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April 1, 1997


Atty. Alberto L. Pangcog
VP — General Counsel
National Power Corporation
Corner Quezon Avenue
Diliman, Quezon City

Dear Mr. Pangcog:
This refers to your letter regarding the property situated
at Brgy. Mayabobo, Candelaria, Quezon of Ellice Agro Industrial
Corporation which was compulsorily acquired and distributed
to qualified agrarian beneficiaries. When the NPC constructed
its transmission towers and lines it traversed the subject
landholdings. In this connection, you posed the query of "who
are, entitled to the value of improvements and coconut trees
damaged in the construction of the transmission lines".
Atty. Rolando R. Roldan, Attorney V, of the Provincial
Agrarian Reform Office of Quezon rendered an opinion to the
effect that "in case of acquisition of right of way for public use,
it is indispensable that indemnity or compensation thereof
should be paid to the owner of the property at the time of the
taking". The aforesaid opinion further declared that the
agrarian reform beneficiaries are the rightful recipients of the
indemnity by reason of said construction since the "ownership
of the beneficiaries over the property in issue is reckoned from
the time the DAR makes an award of the land to them" which
according to you the award shall be computed (sic) within one
hundred eighty (180) days from the time the DAR takes actual
possession of the land. You are of the belief that the 180 day
period shall be counted from the time the DAR takes actual
possession of the subject property which shall take place as
enunciated under paragraph (e), Section 16 of R.A. No. 6657.
Said provision of law provides: "upon receipt by the landowner
of the corresponding payment or in case of rejection or no
response from the landowner upon the deposit with an

that it did not as yet receive any payment and therefore no award of the subject land to the beneficiaries has taken place following the mandate of Sections 24 and par.A. Please be guided accordingly. 6657. The DAR shall thereafter proceed with the redistribution of the land to the qualified beneficiaries. this Office concurs with the action taken by our field lawyer. Copy furnished: PARO Danilo M. No. Bernardo DARRO Pasig City .A. 6657. Eugenio B. Pagbilao. Ellice Agro Industrial Corporation. Section 16 of R. Quezon Dir. You now ask whether the Opinion rendered binds the Department of Agrarian Reform. It is of no doubt then that when said construction of the power lines over the subject property transpired. the DAR shall take immediate possession of the land and shall request the proper Register of Deeds to issue a Transfer Certificate of Title (TCT) in the name of the Republic of the Philippines. 6657." It is in this instance that you doubt the opinion considering that you were informed by the original owner. This signifies that the subject property was lawfully taken by the DAR for distribution to the qualified beneficiaries. the same was already owned by the beneficiaries as evidenced by the CLOAs issued to them and registered in their names by the Registry of Deeds thus they should be the persons to be paid the damages as owners thereof. We wish to inform you that as per records. (e). No. Orbase DAR. Furthermore. relying on Section 28 of R. Section 16 of R.accessible bank designated by the DAR of the compensation in cash or in LBP bonds in accordance with this Act.A. Ellice Agro Industrial Corporation. No. in cash and LBP bonds pursuant to paragraph (e). Consequently. a Certification of Payment dated 23 September 1994 was issued by the LBP which paid the landowner. you imply that it is thus incumbent that the landowner shall retain ownership over the standing crops at the time of acquisition.

Quezon City P.O Box 10183 Dear Mr. Alberto Pangcog VP-General Counsel National Power Corporation cor. plus the value of the coco lumber introduced by the landowners. Quezon Avenue and Agham Road Diliman. that the tenants and the landowners agreed as to which improvements were introduced by them. to the exclusion of the landowners.387 sq. and the fact that the .. Pangcog: This has reference to your request for opinion regarding the sharing between the landowner and the tenants of the value of the improvements damaged in the construction of the transmission line of the area traversed by the project of NPC. that a portion thereof. 1996 DAR OPINION NO. consisting of 30. that the tenants did not agree but instead demanded that NPC should pay them 100% of the improvements. You state that you were informed that the land is under CARP coverage. 63-96 Mr. that easement of "right-of-way" over the said property was granted by the owner under a "right-of-way" grant in favor of the NPC. that since only easement of right-of-way is acquired over the property.August 2. m. was traversed by the Tayabas-Dasmarinas 500 KV Transmission Line Project. that the landowners signified their willingness to share with the tenants or pay 50% of the value of improvements introduced by them. although no official award has been made to the tenants affected. Considering that the matter treated therein involves factual issues that must be verified. ownership remains with the landowner and the land can still be used for agricultural purposes.

we have referred the matter to the Regional Director. Instead.) LORENZO involved falls within CARP coverage. Tabones DAR Region IV Capitol Compound. REYES OIC-Undersecretary LAFMA Copy furnished: Dir. Very truly yours. (SGD. for appropriate action (copy of Memorandum attached). Remegio A. Attn. Pasig City . we decline to render an opinion thereon.: the PARO.

Series of 2002 (2002 Comprehensive Rules on Land Use Conversion). III Pedmar Bldg. more or less. that per their letters-reply dated 20 February 2003 and 17 July 2003. Hermosa. 1.8 hectares in Brgy. has signified his intention to exempt the property from coverage under the following reasons: a) that a portion of the property has more than 18% slope. b) that an area of 4. 128 and which will be developed by Subic Hermosa Cyber City Development Corporation into Subic Hermosa Cyber City. has been developed into a livelihood center used by the Technology and Livelihood Resource Center (TLRC) which has four (4) existing warehouses now fully occupied. Meily. situated at Brgy. ASTcEa Director Herrera stated. 1999 pursuant to Proclamation No.. that in addition to the foregoing reasons. Mr. requesting for legal opinion on whether or not the property of Mr. 25-03 MEMORANDUM TO : The Regional Director DAR Regional Office No. Bataan with an area of 57. that a notice of coverage under CARP of said property was sent by the MARO of Hermosa.15 hectares may be exempted from CARP Coverage or from the usual conversion clearance under DAR Administrative Order No. Pampanga SUBJECT : Request for Legal Opinion This refers to the letter of Director Renato F. Culis.2 hectares.15 hectares is part of the Special Economic Zone of 92. Culis. Wilfredo L. Vice-President for Operations of Subic Hermosa Cyber City Development Corporation. an industrial park project duly registered with PEZA. David. 2003 DAR OPINION NO. Dolores San Fernando. Bataan dated 27 August 2002.December 16. among others. Hermosa. et al. Herrera dated 01 October 2003. the following .. Bataan as proclaimed by then President Joseph Estrada on June 28. c) that the area of 57.

pertinent are the provisions of DAR Administrative Order No. pursuant to RA 7916. 1997) and concurred by the Sangguniang Panlalawigan Under Resolution No. Thus. and EO-258-2000. 1998 which declared the 886. 159 dated August 3. Series of 2002 (2002 Comprehensive Rules on Land Use Conversion): "Section 6. Nonetheless. then this opinion shall be considered null and void. Relating to the issue posed in letter. DAR shall act with dispatch should or once an application is filed.1. Bataan (Kapasiyan Bilang 97022 issued March 3. Culis. This opinion is rendered on the basis of the facts presented. Priority Development Areas and Projects — 6." Please be informed that conversion or exemption is not automatic. However. 3) DENR Environmental Compliance Certificate (ECC) issued August 18.66 hectares of land in Brgys. since the landholding appears to be a priority development area. Palihan and Sumalo as an Economic Zone or Industrial Zone (Subic Hermosa Cyber City is part of the 886. 2) Development Permit. We hope to have clarified the matter and please be guided accordingly. an application for and order of conversion or exemption is still required. 01.certifications and supporting documents were submitted: 1) resolution of the Sangguniang Bayan of Hermosa. as the case may be. and that in this regard Director Herrera is now seeking for a legal opinion. . It must be on the merits after proper and thorough determination pursuant to the requirements and provisions of existing law and guidelines on conversion and/or exemption. 1999. the following are priority development areas for land conversion: xxx xxx xxx 6. and 5) Certificate of Registration from the Philippine Economic Zone Authority (PEZA). Locational Clearance and License to Sell issued by the HLURB. 4) Barangay Certification that the property is unirrigated and untenanted. endorsed by Philippine Economic Zone Authority (PEZA).66 hectares).3 Agricultural areas intended for Eco Zone Projects. Pandatung. In accordance with RA 7916. EO-124-1993.1. if upon investigation it will be disclosed that the facts are different.

(SGD.) RICARDO S. Planning and Legal Affairs Office . ARLANZA Undersecr etary for Policy.