear-cutting operation.
category of forest land, unless otherwise reserved for other
purposes.
Mangrove and other swamps released to the Bureau of Fisheries
and Aquatic Resources for fishpond purposes which are not
Section 49. Roads and other infrastructure. Roads and other
utilized, or which have been abandoned for five (5) years from the
infrastructure in forest lands shall be constructed with the least
date of such release shall revert to the category of forest land.
impairment to the resource values thereof.

Section 44. Visitorial power. The Department Head may, by


Government agencies undertaking the construction of roads,
himself or thru the Director or any qualified person duly
bridges, communications, and other infrastructure and
designated by the Department Head, investigate, inspect and
installations inside forest lands, shall coordinate with the Bureau,
examine records, books and other documents relating to the
especially if it will involve the utilization or destruction of timber
operation of any holder of a license agreement, license, lease, or
and/or other forest resources, or watershed disturbance therein,
permit, and its subsidiary or affiliated companies, to determine
in order to adopt measures to avoid or reduce damage or injury to
compliance with the terms and conditions thereof, this Code and
the forest resource values.
pertinent laws, policies, rules and regulations.

They shall likewise extend assistance in the planning and


Section 45. Authority of forest officers. When in the performance
establishment of roads, wharves, piers, port facilities, and other
of their official duties, forest officers, or other government officials
infrastructure in locations designated as wood-processing centers
or employees duly authorized by the Department Head or
or for the convenience of wood-based industries.
Director, shall have free entry into areas covered by a license
agreement, license, lease or permit.
In order to coincide and conform to government plans, programs,
standards, and specifications, holders of license agreements,
Forest officers are authorized to administer oath and take
licenses, leases and permits shall not undertake road or
acknowledgment in official matters connected with the functions
infrastructure construction or installation in forest lands without
of their office, and to take testimony in official investigations
the prior approval of the Director, or in alienable and disposable
lands, civil reservations and other government lands, without the Section 53. Criminal Prosecution. Kaingineros, squatters, cultural
approval of the government agencies having administrative minorities and other occupants who entered into forest lands
jurisdiction over the same. before the effectivity of this Code, without permits or authority,
shall not be prosecuted: Provided, That they do not increase their
clearings: Provided, further, That they undertake, within two (2)
All roads and infrastructure constructed by holders of license
months from the notice thereof, the activities which will be
agreements, licenses, leases and permits belong to the State and
imposed upon them by the Bureau in accordance with a
the use and administration thereof shall be transferred to the
management plan calculated to conserve and protect forest
government immediately upon the expiration or termination
resources.
thereof. Prior thereto the Bureau may authorize the public use
thereof, if it will not be detrimental to forest conservation
measures. E. SPECIAL USES

Where roads are utilized by more than one commercial forest Section 54. Pasture in forest lands. No forest land 50% in slope or
user, the Bureau shall prescribe the terms and conditions of joint over may be utilized for pasture purposes.
use including the equitable sharing of construction and/or
maintenance costs, and of the use of these roads by other parties
Forest lands which are being utilized for pasture shall be
and the collection of such fees as may be deemed necessary.
maintained with sufficient grass cover to protect soil, water and
other forest resources.
Section 50. Logging roads. There shall be indiscriminate
construction of logging roads.
If grass cover is insufficient, the same shall be supplemented with
trees or such vegetative cover as may be deemed necessary.
Such roads shall be strategically located and their widths regulated
so as to minimize clear-cutting, unnecessary damage or injury to
The size of forest lands that may be allowed for pasture and other
healthy residuals, and erosion. Their construction must not only
special uses shall be determined by rules and regulations, any
serve the transportation need of the logger but, most importantly,
provision of law to the contrary notwithstanding.
the requirement to save as many healthy residuals as possible
during cutting and hauling operations.
Section 55. Wildlife. Wildlife may be destroyed, killed, consumed,
eaten or otherwise disposed of, without the necessity of permit,
Section 51. Management of occupancy in forest lands. Forest
for the protection of life, health, safety and property, and the
occupancy shall henceforth be managed. The Bureau shall study,
convenience of the people.
determine and define which lands may be the subject of
occupancy and prescribed therein, an agro-forestry development
program. However, the Director may regulate the killing and destruction of
wildlife in forest lands in order to maintain an ecological balance
of flora and fauna.
Occupants shall undertake measures to prevent and protect forest
resources.
Section 56. Recreation. The Bureau shall, in the preparation of
multiple-use management plans, identify and provide for the
Any occupancy in forest land which will result in sedimentation,
protection of scenic areas in all forest lands which are potentially
erosion, reduction in water yield and impairment of other
valuable for recreation and tourism, and plan for the development
resources to the detriment of community and public interest shall
and protection of such areas to attract visitors thereto and meet
not be allowed.
increasing demands therefor.

In areas above 50% in slope, occupation shall be conditioned upon


The construction and operation of necessary facilities to
the planting of desirable trees thereon and/or adoption of other
accommodate outdoor recreation shall be done by the Bureau
conservation measures.
with the use of funds derived from rentals and fees for the
operation and use of recreational facilities by private persons or
Section 52. Census of kaingineros, squatters, cultural minorities operators, in addition to whatever funds may be appropriated for
and other occupants and residents in forest lands. Henceforth, no such purposes.
person shall enter into forest lands and cultivate the same without
lease or permit.
Section 57. Other special uses of forest lands. Forest lands may be
leased for a period not exceeding twenty-five (25) years,
A complete census of kaingineros, squatters, cultural minorities renewable upon the expiration thereof for a similar period, or
and other occupants and residents in forest lands with or without held under permit, for the establishment of sawmills, lumber
authority or permits from the government, showing the extent of yards, timber depots, logging camps, rights-of-way, or for the
their respective occupation and resulting damage, or impairment construction of sanatoria, bathing establishments, camps, salt
of forest resources, shall be conducted. works, or other beneficial purposes which do not in any way
impair the forest resources therein.
The Bureau may call upon other agencies of the government and
holders of license agreement, license, lease and permits over F. QUALIFICATIONS
forest lands to participate in the census.
Section 58. Diffusion of benefits. The privilege to utilize, exploit, Code, if the corporation has been in operation for more than 5
occupy, or possess forest lands, or to conduct any activity therein, years prior to such effectivity.
or to establish and operate wood-processing plants, shall be
diffused to as many qualified and deserving applicants as possible.
No corporation shall be issued any license agreement, license,
lease or permit after the effectivity of this Code, unless it submits
Section 59. Citizenship. In the evaluation of applications of such a plan and the same is approved for implementation within
corporations, increased Filipino equity and participation beyond the sixth year of its operation.
the 60% constitutional limitation shall be encouraged. All other
factors being equal, the applicant with more Filipino equity and
The Department Head shall promulgate the necessary rules and
participation shall be preferred.
regulations to carry out the provisions of this section, particularly
on the determination of the manner of payment, factors affecting
Section 60. Financial and technical capability. No license the selling price, establishment of priorities in the purchase of the
agreement, license, lease or permit over forest lands shall be shares of stock, and the capability of the deserving employees and
issued to an applicant unless he proves satisfactorily that he has laborers. The industries concerned shall extend all assistance in
the financial resources and technical capability not only to the promulgation of policies on the matter, such as the submission
minimize utilization, but also to practice forest protection, of all data and information relative to their operation, personnel
conservation and development measures to insure the management, and asset evaluation.
perpetuation of said forest in productive condition.
G. REGULATORY FEES
Section 61. Transfers. Unless authorized by the Department Head,
no licensee, lessee, or permittee may transfer, exchange, sell or
Section 64. Charges, fees and bonds. The Department Head, upon
convey his license agreement, license, lease or permit, or any of
recommendation of the Director, shall fix the amount of charges,
his rights or interests therein, or any of his assets used in
rental, bonds and fees for the different kinds of utilization,
connection therewith.
exploitation, occupation, possession, or activity inside forest
lands, the filing and processing of applications therefor, the
The licensee, lessee, or permittee shall be allowed to transfer or issuance and renewal of license agreements, licenses, leases and
convey his license agreement, license, lease or permit only if he permits, and for other services; Provided, That all fees and charges
has not violated any forestry law, rule or regulation; has been presently being collected under existing laws and regulations shall
faithfully complying with the terms and conditions of the license continue to be imposed and collected until otherwise provided;
agreement, license, lease or permit; the transferee has all the Provided, further, That timber taken and removed from private
qualifications and none of the disqualifications to hold a license lands for commercial purposes shall be exempt from the payment
agreement, license, lease or permit; there is no evidence that such of forest charges.
transfer or conveyance is being made for purposes of speculation;
and the transferee shall assume all the obligations of the
Section 65. Authority of Department Head to impose other fees. In
transferor.
addition to the fees and charges imposed under existing laws,
rules and regulations, the Department Head is hereby authorized,
The transferor shall forever be barred from acquiring another upon recommendation of the Director and in consultation with
license agreement, license, lease or permit. representatives of the industries affected, to impose other fees for
forest protection, management, reforestation, and development,
the proceeds of which shall accrue into a special deposit of the
Section 62. Service contracts. The Department Head, may in the
Bureau as its revolving fund for the aforementioned purposes.
national interest, allow forest products licensees, lessees, or
permittees to enter into service contracts for financial, technical,
management, or other forms of assistance, in consideration of a Section 66. Collection and Disbursement. The collection of the
fee, with any foreign person or entity for the exploration, charges and fees above-mentioned shall be the responsibility of
development, exploitation or utilization of the forest resources, the Director or his authorized representative. The Director shall
covered by their license agreements, licenses, leases or permits. remit his monthly collection of fees and charges mentioned in
Existing valid and binding service contracts for financial, technical, Section 64 to the Treasurer of the Philippines within the first ten
management or other forms of assistance are hereby recognized (10) days of the succeeding month; Provided, That the proceeds of
as such. the collection of the fees imposed under Section 65 and the
special deposit heretofore required of licensees shall be
constituted into a revolving fund for such purposes and be
Section 63. Equity sharing. Every corporation holding a license
deposited in the Philippine National Bank, as a special deposit of
agreement, license, lease or permit to utilize, exploit, occupy or
the Bureau. The Budget Commissioner and the National Treasurer
possess any forest land, or conduct any activity therein, or
shall effect the quarterly releases out of the collection accruing to
establish and operate a wood-processing plant, shall within one
the general fund upon request of the Director on the basis of a
(1) year after the effectivity of this Code, formulate and submit to
consolidated annual budget of a work program approved by the
the Department Head for approval a plan for the sale of at least
Department Head and the President.
twenty percent (20%) of its subscribed capital stock in favor of its
employees and laborers.
In the case of the special deposit revolving fund, withdrawals
therefrom shall be effected by the Department Head on the basis
The plan shall be so implemented that the sale of the shares of
of a consolidated annual budget prepared by the Director of a
stock shall be effected by the corporation not later than the sixth
work program for the specific purposes mentioned in Section 65.
year of its operation, or the first year of the effectivity of this
Section 67. Basis of Assessment. Tree measurement shall be the forest products destroyed, without prejudice to the payment of
basis for assessing government charges and other fees on timber the full cost of restoration of the occupied area as determined by
cut and removed from forest lands, alienable or disposable lands, the Bureau.
and the civil reservations; Provided, That until such time as the
mechanics of tree measurement shall have been developed and
The Court shall further order the eviction of the offender from the
promulgated in rules and regulations, the present scaling method
land and the forfeiture to the Government of all improvements
provided for in the National Internal Revenue Code shall be used.
made and all vehicles, domestic animals and equipment of any
kind used in the commission of the offense. If not suitable for use
The Director may, with the approval of the Department Head, by the Bureau, said vehicles shall be sold at public auction, the
prescribe a new method of assessment of forest products and proceeds of which shall accrue to the Development Fund of the
collection of charges thereon based upon the result of production Bureau.
cost and market studies undertaken by the Bureau; Provided, That
such charges shall not be lower than those now imposed.
In case the offender is a government official or employee, he shall,
in addition to the above penalties, be deemed automatically
CHAPTER IV dismissed from office and permanently disqualified from holding
CRIMINAL OFFENSES AND PENALTIES any elective or appointive position.

Section 68. Cutting, gathering and/or collecting timber or other Section 70. Pasturing Livestock. Imprisonment for not less than six
products without license. Any person who shall cut, gather, collect, (6) months nor more than two (2) years and a fine equal to ten
or remove timber or other forest products from any forest land, or (10) times the regular rentals due, in addition to the confiscation
timber from alienable and disposable public lands, or from private of such livestock and all improvement introduced in the area in
lands, without any authority under a license agreement, lease, favor of the government, shall be imposed upon any person, who
license or permit, shall be guilty of qualified theft as defined and shall, without authority under a lease or permit, graze or cause to
punished under Articles 309 and 310 of the Revised Penal Code; graze livestock in forest lands, grazing lands and alienable and
Provided, That in the case of partnership, association or disposable lands which have not as yet been disposed of in
corporation, the officers who ordered the cutting, gathering or accordance with the Public Land Act; Provided, That in case the
collecting shall be liable, and if such officers are aliens, they shall, offender is a corporation, partnership or association, the officers
in addition to the penalty, be deported without further and directors thereof shall be liable.
proceedings on the part of the Commission on Immigration and
Deportation.
Section 71. Illegal occupation of national parks system and
recreation areas and vandalism therein. Any person who shall,
The Court shall further order the confiscation in favor of the without permit, occupy for any length of time any portion of the
government of the timber or forest products to cut, gathered, national parks system or shall, in any manner, cut, destroy,
collected or removed, and the machinery, equipment, implements damage or remove timber or any species of vegetation or forest
and tools used therein, and the forfeiture of his improvements in cover and other natural resources found therein, or shall mutilate,
the area. deface or destroy objects of natural beauty or of scenic value
within areas in the national parks system, shall be fined not less
than two hundred (P200.00) pesos or more than five hundred
The same penalty plus cancellation of his license agreement,
(P500.00) pesos exclusive of the value of the thing damaged;
lease, license or permit and perpetual disqualification from
Provided, That if the area requires rehabilitation or restoration as
acquiring any such privilege shall be imposed upon any licensee,
determined by the Director, the offender shall also be required to
lessee, or permittee who cuts timber from the licensed or leased
restore or compensate for the restoration of the damage;
area of another, without prejudice to whatever civil action the
Provided, Further, That any person who, without proper permit
latter may bring against the offender.
shall hunt, capture or kill any kind of bird, fish or wild animal life
within any area in the national parks system shall be subject to the
Section 69. Unlawful occupation or destruction of forest same penalty; Provided, Finally, That the Court shall order eviction
lands. Any person who enters and occupies or possesses, or makes of the offender from the land and the forfeiture in favor of the
kaingin for his own private use or for others any forest land Government of all timber or any species of vegetation and other
without authority under a license agreement, lease, license or natural resources collected or removed, and any construction or
permit, or in any manner destroys such forest land or part thereof, improvement made thereon by the offender. If the offender is an
or causes any damage to the timber stand and other products and association or corporation, the president or manager shall be
forest growths found therein, or who assists, aids or abets any directly responsible and liable for the act of his employees or
other person to do so, or sets a fire, or negligently permits a fire to laborers.
be set in any forest land shall, upon conviction, be fined in an
amount of not less than five hundred pesos (P500.00) nor more
In the event that an official of a city or municipal government is
than twenty thousand pesos (P20,000.00) and imprisoned for not
primarily responsible for detecting and convicting the violator of
less than six (6) months nor more than two (2) years for each such
the provisions of this Section, fifty per centum (50%) of the fine
offense, and be liable to the payment of ten (10) times the rental
collected shall accrue to such municipality or city for the
fees and other charges which would have been accrued had the
development of local parks.
occupation and use of the land been authorized under a license
agreement, lease, license or permit: Provided, That in the case of
an offender found guilty of making kaingin, the penalty shall be Section 72. Destruction of wildlife resources. Any person violating
imprisoned for not less than two (2) nor more than (4) years and a the provisions of Section 55 of this Code, or the regulations
fine equal to eight (8) times the regular forest charges due on the promulgated thereunder, shall be fined not less than one hundred
(P100.00) pesos for each such violation and in addition shall be municipal or city forest or pasture, classified timber land, forest
denied a permit for a period of three (3) years from the date of reserve, and areas under the national park system or to make any
the violation. false mark or imitation of any mark or sign herein indicated;
Provided, That if the offender is a corporation, partnership or
association, the officers and directors thereof shall be liable.
Section 73. Survey by unauthorized person. Imprisonment for not
less than two (2) nor more than four (4) years, in addition to the
confiscation of the implements used in the violation of this section Section 78. Payment, collection and remittance of forest
including the cancellation of the license, if any, shall be imposed charges. Any person who fails to pay the amount due and payable
upon any person who shall, without permit to survey from the under the provisions of this Code, the National Internal Revenue
Director, enter any forest lands, whether covered by a license Code, or the rules and regulations promulgated thereunder, shall
agreement, lease, license, or permit, or not, and conduct or be liable to the payment of a surcharge of twenty-five per centum
undertake a survey for whatever purpose. (25%) of the amount due and payable.

Section 74. Misclassification and survey by government official or Any person who fails or refuses to remit to the proper authorities
employee. Any public officer or employee who knowingly surveys, said forest charges collectible pursuant to the provisions of this
classifies, or recommends the release of forest lands as alienable Code or the National Internal Revenue Code, or who delays,
and disposable lands contrary to the criteria and standards obstructs or prevents the same, or who orders, causes or effects
established in this Code, or the rules and regulations promulgated the transfer or diversion of the funds for purposes other than
hereunder, shall, after an appropriate administrative proceeding, those specified in this Code, for each such offense shall, upon
be dismissed from the service with prejudice to re-employment, conviction, be punished by a fine of not exceeding one hundred
and upon conviction by a court of competent jurisdiction, suffer thousand pesos (P100,000.00) and/or imprisonment for a period
an imprisonment of not less than one (1) year and a fine of not of not exceeding six (6) years in the discretion of the Court. If the
less than one thousand, (P1,000.00) pesos. The survey, offender is a government official or employee, he shall, in
classification or release of forest lands shall be null and void. addition, be dismissed from the service with prejudice to
reinstatement and with disqualification from holding any elective
or appointive office.
Section 75. Tax declaration on real property. Imprisonment for a
period of not less than two (2) nor more than four (4) years and
perpetual disqualification from holding an elective or appointive If the offender is a corporation, partnership or association, the
office, shall be imposed upon any public officer or employee who officers and directors thereof shall be liable.
shall issue a tax declaration on real property without a
certification from the Director of Forest Development and the
Section 79. Sale of wood products. No person shall sell or offer for
Director of Lands or their duly designated representatives that the
sale any log, lumber, plywood or other manufactured wood
area declared for taxation is alienable and disposable lands, unless
products in the international or domestic market unless he
the property is titled or has been occupied and possessed by
complies with grading rules and established or to be established
members of the national cultural minorities prior to July 4, 1955.
by the Government.

Section 76. Coercion and influence. Any person who coerces,


Failure to adhere to the established grading rules and standards,
influences, abets or persuades the public officer or employee
or any act of falsification of the volume of logs, lumber, or other
referred to in the two preceding sections to commit any of the
forest products shall be a sufficient cause for the suspension of
acts mentioned therein shall suffer imprisonment of not less than
the export, sawmill, or other license or permit authorizing the
one (1) year and pay a fine of five hundred (P500.00) pesos for
manufacture or sale of such products for a period of not less than
every hectare or a fraction thereof so improperly surveyed,
two (2) years.
classified or released.

A duly accredited representative of the Bureau shall certify to the


Section 77. Unlawful possession of implements and devices used
compliance by the licensees with grading rules.
by forest officers. Imprisonment for a period of not less than (2)
nor more than four (4) years and a fine of not less than one
thousand pesos (P1,000.00), nor more than ten thousand Every dealer in lumber and other building material covered by this
(P10,000.00) pesos in addition to the confiscation of such Code shall issue an invoice for each sale of such material and such
implements and devices, and the automatic cancellation of the invoice shall state that the kind, standard and size of material sold
license agreement, lease, license or permit, if the offender is a to each purchaser in exactly the same as described in the invoice.
holder thereof, shall be imposed upon any person who shall, Any violation of this Section shall be sufficient ground for the
without authority from the Director or his authorized suspension of the dealer's license for a period of not less than two
representative, make, manufacture, or has in his possession any (2) years and, in addition thereto, the dealer shall be punished for
government marking, hatchet or other marking implement, or any each such offense by a fine of not less than two hundred pesos
marker, poster, or other devices officially used by officers of the (P200.00) or the total value of the invoice, whichever is greater.
Bureau for the marking or identification of timber or other
products, or any duplicate, counterfeit, or imitation thereof, or Section 80. Arrest; Institution of criminal actions. A forest officer
make or apply a government mark on timber or any other forest or employee of the Bureau shall arrest even without warrant any
products by means of any authentic or counterfeit device, or alter, person who has committed or is committing in his presence any of
deface, or remove government marks or signs, from trees, logs, the offenses defined in this Chapter. He shall also seize and
stumps, firewoods or other forest products, or destroy, deface, confiscate, in favor of the Government, the tools and equipment
remove or disfigure any such mark, sign, poster or warning notices used in committing the offense, and the forest products cut,
set by the Bureau to designate the boundaries of cutting areas,
gathered or taken by the offender in the process of committing NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
the offense. The arresting forest officer or employee shall Philippines, by virtue of the powers vested in me by the
thereafter deliver within six (6) hours from the time of arrest and Constitution, do hereby degree that:
seizure, the offender and the confiscated forest products, tools
and equipment to, and file the proper complaint with, the
SECTION 1. Section 80 of Presidential Decree No. 705 is amended
appropriate official designated by law to conduct preliminary
to read as follows:
investigations and file informations in court.

"Sec. 80. Arrest: institution of criminal actions. -


If the arrest and seizure are made in the forests, far from the
authorities designated by law to conduct preliminary
investigations, the delivery to, and filing of the complaint with, the A forest officers or employee of the Bureau or any personnel of
latter shall be done within a reasonable time sufficient for the Philippines Constabulary/ Integrated National Police shall
ordinary travel from the place of arrest to the place of delivery. arrest even without warrant any person who has committed or
The seized products, materials and equipment shall be committing in his presence any of the offenses defined in this
immediately disposed of in accordance with forestry Chapter. He shall also seize and confiscate, in favor of the
administrative orders promulgated by the Department Head. Government, the tools and equipment used in committing the
offense, and the forest products cut, gathered or taken by the
offender in the process committing the offense. The arresting
The Department Head may deputize any member or unit of the
forest officer or employee shall thereafter deliver within six (6)
Philippine Constabulary, police agency, barangay or barrio official,
hours from the time of arrest and seizure, the offender and the
or any qualified person to protect the forest and exercise the
confiscated forest product, tools and equipment and file the
power or authority provided for in the preceding paragraph.
proper complaint with, the appropriate official designated by law
to conduct preliminary investigation and file information in Court.
Reports and complaints regarding the commission of any of the
offenses defined in this Chapter, not committed in the presence of
If the arrest and seizure are made in the forest, far from the
any forest officer or employee, or any of the deputized officers or
authorities designated by the law to conduct preliminary
officials, shall immediately be investigated by the forest officer
investigations, the delivery to, and filing of the complaint with, the
assigned in the area where the offense was allegedly committed,
latter shall be done within a reasonable time sufficient to the
who shall thereupon receive the evidence supporting the report
place of delivery. The seized products, materials and equipment
or complaint.
shall be immediately disposed of in accordance with forestry
administrative orders promulgated by the Department Head.
If there is prima facie evidence to support the complaint or report,
the investigating forest officer shall file the necessary complaint
The Department Head may deputized any agency, Bering or barrio
with the appropriate official authorized by law to conduct a
official, or any qualified person to protect the forest and exercise
preliminary investigation of criminal cases and file an information
the power or authority provided for in the preceding paragraph.
in Court.

Reports and complaints regarding the commission of any of the


PD No. 1775: AMENDING SECTION EIGHTY OF PRESIDENTIAL
offenses defined in this Chapter, not committed in the presence of
DECREE NUMBERED SEVEN HUNDRED FIVE, AS AMENDED,
any forest officer or employee, or any personnel of the Philippine
OTHERWISE KNOWN AS THE "REVISED FORESTRY CODE OF
Constabulary/Integrated National Police or any of the deputized
THE PHILIPPINES."
officers of officials, shall immediately be investigated by the forest
officer assigned in the area or any personnel of the Philippine
Constabulary/Integrated National Police where the offense was
WHEREAS, it is of common knowledge that only few criminal cases allegedly committed, who shall thereupon receive the evidence
are being filed against violators of the forestry laws, rules and supporting the report or complaint. If there is a prima facie
regulations because of the apparent lack of manpower in the evidence to support the complaint or report the investigating
prosecuting arm of the Bureau of Forestry Development which forest officer and/ or members of the Philippine
predicament could not be feasibly augmented due to the present Constabulary/Integrated National Police shall file the necessary
economic situation of the country; complaint with the appropriate official authorized by law to
conduct a preliminary investigation of criminal case and file an
WHEREAS, it is of common knowledge that only few criminal cases information in Court."
are being filed against violators of the forestry laws, rules and
regulations because of the apparent lack of manpower in the Executive Order No. 318: PROMOTING SUSTAINABLE FOREST
prosecuting arm of the Bureau of Forestry Development which MANAGEMENT IN THE PHILIPPINES
predicament could not be feasibly augmented due to the present
economic situation of the country; WHEREAS, the Constitution provides for the protection and
advancement of the right of the people to a balanced and healthy
WHEREAS, Section 80 of the "Revised Forestry Code of the environment in accord with the rhythm and harmony of nature, to
Philippines", or any other law, rule and regulation does not protect the Filipino people from disaster like floods or landslide,
authorize members of the Philippine Constabulary/Integrated and from threats to environmental and economic security like
National Police to file complaints against forest law violators wood and water shortage, biodiversity loss, air pollution and
except when they are lawfully deputized by the Minister of drought. Likewise, it provides for the full, efficient and rights-
Agriculture and Natural Resources pursuant to the said Code; based use of natural resources to abate poverty, promote
industrialization and full employment, affirm the diverse cultures
of the Filipino, and ensure their availability to present and future the recommendation of concerned government
generations; agencies.

WHEREAS, Sustainable Forest Management (SFM) is provided in


2.2. Holistic, Sustainable and Integrated Development of Forestry
the Global Plan of implementation of the World Summit on
Resources
Sustainable Development adopted in Johannesburg, as an
international strategy for developing and managing forests;
1. The development and management of the Philippines
WHEREAS, important socio-economic and environmental changes forests and forestlands including the coastal forests
and policy reforms that directly affect the forestry sector have shall be for the highest and widest public benefit and
taken place since the issuance in 1975 of Presidential Decree No. shall be based on the inherent productive capacity and
705, otherwise known as the Revised Forestry Code of Philippines, sustainable use of these resource for the present and
and unless and until otherwise directed by Congress, there is a future generation of Filipinos.
need to provide guidance to national agencies and
instrumentalities on how to best harmonize these policy reforms 2. The priority development, protection and management
and make the forestry sector responsive to external changes, and activity of any management unit shall be the
attain SFM in the Philippines; rehabilitation of open and/or denuded, degraded,
fragile forestlands; and slope stabilization and
WHEREAS, logging or any commercial exploitation of forestry protection to address occurrence of floods, landslides
resources in old growth forests, proclaimed watersheds and other and similar ecological disasters.
areas covered by the National Integrated Protected Areas System
(NIPAS) is prohibited to ensure the perpetual existence of all 3. The establishment of tree parks, regreening
native plants and animals; and roadside planting of forest species in open and
appropriate spaces shall be prioritized to mitigate
WHEREAS, a watershed-based integrated ecosystem management worsening urban air quality and global warming.
approach is deemed appropriate for SFM due to the
interrelationships and interactions between and among the
2.3. Community-Based Forest Conservation and Development
various ecosystems of a watershed such as the uplands and
coastal areas:
1. Community-Based Forest Management (CBFM) shall be
NOW, THEREFORE, I GLORIA MACAPAGAL ARROYO, President of the primary strategy in all forest conservation and
the Republic of the Philippines, by virtue of the powers vested in development and related activities, including joint
me by the Constitution, do hereby order: ventures, production sharing and co-production; it
shall be encouraged in all private sector forestry
SECTION 1. Declaration of Policy. It shall be the Policy of the enterprises and ventures.
Government to pursue the sustainable management of forests
and forestlands in watersheds. Watersheds shall be deemed as 2. CBFM shall be a collaborative undertaking of the
ecosystem management units and shall be managed in a holistic, national government and the LGUs, local peoples,
scientific, rights-based, technology-based and community-based community organizations, civil society organizations
manner and observing the principles of multi-use, decentralization (CSOs), and private business entities.
and devolution, and active participation of local government units
(LGUs), synergism of economic, ecological, social and cultural 3. Local cultures, values, traditions, religious beliefs and
objectives, and the rational utilization of all resources found the rights of indigenous peoples to their ancestral
therein. It shall likewise be the policy of the Government to lands and domains as promoted and/or defined by
promote sound, effective and efficient, globally-competitive and existing legislation shall be recognized and respected in
equitable forestry practices in both public and private domains. all forestry undertakings of the State and the private
sector.
SECTION 2. Guiding Principles. The pursuit of these policies shall
be guided by the following principles:
2.4. Incentives for Enhancing Private Investments, Economic
2.1.Delineation, Classification and Demarcation of State Contribution and Global Competitiveness of Forest-Based
Forestlands Industries

1. The government shall provide a favorable and stable


1. State forestlands shall be identified, classified and policy and investment environment-friendly forest
delineated/demarcated on the ground and shall based industries, ensure their sustainable raw material
constitute the permanent forest estate unless supply and encourage value-added processing in-
otherwise stipulated by Congress; the same shall be country to boost rural employment and the economy.
categorized and managed either as primarily for
production or as primarily for protection purposes, and 2. Filipino entrepreneurship in forestry shall be
in both cases, placed under a formal management encouraged and supported.
scheme.
3. A package of incentives and services that are
2. Conversions of forestlands into non-forestry uses shall responsive to the development of forests in private and
be allowed only through an act of Congress and upon public forestlands shall be adopted to encourage the
development of private forests, including the
deregulation of privately-developed forests and deregulation shall be adopted, promoted and
privately-planted trees and enhancement of capacities institutionalized in the Government service.
of stakeholders to engage in private forest
development and related activities. 2. Partnerships and collaboration between and among
the DENR, NGAs/OGAs, LGUs, professional forestry
4. The development of high-value tree crops and non- organizations, local communities, civic groups, CSOs,
timber forest crops in public forestlands, private lands basic sectors, academic and other research and
and in home forest gardens shall be promoted and development institutions and other stakeholders shall
encouraged to enhance economic and ecological be promoted.
benefits and attain self-sufficiency in the countrys
wood requirements. 3. Forestry administrative systems and institutions,
including research and development, shall be upgraded
5. Incentives shall be provided to encourage co- and modernized.
management of forest resources involving national and
other government agencies (NGAs/OGAs), LGUs, CSOs, 4. Academic programs and scientific research shall be
and the private sector. harnessed to generate information, technologies and
policies that will strengthen national
2.5 Proper Valuation and Pricing of Forestry Resources and capacities for SFM under the frameworks of watershed
Financing SFM ecosystem management (WEM) and CBFM.

5. Human resources development programs for all


1. Mechanism for proper valuation and fair and stakeholders shall be rationalized and upgraded in
comprehensive pricing of forest products and services, support of SFM; forestry extension services by
including water for domestic, industrial, irrigation and NGAs/OGAs and LGU shall be upgraded and intensified
power generation, biodiversity and eco-tourism, shall and
be developed and promoted. undertaken with CSOs, to support CBFM, pirvate
forestry, forestry co-management enterprises, and the
2. Local, regional and national plow-back mechanisms of development of forest-based biodiversity.
utilizing proceeds from the use of watersheds, forests
and forestlands for ecological and environmental 6. Forest land use plans shall be incorporated by LGUs in
services such as, but not limited to power generation, their comprehensive land use plans. National
supplying domestic and irrigation water, and eco- Government agencies shall assist LGUs in this
tourism, shall be developed and promoted to finance endeavor.
forest protection, rehabilitation, and development.
7. Networks and linkages involved with local and
3. Appropriate and doable mechanisms for adopting the international institutions, CSOs, LGUs, and industries
principles of environment and natural resources involved in the promotion and practice of SFM shall be
accounting (ENRA) and watershed ecosystems as strengthened.
minimum spatial units of accounts shall be developed
and institutionalized.

4. Innovative financial systems and approaches, such as


securitization, bonds and collaborative investments,
shall be encouraged to support sustainable forest
management and enterprises and the conservation of
forest-based biodiversity in the Philippines.

5. Government investments in and out-sourced financing


for forest development such as the application of clean
development mechanism (CDM) shall be prioritized in EO No . 263: ADOPTING COMMUNITY-BASED FOREST
favor of forestlands that serve a significantly large MANAGEMENT AS THE NATIONAL STRATEGY TO ENSURE THE
population such as critical watersheds and/or which SUSTAINABLE DEVELOPMENT OF THE COUNTRY'S FORESTLANDS
serve to reduce poverty and inequitable access to RESOURCES AND PROVIDING MECHANISMS FOR ITS
forests such as those under CBFM and/or co- IMPLEMENTATION
management by NGAs/OGAs, LGUs, industries, CSOs,
and local communities.
WHEREAS, Article II, Section 16 of the 1987 Constitution provides
for the protection and advancement of the right of the Filipino
2.6. Institutional Support for SFM people, both men and women, to a healthful and balanced
ecology;
1. The principles and practices of good governance such
as transparency, accountability and participatory WHEREAS, Article II, Section 10 provides for the promotion of
decision-making, in transactions, decisions and actions social justice to all citizens in all phases of national development;
affecting forestry, in all levels, and the policy of
streamlining, decentralization, devolution and
WHEREAS, Article XIV, Section 17 mandates the State to recognize President, Committee on Flagship Programs and Projects of the
and respect the rights of the indigenous peoples to their ancestral Office of the President; Presidential Management Staff under the
domains and consider their customs, traditions and beliefs in the Office of the President; Cooperative Development Authority, and
formulation of laws and policies; Offices of Northern and Southern Cultural Communities. The
Committee may invite representatives from the Philippine
Chamber of Commerce, Philippine Wood Products Association,
WHEREAS, Executive Order No. 192, series of 1987, mandates the
NGO coalition groups, and other public and private organizations
Department of Environment and Natural Resources (DENR) as the
to become members of the Steering Committee. The Committee
primary government agency responsible for the sustainable
shall formulate and develop policy guidelines that will create
management and development of the country's natural resources;
incentives and conditions necessary to effectively carry out
community-based forest management strategy. Accordingly,
WHEREAS, the Philippines 2000 and the government's Social members of the CBFM Steering Committee should, at least, be
Reform Agenda support people empowerment and the full, represented by concerned Assistant Secretaries or heads of
meaningful and indispensable participation of communities as bureaus and agencies.
immediate stakeholders of the forestland resources in the
protection and management of the forest ecosystem;
Sec. 6. The DENR shall work with local governments, people's
organizations (POs), non-government organizations (NGOs),
WHEREAS, the 25-year Master Plan for Forestry Development also religious groups, business and industry, and other concerned
recognizes the indispensable role of local communities in forest organizations to ensure that communities are empowered to
protection, rehabilitation, development and management, and initiate and achieve the objectives of this Order.
targets the protection, rehabilitation, management, and utilization
of at least 4 million hectares of forestlands, through the
Sec. 7. In its budget preparation, the DENR shall allot adequate
community-based forest management strategy;
funds to effectively accomplish CBFM targets and shall seek
supplementary funding from local and foreign supporting agencies
WHEREAS, entrusting the responsibility for forest rehabilitation, and organizations. DENR shall ensure the inclusion of budgetary
protection, and conservation to the community of stakeholders allocation for CBFM in the annual General Appropriations Act,
and affording them equitable access to the forest and coastal pending the passage of the revised Forestry Code.
resources are viable forestland management strategies as borne
by the experience of the DENR and various supporting agencies;
Sec. 8. The DENR shall establish a Community-based Forest
Management Special Account (CBFMSA) to support the
NOW, THEREFORE, I FIDEL V. RAMOS, President of the Philippines, implementation of the strategy and provide financial and
by virtue of the powers vested in me by law, do hereby order that: professional incentive system for deserving communities and
government personnel.
Sec. 1. Community-based forest management (herein referred to
as CBFM) shall be the national strategy to achieve sustainable Sec. 9. The DENR may source local and international grants and
forestry and social justice. donations for the establishment of the CBFM Special Account.
Other sources of fund may later be determined by the CBFM
Sec. 2. The DENR, through its Community and Provincial Steering Committee subject to existing government regulations.
Environment and Natural Resource Offices, in coordination with
the local government units and the Department of Interior and Sec. 10. The DENR shall support and set up jointly with relevant
Local Government (DILG) shall, at all times, take into account the colleges and universities, private and public organizations,
needs and aspirations of local communities whose livelihood arrangements for a community forestry training program for
depends on the forestlands. members of participating units, such as people's organizations,
non-government organizations, local government units, and other
Sec. 3. Participating organized communities may be granted access government personnel.
to the forestland resources under long term tenurial agreements,
provided they employ environment-friendly, ecologically- Sec. 11. Within six months after the signing of this Order, the
sustainable, and labor-intensive harvesting methods. Such DENR, in consultation with government financial institutions, such
harvesting methods shall be mentioned under a site-specific as the Development Bank of the Philippines (DBP), the Land Bank
management plan of each recipient community and duly of the Philippines (LBP), GSIS and the SSS, shall effect the creation
approved by the DENR. of favorable financing mechanisms for access by communities and
organizations in the pursuit of the CBFM strategy and its sub-
Sec. 4. The indigenous peoples may participate in the strategies such as community training and empowerment,
implementation of CBFM activities in recognition of their rights to enterprise development, agroforestry development, tree
their ancestral domains and land rights and claims. plantations, and other non-forest-based alternative livelihood
systems.

Sec. 5. A CBFM Steering Committee shall be created immediately


and headed by the DENR with members from the Departments of Sec. 12. The DENR Secretary shall issue new rules, regulations,
Agriculture, Trade and Industry, Agrarian Reform, Finance, Science procedures, and guidelines necessary to implement this Order and
and Technology, Labor and Employment, Interior and Local repeal or modify existing ones consistent with the policies set
Government, Budget and Management, National Defense and forth by the CBFM Steering Committee.
Justice; National Economic Development and Authority; Philippine
Commission on Countrywide Development under the Office of the
Sec. 13. The DENR Secretary shall, within six months from the (c) is an industrial tree farmer;
signing of this Order, submit to the Office of the President, a
National Comprehensive Community Forestry Action Plan, which
(d) is a licensed wood processor and the chain saw
embodies the Department's short, medium and long-term plans.
shall be used for the cutting of timber that has been
The action plan shall be discussed and approved by the CBFM
legally sold to said applicant; or
Steering Committee prior to its submission to the President.

(e) shall use the chain saw for a legal purpose.


Sec. 14. All previous executive and administrative issuances which
are inconsistent herewith are repealed or amended accordingly.
Agencies of the government that use chain saws in some aspects
of their functions must likewise secure the necessary permit from
the Department before operating the same.

Republic Act No. 9175 : Chain Saw Act of 2002


Section 6. Registration of Chain Saws. - Within a period of three
(3) months from the effectivity hereof, all persons who own or are
Section 2. Declaration Policy. It is the policy of the State otherwise in possession of chain saws must register the same with
consistent with the Constitution, to conserve, develop and protect the Department, through any of its Community Environment and
the forest resources under sustainable management. Toward this Natural Resources Office, which shall issue the corresponding
end, the State shall pursue an aggressive forest protection registration certificate or permit if it finds such persons to be
program geared towards eliminating illegal logging and other qualified hereunder.
forms of forest destruction which are being facilitated with the
use of chain saws. The State shall therefore regulate the
Every permit to possess and/or use a chain saw for legitimate
ownership, possession, sale, transfer, importation and/or use of
purpose shall be valid for two (2) years upon issuance: Provided,
chain saws to prevent them from being used in illegal logging or
That permits to possess and use chainsaw issued to non-
unauthorized clearing of forests.
commercial orchard and fruit tree farmers shall be valid for a
period of five (5) years upon issuance. For this purpose, the
Section 3. Definition of Terms. - As used in this Act, the term: Department shall be allowed to collect reasonable registration
fees for the effective implementation of this Act.
(a) "Chain saw" shall refer to any portable power saw
or similar cutting implement, rendered operative by an Section 7. Penal Provisions. -
electric or internal combustion engine or similar
means, that may be used for, but is not limited to, the
(a) Selling, Purchasing, Re-selling, Transferring,
felling of trees or the cutting of timber;
Distributing or Possessing a Chain Saw Without a
Proper Permit. - Any person who sells, purchases,
(b) "Chain saw dealer" shall refer to a person, natural transfer the ownership, distributes or otherwise
or juridical, engaged in the manufacture, importation, disposes or possesses a chain saw without first
distribution, purchase and/or sale of chain saws; securing the necessary permit from the Department
shall be punished with imprisonment of four (4) years,
two (2) months and one (1) day to six (6) years or a fine
(c) "Department" shall refer to the Department of
of not less than Fifteen thousand pesos (P15,000.00)
Environment and Natural Resources; and
but not more Thirty thousand pesos (30,000.00) or
both at the discretion of the court, and the chain saw/s
(d) "Secretary" shall refer to the Secretary of the confiscated in favor of the government.
Department of Environment and Natural Resources.
(2) Unlawful Importation or Manufacturing of Chain
Section 4. Persons Authorized to Manufacturer, Sell and Import Saw. - Any person who imports or manufactures a
Chain Saws. - Chain saws shall only be sold and/or imported by chain saw without obtaining prior authorization from
manufacturers, dealers and/or private owners who are duly the Department shall be punished by imprisonment of
authorized by the Department. not less than one (1) month nor more than six (6)
months and a fine of not less than One thousand pesos
Section 5. Persons Authorized to Possess and Use a Chain Saw. - (P1,000.00) for more than Four thousand pesos
The Department is hereby authorized to issue permits to possess (P4,000.00).
and/or use a chain saw for the felling land/or cutting of trees,
timber and other forest or agro-forest products to any applicant (3) Tampering of Engine Serial Number. - Any person
who: who is found to have defaced or tampered with the
original registered engine serial number of any chain
(a) has a subsisting timber license agreement, saw unit shall be punished by imprisonment of not less
production sharing agreement, or similar agreements, than one (1) month nor more than six (6) months and a
or a private land timber permit; fine of not less than One thousand pesos (P1,000.00)
nor more than Four thousand pesos (P4,000.00).

(b) is an orchard and fruit tree farmer;


(4) Actual Unlawful Use of Chain Saw. - Any person
who is found to be in possession of a chain saw and
uses the same to cut trees and timber in forest land or two (2) of the five (5) senators and two (2) of the five (5) House
elsewhere except as authorized by the Department members shall be nominated by the respective Minority Leaders
shall be penalized with imprisonment of six (6) years of the Senate and the House of Representatives.
and one (1) day to eight (8) years or a fine of not less
that Thirty thousand pesos (P30,000.00) but not more
than Fifty thousand pesos (P50,000.00) or both at the
discretion of the court without prejudice to being
prosecuted for a separate offense that may have been
simultaneously committed. The chain saw unlawfully
used shall be likewise confiscated in favor of the
government.

If the violation under this Section is committed by or through the


command or order of another person, partnership or corporation,
the penalties herein provided shall likewise be imposed on such
other person, or the responsible officer(s) in such partnership or
corporation.

If the offender is a public official or employee, in addition to the


above penalties, he shall be removed from office and perpetually
disqualified from holding any public office.

The chain saws confiscated under this Section shall be sold at


public auction to qualified buyers and the proceeds thereof shall
go to the Department.

Section 8. Reward. - Any person who voluntarily gives information


leading to the recovery or confiscation of an unregistered chain
saw and the conviction of persons charged thereof shall be
entitled to a reward equivalent to twenty person (20%) of the
value of the chain saw unit(s). The Department is authorized to
include in its budget the amount necessary to carry out the
purpose of this Section.

Section 9. Authority of the Secretary. - To effectively implement


the provisions of this Act, the Secretary shall issue the
implementing rules and regulations within ninety (90) days upon
approval of this Act. He shall likewise organize an office within the
Department to ensure that requirements imposed by this Act may
be complied with by qualified persons, within the shortest
possible time, at the least possible expense.

In the Province of Palawan, the provisions of this Act shall be


implemented by the Palawan Council for Sustainable
Development pursuant to Republic Act No. 7611 or the Strategic
Environmental Plan for Palawan.

Section 10. Revocation of Registration and Permit. - The Secretary


may revoke any Certificate of Registration or permit previously
issued to a person found violating the provisions of this Act, or the
rules and regulations issued pursuant thereto.

Section 11. Joint Congressional Oversight Committee. - To monitor


and oversee the implementation of this Act, including the
approval of the rules and regulations issued pursuant hereto,
there is hereby created a Joint Congressional Oversight Committee
to be composed of the Chairpersons of the Senate Committee on
Environment and Natural Resources and the House Committee on
Natural Resources as Chairperson and Co-Chairperson, five (5)
members of each of the Senate and the House of Representatives
who shall be designated by the Senate President and the Speaker
of the House of Representatives as members: Provided, That the