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ENVIRONMENTAL LAW economy, the State shall cooperate with the global community in the

From the course outline of Atty. Jeffrey Jefferson Y. Coronel resolution of climate change issues, including disaster risk reduction. It shall
2nd Semester | A.Y. 2013 - 2014 be the policy of the State to enjoin the participation of national and local
governments, businesses, nongovernment organizations, local communities
REPUBLIC ACT NO. 9729 and the public to prevent and reduce the adverse impacts of climate change
and, at the same time, maximize the benefits of climate change. It shall also
AN ACT MAINSTREAMING CLIMATE CHANGE INTO GOVERNMENT be the policy of the State to incorporate a gender-sensitive, pro-children
POLICY FORMULATIONS, ESTABLISHING THE FRAMEWORK and pro-poor perspective in all climate change and renewable energy
STRATEGY AND PROGRAM ON CLIMATE CHANGE, CREATING FOR efforts, plans and programs. In view thereof, the State shall strengthen,
THIS PURPOSE THE CLIMATE CHANGE COMMISSION, AND FOR integrate, consolidate and institutionalize government initiatives to achieve
OTHER PURPOSES coordination in the implementation of plans and programs to address
climate change in the context of sustainable development.
Section 1. Title. – This Act shall be known as the “Climate Change Act
of 2009”. 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
Section 2. Declaration of Policy. – It is the policy of the State to afford full
into climate change programs and initiatives.
protection and the advancement of the right of the people to a healthful
ecology in accord with the rhythm and harmony of nature. In this light, the
State has adopted the Philippine Agenda 21 framework which espouses Cognizant of the need to ensure that national and subnational government
sustainable development, to fulfill human needs while maintaining the policies, plans, programs and projects are founded upon sound
quality of the natural environment for current and future generations. 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,
Towards this end, the State adopts the principle of protecting the climate
development plans, poverty reduction strategies and other development
system for the benefit of humankind, on the basis of climate justice or
tools and techniques by all agencies and instrumentalities of the
common but differentiated responsibilities and the Precautionary Principle to
government.
guide decision-making in climate risk management. As a party to the United
Nations Framework Convention on Climate Change, the State adopts the
ultimate objective of the Convention which is the stabilization of greenhouse Section 3. Definition of Terms. – For purposes of this Act, the following
gas concentrations in the atmosphere at a level that would prevent shall have the corresponding meanings:
dangerous anthropogenic interference with the climate system which should
be achieved within a time frame sufficient to allow ecosystems to adapt (a) “Adaptation” refers to the adjustment in natural or human
naturally to climate change, to ensure that food production is not systems in response to actual or expected climatic stimuli or their
threatened and to enable economic development to proceed in a effects, which moderates harm or exploits beneficial opportunities.
sustainable manner.1awphil As a party to the Hyogo Framework for Action,
the State likewise adopts the strategic goals in order to build national and (b) “Adaptive capacity” refers to the ability of ecological, social or
local resilience to climate change-related disasters. economic systems to adjust to climate change including climate
variability and extremes, to moderate or offset potential damages
Recognizing the vulnerability of the Philippine archipelago and its local and to take advantage of associated opportunities with changes in
communities, particularly the poor, women, and children, to potential climate or to cope with the consequences thereof.
dangerous consequences of climate change such as rising seas, changing
landscapes, increasing frequency and/or severity of droughts, fires, floods (c) “Anthropogenic causes” refer to causes resulting from
and storms, climate-related illnesses and diseases, damage to ecosystems, human activities or produced by human beings.
biodiversity loss that affect the country’s environment, culture, and
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(d) “Climate Change” refers to a change in climate that can be (k) “Greenhouse effect” refers to the process by which the
identified by changes in the mean and/or variability of its properties absorption of infrared radiation by the atmosphere warms the
and that persists for an extended period typically decades or longer, Earth.
whether due to natural variability or as a result of human activity.
(l) “Greenhouse gases (GHG)” refers to constituents of the
(e) “Climate Variability” refers to the variations in the average atmosphere that contribute to the greenhouse effect including, but
state and in other statistics of the climate on all temporal and not limited to, carbon dioxide, methane, nitrous oxide,
spatial scales beyond that of individual weather events. hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride.

(f) “Climate Risk” refers to the product of climate and related (m) “Mainstreaming” refers to the integration of policies and
hazards working over the vulnerability of human and natural measures that address climate change into development planning
ecosystems. and sectoral decision-making.

(g) “Disaster” refers to a serious disruption of the functioning of a (n) “Mitigation” in the context of climate change, refers to human
community or a society involving widespread human, material, intervention to address anthropogenic emissions by sources and
economic or environmental losses and impacts which exceed the removals by sinks of all GHG, including ozone- depleting substances
ability of the affected community or society to cope using its own and their substitutes.
resources.
(o) “Mitigation potential” shall refer to the scale of GHG
(h) “Disaster risk reduction” refers to the concept and practice reductions that could be made, relative to emission baselines, for a
of reducing disaster risks through systematic efforts to analyze and given level of carbon price (expressed in cost per unit of carbon
manage the causal factors of disasters, including through reduced dioxide equivalent emissions avoided or reduced).
exposure to hazards, lessened vulnerability of people and property,
wise management of land and the environment, and improved (p) “Sea level rise” refers to an increase in sea level which may
preparedness for adverse events. be influenced by factors like global warming through expansion of
sea water as the oceans warm and melting of ice over land and
(i) “Gender mainstreaming” refers to the strategy for making local factors such as land subsidence.
women’s as well as men’s concerns and experiences an integral
dimension of the design, implementation, monitoring, and (q) “Vulnerability” refers to the degree to which a system is
evaluation of policies and programs in all political, economic, and susceptible to, or unable to cope with, adverse effects of climate
societal spheres so that women and men benefit equally and change, including climate variability and extremes. Vulnerability is a
inequality is not perpetuated. It is the process of assessing the function of the character, magnitude, and rate of climate change
implications for women and men of any planned action, including and variation to which a system is exposed, its sensitivity, and its
legislation, policies, or programs in all areas and at all levels. adaptive capacity.

(j) “Global Warming” refers to the increase in the average Section 4. Creation of the Climate Change Commission. – There is hereby
temperature of the Earth’s near-surface air and oceans that is established a Climate Change Commission, hereinafter referred to as the
associated with the increased concentration of greenhouse gases in Commission.
the atmosphere.
The Commission shall be an independent and autonomous body and shall
have the same status as that of a national government agency. It shall be
attached to the Office of the President.
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The Commission shall be the sole policy-making body of the government (l) Secretary of the Department of Trade and Industry;
which shall be tasked to coordinate, monitor and evaluate the programs and
action plans of the government relating to climate change pursuant to the (m) Secretary of the Department of Transportation and
provisions of this Act. Communications;

The Commission shall be organized within sixty (60) days from the (n) Director-General of the National Economic and Development
effectivity of this Act. Authority, in his capacity as Chair of the Philippine Council for
Sustainable Development;
Section 5. Composition of the Commission. – The Commission shall be
composed of the President of the Republic of the Philippines who shall serve (o) Director-General of the National Security Council;
as the Chairperson, and three (3) Commissioners to be appointed by the
President, one of whom shall serve as the Vice Chairperson of the (p) Chairperson of the National Commission on the Role of Filipino
Commission. Women;

The Commission shall have an advisory board composed of the following: (q) President of the League of Provinces;

(a) Secretary of the Department of Agriculture; (r) President of the League of Cities;

(b) Secretary of the Department of Energy; (s) President of the League of Municipalities;

(c) Secretary of the Department of Environment and Natural (t) President of the Liga ng mga Barangay;
Resources;
(u) Representative from the academe;
(d) Secretary of the Department of Education;
(v) Representative from the business sector; and
(e) Secretary of the Department of Foreign Affairs;
(w) Representative from nongovernmental organizations.
(f) Secretary of the Department of Health;
At least one (1) of the sectoral representatives shall come from the disaster
(g) Secretary of the Department of the Interior and Local risk reduction community.
Government;
The representatives shall be appointed by the President from a list of
(h) Secretary of the Department of National Defense, in his capacity nominees submitted by their respective groups. They shall serve for a term
as Chair of the National Disaster Coordinating Council; of six (6) years without reappointment unless their representation is
withdrawn by the sector they represent. Appointment to any vacancy shall
(i) Secretary of the Department of Public Works and Highways; be only for the unexpired term of the predecessor.

(j) Secretary of the Department of Science and Technology; Only the ex officio members of the advisory board shall appoint a qualified
representative who shall hold a rank of no less than an Undersecretary.
(k) Secretary of the Department of Social Welfare and
Development;
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Section 6. Meetings of the Commission. – The Commission shall meet once (a) Ensure the mainstreaming of climate change, in synergy with
every three (3) months, or as often as may be deemed necessary by the disaster risk reduction, into the national, sectoral and local
Chairperson. The Chairperson may likewise call upon other government development plans and programs;
agencies for the proper implementation of this Act.
(b) Coordinate and synchronize climate change programs of
Section 7. Qualifications, Tenure, Compensation of Commissioners. – The national government agencies;
Commissioners must be Filipino citizens, residents of the Philippines, at least
thirty (30) years of age at the time of appointment, with at least ten (10) (c) Formulate a Framework Strategy on Climate Change to serve as
years of experience on climate change and of proven honesty and ntegrity. the basis for a program for climate change planning, research and
The Commissioners shall be experts in climate change by virtue of their development, extension, and monitoring of activities on climate
educational background, training and experience: Provided, That at least change;
one (1) Commissioner shall be female: Provided, further, That in no case
shall the Commissioners come from the same sector: Provided, finally, That (d) Exercise policy coordination to ensure the attainment of goals
in no case shall any of the Commissioners appoint representatives to act on set in the framework strategy and program on climate change;
their behalf.
(e) Recommend legislation, policies, strategies, programs on and
The Commissioners shall hold office for a period of six (6) years, and may appropriations for climate change adaptation and mitigation and
be subjected to reappointment: Provided, That no person shall serve for other related activities;
more than two (2) consecutive terms: Provided, further, That in case of a
vacancy, the new appointee shall fully meet the qualifications of a
(f) Recommend key development investments in climate- sensitive
Commissioner and shall hold office for the unexpired portion of the term
sectors such as water resources, agriculture, forestry, coastal and
only: Provided, finally, That in no case shall a Commissioner be designated
marine resources, health, and infrastructure to ensure the
in a temporary or acting capacity.
achievement of national sustainable development goals;

The Vice Chairperson and the Commissioners shall have the rank and
(g) Create an enabling environment for the design of relevant and
privileges of a Department Secretary and Undersecretary, respectively. They
appropriate risk-sharing and risk-transfer instruments;
shall be entitled to corresponding compensation and other emoluments and
shall be subject to the same disqualifications.
(h) Create an enabling environment that shall promote broader
multi-stakeholder participation and integrate climate change
Section 8. Climate Change Office. – There is hereby created a Climate
mitigation and adaptation;
Change Office that shall assist the Commission. It shall be headed by a Vice
Chairperson of the Commission who shall act as the Executive Director of
the Office. The Commission shall have the authority to determine the (i) Formulate strategies on mitigating GHG and other anthropogenic
number of staff and create corresponding positions necessary to facilitate causes of climate change;
the proper implementation of this Act, subject to civil service laws, rules and
regulations. The officers and employees of the Commission shall be (j) Coordinate and establish a close partnership with the National
appointed by the Executive Director. Disaster Coordinating Council in order to increase efficiency and
effectiveness in reducing the people’s vulnerability to climate-
Section 9. Powers and Functions of the Commission. – The Commission related disasters;
shall have the following powers and functions:
(k) In coordination with the Department of Foreign Affairs,
represent the Philippines in the climate change negotiations;

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(l) Formulate and update guidelines for determining vulnerability to The Framework shall be formulated based on climate change vulnerabilities,
climate change impacts and adaptation assessments and facilitate specific adaptation needs, and mitigation potential, and in accordance with
the provision of technical assistance for their implementation and the international agreements.
monitoring;
The Framework shall be reviewed every three (3) years, or as may be
(m) Coordinate with local government units (LGUs) and private deemed necessary.
entities to address vulnerability to climate change impacts of
regions, provinces, cities and municipalities; Section 12. Components of the Framework Strategy and Program on
Climate Change. – The Framework shall include, but not limited to, the
(n) Facilitate capacity building for local adaptation planning, following components:
implementation and monitoring of climate change initiatives in
vulnerable communities and areas; (a) National priorities;

(o) Promote and provide technical and financial support to local (b) Impact, vulnerability and adaptation assessments;
research and development programs and projects in vulnerable
communities and areas; and (c) Policy formulation;

(p) Oversee the dissemination of information on climate change, (d) Compliance with international commitments;
local vulnerabilities and risks, relevant laws and protocols and
adaptation and mitigation measures.
(e) Research and development;

Section 10. Panel of Technical Experts. – The Commission shall constitute


(f) Database development and management;
a national panel of technical experts consisting of practitioners in disciplines
that are related to climate change, including disaster risk reduction.
(g) Academic programs, capability building and mainstreaming;
The Panel shall provide technical advice to the Commission in climate
science, technologies, and best practices for risk assessment and (h) Advocacy and information dissemination;
enhancement of adaptive capacity of vulnerable human settlements to
potential impacts of climate change. (i) Monitoring and evaluation; and

The Commission shall set the qualifications and compensation for the (j) Gender mainstreaming.
technical experts. It shall provide resources for the operations and activities
of the Panel. Section 13. National Climate Change Action Plan. – The Commission shall
formulate a National Climate Change Action Plan in accordance with the
Section 11. Framework Strategy and Program on Climate Change. – The Framework within one (1) year after the formulation of the latter.
Commission shall, within six (6) months from the effectivity of this Act,
formulate a Framework Strategy on Climate Change. The Framework shall The National Climate Change Action Plan shall include, but not limited to,
serve as the basis for a program for climate change planning, research and the following components:
development, extension, and monitoring of activities to protect vulnerable
communities from the adverse effects of climate change. (a) Assessment of the national impact of climate change;

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(b) The identification of the most vulnerable communities/areas, It shall be the responsibility of the national government to extend technical
including ecosystems to the impacts of climate change, variability and financial assistance to LGUs for the accomplishment of their Local
and extremes; Climate Change Action Plans.

(c) The identification of differential impacts of climate change on The LGU is hereby expressly authorized to appropriate and use the amount
men, women and children; from its Internal Revenue Allotment necessary to implement said local plan
effectively, any provision in the Local Government Code to the contrary
(d) The assessment and management of risk and vulnerability; notwithstanding.

(e) The identification of GHG mitigation potentials; and Section 15. Role of Government Agencies. – To ensure the effective
implementation of the framework strategy and program on climate change,
(f) The identification of options, prioritization of appropriate concerned agencies shall perform the following functions:
adaptation measures for joint projects of national and local
governments. (a) The Department of Education (DepED) shall integrate climate
change into the primary and secondary education curricula and/or
Section 14. Local Climate Change Action Plan. – The LGUs shall be the subjects, such as, but not limited to, science, biology, sibika,
frontline agencies in the formulation, planning and implementation of history, including textbooks, primers and other educational
climate change action plans in their respective areas, consistent with the materials, basic climate change principles and concepts;
provisions of the Local Government Code, the Framework, and the National
Climate Change Action Plan. (b) The Department of the Interior and Local Government (DILG)
and Local Government Academy shall facilitate the development
Barangays shall be directly involved with municipal and city governments in and provision of a training program for LGUs in climate change. The
prioritizing climate change issues and in identifying and implementing best training program shall include socioeconomic, geophysical, policy,
practices and other solutions. Municipal and city governments shall consider and other content necessary to address the prevailing and
climate change adaptation, as one of their regular functions. Provincial forecasted conditions and risks of particular LGUs. It shall likewise
governments shall provide technical assistance, enforcement and focus on women and children, especially in the rural areas, since
information management in support of municipal and city climate change they are the most vulnerable;
action plans. Inter-local government unit collaboration shall be maximized in
the conduct of climate- related activities. (c) The Department of Environment and Natural Resources (DENR)
shall oversee the establishment and maintenance of a climate
LGUs shall regularly update their respective action plans to reflect changing change information management system and network, including on
social, economic, and environmental conditions and emerging issues. The climate change risks, activities and investments, in collaboration
LGUs shall furnish the Commission with copies of their action plans and all with other concerned national government agencies, institutions
subsequent amendments, modifications and revisions thereof, within one and LGUs;
(1) month from their adoption. The LGUs shall mobilize and allocate
necessary personnel, resources and logistics to effectively implement their (d) The Department of Foreign Affairs (DFA) shall review
respective action plans. international agreements related to climate change and make the
necessary recommendation for ratification and compliance by the
The local chief executive shall appoint the person responsible for the government on matters pertaining thereto;
formulation and implementation of the local action plan.
(e) The Philippine Information Agency (PIA) shall disseminate
information on climate change, local vulnerabilities and risk,

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relevant laws and protocols and adaptation and mitigation (d) Conduct of such other activities reasonably necessary to carry
measures; and out the objectives of this Act, as may be defined by the
Commission.
(f) Government financial institutions, shall, any provision in their
respective charters to the contrary notwithstanding, provide Section 18. Funding Allocation for Climate Change. – All relevant
preferential financial packages for climate change- related projects. government agencies and LGUs shall allocate from their annual
In consultation with the Bangko Sentral ng Pilipinas (BSP), they appropriations adequate funds for the formulation, development and
shall, within thirty (30) days from the effectivity of this Act, issue implementation, including training, capacity building and direct intervention,
and promulgate the implementing guidelines therefor. of their respective climate change programs and plans. It shall also include
public awareness campaigns on the effects of climate change and energy-
The Commission shall evaluate, recommend the approval of loans and saving solutions to mitigate these effects, and initiatives, through
monitor the use of said funds of LGUs. educational and training programs and micro-credit schemes, especially for
women in rural areas. In subsequent budget proposals, the concerned
Section 16. Coordination with Various Sectors. – In the development and offices and units shall appropriate funds for program/project development
implementation of the National Climate Change Action Plan, and the local and implementation including continuing training and education in climate
action plans, the Commission shall coordinate with the nongovernment change.1avvphi1
organizations (NGOs), civic organizations, academe, people’s organizations,
the private and corporate sectors and other concerned stakeholder groups. Section 19. Joint Congressional Oversight Committee. – There is hereby
created a Joint Congressional Oversight Committee to monitor the
Section 17. Authority to Receive Donations and/or Grants. – The implementation of this Act. The Oversight Committee shall be composed of
Commission is hereby authorized to accept grants, contributions, donations, five (5) Senators and five (5) Representatives to be appointed by the Senate
endowments, bequests, or gifts in cash, or in kind from local and foreign President and the Speaker of the House of Representatives, respectively.
sources in support of the development and implementation of climate The Oversight Committee shall be co-chaired by a Senator and a
change programs and plans: Provided, That in case of donations from Representative to be designated by the Senate President and the Speaker of
foreign governments, acceptance thereof shall be subject to prior clearance the House of Representatives, respectively. Its funding requirement shall be
and approval of the President of the Philippines upon recommendation of charged against the appropriations of Congress.
the Secretary of Foreign Affairs: Provided, further, That such donations shall
not be used to fund personal services expenditures and other operating Section 20. Annual Report. – The Commission shall submit to the President
expenses of the Commission. and to both Houses of Congress, not later than March 30 of every year
following the effectivity of this Act, or upon the request of the Congressional
The proceeds shall be used to finance: 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 Change Action Plan and recommend legislation, where
(a) Research, development, demonstration and promotion of
applicable and necessary. LGUs shall submit annual progress reports on the
technologies;
implementation of their respective local action plan to the Commission
within the first quarter of the following year.
(b) Conduct of assessment of vulnerabilities to climate change
impacts, resource inventory, and adaptation capability building;
Section 21. Appropriations. – The sum of Fifty million pesos
(Php50,000,000.00) is hereby appropriated as initial operating fund in
(c) Advocacy, networking and communication activities in the addition to the unutilized fund of the Presidential Task Force on Climate
conduct of information campaign; and Change and the Office of the Presidential Adviser on Global Warming and
Climate Change. The sum shall be sourced from the President’s contingent
fund.
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Thereafter, the amount necessary to effectively carry out the provisions of NO. 9729, OTHERWISE KNOWN AS THE “CLIMATE CHANGE ACT OF
this Act shall be included in the annual General Appropriations Act. 2009″, AND FOR OTHER PURPOSES

Section 22. Implementing Rules and Regulations. – Within ninety (90) SECTION 1. Section 2 of Republic Act No. 9729, otherwise known as the
days after the approval of this Act, the Commission shall, upon consultation “Climate Change Act of 2009″, is hereby amended to read as follows:
with government agencies, LGUs, private sector, NGOs and civil society,
promulgate the implementing rules and regulations of this Act: Provided, “SEC. 2. Declaration of Policy. – It is the policy of the State to afford full
That failure to issue rules and regulations shall not in any manner affect the protection and the advancement of the right of the people to a healthful
executory nature of the provisions of this Act. ecology in accord with the rhythm and harmony of nature. In this light, the
State has adopted the Philippine Agenda 21 framework which espouses
Section 23. Transitory Provisions. – Upon the organization of the sustainable development, to fulfill human needs while maintaining the
Commission, the Presidential Task Force on Climate Change created under quality of the natural environment for current and future generations.
Administrative Order No. 171 and the Inter-Agency Committee on Climate
Change created by virtue of Administrative Order No. 220, shall be Towards this end, the State adopts the principle of protecting the climate
abolished: Provided, That their powers and functions shall be absorbed by system for the benefit of humankind, on the basis of climate justice or
the Commission: Provided, further, That the officers and employees thereof common but differentiated responsibilities and the Precautionary Principle to
shall continue in a holdover capacity until such time as the new officers and guide decision-making in climate risk management. As a party to the United
employees of the Commission shall have been duly appointed pursuant to Nations Framework Convention on Climate Change (UNFCCC), the State
the provisions of this Act. All qualified regular or permanent employees who adopts the ultimate objective of the Convention which is the stabilization of
may be transferred to the Commission shall not suffer any loss in seniority greenhouse gas concentrations in the atmosphere at a level that would
or rank or decrease in emoluments. Any employee who cannot be absorbed prevent dangerous anthropogenic interference with the climate system
by the Commission shall be entitled to a separation pay under existing which should be achieved within a time frame sufficient to allow ecosystems
retirement laws. to adapt naturally to climate change, to ensure that food production is not
threatened and to enable economic development to proceed in a
Section 24. Separability Clause. – If for any reason any section or sustainable manner. As a party to the Hyogo Framework for Action, the
provision of this Act is declared as unconstitutional or invalid, the other State likewise adopts the strategic goals in order to build national and local
sections or provisions hereof shall not be affected thereby. resilience to climate change-related disasters.
Recognizing the vulnerability of the Philippine archipelago and its local
communities, particularly the poor, women, and children, to potential
Section 25. Repealing Clause. – All laws, ordinances, rules and regulations,
dangerous consequences of climate change and global warming such as
and other issuances or parts thereof which are inconsistent with this Act are
increasing temperatures, rising seas, changing landscapes, increasing
hereby repealed or modified accordingly.
frequency and/or severity of droughts, fire, floods and storms, climate-
related illnesses and diseases, damage to ecosystems, biodiversity loss that
Section 26. Effectivity. – This Act shall take effect fifteen (15) days after affect the country’s environment, culture, and economy, the State shall
the completion of its publication in the Official Gazette or in at least two (2) cooperate with the global community in the resolution of climate change
national newspapers of general circulation. issues, including disaster risk reduction. It shall 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
[REPUBLIC ACT NO. 10174] and reduce the adverse impacts of climate change and, at the same time,
maximize the potential benefits of climate change. It shall also be the policy
AN ACT ESTABLISHING THE PEOPLE’S SURVIVAL FUND TO of the State to incorporate a gender-sensitive, pro-children and pro-poor
PROVIDE LONG-TERM FINANCE STREAMS TO ENABLE THE perspective in all climate change and renewable energy efforts, plans and
GOVERNMENT TO EFFECTIVELY ADDRESS THE PROBLEM OF programs. In view thereof, the State shall strengthen, integrate, consolidate
CLIMATE CHANGE, AMENDING FOR THE PURPOSE REPUBLIC ACT
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and institutionalize government initiatives to achieve coordination in the (h) ‘Disaster’ refers to a serious disruption of the functioning of a
implementation of plans and programs to address climate change in the community or a society involving widespread human, material, economic or
contest of sustainable development. environmental losses and impacts which exceed the ability of the affected
Further recognizing that climate change and disaster risk reduction and community or society to cope using its own resources.
management are closely interrelated and effective disaster risk reduction (i) ‘Disaster Risk Reduction and Management (DRRM)’ refers to the
and management will enhance adaptive capacity to climate change, climate systematic process of using administrative directives, organizations, and
variability and extreme climate events, the State shall integrate disaster risk operational skills and capacities to implement strategies, policies and
reduction into climate change programs and initiatives. improved coping capacities in order to lessen the adverse impacts of
hazards and the possibility of disaster. Prospective Disaster Risk Reduction
Cognizant of the need to ensure that national and sub-national government and Management refers to risk reduction and management activities that
policies, plans, programs and projects are founded upon sound address and seek to avoid the development of new or increased disaster
environmental considerations and the principle of sustainable development, risks, especially if risk reduction policies are not put in place.
it is hereby declared the policy of the State to systematically integrate the (j) ”Gender mainstreaming’ refers to the strategy for making the concerns
concept of climate change in various phases of policy formulation, and experiences of women as well as those of men an integral dimension of
development plans, poverty reduction strategies and other development the design, implementation, monitoring, and evaluation of policies and
tools and techniques by all agencies and instrumentalities of the programs in all political, economic, environmental or ecological and societal
government.” spheres so that women and men benefit equally and inequality is not
perpetuated. It is the process of assessing the implications for women and
SEC. 2. Section 3 of Republic Act No. 9729 is hereby amended to read as men of any planned action, including legislation, policies, or programs in all
follows: areas and at all levels.
“SEC. 3. Definition of Terms. – For purposes of this Act, the following shall (k) ‘Global Warming’ refers to the increase in the average temperature of
have the corresponding meanings: the Earth’s near-surface air and oceans that is associated with the increased
(a) ‘Adaptation’ refers to the adjustment in natural or human systems in concentration of greenhouse gases in the atmosphere.
response to actual or expected climatic stimuli or their effects, which (I) ‘Greenhouse effect’ refers to the process by which the absorption of
moderates barn or exploits beneficial opportunities. infrared radiation by the atmosphere warms the Earth.
(b) ‘Adaptive capacity’ refers to the ability of ecological, social or economic (m) ‘Greenhouses gases (GHG)’ refers to constituents of the atmosphere
systems to adjust to climate change including climate variability and that contribute to the greenhouse effect including, but not limited to, carbon
extremes, to moderate or offset potential damages and to take advantage dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and
of associated opportunities with changes in climate or to cope with the sulfur hexafluoride.
consequences thereof. (n) ‘Mainstreaming’ refers to the integration of policies and measures that
(c) ‘Anthropogenic causes’ refer to causes resulting from human activities or address climate change into development planning and sectoral decision-
produced by human beings. making.
(d) ‘Climate Change’ refers to a change in climate that can be identified by (o) ‘Mitigation’ in the context of climate change, refers to human
changes in the mean and/or variability of its properties and that persists for intervention to reduce anthropogenic emissions sources and enhance
an extended period typically decades or longer, whether due to natural removals by sinks of all GHG, including- ozone-depleting substances and
variability or as a result of human activity. their substitutes.
(e) ‘Climate Finance’ refers to resources that have been allocated or may be (p) ‘Mitigation potential shall refer to the scale of GHG reductions that could
utilized towards the climate change adaptation and mitigation requirements be made, relative to emission baselines, for a given level of carbon price
of the country and its vulnerable communities. (expressed in cost per unit of carbon dioxide equivalent emissions avoided
(f) ‘Climate Variability’ refers to the variations in the average state and in or reduced).
other statistics of the climate on all temporal and spatial scales beyond that (q) ‘Sea level rise’ refers to an increase in sea level which may be influenced
of individual weather events. by factors like global warming through expansion of sea water as the
(g) ‘Climate Risk’ refers to the product of climate and related hazards oceans warm and melting of ice over land and local factors such as land
working over the vulnerability of human and natural ecosystems. subsidence.
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(r) ‘Vulnerability’ refers to the degree to which a system is susceptible to, or (n) Secretary of the Department of Trade and Industry;
unable to cope with, adverse effects of climate change, including climate (o) Secretary of the Department of Transportation and Communications;
variability and extreme climate events. Vulnerability is a function of the (p) Director-General of the National Economic and Development Authority,
character, magnitude, and rate of climate change and variation to which a in his capacity as Socioeconomic Planning Secretary and Chair of the
system is exposed, its sensitivity, and its adaptive capacity. Philippine Council for Sustainable Development (PCSD);
(q) Director-General of the National Security Council;
SEC. 3. Section 4 of Republic Act No. 9729 is hereby amended to read as (r) Chairperson of the Philippine Commission on Women;
follows: (s) Chairperson of the National Youth Commission;
“SEC. 4. Creation of the Climate Change Commission. – There is hereby (t) President of the Sangguniang Kabataan National Federation;
established a Climate Change Commission, hereinafter referred to as the (u) President of the League of Provinces;
Commission. (v) President of the League of Cities;
Thu Commission shall be an independent and autonomous body and shall (w) President of the League of Municipalities;
have the same status as that of a national government agency. It shall be (x) President of the Liga ng mga Barangay;
attached to the Office of the President. (y) Representative from the academe;
The Commission shall be the lead policy-making body of the government, (aa) Representative from the business sector; and
which shall be tasked to coordinate, monitor and evaluate the programs and (aa) Representative from nongovernmental organizations.
action plans of the government in order to ensure the mainstreaming of At least one (1) of the sectoral representatives shall come from the disaster
climate change into the national, sectoral and local development plans and risk reduction community.
programs pursuant to the provisions of this Act. The representatives shall be appointed by the President from a list of
The Commission shall be organized within sixty (80) days from the nominees submitted by their respective groups and endorsed by the
effectivity of this Act.” Commission. They shall serve for a maximum term of six (6)
years: Provided, however, That such appointment, may be terminated by
SEC. 4. Section 5 of Republic Act No. 9729 is hereby amended to read as the President on the basis of the withdrawal of endorsement by or
follows. recommendation of the sector they represent. Appointment to any vacancy
“SEC. 5. Composition of the Commission. – The Commission shall be shall be only for the unexpired term of the predecessor.
composed of the President, of the Republic of the Philippines who shall Ex officio members of the advisory board may appoint their respective
serve as the Chairperson, and three (3) Commissioners to be appointed by permanent alternate representatives who shall have the rank of an
the President, one of whom shall be appointed as Vice Chairperson of the Undersecretary.”
Commission.
The Commission shall have an advisory board composed of the following: SEC. 5. Section 6 of Republic Act No. 9729 is hereby amended to read as
(a) Secretary of the Department of Agriculture; follows:
(b) Secretary of the Department of Budget and Management; “SEC. 6. Meetings of the Commission. – The Commission shall convene
(c) Secretary of the Department of Energy; every first or last. Monday of every third month, or as often as it may deem
(d) Secretary of the Department of Environment and Natural Resources; necessary.
(e) Secretary of the Department of Education; In the event that the Chairperson cannot preside the meeting, the Vice
(f) Secretary of the Department of Finance; Chairperson shall undertake such function;Provided, however, That
(g) Secretary of the Department of Foreign Affairs; a resolution or decision shall be approved by the majority of the three (3)
(h) Secretary of the Department of Health; Commissioners:Provided, further, That the Chairperson may vote any
(i) Secretary of the Department of Interior and Local Government; decisions of the Commission within thirty (30) days from receipt of the
(j) Secretary of the Department of National Defense, in his capacity as Chair same”
of the National Disaster Risk Reduction and Management Council;
(k) Secretary of the Department of Public Works and Highways; SEC. 6. Section 7 of Republic Act. No. 9729 is hereby amended to read as
(l) Secretary of the Department of Science and Technology; follows:
(m) Secretary of the Department of Social Welfare and Development;
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“SEC. 7. Qualifications, Tenure, Compensation and Removal of (f) Create an enabling environment for the design of relevant and
Commissioners. – The Commissioners must be Filipino citizens, residents of appropriate risk-sharing and risk-transfer instruments;
the Philippines, at least thirty (30) years of age at the time of appointment, (g) Create an enabling environment that shall promote broader multi-
with proven experience on climate change and of proven honesty and stakeholder participation and integrate climate change mitigation and
integrity. The Commissioners shall be experts in climate change by virtue of adaptation;
their educational background, training and experience: Provided, That at (h) Formulate strategies for mitigating GHG emissions, anthropogenic
least, one (1) Commissioner shall be female: Provided, further, That in no sources and enhance removal by sinks;
case shall the (i) Coordinate and establish a close partnership with the National Disaster
Commissioners come from the same sector: Provided, finally, That in no Risk Reduction and Management Council in order to increase efficiency and
case shall any of the Commissioners appoint representatives to act on their effectiveness in reducing the people’s vulnerability to climate-related
behalf. disasters;
The Commissioners shall hold office for a period of six (6) years, and may (j) In coordination with the Department of foreign Affairs, represent the
be subjected to reappointment:Provided, That no person shall serve for Philippines in the climate change negotiations, constitute and lead the
more than two (2) consecutive terms: Provided, further, That, in case of a Philippine panel of negotiators to the UNFCCC and the formulation of official
vacancy, the new appointee shall fully meet the qualifications of a Philippine positions on climate change negotiation issues, and decision areas
Commissioner and shall hold office for the unexpired portion of the term in the international negotiation arena;
only: Provided, furthermore, That in no case shall a Commissioner be (k) Formulate and update guidelines for determining vulnerability to climate
designated in a temporary or acting capacity: Provided, finally, That any change impacts and adaptation assessments and facilitate the provision of
Commissioner may be removed from office before the expiration of his/her technical assistance for their implementation and monitoring;
term for cause or due to incapacity and in accordance with due process (l) Coordinate with local government units (LGU’s) and private entities to
required by pertinent laws. address vulnerability to climate change impacts of regions, provinces, cities
The Vice Chairperson and the Commissioners shall have the rank and and municipalities;
privileges of a Department Secretary and Undersecretary, respectively. They (m) Facilitate capacity building for local adaptation planning, implementation
shall be entitled to corresponding compensation and other emoluments and and monitoring of climate change initiatives in vulnerable and marginalized
shall be subject to the same disqualifications.” communities and areas;
(n) Promote and provide technical and financial support to local research
SEC. 7. Section 9 of Republic Act No. 9729 is hereby amended to read as and develop merit programs and projects in vulnerable and marginalized
follow; communities and areas;
“SEC. 9. Powers and Functions of the Commission. – The Commission shall (o) Oversee the dissemination of information on climate change, local
have the following powers and functions: vulnerabilities and risks, relevant laws and protocols and adaptation and
(a) Coordinate and synchronize climate change programs in consultation mitigation measures;
with national government agencies and other stakeholders; (p) Establish a coordination mechanism with the concerned government
(b) Formulate a Strategic Framework on Climate Change to serve as the agencies and other stakeholders to ensure transparency and coherence in
basis for a program for climate change planning, research and development, the administration of climate funds taking into consideration the official
extension, and monitoring of activities on climate change; Philippine position in international negotiations; and
(c) Exercise policy coordination to ensure the attainment of goals sat in the (q) Perform such other functions as may be necessary for the effective
strategic framework and program on climate change; implementation of this Act.”
(d) Recommend legislation, policies, strategies, programs on and
appropriations for climate change adaptation and mitigation and other SEC. 8. Section 11 of Republic Act No. 9729 is hereby amended to road
related activities; as follows:
(e) Recommend key development investments in climate-sensitive sectors “SEC. 11. National Strategic Framework and Program on Climate Change. –
such as water resources, agriculture, forestry, coastal and marine resources, The Commission shall, within six (6) months from the effectivity of this Act,
health, and infrastructure to ensure the achievement of national sustainable formulate a National Strategic Framework on Climate Change. The Frame
development goals; work shall serve as the basis for climate change planning, research and
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development, extension, monitoring of activities, and climate financing, to conditions and risks of particular LGUs. It shall likewise focus on women and
protect vulnerable and marginalized communities from the adverse effects children, especially in the rural areas, since they are the most vulnerable;
of climate change. (c) The Department of Environment and Natural Resources (DENR) shall
The Framework shall be formulated based on climate change vulnerabilities, oversee the establishment and maintenance of a climate change information
specific adaptation needs, and mitigation potential, and in accordance with management system and network, including on climate change risks,
the international agreements. activities and investments, in collaboration with other concerned national
The Framework shall be reviewed every three (3) years, or as may be government agencies, institutions and LGUs
deemed necessary. The review of the Framework shall involve a (d) The Department of Foreign Affairs (DFA) shall review international
participatory and interactive process.” agreements related to climate change and make the necessary
recommendation for ratification and compliance by the government on
SEC. 9. Section 12 of Republic Act No. 9729 is hereby amended to read as matters pertaining thereto;
follows: (e) The Philippine Information Agency (PIA) shall disseminate information
“SEC. 12. Components of the National Strategic Framework and Program on on climate change, local vulnerabilities and risk, relevant laws and protocols
Climate Change. – The Framework shall include, but not limited to, the and adaptation and mitigation measures;
following components: (f) The Department of Finance (DOF) shall coordinate with the Commission
(a) National priorities; on matters concerning fiscal policies related to climate change and monitor
(b) Impact, vulnerability and adaptation assessments; and report measures involving climate finance;
(c) Policy formulation; (g) The Department of Budget and Management (DBM) shall undertake the
(d) Compliance with international commitments; formulation of the annual national budget in a way that ensures the
(e) Research and development; appropriate prioritization and allocation of funds to support climate change-
(f) Database development and management; related programs and projects in the annual program of government;
(g) Academic programs, capability building and mainstreaming; (h) The Department, of Science and Technology (DOST), through the
(h) Advocacy and information dissemination; Philippine Atmospheric, Geophysical and Astronomical Services
(i) Monitoring and evaluation; and Administration (PAGASA), shall promote, assist and, where appropriate,
(j) Gender mainstreaming.” undertake scientific and technological research and development,
projections and analysis of future climate scenarios, including activities
SEC. 10. Section 15 of Republic Act No. 9729 is hereby amended to read as relative to observation, collection, assessment and processing of climate-
follows: related data such as, but not limited to, rainfall, sea-level-rise, extreme
“SEC. 15. Role of Government Agencies. – To ensure the effective climate events, rise in temperatures, and records of severe droughts
implementation of the framework strategy and program on climate change, monitored over long periods of time, in coordination with LGUs in
concerned agencies shall, perform the following functions: priority/target monitoring sites, for the benefit of agriculture, natural
(a) The Department of Education (DepED) shall integrate climate change resources, commerce and industry and in other areas identified to be vital to
into the primary and secondary education curricula and/or subjects, such as, the country’s development; and
but not limited to, science, biology, sibika, history, including textbooks, (i) Government financial in institutions, except Bangko Sentral ng Pilipinas
primers and other educational materials, basic climate change principles and (BSP) shall, any provision in their respective charters to the contrary
concepts; notwithstanding, provide preferential financial packages for climate change-
(b) The Department of the Interior and Local Government (DILG) and Local related projects. In consultation with the BSP, they shall, within thirty (30)
Government Academy, in coordination with the National Economic and days from the effectivity of this Act, issue and promulgate the implementing
Development Authority and other concerned agencies, shall facilitate; the guidelines therefor.”
development and provision of a capacity-building program for LGUs in
climate change, including the provision of necessary and appropriate SEC. 11. Section 16 of Republic Act No. 9729 is hereby amended to read as
technology. The program shall include socioeconomic, geophysical, policy, follows:
and other content necessary to address the prevailing and forecasted “SEC. 16. Coordination with Various Sectors. – In the development and
implementation of the National Climate Change Action Plan, and the local
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action plans, the Commission shall consult and coordinate with the furthermore, That the balance of the PSF including the amount appropriated
nongovernment organizations (NGOs), civic organizations, academe, in the GAA which shall form part of the fund shall not revert to the general
people’s organizations, the private and corporate sectors and other fund: Provided, finally, That the Commission shall submit to Congress and
concerned stakeholder groups.” the DBM a semi-annual physical/narrative and financial report on the
utilization of the PSF.
SEC. 12. Section 17 of Republic Act No. 9729 is hereby amended to read as The PSF may be augmented by donations, endowments, grants and
follows: contributions, which shall be exempt from donor’s tax and be considered as
“SEC. 17. Authority to Receive Donations and/or Grants. – The Commission allowable deductions from the gross income of the donor, in accordance
is hereby authorized to accept grants, contributions, donations, with the provisions of the National Internal Revenue Code of 1997, as
endowments, bequests, or gifts in cash, or in kind from local and foreign amended.”
sources in support of the development and implementation of climate
change programs and plans; Provided, That in case of donations from “SEC. 20. Uses of the Fund. – The fund shall he used to support adaptation
foreign governments, acceptance thereof shall be subject to prior clearance activities of local governments and communities such as, but not limited to,
and approval of the President of the Philippines upon recommendation of the following:
the Department of Finance: Provided, further, That such donations shall not (a) Adaptation activities, where sufficient information is available to warrant
be used to fund personal services expenditures and other operating such activities, in the areas of water resources management, land
expenses of the Commission. management, agriculture and fisheries, health, infrastructure development,
The proceeds shall be used to finance: natural ecosystems including mountainous and coastal ecosystems;
(a) Research, development, demonstration and promotion of technologies; (b) Improvement of the monitoring of vector-borne diseases triggered by
(b) Conduct of assessment of vulnerabilities to climate change impacts, climate change, and in this context improving disease control and
resource inventory, and adaptation capability building; prevention;
(c) Advocacy, networking and communication activities in the conduct of (c) Forecasting and early warning systems as part of preparedness for
information campaign; and climate-related hazards;
(d) Conduct of such other activities reasonably necessary to carry out the (d) Supporting institutional development, for local governments, in
objectives of this Act, as may be defined by the Commission.” partnership with local communities and civil society groups, for preventive
measures, planning, preparedness and management of impacts relating to
SEC. 13. Insert and renumber Sections 18, 19, 20, 21, 22, 23, 24 and 25 in climate change, including contingency planning, in particular, for droughts
Republic Act No. 9729 to read as follows: and floods in areas prone to extreme climate events;
“SEC. 18. Creation of the People’s Survival Fund. – A People’s Survival Fund (e) Strengthening existing; and where needed, establish regional centers
(PSF) is hereby established as a special fund in the National Treasury for and information networks to support climate change adaptation initiatives
the financing of adaptation programs and projects based on the National and projects;
Strategic Framework.” (f) Serving as a guarantee for risk insurance needs for farmers, agricultural
workers and other stakeholders; and
“SEC. 19. Sources of the Fund. – The amount of One billion pesos (g) Community adaptation support programs by local organizations
(P1,000,000,000.00) shall be appropriated under the General Appropriations accredited by the Commission.
Act (GAA) as opening balance of the PSF. Thereafter, the balance of the PSF The fund shall be suppletory to any annual appropriations allocated by
from all sources including the amount appropriated in the GAA for the relevant government agencies for climate change-related programs and
current year shall not be less than One billion pesos projects and by LQUs. The fund shall encourage counterpart funding
(P1,000,000,000.00): Provided, That the balance of the PSF may be arrangements among local governments, community organizations, the
increased as the need arises, subject to review and evaluation by the Office private sector, and other entities.”
of the President and the Department of Budget and Management (DBM) of
the accomplishments of the Commission and other concerned “SEC. 21. The People’s Survival Fund Board. – There is hereby created a
LGUs: Provided, further, That the PSF shall not be used to fund personal People’s Survival Fund Board, hereinafter referred to as the PSF Board,
services and other operational expenses of the Commission: Provided,
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which shall be lodged under the Commission. It shall be composed of the expertise of relevant government agencies in its advisory board and the
following: national panel of technical experts in the project appraisal, monitoring and
(a) Secretary of the Department of Finance as Chair; evaluation process. The Commission shall not be a project implementor.
(b) Vice Chairperson of the Commission; The Commission shall formulate mechanisms that ensure transparency and
(c) Secretary of the Department of Budget and Management; public access to information regarding funding deliberations and decisions.
(d) Director-General of the National Economic and Development Authority; The Commission shall develop guidelines to accredit local organizations
(e) Secretary of the Department of the Interior and Local Government; seeking to access the fund. Organizations will be accredited based on
(f) Chairperson of the Philippine Commission on Women; criteria such as organizational independence, track record in the community
(g) A representative from the academe and scientific community; and/or field of expertise, financial management, and participatory
(h) A representative from the business sector; and practices.”
(i) A representative from the NGOs: Provided, That the organizations of the
academe and scientific community, business and NGO representatives of the “SEC. 24. Prioritization of Fund Allocation. – The Commission shall develop
PSF Board are disqualified from accessing the fund during their term, as set criteria to prioritize use of the fund based on, but not. limited to, the
by the Commission, and a year after their tenure in the PSF Board shall following:
have been terminated or completed. The said representatives shall be (a) Level of risk and vulnerability to climate change;
identified nod designated as such by the Commission.” (b) Participation of affected communities in the design of the project;
(c) Poverty reduction potential;
“SEC. 22. Powers and Functions of the PSF Board. – The PSF Board, which (d) Cost effectiveness and attainability of the proposal;
shall convene at least twice a year, shall have the following powers and (e) Identification of potential co-benefits extending beyond LGU territory;
functions: (f) Maximization of multi-sectoral or cross-sectoral benefits;
(a) Promulgate policies that will maintain the fiduciary character of the (g) Responsiveness to gender-differentiated vulnerabilities; and
Board; (h) Availability of climate change adaptation action plan.”
(b) Provide overall strategic guidance in the management and use of the
fund including, but not limited to, the development of funding windows for “SEC. 25. Community Participation. – To ensure transparency and
various adaptation activities, including counterpart funding arrangements, participation of vulnerable and marginalized groups in the adaptation
and guidelines for project assessment, approval and evaluation; projects to be supported by the fund, community representatives and/or
(c) Develop social, financial and environmental safeguards to be used in NGO counterparts may participate as observers in the project identification,
project implementation; monitoring and evaluation process of the Commission.”
(d) Identify additional sources for the fund;
(e) Issue final approval of projects for the use of the fund; SEC. 14. The succeeding sections shall be renumbered accordingly.
(f) Adopt a conflict of interest policy to ensure that board members will not
vote on projects if they have a direct stake therein; and SEC. 15. Separability Clause. – If, for any reason, any section or provision of
(g) Ensure an independent third party evaluation and auditing of activities this Act is declared as unconstitutional or invalid, the other sections or
supported by the fund, taking into consideration the principles of provisions hereof shall not be affected thereby.
transparency and accountability, and government accounting and auditing
roles and regulations.” SEC. 16. Repealing Clause. – All laws, ordinances, rules and regulations and
other issuances or parts thereof which are inconsistent with this Act are
“SEC 23. Role of the Commission in the Utilization of the People’s Survival hereby repealed or modified accordingly.
Fund. – The Climate Change Office, headed by the Vice Chairperson of the
Commission, shall evaluate and review the project proposals, and, with the SEC. 17. Effectivity Clause. – This Act shall take effect after fifteen (15) days
concurrence and endorsement of a majority of the climate change following its complete publication in at least two (2) national newspapers of
Commissioners appointed by the President, recommend approval of project general circulation.
proposals to the PSF Board based on the policies, guidelines, and
safeguards, agreed by the PSF Board. The Commission shall utilize the
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Kyoto Protocol to the United Nations Framework Convention on 5. "Parties present and voting" means Parties present and casting an
Climate Change affirmative or negative vote.

The Parties to this Protocol, 6. "Party" means, unless the context otherwise indicates, a Party to this
Protocol.
Being Parties to the United Nations Framework Convention on Climate
Change, hereinafter referred to as "the Convention", 7. "Party included in Annex I" means a Party included in Annex I to the
Convention, as may be amended, or a Party which has made a notification
In pursuit of the ultimate objective of the Convention as stated in its Article under Article 4, paragraph 2(g), of the Convention.
2,
Article 2
Recalling the provisions of the Convention,
1. Each Party included in Annex I, in achieving its quantified emission
Being guided by Article 3 of the Convention, limitation and reduction commitments under Article 3, in order to promote
sustainable development, shall:
Pursuant to the Berlin Mandate adopted by decision 1/CP.1 of the
(a) Implement and/or further elaborate policies and measures in accordance
with its national circumstances, such as:
Conference of the Parties to the Convention at its first session,
(i) Enhancement of energy efficiency in relevant sectors of the national
Have agreed as follows:
economy;
Article 1
(ii) Protection and enhancement of sinks and reservoirs of greenhouse
For the purposes of this Protocol, the definitions contained in Article 1 of the
gases not controlled by the Montreal Protocol, taking into account its
Convention shall apply. In addition:
commitments under relevant international environmental agreements;
promotion of sustainable forest management practices, afforestation
1. "Conference of the Parties" means the Conference of the Parties to the and reforestation;
Convention.
(iii) Promotion of sustainable forms of agriculture in light of climate change
2. "Convention" means the United Nations Framework Convention on considerations;
Climate Change, adopted in New York on 9 May 1992.
(iv) Research on, and promotion, development and increased use of, new
3. "Intergovernmental Panel on Climate Change" means the and renewable forms of energy, of carbon dioxide sequestration
Intergovernmental Panel on Climate Change established in 1988 jointly by technologies and of advanced and innovative environmentally sound
the World Meteorological Organization and the United Nations Environment technologies;
Programme.
(v) Progressive reduction or phasing out of market imperfections, fiscal
4. "Montreal Protocol" means the Montreal Protocol on Substances that incentives, tax and duty exemptions and subsidies in all greenhouse
Deplete the Ozone Layer, adopted in Montreal on 16 September 1987 and gas emitting sectors that run counter to the objective of the Convention and
as subsequently adjusted and amended. application of market instruments;

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(vi) Encouragement of appropriate reforms in relevant sectors aimed at Article 3
promoting policies and measures which limit or reduce emissions of
greenhouse gases not controlled by the Montreal Protocol; 1. The Parties included in Annex I shall, individually or jointly, ensure that
their aggregate anthropogenic carbon dioxide equivalent emissions of the
(vii) Measures to limit and/or reduce emissions of greenhouse gases not greenhouse gases listed in Annex A do not exceed their assigned amounts,
controlled by the Montreal Protocol in the transport sector; calculated pursuant to their quantified emission limitation and reduction
commitments inscribed in Annex B and in accordance with the provisions of
(viii) Limitation and/or reduction of methane emissions through recovery this Article, with a view to reducing their overall emissions of such gases by
and use in waste management, as well as in the production, transport and at least 5 per cent below 1990 levels in the commitment period 2008 to
distribution of energy; 2012.

(b) Cooperate with other such Parties to enhance the individual and 2. Each Party included in Annex I shall, by 2005, have made demonstrable
combined effectiveness of their policies and measures adopted under this progress in achieving its commitments under this Protocol.
Article, pursuant to Article 4, paragraph 2(e)(i), of the Convention. To this
end, these Parties shall take steps to share their experience and exchange 3. The net changes in greenhouse gas emissions by sources and removals
information on such policies and measures, including developing ways of by sinks resulting from direct human-induced land-use change and forestry
improving their comparability, transparency and effectiveness. The activities, limited to afforestation, reforestation and deforestation since
Conference of the Parties serving as the meeting of the Parties to this 1990, measured as verifiable changes in carbon stocks in each commitment
Protocol shall, at its first session or as soon as practicable thereafter, period, shall be used to meet the commitments under this Article of each
consider ways to facilitate such cooperation, taking into account all relevant Party included in Annex I. The greenhouse gas emissions by sources and
information. removals by sinks associated with those activities shall be reported in a
transparent and verifiable manner and reviewed in accordance with Articles
2. The Parties included in Annex I shall pursue limitation or reduction of 7 and 8.
emissions of greenhouse gases not controlled by the Montreal Protocol from
aviation and marine bunker fuels, working through the International Civil 4. Prior to the first session of the Conference of the Parties serving as the
Aviation Organization and the International Maritime Organization, meeting of the Parties to this Protocol, each Party included in Annex I shall
respectively. provide, for consideration by the Subsidiary Body for Scientific and
Technological Advice, data to establish its level of carbon stocks in 1990 and
3. The Parties included in Annex I shall strive to implement policies and to enable an estimate to be made of its changes in carbon stocks in
measures under this Article in such a way as to minimize adverse effects, subsequent years. The Conference of the Parties serving as the meeting of
including the adverse effects of climate change, effects on international the Parties to this Protocol shall, at its first session or as soon as practicable
trade, and social, environmental and economic impacts on other Parties, thereafter, decide upon modalities, rules and guidelines as to how, and
especially developing country Parties and in particular those identified in which, additional human-induced activities related to changes in greenhouse
Article 4, paragraphs 8 and 9, of the Convention, taking into account Article gas emissions by sources and removals by sinks in the agricultural soils and
3 of the Convention. The Conference of the Parties serving as the meeting the land-use change and forestry categories shall be added to, or subtracted
of the Parties to this Protocol may take further action, as appropriate, to from, the assigned amounts for Parties included in Annex I, taking into
promote the implementation of the provisions of this paragraph. account uncertainties, transparency in reporting, verifiability, the
methodological work of the Intergovernmental Panel on Climate Change,
4. The Conference of the Parties serving as the meeting of the Parties to the advice provided by the Subsidiary Body for Scientific and Technological
this Protocol, if it decides that it would be beneficial to coordinate any of the Advice in accordance with Article 5 and the decisions of the Conference of
policies and measures in paragraph 1(a) above, taking into account different the Parties. Such a decision shall apply in the second and subsequent
national circumstances and potential effects, shall consider ways and means commitment periods. A Party may choose to apply such a decision on these
to elaborate the coordination of such policies and measures.
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additional human-induced activities for its first commitment period, provided Conference of the Parties serving as the meeting of the Parties to this
that these activities have taken place since 1990. Protocol shall initiate the consideration of such commitments at least seven
years before the end of the first commitment period referred to in
5. The Parties included in Annex I undergoing the process of transition to a paragraph 1 above.
market economy whose base year or period was established pursuant to
decision 9/CP.2 of the Conference of the Parties at its second session shall 10. Any emission reduction units, or any part of an assigned amount, which
use that base year or period for the implementation of their commitments a Party acquires from another Party in accordance with the provisions of
under this Article. Any other Party included in Annex I undergoing the Article 6 or of Article 17 shall be added to the assigned amount for the
process of transition to a market economy which has not yet submitted its acquiring Party.
first national communication under Article 12 of the Convention may also
notify the Conference of the Parties serving as the meeting of the Parties to 11. Any emission reduction units, or any part of an assigned amount, which
this Protocol that it intends to use an historical base year or period other a Party transfers to another Party in accordance with the provisions of
than 1990 for the implementation of its commitments under this Article. The Article 6 or of Article 17 shall be subtracted from the assigned amount for
Conference of the Parties serving as the meeting of the Parties to this the transferring Party.
Protocol shall decide on the acceptance of such notification.
12. Any certified emission reductions which a Party acquires from another
6. Taking into account Article 4, paragraph 6, of the Convention, in the Party in accordance with the provisions of Article 12 shall be added to the
implementation of their commitments under this Protocol other than those assigned amount for the acquiring Party.
under this Article, a certain degree of flexibility shall be allowed by the
Conference of the Parties serving as the meeting of the Parties to this 13. If the emissions of a Party included in Annex I in a commitment period
Protocol to the Parties included in Annex I undergoing the process of are less than its assigned amount under this Article, this difference shall, on
transition to a market economy. request of that Party, be added to the assigned amount for that Party for
subsequent commitment periods.
7. In the first quantified emission limitation and reduction commitment
period, from 2008 to 2012, the assigned amount for each Party included in 14. Each Party included in Annex I shall strive to implement the
Annex I shall be equal to the percentage inscribed for it in Annex B of its commitments mentioned in paragraph 1 above in such a way as to minimize
aggregate anthropogenic carbon dioxide equivalent emissions of the adverse social, environmental and economic impacts on developing country
greenhouse gases listed in Annex A in 1990, or the base year or period Parties, particularly those identified in Article 4, paragraphs 8 and 9, of the
determined in accordance with paragraph 5 above, multiplied by five. Those Convention. In line with relevant decisions of the Conference of the Parties
Parties included in Annex I for whom land-use change and forestry on the implementation of those paragraphs, the Conference of the Parties
constituted a net source of greenhouse gas emissions in 1990 shall include serving as the meeting of the Parties to this Protocol shall, at its first
in their 1990 emissions base year or period the aggregate anthropogenic session, consider what actions are necessary to minimize the adverse
carbon dioxide equivalent emissions by sources minus removals by sinks in effects of climate change and/or the impacts of response measures on
1990 from land-use change for the purposes of calculating their assigned Parties referred to in those paragraphs. Among the issues to be considered
amount. shall be the establishment of funding, insurance and transfer of technology.

8. Any Party included in Annex I may use 1995 as its base year for Article 4
hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride, for the
purposes of the calculation referred to in paragraph 7 above.
1. Any Parties included in Annex I that have reached an agreement to fulfil
their commitments under Article 3 jointly, shall be deemed to have met
9. Commitments for subsequent periods for Parties included in Annex I shall those commitments provided that their total combined aggregate
be established in amendments to Annex B to this Protocol, which shall be anthropogenic carbon dioxide equivalent emissions of the greenhouse gases
adopted in accordance with the provisions of Article 21, paragraph 7. The
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listed in Annex A do not exceed their assigned amounts calculated pursuant the Parties serving as the meeting of the Parties to this Protocol at its first
to their quantified emission limitation and reduction commitments inscribed session.
in Annex B and in accordance with the provisions of Article 3. The respective
emission level allocated to each of the Parties to the agreement shall be set 2. Methodologies for estimating anthropogenic emissions by sources and
out in that agreement. removals by sinks of all greenhouse gases not controlled by the Montreal
Protocol shall be those accepted by the Intergovernmental Panel on Climate
2. The Parties to any such agreement shall notify the secretariat of the Change and agreed upon by the Conference of the Parties at its third
terms of the agreement on the date of deposit of their instruments of session. Where such methodologies are not used, appropriate adjustments
ratification, acceptance or approval of this Protocol, or accession thereto. shall be applied according to methodologies agreed upon by the Conference
The secretariat shall in turn inform the Parties and signatories to the of the Parties serving as the meeting of the Parties to this Protocol at its
Convention of the terms of the agreement. first session. Based on the work of,inter alia, the Intergovernmental Panel
on Climate Change and advice provided by the Subsidiary Body for Scientific
3. Any such agreement shall remain in operation for the duration of the and Technological Advice, the Conference of the Parties serving as the
commitment period specified in Article 3, paragraph 7. meeting of the Parties to this Protocol shall regularly review and, as
appropriate, revise such methodologies and adjustments, taking fully into
4. If Parties acting jointly do so in the framework of, and together with, a account any relevant decisions by the Conference of the Parties. Any
regional economic integration organization, any alteration in the revision to methodologies or adjustments shall be used only for the
composition of the organization after adoption of this Protocol shall not purposes of ascertaining compliance with commitments under Article 3 in
affect existing commitments under this Protocol. Any alteration in the respect of any commitment period adopted subsequent to that revision.
composition of the organization shall only apply for the purposes of those
commitments under Article 3 that are adopted subsequent to that alteration. 3. The global warming potentials used to calculate the carbon dioxide
equivalence of anthropogenic emissions by sources and removals by sinks of
5. In the event of failure by the Parties to such an agreement to achieve greenhouse gases listed in Annex A shall be those accepted by the
their total combined level of emission reductions, each Party to that Intergovernmental Panel on Climate Change and agreed upon by the
agreement shall be responsible for its own level of emissions set out in the Conference of the Parties at its third session. Based on the work of, inter
agreement. alia, the Intergovernmental Panel on Climate Change and advice provided
by the Subsidiary Body for Scientific and Technological Advice, the
Conference of the Parties serving as the meeting of the Parties to this
6. If Parties acting jointly do so in the framework of, and together with, a
Protocol shall regularly review and, as appropriate, revise the global
regional economic integration organization which is itself a Party to this
warming potential of each such greenhouse gas, taking fully into account
Protocol, each member State of that regional economic integration
any relevant decisions by the Conference of the Parties. Any revision to a
organization individually, and together with the regional economic
global warming potential shall apply only to commitments under Article 3 in
integration organization acting in accordance with Article 24, shall, in the
respect of any commitment period adopted subsequent to that revision.
event of failure to achieve the total combined level of emission reductions,
Article 6
be responsible for its level of emissions as notified in accordance with this
Article.
Article 5 1. For the purpose of meeting its commitments under Article 3, any Party
included in Annex I may transfer to, or acquire from, any other such Party
emission reduction units resulting from projects aimed at reducing
1. Each Party included in Annex I shall have in place, no later than one year
anthropogenic emissions by sources or enhancing anthropogenic removals
prior to the start of the first commitment period, a national system for the
by sinks of greenhouse gases in any sector of the economy, provided that:
estimation of anthropogenic emissions by sources and removals by sinks of
all greenhouse gases not controlled by the Montreal Protocol. Guidelines for
such national systems, which shall incorporate the methodologies specified (a) Any such project has the approval of the Parties involved;
in paragraph 2 below, shall be decided upon by the Conference of
BIA | Environmental Law | 18
(b) Any such project provides a reduction in emissions by sources, or an under the Convention for the first year of the commitment period after this
enhancement of removals by sinks, that is additional to any that would Protocol has entered into force for that Party. Each such Party shall submit
otherwise occur; the information required under paragraph 2 above as part of the first
national communication due under the Convention after this Protocol has
(c) It does not acquire any emission reduction units if it is not in compliance entered into force for it and after the adoption of guidelines as provided for
with its obligations under Articles 5 and 7; and in paragraph 4 below. The frequency of subsequent submission of
information required under this Article shall be determined by the
(d) The acquisition of emission reduction units shall be supplemental to Conference of the Parties serving as the meeting of the Parties to this
domestic actions for the purposes of meeting commitments under Article 3. Protocol, taking into account any timetable for the submission of national
communications decided upon by the Conference of the Parties.
2. The Conference of the Parties serving as the meeting of the Parties to
this Protocol may, at its first session or as soon as practicable thereafter, 4. The Conference of the Parties serving as the meeting of the Parties to
further elaborate guidelines for the implementation of this Article, including this Protocol shall adopt at its first session, and review periodically
for verification and reporting. thereafter, guidelines for the preparation of the information required under
this Article, taking into account guidelines for the preparation of national
communications by Parties included in Annex I adopted by the Conference
3. A Party included in Annex I may authorize legal entities to participate,
of the Parties. The Conference of the Parties serving as the meeting of the
under its responsibility, in actions leading to the generation, transfer or
Parties to this Protocol shall also, prior to the first commitment period,
acquisition under this Article of emission reduction units.
decide upon modalities for the accounting of assigned amounts.
Article 8
4. If a question of implementation by a Party included in Annex I of the
requirements referred to in this Article is identified in accordance with the
1. The information submitted under Article 7 by each Party included in
relevant provisions of Article 8, transfers and acquisitions of emission
Annex I shall be reviewed by expert review teams pursuant to the relevant
reduction units may continue to be made after the question has been
decisions of the Conference of the Parties and in accordance with guidelines
identified, provided that any such units may not be used by a Party to meet
adopted for this purpose by the Conference of the Parties serving as the
its commitments under Article 3 until any issue of compliance is resolved.
meeting of the Parties to this Protocol under paragraph 4 below. The
Article 7
information submitted under Article 7, paragraph 1, by each Party included
in Annex I shall be reviewed as part of the annual compilation and
1. Each Party included in Annex I shall incorporate in its annual inventory of accounting of emissions inventories and assigned amounts. Additionally, the
anthropogenic emissions by sources and removals by sinks of greenhouse information submitted under Article 7, paragraph 2, by each Party included
gases not controlled by the Montreal Protocol, submitted in accordance with in Annex I shall be reviewed as part of the review of communications.
the relevant decisions of the Conference of the Parties, the necessary
supplementary information for the purposes of ensuring compliance with
2. Expert review teams shall be coordinated by the secretariat and shall be
Article 3, to be determined in accordance with paragraph 4 below.
composed of experts selected from those nominated by Parties to the
Convention and, as appropriate, by intergovernmental organizations, in
2. Each Party included in Annex I shall incorporate in its national accordance with guidance provided for this purpose by the Conference of
communication, submitted under Article 12 of the Convention, the the Parties.
supplementary information necessary to demonstrate compliance with its
commitments under this Protocol, to be determined in accordance with
3. The review process shall provide a thorough and comprehensive technical
paragraph 4 below.
assessment of all aspects of the implementation by a Party of this Protocol.
The expert review teams shall prepare a report to the Conference of the
3. Each Party included in Annex I shall submit the information required Parties serving as the meeting of the Parties to this Protocol, assessing the
under paragraph 1 above annually, beginning with the first inventory due implementation of the commitments of the Party and identifying any
BIA | Environmental Law | 19
potential problems in, and factors influencing, the fulfilment of 2. The first review shall take place at the second session of the Conference
commitments. Such reports shall be circulated by the secretariat to all of the Parties serving as the meeting of the Parties to this Protocol. Further
Parties to the Convention. The secretariat shall list those questions of reviews shall take place at regular intervals and in a timely manner.
implementation indicated in such reports for further consideration by the Article 10
Conference of the Parties serving as the meeting of the Parties to this
Protocol. All Parties, taking into account their common but differentiated
responsibilities and their specific national and regional development
4. The Conference of the Parties serving as the meeting of the Parties to priorities, objectives and circumstances, without introducing any new
this Protocol shall adopt at its first session, and review periodically commitments for Parties not included in Annex I, but reaffirming existing
thereafter, guidelines for the review of implementation of this Protocol by commitments under Article 4, paragraph 1, of the Convention, and
expert review teams taking into account the relevant decisions of the continuing to advance the implementation of these commitments in order to
Conference of the Parties. achieve sustainable development, taking into account Article 4, paragraphs
3, 5 and 7, of the Convention, shall:
5. The Conference of the Parties serving as the meeting of the Parties to
this Protocol shall, with the assistance of the Subsidiary Body for (a) Formulate, where relevant and to the extent possible, cost-effective
Implementation and, as appropriate, the Subsidiary Body for Scientific and national and, where appropriate, regional programmes to improve the
Technological Advice, consider: quality of local emission factors, activity data and/or models which reflect
the socio-economic conditions of each Party for the preparation and periodic
(a) The information submitted by Parties under Article 7 and the reports of updating of national inventories of anthropogenic emissions by sources and
the expert reviews thereon conducted under this Article; and removals by sinks of all greenhouse gases not controlled by the Montreal
Protocol, using comparable methodologies to be agreed upon by the
(b) Those questions of implementation listed by the secretariat under Conference of the Parties, and consistent with the guidelines for the
paragraph 3 above, as well as any questions raised by Parties. preparation of national communications adopted by the Conference of the
Parties;
6. Pursuant to its consideration of the information referred to in paragraph 5
above, the Conference of the Parties serving as the meeting of the Parties (b) Formulate, implement, publish and regularly update national and, where
to this Protocol shall take decisions on any matter required for the appropriate, regional programmes containing measures to mitigate climate
implementation of this Protocol. change and measures to facilitate adequate adaptation to climate change:
Article 9
(i) Such programmes would, inter alia, concern the energy, transport and
1. The Conference of the Parties serving as the meeting of the Parties to industry sectors as well as agriculture, forestry and waste management.
this Protocol shall periodically review this Protocol in the light of the best Furthermore, adaptation technologies and methods for improving spatial
available scientific information and assessments on climate change and its planning would improve adaptation to climate change; and
impacts, as well as relevant technical, social and economic information.
Such reviews shall be coordinated with pertinent reviews under the (ii) Parties included in Annex I shall submit information on action under this
Convention, in particular those required by Article 4, paragraph 2(d), and Protocol, including national programmes, in accordance with Article 7; and
Article 7, paragraph 2(a), of the Convention. Based on these reviews, the other Parties shall seek to include in their national communications, as
Conference of the Parties serving as the meeting of the Parties to this appropriate, information on programmes which contain measures that the
Protocol shall take appropriate action. Party believes contribute to addressing climate change and its adverse
impacts, including the abatement of increases in greenhouse gas emissions,
and enhancement of and removals by sinks, capacity building and
adaptation measures;

BIA | Environmental Law | 20


(c) Cooperate in the promotion of effective modalities for the development, 2. In the context of the implementation of Article 4, paragraph 1, of the
application and diffusion of, and take all practicable steps to promote, Convention, in accordance with the provisions of Article 4, paragraph 3, and
facilitate and finance, as appropriate, the transfer of, or access to, Article 11 of the Convention, and through the entity or entities entrusted
environmentally sound technologies, know-how, practices and processes with the operation of the financial mechanism of the Convention, the
pertinent to climate change, in particular to developing countries, including developed country Parties and other developed Parties included in Annex II
the formulation of policies and programmes for the effective transfer of to the Convention shall:
environmentally sound technologies that are publicly owned or in the public
domain and the creation of an enabling environment for the private sector, (a) Provide new and additional financial resources to meet the agreed full
to promote and enhance the transfer of, and access to, environmentally costs incurred by developing country Parties in advancing the
sound technologies; implementation of existing commitments under Article 4, paragraph 1(a), of
the Convention that are covered in Article 10, subparagraph (a); and
(d) Cooperate in scientific and technical research and promote the
maintenance and the development of systematic observation systems and (b) Also provide such financial resources, including for the transfer of
development of data archives to reduce uncertainties related to the climate technology, needed by the developing country Parties to meet the agreed
system, the adverse impacts of climate change and the economic and social full incremental costs of advancing the implementation of existing
consequences of various response strategies, and promote the development commitments under Article 4, paragraph 1, of the Convention that are
and strengthening of endogenous capacities and capabilities to participate in covered by Article 10 and that are agreed between a developing country
international and intergovernmental efforts, programmes and networks on Party and the international entity or entities referred to in Article 11 of the
research and systematic observation, taking into account Article 5 of the Convention, in accordance with that Article.
Convention;
The implementation of these existing commitments shall take into account
(e) Cooperate in and promote at the international level, and, where the need for adequacy and predictability in the flow of funds and the
appropriate, using existing bodies, the development and implementation of importance of appropriate burden sharing among developed country Parties.
education and training programmes, including the strengthening of national The guidance to the entity or entities entrusted with the operation of the
capacity building, in particular human and institutional capacities and the financial mechanism of the Convention in relevant decisions of the
exchange or secondment of personnel to train experts in this field, in Conference of the Parties, including those agreed before the adoption of
particular for developing countries, and facilitate at the national level public this Protocol, shall apply mutatis mutandis to the provisions of this
awareness of, and public access to information on, climate change. Suitable paragraph.
modalities should be developed to implement these activities through the
relevant bodies of the Convention, taking into account Article 6 of the 3. The developed country Parties and other developed Parties in Annex II to
Convention; the Convention may also provide, and developing country Parties avail
themselves of, financial resources for the implementation of Article 10,
(f) Include in their national communications information on programmes through bilateral, regional and other multilateral channels.
and activities undertaken pursuant to this Article in accordance with relevant Article 12
decisions of the Conference of the Parties; and
1. A clean development mechanism is hereby defined.
(g) Give full consideration, in implementing the commitments under this
Article, to Article 4, paragraph 8, of the Convention. 2. The purpose of the clean development mechanism shall be to assist
Article 11 Parties not included in Annex I in achieving sustainable development and in
contributing to the ultimate objective of the Convention, and to assist
1. In the implementation of Article 10, Parties shall take into account the Parties included in Annex I in achieving compliance with their quantified
provisions of Article 4, paragraphs 4, 5, 7, 8 and 9, of the Convention. emission limitation and reduction commitments under Article 3.

BIA | Environmental Law | 21


3. Under the clean development mechanism: 9. Participation under the clean development mechanism, including in
activities mentioned in paragraph 3(a) above and in the acquisition of
(a) Parties not included in Annex I will benefit from project activities certified emission reductions, may involve private and/or public entities, and
resulting in certified emission reductions; and is to be subject to whatever guidance may be provided by the executive
board of the clean development mechanism.
(b) Parties included in Annex I may use the certified emission reductions
accruing from such project activities to contribute to compliance with part of 10. Certified emission reductions obtained during the period from the year
their quantified emission limitation and reduction commitments under Article 2000 up to the beginning of the first commitment period can be used to
3, as determined by the Conference of the Parties serving as the meeting of assist in achieving compliance in the first commitment period.
the Parties to this Protocol. Article 13

4. The clean development mechanism shall be subject to the authority and 1. The Conference of the Parties, the supreme body of the Convention, shall
guidance of the Conference of the Parties serving as the meeting of the serve as the meeting of the Parties to this Protocol.
Parties to this Protocol and be supervised by an executive board of the
clean development mechanism. 2. Parties to the Convention that are not Parties to this Protocol may
participate as observers in the proceedings of any session of the Conference
5. Emission reductions resulting from each project activity shall be certified of the Parties serving as the meeting of the Parties to this Protocol. When
by operational entities to be designated by the Conference of the Parties the Conference of the Parties serves as the meeting of the Parties to this
serving as the meeting of the Parties to this Protocol, on the basis of: Protocol, decisions under this Protocol shall be taken only by those that are
Parties to this Protocol.
(a) Voluntary participation approved by each Party involved;
3. When the Conference of the Parties serves as the meeting of the Parties
(b) Real, measurable, and long-term benefits related to the mitigation of to this Protocol, any member of the Bureau of the Conference of the Parties
climate change; and representing a Party to the Convention but, at that time, not a Party to this
Protocol, shall be replaced by an additional member to be elected by and
from amongst the Parties to this Protocol.
(c) Reductions in emissions that are additional to any that would occur in
the absence of the certified project activity.
4. The Conference of the Parties serving as the meeting of the Parties to
this Protocol shall keep under regular review the implementation of this
6. The clean development mechanism shall assist in arranging funding of
Protocol and shall make, within its mandate, the decisions necessary to
certified project activities as necessary.
promote its effective implementation. It shall perform the functions assigned
to it by this Protocol and shall:
7. The Conference of the Parties serving as the meeting of the Parties to
this Protocol shall, at its first session, elaborate modalities and procedures
(a) Assess, on the basis of all information made available to it in accordance
with the objective of ensuring transparency, efficiency and accountability
with the provisions of this Protocol, the implementation of this Protocol by
through independent auditing and verification of project activities.
the Parties, the overall effects of the measures taken pursuant to this
Protocol, in particular environmental, economic and social effects as well as
8. The Conference of the Parties serving as the meeting of the Parties to their cumulative impacts and the extent to which progress towards the
this Protocol shall ensure that a share of the proceeds from certified project objective of the Convention is being achieved;
activities is used to cover administrative expenses as well as to assist
developing country Parties that are particularly vulnerable to the adverse
(b) Periodically examine the obligations of the Parties under this Protocol,
effects of climate change to meet the costs of adaptation.
giving due consideration to any reviews required by Article 4, paragraph

BIA | Environmental Law | 22


2(d), and Article 7, paragraph 2, of the Convention, in the light of the 5. The rules of procedure of the Conference of the Parties and financial
objective of the Convention, the experience gained in its implementation procedures applied under the Convention shall be applied mutatis
and the evolution of scientific and technological knowledge, and in this mutandis under this Protocol, except as may be otherwise decided by
respect consider and adopt regular reports on the implementation of this consensus by the Conference of the Parties serving as the meeting of the
Protocol; Parties to this Protocol.

(c) Promote and facilitate the exchange of information on measures adopted 6. The first session of the Conference of the Parties serving as the meeting
by the Parties to address climate change and its effects, taking into account of the Parties to this Protocol shall be convened by the secretariat in
the differing circumstances, responsibilities and capabilities of the Parties conjunction with the first session of the Conference of the Parties that is
and their respective commitments under this Protocol; scheduled after the date of the entry into force of this Protocol. Subsequent
ordinary sessions of the Conference of the Parties serving as the meeting of
(d) Facilitate, at the request of two or more Parties, the coordination of the Parties to this Protocol shall be held every year and in conjunction with
measures adopted by them to address climate change and its effects, taking ordinary sessions of the Conference of the Parties, unless otherwise decided
into account the differing circumstances, responsibilities and capabilities of by the Conference of the Parties serving as the meeting of the Parties to
the Parties and their respective commitments under this Protocol; this Protocol.

(e) Promote and guide, in accordance with the objective of the Convention 7. Extraordinary sessions of the Conference of the Parties serving as the
and the provisions of this Protocol, and taking fully into account the relevant meeting of the Parties to this Protocol shall be held at such other times as
decisions by the Conference of the Parties, the development and periodic may be deemed necessary by the Conference of the Parties serving as the
refinement of comparable methodologies for the effective implementation of meeting of the Parties to this Protocol, or at the written request of any
this Protocol, to be agreed on by the Conference of the Parties serving as Party, provided that, within six months of the request being communicated
the meeting of the Parties to this Protocol; to the Parties by the secretariat, it is supported by at least one third of the
Parties.
(f) Make recommendations on any matters necessary for the
implementation of this Protocol; 8. The United Nations, its specialized agencies and the International Atomic
Energy
(g) Seek to mobilize additional financial resources in accordance with
Agency, as well as any State member thereof or observers thereto not party
Article 11, paragraph 2; to the Convention, may be represented at sessions of the Conference of the
Parties serving as the meeting of the Parties to this Protocol as observers.
Any body or agency, whether national or international, governmental or
(h) Establish such subsidiary bodies as are deemed necessary for the
non-governmental, which is qualified in matters covered by this Protocol
implementation of this Protocol;
and which has informed the secretariat of its wish to be represented at a
session of the Conference of the Parties serving as the meeting of the
(i) Seek and utilize, where appropriate, the services and cooperation of, and Parties to this Protocol as an observer, may be so admitted unless at least
information provided by, competent international organizations and one third of the Parties present object. The admission and participation of
intergovernmental and non-governmental bodies; and observers shall be subject to the rules of procedure, as referred to in
paragraph 5 above.
(j) Exercise such other functions as may be required for the implementation Article 14
of this Protocol, and consider any assignment resulting from a decision by
the Conference of the Parties. 1. The secretariat established by Article 8 of the Convention shall serve as
the secretariat of this Protocol.

BIA | Environmental Law | 23


2. Article 8, paragraph 2, of the Convention on the functions of the Article 17
secretariat, and
The Conference of the Parties shall define the relevant principles,
Article 8, paragraph 3, of the Convention on arrangements made for the modalities, rules and guidelines, in particular for verification, reporting and
functioning of the secretariat, shall apply mutatis mutandis to this Protocol. accountability for emissions trading. The Parties included in Annex B may
The secretariat shall, in addition, exercise the functions assigned to it under participate in emissions trading for the purposes of fulfilling their
this Protocol. commitments under Article 3. Any such trading shall be supplemental to
Article 15 domestic actions for the purpose of meeting quantified emission limitation
and reduction commitments under that Article.
1. The Subsidiary Body for Scientific and Technological Advice and the Article 18
Subsidiary Body for Implementation established by Articles 9 and 10 of the
Convention shall serve as, respectively, the Subsidiary Body for Scientific The Conference of the Parties serving as the meeting of the Parties to this
and Technological Advice and the Subsidiary Body for Implementation of Protocol shall, at its first session, approve appropriate and effective
this Protocol. The provisions relating to the functioning of these two bodies procedures and mechanisms to determine and to address cases of non-
under the Convention shall apply mutatis mutandis to this Protocol. Sessions compliance with the provisions of this Protocol, including through the
of the meetings of the Subsidiary Body for Scientific and Technological development of an indicative list of consequences, taking into account the
Advice and the Subsidiary Body for Implementation of this Protocol shall be cause, type, degree and frequency of non-compliance. Any procedures and
held in conjunction with the meetings of, respectively, the Subsidiary Body mechanisms under this Article entailing binding consequences shall be
for Scientific and Technological Advice and the Subsidiary Body for adopted by means of an amendment to this Protocol.
Implementation of the Convention. Article 19

2. Parties to the Convention that are not Parties to this Protocol may The provisions of Article 14 of the Convention on settlement of disputes
participate as observers in the proceedings of any session of the subsidiary shall apply mutatis mutandis to this Protocol.
bodies. When the subsidiary bodies serve as the subsidiary bodies of this Article 20
Protocol, decisions under this Protocol shall be taken only by those that are
Parties to this Protocol. 1. Any Party may propose amendments to this Protocol.

3. When the subsidiary bodies established by Articles 9 and 10 of the 2. Amendments to this Protocol shall be adopted at an ordinary session of
Convention exercise their functions with regard to matters concerning this the Conference of the Parties serving as the meeting of the Parties to this
Protocol, any member of the Bureaux of those subsidiary bodies Protocol. The text of any proposed amendment to this Protocol shall be
representing a Party to the Convention but, at that time, not a party to this communicated to the Parties by the secretariat at least six months before
Protocol, shall be replaced by an additional member to be elected by and the meeting at which it is proposed for adoption. The secretariat shall also
from amongst the Parties to this Protocol. communicate the text of any proposed amendments to the Parties and
Article 16 signatories to the Convention and, for information, to the Depositary.

The Conference of the Parties serving as the meeting of the Parties to this 3. The Parties shall make every effort to reach agreement on any proposed
Protocol shall, as soon as practicable, consider the application to this amendment to this Protocol by consensus. If all efforts at consensus have
Protocol of, and modify as appropriate, the multilateral consultative process been exhausted, and no agreement reached, the amendment shall as a last
referred to in Article 13 of the Convention, in the light of any relevant resort be adopted by a three-fourths majority vote of the Parties present
decisions that may be taken by the Conference of the Parties. Any and voting at the meeting. The adopted amendment shall be
multilateral consultative process that may be applied to this Protocol shall communicated by the secretariat to the Depositary, who shall circulate it to
operate without prejudice to the procedures and mechanisms established in all Parties for their acceptance.
accordance with Article 18.
BIA | Environmental Law | 24
4. Instruments of acceptance in respect of an amendment shall be annex or adoption of the amendment to the annex, except for those Parties
deposited with the Depositary. An amendment adopted in accordance with that have notified the Depositary, in writing, within that period of their non-
paragraph 3 above shall enter into force for those Parties having accepted it acceptance of the annex or amendment to the annex. The annex or
on the ninetieth day after the date of receipt by the Depositary of an amendment to an annex shall enter into force for Parties which withdraw
instrument of acceptance by at least three fourths of the Parties to this their notification of non-acceptance on the ninetieth day after the date on
Protocol. which withdrawal of such notification has been received by the Depositary.

5. The amendment shall enter into force for any other Party on the ninetieth 6. If the adoption of an annex or an amendment to an annex involves an
day after the date on which that Party deposits with the Depositary its amendment to this Protocol, that annex or amendment to an annex shall
instrument of acceptance of the said amendment. not enter into force until such time as the amendment to this Protocol
Article 21 enters into force.

1. Annexes to this Protocol shall form an integral part thereof and, unless 7. Amendments to Annexes A and B to this Protocol shall be adopted and
otherwise expressly provided, a reference to this Protocol constitutes at the enter into force in accordance with the procedure set out in Article 20,
same time a reference to any annexes thereto. Any annexes adopted after provided that any amendment to Annex B shall be adopted only with the
the entry into force of this Protocol shall be restricted to lists, forms and any written consent of the Party concerned.
other material of a descriptive nature that is of a scientific, technical, Article 22
procedural or administrative character.
1. Each Party shall have one vote, except as provided for in paragraph 2
2. Any Party may make proposals for an annex to this Protocol and may below.
propose amendments to annexes to this Protocol.
2. Regional economic integration organizations, in matters within their
3. Annexes to this Protocol and amendments to annexes to this Protocol competence, shall exercise their right to vote with a number of votes equal
shall be adopted at an ordinary session of the Conference of the Parties to the number of their member States that are Parties to this Protocol. Such
serving as the meeting of the Parties to this Protocol. The text of any an organization shall not exercise its right to vote if any of its member
proposed annex or amendment to an annex shall be communicated to the States exercises its right, and vice versa.
Parties by the secretariat at least six months before the meeting at which it Article 23
is proposed for adoption. The secretariat shall also communicate the text of
any proposed annex or amendment to an annex to the Parties and The Secretary-General of the United Nations shall be the Depositary of this
signatories to the Convention and, for information, to the Depositary. Protocol.
Article 24
4. The Parties shall make every effort to reach agreement on any proposed
annex or amendment to an annex by consensus. If all efforts at consensus 1. This Protocol shall be open for signature and subject to ratification,
have been exhausted, and no agreement reached, the annex or amendment acceptance or approval by States and regional economic integration
to an annex shall as a last resort be adopted by a three-fourths majority organizations which are Parties to the Convention. It shall be open for
vote of the Parties present and voting at the meeting. The adopted annex or signature at United Nations Headquarters in New York from
amendment to an annex shall be communicated by the secretariat to the
Depositary, who shall circulate it to all Parties for their acceptance. 16 March 1998 to 15 March 1999. This Protocol shall be open for accession
from the day after the date on which it is closed for signature. Instruments
5. An annex, or amendment to an annex other than Annex A or B, that has of ratification, acceptance, approval or accession shall be deposited with the
been adopted in accordance with paragraphs 3 and 4 above shall enter into Depositary.
force for all Parties to this Protocol six months after the date of the
communication by the Depositary to such Parties of the adoption of the
BIA | Environmental Law | 25
2. Any regional economic integration organization which becomes a Party to No reservations may be made to this Protocol.
this Protocol without any of its member States being a Party shall be bound
by all the obligations under this Protocol. In the case of such organizations, Article 27
one or more of whose member States is a Party to this Protocol, the
organization and its member States shall decide on their 1. At any time after three years from the date on which this Protocol has
respective responsibilities for the performance of their obligations under this entered into force for a Party, that Party may withdraw from this Protocol by
Protocol. In such cases, the organization and the member States shall not giving written notification to the Depositary.
be entitled to exercise rights under this Protocol concurrently.
2. Any such withdrawal shall take effect upon expiry of one year from the
3. In their instruments of ratification, acceptance, approval or accession, date of receipt by the Depositary of the notification of withdrawal, or on
regional economic integration organizations shall declare the extent of their such later date as may be specified in the notification of withdrawal.
competence with respect to the matters governed by this Protocol. These
organizations shall also inform the Depositary, who shall in turn inform the
3. Any Party that withdraws from the Convention shall be considered as also
Parties, of any substantial modification in the extent of their competence.
having withdrawn from this Protocol.
Article 25
Article 28

1. This Protocol shall enter into force on the ninetieth day after the date on
The original of this Protocol, of which the Arabic, Chinese, English, French,
which not less than 55 Parties to the Convention, incorporating Parties
Russian and Spanish texts are equally authentic, shall be deposited with the
included in Annex I which accounted in total for at least 55 per cent of the
Secretary-General of the United Nations.
total carbon dioxide emissions for 1990 of the Parties included in Annex I,
have deposited their instruments of ratification, acceptance, approval or
accession. DONE at Kyoto this eleventh day of December one thousand nine hundred
and ninety-seven.
2. For the purposes of this Article, "the total carbon dioxide emissions for
1990 of the Parties included in Annex I" means the amount communicated IN WITNESS WHEREOF the undersigned, being duly authorized to that
on or before the date of adoption of this Protocol by the Parties included in effect, have affixed their signatures to this Protocol on the dates indicated.
Annex I in their first national communications submitted in accordance with
Article 12 of the Convention. Annex A Annex B

Greenhouse gases Party Quantified emission


3. For each State or regional economic integration organization that ratifies,
Carbon dioxide (CO2) limitation or
accepts or
Methane (CH4) reduction commitment
Nitrous oxide (N2O) (percentage of base year or period)
approves this Protocol or accedes thereto after the conditions set out in Hydrofluorocarbons (HFCs) Australia 108
paragraph 1 above for entry into force have been fulfilled, this Protocol shall Perfluorocarbons (PFCs) Austria 92
enter into force on the ninetieth day following the date of deposit of its Sulphur hexafluoride (SF6) Belgium 92
instrument of ratification, acceptance, approval or accession. Bulgaria* 92
Sectors/source categories Canada 94
4. For the purposes of this Article, any instrument deposited by a regional Energy Croatia* 95
economic integration organization shall not be counted as additional to Fuel combustion Czech Republic* 92
those deposited by States members of the organization. Energy industries Denmark 92
Article 26 Manufacturing industries and Estonia* 92
construction European Community 92

BIA | Environmental Law | 26


Transport Finland 92 administration in its generic terms as dictated by the limited scope of
Other sectors France 92 services then required, nevertheless its functions and responsibilities
Other Germany 92 included several concerns related to the management of a wide range of
Fugitive emissions from fuels Greece 92 natural resources, such as forest inventory and protection, land
Solid fuels Hungary* 94 classification, watershed protection, water, biodiversity and mineral
Oil and natural gas Iceland 110 resources conservation.
Other Ireland 92
Industrial processes Italy 92 In 1901, the Department of Interior was created vested with the powers
Mineral products Japan 94 and authority on matters that included natural resources. The Department
Chemical industry Latvia* 92 of Interior continued to exist for about 15 years until November 18, 1916
Metal production Liechtenstein 92 when Act No. 2666 was enacted. The act entitled "An Act to Reorganize the
Other production Lithuania* 92 Executive Department of the Government of the Philippine Islands"
Production of halocarbons and Luxembourg 92 abolished the Department of Interior and transferred its functions and
sulphur hexafluoride Monaco 92 authority to the Department of Agriculture and Natural Resources (DANR).
Consumption of halocarbons and Netherlands 92
sulphur hexafluoride New Zealand 100 Under Act 2666, the DANR took "direct executive control, direction and
Other Norway 101 supervision of the Bureau of Agriculture, Bureau of Forestry, Bureau of
Solvent and other product use Poland* 94 Lands, Bureau of Science and the Weather Bureau and all matters
Agriculture Portugal 92 concerning hunting, fisheries, sponges and other sea products and such
Enteric fermentation Romania* 92 others as may be hereafter assigned to it by law". The Bureau of Science
Manure management Russian Federation* 100 was the result of the merger of the Mining Bureau and the Bureau of
Rice cultivation Slovakia* 92 Government Laboratories.
Agricultural soils Slovenia* 92
Prescribed burning of savannas Spain 92 In 1932, a new reorganization act was passed, providing for the renaming
Field burning of agricultural residues Sweden 92 of DANR to Department of Agriculture and Commerce (DAC) and the
Other Switzerland 92 addition of another bureau to it - the Bureau of Commerce. It was also at
Waste Ukraine* 100 this time that the Bureau of Agriculture was split into the Bureau of Plant
Solid waste disposal on land United Kingdom of Great Britain and Industry and the Bureau of Animal Industry. This raised to seven the
Wastewater handling Northern Ireland 92 number of bureaus in the former DANR.
Waste incineration United States of America 93
Other A year later, by virtue of the same Act, the following entities were organized
* Countries that are undergoing the and placed under the direct control and supervision of the Secretary of
process of transition to a market Agriculture and Commerce: Divisions of Accounts and Property, Statistics
economy. and Publications, Mineral Resources, Industrial Engineering, Home
Economics and Navigation, Fish and Game Administration, Fiber Inspection
Source: Service and Scientific Library Division.
http://unfccc.int/essential_background/kyoto_protocol/items/1678.php
During the period 1934 to 1938, the Divisions of Mineral Resources,
DENR: History and Related Laws Industrial Engineering and Home Economics, Fish and Game Administration
and Scientific Library Division were placed under the Bureau of Science
The history of the Department goes back as far as 1863 when by virtue of a while the Division of Accounts and Property was abolished. One highlight of
Spanish Royal Decree an office known as Inspeccion General de Montes was this same period was the creation of the Bureau of Mines (out of the
created in the Philippines. Although that agency focused on forest erstwhile Division of Mineral resources) by virtue of Commonwealth Act No.
136.
BIA | Environmental Law | 27
August 11, 1976 under PD No. 977; the Natural Resources Management
From 1938 up to the outbreak of the Second World War in 1941, other Center (NRMC), on October 25, 1976 under PD NO. 1041; the National
organizational changes took place. The Fish and Game Administration was Environmental Protection Council (NEPC), on April 18, 1977 under PD No.
divided. The functions relating to fish and fisheries went to the Division of 1121; and the Mineral Reservation Development Board (MRDB) taking over
Fisheries under the Office of the Secretary of DAC while those relating to the functions and powers of the abolished SMRB on February 1978 under
game administration went to the Bureau of Forestry. A new division called PD NO. 1305.
the Division of Soil Survey was created under C.A. No. 418 to undertake soil
and agronomical survey and placed under the Office of the Secretary. The With the shift to a parliamentary form of government in 1978, the DNR
Division of Statistics and Publications rose to become the Bureau of Census became the Ministry of Natural Resources (MNR). A component arm, the
and Statistics under the Office of the President. The Office of the Secretary Natural Resources Development Corporation was started under Executive
was reorganized into 3 divisions, namely: Administrative, Legal and Order No. 786 in 1982.
Technical Divisions. The Natural History Museum Division was transferred
from the Bureau of Science to the Office of the Secretary. In 1985, the concern on fish and fisheries was transferred to the Ministry of
Agriculture, leaving the MNR with only three (3) bureaus aside from the
After the war, on July 1, 1945, the DAC was reconstituted on account of the attached entities.
changes made by the Philippine Republic. A reorganization act in 1947
brought back the name Department of Agriculture and Natural Resources On January 30, 1987, Executive Order No. 131 was issued creating the
but transferred the Bureau of Commerce and Weather Bureau to a new Department of Energy, Environment and Natural Resources (DEENR) that
Department of Commerce and Industry. The Divisions of Fisheries and took the powers and functions of the MNR and embraced the emerging
Natural History Museum were transformed into bureaus and were placed critical concerns about energy and environment. However, EO 131 was
under the Office of the President. never implemented. Executive Order No. 192 came out on June 10, 1987,
reorganizing the DEENR and renaming it as the Department of Environment
An enabling act in 1953 added the Bureau of Agricultural Extension to the and Natural Resources (DENR).
DANR. On this same year, the Office of Agricultural Information was
established. The main features of EO 192 were the transfer of the energy matters to the
office of the President and the decentralization of the bureaucracy by
There were no major changes in the DANR's structure from 1954 to 1974. transforming the former line bureaus to staff bureaus and transforming
However, the end of DANR came on May 17, 1974 when Presidential Decree most of the line functions to the regional and field offices. These features
No. 461 was issued providing for the Department\'s reorganization into 2 are in fact dramatic changes for they radically altered the concept of the
departments, namely: the Department of Agriculture (DA) and the bureaucracy and for the first time moved to institutionalize the
Department of Natural Resources (DNR). decentralization of functions and authority within the Department.

Under this set-up, the DNR took the following line bureaus and attached In 1993, Laguna Lake Development Authority (LLDA) was attached to the
agencies: Bureau of Forest Development (BFD), Bureau of Mines (BM), DENR by virtue of Executive Order No. 149, thereby adding to the mandate
Bureau of Lands (BL), Bureau of Fisheries and Aquatic Resources (BFAR), of the Department its complete supervision.
National Committee for Mineral Exploration and Survey Operations
(NACOMESCO), Presidential Committee on Wood Industries Development In October 1993, by virtue of A.O. No. 90, the Project Management Office
(PCWID), Fishery Industry Development Council (FIDC), Surigao Mineral (PMO) on Solid Waste Management under the Presidential Task Force on
Reservations Board (SMRB) and the Presidential Action Committee on Land Waste Management was created, with the DENR as the lead-executing
Problems (PACLAP). agency. The PMO assists the Task Force in the formulation of the necessary
standards/guidelines and criteria for effective, efficient and economical
Certain agencies were created later on and attached to the DNR. These waste management.
were the Forest Research Institute (FORI) established on December 8, 1974
under PD No. 607; the Philippine Fish Marketing Authority (PFMA), on
BIA | Environmental Law | 28
In 1995, the passage into law of the Philippine Mining Act or R. A. No. 7942 NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
restored the line function of the Mines and Geo-Sciences Bureau. by virtue of the powers vested in me by the Constitution, do hereby order
and decree:
On October 15, 1996, Executive Order No. 374 was issued creating the
Presidential Task Force on Water Resources Development and Management Section 1. Policy. It is hereby declared a continuing policy of the State (a)
(PTFWRDM), chaired by the Secretary of the DENR. PTFWRDM is tasked to to create, develop, maintain and improve conditions under which man and
coordinate the projects of various government agencies and departments nature can thrive in productive and enjoyable harmony with each other, (b)
involved in water to ensure efficient management and development of the to fulfill the social, economic and other requirements of present and future
country's water resources. generations of Filipinos, and (c) to insure the attainment of an
environmental quality that is conducive to a life of dignity and well-being.
Pursuant to the issuance of Executive Order No. 406 on March 21, 1997, the
Philippine Economic Environmental and Natural Resources Accounting Section 2. Goal. In pursuing this policy, it shall be the responsibility of the
(PEENRA) System was institutionalized thus creating units within the Government, in cooperation with concerned private organizations and
organizational structure of the DENR, NEDA and the NSCB. It is tasked to entities, to use all practicable means, consistent with other essential
generate macro-indicators that shall reflect the relationships and considerations of national policy, in promoting the general welfare to the
interactions between economy and the natural resources, and the end that the Nation may (a) recognize, discharge and fulfill the
establishment of a reliable data base on social valuation estimates of responsibilities of each generation as trustee and guardian of the
environmental services. environment for succeeding generations, (b) assure the people of a safe,
decent, healthful, productive and aesthetic environment, (c) encourage the
Source: http://www.denr.gov.ph/about-us/history.html widest exploitation of the environment without degrading it, or endangering
human life, health and safety or creating conditions adverse to agriculture,
PHILIPPINE ENVIRONMENT POLICY commerce and industry, (d) preserve important historic and cultural aspects
of the Philippine heritage, (e) attain a rational and orderly balance between
PRESIDENTIAL DECREE No. 1151 population and resource use, and (f) improve the utilization of renewable
and non-renewable resources.
PHILIPPINE ENVIRONMENTAL POLICY
Section 3. Right to a Healthy Environment. In furtherance of these goals
WHEREAS, the individual and, at times, conflicting, demands of population and policies, the Government recognizes the right of the people to a
growth, urbanization, industrial expansion, rapid natural resources utilization healthful environment. It shall be the duty and responsibility of each
and increasing technological advances have resulted in a piecemeal- individual to contribute to the preservation and enhancement of the
approach concept of environmental protection; Philippine environment.

WHEREAS, such tunnel-vision concept is not conducive to the attainment of Section 4. Environmental Impact Statements. Pursuant to the above
an ideal environmental situation where man and nature can thrive in enunciated policies and goals, all agencies and instrumentalities of the
harmony with one another; and national government, including government-owned or controlled
corporations, as well as private corporations firms and entities shall prepare,
WHEREAS, there is now an urgent need to formulate an intensive, file and include in every action, project or undertaking which significantly
integrated program of environmental protection that will bring about a affects the quality of the environment a detail statement on
concerted effort towards the protection of the entire spectrum of the
environment through a requirement of environmental impact assessments (a) the environmental impact of the proposed action, project or
and statements: undertaking

BIA | Environmental Law | 29


(b) any adverse environmental effect which cannot be avoided WHEREAS, the national leadership has taken a step towards this direction
should the proposal be implemented; by creating the National Environmental Protection Council under Presidential
Decree No. 1121;
(c) alternative to the proposed action;
WHEREAS, it is necessary that the creation of the Council be implemented
(d) a determination that the short-term uses of the resources of the with the launching of a comprehensive program of environmental protection
environment are consistent with the maintenance and enhancement and management;
of the long-term productivity of the same; and
WHEREAS, such a program can assume tangible and meaningful
(e) whenever a proposal involve the use of depletable or non- significance only by establishing specific environment management policies
renewable resources, a finding must be made that such use and and prescribing environment quality standards in a Philippine Environment
commitment are warranted. Code:

Before an environmental impact statement is issued by a lead agency, all NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of
agencies having jurisdiction over, or special expertise on, the subject matter the Philippines, by virtue of the powers vested in me by the Constitution, do
involved shall comment on the draft environmental impact statement made hereby order and decree:
by the lead agency within thirty (30) days from receipt of the same.
Section 1. Short Title. This Decree shall be known and cited as the
Section 5. Agency Guidelines. The different agencies charged with "Philippine Environment Code."
environmental protection as enumerated in Letter of Instruction No. 422
shall, within sixty (60) days from the effectivity of this Decree, submit to the TITLE I
National Environmental Protection Council (NEPC), their respective AIR QUALITY MANAGEMENT
guidelines, rules and regulations to carry out the provisions of Sec. 4 hereof
on environmental impact assessments and statements. Section 2. Purposes. The purposes of this Title are:

Section 6. Repealing Clause. All Acts, Presidential Decrees, executive (a) to achieve and maintain such levels of air quality as to protect
orders, rules and regulations or parts thereof which are inconsistent with public health; and
the provisions of this Decree are hereby repealed, amended or modified
accordingly. (b) to prevent to the greatest extent practicable, injury and/or
damage to plant and animal life and property, and promote the
Section 7. Effectivity. This Decree shall take effect immediately. social and economic development of the country.

Chapter I
PHILIPPINE ENVIRONMENT CODE Standards

Section 3. Ambient Air Quality Standards. There shall be established


PRESIDENTIAL DECREE No. 1152 ambient air quality standards which shall prescribe the maximum
concentration of air pollutants permissible in the atmosphere consistent with
PHILIPPINE ENVIRONMENTAL CODE public health, safety and general welfare.

WHEREAS, the broad spectrum of environment has become a matter of vital


concern to the government;
BIA | Environmental Law | 30
In the establishment of ambient air quality standards, factors such as local standards, including the monitoring and surveillance of air pollutants,
atmospheric conditions, location and land use, and available technology, licensing and permitting of air pollution control facilities, and the
shall be considered among others. promulgation of appropriate rules and regulations.

Section 4. National Emission Standards. There shall be established national Existing air quality emission and noise standards may be revised and/or
emission standards for new and existing stationary and mobile sources of modified consistent with new development and technology.
pollution which shall consider among others such factors as type of industry,
practicable control technology available, location and land use, and the Section 9. Aircraft Noise. Community noise standards around airports shall
nature of pollutants emitted. be implemented by the Civil Aeronautics Administration in coordination with
the National Pollution Control Commission.
Section 5. Community Noise Standards. Appropriate standards for
community noise levels shall be established considering, among others, Section 10. Vehicular Emissions. The Land Transportation Commission, in
location, zoning and land use classification. coordination with the National Pollution Control Commission, shall
implement emission standards for motor vehicles and may deputize other
Section 6. Standards for Noise-Producing Equipment. There shall be appropriate law enforcement agencies for the purpose.
established a standard for noise producing equipment such as construction
equipment, transportation equipment, stationary engines, and electrical or Section 11. Radioactive Emissions. The release and emission of
electronic equipment and such similar equipment or contrivances. The radioactivity into the environment incident to the establishment or
standards shall set a limit on the acceptable level of noise emitted from a possession of nuclear energy facilities and radioactive materials, handling,
given equipment for the protection of public health and welfare, considering transport, production, storage, use and disposal of radioactive materials
among others, the magnitude and condition of use, the degree of noise shall be regulated by the Philippine Atomic Energy Commission in
reduction achievable through the application of best available technology coordination with other appropriate government agencies.
and the cost of compliance.
Chapter III
The Installation of any noise-producing equipment shall conform with the Monitoring
requirements of Presidential Decree No. 1096 and other applicable laws as
well as their implementing rules and regulations. Section 12. Air Quality Monitoring. The National Pollution Control
Commission, in coordination with appropriate government agencies, shall
Section 7. Aircraft Emission and Sonic Booms. Appropriate government establish to the greatest extent practicable an air quality monitoring
agencies shall encourage research studies on the harmful effects of aircraft network. Such air quality monitoring network shall put to maximum use the
emissions in the environment in order to establish permissible emission capabilities of these agencies.
standards.
The National Environmental Protection Council shall be furnished with the
Research and studies shall also be undertaken to mitigate and/or minimize results of air quality monitoring activities.
the effects of sonic booms in the environment.
Section 13. Weather Modification. The Philippine Atmospheric, Geophysical
Chapter II and Astronomical Services Administration shall monitor regularly
Regulation and Enforcement meteorological factors affecting environmental conditions in order to
effectively guide air pollution monitoring activities.
Section 8. Air Quality and Noise Standards. The National Pollution Control
Commission in coordination with appropriate government agencies shall be Activities relating to weather modification such as rainfall stimulation and
responsible for the enforcement of ambient air quality emission and noise storm seeding experiments shall be undertaken in consultation and/or in
BIA | Environmental Law | 31
coordination with the Philippine Atmospheric, Geophysical and Astronomical such steps as may be necessary to upgrade the quality of said water. Other
Service Administration. government agencies may adopt higher standards for a particular body of
water, subject to the approval of the National Pollution Control Commission.
TITLE II
WATER QUALITY MANAGEMENT Section 17. Upgrading of Water Quality. Where the quality of water has
deteriorated to a degree where its state will adversely affect its best usage,
Section 14. Purpose. It is the purpose of this Title to prescribe the government agencies concerned shall take such measures as may be
management guidelines aimed to protect and improve the quality of necessary to upgrade the quality of such water to meet the prescribed
Philippine water resources through: water quality standards.

(a) classification of Philippine waters; Section 18. Water Quality Standards. The National Pollution Control
Commission shall prescribe quality and effluent standards consistent with
(b) establishment of water quality standards; the guidelines set by the National Environmental Protection Council and the
classification of waters prescribed in the preceding sections, taking into
consideration, among others, the following:
(c) protection and improvement of the quality of the Philippine water
resources, and
(a) the standard of water quality or purity may vary according to
beneficial uses; and
(d) responsibilities for surveillance and mitigation of pollution incidents.

(b) the technology relating to water pollution control.


Chapter I
Classification and Standards
Chapter II
Protection and Improvement of Water Quality
Section 15. Classification of Philippine Waters. The National Pollution
Control Commission, in coordination with appropriate government agencies,
shall classify Philippine waters, according to their best usage. In classifying Section 19. Enforcement and Coordination. The production, utilization,
said waters, the National Pollution Control Commission shall take into storage and distribution of hazardous, toxic and other substances such as
account, among others, the following: radioactive materials, heavy metals, pesticides, fertilizers, and oils, and the
disposal, discharge and dumping of untreated wastewater, mine tailings and
other substances that may pollute any body of water of the Philippines
(a) the existing quality of the body of water at the time of
resulting from normal operations of industries, water-borne sources, and
classification;
other human activities as well as those resulting from accidental spills and
discharge shall be regulated by appropriate government agencies pursuant
(b) the size, depth, surface area covered, volume, direction, rate of to their respective charters and enabling legislations. In the performance of
flow, gradient of stream; and the above functions, the government agencies concern shall coordinate with
the National Environmental Protection Council and furnish the latter with
(c) the most beneficial uses of said bodies of water and lands such information as may be necessary to enable it to attain its objectives
bordering them for residential, agricultural, commercial, industrial, under Presidential Decree No. 1121.
navigational, recreational, and aesthetic purposes.
Section 20. Clean-up Operations. It shall be the responsibility of the
Section 16. Reclassification of Waters Based on Intended Beneficial polluter to contain, remove and clean up water pollution incidents at his
Use. Where the public interest so requires, the National Pollution Control own expense. In case of his failure to do so, the government agencies
Commission, in coordination with appropriate government agencies, shall concerned shall undertake containment, removal and clean-up operations
reclassify a body of water based on the intended beneficial use and take
BIA | Environmental Law | 32
and expenses incurred in said operations shall be charged against the (c) a comprehensive and accurate determination of the adaptability
persons and/or entities responsible for such pollution. of the land for community development, agriculture, industry,
commerce and other fields of endeavor;
Section 21. Water Quality Monitoring and Surveillance. The various
government agencies concerned with environmental protection shall (d) a method of identification of areas where uncontrolled
establish to the greatest extent practicable a water quality surveillance and development could result in irreparable damage to important
monitoring network with sufficient stations and sampling schedules to meet historic, cultural, or aesthetic values, or natural systems or
the needs of the country. Said water quality surveillance network shall put processes of national significance;
to maximum use the capabilities of such government agencies. Each agency
involved in such network shall report to the National Environmental (e) a method for exercising control by the appropriate government
Protection Council the results of these monitoring activities as the need agencies over the use of land in areas of critical environmental
arises. concern and areas impacted by public facilities including, but not
limited to, airports, highways, bridges, ports and wharves, buildings
TITLE III and other infrastructure projects;
LAND USE MANAGEMENT
(f) a method to ensure the consideration of regional development
Section 22. Purpose. The purposes of this Title are: and land use in local regulations;

(a) to provide a rational, orderly and efficient acquisition, utilization (g) policy for influencing the location of new communities and
and disposition of land and its resources in order to derive methods for assuring appropriate controls over the use of land
therefrom maximum benefits; and around new communities;

(b) to encourage the prudent use and conservation of land (h) a system of controls and regulations pertaining to areas and
resources in order to prevent and imbalance between the nation's development activities designed to ensure that any source of
needs and such resources. pollution will not be located where it would result in a violation of
any applicable environmental pollution control regulations; and
Section 23. National Land Use Scheme. The Human Settlements
Commission, in coordination with the appropriate agencies of the (i) a recommended method for the periodic revisions and updating
government, shall formulate and recommend to the National Environmental of the national land use scheme to meet changing conditions.
Protection Council a land use scheme consistent with the purpose of this
Title. Section 24. Location of Industries. In the location of industries, factories,
plants, depots and similar industrial establishments, the regulating or
The Land Use Scheme shall include among others, the following: enforcing agencies of the government shall take into consideration the
social, economic, geographic and significant environmental impact of said
(a) a science-based and technology-oriented land inventory and establishments.
classification system;
TITLE IV
(b) a determination of present land uses, the extent to which they NATURAL RESOURCES MANAGEMENT AND CONSERVATION
are utilized, underutilized, rendered idle or abandoned;
Section 25. Purposes. The purposes of this Title are:

BIA | Environmental Law | 33


(a) to provide the basic policy on the management and conservation exploitation and conservation of wildlife resources and shall encourage
of the country's natural resources to obtain the optimum benefits citizen participation in the maintenance and/or enhancement of their
therefrom and to preserve the same for the future generations; and continuous productivity.

(b) to provide general measures through which the aforesaid policy Section 29. Measures for Rational Exploitation. Measures for rational
may be carried out effectively. exploitation of wildlife resources may include, but shall not be limited to, the
following:
Chapter I
Fisheries and Aquatic Resources (a) regulating the marketing of threatened wildlife resources.

Section 26. Management Policy. The National government, through the (b) reviewing all existing rules and regulations on the exploitation of
Department of Natural Resources, shall establish a system of rational wildlife resources with a view of formulating guidelines for the
exploitation of fisheries and aquatic resources within the Philippine territory systematic and effective enforcement thereof; and
and shall encourage citizen participation therein to maintain and/or enhance
the optimum and continuous productivity of the same. (c) conserving the threatened species of fauna, increasing their rate
of reproduction, maintaining their original habitat, habitat
Section 27. Measures for National Exploitation. Measures for the national manipulation, determining bag/creel limits, population control in
exploitation of fisheries and other aquatic resources may include, but shall relation to the carrying capacity of any given area, banning of
not be limited to, the following: indiscriminate and/or destructive means of catching or hunting
them.
(a) undertaking manpower and expertise development;
Chapter III
(b) acquiring the necessary facilities and equipment; Forestry and Soil Conservation

(c) regulating the marketing of threatened species of fish or other Section 30. Management Policy for Forestry. The national government,
aquatic resources; through the Department of Natural Resources, shall undertake a system of
rational exploitation of forest resources and shall encourage citizen
(d) reviewing all existing rules and regulations on the exploitation of participation therein to keep the country's forest resources at maximum
fisheries and aquatic resources with a view of formulating guidelines productivity at all time.
for the systematic and effective enforcement thereof; and
Section 31. Measures for Rational Exploitation of Forest
(e) conserving the vanishing species of fish and aquatic resources Resources. Measures for the rational exploitation of forest resources may
such as turtles, sea snakes, crocodiles, corals, as well as include, but shall not be limited to, the following:
maintaining the mangrove areas, marshes and inland waters, coral
reef-areas and islands serving as sanctuaries for fish and other (a) regulating the marketing of threatened forest resources;
aquatic life.
(b) reviewing all existing rules and regulations on the exploitation of
Chapter II forest resources with a view of formulating guidelines for the
Wildlife systematic and efficient enforcement thereof;

Section 28. Management Policy. The national government through the (c) conserving threatened species of flora as well as increasing their
Department of Natural Resources, shall establish a system of rational rate of propagation; the banning of destructive modes of
BIA | Environmental Law | 34
exploitation, kaingin making or shifting cultivation, indiscriminate (e) measures to control the damming, diversion, taking, and use of
harvesting of minor forest products the recycling methods of waste natural water, so far as any such act may affect the quality and
materials, and availability of natural water for other purposes; and

(d) carrying out a continuing effect on reforestation; timber stand (f) measures to stimulate research in matters relating to natural
improvement; forest protection; land classification; forest water and soil conservation and the application of knowledge
occupancy management; agri-silviculture; range management; agri- thereby acquired.
silvicultural/kaingin management; industrial tree plantation; parks
and wildlife management; multiple use forest; timber management Section 35. Measures to Mitigate Destructive Effects of Calamities. The
and forest research. national government, through the Philippine Atmospheric, Geophysical and
Astronomical Services Administration, shall promote intensified and
Section 32. Use of Fertilizers and Pesticides. The use of fertilizers and concerted research efforts on weather modification, typhoon, earthquake,
pesticides in agriculture shall be regulated prescribing therefor a tolerance tsunami, storm surge, and other tropical natural phenomena in order to
level in their use. Their use shall be monitored by appropriate government bring about any significant effect to mitigate or prevent their destructive
agencies to provide empirical data for effective regulation. effects.

Section 33. Management Policy on Soil Conservation. The national Chapter V


government, through the Department of Natural Resources and the Energy Development
Department of Agriculture, shall likewise undertake a soil conservation
program including therein the identification and protection of critical Section 36. Policy. Consistent with the environmental protection policies,
watershed areas, encouragement of scientific farming techniques, physical the national government, through the Energy Development Board, shall
and biological means of soil conservation, and short-term and long-term undertake an energy development program encouraging the utilization of
researches and technology for effective soil conservation. invariant sources such as solar, wind and tidal energy.

Chapter IV Section 37. Measures for Energy Development. Measures for energy
Flood Control and Natural Calamities development program may include, but shall not be limited to, the
following:
Section 34. Measures in Flood Control Program. In addition to the
pertinent provisions of existing laws, the following shall be included in a soil (a) setting up of pilot plants utilizing invariant sources of energy;
erosion, sediment and flood control program;
(b) training of technical personnel for purposes of energy
(a) the control of soil erosion on the banks of rivers, the shores of development; and
lakes, and the seashores;
(c) conducting researches aimed at developing technology for
(b) the control of flow and flooding in and from rivers and lakes; energy development.

(c) the conservation of water which, for purposes of this Section Section 38. Safety Measures on Energy Development. Rules and
shall mean forms of water, but shall not include captive water; regulations shall be promulgated to prevent or mitigate the adverse effects
of energy development on the environment. For this purpose, all nuclear
(d) the needs of fisheries and wildlife and all other recreational uses powered plants exploring and utilizing geothermal energy, whether owned
of natural water; or controlled by private or government entities shall:

BIA | Environmental Law | 35


(a) observe internationally accepted standards of safety; and TITLE V
WASTE MANAGEMENT
(b) provide safety devices to ensure the health and welfare of their
personnel as well as the surrounding community. Section 42. Purpose. The purposes of this Title are:

Chapter VI (a) to set guidelines for waste management with a view to ensuring
Conservation and Utilization of Surface and Ground Waters its effectiveness;

Section 39. Management Policy. In addition to existing laws, the national (b) to encourage, promote and stimulate technological, educational
government through the National Water Resources Council in coordination economic and social efforts to prevent environmental damage and
with other appropriate government agencies, shall prescribe measures for unnecessary loss of valuable resources of the nation through
the conservation and improvement of the quality of Philippine water recovery, recycling and re-use of wastes and waste products; and
resources and provide for the prevention, control and abatement of water
pollution. (c) to provide measures to guide and encourage appropriate
government agencies in establishing sound, efficient,
Chapter VII comprehensive and effective waste management.
Mineral Resources
Chapter I
Section 40. Management Policy. - The national government, through the Enforcement and Guidelines
Department of Natural Resources, shall undertake a system of gainful
exploitation and rational and efficient utilization of mineral resources and Section 43. Waste Management Programs. Preparation and
shall encourage citizen participation in this endeavor. implementation of waste management program shall be required of all
provinces, cities and municipalities. The Department of Local Government
Section 41. Measures for Exploitation and Utilization of Mineral and Community Development shall promulgate guidelines for the
Resources. Measures for the gainful exploitation and rational and efficient formulation and establishment of waste management programs.
utilization of such mineral resources may include, but shall not be limited to
the following: Every waste management program shall include the following:

(a) increasing research and development in mineral resources (a) an orderly system of operation consistent with the needs of the
technology; area concerned;

(b) training of additional technical manpower needed in geology, (b) a provision that the operation will not create pollution of any
geophysics, mining engineering, and related fields; kind or will constitute public nuisance;

(c) regulating the exploitation of identified mineral reserves; (c) a system for a safe and sanitary disposal of waste;

(d) accelerating the exploration of undiscovered mineral deposits; (d) a provision that existing plans affecting the development, use
and and protection of air, water or natural resources shall be
considered;
(e) encouraging the establishment of processing plants for refined
metals.

BIA | Environmental Law | 36


(e) schedules and methods of implementing the development, Section 48. Disposal Sites. The location of solid waste disposal sites shall
construction and operation of the plan together with the estimated conform with existing zoning; land use standards, and pollution control
costs; and regulations.

(f) a provision for the periodic revision of the program to ensure its Section 49. Dumping into the Sea and Other Navigable Waters. The
effective implementation. dumping or disposal of solid wastes into the sea and any body of water in
the Philippines, including shorelines and river banks, where these wastes
Section 44. Responsibility of Local Governments. Each province, city or are likely to be washed into the water is prohibited. However, dumping of
municipality shall provide measures to facilitate the collection, solid wastes or other materials into the sea or any navigable waters shall be
transportation, processing and disposal of waste within its jurisdiction in permitted in case of immediate or imminent danger to life and property,
coordination with other government agencies concerned. For this purpose, subject to the rules and regulations of the Philippine Coast Guard and the
the national government shall provide the necessary subsidy, to local National Pollution Control Commission.
governments upon request made through the National Environmental
Protection Council and subject to such terms and conditions as the latter Government agencies and private entities which are undertaking solid waste
may provide. management programs shall make consultations with the government
agencies concerned with respect to the effects of such dumping to the
Chapter II marine environment and navigation.
Methods of Solid Waste Disposal
Chapter III
Section 45. Solid Waste Disposal. Solid Waste disposal shall be by sanitary Methods of Liquid Waste Disposal
landfill, incineration, composing, and other methods as may be approved by
competent government authority. Section 50. Liquid Waste Disposal. Wastewater from manufacturing plants,
industries, community, or domestic sources shall be treated either
Section 46. Sanitary Landfills. Local governments, including private physically, biologically or chemically prior to disposal in accordance with the
individuals, corporations or organizations may operate one or more sanitary rules and regulations promulgated by proper government authority.
landfills. Any entity proposing to operate a sanitary landfill shall submit to
the appropriate government agency an operational work plan showing, Section 51. Applicability of Sec. 8. The provisions of Sec. 8 hereof shall
among other things, a map of the proposed work location, disposal areas likewise apply to the dumping or disposal of liquid waste into the sea and
for rubbish, garbage, refuse and other waste matter; and the equipment or other bodies of water.
machinery needed to accomplish its operations. In no case shall landfill or
work locations under this Section be located along any shore or coastline, or TITLE VI
along the banks of rivers and streams. lakes throughout their entire length, MISCELLANEOUS PROVISIONS
in violation of any existing rules and regulations.
Section 52. Population-Environment Balance. In the assessment of
Section 47. Incineration and Composting Plants. The installation and development projects, the National Environmental Protection Council,
establishment of incineration or composting plants, or the hereinafter referred to in this Title as the "Council" shall take into
alteration/modification of any part thereof shall be regulated by the local consideration their effect on population with a view to achieving a rational
governments concerned in coordination with the National Pollution Control and orderly balance between man and his environment.
Commission.
Section 53. Environmental Education. The Department of Education and
Culture shall integrate subjects on environmental education in its school
curricula at all levels. It shall also endeavor to conduct special community
BIA | Environmental Law | 37
education emphasizing the relationship of man and nature as well as technologies for the manufacture of pollution control equipment
environmental sanitation and practices. which have been proven effective and commercially reproducible,
from the taxable income of the person or firm actually undertaking
The Council and other government agencies implementing environmental such projects subject to the conditions that may be imposed by the
protection laws in coordination with public information agencies of the Council.
government shall undertake public information activities for the purpose of
stimulating awareness and encouraging involvement in environmental The pollution control equipment, devices, spare parts and accessories
protection. acquired under this Section shall not be sold, transferred or disposed of
within five (5) years from the date of acquisition without the prior approval
Section 54. Environmental Research. The Council shall undertake and/or of the Council otherwise the importer or purchaser shall pay twice the
promote continuing studies and research programs on environmental amount of the tax exemption or tax credit granted.
management and shall, from time to time, determine priority areas of
environmental research. Section 57. Financial Assistance/Grant. Financial assistance/grant for the
study, design and construction of environmental protection facilities
Section 55. Monitoring and Dissemination of Environmental Information of especially for waste disposal in favor of cities, municipalities, small and
Foreign Origin. The Council shall keep itself informed of current medium-scale industries may be granted on a case to case basis subject to
environmental developments by obtaining information and literature from such conditions as may be imposed by the Council.
foreign sources through the Department of Foreign Affairs, government
agencies and other entities, both domestic and foreign. Such information Section 58. Participation of Local Government Units and Private
and literature shall be given the widest dissemination possible. Individuals. It shall be the responsibility of local government units as well as
private individuals to actively participate in the environmental management
Section 56. Incentives. To operate the installation and the utilization of and protection programs of the government.
pollution control facilities, the following incentives are hereby granted:
Section 59. Preservation of Historic and Cultural Resources and
(a) exemption to the extent of fifty (50) per cent of tariff duties and Heritage. It shall be the duty of every person to help preserve the historic
compensating tax for the importation of pollution control and cultural resources of the country such as sites, structures, artifacts,
equipment, devices, spare parts and accessories for a period of five documents, objects, memorials and priceless trees.
(5) years from the effectivity of this Decree subject to the
conditions that will be imposed by the Council. Section 60. Government Offices Performing Environmental Protection
Functions. Government agencies vested by law to exercise environmental
(b) a tax credit equivalent to fifty (50) per cent of the value of the management powers, shall continue to function as such within their
compensating tax and tariff duties that would have been paid on respective jurisdictions. The Council may, however, in the exercise of its
the pollution control equipment, devices, spare parts and powers and functions under Presidential Decree No. 1121, inquire into any
accessories had these items been imported shall, within a period of action or issue of environmental significance.
seven (7) years from the effectivity of this Decree be given to the
person or firm who or which purchases them from a domestic Section 61. Public Hearings. The Council may, whenever it deems
manufacturer, and another tax credit equivalent to twenty-five (25) necessary, conduct public hearings on issues of environmental significance.
per cent thereof shall be given to the said manufacturer subject to
such conditions as may be imposed by the Council; and Section 62. Definition of Terms. As used in this Code:

(c) deductions equivalent to fifty (50) per cent of the expenses (a) "Ambient Air Quality" means the average atmospheric purity as
actually incurred on research projects undertaken to develop distinguished from discharge measurements taken at the source of
BIA | Environmental Law | 38
pollution. It is the general amount of pollution present in a broad (k) "Areas Impacted by Public Facilities" refers to areas where the
area. introduction of public facilities may tend to induce development and
urbanization of more than local significance or impact.
(b) "Emission" means the act of passing into the atmosphere an air
contaminant, pollutant, gas stream and unwanted sound from a (l) "Environmental Impact" is the alteration, to any degree, of
known source. environmental conditions or the creation of a new set of
environmental conditions, adverse or beneficial, to be induced or
(c) "Water Quality" means the characteristics of water which define caused by a proposed project.
its use in terms of physical, chemical and biological contents; hence
the quality of water for domestic use is different from industrial use. (m) "Government Agencies" refers to national, local and regional
agencies and instrumentalities including government-owned and
(d) "Water Quality Surveillance" means a close and continuous controlled corporations.
supervision of the water quality to detect development movements
or changes in the characteristics of the water. TITLE VII
FINAL PROVISIONS
(e) "Water Quality Standard" means a plan that is established by
governmental authority as a program for water pollution prevention Section 63. Separability of Provisions. If any provision of this Code, or the
and abatement. Such a standard may include water use application of such provisions to any person or circumstance, is declared
classification and the criteria to support the uses of the water. unconstitutional, the remainder of the Code or the application of such
provision to other persons or circumstances shall not be affected by such
(f) "Effluent Standards" means restrictions established to limit levels declaration.
of concentration of physical, chemical and biological constituents
which are discharged from point sources. Section 64. Effectivity. This Code shall take effect upon its approval.

(g) "Clean-up Operations" refers to activities conducted in removing


the pollutants discharged or spilled in water to restore it to pre-spill EXECUTIVE ORDER NO. 192 June 10, 1987
condition.
PROVIDING FOR THE REORGANIZATION OF THE DEPARTMENT OF
(h) "Accidental Spills" refers to spills of oil or other hazardous ENVIRONMENT, ENERGY AND NATURAL RESOURCES; RENAMING
substances in water that result from accidents involving the carriers IT AS THE DEPARTMENT OF ENVIRONMENT AND NATURAL
of such substance such as collisions and grounding. RESOURCES AND FOR OTHER PURPOSES

(i) "Areas of Critical Environmental Concern" are areas where WHEREAS, Executive Order No. 131, dated January 30, 1987, was
uncontrolled development could result in irreparable damage to suspended;
important historic, cultural, or aesthetic values or natural systems or
processes of national significance. WHEREAS, a policy having been reached on energy, the reorganization of
the Department of Natural Resources can now be effected;
(j) "Hazardous Substances" means elements or compounds which
when discharged in any quantity present imminent or substantial WHEREAS, the environment will be effected by the use, development,
danger to public health and welfare. management, renewal and conservation of the country's natural resources;

BIA | Environmental Law | 39


WHEREAS, there is a need to protect and enhance the quality of the NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
country's environment; by virtue of the powers vested in me by the Constitution, do hereby order
and decree the revision of Republic Act No. 3931, to be known as the
WHEREAS, to attain this objective, environmental concerns and natural "National Pollution Control Decree of 1976," to read as follows:
resources concern should be given equal attention by the Department;
Section 1. Statement of Policy. It is hereby declared a national policy to
WHEREAS, under Article XVIII, Section 6, of the 1987 Constitution, the prevent, abate and control pollution of water, air and land for the more
President shall continue to exercise legislative powers until the First effective utilization of the resources of this country.
Congress is convened;
Section 2. Definitions. As used in this Decree:
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby order: (a) "Pollution" means any alteration of the physical, chemical and
biological properties of any water, air and/or land resources of the
(Section 1 to 32) Philippines, or any discharge thereto of any liquid, gaseous or solid
wastes as will or is likely to create or to render such water, air and
Sec. 3. Effectivity. This Executive Order shall take effect immediately. land resources harmful, detrimental or injurious to public health,
safety or welfare or which will adversely affect their utililization for
domestic, commercial, industrial, agricultural, recreational or other
APPROVED in the City of Manila, Philippines, this 10th day of June, in the
legitimate purposes.
year of Our Lord, nineteen hundred and eighty-seven.

(b) "Sewage" means the water-carried human or animal wastes


from residences, buildings, industrial establishments, or other
PRESIDENTIAL DECREE No. 984 August 18, 1976
places, together with such water infiltration and surface water as
may be present. The admixture or sewage and industrial wastes or
PROVIDING FOR THE REVISION OF REPUBLIC ACT NO. 3931, other wastes as hereafter defined shall also be considered
COMMONLY KNOWN AS THE POLLUTION CONTROL LAW, AND FOR "sewage."
OTHER PURPOSES
(c) "Industrial Waste" means any liquid, gaseous or solid matter, or
other waste substance or a combination thereof resulting from any
WHEREAS, there is a need to modify the organizational structure of the process of industry, manufacturing trade or business or from the
NATIONAL POLLUTION CONTROL COMMISSION to make it more effective development, processing or recovery or any natural resources which
and efficient in the discharge of its functions and responsive to the demands may cause or tend to cause pollution, or contribute to the pollution
of the times occasioned by the accelerative phase of the country's of the water, air and land resources of the Philippines.
industrialization program;
(d) "Other Waste" means garbage, refuse, wood residues, sand,
WHEREAS, there is an imperative need to strengthen this Commission to lime cinders, ashes, offal, night-oil, tar, dye stuffs, acids, chemicals,
best protect the people from the growing menace of environmental and other substances not sewage or industrial waste which may
pollution; and cause or tend to cause pollution; or contribute to the pollution of
the water, air and land resources of the Philippines.
WHEREAS, it is urgently necessary to maintain the role of the Commission
as the primary agency responsible for the prevention and control of (e) "Sewage System or Sewerage System" means pipe lines or
environmental pollution; conduits, pumping stations, force mains, constructed drainage

BIA | Environmental Law | 40


ditches, and all other constructions, devices, and appurtenances Section 4. Inter-Agency Advisory Council. There is created an Inter-Agency
used for collecting or conducting sewage, and industrial wastes or Advisory Council, attached to the Commission, which shall be composed of
other wastes to a point of treatment, discharge or ultimate disposal. representatives designated by the Secretaries of the Department of
Agriculture, Health, Industry, Justice, Labor, Local Government and
(f) "Treatment Works" means any method, construction device or Community Development, National Defense, Natural Resources, and Public
appliance appurtenant thereto, installed for the purpose of treating, Works, Transportation and Communications; the heads of the Laguna Lake
neutralizing, stabilizing, disinfecting, or disposing of sewage, Development Authority, National Economic and Development Authority, the
industrial waste or other wastes, or for the recovery of by-product National Science Development Board and the Human Settlements
from such sewage, industrial waste or other wastes. Commission. The Commissioner shall head the Inter-Agency Advisory
Council. Representatives from the private sector as may be affected, may be
(g) "Sewage Works" means individually or collectively those invited to the deliberations of the Council.
constructions or devices use for collecting, pumping, treating, and
disposing of sewage, industrial wastes or other waste, or for the Section 5. Organization of the Commission. The Commission shall have a
recovery of by-products from such sewage, industrial waste or other Water Pollution Control Division, an Air Pollution Control Division, a
waste. Research and Development Division, a Legal Division, an Administrative
Division and such other divisions or units as may be approved in the General
(h) "Outlet" means the terminus of a sewage works or point of Appropriation Act. Nothing herein contained shall be construed as to
emergence in the water, air and land resources of the Philippines of automatically terminate or abolish any existing position in the Commission
any sewage, industrial wastes or other wastes. nor shall it be construed as a prohibition against termination of any position.

(i) "Commission" means the National Pollution Control Commission. The Commission shall also establish such regional offices as may be
necessary.
(j) "Person" or "Persons" includes any being, natural or juridical,
susceptible of rights and obligations or of being the subject of legal The Commission shall provide such technical, scientific and other services,
relations. including the necessary laboratory and other facilities as may be required to
carry out the provisions of this Decree: Provided, That the Commission may
secure such services as it may deem necessary from other agencies of the
Section 3. Creation of the National Pollution Control Commission;
National Government, and may make arrangements for the compensation of
Members. There is hereby created and established a National Pollution
such services. The Commission may also employ and compensate, within
Control Commission under the Office of the President. The Commission shall
appropriations available therefor, such consultants, experts, advisors, or
be headed by one full-time commissioner and assisted by two full-time
assistants on a full or part-time basis as may be necessary, coming from
deputy commissioners, one of whom shall be responsible for standard-
government or private business entities, associations, or from local or
setting and monitoring and the other for enforcement.
foreign organizations, to carry out the provisions of this decree any may
prescribe their powers, duties and responsibilities.
The Commissioner shall be a man of proven executive ability. The Deputy
Commissioner for Standard-Setting and Monitoring shall preferably be a
The Commission may conduct scientific experiments, investigations and
sanitary engineer, while the Deputy Commissioner for Enforcement shall
research to discover economical and practical methods of preventing water,
preferably be a lawyer. The Commissioner and the Deputy Commissioners
air and land pollution. To this end, the Commission may cooperate with any
must have technical expertise in the field of pollution control.
public or private agency in the conduct of such experiments, investigations
and research, and may accept sums of money, for and in behalf of the
The Commissioner and the Deputy Commissioners shall be appointed by the National Government, given by any international, national or other public or
President of the Philippines. private agency for water, air and land pollution control activities, surveys or
programs.
BIA | Environmental Law | 41
Section 6. Powers and Functions. The Commission shall have the following installation or operation of sewage works and industrial disposal
powers and functions: system or parts thereof: Provided, however, That the Commission,
by rules and regulations, may require subdivisions, condominium,
(a) Determine the location, magnitude, extent, severity, causes, hospitals, public buildings and other similar human settlements to
effects and other pertinent information regarding pollution of the put up appropriate central sewerage system and sewage treatment
water, air and land resources of the country; take such measures, works, except that no permits shall be required of any new sewage
using available methods and technologies, as it shall deem best to works or changes to or extensions of existing works that discharge
prevent or abate such pollution; and conduct continuing researches only domestic or sanitary wastes from a single residential building
and studies on the effective means for the control and abatement of provided with septic tanks or their equivalent. The Commission may
pollution. impose reasonable fees and charges for the issuance or renewal of
all permits herein required.
(b) Develop comprehensive multi-year and annual plans for the
abatement of existing pollution and the prevention of new or (h) After due notice and hearing, the Commission may also revoke,
imminent pollution, the implementation of which shall be consistent suspend or modify any permit issued under this decree whenever
with the national development plan of the country. Such plans shall the same is necessary to prevent or abate pollution.
indicate priorities and programs during the year.
(i) Set up effluent, stream, ambient and emission standards and
(c) Issue standards, rules and regulations to govern the approval of promulgate rules and regulations therefor: Provided, That local
plans and specifications for sewage works and industrial waste governments, development authorities, and other similar
disposal systems and the issuance of permits in accordance with the government instrumentalities or agencies may set up higher
provisions of this Decree; inspect the construction and maintenance standards subject to the written approval of the Commission.
of sewage works and industrial waste disposal system for
compliance to plans. (j) Serve as arbitrator for the determination of reparations, or
restitution of the damages and losses resulting from pollution.
(d) Adopt, prescribe, and promulgate rules and regulations
governing the procedures of the Commission with respect to (k) Deputize in writing or request assistance of appropriate
hearings, plans, specifications, designs, and other data for sewage government agencies or instrumentalities for the purpose of
works and industrial waste disposal system, the filing of reports, the enforcing this Decree and its implementing rules and regulations
issuance of permits, and other rules and regulations for the proper and the orders and decisions of the Commission.
implementation and enforcement of this Decree.
(l) Consult, participate, cooperate and enter into agreement with
(e) Issue orders or decisions to compel compliance with the other agencies of the government, and with affected political
provisions of this Decree and its implementing rules and regulations groups, political subdivisions, and enterprises in the furtherance of
only after proper notice and hearing. the purpose of this Decree.

(f) Make, alter or modify orders requiring the discontinuance of (m) Collect and disseminate information relating to water, air, and
pollution specifying the conditions and the time within which such land pollution and the prevention, abatement and control thereof.
discontinuance must be accomplished.
(n) Authorize its representative to enter at all reasonable times any
(g) Issue, renew, or deny permits, under such conditions as it may property of the public dominion and private property devoted to
determine to be reasonable, for the prevention and abatement of industrial, manufacturing, processing or commercial use without
pollution, for the discharge of sewage, industrial waste, or for the

BIA | Environmental Law | 42


doing damage, for the purpose of inspecting and investigating duly designated Hearing Officer or, being present at a hearing,
conditions relating to pollution or possible or imminent pollution. session or investigation, refuses to be sworn as a witness or to
answer questions when lawfully required to do so. The Sheriff or
(o) Prepare and submit sixty days after the close of each calendar other police agencies of the place where the hearing or
year an annual report to the President and such periodic reports of investigation is conducted, shall, upon request of the Hearing
activities as may be required from time to time. The annual report Officer, assist in the enforcement of the provisions of this
shall include the extent to which the objectives in the plans referred paragraph.
to under Sec. 6 (b) have been achieved.
(b) Appeal to Courts. Any decision of the Commission, in the
(p) Exercise such powers and perform such other functions as may absence of an appeal therefrom as herein provided, shall become
be necessary to carry out its duties and responsibilities under this final fifteen days after the date of notification, and judicial review
Decree. thereof shall be permitted only after any party claiming to be
aggrieved thereby has exhausted the remedies before the
Section 7. (a) Public Hearing. Public hearings shall be conducted by the Commission. The Commission shall be deemed to be a party to any
Commissioner, Deputy Commissioners or any senior official duly designated judicial action involving any decision.
by the Commissioner prior to issuance or promulgation of any order or
decision by the Commissioner requiring the discontinuance of discharge of (c) Court Review. The decision of the Commission upon any
sewage, industrial wastes or other wastes into the water, air or land disputed matter may be reviewed both upon the law and the facts
resources of the Philippines as provided in this Decree: Provided, That of the case by the Court of Appeals. For purposes of such review,
whenever the Commission find a prima facie evidence that the discharged the procedure concerning appeals from the Court of First Instance
sewage or wastes are of immediate threat to life, public health, safety or shall be followed. Appeal from a decision of the Commission must
welfare, or to animal or plant life, or exceeds the allowable standards set by be perfected within fifteen days from notification of such decision:
the Commission, the Commissioner may issue an ex-parte order directing Provided, however, That any decision of the Commission involving
the discontinuance of the same or the temporary suspension or cessation of only questions of law, shall be appealed to the Supreme Court. No
operation of the establishment or person generating such sewage or wastes appeal shall stay the execution of any order or decision of the
without the necessity of a prior public hearing. The said ex-parte order shall Commission unless the Commissioner himself or the Court of
be immediately executory and shall remain in force until said establishment Appeals or the Supreme Court so orders.
or person prevents or abates the said pollution within the allowable
standards, or modified or nullified by a competent court. (d) Execution of Decision. Any decision or order of the Commission,
after the same has become final and executory, shall be enforced
All records of the proceedings of said hearings shall be filed with the and executed in the same manner as decisions of Courts of First
Commission. All inquiries, hearings, investigations and proceedings Instance, and the Commission shall have the power to issue to the
conducted by the Commission shall be governed by rules adopted City or Provincial Sheriff or duly constituted authorities whom it may
by the Commission, and in the conduct thereof the Commission appoint, such writs of execution as may be necessary for the
shall not be bound by technical rules of evidence: Provided, That enforcement of such decision or order and any person who shall fail
the Commissioners or any of the duly designated Hearing Officers or refuse to comply with such decision, order, or writ, after being
may summarily punish for contempt, by a fine not exceeding two required to do so shall, upon application by the Commission, be
hundred pesos, any person committing such misconduct in the punished by the proper court for contempt.
presence of any of the Commissioners or any of the duly designated
Hearing Officers, or so near to them as to seriously interrupt any Section 8. Prohibitions. No person shall throw, run, drain, or otherwise
hearing or session or any proceeding, or any person willfully fails or dispose into any of the water, air and/or land resources of the Philippines,
refuses, without just cause, to comply with a summon, subpoena, or cause, permit, suffer to be thrown, run, drain, allow to seep or otherwise
or subpoena duces tecum issued by the Commissioners or by the
BIA | Environmental Law | 43
dispose thereto any organic or inorganic matter or any substance in gaseous Payment of fines may also be enforced by appropriate
or liquid form that shall cause pollution thereof. action in a court of competent jurisdiction. The remedies
provided in this sub-section shall not be a bar to nor shall
No person shall perform any of the following activities without first securing affect any other remedies provided for in this Decree but
a permit from the Commission for the discharge of all industrial wastes and shall be cumulative and additional to such remedies.
other wastes which could cause pollution:
(b) Any person who shall violate any of the provisions of Section
1. the construction, installation, modification or operation of any Eight of this Decree or its implementing rules and regulations, or
sewage works or any extension or addition thereto; any Order or Decision of the Commission, shall be liable to a
penalty of not to exceed one thousand pesos for each day during
2. the increase in volume or strength of any wastes in excess of the which the violation continues, or by imprisonment of from two years
permissive discharge specified under any existing permit; to six years, or by both fine and imprisonment, and in addition such
person may be required or enjoined from continuing such violation
as hereinafter provided.
3. the construction, installation or operation of any industrial or
commercial establishments or any extension or modification thereof
or addition thereto, the operation of which would cause an increase (c) Any person who shall refuse, obstruct, or hamper the entry of
in the discharge of waste directly into the water, air and/or land the duly authorized representatives of the Commission into any
resources of the Philippines or would otherwise alter their physical, property of the pubic domain or private property devoted to
chemical or biological properties in any manner not already lawfully industrial manufacturing, processing or commercial use during
authorized. reasonable hours for the purpose of inspecting or investigating the
conditions therein relating to pollution or possible or imminent
pollution, shall be liable to a fine not exceeding two hundred pesos
Section 9. Penalties. (a) Any person found violating or failing to comply
or imprisonment of not exceeding one month, or both.
with any order, decision or regulation of the Commission for the control or
abatement of pollution shall pay a fine not exceeding five thousand pesos
per day for every day during which such violation or default continues; and (d) Any person who violates any of the provisions of, or fails to
the Commission is hereby authorized and empowered to impose the fine perform any duty imposed by this Decree or its implementing rules
after due notice and hearing. and regulations or by Order or Decision of the Commission
promulgated pursuant to this Decree hereby causing the death of
fish or other aquatic life, shall in addition to the penalty above
The fines so imposed shall be paid to the Government of
prescribed, be liable to pay the government for damages for fish or
the Philippines through the Commission, and failure to pay
aquatic life destroyed.
the fine in any case within the time specified in the above-
mentioned Order or Decision shall be sufficient ground for
the Commission to order the closure or the stoppage in the (e) In case the violator is a juridical person, the penalty shall be
operation of the establishment being operated and/or imposed on the managing head responsible for the violation.
managed by said person or persons until payment of the
fines shall have been made. The Commission shall have the Section 10. Jurisdiction. The Commission shall have no jurisdiction over
power and authority to issue corresponding writs of waterworks or sewage system operated by the Metropolitan Waterworks
execution directing the City or Provincial Sheriff or other Sewerage System, but the rules and regulations issued by the Commission
peace officers whom it may appoint to enforce the fine or for the protection and prevention of pollution under the authority herein
the order of closure or stoppage of operations. granted shall supersede and prevail over any rules or regulations as may
heretofore have been issued by other government agencies or
instrumentalities on the same subject.

BIA | Environmental Law | 44


In case of development projects involving specific human settlement sites or Petitioner and Isaac Arivas, President and General Manager, respectively, of
integrated regional or sub- regional projects, such as the Tondo Foreshore the Insular Oil Refinery Co., were charged by the Provincial Fiscal of Rizal
Development Authority and the Laguna Lake Development Authority, the before respondent court with violation of Republic Act No. 3931 prohibiting
Commission shall consult with the authorities charged with the planning and the pollution of waterway due to the discharge of industrial and waste
execution of such projects to ensure that their pollution control standards matters from the operation of said refinery. Petitioner filed a motion to
comply with those of the Commission. Once minimum pollution standards quash the information on the ground that the trial court has no jurisdiction
are established and agreed upon, the development authorities concerned and that the Provincial Fiscal has no legal personality to file said information
may, by mutual agreement and prior consultation with the Commission, but said motion was denied. Petitioner's motion for reconsideration having
undertake the pollution control activities themselves. been denied, he filed the instant petition with the Supreme Court seeking to
annul the orders of the respondent judge.
Section 11. Appropriations. Such amount as may be necessary to carry out The Supreme Court held that the filing of the information in question by the
the provisions of this Decree, which in no case shall be less than five million Provincial Fiscal is premature and unauthorized, there being no prior finding
pesos, is hereby appropriated yearly for the operating expenses of the or determination by the National Water and Air Pollution Control
Commission out of any funds in the National Treasury. Commission that the act of the petitioner had caused pollution of the
waterway and, therefore, the respondent judge is without jurisdiction to
Section 12. Repealing Clause. Any provision of laws, presidential decree, take cognizance of the offense
executive order, rules and regulations and/or parts thereof inconsistent with Questioned orders annulled and set aside.
the provisions of this Decree, are hereby repealed and/or modified
accordingly. SYLLABUS
1. REMEDIAL LAW; CRIMINAL PROCEDURE; MOTION TO QUASH;
DENIAL; RECOURSE TO EXTRAORDINARY LEGAL REMEDIES CONSIDERED
Section 13. Effectivity. This Decree shall take effect immediately.
PROPER IN CERTAIN SITUATIONS; CASE AT BAR. — While there is no
disputing the validity and wisdom of the rule that when a motion to quash
Done in the City of Manila, this 18th day of August, in the year of Our Lord, filed by an accused in a criminal case shall be denied, the remedy of the
nineteen hundred and seventy-six. accused movant is not to file a petition for certiorari or mandamus or
prohibition, it is also recognized that, under certain situations, recourse to
the said extraordinary legal remedies to question the denial of a motion to
G.R. No. L-41958 July 20, 1982 quash is considered proper in the interest of "more enlightened and
DONALD MEAD vs. MANUEL A. ARGEL substantial justice," as was so declared in "Yap vs. Lutero" G.R. No. L-
12669, April 30, 1959, 105 Phil. 3007, where the motion to quash filed by
FIRST DIVISION the accused was on the ground of double jeopardy and in "Pineda and
[G.R. No. L-41958. July 20, 1982.] Ampil Manufacturing Co. vs. Bartolome et al." 95 Phil. 930938 where the
ground invoked was duplicity of offenses charged in the information. In the
DONALD MEAD, petitioner, vs. HON. MANUEL A. ARGEL in his capacity as case at bar, as the petitioner assails the very jurisdiction of the court
Presiding Judge in the Court of First Instance of Rizal, Branch XXXV and the wherein the criminal case was filed, there is a more compelling reason that
PEOPLE OF THE PHILIPPINES, respondents. such issue be resolved soonest, in order to avoid the court's spending
precious time and energy unnecessarily in trying and deciding the case, and
Ozaeta, Romulo, De Leon & Reyes & Associates for petitioner. to spare the accused from the inconvenience, anxiety and embarrassment,
Solicitor General Estelito P. Mendoza, Acting Solicitor General Hugo let alone the expenditure of effort and money, in undergoing trial for a case
Gutierrez, Jr., Asst. Solicitor General Octavio R. Ramirez and Solicitor the proceedings in which could possibly be annulled for want of jurisdiction.
Mariano M. Martinez for respondents. 2. ID.; CIVIL PROCEDURES; MOTION TO DISMISS ON GROUND OF
LACK OF JURISDICTION; DUTY OF THE COURT TO RESOLVE THE SAME AS
SYNOPSIS SOON AS POSSIBLE. — Even in civil actions, when the court's jurisdiction is

BIA | Environmental Law | 45


attacked in a motion to dismiss, it is the duty of the court to resolve the be initiated, except those related to nuisance, until the Commission shall
same as soon as possible in order to avoid unwholesome consequences. have finally ruled on the alleged act of pollution; and also from Section 6(a),
3. STATUTORY CONSTRUCTION; REPUBLIC ACT NO. 3931; No. 5, which authorizes the Commission to "initiate or cause to be instituted
LEGISLATIVE INTENT DETERMINED FROM THE CONTEXT OF THE in a court of competent jurisdiction legal proceedings to compel compliance
STATUTE; NATIONAL WATER AND AIR POLLUTION COMMISSION, CLEARLY with the provisions of this Act."
VESTED WITH EXCLUSIVE AUTHORITY TO PROSECUTE VIOLATION 7. ID.; ID.; ID.; ID.; VESTING OF AUTHORITY DEDUCED FROM THE
THEREOF. — The clear legislative intention in Republic Act No. 3931 is to SPECIALIZED KNOWLEDGE REQUIRED OF THE COMMISSION AS PROVIDED
vest the Commission the exclusive authority to determine the existence of FOR IN THE LAW. — As may be seen from the law, the determination of the
"pollution" penalized thereunder and to prosecute violations of said law. The existence of pollution requires investigation, public hearings and the
last paragraph of Sec. 8 of said law delineates the authority to be exercised collection of various information relating to water and atmospheric pollution.
by the Commission and by the ordinary courts in respect of preventing or (Sections 6,7, and 8.) The definition of the term "pollution" in itself
remedying the pollution of the waters or atmospheric air of the Philippines. connotes that the determination of its existence requires specialized
4. ID.; ID.; ID.; ID.; FILING OF COURT ACTION BEFORE knowledge of technical and scientific matters which are not ordinarily within
DETERMINATION BY THE COMMISSION OF VIOLATION THEREOF; the competence of Fiscals or of those sitting in a court of justice. It is
PREMATURE; CASE AT BAR. — Under Section 8 of Republic Act No. 3931, it undoubtedly in recognition of this fact that in Section 4 of the law, it is
is expressly directed that on matters not related to nuisance "no court provided that "the basic personnel necessary to carry out the provisions of
action shall be initiated until the Commission shall have finally ruled this Act shall be engineers, chemists, bio-chemists, physicists, and other
thereon." This provision leaves little room for doubt that a court action technicians"; and required in Section 3 that the Chairman of the Commission
involving the determination of the existence of pollution may not be initiated shall be the Chairman of the National Science Development Board, one of
until and unless the Commission has so determined the existence of what in the part-time commissioners shall be a recommendee of the Philippine
the law is considered pollution. Hence; in the case at bar, the Provincial Council of Science and Technology, and one of the full time commissioner
Fiscal of Rizal lacked the authority to file the information charging the shall be a sanitary engineer.
Petitioner with a violation of the provision of Republic Act No. 3931 there 8. ID.; ID.; ID.; ID.; VESTING OF AUTHORITY IN AN
being no prior finding or determination by the Commission that the act of ADMINISTRATIVE BODY TO DETERMINE WHEN TO INSTITUTE A CRIMINAL
the petitioner had caused pollution in any water or atmospheric air of the ACTION, NOT NEW IN THIS JURISDICTION. — The vesting of authority in
Philippines. The filing of the information for the violation of Section 9 of the an administrative body to determine when to institute a criminal action for a
law is, therefore, premature and unauthorized. Concommittantly, the violation of the law entrusted to it for administration or enforcement to the
respondent Judge is without jurisdiction to take cognizance of the offense exclusion of the regular prosecution service of the government, is not new
charge therein. in this jurisdiction. It is recognized in Yao Lit vs. Geraldez, et al., 106 Phil.
5. ID.; ID.; ID.; ID.; NO BASIS FOR ALLEGED DISTINCTION IN THE 545 which upheld the exclusive authority of the Commissioner of
NATURE OF CASES FILED, EVEN UPON CONSIDERATION OF THE PURPOSE Immigration to investigate and impose administrative fines upon violators of
OF THE LAW. — It may not be argued that the above-cited provision refers the provisions of Republic Act No. 751 for the reason that said official "has
only to the filing of civil actions, and not to criminal cases as is the one better facilities than the prosecuting officials to carry out the provisions of
herein involved, there being no basis either in the context in law nor from a the said Act, the former official being the keeper of the records pertaining to
consideration of the purpose behind the enactment of the same upon which aliens." The same principle has been recognized with respect to the
such a distinction may be made. prosecutions of violations of the Anti-Dummy Law (Republic Act No. 1131)
6. ID.; ID.; ID,; ID.; ABSENCE OF EXPLICIT DECLARATION and R. B. Industrial Development Co., Ltd. vs. Enage (24 SCRA 365)
IMMATERIAL WHEN LEGISLATIVE INTENT IS CLEAR FROM THE involving the authority of the Bureau of Forestry over the management and
PROVISIONS AND THE PHILOSOPHY OF THE LAW. — The absence of an use of public forests and the transfer of licenses for the taking of forest
explicit declaration as to the exclusive authority of the Commission to products.
prosecute violations of the subject law does not detract from the clear
intention to make it so, as gathered from the philosophy of the law itself DECISION
and as gleaned from several provisions of the same. It is clearly deductible
from the provision of Section 8 expressly declaring that no court action shall VASQUEZ, J p:
BIA | Environmental Law | 46
The issue posed for determination in this case is whether or not a Provincial "Commission") as created under Republic Act No. 3931 has the exclusive
Fiscal has the authority to file an information for a violation of Republic Act authority to determine the existence of "pollution" before a criminal case
No. 3931, entitled "An Act Creating a National Water and Air Pollution can be filed for a violation of the said law; and that it has the exclusive
Control Commission." authority to prosecute violations of the same. Petitioner further avers that
On March 11, 1975, petitioner Donald Mead and a certain Isaac Arivas were the Commission not having finally ruled that the petitioner has violated
charged by the Provincial Fiscal of Rizal with a violation of Section 9, in Republic Act No. 3931, the Provincial Fiscal of Rizal lacks the authority to
relation to Section 10 of Republic Act No. 3931, under an information prosecute the petitioner for a violation of said law.
reading as follows:
"That on or about the 23rd day of August, 1972, and for some time prior The respondents, on the other hand, maintain that while Republic Act No.
and subsequent thereto, in the municipality of Malabon, province of Rizal, 3931 grants the power and duty to the Commission to investigate and
Philippines and within the jurisdiction of this Honorable Court, the above- prosecute violations of Republic Act No. 3931, such grant of power and
named accused, being then the president and the general manager, authority is not exclusive, and does not deprive fiscals and other public
respectively, of the Insular Oil Refinery Co. (INSOIL), a corporation duly prosecutors of their authority to investigate and prosecute violations of the
organized in accordance with existing laws, conspiring and confederating said law committed within their respective jurisdictions.
together and mutually helping and aiding one another, did then and there
willfully, unlawfully and feloniously drain or otherwise dispose into the Before discussing the main issue on its merits, We deem it necessary to
highway canal and/or cause, permit, suffer to be drained or allow to seep resolve a procedural question raised by the respondents in support of their
into such waterway the industrial and other waste matters discharged due prayer that the instant petition should not be entertained. Respondents
to the operation of the said Insular Oil Refinery Co. so managed and advert to the rule that when a motion to quash filed by an accused in a
operated by them, thereby causing pollution of such waterway with the criminal case shall be denied, the remedy of the accused-movant is not to
resulting damage and/or destruction to the living plants in the vicinity and file a petition for certiorari or mandamus or prohibition, the proper recourse
providing hazard to health and property in the same vicinity." being to go to trial, without prejudice to his right to reiterate the grounds
The case was docketed as Criminal Case No. C-5984-75 and it was invoked in his motion to quash if an adverse judgment is rendered against
subsequently assigned to Branch XXXV of the Court of First Instance of Rizal him, in the appeal that he may take therefrom in the manner authorized by
(Caloocan City) presided over by the respondent Judge. law. (Mill vs. People, et al. 101 Phil. 599; Echarol vs. Purisima, et al., 13
SCRA 309.)
On August 11, 1975, petitioner Donald Mead, one of the accused in the
criminal; case, filed a motion to quash on the grounds that the trial court There is no disputing the validity and wisdom of the rule invoked by the
has no jurisdiction and that the Provincial Fiscal of Rizal has no legal respondents. However, it is also recognized that, under certain situations,
personality to file the above-quoted information. The motion to quash was recourse to the extraordinary legal remedies of certiorari, prohibition or
denied by the respondent Judge in an Order dated September 5, 1975. A mandamus to question the denial of a motion to quash is considered proper
Motion For Reconsideration filed by the petitioner was also denied by the in the interest of "more enlightened and substantial justice", as was so
respondent Judge in his Order of November 10, 1965. Hence, this petition declared in "Yap vs. Lutero", G.R. No. L-12669, April 30, 1969, 105 Phil.
for certiorari with preliminary injunction to annul the said orders of the 3007:
respondent Judge who allegedly acted in excess of or without jurisdiction in "However, were we to require adherence to this pretense, the case at bar
issuing the same. would have to be dismissed and petitioner required to go through the
inconvenience, not to say the mental agony and torture, of submitting
In Our Resolution dated November 28, 1975, the respondents were required himself to trial on the merits in Case No. 16443, apart from the expenses
to comment on the petition and a temporary restraining order was issued to incidental thereto, despite the fact that his trial and conviction therein would
enjoin the respondent Judge from enforcing his questioned orders until violate one of this constitutional rights, and that, an appeal to this Court, we
otherwise directed by this Court. Cdrep would, therefore, have to set aside the judgment of conviction of the lower
court. This would, obviously, be most unfair and unjust. Under the
It is the principal contention of the petitioner that the National Water and circumstances obtaining in the present case, the flaw in the procedure
Air Pollution Control Commission (hereinafter referred to as the
BIA | Environmental Law | 47
followed by petitioner herein may be overlooked, in the interest of a more The motion to quash filed by the accused in Yap vs. Lutero was on the
enlightened and substantial justice." ground of double jeopardy. In Pineda vs. Bartolome, the ground invoked
was duplicity of offenses charged in the information. In the case at bar, the
To the same effect is the pronouncement in "Pineda and Ampil petitioner assails the very jurisdiction of the court wherein the criminal case
Manufacturing Co., vs. Bartolome, et al." 95 Phil., 930-938, expressed as was filed. Certainly, there is a more compelling reason that such issue be
follows: resolved soonest, in order to avoid the court's spending precious time and
energy unnecessarily in trying and deciding the case, and to spare the
"While a denial of a motion to dismiss for lack of jurisdiction was held not to accused from the inconvenience, anxiety and embarrassment, let alone the
be a proper basis for a petition for certiorari [Nico vs. Blanco, 46 Off Gaz., expenditure of effort and money, in undergoing trial for a case the
Supp. (1) 88; 81 Phil., 213], or an appeal not certiorari is the proper remedy proceedings in which could possibly be annulled for want of jurisdiction.
for correcting an error which a lower court may commit in denying a motion Even in civil actions, We have counselled that when the court's jurisdiction is
to set aside a judgment, or in setting aside an order of dismissal, [Rios vs. attacked in a motion to dismiss, it is the duty of the court to resolve the
Ros, et al., 45 Off. Gaz. (No. 3), 1265; 79 Phil. 243; Santos vs. Pecson, 45 same as soon as possible in order to avoid the unwholesome consequences
Off. Gaz. (No. 3), 1278; 79 Phil. 754] however, in some instances, the mentioned above. Cdll
Supreme Court has departed from the general rule and has entertained the
writ notwithstanding the existence of an appeal. Thus, in one case the "It is also advanced that the present petition is premature, since respondent
Supreme Court took cognizance of a petition for certiorari notwithstanding court has not definitely ruled on the motion to dismiss, nor held that it has
the fact that the accused could have appealed in due time when it found jurisdiction, but only argument is untenable. The motion to dismiss was
that the action was necessary to promote public welfare and public policy predicated on the respondent court's lack of jurisdiction to entertain the
(People vs. Zulueta, 89 Phil. 880). In another case, a petition for certiorari action, and the rulings of this Court are that writs of certiorari or prohibition,
to annul an order of the trial judge admitting an amended information was or both, may issue in case of a denial or deferment of action on such a
entertained although the accused had an adequate remedy by appeal motion to dismiss for lack of jurisdiction.
'inasmuch as the Surplus Property cases have attracted nationwide
attention, making it essential to proceed with dispatch in the consideration 'If the question of jurisdiction were not the main ground for this petition for
thereof.' (People vs. Zulueta, supra. Citing Arevalo vs. Nepomuceno, 63 review by certiorari, it would be premature because it seeks to have a
Phil., 627.) And still in another case, the writ was entertained where the review of an interlocutory order. But as it would be useless and futile to go
appeal was found not to be adequate remedy, as where the order which is ahead with the proceedings if the court below had no jurisdiction this
sought to be reviewed is merely of interlocutory or peremptory character, petition was given due course.'(San Beda vs. CIR, 51 O.G. 5636, 5638).
and the appeal therefrom can be interposed only after final judgment and 'While it is true that action on a motion to dismiss may be deferred until the
may therefore be of no avail. (Rocha vs. Crossfield, 6 Phil., 355; Leung Ben trial and an order to that effect is interlocutory, still where it clearly appears
vs. O'Brien, 38 Phil., 182. See also Mendoza vs. Paruñgao, 49 Phil., 271; that the trial judge or court is proceeding in excess or outside of its
Dais vs. Court of First Instance, 51 Phil., 36). LibLex jurisdiction, the remedy of prohibition would lie since it would be useless
and a waste of time to go ahead with the proceedings. (Philippine
For analogous reasons it may be said that the petition for certiorari International Fair, Inc., et al. vs. Ibañez, et al., 50 Off. Gaz. 1036; Enrique
interposed by the accused against the order of the court a quo denying the vs. Macadaeg et al., 47 Off. Gaz. 1207; see also San Beda College vs. CIR,
motion to quash may be entertained, not only because it was rendered in a 51 Off. Gaz. 5636.) (University of Sto. Tomas vs. Villanueva, L-13748, 30
criminal case, but because it was rendered, as claimed, with grave abuse of October 1959.)' " (Time, Inc. vs. Reyes, 39 SCRA, pp. 315-316.)
discretion, as found by the Court of Appeals. It would be indeed unfair and
unjust, if not derogatory of their constitutional right, to force the accused to An additional factor that induced Us to entertain the instant petition is the
go to trial under an information which, in their opinion, as was found, obvious merit We find in the same. Our reading of the provisions of
accuses them of multiple offenses in contravention of law. And so, in our Republic Act No. 3931 has convinced Us that the clear legislative intention is
opinion, the respondent court did not err in entertaining the petition for to vest in the Commission the exclusive authority to determine the existence
certiorari instead of dismissing it, as claimed. of "pollution" penalized thereunder and to prosecute violations of said law.

BIA | Environmental Law | 48


The information filed against the herein petitioner charges him with a provisions of this Act" (Ibid., No. 5); and, "after due notice and hearing,
violation of Section 9, in relation to Section 10 of Republic Act No. 3931. revoke, suspend or modify any permit issued under this Act whenever
More specifically, it alleges that the petitioner, with his co-accused Isaac modifications are necessary to prevent or abate pollution of any water
Arivas, "willfully, unlawfully and feloniously drain or otherwise dispose into and/or atmospheric air of the Philippines." (Ibid., No. 7.) Section 8 contains
the highway canal and/or cause, permit, suffer to be drained or allow to explicit provisions as to the authority of the Commission to determine the
seep into such waterway the industrial and other waste matters discharged existence of pollution and to take appropriate court actions to abate or
due to the operation of the said Insular Oil Refinery Co. so managed and prevent the same. It provides:
operated by them, thereby causing pollution of such waterway with the "SEC. 8.Proceedings before the Commission. — The Commission may, on its
resulting damage and/or destruction to the living plants in the vicinity and own motion, or upon the request of any person, investigate or may inquire,
providing hazard to health and property in the same vicinity." in a manner to be determined by it, as to any alleged act of pollution or the
Section 9 in its first paragraph, supposedly the criminal act being imputed to omission or failure to comply with any provisions of this Act or any order of
the petitioner, reads as follows: this Commission.
"SEC. 9.Prohibitions. — No person shall throw, run, drain, or otherwise
dispose into any of the water and/or atmospheric air of the Philippines, or Whenever it appears to the Commission, after investigation, that there has
cause, permit, suffer to be thrown, run, drain, allow to see or otherwise been a violation of any of the provisions of this Act or any order of the
dispose into such waters or atmospheric air, any organic or inorganic matter Commission, it may order whoever causes such violation to show cause
or any substance in gaseous or liquid form that shall cause pollution of such before said Commission why such discharge of industrial wastes or any
waters or atmospheric air." waste should not be discontinued. A notice shall be served on the offending
It will be noted from the above-quoted provision that the prohibited act is to party directing him or it to show cause before the Commission, on a date
throw, run, drain or otherwise dispose into any of the water and/or specified in such notice, why an order should not be made directing the
atmospheric air of the Philippines, any organic or inorganic matter or discontinuance of such violation. Such notice shall specify the time and the
substance "that shall cause pollution of such waters or atmospheric air." place where a public hearing will be held by the Commission or its
Stated in simpler terms, the offense allegedly committed by the petitioner authorized representatives, and notice of such hearing shall be served
was the act of causing pollution of a waterway (highway canal). Cdpr personally or by registered mail, at least ten days before said hearing; and
The term "pollution" as used in the law is not to be taken in its ordinary in the case of a municipality or corporation such notice shall be served upon
signification. In Section 2, paragraph (a), of Republic Act No. 3931, the major or president thereof. The Commission shall take evidence with
"pollution" is defined in these words: reference to said matter and may issue an order to the party responsible for
"(a) 'Pollution' means such alteration of the physical, chemical and/or such violation, directing that within a specified period of time thereafter,
biological properties of any water and/or atmospheric air of the Philippines, such violation be discontinued unless adequate sewage works or industrial
or any such discharge of any liquid, gaseous or solid substance into any of wastes disposal system be properly operated to prevent further damage or
the waters and/or atmospheric air of the country as will or is likely to create pollution. Cdll
or render such waters and/or atmospheric air harmful or detrimental or
injurious to public health, safety or welfare, or to domestic, commercial, No investigation being conducted or ruling made by the Commission shall
industrial, agricultural, recreational or other legitimate uses, or to livestock, prejudice any action which may be filed in court by any person in
wild animals, birds, fish or other aquatic life." accordance with the provisions of the New Civil Code on nuisance. On
matters, however, not related to nuisance, no court action shall be initiated
The power to determine the existence of pollution is vested by the law in until the Commission shall have finally ruled thereon and no order of the
the Commission. Section 6, among others, gives the Commission the Commission discontinuing the discharge of waste shall be stayed by the
authority to "determine whether a pollution exists in any of the waters filing of said court action, unless the court issues an injunction as provided
and/or atmospheric air of the Philippines." (Section 6(a), No. 1); to "hold for in the Rules of Court."
public hearings, . . . make findings of facts and determinations all with
respect to the violations of this Act or orders issued by the Commission." The last paragraph of the above-quoted provision delineates the authority to
(Ibid., No. 3); to "institute or cause to be instituted in the court of be exercised by the Commission and by the ordinary courts in respect of
competent jurisdiction legal proceedings to compel compliance with the preventing or remedying the pollution of the waters or atmospheric air of
BIA | Environmental Law | 49
the Philippines. The provision excludes from the authority of the recognition of this fact that in Section 4 of the law, it is provided that "the
Commission only the determination of and the filing of court actions basic personnel necessary to carry out the provisions of this Act shall be
involving violations of the New Civil Code on nuisance. It is expressly engineers, chemists, biochemists, physicists, and other technicians"; and
directed that on matters not related to nuisance "no court action shall be required in Section 3 that the Chairman of the Commission shall be the
initiated until the Commission shall have finally ruled thereon." This Chairman of the National Science Development Board, one of the part-time
provision leaves little room for doubt that a court action involving the commissioners shall be a recommendee of the Philippine Council of Science
determination of the existence of pollution may not be initiated until and and Technology, and one of the two full-time commissioner shall be a
unless the Commission has so determined the existence of what in the law sanitary engineer. prLL
is considered pollution.
It may not be argued that the above-cited provision refers only to the filing The vesting of authority in an administrative body to determine when to
of civil actions, and not to criminal cases as is the one herein involved, there institute a criminal action for a violation of the law entrusted to it for
being no basis either in the context in law nor from a consideration of the administration or enforcement, to the exclusion of the regular prosecution
purpose behind the enactment of the same upon which such a distinction service of the government, is not new in this jurisdiction. It is recognized in
may be made. Indeed, respondents do not seriously question that the court Yao Lit vs. Geraldez, et al., 106 Phil. 545 which upheld the exclusive
action contemplated in the last paragraph of Section 8 includes criminal authority of the Commissioner of Immigration to investigate and impose
proceedings. Respondents merely aver that the aforementioned grant of administrative fines upon violators of the provisions of Republic Act No. 751
authority to the Commission is not exclusive of the power of Fiscals to file for the reason that said official "has better facilities than the prosecuting
criminal actions for a violation of the provisions of Republic Act No. 3931. officials to carry out the provisions of the said Act, the former official being
the keeper of the records pertaining to aliens." The same principle has been
We are likewise not in accord with the view that the law intended to give recognized with respect to the prosecutions of violations of the Anti-Dummy
concurrent authority to the Commission and Fiscals to prosecute violations Law (Republic Act No. 1131.) In holding that the City Fiscal of Manila has no
of Republic Act No. 3931. It is true that there is no provision expressly authority to prosecute such violations independently of the Anti-Dummy
declaring that the. authority vested in the Commission to prosecute Board, it was said:
violations of Republic Act No. 3931 is exclusive. Using the same logic, there "Were the city fiscal or the provincial fiscals who have the power or right to
is neither a provision declaring such authority to be concurrent or may be prosecute violations of all laws and ordinances allowed to prosecute
exercised jointly with Fiscals. The absence of an explicit declaration as to violations of the Anti-Dummy Board, there would be no order, concert,
the exclusive authority of the Commission to prosecute violations of the cooperation, and coordination between the said agencies of the
subject law does not detract from the clear intention to make it so, as government. The function of coordination which is entrusted to the Anti-
gathered from the philosophy of the law itself and as gleaned from several Dummy Board is evident from all the above-quoted provisions of Republic
provisions of the same. It is clearly deducible from the provision of Section 8 Act No. 1130. There can be no coordination as envisioned in the law unless
expressly declaring that no court action shall be initiated, except those the Anti-Dummy Board be given the power to direct and control the city
related to nuisance, until the Commission shall have finally ruled on the fiscal in the prosecutions of the violations of the Anti-Dummy Law." (Rollo,
alleged act of pollution; and also from Section 6(a), No. 5, which authorizes p. 118; 5 SCRA 428, 433.)
the Commission to "initiate or cause to be instituted in a court of competent
jurisdiction legal proceedings to compel compliance with the provision of In R. B. Industrial Development Co., Ltd. vs. Enage (24 SCRA 365) involving
this Act." the authority of the Bureau of Forestry over the management and use of
public forests and the transfer of licenses for the taking of forest products,
As may be seen from the law, the determination of the existence of this Court has made this pronouncement:
pollution requires investigation, public hearings and the collection of various "A doctrine long recognized is that where the law confines in an
information relating to water and atmospheric pollution, (Sections 6, 7, and administrative office the power to determine particular questions or matters,
8.) The definition of the term "pollution" in itself connotes that the upon the facts to be presented, the jurisdiction of such office shall prevail
determination of its existence requires specialized knowledge of technical over the courts." (p. 124, Rollo.)
and scientific matters which are not ordinarily within the competence of
Fiscals or of those sitting in a court of justice. It is undoubtedly in
BIA | Environmental Law | 50
It is our considered view that the Provincial Fiscal of Rizal lacked the prove that an "immediate threat to life, public health, safety or welfare, or
authority to file the information charging the petitioner with a violation of to animal or plant life" exists before an ex parte cease and desist order may
the provisions of Republic Act No. 3931 there being no prior finding or be issued. It is enough if the Board finds that the wastes discharged do
determination by the Commission that the act of the petitioner had caused exceed "the allowable standards set by the [NPCC]." In respect of
pollution in any water or atmospheric air of the Philippines. It is not to be discharges of wastes as to which allowable standards have been set by the
understood, however, that a fiscal or public prosecutor may not file an Commission, the Board may issue an ex parte cease and desist order when
information for a violation of the said law at all. He may do so if the there is prima facie evidence of an establishment exceeding such allowable
Commission had made a finding or determination that the law or any of its standards. Where, however, the effluents or discharges have not yet been
orders had been violated. In the criminal case presently considered, there the subject matter of allowable standards set by the Commission, then the
had been no prior determination by the Commission that the supposed acts Board may act on an ex parte basis when it finds at least prima facie proof
of the petitioner had caused pollution to any water of the Philippines. The that the wastewater or material involved presents an "immediate threat to
filing of the information for the violation of Section 9 of the law is, life, public health, safety or welfare or to animal or plant life." Since the
therefore, premature and unauthorized. Concommitantly, the respondent applicable standards set by the Commission existing at any given time may
Judge is without jurisdiction to take cognizance of the offense charged well not cover every possible or imaginable kind of effluent or waste
therein. LLjur discharge, the general standard of an "immediate threat to life public
health, safety or welfare, or to animal and plant life" remains necessary.
WHEREFORE, the petition is hereby granted and the questioned Orders of 2. POLITICAL LAW; POLICE POWER; ENACTMENT OF POLLUTION
the respondent Judge are hereby annulled and set aside. The respondent CONTROL STATUTES AND IMPLEMENTING REGULATIONS, AN EXERCISE
Judge is ordered to dismiss Criminal Case No. 5984-75 for lack of THEREOF. — The relevant pollution control statute and implementing
jurisdiction. No costs. regulations were enacted and promulgated in the exercise of that
SO ORDERED. persuasive, sovereign power to protect the safety, health, and general
welfare and comfort of the public, as well as the protection of plant and
G.R. No. 93891 March 11, 1991 animal life, commonly designated as the police power.
POLLUTION ADJUDICATION BOARD vs. COURT OF APPEALS 3. CONSTITUTIONAL LAW; DUE PROCESS; YIELDS TO THE EXERCISE
OF POLICE POWER. — It is a constitutional common place that the ordinary
THIRD DIVISION requirements of procedural due process yield to the necessities of protecting
[G.R. No. 93891. March 11, 1991.] vital public interests like those here involved, through the exercise of police
power.
POLLUTION ADJUDICATION BOARD, petitioner, vs. COURT OF APPEALS 4. ADMINISTRATIVE LAW; POLLUTION ADJUDICATION BOARD; DUE
and SOLAR TEXTILE FINISHING CORPORATION, respondents. PROCESS; HOLDING OF PUBLIC HEARING AFTER EX-PARTE ISSUANCE OF
A CEASE AND DESIS ORDER, SUFFICIENT COMPLIANCE WITH DUE
Oscar A. Pascua and Charemon Clio L. Borre for petitioner. PROCESS CLAUSE. — Where the establishment affected by an ex parte
Leonardo A. Aurelio for respondent Solar Textile Finishing Corp. cease and desist order contests the correctness of the prima facie findings
of the Board, the Board must hold a public hearing where such
SYLLABUS establishment would have an opportunity to controvert the basis of such ex
1. ADMINISTRATIVE LAW; POLLUTION ADJUDICATION BOARD; MAY parte order. That such an opportunity is subsequently available is really all
ISSUE CEASE AND DESIST ORDERS EX-PARTE; BASIS. — Section 7(a) of that is required by the due process clause of the Constitution in situations
P.D. No. 984 authorized petitioner Board to issue ex parte cease and desist like that we have here.
orders. An ex parte cease and desist order may be issued by the Board (a) 5. REMEDIAL LAW; ACTIONS; APPEAL; PROPER REMEDY WHERE
whenever the wastes discharged by an establishment pose an "immediate QUESTIONED ORDER AND WRIT OF EXECUTION WHERE LAWFUL. — Solar
threat to life, public health, safety or welfare, or to animal or plant life," or claims finally that the petition for certiorari was the proper remedy as the
(b) whenever such discharges or wastes exceed "the allowable standards questioned Order and Writ of Execution issued by the Board were patent
set by the [NPCC]." On the one hand, it is not essential that the Board nullities. Since we have concluded that Order and Writ of Execution were
entirely within the lawful authority of petitioner Board, the trial court did not
BIA | Environmental Law | 51
err when it dismissed Solar's petition for certiorari. It follows that the proper and desist from utilizing its wastewater pollution source installations and
remedy was an appeal from the trial court to the Court of Appeals, as Solar discharging its untreated wastewater directly into the canal leading to the
did in fact appeal. Tullahan-Tinejeros River effective immediately upon receipt hereof and until
such time when it has fully complied with all the requirements and until
RESOLUTION further orders from this Board.
SO ORDERED." 1
FELICIANO, J p:
Petitioner Pollution Adjudication Board ("Board") asks us to review the We note that the above Order was based on findings of several inspections
Decision and Resolution promulgated on 7 February 1990 and 10 May 1990, of Solar's plant:
respectively, by the Court of Appeals in C.A. - G.R. No. SP 18821 entitled a. inspections conducted on 5 November 1986 and 12 November 1986
"Solar Textile Finishing Corporation v. Pollution Adjudication Board." In that by the National Pollution Control Commission ("NPCC"), the predecessor of
Decision and Resolution, the Court of Appeals reversed an order of the the Board; 2 and
Regional Trial Court, Quezon City, Branch 77, in Civil Case No. Q-89-2287 b. the inspection conducted on 6 September 1988 by the Department
dismissing private respondent Solar Textile Finishing Corporation's ("Solar") of Environment and Natural Resources ("DENR").
petition for certiorari and remanded the case to the trial court for further
proceedings. The findings of these two (2) inspections were that Solar's wastewater
treatment plant was non-operational and that its plant generated about 30
On 22 September 1988, petitioner Board issued an ex parte Order directing gallons per minute of wastewater, 80% of which was being directly
Solar immediately to cease and desist from utilizing its wastewater pollution discharged into a drainage canal leading to the Tullahan-Tinejeros River.
source installations which were discharging untreated wastewater directly The remaining 20% of the wastewater was being channeled through Solar's
into a canal leading to the adjacent Tullahan-Tinejeros River. The Order non-operational wastewater treatment plant. Chemical analysis of samples
signed by Hon. Fulgencio Factoran, Jr., as Board Chairman, reads in full as of Solar's effluents showed the presence of pollutants on a level in excess of
follows: what was permissible under P.D. No. 984 and its Implementing Regulations.
"Respondent, Solar Textile Finishing Corporation with plant and place of
business at 999 General Pascual Avenue, Malabon, Metro Manila is involved A copy of the above Order was received by Solar on 26 September 1988. A
in bleaching, rinsing and dyeing textiles with wastewater of about 30 gpm. Writ of Execution issued by the Board was received by Solar on 31 March
being directly discharged untreated into the sewer. Based on findings in the 1989.
Inspections conducted on 05 November 1986 and 15 November 1986, the
volume of untreated wastewater discharged in the final outfall outside of Meantime, Solar filed a motion for reconsideration appeal with prayer for
the plant's compound was even greater. The result of inspection conducted stay of execution of the Order dated 22 September 1988. Acting on this
on 06 September 1988 showed that respondent's Wastewater Treatment motion, the Board issued an Order dated 24 April 1989 allowing Solar to
Plant was noted unoperational and the combined wastewater generated operate temporarily, to enable the Board to conduct another inspection and
from its operation was about 30 gallons per minute and 80% of the evaluation of Solar's wastewater treatment facilities. In the same Order, the
wastewater was being directly discharged into a drainage canal leading to Board directed the Regional Executive Director of the DENR NCR to conduct
the Tullahan-Tinejeros River by means of a by-pass and the remaining 20% the inspection and evaluation within thirty (30) days.
was channeled into the plant's existing Wastewater Treatment Plant (WTP).
Result of the analyses of the sample taken from the by - pass showed that On 21 April 1989, however, Solar went to the Regional Trial Court of
the wastewater is highly pollutive in terms of Color units, BOD and Quezon City, Branch 77, on petition for certiorari with preliminary injunction
Suspended Solids, among others. These acts of respondent in spite of against the Board, the petition being docketed as Civil Case No. Q-89-2287.
directives to comply with the requirements are clearly in violation of Section
8 of Presidential Decree No. 984 and Section 103 of its Implementing Rules On 21 July 1989, the Regional Trial Court dismissed Solar's petition upon
and Regulations and the 1982 Effluent Regulations. two (2) grounds, i.e., that appeal and not certiorari from the questioned
WHEREFORE, pursuant to Section 7 of P.D. 984 and Section 38 of its Order of the Board as well as the Writ of Execution was the proper remedy,
Implementing Rules and Regulations, respondent is hereby ordered to cease
BIA | Environmental Law | 52
and that the Board's subsequent Order allowing Solar to operate temporarily
had rendered Solar's petition moot and academic. The Court is not persuaded by Solar's contention. Section 7(a) of P.D. No.
984 authorized petitioner Board to issue ex parte cease and desist orders
Dissatisfied, Solar went on appeal to the Court of Appeals which, in the under the following circumstances:
Decision here assailed, reversed the Order of dismissal of the trial court and "P.D. 984, Section 7, paragraph (a), provides:
remanded the case to that court for further proceedings. In addition, the (a) Public Hearing . . . Provided, That whenever the Commission finds
Court of Appeals declared the Writ of Execution null and void. At the same prima facie evidence that the discharged sewage or wastes are of
time, the Court of Appeals said in the dispositive portion of its Decision that: immediate threat to life, public health, safety or welfare, or to animal or
". . . Still and all, this decision is without prejudice to whatever action the plant life, or exceeds the allowable standards set by the Commission, the
appellee [Board] may take relative to the projected 'inspection and Commissioner may issue an ex-parte order directing the discontinuance of
evaluation' of appellant's [Solar's] water treatment facilities." 3 the same or the temporary suspension or cessation of operation of the
establishment or person generating such sewage or wastes without the
The Court of Appeals, in so ruling, held that certiorari was a proper remedy necessity of a prior public hearing. The said ex-parte order shall be
since the Orders of petitioner Board may result in great and irreparable immediately executory and shall remain in force until said establishment or
injury to Solar; and that while the case might be moot and academic, person prevents or abates the said pollution within the allowable standards
"larger issues" demanded that the question of due process be settled. or modified or nullified by a competent court." (Emphasis supplied).
Petitioner Board moved for reconsideration, without success. Prcd
We note that under the above-quoted portion of Section 7(a) of P.D. No.
The Board is now before us on a Petition for Review basically arguing that: 984, an ex parte cease and desist order may be issued by the Board (a)
1. its ex parte Order dated 22 September 1988 and the Writ of whenever the wastes discharged by an establishment pose an "immediate
Execution were issued in accordance with law and were not violative of the threat to life, public health, safety or welfare, or to animal or plant life," or
requirements of due process; and (b) whenever such discharges or wastes exceed "the allowable standards
2. the ex parte Order and the Writ of Execution are not the proper set by the [NPCC]." On the one hand, it is not essential that the Board
subjects of a petition for certiorari. prove that an "immediate threat to life, public health, safety or welfare, or
to animal or plant life" exists before an ex parte cease and desist order may
The only issue before us at this time is whether or not the Court of Appeals be issued. It is enough if the Board finds that the wastes discharged do
erred in reversing the trial court on the ground that Solar had been denied exceed "the allowable standards set by the [NPCC]." In respect of
due process by the Board. discharges of wastes as to which allowable standards have been set by the
Commission, the Board may issue an ex parte cease and desist order when
Petitioner Board claims that under P.D. No. 984, Section 7(a), it has legal there is prima facie evidence of an establishment exceeding such allowable
authority to issue ex parte orders to suspend the operations of an standards. Where, however, the effluents or discharges have not yet been
establishment when there is prima facie evidence that such establishment is the subject matter of allowable standards set by the Commission, then the
discharging effluents or wastewater, the pollution level of which exceeds the Board may act on an ex parte basis when it finds at least prima facie proof
maximum permissible standards set by the NPCC (now, the Board). that the wastewater or material involved presents an "immediate threat to
Petitioner Board contends that the reports before it concerning the effluent life, public health, safety or welfare or to animal or plant life." Since the
discharges of Solar into the Tullahan-Tinejeros River provided prima facie applicable standards set by the Commission existing at any given time may
evidence of violation by Solar of Section o of the 1982 Effluent Code. well not cover every possible or imaginable kind of effluent or waste
discharge, the general standard of an "immediate threat to life public
Solar, on the other hand, contends that under the Board's own rules and health, safety or welfare, or to animal and plant life" remains necessary.
regulations, an ex parte order may issue only if the effluents discharged Cdpr
pose an "immediate threat to life, public health; safety or welfare, or to
animal and plant life." In the instant case, according to Solar, the inspection Upon the other hand, the Court must assume that the extant allowable
reports before the Board made no finding that Solar's wastewater standards have been set by the Commission or Board precisely in order to
discharged posed such a threat.
BIA | Environmental Law | 53
avoid or neutralize an "immediate threat to life, public health, safety or c) Tempera- 40 c) Temperature
welfare, or to animal or plant life." ture in ºC (ºC)
d) Phenols in 0.1 d) Phenols in
Section 5 of the Effluent Regulations of 1982 4 sets out the maximum mg./l. mg./l.
permissible levels of physical and chemical substances which "effluents from e) Suspended 75 e) Suspended 340 80
domestic wastewater treatment plants and industrial plants must not exceed solids in solids in
"when discharged into bodies of water classified as Class A, B, C, D, SB and mg./l. mg./l.
SC in accordance with the 1978 NPCC Rules and Regulations." The waters f) BOD in 80 f) BOD (5-day) 1,100 152
of Tullahan - Tinejeros River are classified as inland waters Class D under mg./l mg./l.
Section 68 of the 1978 NPCC Rules and Regulations, 5 which in part g) oil/Grease 10 g) Oil/Grease
provides that: in mg./l. mg./l.
"Section 68. Water Usage and Classification. — The quality of Philippine h) Detergents 5 h) Detergents 2.93
waters shall be maintained in a safe and satisfactory condition according to in mg./l." mg./l. MBAS
their best usages. For this purpose, all water shall be classified according to i) Dissolved 0
the following beneficial usages: Oxygen, mg./l.
(a) Fresh Surface Water. j) Settleable 0.4 1.5
Classification Best usage Matter, mg./l.
xxx xxx xxx k) Total Dis- 800 610
Class D For agriculture, irrigation, solved Solids
live stock watering and mg./l.
industrial cooling and l) Total Solids 1,400 690
processing mg./l.
xxx xxx xxx m) Turbidity
(Emphases supplied) NTU/ppm. SiO3 70

The reports on the inspections carried on Solar's wastewater treatment The November 1986 inspections report concluded that:
facilities on 5 and 12 November 1986 and 6 September 1988 set forth the "Records of the Commission show that the plant under its previous owner,
following identical finding: Fine Touch Finishing Corporation, was issued a Notice of Violation on 20
"a. For legal action in [view of] violation of Section 103 of the December 1985 directing same to cease and desist from conducting dyeing
implementing rules and regulations of P.D. No. 984 and Section 5 of the operation until such time the waste treatment plant is already completed
Effluent Regulations of 1982." 6 and operational. The new owner Solar Textile Corporation informed the
Placing the maximum allowable standards set in Section 5 of the Effluent Commission of the plant acquisition thru its letter dated March 1986 (sic).
Regulations of 1982 alongside the findings of the November 1986 and
September 1988 inspection reports, we get the following results: The new owner was summoned to a hearing held on 13 October 1986
"Inland November September based on the adverse findings during the inspection/water sampling test
Waters 1986 1988 conducted on 08 August 1986. As per instruction of the Legal Division a re-
(Class C & D 7 Report 8 Report 9 inspection/sampling text should be conducted first before an appropriate
Station 1 Station 1 legal action is instituted; hence, this inspection.

a) Color in 100 a) Color units 250 125 Based on the above findings, it is clear that the new owner continuously
platinum (Apparent violates the directive of the Commission by undertaking dyeing operation
cobalt Color) without completing first and operating its existing WTP. The analysis of
units results on water samples taken showed that the untreated wastewater from
b) pH 6-8.5 b) pH 9.3 8.7 the firm pollutes our water resources. In this connection, it is recommended
BIA | Environmental Law | 54
that appropriate legal action be instituted immediately against the firm . . ." ordered by the Acting Mayor of Sta. Maria, Bulacan, of a pollution-causing
10 establishment, after finding that the records showed that:
The September 1988 inspection report's conclusions were: "1. No mayor's permit had been secured. While it is true that the
"1. The plant was undertaking dyeing, bleaching and rinsing operations matter of determining whether there is a pollution of the environment that
during the inspection. The combined wastewater generated from the said requires control if not prohibition of the operation of a business is essentially
operations was estimated at about 30 gallons per minute. About 80% of the addressed to the then National Pollution Control Commission of the Ministry
wastewater was traced directly discharged into a drainage canal leading to of Human Settlements, now the Environmental Management Bureau of the
the Tullahan - Tinejeros river by means of a bypass. The remaining 20% Department of Environment and Natural Resources, it must be recognized
was channeled into the plant's existing wastewater treatment plant (WTP). that the mayor of a town has as much responsibility to protect its
2. The WTP was noted not yet fully operational — some accessories inhabitants from pollution, and by virtue of his police power, he may deny
were not yet installed. Only the sump pit and the holding/collecting tank are the application for a permit to operate a business or otherwise close the
functional but appeared seldom used. The wastewater mentioned channeled same unless appropriate measures are taken to control and or avoid injury
was noted held indefinitely into the collection tank for primary treatment. to the health of the residents of the community from the emission in the
There was no effluent discharge [from such collection tank]. operation of the business.
3. A sample from the bypass wastewater was collected for laboratory 2. The Acting Mayor, in a letter of February 16, 1989, called the
analyses. Result of the analyses show that the bypass wastewater is attention of petitioner to the pollution emitted by the fumes of its plant
polluted in terms of color units, BOD and suspended solids, among others. whose offensive odor "not only pollute the air in the locality but also affect
(Please see attached laboratory result)." 11 the health of the residents in the area," so that petitioner was ordered to
stop its operation until further orders and it was required to bring the
From the foregoing reports, it is clear to this Court that there was at least following:
prima facie evidence before the Board that the effluents emanating from xxx xxx xxx
Solar's plant exceeded the maximum allowable levels of physical and (3) Region III-Department of Environment and Natural Resources Anti-
chemical substances set by the NPCC and that accordingly there was Pollution permit. (Annex A-2, petition).
adequate basis supporting the ex parte cease and desist order issued by the 3. This action of the Acting Mayor was in response to the complaint of
Board. It is also well to note that the previous owner of the plant facility — the residents of Barangay Guyong, Sta. Maria, Bulacan, directed to the
Fine Touch Finishing Corporation — had been issued a Notice of Violation on Provincial Governor through channels (Annex A-B, petition). . . .
20 December 1985 directing it to cease and refrain from carrying out dyeing 4. The closure order of the Acting Mayor was issued only after an
operations until the water treatment plant was completed and operational. investigation was made by Marivic Guina who in her report of December 8,
Solar, the new owner, informed the NPCC of the acquisition of the plant on 1988 observed that the fumes emitted by the plant of petitioner goes
March 1986. Solar was summoned by the NPCC to a hearing on 13 October directly to the surrounding houses and that no proper air pollution device
1986 based on the results of the sampling test conducted by the NPCC on 8 has been installed. (Annex A-9, petition).
August 1986. Petitioner Board refrained from issuing an ex parte cease and xxx xxx xxx
desist order until after the November 1986 and September 1988 re- 6. While petitioner was able to present a temporary permit to operate
inspections were conducted and the violation of applicable standards was by the then National Pollution Control Commission on December 15, 1987,
confirmed. In other words, petitioner Board appears to have been the permit was good only up to May 25, 1988 (Annex A-12, petition).
remarkably forbearing in its efforts to enforce the applicable standards vis- Petitioner had not exerted any effort to extend or validate its permit much
a-vis Solar. Solar, on the other hand, seemed very casual about its less to install any device to control the pollution and prevent any hazard to
continued discharge of untreated, pollutive effluents into the Tullahan- the health of the residents of the community."
Tinejeros River, presumably loath to spend the money necessary to put its
Wastewater Treatment Plant ("WTP") in an operating condition. Cdrep In the instant case, the ex parte cease and desist Order was issued not by a
local government official but by the Pollution Adjudication Board, the very
In this connection, we note that in Technology Developers, Inc. v. Court of agency of the Government charged with the task of determining whether
Appeals, et al., 12 the Court very recently upheld the summary closure the effluents of a particular industrial establishment comply with or violate
applicable anti-pollution statutory and regulatory provisions.
BIA | Environmental Law | 55
Ex parte cease and desist orders are permitted by law and regulations in Solar claims finally that the petition for certiori was the proper remedy as
situations like that here presented precisely because stopping the the questioned Order and Writ of Execution issued by the Board were
continuous discharge of pollutive and untreated effluents into the rivers and patent nullities. Since we have concluded that Order and Writ of Execution
other inland waters of the Philippines cannot be made to wait until were entirely within the lawful authority of petitioner Board, the trial court
protracted litigation over the ultimate correctness or propriety of such did not err when it dismissed Solar's petition for certiorari. It follows that
orders has run its full course, including multiple and sequential appeals such the proper remedy was an appeal from the trial court to the Court of
as those which Solar has taken, which of course may take several years. Appeals, as Solar did in fact appeal.
The relevant pollution control statute and implementing regulations were ACCORDINGLY, the Petition for Review is given DUE COURSE and the
enacted and promulgated in the exercise of that persuasive, sovereign Decision of the Court of Appeals dated 7 February 1990 and its Resolution
power to protect the safety, health, and general welfare and comfort of the dated 10 May 1990 in A.C. - G.R. No. SP 18821 are hereby SET ASIDE. The
public, as well as the protection of plant and animal life, commonly Order of petitioner Board dated 22 September 1988 and the Writ of
designated as the police power. It is a constitutional common place that the Execution, as well as the decision of the trial court dated 21 July 1989, are
ordinary requirements of procedural due process yield to the necessities of hereby REINSTATED, without prejudice to the right of Solar to contest the
protecting vital public interests like those here involved, through the correctness of the basis of the Board's Order and Writ of Execution at a
exercise of police power. The Board's ex parte Order and Writ of Execution public hearing before the Board.
would, of course, have compelled Solar temporarily to stop its plant
operations, a state of affairs Solar could in any case have avoided by simply
absorbing the bother and burden of putting its WTP on an operational basis.
Industrial establishments are not constitutionally entitled to reduce their
capitals costs and operating expenses and to increase their profits by
imposing upon the public threats and risks to its safety, health, general
welfare and comfort, by disregarding the requirements of anti-pollution
statutes and their implementing regulations. Cdll

It should perhaps be made clear the Court is not here saying that the
correctness of the ex parte Order and Writ of Execution may not be
contested by Solar in a hearing before the Board itself. Where the
establishment affected by an ex parte cease and desist order contests the
correctness of the prima facie findings of the Board, the Board must hold a
public hearing where such establishment would have an opportunity to
controvert the basis of such ex parte order. That such an opportunity is
subsequently available is really all that is required by the due process clause
of the Constitution in situations like that we have here. The Board's decision
rendered after the public hearing may then be tested judicially by an appeal
to the Court of Appeals in accordance with Section 7(c) of P.D. No. 984 and
Section 42 of the Implementing Rules and Regulations. A subsequent public
hearing is precisely what Solar should have sought instead of going to court
to seek nullification of the Board's Order and Writ of Execution and instead
of appealing to the Court of Appeals. It will be recalled that the Board in
fact gave Solar authority temporarily to continue operations until still
another inspection of its wastewater treatment facilities and then another
analysis of effluent samples could be taken and evaluated.

BIA | Environmental Law | 56


G.R. No. 94759 January 21, 1991 Petitioner's attention having been called to its lack of mayor's permit, it sent
TECHNOLOGY DEVELOPERS, INC. vs. COURT OF APPEALS, ET AL. its representatives to the office of the mayor to secure the same but were
not entertained. LLphil
FIRST DIVISION
[G.R. No. 94759. January 21, 1991.] On April 6, 1989, without previous and reasonable notice upon petitioner,
respondent acting mayor ordered the Municipality's station commander to
TECHNOLOGY DEVELOPERS, INC., petitioner, vs. COURT OF APPEALS, padlock the premises of petitioner's plant, thus effectively causing the
HON. NARCISO T. ATIENZA as Presiding Judge, Bulacan, RTC, and HON. stoppage of its operation.
VICENTE CRUZ, Acting Mayor and the MUNICIPALITY OF STA. MARIA,
BULACAN, respondents. Left with no recourse, petitioner instituted an action for certiorari,
prohibition, mandamus with preliminary injunction against private
Diosdado P. Peralta for petitioner. respondent with the court a quo which is presided by the respondent judge.
In its prayer for the issuance of a writ of preliminary mandatory injunction,
DECISION it alleged therein that the closure order was issued in grave abuse of
discretion.
GANCAYCO, J p:
The authority of the local executive to protect-the community from pollution During the hearing of the application for the issuance of a writ of
is the center of this controversy. preliminary injunction on April 14, 1989, herein parties adduced their
respective evidences. The respondent judge, on April 19, 1989, found that
The antecedent facts are related in the appealed decision of the Court of petitioner is entitled to the issuance of the writ of preliminary mandatory
Appeals as follows: injunction, hence, it ordered as follows:
"Petitioner, a domestic private corporation engaged in the manufacture and
export of charcoal briquette, received a letter dated February 16, 1989 from "In view of the foregoing, upon petitioner's posting of a bond in the amount
private respondent acting mayor Pablo N. Cruz, ordering the full cessation of P50,000.00 to answer for such damages that respondents may sustain
of the operation of the petitioner's plant located at Guyong, Sta. Maria, should petitioner eventually be found not entitled to the injunctive relief
Bulacan, until further order. The letter likewise requested Plant Manager Mr. hereby issued, let a PRELIMINARY MANDATORY INJUNCTION issue ordering
Armando Manese to bring with him to the office of the mayor on February the respondent Hon. Pablo N. Cruz, and other person acting in his behalf
20, 1989 the following: a) Building permit; b) Mayor's permit; c) Region III- and stead to immediately revoke his closure order dated April 6, 1989, and
Pollution of Environment and Natural Resources Anti-Pollution Permit; and allow petitioner to resume its normal business operations until after the
of other document. instant case shall have been adjudicated on the merits without prejudice to
the inherent power of the court to alter, modify or even revoke this order at
At the requested conference on February 20, 1989, petitioner, through its any given time.
representative, undertook to comply with respondent's request for the "SO ORDERED."
production of the required documents. In compliance with said undertaking,
petitioner commenced to secure "Region III-Department of Environmental The writ of preliminary mandatory injunction was issued on April 28, 1989,
and Natural Resources Anti-Pollution Permit," although among the permits upon petitioner's posting a bond in the amount of P50,000.00.
previously secured prior to the operation of petitioner's plant was a Private respondent filed his motion for reconsideration dated May 3, 1989.
"Temporary Permit to Operate Air Pollution Installation" issued by the then Said motion for reconsideration was heard on May 30, 1989. Petitioner's
National Pollution Control Commission (now Environmental Management counsel failed to appear and the hearing proceeded with the Provincial
Bureau) and is now at a stage where the Environmental Management Prosecutor presenting his evidence. The following documents were
Bureau is trying to determine the correct kind of anti-pollution devise to be submitted:
installed as part of petitioner's request for the renewal of its permit.

BIA | Environmental Law | 57


a) Exhibit "A", Investigation report on the Technology Developers Inc., The well-known rule is that the matter of issuance of a writ of preliminary
prepared by one Marivic Guina, and her conclusion and recommendation injunction is addressed to the sound judicial discretion of the trial court and
read: its action shall not be disturbed on appeal unless it is demonstrated that it
"Due to the manufacturing process and nature of raw materials used, the acted without jurisdiction or in excess of jurisdiction or otherwise, in grave
fumes coming from the factory may contain particulate matters which are abuse of its discretion. By the same token the court that issued such a
hazardous to the health of the people. As such, the company should cease preliminary relief may recall or dissolve the writ as the circumstances may
operating until such a time that the proper air pollution device is installed warrant.
and operational." To the mind of the Court the following circumstances militate against the
b) Exhibits "B", "B-1", "B-2", three (3) sheets of coupon bond maintenance of the writ of preliminary injunction sought by petitioner:
containing signatures of residents of Barangay Guyong, Sta. Maria, Bulacan; 1. No mayor's permit had been secured. While it is true that the
c) Exhibit "B-3", a letter addressed to Hon. Roberto Pagdanganan, matter of determining whether there is a pollution of the environment that
Governor of the Province of Bulacan, dated November 22, 1988, requires control if not prohibition of the operation of a business is essentially
complaining about the smoke coming out of the chimney of the company addressed to the then National Pollution Control Commission of the Ministry
while in operation. LexLib of Human Settlements, now the Environmental Management Bureau of the
Department of Environment and Natural Resources, it must be recognized
Reassessing all the evidence adduced, the lower court, on June 14, 1989, that the mayor of a town has as much responsibility to protect its
issued an order (a) setting aside the order dated April 28, 1989, which inhabitants from pollution, and by virture of his police power, he may deny
granted a Writ of Preliminary Mandatory Injunction, and (b) dissolving the the application for a permit to operate a business or otherwise close the
writ consequently issued. same unless appropriate measures are taken to control and/or avoid injury
to the health of the residents of the community from the emissions in the
A motion for reconsideration dated July 6, 1989 was filed by petitioner. Said operation of the business. LexLib
motion drew an opposition dated July 19, 1989 from private respondent. 2. The Acting Mayor, in a letter of February 16, 1989, called the
Resolving the petitioner's motion for reconsideration, the respondent judge attention of petitioner to the pollution emitted by the fumes of its plant
issued an order dated August 9, 1989, denying said motion for whose offensive odor "not only pollute the air in the locality but also affect
reconsideration. 1 the health of the residents in the area," so that petitioner was ordered to
stop its operation until further orders and it was required to bring the
Hence a petition for certiorari and prohibition with preliminary injunction following:
was filed by petitioner in the Court of Appeals seeking to annul and set (1) Building permit;
aside (a) the order issued by the trial court on June 14, 1989, setting aside (2) Mayor's permit; and
the order dated April 28, 1989, and (b) the order of August 9, 1989, (3) Region III-Department of Environment and Natural Resources Anti-
denying petitioner's motion for reconsideration of the order of June 14, Pollution permit. 3
1989. In due course the petition was denied for lack of merit by the 3. This action of the Acting Mayor was in response to the complaint of
appellate court in a decision dated January 26, 1990. 2 A motion for the residents of Barangay Guyong, Sta. Maria, Bulacan, directed to the
reconsideration thereof filed by petitioner was denied on August 10, 1990. Provincial Governor through channels. 4 The alleged NBI finding that some
of the signatures in the four-page petition were written by one person, 5
Thus, the herein petition for review on certiorari filed with this Court. Six appears to be true in some instances, (particularly as among members of
errors are alleged to have been committed by the appellate court which the same family), but on the whole the many signatures appear to be
may be synthesized into the singular issue of whether or not the appellate written by different persons. The certification of the barrio captain of said
court committed a grave abuse of discretion in rendering its question barrio that he has not received any complaint on the matter 6 must be
decision and resolution. because the complaint was sent directly to the Governor through the Acting
Mayor.
The petition is devoid of merit. 4. The closure order of the Acting Mayor was issued only after an
investigation was made by Marivic Guina who in her report of December 8,
1988 observed that the fumes emitted by the plant of petitioner goes
BIA | Environmental Law | 58
directly to the surrounding houses and that no proper air pollution device Before Us is a petition to review by certiorari 1) respondent court's decision
has been installed. 7 which sets aside the order of default rendered by the trial court and 2)
5. Petitioner failed to produce a building permit from the municipality respondent court's resolution dated April 18, 1986 denying petitioners'
of Sta. Maria, but instead presented a building permit issued by an official of (plaintiffs-appellees' therein) motion for extension of time to file motion for
Makati on March 6, 1987. 8 reconsideration of its decision. 1
6. While petitioner was able to present a temporary permit to operate
by the then National Pollution Control Commission on December 15, 1987, The antecedent facts of the case are as follows: prLL
the permit was good only up to May 25, 1988. 9 Petitioner had not exerted Plaintiffs (petitioners herein) filed on December 16, 1980, an action for
any effort to extend or validate its permit much less to install any device to abatement of a public nuisance with damages against defendant (private
control the pollution and prevent any hazard to the health of the residents respondent herein). After being granted four (4) extensions of time to file
of the community. an answer, defendant moved to dismiss the complaint on February 27, 1981
All these factors justify the dissolution of the writ of preliminary injunction upon the ground that the lower court has no jurisdiction to hear the instant
by the trial court and the appellate court correctly upheld the action of the case and for lack of cause of action. However, the motion was denied by
lower court. the court on April 3, 1981, a copy of which decision was received by the
defendant on April 23, 1981. On May 5, 1981 defendant filed a motion for
Petitioner takes note of the plea of petitioner focusing on its huge reconsideration which motion was denied on July 7, 1981.
investment in this dollar-earning industry. It must be stressed however, that
concomitant with the need to promote investment and contribute to the Instead of filing an answer, petitioner filed with Us in G.R. No. 57593,
growth of the economy is the equally essential imperative of protecting the Daytona Construction & Development Corporation vs. Rodriguez, et al. a
health, nay the very lives of the people, from the deleterious effect of the motion for extension of time to file a petition for review, but it never filed
pollution of the environment. cdphil one, prompting Us to issue a resolution dated October 5, 1981 informing
the parties and the trial court that no petition for review was filed within the
WHEREFORE, the petition is DENIED, with costs against petitioner. SO period that expired on August 15, 1981.
ORDERED.
Upon motion of plaintiffs, the court declared the defendant in default on
G.R. No. 74816 March 17, 1987 November 4, 1981, and authorized the plaintiffs to present evidence ex-
ERNESTO R. RODRIGUEZ, JR. vs. INTERMEDIATE APPELLATE parte. Upon learning of the said order, the defendant on November 9, 1981
COURT filed a motion to set aside the order of default and a motion to admit
answer with counterclaim which motions were denied by the lower court in
SECOND DIVISION an order dated November 23, 1981.
[G.R. No. 74816. March 17, 1987.]
On June 30, 1982, the court a quo rendered judgment for the plaintiffs and
ERNESTO R. RODRIGUEZ, JR., ERNESTO LL. RODRIGUEZ III, SACHA DEL against defendant, its dispositive portion reading as follows:
ROSARIO, JOSE P. GENITO, ZENAIDA Z. RODRIGUEZ, and ENECERIO "WHEREFORE, judgment is hereby rendered as follows:
MONDIA, petitioners, vs. INTERMEDIATE APPELLATE COURT and DAYTONA 1. Declaring the operation of the cement batching plant of the
CONSTRUCTION & DEVELOPMENT CORPORATION, respondents. defendant corporation as a nuisance and ordering its permanent closure;
2. Ordering the defendant to pay plaintiff Ernesto Rodriguez, Jr. the
Pelaez, Adriano & Gregorio Law Office for petitioners. amount of P250,000.00 as moral damages and the amount of P5,000.00 as
Balgos & Perez Law Office for respondents. nominal damages;
3. Ordering the defendant to pay plaintiff Ernesto Ll. Rodriguez III the
DECISION amount of P200,000.00 as actual damages, the amount of P500,000.00 as
moral damages and the amount of P5,000.00 as nominal damages;
PARAS, J p:

BIA | Environmental Law | 59


4. Ordering the defendant to pay plaintiff Sacha del Rosario the WITHOUT APPROPRIATE PRIOR NOTICE TO THE APPELLANT." (pp. 1-2,
amount of P20,000.00 as actual damages, the amount of P50,000.00 as Appellant's Brief)
moral damages and the amount of P5,000.00 as nominal damages;
5. Ordering the defendant to pay plaintiff Zenaida Z. Rodriguez the On March 21, 1986, respondent court promulgated its decision, the decretal
amount of P100,000.00 as actual damages, the amount of P100,000.00 as portion of which is as follows: cdphil
moral damages and the amount of P5,000.00 as nominal damages; and "WHEREFORE, the Decision appealed from is hereby reversed and set aside
6. Ordering the defendant to pay the plaintiffs the amount of and another one entered, remanding the case to the court of origin for
P50,000.00 as attorney's fees, plus the costs of suit. further proceedings and thereafter, to render judgment accordingly."
"SO ORDERED." (pp. 63-64, Record on Appeal) "No pronouncement as to costs."

In an order dated July 9, 1982, the trial court upon motion of plaintiffs Notice of respondent Court's decision was received by plaintiffs-appellees
granted execution pending appeal it indeed appearing as alleged in the thru counsel on April 3, 1986. Plaintiffs filed on April 15, 1986 a motion for
motion that the continued operation of the cement batching plant of the extension of 30 days from April 18, 1986 or up to May 18, 1986 to file a
defendant poses a "great menace to the neighborhood, both in point of motion for reconsideration. However, on May 10, 1986, they filed a 24-page
health and property." motion for reconsideration.

On July 23, 1982, defendant filed a petition for relief which was however Meanwhile, on April 23, 1986, defendant's opposition to the motion for
denied by the lower court. On July 29, 1982, defendant filed a petition for extension and counter-motion to enter final judgment were received by
injunction with the Intermediate Appellate Court which found the petition plaintiffs. Plaintiffs countered with a reply filed April 29, 1986. (Annex "C-2")
unmeritorious. 2 The appellate court promulgated on October 5, 1983, a Plaintiffs' counsel was surprised to receive on April 24, 1986, respondent
decision denying due course to defendant's petition. Court's resolution dated April 18, 1986, denying the motion for extension.
Its motion for reconsideration having been denied by the Appellate Court, Plaintiffs requested respondent Court to treat their aforesaid reply filed on
defendant went on appeal by certiorari to the Supreme Court (G.R. No. April 29, 1986 as a motion for reconsideration of the said resolution of April
66097) which, after the submission of plaintiffs' comment and defendant's 18, 1986, received by them on April 21, 1986, the request being contained
reply thereto, denied its petition for lack of merit. in their opposition dated May 22, 1986, to defendant-appellant's motion to
The petition for injunction having been denied by both the IAC and this strike out the said opposition attached thereto as Annex "C-3." Neither the
Court, defendant pursued the remedy of appeal in respondent IAC, motion for reconsideration (converted from the reply filed on April 29, 1986)
assigning the following errors. nor the motion for reconsideration of the decision itself was acted upon by
respondent court.
"I. THE TRIAL COURT ERRED WHEN IT DECLARED APPELLANT IN
DEFAULT DESPITE THE FACT THAT ITS FAILURE TO FILE ITS ANSWER ON Hence this petition to review, petitioners alleging that "Respondent court's
TIME WAS DUE SOLELY TO THE NEGLIGENCE OF ITS COUNSEL AND challenged resolution purporting to deny appellees' motion for extension of
DESPITE THE FACT THAT THE MOTION TO DISMISS THAT IT HAD FILED time to file a motion for reconsideration is a nullity because the decision in
COULD HAVE VERY WELL STOOD AS THE ANSWER OF THE APPELLANT. Habaluyas v. Japson case, 3 solely relied on by the said resolution has been
"II. THE TRIAL COURT ERRED WHEN IT ASSUMED JURISDICTION made by the Supreme Court to operate prospectively and thereby rendered
OVER THE CASE AND WHEN IT RENDERED JUDGMENT BY DEFAULT inapplicable to parties situated as petitioners are, in order precisely to spare
AGAINST THE APPELLANT ON GROUNDS AND/OR BASIS NOT ALLEGED IN them from unfair and unjust deprivation of their right to appeal."
THE COMPLAINT FILED AGAINST THE APPELLANT.
"III. THE TRIAL COURT ERRED WHEN IT DID NOT ALLOW RELIEF In Our resolution, promulgated May 30, 1986 in the Habaluyas case itself
FROM JUDGMENT IN THE FACE OF THE REASONS PRESENTED TO IT AS (G.R. No. 70895), We set aside the original judgment therein, thus:
BASIS FOR SUCH RELIEF. "However, the law and the Rules of Court do not expressly prohibit the filing
"IV. THE TRIAL COURT ERRED WHEN DESPITE THE APPEAL HAVING of a motion for extension of time to file a motion for reconsideration of a
BEEN DULY PERFECTED, IT DETAINED THE CASE WITH IT AND final order or judgment.
THEREAFTER, ISSUED AN ALIAS WRIT OF EXECUTION PENDING APPEAL
BIA | Environmental Law | 60
"In the case of Gibbs vs. Court of First Instance (80 Phil. 160), the Court
dismissed the petition for certiorari and ruled that the failure of defendant's It is clear therefore that petitioners' motion was based on good cause and
attorney to file the petition to set aside the judgment within the was filed opportunely making the act of respondent Court unwarranted in
reglementary period was due to excusable neglect, and, consequently, the denying petitioners' motion for extension of time to file its motion for
record on appeal was allowed. The Court did not rule that the motion for reconsideration.
extension of time to file a motion for new trial or reconsideration could not
be granted. Another important issue raised by the petitioners is that the "subject
"In the case of Roque vs. Gunigundo (Administrative Case No. 1684, March decision which purports to set aside the order of default rendered by the
30,1979, 89 SCRA 178), a division of the Court cited the Gibbs decision to trial court is a nullity because respondent court arbitrarily ignored in grave
support a statement that a motion to extend the reglementary period for abuse of discretion amounting to lack of jurisdiction 1) the conclusive effect
filing the motion for reconsideration is not authorized or is not in order. of the trial court's final and unappealed order denying defendant's motion to
set aside the default order," and 2) the res judicata effect of the appellate
"The Intermediate Appellate Court 4 is sharply divided on this issue. Appeals court's final judgment in the injunction case aforementioned upholding the
have been dismissed on the basis of the original decision in this case. trial court's order granting execution of its judgment pending appeal and,
necessarily, the default order as well 3) the law of the case effect of the
"After considering the able arguments of counsels for petitioners and appellate court's express ruling in the said injunction case sustaining the
respondents, the Court resolved that the interest of justice would be better default order.
served if the ruling in the original decision were applied prospectively from
the time herein stated. The reason is that it would be unfair to deprive Petitioners' contentions merit our consideration.
parties of their right to appeal simply because they availed themselves of a It has been Our consistent ruling that a default order, being interlocutory, is
procedure which was not expressly prohibited or allowed by the law or the not appealable but an order denying a motion or petition to set aside an
Rules. . . ." (pp. 3-4; Resolution dated May 30, 1986 in G.R. No. 70895; order of default is not merely interlocutory but final and therefore
emphasis supplied). immediately appealable. 5

This Court further elucidated: Since the trial court's order of November 13, 1981, denying defendant's
"1). Beginning one month after the promulgation of this Resolution, the motion to set aside the order of default was appealable but was not
rule shall be strictly enforced that no motion for extension of time to file a appealed by defendant, the necessary conclusion is that the default order
motion for new trial or reconsideration may be filed with the Metropolitan or became final. Clearly therefore, respondent Court committed a grave abuse
Municipal Trial Courts, the Regional Trial Courts, and the Intermediate of discretion in disregarding the finality of the default order.
Appellate Court. Such a motion may be filed only in cases pending with the The validity and finality of the default order was upheld by the judgment of
Supreme Court as the court of last resort, which may in its sound discretion the Appellate Court in the injunction case (which passed upon the merits of
either grant or deny the extension requested." (p. 4, emphasis supplied) the issuance of an order of execution pending appeal) by virtue of the
principle of res judicata and the doctrine re the law of the case.
The above new rules are made effective no earlier than June 30, 1986. In
the instant case, respondent Court's decision was received by plaintiffs on There is no question that there were good reasons for the trial court to
April 3, 1986. Plaintiffs or petitioners herein filed on April 15, 1986 a motion issue the order of execution pending appeal. The order categorically stated
for extension of 30 days from April 18, 1986 or up to May 18, 1986 to file a that there was a need for the closure and stoppage of the operation of
motion for reconsideration. On May 10, 1986, plaintiffs filed their motion for defendant's (Daytona Construction) cement batching plant because it posed
reconsideration. Plaintiffs' motion for extension of time was not intended for "a great menace to the neighborhood both in point of health and property."
delay but upon showing of good cause, to wit: "for lack of material time due The trial court thus stated:
to heavy pressure of work on the part of petitioners' counsel presently
taking charge thereof, what is more the counsel handling this case was "From the uncontroverted evidence presented by the plaintiffs, there is
doing so for the first time in substitution of Atty. Emmanuel Pelaez, who hardly any question that the cement dust coming from the batching plant of
was recently appointed Philippine Ambassador to the U.S." the defendant corporation is injurious to the health of the plaintiffs and
BIA | Environmental Law | 61
other residents in the area. The noise, the vibration, the smoke and the
odor generated by the day and night operation of the plant must indeed be "Sacha del Rosario testified that her house has to close its windows most of
causing them serious discomfort and untold miseries. Its operation therefore the time because of the dust pollution and her precious plants have been
violates certain rights of the plaintiffs and causes them damage. It is thus a destroyed by the cement powder coming from the constant traffic of trucks
nuisance and its abatement justified." (Decision, p. 5; p. 90, Rollo). and other vehicles carrying the product of the batching plant passing
through her area. She claims damages amounting to more than
after taking into consideration evidence presented by plaintiffs (petitioners P100,000.00.
herein) as follows:
"The evidence shows that the defendant is a domestic corporation duly "A chemical engineer, Alexander Cruz, said that the effluence deposited on
organized and existing under the laws of the Philippines with business the properties of Ernesto Ll. Rodriguez III and Zenaida Rodriguez has a very
address of 252 Don Mariano Marcos Avenue (actually South Zuzuarregui high PH, 11.8, and the soil is highly alkaline and cannot support plant life;
Avenue), Quezon City. It was issued by the Quezon City government a that pollution coming from the batching plant can cause stomach disorder
business permit (Exhibit B) for the manufacture of road and building and skin problems; that the place of Ernesto Ll. Rodriguez III is bare of
concrete materials such as concrete aggregates, with cement batching grass and the trees are dying, (Exhibits J, J-1 and J-2) and that there is also
plant. Among the conditions set forth in the permit are that the said a high degree of calcium on the property in question.
batching plant shall (1) institute measures to prevent dust emission during
the manual charging of cement from bags to the receiving hopper of the "Witness Guido L. Quiban, a civil engineer, testified that on the basis of his
bucket elevator of the batching plant; (2) remove all sediment deposit in the examination of the property of Rodriguez III affected by the pollution, it
settling of tank for process water and proper maintenance should be would cost at least P250,000.00 for the excavation filling, concreting of
observed at all times. While the original permit issued to the defendant canal and rental of equipment to repair it or restore it to its status quo ante.
stated that its operation at the place shall `not (be) beyond Dec. 31, 1979'
(Exhibit B-2), it was somehow allowed to operate way beyond said period. "Lawyer Ernesto R. Rodriguez, Jr., the 70-year old father of both Ernesto III
"Plaintiff Ernesto Ll. Rodriguez III testified that he has three parcels of and Zenaida Z. Rodriguez, submitted a medical certificate that he had
residential lots adjacent to the Daytona compound. He informed the Court recently been taken ill with acute bronchial asthma, hypertension and
that his property, with an area of 8,892 square meters has been over-run by atherosclerotic heart disease. (Exhibits L, L-1 to L-4). His physician, a
effluence from the cement batching plant of the defendant. The sediment specialist graduate from the University of London and connected with
settled on the lots and all forms of vegetation have died as a result, and the various hospitals in Manila, advised him against exposure to environmental
land tremendously diminished in value. His three lots are located in a prime allegens, specifically cement dust and pollution. He also submitted as
residential zone and each square meter in the area is easily valued at exhibits various newspaper clippings (Exhibit M) and excerpts from a book
P500.00. While he would like to sell at least a part of his property, he finds (Exhibits N and N-1) showing that pollution can irritate the eye, sear lungs
no buyer because of its condition. It would cost him no less than and destroy vegetation, raise blood pressure, increase cholesterol levels,
P250,000.00 to be able to repair the damage done to his property, and interfere with sleep, cause ulcer, trigger heart attacks and the like; that it is
since its present condition has been existing during the last five years, he the common denominator of respiratory diseases, especially asthma chronic
claimed that the interest on his loss would be about P5,000.00. He has bronchitis, bronchial asthma and emphysema; and that polluted air can
agreed to his counsel's fee of P200,000.00. Zenaida Rodriguez testified that develop abnormalities in lung function.
she owns a lot with an area of 1,500 square meters. Two thirds of this area
has been damaged by the cement dust, emanating from the defendant's "Dr. Raul I. del Rosario, a neighboring physician, testified that he had
cement batching plant. The continuous flow of cement dust into her treated several patients who traced their sickness to the pollution caused by
property affected her deep well, their source of drinking water, and most of defendant Daytona batching plant. He said that cement dust produces
their fruit-bearing and ornamental trees dried up. She also said that she has broncho-pulmonary obstructive diseases, broncho fibriotic lesions which
had sleepless nights and became nervous as a result of the batching plant may produce cardio pulmonary complications, and the people living in the
operation. Even her previous pedigreed poodles have been afflicted by all neighborhood of the batching plant are the most susceptible to these
sorts of illnesses, many of them dying in the process. She claimed to have diseases. He reported many cases of bronchial asthma in both children and
sustained damages amounting to P370,000.00. adult who live in the vicinity of the cement batching plant and these cases
BIA | Environmental Law | 62
have been intermittently admitted and discharged from the Quirino Labor the corporate secretary instead of the counsel handling the case." (Decision
Hospital where he presently works as a resident physician. He had intended in Injunction case, p. 16; emphasis supplied)
to open a medical clinic at his residence but he could not do so because the
washings from the cement mixers are dumped on the access road in front With reference to defendant's allegation that it thought that the period
of his house and when these washings are dried up they pollute the within which to answer (after its motion to dismiss had been denied) had
neighborhood, rendering his intended medical clinic unfit and impractical for been suspended by its having filed a petition for review before the Supreme
the treatment of patients, particularly those suffering from respiratory Court, same is without merit. The circumstances of the case point to a
ailments. deliberate desire to delay: the corporation, governed as it is by
knowledgeable business executives, should have taken steps to prevent its
"Another lawyer, Eliseo Alampay, Jr., who likewise resides a few meters being declared in default. The corporation waited six (6) months before
away from the site of the Daytona batching plant, testified that the said verifying the status of the case: in the meantime it had been declared in
plant is certainly injurious to the health; that the cement dust are agents of default, a judgment by default had been rendered against it, execution was
lung ailments, impair the growth of plants and even kill the birds in their already pending before it woke up to file the case at hand. Cdpr
cages; that it is a demonstrable nuisance because its uncontrolled engine
noise and nightlong pounding prevent the neighborhood from being able to We agree with Justice Luis A. Javellana in his concurring opinion in the
sleep soundly and peacefully. He told the court that there was a time when injunction case before the appellate court, thus: "Petitioner's conduct here
he felt like organizing the whole neighborhood into a demolition team to appears to me to be tainted with fraud and intended simply to delay the
forcibly dismantle the entire Daytona plant because `the authorities disposition of the case. When its motion to dismiss the complaint was
concerned apparently have chosen to close their eyes and leave us to our denied, and its motion for reconsideration of that denial was, likewise,
miserable plight.' He said that the homes in the community all look dirty and denied, it manifested its intention to elevate these orders to the Supreme
dusty because of the pollution that the batching plant of the defendant Court on a petition for review. Yet, it did nothing to this end. The purpose
causes." (Decision in Injunction Case, AC-G.R. No. 14602-SP, pp. 10-14). of the ploy is obvious. Once it had announced its intention to go to the
Supreme Court it effectively suspended the proceedings in the trial court,
Anent the default order, the appellate court in the injunction case said: or, at least, that was the effect. This enabled it to continue with its
"From the foregoing, it appears that petitioner was recreant in failing to file operations and it would have done so indefinitely if it had not been declared
an answer after respondent judge denied its motion to dismiss the in default and private respondents allowed to present their evidence. It is
complaint. The motion to dismiss was denied in the order of the lower court quite apparent that petitioner really had no intention of elevating the case
under date of April 3, 1981, a copy of which was received by petitioner on to the Supreme Court, otherwise, it would not have allowed the extended
April 23, 1981. A motion for reconsideration of the order of denial filed by period given to it by the Supreme Court to lapse without filing the petition.
petitioner on May 7, 1981 was denied by said court on July 7, 1981. Instead Or, if it was in good faith, then, it should have in formed the trial court that
of filing an answer promptly, petitioner filed with the Supreme Court a it was no longer pursuing its remedy in the Supreme Court, after it had
motion for extension of time to file a petition for review, but it never filed decided that it was no longer availing of such remedy. Instead, it concealed
one, prompting the Supreme Court to issue a resolution dated October 5, this fact from the trial court and the adverse party, and allowed matters to
1981 informing the parties that no petition for review was filed within the take their course. It was not until it received the adverse decision that it
period that expired on August 15, 1981. Inspite of the Supreme Court's frantically sought to set things right. I do not think that petitioner deserves
resolution, petitioner still failed to file any answer or pleading to arrest the any consideration for trifling with the administration of justice." (pp. 3-4;
running of the prescriptive period. It was only on July 23, 1982, when emphasis supplied)
petitioner filed its Petition for Relief which was nine (9) months after the
Supreme Court's resolution was issued. Petitioner's assertion in its Petition WHEREFORE, the assailed decision and resolution are hereby SET ASIDE,
for Relief that the failure to file the answer was caused by `the unforseen and a new judgment is hereby rendered REINSTATING the decision of the
sickness of its corporate secretary who has custody of the records necessary trial court with the modification that all awards for nominal damages are
for the preparation of its defense' cannot be taken without much doubt and hereby eliminated. Costs against private respondent. SO ORDERED.
hesitation. Petitioner did not even point out who was the supposed
corporate secretary or explain why the records were in the possession of
BIA | Environmental Law | 63
REPUBLIC ACT NO. 6969 b. To monitor and regulate the importation, manufacture, processing,
[AN ACT TO CONTROL TOXIC SUBSTANCES AND HAZARDOUS AND handling, storage, transportation, sale, distribution, use and disposal of
NUCLEAR WASTES PROVIDING PENALTIES FOR VIOLATIONS chemical substances and mixtures that present unreasonable risk or injury
THEREOF, to health or to the environment in accordance with national policies and
AND FOR OTHER PURPOSES] international commitments;

Section 1 c. To inform and educate the populace regarding the hazards and risks
Short Title attendant to the manufacture, handling, storage, transportation, processing,
distribution, use and disposal of toxic chemicals and other substances and
This Act shall be known as the "Toxic Substances and Hazardous and mixtures; and
Nuclear Wastes Control Act of 1990."
d. To prevent the entry, even in transit, as well as the keeping or storage
Section 2 and disposal of hazardous and nuclear wastes into the country for whatever
Declaration of Policy purpose.

It is the policy of the State to regulate, restrict or prohibit the importation, Section 5
manufacture, processing, sale, distribution, use and disposal of chemical Definition
substances and mixtures that present unreasonable risk and/or injury to
health or the environment; to prohibit the entry, even in transit, of As used in this Act:
hazardous and nuclear wastes and their disposal into the Philippine a. Chemical substance means any organic or inorganic substance of a
territorial limits for whatever purpose; and to provide advancement and particular molecular identity, including:
facilitate research and studies on toxic chemicals. 1. Any combination of such substances occurring in whole or in part as a
result of chemical reaction or occurring in nature; and
Section 3
Scope 2. Any element of uncombined chemical.

This Act shall cover the importation, manufacture, processing, handling, b. Chemical mixture means any combination of two or more chemical
storage, transportation, sale, distribution, use and disposal of all substances if the combination does not occur in nature and is not, in whole
unregulated chemical substances and mixtures in the Philippines, including or in part, the result of a chemical reaction, if none of the chemical
the entry, even in transit, as well as the keeping or storage and disposal of substances compromising the combination is a new chemical substance and
hazardous and nuclear wastes into the country for whatever purpose. if the combination could have been manufactured for commercial purposes
without a chemical reaction at the time the chemical substances
Section 4 compromising the combination were combined. This shall include
Objectives nonbiodegradable mixtures.

The objectives of this Act are: c. Process means the preparation of a chemical substance or mixture after
a. To keep an inventory of chemicals that are presently being imported, its manufacture for commercial distribution:
manufactured, or used, indicating among others, their existing and possible 1. In the same form or physical state or in a different form or physical state
uses, test data, names of firms manufacturing or using them, and such from that which it was received by the person so preparing such substance
other information as may be considered relevant to the protection of health or mixture; or
and the environment;
2. As part of an article containing a chemical substance or mixture.

BIA | Environmental Law | 64


d. Importation means the entry of a product or substance into the
Philippines (through the seaports or airports of entry) after having been The Department of Environment and Natural Resources shall be the
properly cleared through or still remaining under customs control, the implementing agency tasked with the following functions, powers, and
product or substance of which is intended for direct consumption, responsibilities.
merchandising, warehousing, or for further processing. a. To keep an updated inventory of chemicals that are presently being
manufactured or used, indicating among others, their existing and possible
e. Manufacture means the mechanical or chemical transformation of uses, quantity, test data, names of firms manufacturing or using them, and
substances into new products whether work is performed by power-driven such other information as the Secretary may consider relevant to the
machines or by hand, whether it is done in a factory or in the worker’s protection of health and the environment;
home and whether the products are sold at wholesale or retail.
b. To require chemical substances and mixtures that present unreasonable
f. Unreasonable risk means expected frequency of undesirable effects or risk or injury to health or to the environment to be tested before they are
adverse responses arising from a given exposure to a substance. manufactured or imported for the first time;

g. Hazardous substances are substances which present either: c. To require chemical substances and mixtures which are presently being
1. short-term acute hazards, such as acute toxicity by ingestion, inhalation manufactured or processed to be tested if there is a reason to believe that
or skin absorption, corrosivity or other skin or eye contact hazard or the risk they pose unreasonable risk or injury to health or the environment;
of fire or explosion; or
d. To evaluate the characteristics of chemicals that have been tested to
2. long-term environmental hazards, including chronic toxicity upon determine their toxicity and the extent of their effects on health and the
repeated exposure, carcinogenicity (which may in some cases result from environment;
acute exposure but with a long latent period), resistance to detoxification
process such as biodegradation, the potential to pollute underground or e. To enter into contracts and make grants for research, development, and
surface waters, or aesthetically objectionable properties such as offensive monitoring of chemical substances and mixtures;
odors.
f. To conduct inspection of any establishment in which chemicals are
h. Hazardous wastes are hereby defined as substances that are without any manufactured, processed, stored or held before or after the commercial
safe commercial, industrial, agricultural or economic usage and are shipped, distribution and to make recommendations to the proper authorities
transported or brought from the country of origin for dumping or disposal concerned,
into or in transit through any part of the territory of the Philippines.
Hazardous wastes shall also refer to by-products, side-products, process g. To confiscate or impound chemicals found not falling within the standard
residues, spent reaction media, contaminated plant or equipment or other set by the rules and regulations and the said acts cannot be enjoined except
substances from manufacturing operations, and as consumer discards of after the chemicals have been impounded;
manufactured products.
h. To monitor and prevent the entry, even in transit, of hazardous and
i. Nuclear wastes are hazardous wastes made radioactive by exposure to nuclear wastes and their disposal into the country;
the radiation incidental to the production or utilization of nuclear fuels but
does not include nuclear fuel, or radioisotopes which have reached the final i. To subpoena witnesses and documents and to require other information
stage of fabrication so as to be usable for any scientific, medical, if necessary to carry out the provisions of this Act;
agricultural, commercial, or industrial purpose.
j. To call on any department, bureau, office, agency, state university or
Section 6 college, and other instrumentalities of the Government for assistance in the
Functions, Powers and Responsibilities of the Department of Environment form of personnel, facilities, and other resources as the need arises in the
and Natural Resources discharge of its functions;
BIA | Environmental Law | 65
c. To conduct preliminary evaluation of the characteristics of chemical
k. To disseminate information and conduct educational awareness substances and mixtures to determine their toxicity and effects on health
campaign on the effects of chemical substances, mixtures and wastes on and the environment and make the necessary recommendations to the
health and environment; and Department of Environment and Natural Resources; and

l. To exercise such powers and perform such other functions as may be d. To perform such other functions as the Secretary of Environment and
necessary to carry out its duties and responsibilities under this Act. Natural Resources may, from time to time, require.

Section 7 Section 8
Inter-Agency Technical Advisory Council Pre-Manufacture and Pre-Importation Requirements

There is hereby created an Inter-Agency Technical Advisory Council Before any new chemical substance or mixture can be manufactured,
attached to the Department of Environment and Natural Resources which processed or imported for the first time as determined by the Department of
shall be composed of the following officials or their duly authorized Environment and Natural Resources, the manufacturer, processor or
representatives: importer shall submit the following information: the name of the chemical
substance or mixture; its chemical identity and molecular structure;
Secretary of Environment and Chairman proposed categories of use; an estimate of the amount to be manufactured,
Natural Resources processed or imported; processing and disposal thereof; and any test data
Secretary of Health Member related to health and environmental effects which the manufacturer,
Director of the Philippine Nuclear Member processor or importer has.
Research and Institute
Secretary of Trade and Industry Member Section 9
Secretary of Science and Technology Member Chemicals Subject to Testing
Secretary of National Defense Member
Secretary of Foreign Affairs Member Testing shall be required in all cases where:
Secretary of Labor and Employment Member a. There is a reason to believe that the chemical substance or mixture may
Secretary of Finance Member present an unreasonable risk to health or the environment or there may be
Secretary of Agriculture Member substantial human or environmental exposure thereto;
Representative from a non- Member
b. There are insufficient data and experience for determining or predicting
governmental organization on health
the health and environmental effects of the chemical substance or mixture;
and safety
and
The representative from the non-governmental organization shall be
c. The testing of the chemical substance or mixture is necessary to develop
appointed by the President for a term of three (3) years.
such data.
The Council shall have the following functions:
The manufacturers, processors or importers shall shoulder the costs of
a. To assist the Department of Environment and Natural Resources in the
testing the chemical substance or mixture that will be manufactured,
formulation of the pertinent rules and regulations for the effective
processed or imported.
implementation of this Act;
Section 10
b. To assist the Department of Environment and Natural Resources in the
Action by the Secretary of Environment and Natural Resources or His Duly
preparation and updating of the inventory of chemical substances and
Authorized Representative
mixtures that fall within the coverage of this Act;

BIA | Environmental Law | 66


The Secretary of Environment and Natural Resources or his duly authorized the purpose of medical diagnosis or treatment of a person exposed to the
representatives shall, within ninety (90) days from the date of filing of the chemical substance or mixture.
notice of manufacture, processing or importation of a chemical substance or
mixture, decide whether or not to regulate or prohibit its importation, Section 13
manufacture, processing, sale, distribution, use or disposal. The Secretary Prohibited Acts
may, for justifiable reasons, extend the ninety-day pre-manufacture period
within a reasonable time. The following acts and omissions shall be considered unlawful:
a. Knowingly use a chemical substance or mixture which is imported,
Section 11 manufactured, processed or distributed in violation of this Act or
Chemical Substances Exempt implementing rules and regulations or orders;
from Pre-Manufacture Notification
b. Failure or refusal to submit reports, notices or other information, access
The manufacture of the following chemical substances or mixtures shall be to records as required by this Act, or permit inspection of establishment
exempt from pre -manufacture notification: where chemicals are manufactured, processed, stored or otherwise held;
a. Those included in the categories of chemical substances and mixtures
already listed in the inventory of existing chemicals, c. Failure or refusal to comply with the pre-manufacture and pre-
importation requirements; and
b. Those to be produced in small quantities solely for experimental or
research and developmental purposes; d. Cause, aid or facilitate, directly or indirectly, in the storage, importation,
or bringing into Philippine territory, including its maritime economic zones,
c. Chemical substances and mixtures that will not present an unreasonable even in transit, either by means of land, air or sea transportation or
risk to health and the environment; otherwise keeping in storage any amount of hazardous and nuclear wastes
in any part of the Philippines.
d. Chemical substances and mixtures that exist temporarily and which have
no human or environmental exposure such as those which exist as a result Section 14
of chemical reactions in the manufacture or processing of a mixture of Criminal Offenses and Penalties
another chemical substance.
a.
Section 12 1. The penalty of imprisonment of six (6) months and one day to six (6)
Public Access to Records, Reports or Notification years and one day and a fine ranging from Six hundred pesos (P600.00) to
Four thousand pesos (P4,000.00) shall be imposed upon any person who
The public shall have access to records, reports or information concerning shall violate section 13(a) to (c) of this Act and shall not be covered by the
chemical substances and mixtures including safety data submitted, data on Probation Law. If the offender is a foreigner, he or she shall be deported
emission or discharge into the environment, and such documents shall be and barred from any subsequent entry into the Philippines after serving his
available for inspection or reproduction during normal business hours except or her sentence;
that the Department of Environment and Natural Resources may consider a
record, report or information or particular portions thereof confidential and 2. In case any violation of this Act is committed by a partnership,
may not be made public when such would divulge trade secrets, production corporation, association or any juridical person, the partner, president,
or sales figures or methods, production or processes unique to such director or manager who shall consent to or shall knowingly tolerate such
manufacturer, processor or distributor, or would otherwise tend to affect violation shall be directly liable and responsible for the act of the employees
adversely the competitive position of such manufacturer, processor or and shall be criminally liable as a co-principal;
distributor. The Department of Environment and Natural Resources,
however, may release information subject to claim of confidentiality to a 3. In case the offender is a government official or employee, he or she
medical research or scientific institution where the information is needed for shall, in addition to the above penalties, be deemed automatically dismissed
BIA | Environmental Law | 67
from office and permanently disqualified from holding any elective or accordance with Section 16 of this Act, the Secretary of Environment and
appointive position. Natural Resources is hereby authorized to impose a fine of not less than Ten
b. thousand pesos (P10,000.00), but not more than Fifty thousand pesos
1. The penalty of imprisonment of twelve (12) years and one day to twenty (P50,000.00) upon any person or entity found guilty thereof. The
(20) years, shall be imposed upon any person who shall violate section administrative fines imposed and collected by the Department of
13(d) of this Act. If the offender is a foreigner, he or she shall be deported Environment and Natural Resources shall accrue to a special fund to be
and barred from any subsequent entry into the Philippines after serving his administered by the Department exclusively for projects and research
or her sentence; activities relative to toxic substances and mixtures.

2. In case of corporations or other associations, the above penalty shall be Section 16


imposed upon the managing partner, president or chief executive in Promulgation of Rules and Regulations
addition to an exemplary damage of at least Five hundred thousand pesos
(P500,000.00). If it is a foreign firm, the director and all officers of such The Department of Environment and Natural Resources, in coordination
foreign firm shall be barred from entry into the Philippines, in addition to the with the member agencies of the Inter-Agency Technical Advisory Council,
cancellation of its license to do business in the Philippines; shall prepare and publish the rules and regulations implementing this Act
within six months from the date of its effectivity.
3. In case the offender is a government official or employee, he or she
shall in addition to the above penalties be deemed automatically dismissed Section 17
from office and permanently disqualified from holding any elective or Appropriations
appointive position.
c. Every penalty imposed for the unlawful importation, entry, transport, Such amounts as may be necessary to implement the provisions of this Act
manufacture, processing, sale or distribution of chemical substances or is hereby annually appropriated and included in the budget of the
mixtures into or within the Philippines shall carry with it the confiscation and Department of Environment and Natural Resources.
forfeiture in favor of the Government of the proceeds of the unlawful act
and instruments, tools, or other improvements including vehicles, sea Section 18
vessels, and aircrafts used in or with which the offense was committed. Separability Clause
Chemical substances so confiscated and forfeited by the Government at its
option shall be turned over to the Department of Environment and Natural If any provision of this Act is declared void or unconstitutional, the
Resources for safekeeping and proper disposal. remaining provisions thereof not affected thereby shall remain in full force
and effect.
d. The person or firm responsible or connected with the bringing or
importation into the country of hazardous or nuclear wastes shall be under Section 19
obligation to transport or send back said prohibited wastes; Repealing Clause

Any and all means of transportation, including all facilities and All laws, presidential decrees, executive orders and issuances, and rules and
appurtenances that may have been used in transporting to or in the storage regulations which are inconsistent with this Act are hereby repealed or
in the Philippines of any significant amount of hazardous or nuclear wastes modified accordingly.
shall at the option of the government be forfeited in its favor.
Section 20
Section 15 Effectivity
Administrative Fines
This Act shall take effect after fifteen (15) days following its publication in
In all cases of violations of this Act, including violations of implementing the Official Gazette or in any newspaper of general circulation.
rules and regulations which have been duly promulgated and published in
BIA | Environmental Law | 68
PRESIDENTIAL DECREE NO. 705 b. Land classification and survey shall be systematized and hastened;
[As amended by P.D. No. 1559, P.D. No. 865, P.D. No. 1775, Batas c. The establishment of wood-processing plants shall be encouraged and
Pambansa (B.P.) Blg. 701, B.P. Blg. 83, Republic Act (R.A.) No. rationalized; and
7161, Executive Order (E.O.) No. 277 and 83 O.G. No. 31] d. The protection, development and rehabilitation of forest lands shall be
emphasized so as to ensure their continuity in productive condition.
REVISED FORESTRY CODE
[REVISING PRESIDENTIAL DECREE NO. 389, Section 3
OTHERWISE KNOWN AS Definitions
THE FORESTRY REFORM CODE OF THE PHILIPPINES] a. Public forest is the mass of lands of the public domain which has not
been the subject of the present system of classification for the
WHEREAS, proper classification, management and utilization of the lands of determination of which lands are needed for forest purposes and which are
the public domain to maximize their productivity to meet the demands of not.
our increasing population is urgently needed; b. Permanent forest or forest reserves refer to those lands of the public
domain which have been the subject of the present system of classification
WHEREAS, to achieve the above purpose, it is necessary to reassess the and determined to be needed for forest purposes.
multiple uses of forest lands and resources before allowing any utilization c. Alienable and disposable lands refer to those lands of the public domain
thereof to optimize the benefits that can be derived therefrom; which have been the subject of the present system of classification and
declared as not needed for forest purposes.
WHEREAS, it is also imperative to place emphasis not only on the utilization d. Forest lands include the public forest, the permanent forest or forest
thereof but more so on the protection, rehabilitation and development of reserves, and forest reservations.
forest lands, in order to ensure the continuity of their productive condition; e. Grazing land refers to that portion of the public domain which has been
set aside, in view of the suitability of its topography and vegetation, for the
WHEREAS, the present laws and regulations governing forest lands are not raising of livestock.
responsive enough to support re-oriented government programs, projects f. Mineral lands refer to those lands of the public domain which have been
and efforts on the proper classification and delimitation of the lands of the classified as such by the Secretary of Natural Resources in accordance with
public domain, and the management, utilization, protection, rehabilitation, prescribed and approved criteria, guidelines and procedure.
and development of forest lands; g. Forest reservations refer to forest lands which have been reserved by
the President of the Philippines for any specific purpose or purposes.
NOW, THEREFORE, I, Ferdinand E. Marcos, President of the Philippines, by h. National park refers to a forest land reservation essentially of primitive or
virtue of the powers in me vested by the Constitution, do hereby revise wilderness character which has been withdrawn from settlement or
Presidential Decree No. 389 to read as follows:chanroblesvirtuallawlibrary occupancy and set aside as such exclusively to preserve the scenery, the
natural and historic objects and the wild animals or plants therein, and to
Section 1 provide enjoyment of these features in such a manner as will leave them
Title of this Code unimpaired for future generations.
This decree shall be known as the "Revised Forestry Code of the i. Game refuge or bird sanctuary refers to a forest land designated for the
Philippines." protection of game animals, birds and fishes and closed to hunting and
fishing in order that the excess population may flow and restock
Section 2 surrounding areas.
Policies j. Marine park refers to any public offshore area delimited as habitat of rare
The State hereby adopts the following policies:chanroblesvirtuallawlibrary and unique species of marine flora and fauna.
a. The multiple uses of forest lands shall be oriented to the development k. Seashore park refers to any public shore area delimited for outdoor
and progress requirements of the country, the advancement of science and recreation, sports fishing, water skiing and related healthful activities.
technology, and the public welfare;

BIA | Environmental Law | 69


l. Watershed reservation is a forest land reservation established to protect harvest or use. This is generally applied to the commercial timber resources
or improve the conditions of the water yield thereof or reduce and is also applicable to the water, grass, wildlife, and other renewable
sedimentation. resources of the forest.
m. Watershed is a land area drained by a stream or fixed body of water bb. Processing plant is any mechanical setup, device, machine or
and its tributaries having a common outlet for surface run-off. combination of machines used for the conversion of logs and other forest
n. Critical watershed is a drainage area of a river system supporting raw materials into lumber, veneer, plywood, fiberboard, blackboard, paper
existing and proposed hydro-electric power, irrigation works or domestic board, pulp, paper or other finished wood products.
water facilities needing immediate protection or rehabilitation. cc. Lease is a privilege granted by the State to a person to occupy and
o. Mangrove is a term applied to the type of forest occurring on tidal flat possess, in consideration of specified rental, any forest land of the public
along the sea coast, extending along stream where the water is brackish. domain in order to undertake any authorized activity therein.
p. Kaingin refers to a portion of the forest land which is subjected to dd. License is a privilege granted by the State to a person to utilize forest
shifting and/or permanent slash-and-burn cultivation. resources within any forest land, without any right of occupation and
q. Forest product means, timber, pulpwood, firewood, bark, tree top, resin, possession over the same, to the exclusion of others, or establish and
gum, wood, oil, honey beeswax, nipa, rattan, or other forest growth such as operate a wood-processing plant, or conduct any activity involving the
grass, shrub, and flowering plant, the associated water, fish, game, scenic, utilization of any forest resources.
historical, recreational and geologic resources in forest lands. ee. License agreement is a privilege granted by the State to a person to
r. Dipterocarp forest is a forest dominated by trees of the dipterocarp utilize forest resources within any forest land with the right of possession
species, such as red lauan, tanguile, tiaong, white lauan, almon, bagtikan and occupation thereof to the exclusion of others, except the government,
and mayapis of the Philippine mahogany, group, apitong and the yakals. but with the corresponding obligation to develop, protect and rehabilitate
s. Pine forest is a forest type predominantly of pine trees. the same in accordance with the terms and conditions set forth in said
t. Industrial tree plantation refers to any forest land extensively planted to agreement.
tree crops primarily to supply raw material requirements of existing or ff. Permit is short-term privilege or authority granted by the State to a
proposed wood processing plants and related industries. person to utilize any limited forest resources or undertake a limited activity
u. Tree farm refers to any small forest land or tract of land purposely within any forest land without any right to occupation and possession
planted to tree crops. therein.
v. Agro-forestry is a sustainable management for land which increases gg. Annual allowable cut is the volume of materials, whether of wood or
overall production, combines agricultural crops, tree and forest plants other forest products, that is authorized to be cut yearly from a forest.
and/or animals simultaneously or sequentially, and applies management hh. Cutting cycle is the number of years between two major harvests in the
practices which are compatible with the cultural patterns of the local same working unit and/or region.
population. ii. Forest ecosystem refers to the living and non-living components of a
w. Multiple-use is the harmonized utilization of the land, soil, water, forest and their inter-action.
wildlife, recreation value, grass and timber of forest lands. jj. Silviculture is the establishment, development, reproduction and care of
x. Selective logging is the systematic removal of the mature, over-mature forest trees.
and defective trees in such manner as to leave adequate number and kk. Rationalization is the organization of a business or industry using
volume of healthy residual trees of the desired species necessary to assure management principles, systems and procedures to attain stability,
a future crop of timber, and forest cover for the protection and conservation efficiency and profitability of operation.
of soil; water and wildlife. ll. Forest officer means any official or employee of the Bureau who has
y. Seed tree system is a silvicultural system characterized by partial been appointed or delegated by law or by competent authority to execute,
clearcutting leaving seed trees to regenerate the area. implement or enforce the provisions of this Code, other related laws, as well
z. Healthy residual refers to a sound or slightly injured tree of the as their implementing regulations.
commercial species left after logging. mm. Private right means or refers to titled rights of ownership under
aa. Sustained-yield management implies continuous or periodic production existing laws, and in the case of national minority to rights or possession
of forest products in a working unit for the purpose of achieving at the existing at the time a license is granted under this Code, which possession
earliest practicable time an approximate balance between growth and may include places of abode and worship, burial grounds, and old clearings,
BIA | Environmental Law | 70
but exclude productive forest inclusive of logged-over areas, commercial The Bureau shall be headed by a Director who shall be assisted by one or
forests and established plantations of forest trees and trees of economic more Assistant Directors. The Director and Assistant Directors shall be
values. appointed by the President.
nn. Person includes natural as well as juridical person. [As amended by PD No person shall be appointed Director or Assistant Director of the Bureau
No. 1559] unless he is a natural born citizen of the Philippines, at least 30 years of
age, a holder of at least a Bachelor’s Degree in Forestry or its equivalent,
CHAPTER I and a registered forester.
ORGANIZATION AND JURISDICTION OF THE BUREAU
Section 7
Section 4 Supervision and Control
Creation of and Merger of All Forestry Agencies Into, the Bureau of Forest The Bureau shall be directly under the control and supervision of the
Development Secretary of the Department of Natural Resources, hereinafter referred to
For the purpose of implementing the provisions of this Code, the Bureau of as the Department Head.
Forestry, the Reforestation Administration, the Southern Cebu Reforestation
Development Project, and the Parks and Wildlife Office, including applicable Section 8
appropriations, records, equipment, property and such personnel as may be Review
necessary, are hereby merged into single agency to be known as the All actions and decisions of the Director are subject to review, motu proprio
Bureau of Forest Development, hereinafter referred to as the Bureau. or upon appeal of any person aggrieved thereby, by the Department Head
whose decision shall be final and executory after the lapse of thirty (30)
Section 5 days from receipt by the aggrieved party of said decision, unless appealed
Jurisdiction of Bureau to the President in accordance with Executive Order No. 19, series of 1966.
The Bureau shall have jurisdiction and authority over all forest land, grazing The Decision of the Department Head may not be reviewed by the courts
lands, and all forest reservations including watershed reservations presently except through a special civil action for certiorari or prohibition.
administered by other government agencies or instrumentalities.
It shall be responsible for the protection, development, management, Section 9
regeneration and reforestation of forest lands; the regulation and Rules and Regulations
supervision of the operation of licensees, lessees and permittees for the The Department Head, upon the recommendation of the Director of Forest
taking or use of forest products therefrom or the occupancy or use thereof; Development, shall promulgate the rules and regulations necessary to
the implementation of multiple use and sustained yield management in implement effectively the provisions of this Code.
forest lands; the protection, development and preservation of national
parks, marine parks, game refuges and wildlife; the implementation of Section 10
measures and programs to prevent kaingin and managed occupancy of Creation of Functional Divisions,
forest and grazing lands; in collaboration with other bureaus, the effective, and Regional and District Offices
efficient and economic classification of lands of the public domain; and the
enforcement of forestry, reforestation, parks, game and wildlife laws, rules All positions in the merged agencies are considered vacant. Present
and regulations. occupants may be appointed in accordance with a staffing pattern or plan or
The Bureau shall regulate the establishment and operation of sawmills, organization to be prepared by the Director and approved by the
veneer and plywood mills and other wood processing plants and conduct Department Head. Any appointee who fails to report for duty in accordance
studies of domestic and world markets of forest products. with the approved plan within thirty (30) days upon receipt of notification
shall be deemed to have declined the appointment, in which case the
Section 6 position may be filed by any other qualified applicant.
Director and Assistant Director
and Their Qualifications For the efficient and effective implementation of the program of the Bureau,
the following divisions and sections are hereby created, to wit:
BIA | Environmental Law | 71
Divisions Sections
Planning and Evaluation Division Program Planning; Performance Section 11
Evaluation; Forest Economics; Manpower and Policy Development
Management Analysis Data & The Bureau shall establish and operate an in-service training center for the
Information purpose of upgrading and training its personnel and new employees.
Administrative Division Personnel; Budget; Accounting; The Bureau shall also set aside adequate funds to enable personnel to
Information; General Services obtain specialized education and training in local or foreign colleges or
Legal Division institutions.
Reforestation and Afforestation Cooperative Planting; Planting Stock There shall be established in the College of Forestry, University of the
Division Production; Plantation Management Philippines at Los Baños, in coordination with the Department of Natural
Timber Management Division Forest Surveys, Data & Mapping; Resources and the wood industry, a Forestry Development Center which
Silviculture; Timber Inventory & shall conduct basic policy researches in forestry policy formulation and
Photo-Interpretation; Timber implementation. To help defray the cost of operating said Center, it is
Management Plans; Land authorized to receive assistance from the wood industry and other sources.
Classification [As amended by PD No. 1559]
Utilization Division Timber Operations; Land Uses;
Utilization Section 12
Forest Protection and Infrastructure Forest Protection; Forest Occupancy Performance Evaluation
Management; Watershed The Bureau shall devise a system, to be approved by the Department Head,
Management; Infrastructure to evaluate the performance of its employees. The system shall measure
Parks, Wildlife Division Parks Management; Recreation accomplishment in quantity and quality of performance as related to the
Management; Wildlife Management; funded program of work assigned to each organizational unit. There shall be
Range Management included a system of periodic inspection of district offices by the regional
offices and the regional and district offices by the Central Office in both
Security and Intelligence Division
functional fields and in the overall assessment of how each administrative
Forest Development Training Center Technical Training; Non-Technical
unit has implemented the laws, regulations, policies, programs, and
Training
practices relevant to such unit. The evaluation system shall provide the
information necessary for annual progress reports and determination of
The Department Head may, upon recommendation of the Director,
employee training, civil service awards and transfer or disciplinary action.
reorganize or create such other divisions, sections or units as may be
deemed necessary and to appoint the personnel there; Provided, That an
CHAPTER II
employee appointed or designated as officer-in-charge of a newly created
CLASSIFICATION AND SURVEY
division, section or unit, or to an existing vacant position with a higher
salary, shall receive, from the date of such appointment or designation until
Section 13
he is replaced or reverted to his original position, the salary corresponding
System of Land Classification
to the position temporarily held by him.
The Department Head shall study, devise, determine and prescribe the
criteria, guidelines and methods for the proper and accurate classification
There shall be created at least eleven regional offices. In each region, there
and survey of all lands of the public domain into agricultural, industrial or
shall be as many forest districts as may be necessary, in accordance with
commercial, residential, resettlement, mineral, timber or forest, and grazing
the extent of forest area, established work loads, need for forest protection,
lands, and into such other classes as now or may hereafter be provided by
fire prevention and other factors, the provisions of any law to the contrary
law, rules and regulations.
notwithstanding: Provided, That the boundaries of such districts shall follow,
In the meantime, the Department Head shall simplify through inter-bureau
whenever possible, natural boundaries of watersheds under the river-basin
action the present system of determining which of the unclassified lands of
concept of management.
the public domain are needed for forest purposes and declare them as
BIA | Environmental Law | 72
permanent forest to form part of the forest reserves. He shall declare those 1. Areas less than 250 hectares which are far from, or are not contiguous
classified and determined not to be needed for forest purposes as alienable with any certified alienable and disposable land;
and disposable lands, the administrative jurisdiction and management of 2. Isolated patches of forest of at least five (5) hectares with rocky terrain,
which shall be transferred to the Bureau of Lands: Provided, That mangrove or which protect a spring for communal use;
and other swamps not needed for shore protection and suitable for fishpond 3. Areas which have already been reforested;
purposes shall be released to, and be placed under the administrative 4. Areas within forest concessions which are timbered or have good
jurisdiction and management of, the Bureau of Fisheries and Aquatic residual stocking to support an existing, or approved to be established,
Resources. Those still to be classified under the present system shall wood processing plant;
continue to remain as part of the public forest. 5. Ridge tops and plateaus regardless of size found within, or surrounded
wholly or partly by, forest lands where headwaters emanate;
Section 14 6. Appropriately located road-rights-of-way;
Existing Pasture Leases in Forest Lands 7. Twenty-meter strips of land along the edge of the normal high waterline
Forest lands which are not reservations and which are the subject of of rivers and streams with channels of at least five (5) meters wide;
pasture leases shall be classified as grazing lands and areas covered by 8. Strips of mangrove or swamplands at least twenty (20) meters wide,
pasture permits shall remain forest lands until otherwise classified under the along shorelines facing oceans, lakes, and other bodies of water, and strips
criteria, guidelines and methods of classification to be prescribed by the of land at least twenty (20) meters wide facing lakes;
Department Head: Provided, That the administration, management and 9. Areas needed for other purposes, such as national parks, national
disposition of grazing lands shall remain under the Bureau. [As amended by historical sites, game refuges and wildlife sanctuaries, forest station sites,
PD No. 1559] and others of public interest; and
10. Areas previously proclaimed by the President as forest reserves,
Section 15 national parks, game refuge, bird sanctuaries, national shrines, national
Topography historic sites:chanroblesvirtuallawlibrary
No land of the public domain eighteen per cent (18%) in slope or over shall Provided, That in case an area falling under any of the foregoing categories
be classified as alienable and disposable, nor any forest land fifty per cent shall have been titled in favor of any person, steps shall be taken, if public
(50%) in slope or over, as grazing land. interest so requires, to have said title canceled or amended, or the titled
Lands eighteen percent (18%) in slope or over which have already been area expropriated.cralaw.
declared as alienable and disposable shall be reverted to the classification of
forest lands by the Department Head, to form part of the forest reserves, Section 17
unless they are already covered by existing titles approved public land Establishment of Boundaries of Forest Lands
application, or actually occupied openly, continuously, adversely and publicly All boundaries between permanent forests and alienable or disposable lands
for a period of not less than thirty (30) years as of the effectivity of this shall be clearly marked and maintained on the ground, with infrastructure or
Code, where the occupant is qualified for a free patent under the Public roads, or concrete monuments at intervals of not more than five hundred
Land Act: Provided, That said lands, which are not yet part of a well- (500) meters in accordance with established procedures and standards, or
established communities, shall be kept in a vegetative condition sufficient to any other visible and practicable signs to insure protection of the forest.
prevent erosion and adverse effects on the lowlands and streams: Provided, In all cases of boundary conflicts, reference shall be made to the Philippine
further, That when public interest so requires, steps shall be taken to Coast and Geodetic Survey Topo map. [As amended by PD No. 1559]
expropriate, cancel defective titles, reject public land application, or eject
occupants thereof. Section 18
Reservations in Forest Lands and Off-Shore Areas
Section 16 The President of the Philippines may establish within any lands of the public
Areas Needed for Forest Purposes domain, forest reserve and forest reservation for the national park system,
The following lands, even if they are below eighteen percent (18%) in for preservation as critical watersheds, or for any other purpose, and modify
slope, are needed for forest purposes, and may not, therefore, be classified boundaries of existing ones. The Department Head may reserve and
as alienable and disposable land, to wit:chanroblesvirtuallawlibrary
BIA | Environmental Law | 73
establish any portion of the public forest or forest reserve as site or limitation or such condition as are prescribed by the Department of Natural
experimental forest for use of the Forest Research Institute. Resources in daily issued regulations. [As amended by PD No. 1559]
When public interest so requires, any off-shore area needed for the
preservation and protection of its educational, scientific, historical, Section 21
ecological and recreational values including the marine life found therein, Sustained Yield
shall be established as marine parks. All measures shall be taken to achieve an approximate balance between
growth and harvest or use of forest products in forest lands.
CHAPTER III
UTILIZATION AND MANAGEMENT A.
Timber
Section 19
Multiple Use Section 22
The numerous beneficial uses of the timber, land, soil, water, wildlife, grass Silvicultural and Harvesting Systems
and recreation or aesthetic value of forest lands and grazing lands shall be In any logging operations in production forests within forest lands, the
evaluated and weighted before allowing their utilization, exploitation, proper silvicultural and harvesting system that will promote optimum
occupation or possession thereof, or the conduct of any activity therein. sustained yield shall be practiced, to wit:chanroblesvirtuallawlibrary
Only the utilization, exploitation, occupation or possession of any forest a. For dipterocarp forest, selective logging with enrichment or supplemental
lands and grazing lands, or any activity therein, involving one or more of its planting when necessary.
resources, which will produce the optimum benefits to the development and b. For pine or mangrove forest, the seed tree system with planting when
progress of the country, and the public welfare, without impairment or with necessary: Provided, That subject to the approval of the Department Head,
the least injury to its resources, shall be allowed. upon recommendation of the Director, any silvicultural and harvesting
All forest reservations may be open to development or uses not inconsistent system that may be found suitable as a result of research may be adopted:
with the principal objectives of the reservation; Provided, That critical Provided, further, That no authorized person shall cut, harvest or gather any
watersheds, national parks and established experimental forests shall not be timber, pulp-wood, or other products of logging unless he plants three times
subject to commercial logging or grazing operations, and game refuges, bird of the same variety for every tree cut or destroyed by such logging or
sanctuaries, marine and seashore parks shall not be subject to hunting or removal of logs. Any violation of this provision shall be sufficient ground for
fishing and other activities of commercial nature. [As amended by PD No. the immediate cancellation of the license, agreement, lease or permit. [As
1559] amended by PD No. 1559]

Section 20 Section 23
License Agreement, License, Lease or Permit Timber Inventory
No person may utilize, exploit, occupy, possess or conduct any activity The Bureau shall conduct a program of progressive inventories of the
within any forest and grazing land, or establish, install, add and operate any harvestable timber and young trees in all forest lands, whether covered by
wood or forest products processing plant, unless he had been authorized to any license agreement, license, lease or permit, or not, until a one hundred
do under a license agreement, license, lease or permit: Provided, That when percent (100%) timber inventory thereon has been achieved.
the national interest so requires, the President may amend, modify, replace,
or rescind any contract, concession, permit, license, or any other form of Section 24
privilege granted herein: Provided, further, That upon the recommendation Required Inventory Prior to
of the appropriate government agency, the President may, pending the Timber Utilization in Forest Lands
conduct of appropriate hearing, order the summary suspension of any such No harvest of timber in any forest land shall be allowed unless it has been
contract, concession, license, permit, lease or privilege granted under this the subject of at least a five per cent (5%) timber inventory, or any
decree for violation of any of the conditions therein such as those pertaining statistically sound timber estimate, made not earlier than five (5) years prior
but not limited to reforestation, pollution, environment protection, export to the issuance of a license agreement or license allowing such utilization.

BIA | Environmental Law | 74


Section 25 utilized without leaving any logged-over area capable of commercial
Cutting Cycle utilization.
The Bureau shall apply scientific cutting cycle and rotation in all forest The maximum period of any privilege to harvest timber is twenty-five (25)
lands, giving particular consideration to the age, volume and kind of healthy years, renewable for a period, not exceeding twenty-five (25) years,
residual trees which may be left undisturbed and undamaged for future necessary to utilize all the remaining commercial quantity or harvestable
harvest and forest cover in dipterocarp area, and seed trees and timber either from the unlogged or logged-over area.
reproduction in pine area. It shall be a condition for the continued privilege to harvest timber under
any license or license agreement that the licensee shall reforest all the areas
Section 26 which shall be determined by the Bureau.
Annual Allowable Cut
The annual allowable cut or harvest of any particular forest land under a Section 28
license agreement, license, lease or permit shall be determined on the basis Size of Forest Concessions
of the size of the area, the volume and kind of harvestable timber or forest Forest lands shall not be held in perpetuity.
products and healthy residuals, seed trees and reproduction found therein, The size of the forest lands which may be the subject of timber utilization
and the established cutting cycle and rotation thereof. shall be limited to that which a person may effectively utilize and develop
No person shall cut, harvest and gather any particular timber, pulpwood, for a period of fifty (50) years, considering the cutting cycle, the past
firewood and other forest products unless he has been authorized under performance of the applicant and his capacity not only to utilize but, more
Section 20 hereof to do so and the particular annual allowable cut thereof importantly, to protect and manage the whole area, and the requirements
has been granted. of processing plants existing or to be installed in the region.
In the public interest and in accordance with Section 21 hereof, the Forest concessions which had been the subject of consolidations shall be
Department Head shall review all existing annual allowable cut and reviewed and re-evaluated for the effective implementation of protection,
thereupon shall prescribe the level of annual allowable cut for the common reforestation and management thereof under the multiple use and sustained
dipterocarp timber, softwood and hardwood timber cutting of which is not yield concepts, and for the processing locally of the timber resources
prohibited, pulpwood, firewood and other forest products using as bases the therefrom.
factors as well as the updated aerial photographs and field inventories of
such forest land: Provided, That pending the completion of such review and B.
appropriate amendment of the annual allowable cut in existing license Wood-Processing
agreement, license, lease or permit existing annual allowable cut that not
sufficiently supports wood or forest products processing plant or that will Section 29
support duly approved processing expansion program or new processing Incentives to the Wood Industry
projects may be allowed to continue without change: Provided, further, That The Department Head, in collaboration with other government agencies and
no additional or adjustment in annual allowable cut shall be made until after the wood industry associations and other private entities in the country,
such a review has been made. [As amended by PD No. 1559] shall evolve incentives for the establishment of an integrated wood industry
in designated wood industry centers and/or economic area.
Section 27 The President of the Philippines, upon the recommendations of the National
Duration of License Agreement or License to Harvest Timber in Forest Lands Economic Development Authority and the Department Head, may establish
The duration of the privilege to harvest timber in any particular forest land wood industry import-export centers in selected locations: Provided, That
under a license agreement or license shall be fixed and determined in logs imported for such centers shall be subject to such precaution as may
accordance with the annual allowable cut therein, the established cutting be imposed by the Bureau, in collaboration with proper government
cycle thereof, the yield capacity of harvestable timber, and the capacity of agencies, to prevent the introduction of pests, insects and/or diseases
healthy residuals for a second growth. detrimental to the forests.
The privilege shall automatically terminate, even before the expiration of the
license agreement of license, the moment the harvestable timber have been Section 30
Rationalization of the Wood
BIA | Environmental Law | 75
or Forest Products Industry Unless otherwise directed by the President, upon recommendation of the
While the expansion and integration of existing wood or forest products Department Head, the entire production of logs by all timber licensees shall,
processing plants, as well as the establishment of new processing plants beginning January 1, 1976 be processed locally: Provided, That the
shall be encouraged, their locations and operations shall be regulated in following conditions must be complied with by those who apply be allowed
order to rationalize the whole industry. to export a portion of their log production to be determined by the
No expansion or integration of existing processing plant nor establishment Department Head such that the total log export of these timber licensees
of new processing plant shall be allowed unless environmental shall not exceed twenty-five percent (25%) of the total national allowable
considerations are taken into account and adequate raw material supply on cut:chanroblesvirtuallawlibrary
a sustained-yield basis is assured. 1. Timber licensees with existing viable processing plants; or
A long-term assurance of raw material source from forest concessions 2. Timber licensees with processing projects duly approved by the
and/or from industrial tree plantations, tree farms or agro-forest farms Department Head; or
whose annual allowable cut and/or whose harvest is deemed sufficient to 3. Timber licensees who have acquired viable processing machinery and
meet the requirement of such processing plant shall govern, among others, equipment which will be installed and will become operational in accordance
the grant of the privilege to establish, install additional capacity or operate a with the schedule approved by the Department Head; and
processing plant. 4. Timber licensees whose log export support or are in line with,
Henceforth within one year from the date of this law, as a condition to government-approved trade agreement.
exercise of the privileges granted them under a license agreement, license. Provided, further, That no person shall be given a permit to export if he has
lease or permit, wood or forest products processors without forest not complied with the requirements on replanting and reforestation.
concessions or areas that may be developed into industrial tree plantations, Provided, That the President may, upon recommendation of the Department
tree farms or agro-forest farms and licensees, lessees or permittees without Head, whenever the export price of logs falls to unreasonably low level or
processing plants shall jointly adopt any feasible scheme or schemes, other whenever public interest so requires, cancel log exportation or reduce the
than log supply contract, for the approval of the Department Head, maximum allowable proportion for log exports.
Provided, That no license agreement, license, lease or permit including All timber licensees who have no processing plant and who have no plan to
processing plant permit, shall be granted or renewed unless said scheme or establish the same shall, jointly with wood processors, adopt a scheme or
schemes are submitted to, and approved by, the Department Head. schemes for the processing of the log production in accordance with Section
All processing plants existing, to be expanded, to be integrated or to be 30 hereof. [As amended by PD No. 865, and by PD No. 1559]
established shall obtain operating permits, licenses and/or approval from
the Bureau or the Department, as the case may be, and shall submit C.
themselves to other regulations related to their operation. Reforestation
The Department Head may cancel, suspend, or phaseout all inefficient,
wasteful, uneconomical or perennially short in raw material wood or forest Section 33
products processing plants which are not responsive to the rationalization Lands to be Reforested and/or Afforested
program of the government. [As amended by PD No. 1569] Lands to be reforested and/or afforested are as
follows:chanroblesvirtuallawlibrary
Section 31 a. Public forest lands:chanroblesvirtuallawlibrary
Wood Wastes, Weed Trees and Residues
Timber licensees shall be encouraged and assisted to gather and save the b. Bare or grass-covered tracts of forest lands;
wood wastes and weed trees in their concessions, and those with
processing plants, the wood residues thereof, for utilization and conversion c. Brushlands or tracts of forest lands generally covered with brush, which
into wood by-products and derivatives. need to be developed to increase their productivity;

Section 32 d. Open tracts of forest lands interspersed with patches of forest;


Log Production and Processing

BIA | Environmental Law | 76


e. Denuded or inadequately timbered areas proclaimed by, the President as may be the subject of a lease under this Section. [As amended by PD No.
forest reserves and reservations as critical watersheds, national parks, game 1559]
refuge, bird sanctuaries, national shrines, national historic sites;
Section 35
f. Inadequately-stock forest lands within forest concessions; Property
Over any suitable area covered by a timber license agreement or permit, the
g. Portions of areas covered by pasture leases or permits needing priority to establish industrial tree plantation, tree farms or agro-forestry
immediate reforestation; farm shall be given to the holder thereof after the Bureau had determined
the suitability of such area and has set aside the same for the purpose.
h. River banks, easements, road right-of-ways, deltas, swamps, former The priority herein granted must, however, be availed of within a
river beds, and beaches. reasonable period otherwise the area shall be declared open to any qualified
person and consequently segregated from the licensee’s or permittee’s area.
i. Private Lands:chanroblesvirtuallawlibrary Priority shall also be given to the establishment of communal industrial tree
plantations by barangays, municipalities or cities and provinces. [As
j. Portions of private lands required to be reforested or planted to trees amended by PD No. 1559]
pursuant to Presidential Decree Nos. 953 and 1153 and other existing laws.
[As amended by PD No. 1559. PD 1153 repealed by EO No. 287, s. 1987] Section 36
Incentives
Section 34 To encourage qualified persons to engage in industrial tree plantation, tree
Industrial Tree Plantations, Tree Farms and Agro-Forestry Farms farm and/or agro-forest farm, the following incentives are
A lease for a period of fifty (50) years for the establishment of an industrial granted:chanroblesvirtuallawlibrary
tree plantations, tree farm or agro-forestry farm, may be granted by the a. Payment of a nominal filing fee of fifty centavos (P0.50) per hectare;
Department Head, upon recommendation of the Director, to any person b. No rental shall be collected during the first five (5) years from the date
qualified to develop and exploit natural resources, over timber or forest of the lease, from the sixth year to the tenth year, the annual rental shall be
lands of the public domain categorized in Section 33(1) hereof except those fifty centavos (P0.50) per hectare; and thereafter, the annual rental shall be
under paragraphs d and g with a minimum area of one hundred (100) one peso (P 1.00) per hectare: Provided, That lessees of areas long
hectares for industrial tree plantations and agro-forestry farms and ten (10) denuded, as certified by the Director and approved by the Department
hectares for tree farms: Provided, That the size of the area that may be Head, shall be exempted from the payment of rental for the full term of the
granted under each category shall, in each case, depend upon the capability lease which shall not exceed twenty-five (25) years; for the first five (5)-
of the lessee to develop or convert the area into productive condition within years following the renewal of the lease, the annual rental shall be fifty
the term of the lease. centavos (P0.50) per hectare; and thereafter, the annual rental shall be one
The lease may be granted under such terms and conditions as the peso (P1.00) per hectare: Provided, further, That notwithstanding the
Department Head may prescribe, taking into account, among others, the foregoing, no rental shall be collected from a lessee who, upon verification
raw material needs of forest based and other industries and the by the Bureau, substantially meets the schedule of development of the
maintenance of a wholesome ecological balance. industrial tree plantation, the tree farm, or agro-forestry farm, as the case
Trees and other products raised within the industrial tree plantation, tree may be, as prescribed in the development plan submitted to, and approved
farm or agro-forestry farm belong to the lessee who shall have the right to by the Department Head, upon recommendation of the Director;
sell, contract, convey, or dispose of said planted trees and other products in c. The forest charges payable by a lessee on the timber and other forest
any manner he sees fit, in accordance with existing laws, rules and products grown and cut or gathered in an industrial tree plantation, tree
regulations. farm, or agro-forestry farm shall only be twenty-five percent (25%) of the
Reforestation projects of the Government, or portion thereof, which, upon regular forest charges prescribed in the National Internal Revenue Code;
field evaluation, are found to be more suitable for, or can better be d. Exemption from the payment of the percentage tax levied in Title V of
developed as industrial tree plantations, tree farms or agro-forestry farms, the National Internal Revenue Code when the timber and forest products
in terms of benefits to the Government and the general surrounding area, are sold, bartered or exchanged by the lessee, whether in their original
BIA | Environmental Law | 77
state or not, as well as exemption from all forms of sales tax, local and Head, from artificial or man-made forests, or local processing plants
municipal taxes, and from the real property tax under the provisions of manufacturing the same;
Presidential Decree No. 853; m. No processing plant of whatever nature or type, made of or utilization,
e. A lessee shall not be subject to any obligation prescribed in, or arising as primary materials shall be allowed to be established, expanded or
out of, the provisions of the National Internal Revenue Code on withholding integrated, and operated without a long-term assurance or raw materials
of tax at source upon interest paid on borrowing incurred for development source from forest concessions and/or from industrial tree plantations, tree
and operation of the industrial tree plantation, tree farm, or agro-forestry farms or agro-forestry farms in accordance with Section 30 hereof;
farm; n. Timber grown and harvested from industrial tree plantations, tree farms
f. Except when public interest demands, the boundaries of an area covered and agro-forestry farms may be exported without restriction in quantity or
by an industrial tree plantation, tree farm, or agro-forestry farm lease, once volume, and if the exporter is the same person or firm qualified and allowed
established on the ground, shall not be altered or modified; to export logs under the provisions of this Decree, such timber from
g. Amounts expended by a lessee in the development and operation of an plantations/farms may be exported exclusive of the quantity or volume
industrial tree plantation, tree farm, or agro-forestry farm prior to the time authorized under Section 32 hereof: Provided, That the rentals on the forest
when the production state is reached, may, at the option of the lessee, be land and the forest charges on the plantation timber shall have been paid:
regarded as ordinary and necessary business expenses or as capital Provided, further, That the export of the plantation timber shall be covered
expenditures; by a certificate to export issued by the Department Head on a yearly basis:
h. The Board of Investments shall, notwithstanding its nationality Provided, finally, That the Department Head may at any time review the
requirement on projects involving natural resources, classify industrial tree exportation of timber harvested from the plantations/farms and either
plantations, tree farms and agro-forestry farms as pioneer areas of reduce or totally suspend the export of such plantation timber whenever
investment under its annual priority plan, to be governed by the rules and public interest so requires; and
regulations of said Board; o. Free technical advice from government foresters and farm technicians.
In addition to the incentives under this section, private landowners who The Department Head may provide other incentives in addition to those
engage in tree farming on areas fifty hectares or below by planting their hereinafter granted to promote industrial tree plantations, tree farms and
lands with Ipil-ipil and other fast growing trees shall be exempt from the agro-forestry farms in special areas such as, but not limited to, those where
inventory requirement and other requirements before harvest as provided in there are no roads or where e roads are inadequate, or areas with rough
this Decree for lessees of forest lands of the public domain: Provided, That topography and remote areas far from processing plants. [As amended by
the transport of trees cut shall be accompanied by the corresponding PD No. 1559]
certificate of origin duly issued by the authorized forest officer. [As added
by BP Blg. 701, approved April 5, 1984] D.
i. Approved industrial tree plantations, tree farms, and agro-forestry farms Forest Protection
shall be given priority in securing credit assistance from the government and
government-supported financing institutions which shall set aside adequate Section 37
funds for lending to the lessee and/or investor at reasonable interest rates; Protection of All Resources
j. The lessee and its field employees and workers shall be exempted from All measures shall be taken to protect the forest resources from destruction,
the provisions of Presidential Decree No. 1153; impairment and depletion.
k. Government institutions administering or financing programs and
projects requiring wood materials shall specify the purchase of, or utilize, Section 38
manufactured products derived from trees grown and harvested from Control of Concession Area
industrial tree plantations, tree farms or agro-forestry farms, whenever In order to achieve the effective protection of the forest lands and the
possible; resources thereof from illegal entry, unlawful occupation, kaingin, fire,
l. No wood, wood products or wood-derivated products including pulp insect infestation, theft, and other forms of forest destruction, the utilization
paper, paperboard shall be imported if the same are available in required of timber therein shall not be allowed except through license agreements
quantities and reasonable prices, as may be certified by the Department under which the holders thereof shall have the exclusive privilege to cut all
the allowable harvestable timber in their respective concessions, and the
BIA | Environmental Law | 78
additional right of occupation, possession, and control over the same, to the Participation in the Development of Alienable and Disposable Lands and Civil
exclusive of all others, except the government, but with the corresponding Reservations
obligation to adopt all the protection and conservation measures to ensure The privilege to harvest timber in alienable and disposable lands and civil
the continuity of the productive condition of said areas, conformably with reservations shall be given to those who can best help in the delineation
multiple use and sustained yield management. and development of such areas in accordance with the management plan of
If the holder of a license agreement over a forest area expressly or impliedly the appropriate government exercising jurisdiction over the same.
waives the privilege to utilize any softwood, hardwood or mangrove species The extent of participation shall be based on the amount of timber which
therein, a license may be issued to another person for the harvest thereof may be harvested therefrom.
without any right of possession or occupation over the areas where they are
found, but he shall, likewise, adopt protection and conservation measures Section 43
consistent with those adopted by the license agreement holder in the said Swamplands and Mangrove Forests
areas. Strips of mangrove forest bordering numerous islands which protect the
shoreline, the shoreline roads, and even coastal communities from the
Section 39 destructive force of the sea during high winds and typhoons, shall be
Regulation of Timber Utilization in All Other Classes of Lands and of maintained and shall not be alienated. Such strips must be kept from
Processing Plants artificial obstruction so that flood water will flow unimpeded to the sea to
The utilization of timber in alienable and disposable lands, private lands, civil avoid flooding or inundation of cultivated areas in the upstream.
reserve preservations, and all lands containing standing or felled timber All mangrove swamps set aside for coast-protection purposes shall not be
including those under the jurisdiction of other government agencies, and subject to clear-cutting operation.
the establishment and operation of sawmills and other wood-processing Mangrove and other swamps released to the Bureau of Fisheries and
plants, shall be regulated in order to prevent them from being used as Aquatic Resources for fishpond purposes which are not utilized, or which
shelters for excessive and unauthorized harvests in forest lands, and shall have been abandoned for five (5) years from the date of such release shall
not therefore be allowed except through a license agreement, license, lease revert to the category of forest land.
or permit.
Section 44
Section 40 Visitorial Power
Timber Inventory in Other Lands Containing Standing or Felled Timber The Department Head may, by himself or thru the Director or any qualified
The Bureau shall conduct a one hundred percent (100%) timber inventory person duly designated by the Department Head, investigate, inspect and
in alienable and disposable lands and civil reservations immediately upon examine records, books and other documents relating to the operation of
classification or reservation thereof. any holder of a license agreement, license, lease, or permit, and its
No harvest of standing or felled timber in alienable and disposable lands, subsidiary or affiliated companies to determine compliance with the terms
private lands, civil reservation, and all other lands, including those under the and conditions thereof, this Code and pertinent laws, policies, rules and
jurisdiction of other government agencies, shall be allowed unless a one regulations.
hundred percent (100%) timber inventory has been conducted thereon.
Section 45
Section 41 Authority of Forest Officers
Sworn Timber Inventory Reports When in the performance of their official duties, forest officers, or other
All reports on timber inventories of forest lands, alienable and disposable government officials or employees duly authorized by the Department Head
lands, private lands, civil reservations, and all lands containing standing or or Director, shall have free entry into areas covered by a license agreement,
felled timber must be subscribed and sworn to by all the forest officers who license, lease or permit.
conducted the same. Forest officers are authorized to administer oath and take acknowledgment
in official matters connected with the functions of their office, and to take
Section 42 testimony in official investigations conducted under the authority of this
Code and the implementing rules and regulations.
BIA | Environmental Law | 79
They shall likewise extend assistance in the planning and establishment of
Section 46 roads, wharves, piers, port facilities, and other infrastructure in locations
Scaling Stations designated as wood-processing centers or for the convenience of wood-
In collaboration with appropriate government agencies, the Bureau shall based industries.
establish control or scaling stations at suitably located outlets of timber and In order to coincide and conform to government plans, programs,
other forest products to insure that they were legally cut or harvested. standards, and specifications, holders of license agreements, licenses,
leases and permits shall not undertake road or infrastructure construction or
Section 47 installation in forest lands without the prior approval of the Director, or in
Mining Operations alienable and disposable lands, civil reservations and other government
Mining operations in forest lands shall be regulated and conducted with due lands, without the approval of the government agencies having
regard to protection, development and utilization of other surface resources. administrative jurisdiction over the same.
Location, prospecting, exploration, utilization or exploitation of mineral All roads and infrastructure constructed by holders of license agreements,
resources in forest reservations shall be governed by Mining laws, rules and licenses, leases and permits belong to the State and the use and
regulations. No location, prospecting, exploration, utilization, or exploitation administration thereof shall be transferred to the government immediately
of mineral resources inside forest concessions shall be allowed unless proper upon the expiration or termination thereof. Prior thereto the Bureau may
notice has been served upon the licensees thereof and the prior approval of authorize the public use thereof, if it will not be detrimental to forest
the Director, secured. conservation measures.
Mine tailings and other pollutants affecting the health and safety of the Where roads are utilized by more than one commercial forest user, the
people, water, fish, vegetation, animal life and other surface resources, shall Bureau shall prescribe the terms and conditions of joint use including the
be filtered in silt traps or other filtration devices and only clean exhausts equitable sharing of construction and/ or maintenance costs, and of the use
and liquids shall be released therefrom. of these roads by other parties and the collection of such fees as may be
Surface-mined areas shall be restored to as near its former natural deemed necessary.
configuration or as approved by the Director prior to its abandonment by
the mining concern. Section 50
Logging Roads
Section 48 There shall be indiscriminate construction of logging roads.
Mineral Reservations Such roads shall be strategically located and their widths regulated so at to
Mineral reservations which are not the subject of mining operations or minimize clear-cutting, unnecessary damage or injury to healthy residuals,
where operations have been suspended for more than five (5) years shall be and erosion. Their construction must not only serve the transportation need
placed under forest management by the Bureau. of the logger, but, most importantly, the requirement to save as many
Mineral reservations where mining operations have been terminated due to healthy residuals as possible during cutting and hauling operations.
the exhaustion of its minerals shall revert to the category of forest land,
unless otherwise reserved for other purposes. Section 51
Management of Occupancy in Forest Lands
Section 49 Forest occupancy shall henceforth be managed. The Bureau shall study,
Roads and Other Infrastructure determine and defined which lands may be the subject of occupancy and
Roads and other infrastructure in forest lands shall be constructed with the prescribed therein, an agro-forestry development program.
least impairment to the resource values thereof. Occupants shall undertake measures to prevent and protect forest
Government agencies undertaking the construction of roads, bridges, resources. Any occupancy in forest land which will result in sedimentation,
communications, and other infrastructure and installations inside forest erosion, reduction in water yield and impairment of other resources to the
lands, shall coordinate with the Bureau, especially if it will involve the detriment of community and public interest shall not allowed.
utilization or destruction of timber and/or other forest resources, or In areas above 50% in slope, occupation shall be conditioned upon the
watershed disturbance therein, in order to adopt measures to avoid or planting of desirable trees thereon and/or adoption of other conservation
reduce damage or injury to the forest resource values. measures.
BIA | Environmental Law | 80
All measures shall be adopted to conserve wildlife. The Director shall
Section 52 regulate the hunting of wildlife in forest lands in order to maintain an
Census of Kaingineros, Squatters, Cultural Minorities and Other Occupants ecological balance of flora and fauna. [As amended by PD No. 1559]
and Residents in Forest Lands
Henceforth, no person shall enter into forest lands and cultivate the same Section 56
without lease or permit. Recreation
A complete census of kaingineros, squatters, cultural minorities and other The Bureau shall, in the preparation of multiple-use management plans,
occupants and residents in forest lands with or without authority or permits identify and provide for the protection of scenic areas in all forest lands
from the government, showing the extent of their respective occupation and which are potentially valuable for recreation and tourism, and plan for the
resulting damage, or impairment of forest resources, shall be conducted. development and protection of such areas to attract visitors thereto and
The Bureau may call upon other agencies of the government and holders of meet increasing demands therefor.
license agreement, license, lease and permits over forest lands to The construction and operation of necessary facilities to accommodate
participate in the census. outdoor recreation shall be done by the Bureau with the use of funds
derived from rentals and fees for the operation and use of recreational
Section 53 facilities by private persons or operators, in addition to whatever funds may
Criminal Prosecution be appropriated for such purposes.
Kaingineros, squatters, cultural minorities and other occupants who entered
into forest lands and grazing lands before May 19, 1975, without permit or Section 57
authority, shall not be prosecuted: Provided, That they do not increase their Other Special Uses of Forest Lands
clearings: Provided, further, That they undertake, within two (2) months Forest lands may be leased for a period not exceeding twenty-five (25)
from notice thereof, the activities to be imposed upon them by the Bureau years, renewable upon the expiration thereof for a similar period, or held
in accordance with management plan calculated to conserve and protect under permit, for the establishment of sawmills, lumber yards, timber
forest resources in the area: Provided, finally, That kaingineros, squatters, depots, logging camps, rights-of-way, or for the construction of sanatoria,
cultural minorities and other occupants shall whenever the best land use of bathing establishments, camps, salt works, or other beneficial purposes
the area so demands as determined by the Director, be ejected and which do not in any way impair the forest resources therein.
relocated to the nearest accessible government resettlement area. [As
amended by PD No. 1559] F.
Qualifications
E.
Special Uses Section 58
Diffusion of Benefits
Section 54 The privilege to utilize, exploit, occupy, or possess forest lands, or to
Pasture in Forest Lands conduct any activity therein, or to establish and operate wood-processing
No forest land 50% in slope or over may be utilized for pasture purposes. plants, shall be diffused to as many qualified and deserving applicants as
Forest lands which are being utilized for pasture shall be maintained with possible.
sufficient grass cover to protect soil, water and other forest resources.
If grass cover is insufficient, the same shall be supplemented with trees or Section 59
such vegetative cover as maybe deemed necessary. Citizenship
The size of forest lands that may be allowed for pasture and other special In the evaluation of applications of corporations, increased Filipino equity
uses shall be determined by rules and regulations, any provision of law to and participation beyond the 60% constitutional limitation shall be
the contrary notwithstanding. encouraged. All other factors being equal, the applicant with more Filipino
equity and participation shall be preferred.
Section 55
Wildlife Section 60
BIA | Environmental Law | 81
Financial and Technical Capability (1) year after the effectivity of this Code, formulate and submit to the
No license agreement, license, lease or permit over forest lands shall be Department Head for approval a plan for the sale of at least twenty percent
issued to an applicant unless he proves satisfactorily that he has the (20%) of its subscribed capital stock in favor of its employees and laborers.
financial resources and technical capability not only to minimize utilization, The plan shall be so implemented that the sale of the shares of stock shall
but also to practice forest protection, conservation and development be effected by the corporation not later than the sixth year of its operation,
measures to insure the perpetuation of said forest in productive condition. or the first year of the effectivity of this Code, if the corporation has been in
operation for more than 5 years prior to such effectivity.
Section 61 No corporation shall be issued any license agreement, license, lease or
Transfers permit after the effectivity of this Code, unless it submits such a plan and
Unless authorized by the Department Head, no licensee, lessee, or the same is approved for implementation within the sixth year of its
permittee may transfer, exchange, sell or convey his license agreement, operation.
license, lease or permit, or any of his rights or interests therein, or any of The Department Head shall promulgate the necessary rules and regulations
his assets used in connection therewith. to carry out the provisions of this section, particularly on the determination
The licensee, lessee or permittee shall be allowed to transfer or convey his of the manner of payment factors affecting the selling price, establishment
license agreement, license, lease or permit only if the license, lease or of priorities in the purchase of the shares of stock, and the capability of the
permit has been in existence for at least three (3) years, the licensee, lessee deserving employees and laborers. The industries concerned shall extend all
or permittee has not violated any forestry law, rule or regulation and has assistance in the promulgation of policies on the matter, such as the
been faithfully complying with the terms and conditions of the license submission of all data and information relative to their operation, personnel
agreement, license, lease or permit, the transferee has all the qualifications management, and asset evaluation.
and none of the disqualifications to hold a license agreement, license, lease
or permit, there is no evidence that such transfer of conveyance is being G.
made for purposes of speculation; and the transferee shall assume all the Regulatory Fees
obligations of the transferor.
As used in this section, the term assets shall not include cattle and other Section 64
livestocks or animals raised in grazing lands and forest lands, and planted Equity Sharing
trees and other products raised in industrial tree plantations, tree farms and Every corporation holding a license agreement, license, lease or permit to
agro-forestry farms. [As amended by PD No. 1559] utilize, exploit, occupy or possess any forest land, or conduct any activity
therein, or establish and operate a wood-processing plant, shall within one
Section 62 (1) year after the effectivity of this amendatory Decree, formulate and
Service Contracts submit to the Department Head for approval a plan for the sale of at least
The Department Head, may in the national interest, allow forest products ten percent (10%) of its subscribed capital stock in favor of employees,
licensees, lessees or permittees to enter into service contracts for financial, laborers and the general public.
technical, management, or other forms of assistance, in consideration of a The plan shall be so implemented that the sale of the shares of stock shall
fee, with any foreign person or entity for the exploration, development, be effected by the corporation not later than the sixth year of its operation,
exploitation or utilization of the forest resources, covered by their license or the first year of the effectivity of this amendatory Decree, if the
agreements, licenses, leases or permits. Existing valid and binding service corporation has been in operation for more than five (5) years prior to such
contracts for financial, technical, management or other forms of assistance effectivity.
are hereby recognized as such. No corporation shall be issued any license agreement, license, lease or
permit after the effectivity of this amendatory Decree, unless it submits
Section 63 such a plan and the same is approved for implementation within the sixth
Equity Sharing year of its operation.
Every corporation holding a license agreement, license, lease or permit to The Department Head shall promulgate the necessary rules and regulations
utilize, exploit, occupy or possess any forest land, or conduct any activity to carry out the provisions of this section, particularly on the determination
therein, or establish and operate a wood-processing plant, shall within one of the manner of payment, factors affecting the selling price, establishment
BIA | Environmental Law | 82
of priorities in the purchase of the shares of stock, and the preparation of a The Director may, with the approval of the Department Head, prescribe a
fund to ensure the financial capability of the deserving employees and new method of assessment of forest products and collection of charges
laborers. The industries concerned shall extend all assistance in the thereon based upon the result of production cost and market studies
promulgation of policies on the matter, such as the submission of all data undertaken by the Bureau; Provided, That such charges shall not be lower
and information relative to their operation, personnel management and than those now imposed.
asset evaluation. [As amended by PD No. 1559]
H.
Section 65 Taxation for Forest Products
Authority of Department Head to Impose Other Fees
In addition to the fees and charges imposed under existing laws, rules and Section 68
regulations, the Department Head is hereby authorized, upon Measuring of Forest Products
recommendation of the Director and in consultation with representatives of and Invoicing and Collection of Charges Thereon
the industries affected, to impose other fees for forest protection, The duties incident to the measuring of forest products shall be discharged
management, reforestation, and development, the proceeds of which shall by the Bureau of Forest Development under regulations of the Ministry of
accrue into a special deposit of the Bureau as its revolving fund for the Natural Resources (now, Secretary of Environment and Natural Resources).
aforementioned purposes. The invoicing and collection of the charges thereon shall be done by the
Bureau of Internal Revenue under regulations approved by the Minister of
Section 66 Finance (now Department of Finance). [As amended by BP Blg. 83, Sept.
Collection and Disbursement 17, 1980]
The collection of the charges and fees above-mentioned shall be the
responsibility of the Director or his authorized representative. The Director Section 69
shall remit his monthly collection of fees and charges mentioned in Section Mode of Measuring Timber
64 to the Treasurer of the Philippines within the first ten (10) days of the Except as herein below provided, all timber shall be measured and
succeeding month; Provided, That the proceeds of the collection of the fees manifested in the round or squared, before being sawn or manufactured.
imposed under Section 65 and the special deposit heretofore required of The volume of all round timber shall be ascertained by multiplying the area
licensees shall be constituted into a revolving fund for such purposes and be of the small and by the length of the log, the diameter of the log to be
deposited in the Philippine National Bank, as a special deposit of the measured exclusive of the bark; but if the end of a log is irregular, the
Bureau. The Budget Commissioner and the National Treasurer shall effect average diameter shall be used; and in order to ascertain the volume of a
the quarterly releases out of the collection accruing to the general fund log more than eight meters long, the diameter of the middle of said log or
upon request of the Director on the basis of a consolidated annual budget the average of the diameters at both ends thereof shall be used as basis. If
of a work program approved by the Department Head and the President. a log in the round, cut under license, is measured and manifested by forest
In the case of the special deposit revolving fund, withdrawals therefrom officers, the Director of Forest Development shall make due allowance for
shall be effected by the Department Head on the basis of a consolidated rot, cavities or other natural defects; but from any decision of the Director
annual budget prepared by the Director of a work program for the specific of Forest Development in this respect, an appeal shall lie to his Ministry
purposes mentioned in Section 65. Head (now, Department Head), whose decision shall be final. The manifest
of timber cut by licensees operating sawmills in or near the forest shall be
Section 67 attested by forest of officers whenever practicable.
Basis of Assessment The volume of squared timber shall be ascertained by multiplying the
Tree measurement shall be the basis for assessing government charges and average of the cross section measured by the length, to which forty per
other fees on timber cut and removed from forest lands, alienable or centum shall be added for loss in squaring: Provided, however, That if
disposable lands, and the civil reservations; Provided, That until such time squared timber cut under license is measured and manifested by forest
as the mechanics of tree measurement shall have been developed and officers, the Director of Forest Development shall make due allowance for
promulgated in rules and regulations, the present scaling method provided rot, cavities, or other natural defects; but from any decision of the Director
for in the National Internal Revenue Code shall be used. of Forest Development in this respect, an appeal shall lie to his Ministry
BIA | Environmental Law | 83
Head (Department Head), whose decision shall be final. The privilege of Effectivity and Application of Forest Charges and Determination of Market
manifesting timber after squaring shall, however, be granted only to Price of Forest Products
licensees who have squared their logs in the forests with the ax and intend The rates of forest charges provided for in Sections 70, 71 and 72 hereof
to take it to the market in this form. shall be effective upon approval of this Act. The new rates shall be
If sawn or otherwise manufactured timber is found which has not been published in the Official Gazette or in two (2) newspapers of national
manifested in accordance with the provisions hereof, the corresponding circulation and shall also be posted in conspicuous places in the different
forest charges shall be assessed on twice the volume of the actual contents Department of Environment and Natural Resources field offices.
of such sawn or manufactured timber. [As amended by BP Blg. 83, Sept. 17, The actual FOB market price of forest products shall be justly determined
1980] once a year by the Secretary of Environment and Natural Resources:
Provided, That he shall cause the creation of a committee to be composed
Section 70 of representatives of the Department of Environment and Natural
Charges on Timber Cut in Forestland Resources, the National Economic Development Authority the Department
There shall be collected charges on each cubic meter of timber cut in of Trade and Industry, the Bureau of Internal Revenue and the wood and
forestland, whether belonging to the first, second, third or fourth group, furniture industry and consumer sectors which shall formulate the criteria
twenty-five percent (25%) of the actual FOB market price based on species and/or guidelines in the determination of the actual FOB market price to be
and grading: Provided, however, That, in the case of pulpwood and used as the basis for the assessment of the ad valorem tax. Taking into
matchwood cut in forestland, forest charges on each cubic meter shall be consideration production cost (developing cost, contingencies and
ten percent (10%) of the actual FOB market price. [As amended by RA No. miscellaneous cost), species and grade of timber, government share,
7161, 10 Oct. 1991] reforestation, tariff duties, taxes, risk involved and a reasonable margin of
profit for domestic and export market prices for wood and wood products.
Section 71 These forest charges shall be applied to naturally growing timber and forest
Charges on Firewood, Branches and Other Recoverable Wood Wastes of products gathered within public forestlands, alienable and disposable lands
Timber and private lands. Forest charges collected shall be in lieu of the
Except for all mangrove species whose cutting shall be banned, there shall administrative charge on environment and other fees and charges imposed
be collected forest charges on each cubic meter of firewood cut in thereon: Provided, That planted trees and other forest products harvested
forestland, branches and other recoverable wood wastes of timber, such as from industrial tree plantations and private lands covered by existing tiller or
timber ends, tops and stumps when used as raw materials for the by approved land application are exempted from payment of forest charges.
manufacture of finished products. Ten pesos (P10.00). [As amended by RA No. 7161]
Only third or fourth group wood can be taken for firewood. However, if
jointly authorized by the Secretaries of both the Departments of Section 74
Environment and Natural Resources and Agriculture, first and second group Charges on Gums, Resins,
woods may be removed for firewood purposes from land which is more and Other Forest Products
valuable for agricultural than for forest purposes. [As amended by RA No. On gums, resins, rattan, and other forest products of forest lands which are
7161] not herein above provided for, there is herein imposed upon the person
removing such forest product a charge of ten per centum of the actual
Section 72 market value thereof, determined in the manner indicated below.
Charges on Minor Forest Products The market value of the various forest products on which forest charges
All other forest products of forestland which are not covered by the may thus be collected shall be determined from time to time by a joint
preceding sections shall be exempt from any or all forest charges, except assessment of the Commissioner and the Director of Forest Development, to
rattan, gums and resins, bees-wax, gutapercha, almaciga resin and bamboo be approved by their respective Ministry Heads (Department Heads), the
which shall be charged at ten percent (10%) of the actual FOB market same to be published for the information of public in the Official Gazette, in
price. [As amended by RA No. 7161] two daily newspaper of national circulation, and posted in a conspicuous
place in the municipal building of a municipality concerned. [As amended by
Section 73 BP Blg. 83]
BIA | Environmental Law | 84
return in duplicate setting forth the quantity, volume and the specie of the
Section 75 forest product removed during each calendar quarter, or the balance, if any,
Tax Exemptions of Forest Products in cases where payments are made upon removal, and pay the taxes due
Lawfully Removed under Gratuitous License thereon within twenty days after the end of each quarter to the revenue
No charges shall be collected on forest products removed in conformity with district officer, collection agent, or duly authorized treasurer of the
the terms of a gratuitous license of the Bureau of Forest Development and municipality of the place where the timber concession is located or where
in compliance with the law and the regulations of such Bureau. [As the forest products were gathered and removed.
amended by BP Blg. 83] In case the taxes are not paid within the period prescribed above, there
shall be added thereto a surcharge of twenty-five per centum, the
Section 76 increment to be a part of the tax and the entire unpaid amount shall be
Tax Exemption of Trees and Products Removed from Public Lands under a subject to interest at the rate of twenty per centum per annum. Where a
Tree Farm Lease false or fraudulent return is made, there shall be added to the taxes a
No charges shall be collected on trees and products removed from public surcharge of fifty per centum of their amount, and the entire unpaid amount
lands planted to ipil-ipil and/or falcata under a tree farm lease with the shall be subject to interest at the rate of twenty per centum per annum. The
Government. [As amended by BP Blg. 83] amounts so added shall be collected in the same manner and as part of the
taxes, as the case may be. [As amended by BP Blg. 83]
Section 77
Time, Manner and Place CHAPTER IV
of Payment of Forest Charges CRIMINAL OFFENSES AND PENALTIES
The charges on forest products herein imposed shall be payable at the time
of the removal from or utilization of the same within the concession area. Section 78
Before removing any forest product subject to forest charges, the person Cutting, Gathering and/or Collecting Timber, or Other Forest
liable to the said tax shall file, in duplicate, a return setting forth the Products Without License
quantity, volume and the specie of the forest product to be removed and Any person who shall cut, gather, collect, remove timber or other
pay the forest charges due thereon to the revenue district officer, collection forest products from any forestland, or timber from alienable or
agent, or duly authorized treasurer of the municipality of the place where disposable public land, or from private land, without any authority,
the timber concession is located or where the forest products were gathered or possess timber or other forest products without the legal
and removed, except as herein below provided. documents as required under existing forest laws and regulations,
With the approval of the Commissioner, lumber may be removed from a shall be punished with the penalties imposed under Articles 309
sawmill situated on a licensed citing area upon the giving of a bond and 310 of the Revised Penal Code: Provided, That in the case of
conditioned upon the monthly payment of the charges due on the output of partnership, associations, or corporations, the officers who
such mill. He may also authorize the shipment of forest products under ordered the cutting, gathering, collection or possession shall be
auxiliary invoices without the prepayment of charges in special cases where liable, and if such officers are aliens, they shall, in addition to the
the prepayment of the charges at the point of origin would result in undue penalty, be deported without further proceedings on the part of
hardship, if the owner of concessionaire shall first file a bond with the the Commission on Immigration and Deportation.
Bureau of Internal Revenue in the form and amount and with such sureties The Court shall further order the confiscation in favor of the government of
as the Commissioner may require, conditioned upon the payment of the the timber or any forest products cut, gathered, collected, removed, or
forest charges at the point of destination or at such time and place as the possessed, as well as the machinery, equipment, implements and tools
Commissioner may direct. However, if any forest products are removed, the illegally used in the area where the timber or forest products are found. [As
Commissioner of Internal Revenue or his duly authorized representatives amended by PD No. 1559, and by EO No. 277, prom. July 25, 1987, 83 OG
shall first be notified of such removal on a form prescribed for the purpose No. 31, Aug. 3, 1987]
to be filed with the revenue district officer of the place where the Section 78-A
concession is located or where the forest products were gathered and Administrative Authority of the Department Head
removed. It shall be the duty of every licensee to make a true and complete or His Duly Authorized Representative
BIA | Environmental Law | 85
to Order Confiscation maximum of the penalty upon the offender who commits the same offense
In all cases of violations of this Code or other forest laws, rules and for the third time.
regulations, the Department Head or his duly authorized representative, In all cases, the Court shall further order the eviction of the offender from
may order the confiscation of any forest products illegally cut, gathered, the land the forfeiture to the government of all improvements made and all
removed, or possessed or abandoned, and all conveyances used either by vehicles, domestic animals and equipment of any kind used in the
land, water or air in the commission of the offense and to dispose of the commission of the offense. If not suitable for use by the Bureau, said
same in accordance with pertinent laws, regulations or policies on the vehicles, domestic animals, equipment and improvements shall be sold at
matter. [As added by EO No. 277] public auction, the proceeds of which shall accrue to the Development Fund
of the Bureau.
Section 78-B In case the offender is a government official or employee, he shall, in
Rewards to Informants addition to the above penalties be deemed automatically dismissed from
Any person who shall provide any information leading to the office and permanently disqualified from holding any elective or appointive
apprehension and conviction of any offender for any violation of position. [As amended by PD No. 1559]
this Code or other forest laws, rules and regulations, or
confiscation of forest products, shall be given a reward in the Section 80
amount of twenty per centum (20%) of the proceeds of the Pasturing Livestock
confiscated forest products. [As added by EO No. 277] Imprisonment for not less than six (6) months nor more than two (2) years
and a fine equal to ten (10) times the regular rentals due, in addition to the
Section 79 confiscation of such livestock and all improvements introduced in the area in
Unlawful Occupation or favor of the government, shall be imposed upon any person, who shall,
Destruction of Forest Lands and Grazing Lands without authority under a lease or permit, graze or cause to graze livestock
Any person who enters and occupies or possesses, or makes kaingin for his in forest lands, grazing lands and alienable and disposable lands which have
own private use or for others, any forest land or grazing land without not as yet been disposed of in accordance with the Public Land Act;
authority under a license agreement, lease, license or permit, or in any Provided, That in case the offender is a corporation, partnership or
manner destroys such forest land or grazing land or part thereof, or causes association, the officers and directors thereof shall be liable.
any damage to the timber stand and other products and forest growth
found therein, or who assists, aids or abets any other person to do so, or Section 81
sets a fire, or negligently permits a fire to be set in any forest land or Illegal Occupation of National Parks System and Recreation Areas and
grazing land, or refuses to vacate the area when ordered to do so, pursuant Vandalism Therein
to the provisions of Section 53 hereof shall, upon conviction, be fined in an Any person who, shall, without permit, occupy for any length of time any
amount of not less than five hundred pesos (P500.00), nor more than portion of the national parks system or shall, in any manner cut, destroy,
twenty thousand pesos (P20,000.00) and imprisoned for not less than six damage or remove timber or any species of vegetation or forest cover and
(6) months nor more than two (2) years for each such offense, and be liable other natural resources found therein, or shall mutilate, deface or destroy
to the payment of ten (10) times to the rental fees and other charges which objects of natural beauty or of scenic value within areas in the national
would have accrued had the occupation and use of the land been parks system, shall be fined not less than five hundred pesos (P500.00)
authorized under a license agreement, lease, license or permit: Provided, pesos or more than twenty thousand (P20,000.00) pesos exclusive of the
That in the case of an offender found guilty of making kaingin, the penalty value of the thing damaged; Provided, That if the area requires
shall be imprisonment for not less than two (2) nor more than four (4) years rehabilitation or restoration as determined by the Director, the offender
and a fine equal to eight (8) times the regular forest charges due on the shall also be required to restore or compensate or the restoration of the
forest products destroyed, without prejudice to the payment of the full cost damage: Provided, further, That any person who, without proper permit
of production of the occupied area as determined by the Bureau: Provided, shall hurt, capture or kill any kind of bird, fish or wild animal life within the
further, That the maximum of the penalty prescribed herein shall be area in the national parks system shall be subject to the same penalty:
imposed upon the offender who repeats the same offense and double the Provided, finally, That the Court shall order eviction of the offender from the
land and the forfeiture in favor of the government of all timber or any
BIA | Environmental Law | 86
species or vegetation and other natural resources collected or removed, and office, shall be imposed upon any public officer or employee who shall issue
any construction or improvement made thereon by the offender. If the a tax declaration on real property without a certification from the Director of
offender is an association or corporation, the president or manager shall be Forest Development and the Director of Lands or their duly designated
directly responsible and liable for the act of his employees or laborers. representatives that the area declared for taxation is alienable and
In the event that an official or employee of a city or municipal government disposable lands, unless the property is titled or has been occupied and
is primarily responsible for detecting and convicting the violator of the possessed by members of the national cultural minorities prior to July 4,
provisions of this section, fifty per centum (50%) of fine collected shall 1955.
accrue to such municipality or city for the development of local parks. [As
amended by PD No. 1559] Section 86
Coercion and Influence
Section 82 Any person who coerces, influences, abets or persuades the public officer or
Destruction of Wildlife Resources employee referred to in Sections 74 and 75 commit any of the acts
Any person violating the provisions of Section 55 of this Code, or the mentioned therein shall suffer imprisonment of not less than one (1) year
regulations promulgated thereunder, shall be fined not less than one and pay a fine of five hundred (P500.00) pesos for every hectare or a
hundred (P100.00) pesos for each such violation and in addition shall be fraction thereof so improperly surveyed, classified or released.
denied a permit for a period of three (3) years from the date of the In all other cases, any person who coerces, influences, abets or persuades
violation. the public officer or employee by using power and influence in deciding any
pending case or matter in his favor shall be punished by a fine of not more
Section 83 than five thousand pesos (P5,000.00) and imprisonment of not less than
Survey by Unauthorized Persons one (1) year. [As amended by PD No. 1559]
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 87
section including the cancellation of the license, if any, shall be imposed Payment, Collection
upon any person who shall, without permit to survey from the Director, and Remittance of Forest Charges
enter any forestlands, whether covered by a license agreement, lease, Any person who fails to pay the amount due and payable under the
license, or permit, or not, and conduct or undertake a survey for whatever provisions of this Code, the National Internal Revenue Code, or the rules
purpose. and regulations promulgated thereunder, shall be liable to the payment of a
surcharge of twenty-five per centum (25%) of the amount due and payable.
Section 84 Any person who fails or refuses to remit to the proper authorities said forest
Misclassification and Survey by Government Official or Employee charges collectible pursuant to the provisions of this Code or the National
Any public officer of employee who knowingly surveys, classifies, or Internal Revenue Code, or who delays, obstructs or prevents the same, or
recommends the release of forestlands as alienable and disposable lands who orders, causes or effects the transfer or diversion of the funds for
contrary to the criteria and standards established in this Code, or the rules purposes other than those specified in this Code, for each such offense
and regulations promulgated hereunder, shall, after an appropriate shall, upon conviction, be punished by a fine of not exceeding one hundred
administrative proceeding, be dismissed from the service with prejudice to thousand pesos (P100,000) and/or imprisonment for a period of not
re-employment, and upon conviction by a court of competent jurisdiction, exceeding six (6) years in the discretion of the Court. If the offender is a
suffer an imprisonment of not less than one (1) year and a fine of not less government official or employee, he shall, in addition, be dismissed from
then one thousand (P1,000.00) pesos. The survey, classification or release the service with prejudice to reinstatement and with disqualification from
of forestlands shall be null and void. holding any elective or appointive office.
If the offender is a corporation, partnership or association, the officers and
Section 85 directors thereof shall be liable.
Tax Declaration on Real Property
Imprisonment for a period of not less than two (2) nor more than four (4) Section 88
years and perpetual disqualification from holding an elective or appointive Sale of Wood Products
BIA | Environmental Law | 87
No person shall sell or offer for sale any log, lumber, plywood or other Reports and complaints regarding the commission of any of the offenses
manufactured wood products in the international or domestic market unless defined in this Chapter, not committed in the presence of any forest officer
he complies with grading rules and established or to be established by the or employee, or any personnel of the Philippine Constabulary/Philippine
Government. National Police or any of the deputized officers or officials, shall immediately
Failure to adhere to the established grading rules and standards, or any act be investigated by the forest officer assigned in the area or any personnel of
of falsification of the volume of logs, lumber, or other forest products shall the Philippine Constabulary/Philippine National Police where the offense was
be a sufficient cause for the suspension of the export, sawmill, or other allegedly committed, who shall thereupon receive the evidence supporting
license or permit authorizing the manufacture or sale or such products for a the report or complaint.
period of not less than two (2) years. If there is prima facie evidence to support the complaint or report, the
A duly accredited representative of the Bureau shall certify to the investigating forest officer and/or members of the Philippine
compliance by the licenses with grading rules. Constabulary/Philippine National Police shall file the necessary complaint
Every dealer in lumber and other building material covered by this Code with the appropriate official authorized by law to conduct a preliminary
shall issue an invoice for each sale of such material and such invoice shall investigation of criminal cases and file an information in Court. [As amended
state that the kind, standard and size of material sold to each purchaser in by PD No. 1775]
exactly the same as described in the invoice. Any violation of this section
shall be sufficient ground for the suspension of the dealer’s license for a Section 89-A
period of not less than two (2) years and, in addition thereto, the dealer The Armed Forces of the Philippines shall organize a special force in every
shall be punished for each such offense by a fine of not less than two region to help enforce the provisions of this act under such rules and
hundred pesos (P200.00) or the total value of the invoice, whichever is regulations as may be agreed upon by the Secretaries of National Defense
greater. and Natural Resources. [As inserted by PD No. 1559.]

Section 89 Section 89-B


Arrest; Institution of Criminal Actions Administrative Authority
A forest officer or employee of the Bureau or any personnel of the Philippine of the Director to Impose Fines
Constabulary/ Philippine National Police shall arrest even without warrant In all cases of violations of this Code and other forest laws, rules and
any person who has committed or is committing in his presence any of the regulations where fine is the principal penalty, the Director is hereby
offenses defined in this Chapter. He shall also seize and confiscate, in favor authorized to impose administratively the penalty consisting of the fine. [As
of the Government, the tools and equipment used in committing the inserted by PD No. 1559]
offense, and the forest products cut, gathered or taken by the of offender in
the process of committing the offense. The arresting forest officer or Section 90
employee shall thereafter deliver within six (6) hours from the time of arrest Separability Clause
and seizure, the offender and the confiscated forest products, tools and Should any provision herein be subsequently declared unconstitutional, the
equipment to, and file the proper complaint with, the appropriate official same shall not affect the validity or the legality of the other provisions.
designated by law to conduct preliminary investigation and file information
in Court. Section 91
If the arrest and seizure are made in the forest, far from the authorities Repealing Clause
designated by law to conduct preliminary investigations, the delivery to, and Presidential Decree Nos. 330, and 389, C.A. No. 452, R.A. No. 4715 and all
filing of the complaint with, the latter shall be done within a reasonable time laws, orders, rules and regulations or any part thereof which are
sufficient to the place of delivery. The seized products, materials and inconsistent herewith are hereby repealed or amended accordingly.
equipment shall be immediately disposed of in accordance with forestry
administrative orders promulgated by the Department Head. Section 92
The Department Head may deputize any agency, barangay or barrio official, Date of Effectivity
or any qualified person to protect the forest and exercise the power or This Code shall take effect immediately upon promulgation.
authority provided for in the preceding paragraph.
BIA | Environmental Law | 88
EXECUTIVE ORDER NO. 277 July 25, 1987 Code: Provided, That in the case of partnerships, associations, or
corporations, the officers who ordered the cutting, gathering,
AMENDING SECTION 68 OF PRESIDENTIAL DECREE (P.D.) NO. collection or possession shall be liable, and if such officers are
705, AS AMENDED, OTHERWISE KNOWN AS THE REVISED aliens, they shall, in addition to the penalty, be deported without
FORESTRY CODE OF THE PHILIPPINES, FOR THE PURPOSE OF further proceedings on the part of the Commission on Immigration
PENALIZING POSSESSION OF TIMBER OR OTHER FOREST and Deportation.
PRODUCTS WITHOUT THE LEGAL DOCUMENTS REQUIRED BY
EXISTING FOREST LAWS, AUTHORIZING THE CONFISCATION OF "The court shall further order the confiscation in favor of the
ILLEGALLY CUT, GATHERED. REMOVED AND POSSESSED FOREST government of the timber or any forest products cut, gathered,
PRODUCTS, AND GRANTING REWARDS TO INFORMERS OF collected, removed, or possessed as well as the machinery,
VIOLATIONS OF FORESTRY LAWS, RULES AND REGULATIONS equipment, implements and tools illegally used in the area where
the timber or forest products are found."
WHEREAS, there is an urgency to conserve the remaining forest resources
of the country for the benefit and welfare of the present and future Sec. 2. Presidential Decree No. 705, as amended, is hereby further
generations of Filipinos; amended by adding Sections 68-A and 68-B which shall read as follows:

WHEREAS, our forest resources may be effectively conserved and protected "Sec. 68-A. Administrative Authority of the Department Head or His
through the vigilant enforcement and implementation of our forestry laws, Duly Authorized Representative to Order Confiscation. In all cases
rules and regulations; of violations of this Code or other forest laws, rules and regulations,
the Department Head or his duly authorized representative, may
WHEREAS, the implementation of our forest laws suffers from technical order the confiscation of any forest products illegally cut, gathered,
difficulties, due to certain inadequacies in the penal provisions of the removed or possessed or abandoned, and all conveyances used
Revised Forestry Code of the Philippines; and either by land, water or air in the commission of the offense and to
dispose of the same in accordance with pertinent laws, regulations
or policies on the matter.
WHEREAS, to overcome these difficulties, there is a need to penalize certain
acts to make our forestry laws more responsive to present situations and
realities; "Sec. 68-B. Rewards to Informants. Any person who shall provide
any information leading to the apprehension and conviction of any
offender for any violation of this Code or other forest laws, rules
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby order: and regulations, or confiscation of forest products shall be given a
reward in the amount of twenty per centum (20%) of the proceeds
of the confiscated forest products."
Sec. 1. Section 68 of Presidential Decree (P.D.) No. 705, as amended, is
hereby amended to read as follows:
Sec. 3. All laws, orders, issuances, rules and regulations or parts thereof
inconsistent with this Executive Order are hereby repealed or modified
"Sec. 68. Cutting, Gathering and/or collecting Timber, or Other
accordingly.
Forest Products Without License. Any person who shall cut, gather,
collect, removed timber or other forest products from any forest
land, or timber from alienable or disposable public land, or from Sec. 4. This Executive Order shall take effect after fifteen days following its
publication either in the Official Gazette or in a newspaper of general
private land, without any authority, or possess timber or other
forest products without the legal documents as required under circulation in the Philippines.
existing forest laws and regulations, shall be punished with the
penalties imposed under Articles 309 and 310 of the Revised Penal
BIA | Environmental Law | 89
G.R. No. 79538 October 18, 1990 of petitioner and nine other forest concessionaires, pursuant to presidential
FELIPE YSMAEL, JR. & CO., INC. vs. DEPUTY EXECUTIVE instructions and a memorandum order of the Minister of Natural Resources
SECRETARY, ET AL. Teodoro Pena [Annex "5" of the Petition; Rollo, p. 49];
(c) that on August 25, 1983, petitioner received a telegram from the
THIRD DIVISION Bureau, the contents of which were as follows:
[G.R. No. 79538. October 18, 1990.] PURSUANT TO THE INSTRUCTIONS OF THE PRESIDENT YOU ARE
REQUESTED TO STOP ALL LOGGING OPERATIONS TO CONSERVE
FELIPE YSMAEL, JR. & CO., INC., petitioner, vs. THE DEPUTY EXECUTIVE REMAINING FORESTS PLEASE CONDUCT THE ORDERLY PULLOUT OF
SECRETARY, THE SECRETARY OF ENVIRONMENT AND NATURAL LOGGING MACHINERIES AND EQUIPMENT AND COORDINATE WITH THE
RESOURCES, THE DIRECTOR OF THE BUREAU OF FOREST DEVELOPMENT RESPECTIVE DISTRICT FORESTERS FOR THE INVENTORY OF LOGS CUT
and TWIN PEAKS DEVELOPMENT AND REALTY CORPORATION, PRIOR TO THIS ORDER THE SUBMISSION OF A COMPLIANCE REPORT
respondents. WITHIN THIRTY DAYS SHALL BE APPRECIATED - [Annex "4" of the
Petition; Rollo, p. 48];
Tañada, Vivo & Tan for petitioner. (d) That after the cancellation of its timber license agreement, it
Antonio E. Escober and Jurado Law Office for respondent Twin Peaks immediately sent a letter addressed to then President Ferdinand Marcos
Development Corporation. which sought reconsideration of the Bureau's directive, citing in support
thereof its contributions to forest conservation and alleging that it was not
DECISION given the opportunity to be heard prior to the cancellation of its logging
operations [Annex "6" of the Petition; Rollo, pp 50-53], but no favorable
CORTES, J p: action was taken on this letter;
Soon after the change of government in February 1986, petitioner sent a (e) That barely one year thereafter, approximately one-half or 26,000
letter dated March 17, 1986 to the Office of the President, and another hectares of the area formerly covered by TLA No. 87 was re-awarded to
letter dated April 2, 1986 to Minister Ernesto Maceda of the Ministry of Twin Peaks Development and Realty Corporation under TLA No. 356 which
Natural Resources [MNR], seeking: (1) the reinstatement of its timber was set to expire on July 31, 2009, while the other half was allowed to be
license agreement which was cancelled in August 1983 during the Marcos logged by Filipinas Loggers, Inc. without the benefit of a formal award or
administration; (2) the revocation of TLA No. 356 which was issued to Twin license; and,
Peaks Development and Realty Corporation without public bidding and in (f) That the latter entities were controlled or owned by relatives or
violation of forestry laws, rules and regulations; and, (3) the issuance of an cronies of deposed President Ferdinand Marcos.
order allowing petitioner to take possession of all logs found in the
concession area [Annexes "6" and "7" of the Petition; Rollo, pp. 54-63] Acting on petitioner's letter, the MNR through then Minister Ernesto Maceda
issued an order dated July 22, 1986 denying petitioner's request. The
Petitioner made the following allegations: Ministry ruled that a timber license was not a contract within the due
(a) That on October 12, 1965, it entered into a timber license process clause of the Constitution, but only a privilege which could be
agreement designated as TLA No. 87 with the Department of Agriculture withdrawn whenever public interest or welfare so demands, and that
and Natural Resources, represented by then Secretary Jose Feliciano, petitioner was not discriminated against in view of the fact that it was
wherein it was issued an exclusive license to cut, collect and remove timber among ten concessionaires whose licenses were revoked in 1983. Moreover,
except prohibited species within a specified portion of public forest land with emphasis was made of the total ban of logging operations in the provinces
an area of 54,920 hectares located in the municipality of Maddela, province of Nueva Ecija, Nueva Vizcaya, Quirino and Ifugao imposed on April 2,
of Nueva Vizcaya ** from October 12, 1965 until June 30, 1990; 1986, thus:
(b) That on August 18, 1983, the Director of the Bureau of Forest xxx xxx xxx
Development [hereinafter referred to as "Bureau"], Director Edmundo It should be recalled that [petitioner's] earlier request for reinstatement has
Cortes, issued a memorandum order stopping all logging operations in been denied in view of the total ban of all logging operations in the
Nueva Vizcaya and Quirino provinces, and cancelling the logging concession provinces of Nueva Ecija, Nueva Vizcaya, Quirino and Ifugao which was
imposed for reasons of conservation and national security.
BIA | Environmental Law | 90
The Ministry imposed the ban because it realizes the great responsibility it President, acting through then Deputy Executive Secretary Catalino
bear [sic] in respect to forests. It considers itself the trustee thereof. This Macaraig, denied petitioner's appeal for lack of merit. The Office of the
being the case, it has to ensure the availability of forest resources not only President ruled that the appeal of petitioner was prematurely filed, the
for the present, but also for the future generations of Filipinos. matter not having been terminated in the MNR. Petitioner's motion for
reconsideration was denied on August 14, 1987.
On the other hand, the activities of the insurgents in these parts of the
country are well documented. Their financial demands on logging Hence, petitioner filed directly with this Court a petition for certiorari, with
concessionaires are well known. The government, therefore, is well within prayer for the issuance of a restraining order or writ of preliminary
its right to deprive its enemy of sources of funds in order to preserve itself, injunction, on August 27, 1987. On October 13, 1987, it filed a supplement
its established institutions and the liberty and democratic way of life of its to its petition for certiorari. Thereafter, public and private respondents
people. submitted their respective comments, and petitioner filed its consolidated
xxx xxx xxx reply thereto. In a resolution dated May 22, 1989, the Court resolved to give
[Annex "9" of the Petition, pp. 2-4; Rollo, pp. 65-67.] due course to the petition. prcd
Petitioner moved for reconsideration of the aforestated order reiterating,
among others, its request that TLA No. 356 issued to private respondent be After a careful study of the circumstances in the case at bar, the Court finds
declared null and void. The MNR however denied this motion in an order several factors which militate against the issuance of a writ of certiorari in
dated September 15, 1986, stating in part: favor of petitioner.
xxx xxx xxx 1. Firstly, the refusal of public respondents herein to reverse final and
Regarding [petitioner's] request that the award of a 26,000 hectare portion executory administrative orders does not constitute grave abuse of
of TLA No. 87 to Twin Peaks Realty Development Corporation under TLA discretion amounting to lack or excess of jurisdiction.
No. 356 be declared null and void, suffice it to say that the Ministry is now
in the process of reviewing all contracts, permits or other form of privileges It is an established doctrine in this jurisdiction that the decisions and orders
for the exploration, development, exploitation, or utilization of natural of administrative agencies have upon their finality, the force and binding
resources entered into, granted, issued or acquired before the issuance of effect of a final judgment within the purview of the doctrine of res judicata.
Proclamation No. 3, otherwise known as the Freedom Constitution for the These decisions and orders are as conclusive upon the rights of the affected
purpose of amending, modifying or revoking them when the national parties as though the same had been rendered by a court of general
interest so requires. jurisdiction. The rule of res judicata thus forbids the reopening of a matter
xxx xxx xxx once determined by competent authority acting within their exclusive
The Ministry, through the Bureau of Forest Development, has jurisdiction jurisdiction [See Brillantes v. Castro, 99 Phil. 497 (1956); Ipekdjian
and authority over all forest lands. On the basis of this authority, the Merchandising Co., Inc. v. Court of Tax Appeals, G.R. No. L-15430,
Ministry issued the order banning all logging operations/activities in Quirino September 30, 1963, 9 SCRA 72; San Luis v. Court of Appeals, G.R. No.
province, among others, where movant's former concession area is located. 80160, June 26, 1989].
Therefore, the issuance of an order disallowing any person or entity from
removing cut or uncut logs from the portion of TLA No. 87, now under TLA In the case at bar, petitioner's letters to the Office of the President and the
No. 356, would constitute an unnecessary or superfluous act on the part of MNR [now the Department of Environment and Natural Resources (DENR)]
the Ministry. dated March 17, 1986 and April 2, 1986, respectively, sought the
xxx xxx xxx reconsideration of a memorandum order issued by the Bureau of Forest
[Annex "11" of the Petition, pp. 3-4; Rollo, pp. 77-78.] Development which cancelled its timber license agreement in 1983, as well
On November 26, 1986, petitioner's supplemental motion for as the revocation of TLA No. 356 subsequently issued by the Bureau to
reconsideration was likewise denied. Meanwhile, per MNR Administrative private respondents in 1984.
Order No. 54, series of 1986, issued on November 26, 1986, the logging
ban in the province of Quirino was lifted. But as gleaned from the record, petitioner did not avail of its remedies
Petitioner subsequently appealed from the orders of the MNR to the Office under the law, i.e. Section 8 of Pres. Dec. No. 705 as amended, for
of the President. In a resolution dated July 6, 1987, the Office of the attacking the validity of these administrative actions until after 1986. By the
BIA | Environmental Law | 91
time petitioner sent its letter dated April 2, 1986 to the newly appointed petitioner susceptible to the adverse legal consequences of laches
Minister of the MNR, requesting reconsideration of the above Bureau [Municipality of Carcar v. Court of First Instance of Cebu, G.R. No. L-31628,
actions, these were already settled matters as far as petitioner was December 27, 1982, 119 SCRA 392].
concerned [See Rueda v. Court of Agrarian Relations, 106 Phil. 300 (1959);
Danan v. Aspillera, G.R. No. L-17305, November 28, 1962, 6 SCRA 609; Laches is defined as the failure or neglect for an unreasonable and
Ocampo v. Arboleda, G.R. No. L-48190, August 31, 1987, 153 SCRA 374]. unexplained length of time to do that which by exercising due diligence,
could or should have been done earlier, or to assert a right within a
No particular significance can be attached to petitioner's letter dated reasonable time, warranting a presumption that the party entitled thereto
September 19, 1983 which petitioner claimed to have sent to then President has either abandoned it or declined to assert it [Tijam v. Sibonghanoy, G.R.
Marcos [Annex "6" of Petition, Rollo, pp. 50-53], seeking the reconsideration No. L-21450, April 15, 1968, 23 SCRA 29; Seno v. Mangubat, G.R. No. L-
of the 1983 order issued by Director Cortes of the Bureau. It must be 44339, December 2, 1987, 156 SCRA 113]. The rule is that unreasonable
pointed out that the averments in this letter are entirely different from the delay on the part of a plaintiff in seeking to enforce an alleged right may,
charges of fraud against officials under the previous regime made by depending upon the circumstances, be destructive of the right itself. Verily,
petitioner in its letters to public respondents herein. In the letter to then the laws aid those who are vigilant, not those who sleep upon their rights
President Marcos, petitioner simply contested its inclusion in the list of (Vigilantibus et non dormientibus jura subveniunt) [See Buenaventura v.
concessionaires, whose licenses were cancelled, by defending its record of David, 37 Phil. 435 (1918)].
selective logging and reforestation practices in the subject concession area.
Yet, no other administrative steps appear to have been taken by petitioner In the case at bar, petitioner waited for at least three years before it finally
until 1986, despite the fact that the alleged fraudulent scheme became filed a petition for certiorari with the Court attacking the validity of the
apparent in 1984 as evidenced by the awarding of the subject timber assailed Bureau actions in 1983 and 1984. Considering that petitioner,
concession area to other entities in that year. throughout the period of its inaction, was not deprived of the opportunity to
seek relief from the courts which were normally operating at the time, its
2. Moreover, petitioner is precluded from availing of the benefits of a delay constitutes unreasonable and inexcusable neglect, tantamount to
writ of certiorari in the present case because he failed to file his petition laches. Accordingly, the writ of certiorari requiring the reversal of these
within a reasonable period. orders will not lie.
The principal issue ostensibly presented for resolution in the instant petition
is whether or not public respondents herein acted with grave abuse of 3. Finally, there is a more significant factor which bars the issuance of
discretion amounting to lack or excess of jurisdiction in refusing to overturn a writ of certiorari in favor of petitioner and against public respondents
administrative orders issued by their predecessors in the past regime. Yet, herein. It is precisely this factor which prevents the Court from departing
what the petition ultimately seeks is the nullification of the Bureau orders from the general application of the rules enunciated above.
cancelling TLA No. 87 and granting TLA No. 356 to private respondent,
which were issued way back in 1983 and 1984, respectively. A cursory reading of the assailed orders issued by public respondent
Minister Maceda of the MNR, which were affirmed by the Office of the
Once again, the fact that petitioner failed to seasonably take judicial President, will disclose public policy considerations which effectively forestall
recourse to have the earlier administrative actions reviewed by the courts judicial interference in the case at bar.
through a petition for certiorari is prejudicial to its cause. For although no
specific time frame is fixed for the institution of a special civil action for Public respondents herein, upon whose shoulders rests the task of
certiorari under Rule 65 of the Revised Rules of Court, the same must implementing the policy to develop and conserve the country's natural
nevertheless be done within a "reasonable time". The yardstick to measure resources, have indicated an ongoing department evaluation of all timber
the timeliness of a petition for certiorari is the "reasonableness of the length license agreements entered into, and permits or licenses issued, under the
of time that had expired from the commission of the acts complained of up previous dispensation. In fact, both the executive and legislative
to the institution of the proceeding to annul the same" [Toledo v. Pardo, departments of the incumbent administration are presently taking stock of
G.R. No. 56761, November 19, 1982, 118 SCRA 566, 571]. And failure to file its environmental policies with regard to the utilization of timber lands and
the petition for certiorari within a reasonable period of time renders the
BIA | Environmental Law | 92
developing an agenda for future programs for their conservation and and manage natural resources, and the proper parties who should enjoy the
rehabilitation. LibLex privilege of utilizing these resources [Director of Forestry v. Muñoz, G.R. No.
L-24796, June 28, 1968, 23 SCRA 1183; Lim, Sr. v. The Secretary of
The ongoing administrative reassessment is apparently in response to the Agriculture and Natural Resources, G.R. No. L-26990, August 31, 1970, 34
renewed and growing global concern over the despoliation of forest lands SCRA 751]. Timber licenses, permits and license agreements are the
and the utter disregard of their crucial role in sustaining a balanced principal instruments by which the State regulates the utilization and
ecological system. The legitimacy of such concern can hardly be disputed, disposition of forest resources to the end that public welfare is promoted.
most especially in this country. The Court takes judicial notice of the And it can hardly be gainsaid that they merely evidence a privilege granted
profligate waste of the country's forest resources which has not only by the State to qualified entities, and do not vest in the latter a permanent
resulted in the irreversible loss of flora and fauna peculiar to the region, but or irrevocable right to the particular concession area and the forest products
has produced even more disastrous and lasting economic and social effects. therein. They may be validly amended, modified, replaced or rescinded by
The delicate balance of nature having been upset, a vicious cycle of floods the Chief Executive when national interests so require. Thus, they are not
and droughts has been triggered and the supply of food and energy deemed contracts within the purview of the due process of law clause [See
resources required by the people seriously depleted. Sections 3 (ee) and 20 of Pres. Decree No. 705, as amended. Also, Tan v.
While there is a desire to harness natural resources to amass profit and to Director of Forestry, G.R. No. L-24548, October 27, 1983, 125 SCRA 302].
meet the country's immediate financial requirements, the more essential
need to ensure future generations of Filipinos of their survival in a viable In fine, the legal precepts highlighted in the foregoing discussion more than
environment demands effective and circumspect action from the suffice to justify the Court's refusal to interfere in the DENR evaluation of
government to check further denudation of whatever remains of the forest timber licenses and permits issued under the previous regime, or to pre-
lands. Nothing less is expected of the government, in view of the clear empt the adoption of appropriate corrective measures by the department.
constitutional command to maintain a balanced and healthful ecology.
Section 16 of Article II of the 1987 Constitution provides: Nevertheless, the Court cannot help but express its concern regarding
SEC. 16. The State shall protect and promote the right of the people alleged irregularities in the issuance of timber license agreements to a
to a balanced and healthful ecology in accord with the rhythm and harmony number of logging concessionaires.
of nature. The grant of licenses or permits to exploit the country's timber resources, if
Thus, while the administration grapples with the complex and multifarious done in contravention of the procedure outlined in the law, or as a result of
problems caused by unbridled exploitation of these resources, the judiciary fraud and undue influence exerted on department officials, is indicative of
will stand clear. A long line of cases establish the basic rule that the courts an arbitrary and whimsical exercise of the State's power to regulate the use
will not interfere in matters which are addressed to the sound discretion of and exploitation of forest resources. The alleged practice of bestowing
government agencies entrusted with the regulation of activities coming "special favors" to preferred individuals, regardless of merit, would be an
under the special technical knowledge and training of such agencies [See abuse of this power. And this Court will not be a party to a flagrant mockery
Espinosa v. Makalintal, 79 Phil. 134 (1947); Coloso v. Board of Accountancy, of the avowed public policy of conservation enshrined in the 1987
92 Phil 938 (1953); Pajo v. Ago, 108 Phil. 905 (1960); Suarez v. Reyes, G.R. Constitution. Therefore, should the appropriate case be brought showing a
No. L-19828, February 28, 1963, 7 SCRA 461; Ganitano v. Secretary of clear grave abuse of discretion on the part of officials in the DENR and
Agriculture and Natural Resources, G.R. No. L-21167, March 31, 1966, 16 related bureaus with respect to the implementation of this public policy, the
SCRA 543; Villegas v. Auditor General, G.R. No. L-21352, November 29, Court will not hesitate to step in and wield its authority, when invoked, in
1966, 18 SCRA 877; Manuel v. Villena, G.R. No. L-28218, February 27, the exercise of judicial powers under the Constitution [Section 1, Article
1971, 37 SCRA 745; Lacuesta v. Herrera, G.R. No. L-33646, January 28, VIII].
1975, 62 SCRA 115; Lianga Bay Logging Co., Inc. v. Enage, G.R. No. L-
30637, July 16, 1987, 152 SCRA 80]. More so where, as in the present case, However, petitioner having failed to make out a case showing grave abuse
the interests of a private logging company are pitted against that of the of discretion on the part of public respondents herein, the Court finds no
public at large on the pressing public policy issue of forest conservation. For basis to issue a writ of certiorari and to grant any of the affirmative reliefs
this Court recognizes the wide latitude of discretion possessed by the sought. LLphil
government in determining the appropriate actions to be taken to preserve
BIA | Environmental Law | 93
WHEREFORE, the present petition is DISMISSED. SO ORDERED. Resources, and THE HONORABLE ERIBERTO U. ROSARIO, Presiding Judge
of the RTC, Makati, Branch 66, respondents.
G.R. No. 101083 July 30, 1993
JUAN ANTONIO, ET AL. vs. FULGENCIO S. FACTORAN, JR. Oposa Law Office for petitioners.
The Solicitor General for respondents.
EN BANC
[G.R. No. 101083. July 30, 1993.] SYLLABUS
1. CONSTITUTIONAL LAW; DECLARATION OF PRINCIPLES AND
JUAN ANTONIO, ANNA ROSARIO and JOSE ALFONSO, all surnamed OPOSA, STATE POLICIES; RIGHT TO A BALANCED AND HEALTHFUL ECOLOGY,
minors, and represented by their parents ANTONIO and RIZALINA OPOSA, CONSTRUED. — The complaint focuses on one specific fundamental legal
ROBERT A NICOLE SADIUA, minor, represented by her parents CALVIN and right — the right to a balanced and healthful ecology which, for the first
ROBERTA SADIUA, CARLO, AMANDA SALUD and PATRISHA, all surnamed time in our nation's constitutional history, is solemnly incorporated in the
FLORES, minors and represented by their parents ENRICO and NIDA fundamental law. Section 16, Article II of the 1987 Constitution explicitly
FLORES, GIANINA DITA R. FORTUN, minor, represented by her parents provides: "SEC. 16. The State shall protect and advance the right of the
SIGFRID and DOLORES FORTUN, GEORGE II and MA. CONCEPCION, all people to a balanced and healthful ecology in accord with the rhythm and
surnamed MISA, minors and represented by their parents GEORGE and harmony of nature." This right unites with the right to health which is
MYRA MISA, BENJAMIN ALAN V. PASIGAN, minor, represented by his provided for in the preceding section of the same article: "SEC. 15. The
parents ANTONIO and ALICE PESIGAN, JOVIE MARIE ALFARO, minor, State shall protect and promote the right to health of the people and instill
represented by her parents JOSE and MARIA VIOLETA ALFARO, MARIA health consciousness among them." While the right to a balanced and
CONCEPCION T. CASTRO, minor, represented by her parents FREDENIL and healthful ecology is to be found under the Declaration of Principles and
JANE CASTRO, JOHANNA DESAMPARADO, minor, represented by her State Policies and not under the Bill of Rights, it does not follow that it is
parents JOSE and ANGELA DESAMPARADO, CARLO JOAQUIN T. NARVASA, less important than any of the civil and political rights enumerated in the
minor, represented by his parents GREGORIO II and CRISTINE CHARITY latter. Such a right belongs to a different category of rights altogether for it
NARVASA, MA. MARGARITA, JESUS IGNACIO, MA. ANGELA and MARIE concerns nothing less than self-preservation and self-perpetuation — aptly
GABRIELLE, all surnamed SAENZ, minors, represented by their parents and fittingly stressed by the petitioners — the advancement of which may
ROBERTO and AURORA SAENZ, KRISTINE, MARY ELLEN, MAY, GOLDA even be said to predate all governments and constitutions. As a matter of
MARTHE and DAVID IAN, all surnamed KING, minors, represented by their fact, these basic rights need not even be written in the Constitution for they
parents MARIO and HAYDEE KING, DAVID, FRANCISCO and THERESE are assumed to exist from the inception of humankind. If they are now
VICTORIA, all surnamed ENDRIGA, minors, represented by their parents explicitly mentioned in the fundamental charter, it is because of the well-
BALTAZAR and TERESITA ENDRIGA, JOSE MA. and REGINA MA., all founded fear of its framers that unless the rights to a balanced and
surnamed ABAYA, minors, represented by their parents ANTONIO and healthful ecology and to health are mandated as state policies by the
MARICA ABAYA, MARILIN, MARIO, JR. and MARIETTE, all surnamed Constitution itself, thereby highlighting their continuing importance and
CARDAMA, minors, represented by their parents MARIO and LINA imposing upon the state a solemn obligation to preserve the first and
CARDAMA, CLARISSA, ANN MARIE, NAGEL and IMEE LYN, all surnamed protect and advance the second, the day would not be too far when all else
OPOSA, minors and represented by their parents RICARDO and MARISSA would be lost not only for the present generation, but also for those to
OPOSA, PHILIP JOSEPH, STEPHEN JOHN and ISAIAH JAMES, all surnamed come — generations which stand to inherit nothing but parched earth
QUIPIT, minors, represented by their parents JOSE MAX and VILMI QUIPIT, incapable of sustaining life. The right to a balanced and healthful ecology
BUGHAW CIELO, CRISANTO, ANNA, DANIEL and FRANCISCO, all surnamed carries with it the correlative duty to refrain from impairing the
BIBAL, minors, represented by their parents FRANCISCO, JR. and environment.
MILAGROS BIBAL, and THE PHILIPPINE ECOLOGICAL NETWORK, INC., 2. ID.; ID.; TIMBER LICENSES; NATURE THEREOF; NON-IMPAIRMENT
petitioners, vs. THE HONORABLE FULGENCIO S. FACTORAN, JR., in his CLAUSE MAY NOT BE INVOKED; CASE AT BAR. — all licenses may thus be
capacity as the Secretary of the Department of Environment and Natural revoked or rescinded by executive action. It is not a contract, property or a
property right protected by the due process clause of the Constitution. In
Tan vs. Director of Forestry, (125 SCRA 302, 325 [1983]) This Court held: ".
BIA | Environmental Law | 94
. . A timber license is an instrument by which the State regulates the emphatically set forth in Nebia vs. New York, (291 U.S. 502, 523, 78 L. ed.
utilization and disposition of forest resources to the end that public welfare 940 947-949) quoted in Philippine American Life Insurance Co. vs. Auditor
is promoted. A timber license is not a contract within the purview of the due General, (22 SCRA 135, 146-147 [1968]) to wit: "'Under our form of
process clause; it is only a license or privilege, which can be validly government the use of property and the making of contracts are normally
withdrawn whenever dictated by public interest or public welfare as in this matters of private and not of public concern. The general rule is that both
case. 'A license is merely a permit or privilege to do what otherwise would shall be free of governmental interference. But neither property rights nor
be unlawful, and is not a contract between the authority, federal, state, or contract rights are absolute; for government cannot exist if the citizen may
municipal, granting it and the person to whom it is granted; neither is it at will use his property to the detriment of his fellows, or exercise his
property or a property right, nor does it create a vested right; nor is it freedom of contract to work them harm. Equally fundamental with the
taxation' (37 C.J. 168). Thus, this Court held that the granting of license private right is that of the public to regulate it in the common interest.'" In
does not create irrevocable rights, neither is it property or property rights court, the non-impairment clause must yield to the police power of the
(People vs. Ong Tin, 54 O.G. 7576) . . ." We reiterated this pronouncement state. (Ongsiako vs. Gamboa, 86 Phil. 50 [1950]; Abe vs. Foster Wheeler
in Felipe Ysmael, Jr. & Co., Inc. vs. Deputy Executive Secretary: (190 SCRA Corp., supra; Phil. American Life Insurance Co. vs. Auditor General, supra;
673 684 [1990]) ". . . Timber licenses, permits and license agreements are Alalyan vs. NLRC, 24 scra 172 [1968]; Victoriano vs. Elizalde Rope Workers
the principal instruments by which the State regulates the utilization and Union, 59 SCRA 54 [1974]; Kabiling vs. National Housing Authority, 156
disposition of forest resources to the end that public welfare is promoted. SCRA 623 [1987]).
And it can hardly be gainsaid that they merely evidence a privilege granted 3. ID.; JUDICIAL REVIEW; NO LONGER IMPAIRED BY THE POLITICAL
by the State to qualified entities, and do not vest in the latter a permanent QUESTION DOCTRINE; RATIONALE. — It must, nonetheless, be
or irrevocable right to the particular concession area and the forest products emphasized that the political question doctrine is no longer the
therein. They may be validly amended, modified, replaced or rescinded by insurmountable obstacle to the exercise of judicial power or the
the Chief Executive when national interests so require. Thus, they are not impenetrable shield that protects executive and legislative actions from
deemed contracts within the purview of the due process of law clause [See judicial inquiry or review. The second paragraph of section 1, Article VIII of
Sections 3(ee) and 20 of Pres. Decree No. 705, as amended. Also, Tan v. the Constitution states that: "Judicial power includes the duty of the courts
Director of Forestry, G.R. No. L-24548, October 27, 1983, 125 SCRA 302]." of justice to settle actual controversies involving rights which are legally
Since timber licenses are not contracts, the non-impairment clause, which demandable and enforceable, and to determine whether or not there has
reads: "SEC. 10. No law impairing the obligation of contracts shall be been a grave abuse of discretion amounting to lack or excess of jurisdiction
passed." In the second place, even if it is to be assumed that the same are on the part of any branch or instrumentality of the Government."
contracts, the instant case does not involve a law or even an executive Commenting on this provision in his book, Philippine Political Law, Mr.
issuance declaring the cancellation or modification of existing timber Justice Isagani A. Cruz, a distinguished member of this Court, says: "The
licenses. Hence, the non-impairment clause cannot as yet be invoked. first part of the authority represents the traditional concept of judicial
Nevertheless, granting further that a law has actually been passed power, involving the settlement of conflicting rights as conferred by law.
mandating cancellations or modifications, the same cannot still be The second part of the authority represents a broadening of judicial power
stigmatized as a violation of the non-impairment clause. This is because by to enable the courts of justice to review what was before forbidden
its very nature and purpose, such a law could have only been passed in the territory, to wit, the discretion of the political departments of the
exercise of the police power of the state for the purpose of advancing the government. As worded, the new provision vests in the judiciary, and
right of the people to a balanced and healthful ecology, promoting their particularly the Supreme Court, the power to rule upon even the wisdom of
health and enhancing the general welfare. In Abe vs. Foster Wheeler Corp., the decisions of the executive and the legislature and to declare their acts
(110 Phil. 198, 203 [1960]) this Court stated: "The freedom of contract, invalid for lack or excess of jurisdiction because tainted with grave abuse of
under our system of government, is not meant to be absolute. The same is discretion. The catch, of course, is the meaning of 'grave abuse of
understood to be subject to reasonable legislative regulation aimed at the discretion,' which is a very elastic phrase that can expand or contract
promotion of public health, moral, safety and welfare. In other words, the according to the disposition of the judiciary." In Daza vs. Singson, (180
constitutional guaranty of non-impairment of obligations of contract is SCRA 496, 501-502 [1989]. See also Coseteng vs. Mitra, 187 SCRA 377
limited by the exercise of the police power of the State, in the interest of [1990]; Gonzales vs. Macaraig, 191 SCRA 844 [1991]; Bengzon vs. Senate
public health, safety, moral and general welfare." The reason for this is Blue Ribbon Committee, 203 SCRA 767 [1991]) Mr. Justice Cruz, now
BIA | Environmental Law | 95
speaking for this Court, noted: "In the case now before us, the jurisdictional specific averments under the subheading CAUSE OF ACTION, to be
objection becomes even less tenable and decisive. The reason is that, even adequate enough to show, prima facie, the claimed violation of their rights.
if we were to assume that the issue presented before us was political in On the basis thereof, they may thus be granted, wholly or partly, the reliefs
nature, we would still not be precluded from resolving it under the prayed for.
expanded jurisdiction conferred upon us that now covers, in proper cases, FELICIANO, J., concurring:
even the political question. Article VII, Section 1, of the Constitution clearly 1. REMEDIAL LAW; ACTIONS; LOCUS STANDI, CONSTRUED; CASE AT
provides: . . ." BAR. — The Court explicitly states that petitioners have the locus standi
4. REMEDIAL LAW; PLEADINGS; CAUSE OF ACTION, DEFINED; CASE necessary to sustain the bringing and maintenance of this suit (Decision, pp.
AT BAR. — the right of the petitioners (and all those they represent) to a 11-12). Locus standi is not a function of petitioners' claim that their suit is
balanced and healthful ecology is as clear as the DENR's duty — under its properly regarded as a class suit. I understand locus standi to refer to the
mandate and by virtue of its powers and functions under E.O. No. 192 and legal interest which a plaintiff must have in the subject matter of the suit.
the Administrative Code of 1987 — to protect and advance the said right. A Because of the very broadness of the concept of "class" here involved —
denial or violation of that right by the other who has the correlative duty or membership in this "class" appears to embrace everyone living in the
obligation to respect or protect the same gives rise to a cause of action. country whether now or in the future — it appears to me that everyone who
Petitioners maintain that the granting of the TLAs, which they claim was may be expected to benefit from the course of action petitioners seek to
done with grave abuse of discretion, violated their right to a balanced and require public respondents to take, is vested with the necessary locus
healthful ecology; hence, the full protection thereof requires that no further standi. The Court may be seen therefore to be recognizing a beneficiaries'
TLAs should be renewed or granted. A cause of action is defined as: ". . . an right of action in the field of environmental protection, as against both the
act or omission of one party in violation of the legal right or rights of the public administrative agency directly concerned and the private persons or
other; and its essential elements are legal right of the plaintiff, correlative entities operating in the field or sector of activity involved. Whether such a
obligation of the defendant, and act or omission of the defendant in beneficiaries' right of action may be found under any and all circumstances,
violation of said legal right." (Marao Sugar Central Co. vs. Barrios, 79 Phil. or whether some failure to act, in the first instance, on the part of the
666 [1947]; Community Investment and Finance Corp. vs. Garcia, 88 Phil. governmental agency concerned must be shown ("prior exhaustion of
215 [1951]; Remitere vs. vda. de Yulo, 16 SCRA 251 [1966]; Caseñas vs. administrative remedies"), is not discussed in the decision and presumably
Rosales, 19 SCRA 462 [1967]; Virata vs. Sandiganbayan, 202 SCRA 680 is left for future determination in an appropriate case.
[1991]; Madrona vs. Rosal, 204 SCRA 1 [1991]. 2. CONSTITUTIONAL LAW; DECLARATION OF PRINCIPLES AND
5. ID.; ID.; MOTION TO DISMISS; LACK OF CAUSE OF ACTION, AS A STATE POLICIES; RIGHT TO "A BALANCE AND HEALTHFUL ECOLOGY";
GROUND; RULE; CASE AT BAR. — It is settled in this jurisdiction that in a INTERPRETATION. — The Court has also declared that the complaint has
motion to dismiss based on the ground that the complaint fails to state a alleged and focused upon "one specific fundamental legal right — the right
cause of action, the question submitted to the court for resolution involves to a balanced and healthful ecology" (Decision, p. 14). There is no question
the sufficiency of the facts alleged in the complaint itself. No other matter that "the right to a balanced and healthful ecology" is "fundamental" and
should be considered; furthermore, the truth or falsity of the said that, accordingly, it has been "constitutionalized." But although it is
allegations is beside the point for the truth thereof is deemed hypothetically fundamental in character, I suggest, with very great respect, that it cannot
admitted. The only issue to be resolved in such a case is: admitting such be characterized as "specific," without doing excessive violence to language.
alleged facts to be true, may the court render a valid judgment in It is in fact very difficult to fashion language more comprehensive in scope
accordance with the prayer in the complaint? In Militante vs. Edrosolano, and generalized in character than a right to "a balanced and healthful
this Court laid down the rule that the judiciary should "exercise the utmost ecology." The list of particular claims which can be subsumed under this
care and circumspection in passing upon a motion to dismiss on the ground rubric appears to be entirely open-ended: prevention and control of
of the absence thereof [cause of action] lest, by its failure to manifest a emission of toxic fumes and smoke from factories and motor vehicles; of
correct appreciation of the facts alleged and deemed hypothetically discharge of oil, chemical effluents, garbage and raw sewage into rivers,
admitted, what the law grants or recognizes is effectively nullified. If that inland and coastal waters by vessels, oil rigs, factories, mines and whole
happens, there is a blot on the legal order. The law itself stands in communities; of dumping of organic and inorganic wastes on open land,
disrepute." After a careful examination of the petitioners' complaint, We find streets and thoroughfares; failure to rehabilitate land after strip-mining or
the statements under the introductory affirmative allegations, as well as the open-pit mining; kaingin or slash-and-burn farming; destruction of fisheries,
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coral reefs and other living sea resources through the use of dynamite or branch or instrumentality of the Government." When substantive standards
cyanide and other chemicals; contamination of ground water resources; loss as general as "the right to a balanced and healthy ecology" and "the right to
of certain species of fauna and flora; and so on. The other statements health" are combined with remedial standards as broad ranging as "a grave
pointed out by the Court: Section 3, Executive Order No. 192 dated 10 June abuse of discretion amounting to lack or excess of jurisdiction," the result
1987; Section 1, Title XIV, Book IV of the 1987 Administrative Code; and will be, it is respectfully submitted, to propel courts into the uncharted
P.D. No. 1151, dated 6 June 1977 — all appear to be formulations of policy, ocean of social and economic policy making. At least in respect of the vast
as general and abstract as the constitutional statements of basic policy in area of environmental protection and management, our courts have no
Article II, Sections 16 ("the right — to a balanced and healthful ecology") claim to special technical competence and experience and professional
and 15 ("the right to health"). As a matter of logic, by finding petitioners' qualifications. Where no specific, operable norms and standards are shown
cause of action as anchored on a legal right comprised in the constitutional to exist, then the policy making departments — the legislative and executive
statements above noted, the Court is in effect saying that Section 15 (and departments — must be given a real and effective opportunity to fashion
Section 16) of Article II of the Constitution are self-executing and judicially and promulgate those norms and standards, and to implement them before
enforceable even in their present form. The implications of this doctrine will the courts should intervene.
have to be explored in future cases; those implications are too large and
far-reaching in nature even to be hinted at here. DECISION
3. ID.; RIGHT TO HEALTH; SHOULD SPECIFICALLY EXIST IN OUR
CORPUS OF LAW. — Justice Feliciano suggestion is simply that petitioners DAVIDE, JR., J p:
must, before the trial court, show a more specific legal right — a right cast In a broader sense, this petition bears upon the right of Filipinos to a
in language of a significantly lower order of generality than Article II (15) of balanced and healthful ecology which the petitioners dramatically associate
the Constitution — that is or may be violated by the actions, or failures to with the twin concepts of "inter-generational responsibility" and "inter-
act, imputed to the public respondent by petitioners so that the trial court generational justice." Specifically, it touches on the issue of whether the
can validly render judgment granting all or part of the relief prayed for. To said petitioners have a cause of action to "prevent the misappropriation or
my mind, the Court should be understood as simply saying that such a more impairment" of Philippine rainforests and "arrest the unabated hemorrhage
specific legal right or rights may well exist in our corpus of law, considering of the country's vital life-support systems and continued rape of Mother
the general policy principles found in the Constitution and the existence of Earth."
the Philippine Environment Code, and that the trial court should have given
petitioners an effective opportunity so to demonstrate, instead of aborting The controversy has its genesis in Civil Case No. 90-777 which was filed
the proceedings on a motion to dismiss. before Branch 66 (Makati, Metro Manila) of the Regional Trial Court (RTC),
4. REMEDIAL LAW; CIVIL PROCEDURE; CAUSE OF ACTION; LEGAL National Capital Judicial Region. The principal plaintiffs therein, now the
RIGHTS, AS ESSENTIAL COMPONENTS; STANDARDS. — the legal right principal petitioners, are all minors duly represented and joined by their
which is an essential component of a cause of action be a specific, operable respective parents. Impleaded as an additional plaintiff is the Philippine
legal right, rather than a constitutional or statutory policy, for at least two Ecological Network, Inc. (PENI), a domestic, non-stock and non-profit
(2) reasons. One is that unless the legal right claimed to have been violated corporation organized for the purpose of, inter alia, engaging in concerted
or disregarded is given specification in operational terms, defendants may action geared for the protection of our environment and natural resources.
well be unable to defend themselves intelligently and effectively; in other The original defendant was the Honorable Fulgencio S. Factoran, Jr., then
words, there are due process dimensions to this matter. The second is a Secretary of the Department of Environment and Natural Resources (DENR).
broader-gauge consideration — where a specific violation of law or His substitution in this petition by the new Secretary, the Honorable Angel
applicable regulation is not alleged or proved, petitioners can be expected to C. Alcala, was subsequently ordered upon proper motion by the petitioners.
fall back on the expanded conception of judicial power in the second 1 The complaint 2 was instituted as a taxpayers' class suit 3 and alleges that
paragraph of Section 1 of Article VIII of the Constitution which reads: the plaintiffs "are all citizens of the Republic of the Philippines, taxpayers,
"Section 1 . . . Judicial power includes the duty of the courts of justice to and entitled to the full benefit, use and enjoyment of the natural resource
settle actual controversies involving rights which are legally demandable and treasure that is the country's virgin tropical rainforests." The same was filed
enforceable, and to determine whether or not there has been a grave abuse for themselves and others who are equally concerned about the
of discretion amounting to lack or excess of jurisdiction on the part of any preservation of said resource but are "so numerous that it is impracticable
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to bring them all before the Court." The minors further asseverate that they reduction of the earth's capacity to process carbon dioxide gases which has
"represent their generation as well as generations yet unborn." 4 led to perplexing and catastrophic climatic changes such as the
Consequently, it is prayed for that judgment be rendered: phenomenon of global warming, otherwise known as the "greenhouse
". . . ordering defendant, his agents, representatives and other persons effect."
acting in his behalf to —
(1) Cancel all existing timber license agreements in the country; Plaintiffs further assert that the adverse and detrimental consequences of
(2) Cease and desist from receiving, accepting, processing, renewing or continued deforestation are so capable of unquestionable demonstration
approving new timber license agreements." that the same may be submitted as a matter of judicial notice. This
and granting the plaintiffs ". . . such other reliefs just and equitable under notwithstanding, they expressed their intention to present expert witnesses
the premises." 5 as well as documentary, photographic and film evidence in the course of the
trial.
The complaint starts off with the general averments that the Philippine
archipelago of 7,100 islands has a land area of thirty million (30,000,000) As their cause of action, they specifically allege that:
hectares and is endowed with rich, lush and verdant rainforests in which "CAUSE OF ACTION
varied, rare and unique species of flora and fauna may be found; these 7. Plaintiffs replead by reference the foregoing allegations.
rainforests contain a genetic, biological and chemical pool which is 8. Twenty-five (25) years ago, the Philippines had some sixteen (16)
irreplaceable; they are also the habitat of indigenous Philippine cultures million hectares of rainforests constituting roughly 53% of the country's
which have existed, endured and flourished since time immemorial; land mass.
scientific evidence reveals that in order to maintain a balanced and healthful 9. Satellite images taken in 1987 reveal that there remained no more
ecology, the country's land area should be utilized on the basis of a ratio of than 1.2 million hectares of said rainforests or four per cent (4.0%) of the
fifty-four per cent (54%) for forest cover and forty-six per cent (46%) for country's land area.
agricultural, residential, industrial, commercial and other uses; the distortion 10. More recent surveys reveal that a mere 850,000 hectares of virgin
and disturbance of this balance as a consequence of deforestation have old-growth rainforests are left, barely 2.8% of the entire land mass of the
resulted in a host of environmental tragedies, such as (a) water shortages Philippine archipelago and about 3.0 million hectares of immature and
resulting from the drying up of the water table, otherwise known as the uneconomical secondary growth forests.
"aquifer," as well as of rivers, brooks and streams, (b) salinization of the 11. Public records reveal that defendant's predecessors have granted
water table as a result of the intrusion therein of salt water, incontrovertible timber license agreements ('TLA's') to various corporations to cut the
examples of which may be found in the island of Cebu and the Municipality aggregate area of 3.89 million hectares for commercial logging purposes.
of Bacoor, Cavite, (c) massive erosion and the consequential loss of soil A copy of the TLA holders and the corresponding areas covered is hereto
fertility and agricultural productivity, with the volume of soil eroded attached as Annex 'A'.
estimated at one billion (1,000,000,000) cubic meters per annum — 12. At the present rate of deforestation, i.e. about 200,000 hectares per
approximately the size of the entire island of Catanduanes, (d) the annum or 25 hectares per hour — nighttime, Saturdays, Sundays and
endangering and extinction of the country's unique, rare and varied flora holidays included — the Philippines will be bereft of forest resources after
and fauna, (e) the disturbance and dislocation of cultural communities, the end of this ensuing decade, if not earlier.
including the disappearance of the Filipino's indigenous cultures, (f) the 13. The adverse effects, disastrous consequences, serious injury and
siltation of rivers and seabeds and consequential destruction of corals and irreparable damage of this continued trend of deforestation to the plaintiff
other aquatic life leading to a critical reduction in marine resource minors' generation and to generations yet unborn are evident and
productivity, (g) recurrent spells of drought as is presently experienced by incontrovertible. As a matter of fact, the environmental damages
the entire country, (h) increasing velocity of typhoon winds which result enumerated in paragraph 6 hereof are already being felt, experienced and
from the absence of windbreakers, (i) the flooding of lowlands and suffered by the generation of plaintiff adults.
agricultural plains arising from the absence of the absorbent mechanism of 14. The continued allowance by defendant of TLA holders to cut and
forests, (j) the siltation and shortening of the lifespan of multi-billion peso deforest the remaining forest stands will work great damage and irreparable
dams constructed and operated for the purpose of supplying water for injury to plaintiffs — especially plaintiff minors and their successors — who
domestic uses, irrigation and the generation of electric power, and (k) the
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may never see, use, benefit from and enjoy this rare and unique natural 21. Finally, defendant's act is contrary to the highest law of humankind
resource treasure. — the natural law — and violative of plaintiffs' right to self-preservation and
This act of defendant constitutes a misappropriation and/or impairment of perpetuation.
the natural resource property he holds in trust for the benefit of plaintiff 22. There is no other plain, speedy and adequate remedy in law other
minors and succeeding generations. than the instant action to arrest the unabated hemorrhage of the country's
15. Plaintiffs have a clear and constitutional right to a balanced and vital life-support systems and continued rape of Mother Earth." 6
healthful ecology and are entitled to protection by the State in its capacity On 22 June 1990, the original defendant, Secretary Factoran, Jr., filed a
as the parens patriae. Motion to Dismiss the complaint based on two (2) grounds, namely: (1) the
16. Plaintiffs have exhausted all administrative remedies with the plaintiffs have no cause of action against him and (2) the issue raised by the
defendant's office. On March 2, 1990, plaintiffs served upon defendant a plaintiffs is a political question which properly pertains to the legislative or
final demand to cancel all logging permits in the country. executive branches of Government. In their 12 July 1990 Opposition to the
A copy of the plaintiffs' letter dated March 1, 1990 is hereto attached as Motion, the petitioners maintain that (1) the complaint shows a clear and
Annex 'B'. unmistakable cause of action, (2) the motion is dilatory and (3) the action
17. Defendant, however, fails and refuses to cancel the existing TLA's, presents a justiciable question as it involves the defendant's abuse of
to the continuing serious damage and extreme prejudice of plaintiffs. discretion.
18. The continued failure and refusal by defendant to cancel the TLA's
is an act violative of the rights of plaintiffs, especially plaintiff minors who On 18 July 1991, respondent Judge issued an order granting the
may be left with a country that is desertified (sic), bare, barren and devoid aforementioned motion to dismiss. 7 In the said order, not only was the
of the wonderful flora, fauna and indigenous cultures which the Philippines defendant's claim — that the complaint states no cause of action against
has been abundantly blessed with. him and that it raises a political question — sustained, the respondent Judge
19. Defendant's refusal to cancel the aforementioned TLA's is manifestly further ruled that the granting of the reliefs prayed for would result in the
contrary to the public policy enunciated in the Philippine Environmental impairment of contracts which is prohibited by the fundamental law of the
Policy which, in pertinent part, states that it is the policy of the State — land.
'(a) to create, develop, maintain and improve conditions under which
man and nature can thrive in productive and enjoyable harmony with each Plaintiffs thus filed the instant special civil action for certiorari under Rule 65
other; of the Revised Rules of Court and ask this Court to rescind and set aside the
'(b) to fulfill the social, economic and other requirements of present and dismissal order on the ground that the respondent Judge gravely abused his
future generations of Filipinos and; discretion in dismissing the action. Again, the parents of the plaintiffs-
'(c) to ensure the attainment of an environmental quality that is minors not only represent their children, but have also joined the latter in
conducive to a life of dignity and well-being'. (P.D. 1151, 6 June 1977). this case. 8
20. Furthermore, defendant's continued refusal to cancel the
aforementioned TLA's is contradictory to the Constitutional policy of the On 14 May 1992, We resolved to give due course to the petition and
State to — required the parties to submit their respective Memoranda after the Office
a. effect 'a more equitable distribution of opportunities, income and of the Solicitor General (OSG) filed a Comment in behalf of the respondents
wealth' and 'make full and efficient use of natural resources (sic).' (Section and the petitioners filed a reply thereto.
1, Article XII of the Constitution);
b. 'protect the nation's marine wealth.' (Section 2, ibid); Petitioners contend that the complaint clearly and unmistakably states a
c. 'conserve and promote the nation's cultural heritage and resources cause of action as it contains sufficient allegations concerning their right to
(sic).' (Section 14, Article XIV, id.); a sound environment based on Articles 19, 20 and 21 of the Civil Code
d. 'protect and advance the right of the people to a balanced and (Human Relations), Section 4 of Executive Order (E.O.) No. 192 creating the
healthful ecology in accord with the rhythm and harmony of nature.' DENR, Section 3 of Presidential Decree (P.D.) No. 1151 (Philippine
(Section 16, Article II, id.) Environmental Policy), Section 16, Article II of the 1987 Constitution
recognizing the right of the people to a balanced and healthful ecology, the
concept of generational genocide in Criminal Law and the concept of man's
BIA | Environmental Law | 99
inalienable right to self-preservation and self-perpetuation embodied in just to several, but to all citizens of the Philippines. Consequently, since the
natural law. Petitioners likewise rely on the respondent's correlative parties are so numerous, it becomes impracticable, if not totally impossible,
obligation, per Section 4 of E.O. No. 192, the safeguard the people's right to to bring all of them before the court. We likewise declare that the plaintiffs
a healthful environment. therein are numerous and representative enough to ensure the full
protection of all concerned interests. Hence, all the requisites for the filing
It is further claimed that the issue of the respondent Secretary's alleged of a valid class suit under Section 12, Rule 3 of the Revised Rules of Court
grave abuse of discretion in granting Timber License Agreements (TLAs) to are present both in the said civil case and in the instant petition, the latter
cover more areas for logging than what is available involves a judicial being but an incident to the former.
question.
This case, however, has a special and novel element. Petitioners minors
Anent the invocation by the respondent Judge of the Constitution's non- assert that they represent their generation as well as generations yet
impairment clause, petitioners maintain that the same does not apply in this unborn. We find no difficulty in ruling that they can, for themselves, for
case because TLAs are not contracts. They likewise submit that even if TLAs others of their generation and for the succeeding generations, file a class
may be considered protected by the said clause, it is well settled that they suit. Their personality to sue in behalf of the succeeding generations can
may still be revoked by the State when public interest so requires. only be based on the concept of intergenerational responsibility insofar as
the right to a balanced and healthful ecology is concerned. Such a right, as
On the other hand, the respondents aver that the petitioners failed to allege hereinafter expounded, considers the "rhythm and harmony of nature."
in their complaint a specific legal right violated by the respondent Secretary Nature means the created world in its entirety. 9 Such rhythm and harmony
for which any relief is provided by law. They see nothing in the complaint indispensably include, inter alia, the judicious disposition, utilization,
but vague and nebulous allegations concerning an "environmental right" management, renewal and conservation of the country's forest, mineral,
which supposedly entitles the petitioners to the "protection by the state in land, waters, fisheries, wildlife, off-shore areas and other natural resources
its capacity as parens patriae." Such allegations, according to them, do not to the end that their exploration, development and utilization be equitably
reveal a valid cause of action. They then reiterate the theory that the accessible to the present as well as future generations. 10 Needless to say,
question of whether logging should be permitted in the country is a political every generation has a responsibility to the next to preserve that rhythm
question which should be properly addressed to the executive or legislative and harmony for the full enjoyment of a balanced and healthful ecology. Put
branches of Government. They therefore assert that the petitioners' a little differently, the minors' assertion of their right to a sound
recourse is not to file an action in court, but to lobby before Congress for environment constitutes, at the same time, the performance of their
the passage of a bill that would ban logging totally. obligation to ensure the protection of that right for the generations to come.
The locus standi of the petitioners having thus been addressed, We shall
As to the matter of the cancellation of the TLAs, respondents submit that now proceed to the merits of the petition.
the same cannot be done by the State without due process of law. Once
issued, a TLA remains effective for a certain period of time — usually for After a careful perusal of the complaint in question and a meticulous
twenty-five (25) years. During its effectivity, the same can neither be consideration and evaluation of the issues raised and arguments adduced by
revised nor cancelled unless the holder has been found, after due notice the parties, We do not hesitate to find for the petitioners and rule against
and hearing, to have violated the terms of the agreement or other forestry the respondent Judge's challenged order for having been issued with grave
laws and regulations. Petitioners' proposition to have all the TLAs abuse of discretion amounting to lack of jurisdiction. The pertinent portions
indiscriminately cancelled without the requisite hearing would be violative of of the said order read as follows:
the requirements of due process. xxx xxx xxx
"After a careful and circumspect evaluation of the Complaint, the Court
Before going any further, We must first focus on some procedural matters. cannot help but agree with the defendant. For although we believe that
Petitioners instituted Civil Case No. 90-777 as a class suit. The original plaintiffs have but the noblest of all intentions, it (sic) fell short of alleging,
defendant and the present respondents did not take issue with this matter. with sufficient definiteness, a specific legal right they are seeking to enforce
Nevertheless, We hereby rule that the said civil case is indeed a class suit. and protect, or a specific legal wrong they are seeking to prevent and
The subject matter of the complaint is of common and general interest not redress (Sec. 1, Rule 2, RRC). Furthermore, the Court notes that the
BIA | Environmental Law | 100
Complaint is replete with vague assumptions and vague conclusions based charter, it is because of the well-founded fear of its framers that unless the
on unverified data. In fine, plaintiffs fail to state a cause of action in its rights to a balanced and healthful ecology and to health are mandated as
Complaint against the herein defendant. state policies by the Constitution itself, thereby highlighting their continuing
importance and imposing upon the state a solemn obligation to preserve the
Furthermore, the Court firmly believes that the matter before it, being first and protect and advance the second, the day would not be too far
impressed with political color and involving a matter of public policy, may when all else would be lost not only for the present generation, but also for
not be taken cognizance of by this Court without doing violence to the those to come — generations which stand to inherit nothing but parched
sacred principle of 'Separation of Powers' of the three (3) co-equal branches earth incapable of sustaining life.
of the Government.
The right to a balanced and healthful ecology carries with it the correlative
The Court is likewise of the impression that it cannot, no matter how we duty to refrain from impairing the environment. During the debates on this
stretch our jurisdiction, grant the reliefs prayed for by the plaintiffs, i.e., to right in one of the plenary sessions of the 1986 Constitutional Commission,
cancel all existing timber license agreements in the country and to cease the following exchange transpired between Commissioner Wilfrido Villacorta
and desist from receiving, accepting, processing renewing or approving new and Commissioner Adolfo Azcuna who sponsored the section in question:
timber license agreements. For to do otherwise would amount to "MR. VILLACORTA:
'impairment of contracts' abhored (sic) by the fundamental law." 11 Does this section mandate the State to provide sanctions against all forms
We do not agree with the trial court's conclusion that the plaintiffs failed to of pollution — air, water and noise pollution?
allege with sufficient definiteness a specific legal right involved or a specific MR. AZCUNA:
legal wrong committed, and that the complaint is replete with vague Yes, Madam President. The right to healthful (sic) environment necessarily
assumptions and conclusions based on unverified data. A reading of the carries with it the correlative duty of not impairing the same and, therefore,
complaint itself belies these conclusions. sanctions may be provided for impairment of environmental balance." 12
The said right implies, among many other things, the judicious management
The complaint focuses on one specific fundamental legal right — the right to and conservation of the country's forests. Without such forests, the
a balanced and healthful ecology which, for the first time in our nation's ecological or environmental balance would be irreversibly disrupted.
constitutional history, is solemnly incorporated in the fundamental law.
Section 16, Article II of the 1987 Constitution explicitly provides: Conformably with the enunciated right to a balanced and healthful ecology
"SEC. 16. The State shall protect and advance the right of the people and the right to health, as well as the other related provisions of the
to a balanced and healthful ecology in accord with the rhythm and harmony Constitution concerning the conservation, development and utilization of the
of nature." country's natural resources, 13 then President Corazon C. Aquino
This right unites with the right to health which is provided for in the promulgated on 10 June 1987 E.O. No. 192, 14 Section 4 of which expressly
preceding section of the same article: mandates that the Department of Environment and Natural Resources "shall
"SEC. 15. The State shall protect and promote the right to health of be the primary government agency responsible for the conservation,
the people and instill health consciousness among them." management, development and proper use of the country's environment
and natural resources, specifically forest and grazing lands, mineral
While the right to a balanced and healthful ecology is to be found under the resources, including those in reservation and watershed areas, and lands of
Declaration of Principles and State Policies and not under the Bill of Rights, the public domain, as well as the licensing and regulation of all natural
it does not follow that it is less important than any of the civil and political resources as may be provided for by law in order to ensure equitable
rights enumerated in the latter. Such a right belongs to a different category sharing of the benefits derived therefrom for the welfare of the present and
of rights altogether for it concerns nothing less than self-preservation and future generations of Filipinos." Section 3 thereof makes the following
self-perpetuation — aptly and fittingly stressed by the petitioners — the statement of policy:
advancement of which may even be said to predate all governments and "SEC. 3.Declaration of Policy. — It is hereby declared the policy of the State
constitutions. As a matter of fact, these basic rights need not even be to ensure the sustainable use, development, management, renewal, and
written in the Constitution for they are assumed to exist from the inception conservation of the country's forest, mineral, land, off-shore areas and other
of humankind. If they are now explicitly mentioned in the fundamental natural resources, including the protection and enhancement of the quality
BIA | Environmental Law | 101
of the environment, and equitable access of the different segments of the continuing policy of the State (a) to create, develop, maintain and improve
population to the development and use of the country's natural resources, conditions under which man and nature can thrive in productive and
not only for the present generation but for future generations as well. It is enjoyable harmony with each other, (b) to fulfill the social, economic and
also the policy of the state to recognize and apply a true value system other requirements of present and future generations of Filipinos, and (c) to
including social and environmental cost implications relative to their insure the attainment of an environmental quality that is conducive to a life
utilization; development and conservation of our natural resources." of dignity and well-being." 16 As its goal, it speaks of the "responsibilities of
each generation as trustee and guardian of the environment for succeeding
This policy declaration is substantially re-stated in Title XIV, Book IV of the generations." 17 The latter statute, on the other hand, gave flesh to the
Administrative Code of 1987, 15 specifically in Section 1 thereof which said policy.
reads:
"SEC. 1.Declaration of Policy. — (1) The State shall ensure, for the benefit Thus, the right of the petitioners (and all those they represent) to a
of the Filipino people, the full exploration and development as well as the balanced and healthful ecology is as clear as the DENR's duty — under its
judicious disposition, utilization, management, renewal and conservation of mandate and by virtue of its powers and functions under E.O. No. 192 and
the country's forest, mineral, land, waters, fisheries, wildlife, off-shore areas the Administrative Code of 1987 — to protect and advance the said right.
and other natural resources, consistent with the necessity of maintaining a
sound ecological balance and protecting and enhancing the quality of the A denial or violation of that right by the other who has the correlative duty
environment and the objective of making the exploration, development and or obligation to respect or protect the same gives rise to a cause of action.
utilization of such natural resources equitably accessible to the different Petitioners maintain that the granting of the TLAs, which they claim was
segments of the present as well as future generations. done with grave abuse of discretion, violated their right to a balanced and
(2) The State shall likewise recognize and apply a true value system healthful ecology; hence, the full protection thereof requires that no further
that takes into account social and environmental cost implications relative to TLAs should be renewed or granted.
the utilization, development and conservation of our natural resources." A cause of action is defined as:
The above provision stresses "the necessity of maintaining a sound ". . . an act or omission of one party in violation of the legal right or rights
ecological balance and protecting and enhancing the quality of the of the other; and its essential elements are legal right of the plaintiff,
environment." Section 2 of the same Title, on the other hand, specifically correlative obligation of the defendant, and act or omission of the defendant
speaks of the mandate of the DENR; however, it makes particular reference in violation of said legal right." 18
to the fact of the agency's being subject to law and higher authority. Said It is settled in this jurisdiction that in a motion to dismiss based on the
section provides: ground that the complaint fails to state a cause of action, 19 the question
"SEC. 2.Mandate. — (1) The Department of Environment and Natural submitted to the court for resolution involves the sufficiency of the facts
Resources shall be primarily responsible for the implementation of the alleged in the complaint itself. No other matter should be considered;
foregoing policy. furthermore, the truth or falsity of the said allegations is beside the point for
(2) It shall, subject to law and higher authority, be in charge of carrying the truth thereof is deemed hypothetically admitted. The only issue to be
out the State's constitutional mandate to control and supervise the resolved in such a case is: admitting such alleged facts to be true, may the
exploration, development, utilization, and conservation of the country's court render a valid judgment in accordance with the prayer in the
natural resources." complaint? 20 In Militante vs. Edrosolano, 21 this Court laid down the rule
Both E.O. No. 192 and the Administrative Code of 1987 have set the that the judiciary should "exercise the utmost care and circumspection in
objectives which will serve as the bases for policy formulation, and have passing upon a motion to dismiss on the ground of the absence thereof
defined the powers and functions of the DENR. [cause of action] lest, by its failure to manifest a correct appreciation of the
facts alleged and deemed hypothetically admitted, what the law grants or
It may, however, be recalled that even before the ratification of the 1987 recognizes is effectively nullified. If that happens, there is a blot on the legal
Constitution, specific statutes already paid special attention to the order. The law itself stands in disrepute."
"environmental right" of the present and future generations. On 6 June
1977, P.D. No. 1151 (Philippine Environmental Policy) and P.D. No. 1152 After a careful examination of the petitioners' complaint, We find the
(Philippine Environment Code) were issued. The former "declared a statements under the introductory affirmative allegations, as well as the
BIA | Environmental Law | 102
specific averments under the subheading CAUSE OF ACTION, to be us that now covers, in proper cases, even the political question. Article VII,
adequate enough to show, prima facie, the claimed violation of their rights. Section 1, of the Constitution clearly provides: . . ."
On the basis thereof, they may thus be granted, wholly or partly, the reliefs
prayed for. It bears stressing, however, that insofar as the cancellation of The last ground invoked by the trial court in dismissing the complaint is the
the TLAs is concerned, there is the need to implead, as party defendants, non-impairment of contracts clause found in the Constitution. The court a
the grantees thereof for they are indispensable parties. quo declared that:
"The Court is likewise of the impression that it cannot, no matter how we
The foregoing considered, Civil Case No. 90-777 cannot be said to raise a stretch our jurisdiction, grant the reliefs prayed for by the plaintiffs, i.e., to
political question. Policy formulation or determination by the executive or cancel all existing timber license agreements in the country and to cease
legislative branches of Government is not squarely put in issue. What is and desist from receiving, accepting, processing, renewing or approving
principally involved is the enforcement of a right vis-a-vis policies already new timber license agreements. For to do otherwise would amount to
formulated and expressed in legislation. It must, nonetheless, be 'impairment of contracts' abhored (sic) by the fundamental law." 24
emphasized that the political question doctrine is no longer the We are not persuaded at all; on the contrary, We are amazed, if not
insurmountable obstacle to the exercise of judicial power or the shocked, by such a sweeping pronouncement. In the first place, the
impenetrable shield that protects executive and legislative actions from respondent Secretary did not, for obvious reasons, even invoke in his
judicial inquiry or review. The second paragraph of section 1, Article VIII of motion to dismiss the non-impairment clause. If he had done so, he would
the Constitution states that: have acted with utmost infidelity to the Government by providing undue and
"Judicial power includes the duty of the courts of justice to settle actual unwarranted benefits and advantages to the timber license holders because
controversies involving rights which are legally demandable and he would have forever bound the Government to strictly respect the said
enforceable, and to determine whether or not there has been a grave abuse licenses according to their terms and conditions regardless of changes in
of discretion amounting to lack or excess of jurisdiction on the part of any policy and the demands of public interest and welfare. He was aware that
branch or instrumentality of the Government." as correctly pointed out by the petitioners, into every timber license must be
Commenting on this provision in his book, Philippine Political Law, 22 Mr. read Section 20 of the Forestry Reform Code (P.D. No. 705) which provides:
Justice Isagani A. Cruz, a distinguished member of this Court, says: ". . . Provided, That when the national interest so requires, the President
"The first part of the authority represents the traditional concept of judicial may amend, modify, replace or rescind any contract, concession, permit,
power, involving the settlement of conflicting rights as conferred by law. licenses or any other form of privilege granted herein . . ."
The second part of the authority represents a broadening of judicial power Needless to say, all licenses may thus be revoked or rescinded by executive
to enable the courts of justice to review what was before forbidden action. It is not a contract, property or a property right protected by the due
territory, to wit, the discretion of the political departments of the process clause of the Constitution. In Tan vs. Director of Forestry, 25 this
government. Court held:
As worded, the new provision vests in the judiciary, and particularly the ". . . A timber license is an instrument by which the State regulates the
Supreme Court, the power to rule upon even the wisdom of the decisions of utilization and disposition of forest resources to the end that public welfare
the executive and the legislature and to declare their acts invalid for lack or is promoted. A timber license is not a contract within the purview of the due
excess of jurisdiction because tainted with grave abuse of discretion. The process clause; it is only a license or privilege, which can be validly
catch, of course, is the meaning of 'grave abuse of discretion,' which is a withdrawn whenever dictated by public interest or public welfare as in this
very elastic phrase that can expand or contract according to the disposition case.
of the judiciary." 'A license is merely a permit or privilege to do what otherwise would be
In Daza vs. Singson, 23 Mr. Justice Cruz, now speaking for this Court, unlawful, and is not a contract between the authority, federal, state, or
noted: municipal, granting it and the person to whom it is granted; neither is it
"In the case now before us, the jurisdictional objection becomes even less property or a property right, nor does it create a vested right; nor is it
tenable and decisive. The reason is that, even if we were to assume that taxation' (37 C.J. 168). Thus, this Court held that the granting of license
the issue presented before us was political in nature, we would still not be does not create irrevocable rights, neither is it property or property rights
precluded from resolving it under the expanded jurisdiction conferred upon (People vs. Ong Tin, 54 O.G. 7576) . . ."

BIA | Environmental Law | 103


We reiterated this pronouncement in Felipe Ysmael, Jr. & Co., Inc. vs. fellows, or exercise his freedom of contract to work them harm. Equally
Deputy Executive Secretary: 26 fundamental with the private right is that of the public to regulate it in the
". . . Timber licenses, permits and license agreements are the principal common interest.' "
instruments by which the State regulates the utilization and disposition of
forest resources to the end that public welfare is promoted. And it can In court, the non-impairment clause must yield to the police power of the
hardly be gainsaid that they merely evidence a privilege granted by the state. 31
State to qualified entities, and do not vest in the latter a permanent or Finally, it is difficult to imagine, as the trial court did, how the non-
irrevocable right to the particular concession area and the forest products impairment clause could apply with respect to the prayer to enjoin the
therein. They may be validly amended, modified, replaced or rescinded by respondent Secretary from receiving, accepting, processing, renewing or
the Chief Executive when national interests so require. Thus, they are not approving new timber licenses for, save in cases of renewal, no contract
deemed contracts within the purview of the due process of law clause [See would have as of yet existed in the other instances. Moreover, with respect
Sections 3(ee) and 20 of Pres. Decree No. 705, as amended. Also, Tan v. to renewal, the holder is not entitled to it as a matter of right.
Director of Forestry, G.R. No. L-24548, October 27, 1983, 125 SCRA 302]."
Since timber licenses are not contracts, the non-impairment clause, which WHEREFORE, being impressed with merit, the instant Petition is hereby
reads: GRANTED, and the challenged Order of respondent Judge of 18 July 1991
"SEC. 10. No law impairing the obligation of contracts shall be dismissing Civil Case No. 90-777 is hereby set aside. The petitioners may
passed." 27 therefore amend their complaint to implead as defendants the holders or
cannot be invoked. grantees of the questioned timber license agreements.
In the second place, even if it is to be assumed that the same are contracts, No pronouncement as to costs. SO ORDERED.
the instant case does not involve a law or even an executive issuance
declaring the cancellation or modification of existing timber licenses. Hence, [G.R. No. 104988. June 18, 1996]
the non-impairment clause cannot as yet be invoked. Nevertheless, granting MUSTANG LUMBER, INC., petitioner, vs. HON. COURT OF APPEALS,
further that a law has actually been passed mandating cancellations or HON. FULGENCIO S. FACTORAN, JR., Secretary, Department
modifications, the same cannot still be stigmatized as a violation of the non- of Environment and Natural Resources (DENR), and ATTY.
impairment clause. This is because by its very nature and purpose, such a VINCENT A. ROBLES, Chief, Special Actions and
law could have only been passed in the exercise of the police power of the Investigation Division, DENR, respondents.
state for the purpose of advancing the right of the people to a balanced and
healthful ecology, promoting their health and enhancing the general [G.R. No. 106424. June 18, 1996]
welfare. In Abe vs. Foster Wheeler Corp., 28 this Court stated: PEOPLE OF THE PHILIPPINES, petitioner, vs. HON. TERESITA
"The freedom of contract, under our system of government, is not meant to DIZON-CAPULONG, in her capacity as the Presiding Judge,
be absolute. The same is understood to be subject to reasonable legislative Regional Trial Court National Capital Judicial Region,
regulation aimed at the promotion of public health, moral, safety and Branch 172, Valenzuela, Metro Manila, and RI CHUY PO,
welfare. In other words, the constitutional guaranty of non-impairment of respondents.
obligations of contract is limited by the exercise of the police power of the
State, in the interest of public health, safety, moral and general welfare." [G.R. No. 123784. June 18, 1996]
MUSTANG LUMBER, INC., petitioner, vs. HON. COURT OF APPEALS,
The reason for this is emphatically set forth in Nebia vs. New York, 29 ATTY. VINCENT A. ROBLES, Chief, Special Actions and
quoted in Philippine American Life Insurance Co. vs. Auditor General, 30 to Investigation Division, Department of Environment and
wit: Natural Resources (DENR), ATTY. NESTOR V. GAPUSAN,
" 'Under our form of government the use of property and the making of TIRSO P. PARIAN, JR., and FELIPE H. CALLORINA, JR.,
contracts are normally matters of private and not of public concern. The respondents.
general rule is that both shall be free of governmental interference. But
neither property rights nor contract rights are absolute; for government DAVIDE, JR., J.:
cannot exist if the citizen may at will use his property to the detriment of his
BIA | Environmental Law | 104
The first and third cases, G.R. No. 104988 and G.R. No. 123784, were the lumber to prove the legitimacy of their source and origin.[4]
originally assigned to the Second and Third Divisions of the Court,
Parenthetically, it may be stated that under an administrative seizure
respectively. They were subsequently consolidated with the second, a case
of the Court en banc. the owner retains the physical possession of the seized articles. Only an
inventory of the articles is taken and signed by the owner or his
Petitioner, a domestic corporation with principal office at Nos. 1350- representative. The owner is prohibited from disposing them until further
1352 Juan Luna Street, Tondo, Manila, and with a lumberyard at Fortune orders.[5]
Street, Fortune Village, Paseo de Blas, Valenzuela, Metro Manila, was duly
registered as a lumber dealer with the Bureau of Forest Development (BFD) On 10 April 1990, counsel for the petitioner sent a letter to Robles
requesting an extension of fifteen days from 14 April 1990 to produce the
under Certificate of Registration No. NRD-4-092590-0469. Its permit as
such was to expire on 25 September 1990. required documents covering the seized articles because some of them,
particularly the certificate of lumber origin, were allegedly in the Province of
Respondent Secretary Fulgencio S. Factoran, Jr., and respondent Atty. Quirino. Robles denied the motion on the ground that the documents being
Vincent A. Robles were, during all the time material to these cases, the required from the petitioner must accompany the lumber or forest products
Secretary of the Department of Environment and Natural Resources (DENR) placed under seizure.[6]
and the Chief of the Special Actions and Investigation Division (SAID) of the
DENR, respectively. On 11 April 1990, Robles submitted his memorandum-report
recommending to Secretary Factoran the following:
The material operative facts are as follows:
1. Suspension and subsequent cancellation of the lumber Dealer's
On 1 April 1990, acting on an information that a huge stockpile of Permit of Mustang Lumber, Inc. for operating an unregistered
narra flitches, shorts, and slabs were seen inside the lumberyard of the lumberyard and resaw mill and possession of Almaciga Lumber
petitioner in Valenzuela, Metro Manila, the SAID organized a team of (a banned specie) without the required documents;
foresters and policemen and sent it to conduct surveillance at the said
lumberyard. In the course thereof, the team members saw coming out 2. Confiscation of the lumber seized at the Mustang Lumberyard
from the lumberyard the petitioner's truck, with Plate No. CCK-322, loaded including the truck with Plate No. CCK-322 and the lumber
loaded herein [sic] now at the DENR compound in the event its
with lauan and almaciga lumber of assorted sizes and dimensions. Since
the driver could not produce the required invoices and transport documents, owner fails to submit documents showing legitimacy of the
the team seized the truck together with its cargo and impounded them at source of said lumber within ten days from date of seizure;
the DENR compound at Visayas Avenue, Quezon City.[1] The team was not 3. Filing of criminal charges against Mr. Ri Chuy Po, owner of
able to gain entry into the premises because of the refusal of the owner.[2] Mustang Lumber Inc. and Mr. Ruiz, or if the circumstances
On 3 April 1990, the team was able to secure a search warrant from warrant for illegal possession of narra and almaciga lumber
and shorts if and when recommendation no. 2 pushes through;
Executive Judge Adriano R. Osorio of the Regional Trial Court (RTC) of
Valenzuela, Metro Manila. By virtue thereof, the team seized on that date 4. Confiscation of Trucks with Plate No. CCS-639 and CDV-458 as
from the petitioners lumberyard four truckloads of narra shorts, trimmings, well as the lumber loaded therein for transport lumber using
and slabs; a negligible number of narra lumber; and approximately 200,000 “recycled” documents.[7]
board feet of lumber and shorts of various species including almaciga and
supa.[3] On 23 April 1990, Secretary Factoran issued an order suspending
immediately the petitioner's lumber-dealer's permit No. NRD-4-092590-0469
On 4 April 1990, the team returned to the premises of the petitioner 's and directing the petitioner to explain in writing within fifteen days why its
lumberyard in Valenzuela and placed under administrative seizure the lumber-dealer's permit should not be cancelled.
remaining stockpile of almaciga, supa, and lauan lumber with a total volume
of 311,000 board feet because the petitioner failed to produce upon On the same date, counsel for the petitioner sent another letter to
demand the corresponding certificate of lumber origin, auxiliary invoices, Robles informing the latter that the petitioner had already secured the
tally sheets, and delivery receipts from the source of the invoices covering required documents and was ready to submit them. None, however, was
BIA | Environmental Law | 105
submitted.[8] case (hereinafter, the SECOND CIVIL CASE) was docketed as Civil Case No.
90-54610 and assigned to Branch 24 of the said court.
On 3 May 1990, Secretary Factoran issued another order wherein, after
reciting the events which took place on 1 April and 3 April 1990, he ordered In the meantime, Robles filed with the Department of Justice (DOJ) a
“CONFISCATED in favor of the government to be disposed of in accordance complaint against the petitioner's president and general manager, Ri Chuy
with law” the approximately 311,000 board feet of lauan, supa, and Po, for violation of Section 68 of P.D. No. 705, as amended by E.O. No. 277.
almaciga lumber, shorts, and sticks found inside the petitioner's After appropriate preliminary investigation, the investigating prosecutor,
lumberyard.[9] Claro Arellano, handed down a resolution[11] whose dispositive portion
reads:
On 11 July 1990, the petitioner filed with the RTC of Manila a petition
for certiorari and prohibition with a prayer for a restraining order or WHEREFORE, premises considered, it is hereby
preliminary injunction against Secretary Fulgencio S. Factoran, Jr., and Atty. recommended that an information be filed against respondent Ri
Vincent A. Robles. The case (hereinafter, the FIRST CIVIL CASE) was Chuy Po for illegal possession of approximately 200,000 bd. ft. of
docketed as Civil Case No. 90-53648 and assigned to Branch 35 o the said lumber consisting of almaciga and supa and for illegal shipment of
court. The petitioner questioned therein (a) the seizure on 1 April 1990, almaciga and lauan in violation of Sec. 68 of PD 705 as amended
without any search and seizure order issued by a judge, of its truck with by E.O. 277, series of 1987.
Plate No. CCK-322 and its cargo of assorted lumber consisting of apitong,
tanguile, and lauan of different sizes and dimensions with a total value of It is further recommended that the 30,000 bd. ft. of narra
shorts, trimmings and slabs covered by legal documents be
P38,000.00; and (b) the orders of Secretary Factoran of 23 April 1990 for
lack of prior notice and hearing and of 3 May 1990 for violation of Section 2, released to the rightful owner, Malupa.[12]
Article III of the Constitution. This resolution was approved by Undersecretary of Justice Silvestre H.
Bello, III, who served as Chairman of the Task Force on Illegal Logging.[13]
On 17 September 1990, in response to reports that violations of P.D.
No. 705 (The Revised Forestry Code of the Philippines), as amended, were On the basis of that resolution, an information was filed on 5 June
committed and acting upon instruction of Robles and under Special Order 1991 by the DOJ with Branch 172 of the RTC of Valenzuela, charging Ri
No. 897, series of 1990, a team of DENR agents went to the business Chuy Po with the violation of Section 68 of P.D. No. 705, as amended,
premises of the petitioner located at No. 1352 Juan Luna Street, Tondo, which was docketed as Criminal Case No. 324-V-91 (hereinafter, the
Manila. The team caught the petitioner operating as a lumber dealer CRIMINAL CASE). The accusatory portion of the information reads as
although its lumber-dealer's permit had already been suspended on 23 April follows:
1990. Since the gate of the petitioner's lumberyard was open, the team
went inside and saw an owner-type jeep with a trailer loaded with lumber. That on or about the 3rd day of April 1990, or prior to or subsequent
Upon investigation, the team was informed that the lumber loaded on the thereto, within the premises and vicinity of Mustang Lumber, Inc. in Fortune
trailer was to be delivered to the petitioner's customer. It also came upon Village, Valenzuela, Metro Manila, and within the jurisdiction of this
the sales invoice covering the transaction. The members of the team then Honorable Court, the above-named accused, did then and there wilfully,
introduced themselves to the caretaker, one Ms. Chua, who turned out to feloniously and unlawfully, have in his possession truckloads of almaciga
be the wife of the petitioner's president and general manager, Mr. Ri Chuy and lauan and approximately 200,000 bd. ft. of lumber and shorts of various
Po, who was then out of town. The team's photographer was able to take species including almaciga and supa, without the legal documents as
photographs of the stockpiles of lumber including newly cut ones, fresh dust required under existing forest laws and regulations.[14]
around sawing or cutting machineries and equipment, and the transport On 7 June 1991, Branch 35 of the RTC of Manila rendered its
vehicles loaded with lumber. The team thereupon effected a constructive decision[15] in the FIRST CIVIL CASE, the dispositive portion of which reads:
seizure of approximately 20,000 board feet of lauan lumber in assorted sizes
stockpiled in the premises by issuing a receipt therefor.[10] WHEREFORE, judgment in this case is rendered as follows:
As a consequence of this 17 September 1990 incident, the petitioner 1. The Order of Respondent Secretary of the DENR, the
filed with the RTC of Manila a petition for certiorari and prohibition. The Honorable Fulgencio S. Factoran, Jr., dated 3 May 1990
BIA | Environmental Law | 106
ordering the confiscation in favor of the Government the Osorio whose validity the petitioner did not even question.[17] And, although
approximately 311,000 board feet of lauan, supa, and almaciga the search warrant did not specifically mention almaciga, supa, and lauan
lumber, shorts and sticks, found inside and seized from the lumber and shorts, their seizure was valid because it is settled that the
lumberyard of the petitioner at Fortune Drive, Fortune Village, executing officer is not required to ignore contrabands observed during the
Paseo de Blas, Valenzuela, Metro Manila, on April 4, 1990 conduct of the search.[18]
(Exhibit 10), is hereby set aside and vacated, and instead the
respondents are required to report and bring to the Hon. The trial court, however, set aside Secretary Factoran's order of 3 May
Adriano Osorio, Executive Judge, Regional Trial Court, NCJR, 1990 ordering the confiscation of the seized articles in favor of the
Government for the reason that since the articles were seized pursuant to
Valenzuela, Metro Manila, the said 311,000 board feet of
Lauan, supa and almaciga Lumber, shorts and sticks, to be the search warrant issued by Executive Judge Osorio they should have been
returned to him in compliance with the directive in the warrant.
dealt with as directed by law;
2. The respondents are required to initiate and prosecute the As to the propriety of the 23 April 1990 order of Secretary Factoran,
appropriate action before the proper court regarding the lauan the trial court ruled that the same had been rendered moot and academic
by the expiration of the petitioner's lumber-dealer's permit on 25 September
and almaciga lumber of assorted sizes and dimensions loaded
in petitioner's truck bearing Plate No. CCK-322 which were 1990, a fact the petitioner admitted in its memorandum.
seized on April 1, 1990; The petitioner forthwith appealed from the decision in the FIRST CIVIL
CASE to the Court of Appeals, which docketed the appeal as CA-G.R. SP No.
3. The Writ of Preliminary Injunction issued by the Court on
August 2, 1990 shall be rendered functus oficio upon 25510.
compliance by the respondents with paragraphs 1 and 2 of this On 7 July 1991, accused Ri Chuy Po filed in the CRIMINAL CASE a
judgment; Motion to Quash and/or to Suspend Proceedings based on the following
4. Action on the prayer of the petitioner that the lauan, supa and grounds: (a) the information does not charge an offense, for possession of
almaciga lumber, shorts and sticks mentioned above in lumber, as opposed to timber, is not penalized in Section 68 of P.D. No.
705, as amended, and even granting arguendo that lumber falls within the
paragraphs 1 and 2 of this judgment be returned to said
petitioner, is withheld in this case until after the proper court purview of the said section, the same may not be used in evidence against
has taken cognizance and determined how those lumber, him for they were taken by virtue of an illegal seizure; and (b) Civil Case
No. 90-53648 of Branch 35 of the RTC of Manila, the FIRST CIVIL CASE,
shorts and sticks should be disposed of; and
then pending before the Court of Appeals, which involves the legality of the
5. The petitioner is ordered to pay the costs. seizure, raises a prejudicial question.[19]
SO ORDERED. The prosecution opposed the motion alleging that lumber is included in
Section 68 of P.D. No. 705, as amended, and possession thereof without the
In resolving the said case, the trial court held that the warrantless required legal documents is penalized therein. It referred to Section 3.2 of
search and seizure on 1 April 1990 of the petitioner's truck, which was
DENR Administrative Order No. 19, series of 1989, for the definitions of
moving out from the petitioner's lumberyard in Valenzuela, Metro Manila, timber and lumber, and then argued that exclusion of lumber from Section
loaded with large volumes of lumber without covering document showing 68 would defeat the very purpose of the law, i.e., to minimize, if not halt,
the legitimacy of its source or origin did not offend the constitutional illegal logging that has resulted in the rapid denudation of our forest
mandate that search and seizure must be supported by a valid warrant. resources.[20]
The situation fell under one of the settled and accepted exceptions where
warrantless search and seizure is justified, viz., a search of a moving In her order of 16 August 1991 in the CRIMINAL CASE,[21] respondent
vehicle.[16] As to the seizure of a large volume of almaciga, supa, and lauan Judge Teresita Dizon-Capulong granted the motion to quash and dismissed
lumber and shorts effected on 4 April 1990, the trial court ruled that the the case on the ground that "possession of lumber without the legal
said seizure was a continuation of that made the previous day and was still documents required by forest laws and regulations is not a crime."[22]
pursuant to or by virtue of the search warrant issued by Executive Judge
BIA | Environmental Law | 107
Its motion for reconsideration having been denied in the order of 18 since wood is included in the definition of forest product in Section 3(q) of
October 1991,[23] the People filed a petition for certiorari with this Court in P.D. No. 705, as amended, lumber is necessarily included in Section 68
G.R. No. 106424, wherein it contends that the respondent Judge acted with under the term forest product.
grave abuse of discretion in granting the motion to quash and in dismissing
the case. The Court of Appeals further emphasized that a forest officer or
employee can seize the forest product involved in a violation of Section 68
On 29 November 1991, the Court of Appeals rendered a decision[24] in of P.D. No. 705 pursuant to Section 80 thereof, as amended by P.D. No.
CA-G.R. SP No. 25510 dismissing for lack of merit the petitioner's appeal 1775, which provides in part as follows:
from the decision in the FIRST CIVIL CASE and affirming the trial court's
SEC. 80. Arrest, Institution of Criminal Actions. — A forest
rulings on the issues raised. As to the claim that the truck was not carrying
contraband articles since there is no law punishing the possession of officer or employee of the Bureau or any personnel of the
Philippine Constabulary/Integrated National Police shall arrest
lumber, and that lumber is not timber whose possession without the
required legal documents is unlawful under P.D. No. 705, as amended, the even without warrant any person who has committed or is
Court of Appeals held: committing in his presence any of the offenses defined in this
chapter. He shall also seize and confiscate, in favor of the
This undue emphasis on lumber or the commercial nature of the forest Government, the tools and equipment used in committing the
product involved has always been foisted by those who claim to be engaged offense, or the forest products cut, gathered or taken by the
in the legitimate business of lumber dealership. But what is important to offender in the process of committing the offense.
consider is that when appellant was required to present the valid documents
showing its acquisition and lawful possession of the lumber in question, it Among the offenses punished in the chapter referred to in said Section
failed to present any despite the period of extension granted to it.[25] 80 are the cutting, gathering, collection, or removal of timber or other forest
products or possession of timber or other forest products without the
The petitioner's motion to reconsider the said decision was denied by required legal documents.
the Court of Appeals in its resolution of 3 March 1992.[26] Hence, the
petitioner came to this Court by way of a petition for review on certiorari in Its motion to reconsider the decision having been denied by the Court
of Appeals in the resolution of 6 February 1996, the petitioner filed with this
G.R. No. 104988, which was filed on 2 May 1992.[27]
Court on 27 February 1996 a petition for review on certiorari in G.R. No.
On 24 September 1992, Branch 24 of the RTC of Manila handed down 123784.
a decision in the SECOND CIVIL CASE dismissing the petition for certiorari
We shall now resolve these three cases starting with G.R. 106424 with
and prohibition because (a) the petitioner did not exhaust administrative
remedies; (b) when the seizure was made on 17 September 1990 the which the other two were consolidated.
petitioner could not lawfully sell lumber, as its license was still under
suspension; (c) the seizure was valid under Section 68-A of P.D. No. 705, as
amended; and (d) the seizure was justified as a warrantless search and G.R. No. 106424
seizure under Section 80 of P.D. No. 705, as amended.
The petitioner had moved to quash the information in Criminal Case
The petitioner appealed from the decision to the Court of Appeals, No. 324-V-91 on the ground that it does not charge an offense.
which docketed the appeal as CA-G.R. SP No. 33778. Respondent Judge Dizon-Capulong granted the motion reasoning that the
subject matter of the information in the CRIMINAL CASE is LUMBER, which
In its decision[28] of 31 July 1995, the Court of Appeals dismissed the is neither "timber" nor "other forest product" under Section 68 of P.D. No.
petitioner's appeal in CA-G.R. SP No. 33778 for lack of merit and sustained 705, as amended, and hence, possession thereof without the required legal
the grounds relied upon by the trial court in dismissing the SECOND CIVIL documents is not prohibited and penalized under the said section.
CASE. Relying on the definition of "lumber" by Webster, viz., "timber or
logs, especially after being prepared for the market," and by the Random Under paragraph (a), Section 3, Rule 117 of the Rules of Court, an
House Dictionary of the English Language, viz., "wood, esp. when suitable information may be quashed on the ground that the facts alleged therein do
or adapted for various building purposes," the respondent Court held that not constitute an offense. It has been said that "the test for the correctness
BIA | Environmental Law | 108
of this ground is the sufficiency of the averments in the information, that is, (1) almaciga and lauan; and
whether the facts alleged, if hypothetically admitted, constitute the
(2) approximately 200,000 bd. ft. of lumber and shorts of various
elements of the offense,[29] and matters aliunde will not be considered."
Anent the sufficiency of the information, Section 6, Rule 110 of the Rules of species including almaciga and supa.
Court requires, inter alia, that the information state the acts or omissions The “almaciga and lauan” specifically mentioned in no. (1) are not described
complained of as constituting the offense. as lumber.” They cannot refer to the “lumber” in no. (2) because they are
Respondent Ri Chuy Po is charged with the violation of Section 68 of separated by the words “approximately 200,000 bd. ft.” with the
P.D. No. 705, as amended by E.O. No. 277, which provides: conjunction “and,” and not with the preposition “of.” They must then be raw
forest products or, more specifically, timbers under Section 3(q) of P.D. No.
SEC. 68. Cutting, Gathering and/or collecting Timber, or 705, as amended, which reads:
Other Forest Products Without License. — Any person who shall
cut, gather, collect, remove timber or other forest products from SEC. 3. Definitions. —
any forest land, or timber from alienable or disposable public land, xxx xxx xxx
or from private land, without any authority, or possess timber or
other forest products without the legal documents as required (q) Forest product means timber, pulpwood, firewood, bark,
under existing forest laws and regulations, shall be punished with tree top, resin, gum, wood, oil, honey, beeswax, nipa, rattan, or
the penalties imposed under Articles 309 and 310 of the Revised other forest growth such as grass, shrub, and flowering plant, the
Penal Code: Provided, That in the case of partnerships, associated water, fish, game, scenic, historical, recreational and
associations, or corporations, the officers who ordered the cutting, geological resources in forest lands.
gathering, collection or possession shall be liable, and if such It follows then that lumber is only one of the items covered by the
officers are aliens, they shall, in addition to the penalty, be information. The public and the private respondents obviously
deported without further proceedings on the part of the miscomprehended the averments in the information. Accordingly, even if
Commission on Immigration and Deportation. lumber is not included in Section 68, the other items therein as noted above
The Court shall further order the confiscation in favor of the fall within the ambit of the said section, and as to them, the information
government of the timber or any forest products cut, gathered, collected, validly charges an offense.
removed, or possessed, as well as the machinery, equipment, implements Our respected brother, Mr. Justice Jose C. Vitug, suggests in his
and tools illegally used in the area where the timber or forest products are dissenting opinion that this Court go beyond the four corners of the
found. information for enlightenment as to whether the information exclusively
Punished then in this section are (1) the cutting, gathering, collection, refers to lumber. With the aid of the pleadings and the annexes thereto, he
or removal of timber or other forest products from the places therein arrives at the conclusion that “only lumber has been envisioned in the
mentioned without any authority; and (b) possession of timber or other indictment.”
forest products without the legal documents as required under existing The majority is unable to subscribe to his view. First, his proposition
forest laws and regulations. violates the rule that only the facts alleged in the information vis-a-vis the
Indeed, the word lumber does not appear in Section 68. But law violated must be considered in determining whether an information
conceding ex gratia that this omission amounts to an exclusion of lumber charges an offense.
from the section's coverage, do the facts averred in the information in the Second, the pleadings and annexes he resorted to are insufficient to
CRIMINAL CASE validly charge a violation of the said section? justify his conclusion. On the contrary, the Joint Affidavit of Melencio
A cursory reading of the information readily leads us to an infallible Jalova, Jr., and Araman Belleng, which is one of the annexes he referred
conclusion that lumber is not solely its subject matter. It is evident to,[30] cannot lead one to infer that what the team seized was all lumber.
therefrom that what are alleged to be in the possession of the private Paragraph 8 thereof expressly states:
respondent, without the required legal documents, are truckloads of 8. That when inside the compound, the team found approximately
BIA | Environmental Law | 109
four (4) truckloads of narra shorts, trimmings and slabs and a negligible Neither should we. Ubi lex non distanguit nec nos distinguere debemus.
amount of narra lumber, and approximately 200,000 bd. ft. of lumber and
Indisputably, respondent Judge Teresita Dizon-Capulong of Branch 172
shorts of various species including almaciga and supa which are classified as
prohibited wood species. (Italics supplied) of the RTC of Valenzuela, Metro Manila, committed grave abuse of
discretion in granting the motion to quash the information in the CRIMINAL
In the same vein, the dispositive portion of the resolution[31] of the CASE and in dismissing the said case.
investigating prosecutor, which served as the basis for the filing of the
information, does not limit itself to lumber; thus:
WHEREFORE, premises considered, it is hereby G.R. No. 104988
recommended that an information be filed against respondent Ri We find this petition to be without merit. The petitioner has miserably
Chuy Po for illegal possession of 200,000 bd. ft. of lumber failed to show that the Court of Appeals committed any reversible error in
consisting of almaciga and supa and for illegal shipment of its assailed decision of 29 November 1991.
almaciga and lauan in violation of Sec. 63 of PD 705 as amended
by E.O. 277, series of 1987. (Italics supplied) It was duly established that on 1 April 1990, the petitioner's truck with
Plate No. CCK-322 was coming out from the petitioner's lumberyard loaded
The foregoing disquisitions should not, in any manner, be construed as with lauan and almaciga lumber of different sizes and dimensions which
an affirmance of the respondent Judge's conclusion that lumber is excluded were not accompanied with the required invoices and transport documents.
from the coverage of Section 68 of P.D. No. 705, as amended, and thus The seizure of such truck and its cargo was a valid exercise of the power
possession thereof without the required legal documents is not a crime. On vested upon a forest officer or employee by Section 80 of P.D. No. 705, as
the contrary, this Court rules that such possession is penalized in the said amended by P.D. No. 1775. Then, too, as correctly held by the trial court
section because lumber is included in the term timber. and the Court of Appeals in the FIRST CIVIL CASE, the search was
The Revised Forestry Code contains no definition of either timber or conducted on a moving vehicle. Such a search could be lawfully conducted
lumber. While the former is included in forest products as defined in without a search warrant.
paragraph (q) of Section 3, the latter is found in paragraph (aa) of the same Search of a moving vehicle is one of the five doctrinally accepted
section in the definition of “Processing plant;” which reads: exceptions to the constitutional mandate[34] that no search or seizure shall
(aa) Processing plant is any mechanical set-up, machine or be made except by virtue of a warrant issued by a judge after personally
combination of machine used for the processing of logs and other determining the existence of probable cause. The other exceptions are (1)
forest raw materials into lumber, veneer, plywood, wallboard, search as an incident to a lawful arrest, (2) seizure of evidence in plain
block-board, paper board, pulp, paper or other finished wood view, (3) customs searches, and (4) consented warrantless search.[35]
products. We also affirm the rulings of both the trial court and the Court of
This simply means that lumber is a processed log or processed forest Appeals that the search on 4 April 1990 was a continuation of the search on
raw material. Clearly, the Code uses the term lumber in its ordinary or 3 April 1990 done under and by virtue of the search warrant issued on 3
common usage. In the 1993 copyright edition of Webster's Third New April 1990 by Executive Judge Osorio. Under Section 9, Rule 126 of the
International Dictionary, lumber is defined, inter alia, as “timber or logs Rules of Court, a search warrant has a lifetime of ten days. Hence, it could
after being prepared for the market.”[32] Simply put, lumber is a processed be served at any time within the said period, and if its object or purpose
log or timber. cannot be accomplished in one day, the same may be continued the
following day or days until completed. Thus, when the search under a
It is settled that in the absence of legislative intent to the contrary, warrant on one day was interrupted, it may be continued under the same
words and phrases used in a statute should be given their plain, ordinary, warrant the following day, provided it is still within the ten-day period.[36]
and common usage meaning.[33] And insofar as possession of timber
without the required legal documents is concerned, Section 68 of P.D. No. As to the final plea of the petitioner that the search was illegal because
705, as amended, makes no distinction between raw or processed timber. possession of lumber without the required legal documents is not illegal
under Section 68 of P.D. No. 705, as amended, since lumber is neither
BIA | Environmental Law | 110
specified therein nor included in the term forest product, the same hardly The Government must not tire in its vigilance to protect the environment by
merits further discussion in view of our ruling in G.R. No. 106424. prosecuting without fear or favor any person who dares to violate our laws
for the utilization and protection of our forests.
WHEREFORE, judgment is hereby rendered
G.R. No. 123784
1. (a) GRANTING the petition in G.R. No. 106424; (b) SETTING
The allegations and arguments set forth in the petition in this case ASIDE and ANNULLING, for having been rendered with grave
palpably fail to show prima facie that a reversible error has been committed abuse of discretion, the challenged orders of 16 August 1991
by the Court of Appeals in its challenged decision of 31 July 1995 and and 18 October 1991 of respondent Judge Teresita Dizon-
resolution of 6 February 1996 in CA-G.R. SP No. 33778. We must, Capulong, Branch 172, Regional Trial Court of Valenzuela,
forthwith, deny it for utter want of merit. There is no need to require the Metro Manila, in Criminal Case No. 324-V-91, entitled “People
respondents to comment on the petition. of the Philippines vs. Ri Chuy Po”; (c) REINSTATING the
The Court of Appeals correctly dismissed the petitioner's appeal from information in the said criminal case; and (d) DIRECTING the
the judgment of the trial court in the SECOND CIVIL CASE. The petitioner respondent Judge on her successor to hear and decide the
never disputed the fact that its lumber-dealer's license or permit had been case with purposeful dispatch; and
suspended by Secretary Factoran on 23 April 1990. The suspension was 2. DENYING the petitions in G.R. No. 104988 and in G. R. No.
never lifted, and since the license had only a lifetime of up to 25 September 123784 for utter failure of the petitioner to show that the
1990, the petitioner has absolutely no right to possess, sell, or otherwise respondent Court of Appeals committed any reversible error in
dispose of lumber. Accordingly, Secretary Factoran or his authorized the challenged decisions of 29 November 1991 in CA-G.R. SP
representative had the authority to seize the lumber pursuant to Section 68- No. 25510 in the FIRST CIVIL CASE and of 31 July 1995 in CA-
A of P.D. No. 705, as amended, which provides as follows: G.R. SP No. 33778 in the SECOND CIVIL CASE.
Section 68-A. Administrative Authority of the Department Costs against the petitioner in each of these three cases.
Head or his Duly Authorized Representative to Order Confiscation.
— In all cases of violations of this Code or other forest laws, rules SO ORDERED.
and regulations, the Department Head or his duly authorized
representative may order the confiscation of any forest products
illegally cut, gathered, removed, or possessed or abandoned. . . . [G.R. No. 111107. January 10, 1997]
LEONARDO A. PAAT, in his capacity as Officer-in-Charge (OIC),
The petitioner's insistence that possession or sale of lumber is not Regional Executive Director (RED), Region 2 and JOVITO
penalized must also fail in view of our disquisition and ruling on the same LAYUGAN, JR., in his capacity as Community Environment
issue in G.R. No. 106424. Besides, the issue is totally irrelevant in the and Natural Resources Officer (CENRO), both of the
SECOND CIVIL CASE which involves administrative seizure as a Department of Environment and Natural Resources (DENR),
consequence of the violation of the suspension of the petitioner's license as petitioners, vs. COURT OF APPEALS, HON. RICARDO A.
lumber dealer. BACULI in his capacity as Presiding Judge of Branch 2,
All told then, G.R. No. 104988 and G.R. No. 123784 are nothing more Regional Trial Court at Tuguegarao, Cagayan, and SPOUSES
than rituals to cover up blatant violations of the Revised Forestry Code of BIENVENIDO and VICTORIA DE GUZMAN, respondents.
the Philippines (P.D. No. 705), as amended. They are presumably trifling
attempts to block the serious efforts of the DENR to enforce the decree, DECISION
efforts which deserve the commendation of the public in light of the urgent
TORRES, JR., J.:
need to take firm and decisive action against despoilers of our forests
whose continuous destruction only ensures to the generations to come, if Without violating the principle of exhaustion of administrative
not the present, an inheritance of parched earth incapable of sustaining life. remedies, may an action for replevin prosper to recover a movable property
BIA | Environmental Law | 111
which is the subject matter of an administrative forfeiture proceeding in the legal question.[8] Hence, this present petition,[9] with prayer for temporary
Department of Environment and Natural Resources pursuant to Section 68-A restraining order and/or preliminary injunction, seeking to reverse the
of P. D. 705, as amended, entitled The Revised Forestry Code of the decision of the respondent Court of Appeals was filed by the petitioners on
Philippines? September 9, 1993. By virtue of the Resolution dated September 27,
1993,[10] the prayer for the issuance of temporary restraining order of
Are the Secretary of DENR and his representatives empowered to petitioners was granted by this Court.
confiscate and forfeit conveyances used in transporting illegal forest
products in favor of the government? Invoking the doctrine of exhaustion of administrative remedies,
petitioners aver that the trial court could not legally entertain the suit for
These are two fundamental questions presented before us for our replevin because the truck was under administrative seizure proceedings
resolution. pursuant to Section 68-A of P.D. 705, as amended by E.O. 277. Private
The controversy on hand had its incipiency on May 19, 1989 when the respondents, on the other hand, would seek to avoid the operation of this
truck of private respondent Victoria de Guzman while on its way to Bulacan principle asserting that the instant case falls within the exception of the
from San Jose, Baggao, Cagayan, was seized by the Department of doctrine upon the justification that (1) due process was violated because
Environment and Natural Resources (DENR, for brevity) personnel in Aritao, they were not given the chance to be heard, and (2) the seizure and
Nueva Vizcaya because the driver could not produce the required forfeiture was unlawful on the grounds: (a) that the Secretary of DENR and
documents for the forest products found concealed in the truck. Petitioner his representatives have no authority to confiscate and forfeit conveyances
Jovito Layugan, the Community Environment and Natural Resources Officer utilized in transporting illegal forest products, and (b) that the truck as
(CENRO) in Aritao, Cagayan, issued on May 23, 1989 an order of admitted by petitioners was not used in the commission of the crime.
confiscation of the truck and gave the owner thereof fifteen (15) days within Upon a thorough and delicate scrutiny of the records and relevant
which to submit an explanation why the truck should not be forfeited. jurisprudence on the matter, we are of the opinion that the plea of
Private respondents, however, failed to submit the required explanation. petitioners for reversal is in order.
On June 22, 1989,[1] Regional Executive Director Rogelio Baggayan of DENR
sustained petitioner Layugan’s action of confiscation and ordered the This Court in a long line of cases has consistently held that before a
forfeiture of the truck invoking Section 68-A of Presidential Decree No. 705 party is allowed to seek the intervention of the court, it is a pre-condition
as amended by Executive Order No. 277. Private respondents filed a letter that he should have availed of all the means of administrative processes
of reconsideration dated June 28, 1989 of the June 22, 1989 order of afforded him. Hence, if a remedy within the administrative machinery can
Executive Director Baggayan, which was, however, denied in a subsequent still be resorted to by giving the administrative officer concerned every
order of July 12, 1989.[2] Subsequently, the case was brought by the opportunity to decide on a matter that comes within his jurisdiction then
petitioners to the Secretary of DENR pursuant to private respondents’ such remedy should be exhausted first before court’s judicial power can be
statement in their letter dated June 28, 1989 that in case their letter for sought. The premature invocation of court’s intervention is fatal to one’s
reconsideration would be denied then “this letter should be considered as cause of action.[11] Accordingly, absent any finding of waiver or estoppel the
an appeal to the Secretary.”[3] Pending resolution however of the appeal, a case is susceptible of dismissal for lack of cause of action.[12] This doctrine
suit for replevin, docketed as Civil Case 4031, was filed by the private of exhaustion of administrative remedies was not without its practical and
respondents against petitioner Layugan and Executive Director Baggayan [4] legal reasons, for one thing, availment of administrative remedy entails
with the Regional Trial Court, Branch 2 of Cagayan,[5] which issued a writ lesser expenses and provides for a speedier disposition of controversies. It
ordering the return of the truck to private respondents.[6] Petitioner Layugan is no less true to state that the courts of justice for reasons of comity and
and Executive Director Baggayan filed a motion to dismiss with the trial convenience will shy away from a dispute until the system of administrative
court contending, inter alia, that private respondents had no cause of action redress has been completed and complied with so as to give the
for their failure to exhaust administrative remedies. The trial court denied administrative agency concerned every opportunity to correct its error and
the motion to dismiss in an order dated December 28, 1989.[7] Their motion to dispose of the case. However, we are not amiss to reiterate that the
for reconsideration having been likewise denied, a petition for certiorari was principle of exhaustion of administrative remedies as tested by a battery of
filed by the petitioners with the respondent Court of Appeals which cases is not an ironclad rule. This doctrine is a relative one and its flexibility
sustained the trial court’s order ruling that the question involved is purely a is called upon by the peculiarity and uniqueness of the factual and
BIA | Environmental Law | 112
circumstantial settings of a case. Hence, it is disregarded (1) when there is The doctrine of primary jurisdiction does not warrant a court to arrogate
a violation of due process,[13] (2) when the issue involved is purely a legal unto itself the authority to resolve a controversy the jurisdiction over which
question,[14] (3) when the administrative action is patently illegal amounting is initially lodged with an administrative body of special competence.[25] In
to lack or excess of jurisdiction,[15] (4) when there is estoppel on the part of Felipe Ismael, Jr. and Co. vs. Deputy Executive Secretary,[26] which was
the administrative agency concerned,[16] (5) when there is irreparable reiterated in the recent case of Concerned Officials of MWSS vs. Vasquez,[27]
injury,[17] (6) when the respondent is a department secretary whose acts as this Court held:
an alter ego of the President bears the implied and assumed approval of the
latter,[18] (7) when to require exhaustion of administrative remedies would “Thus, while the administration grapples with the complex
and multifarious problems caused by unbriddled exploitation of
be unreasonable,[19] (8) when it would amount to a nullification of a
claim,[20] (9) when the subject matter is a private land in land case these resources, the judiciary will stand clear. A long line of cases
establish the basic rule that the courts will not interfere in matters
proceedings,[21] (10) when the rule does not provide a plain, speedy and
adequate remedy, and (11) when there are circumstances indicating the which are addressed to the sound discretion of government
urgency of judicial intervention.[22] agencies entrusted with the regulation of activities coming under
the special technical knowledge and training of such agencies.”
In the case at bar, there is no question that the controversy was
pending before the Secretary of DENR when it was forwarded to him To sustain the claim of private respondents would in effect bring the
following the denial by the petitioners of the motion for reconsideration of instant controversy beyond the pale of the principle of exhaustion of
administrative remedies and fall within the ambit of excepted cases
private respondents through the order of July 12, 1989. In their letter of
reconsideration dated June 28, 1989,[23] private respondents clearly heretofore stated. However, considering the circumstances prevailing in
recognize the presence of an administrative forum to which they seek to this case, we can not but rule out these assertions of private respondents
to be without merit. First, they argued that there was violation of due
avail, as they did avail, in the resolution of their case. The letter, reads,
thus: process because they did not receive the May 23, 1989 order of confiscation
of petitioner Layugan. This contention has no leg to stand on. Due process
“xxx does not necessarily mean or require a hearing, but simply an opportunity
or right to be heard.[28] One may be heard , not solely by verbal
If this motion for reconsideration does not merit your presentation but also, and perhaps many times more creditably and
favorable action, then this letter should be considered as an practicable than oral argument, through pleadings.[29]
appeal to the Secretary.”[24]
In administrative proceedings moreover, technical rules of procedure
It was easy to perceive then that the private respondents looked up to and evidence are not strictly applied; administrative process cannot be fully
the Secretary for the review and disposition of their case. By appealing to equated with due process in its strict judicial sense.[30] Indeed, deprivation
him, they acknowledged the existence of an adequate and plain remedy still of due process cannot be successfully invoked where a party was given the
available and open to them in the ordinary course of the law. Thus, they chance to be heard on his motion for reconsideration,[31] as in the instant
cannot now, without violating the principle of exhaustion of administrative case, when private respondents were undisputedly given the opportunity to
remedies, seek court’s intervention by filing an action for replevin for the present their side when they filed a letter of reconsideration dated June 28,
grant of their relief during the pendency of an administrative proceedings. 1989 which was, however, denied in an order of July 12, 1989 of Executive
Moreover, it is important to point out that the enforcement of forestry Director Baggayan. In Navarro III vs. Damasco,[32] we ruled that :
laws, rules and regulations and the protection, development and “The essence of due process is simply an opportunity to be
management of forest lands fall within the primary and special heard, or as applied to administrative proceedings, an opportunity
responsibilities of the Department of Environment and Natural Resources. to explain one’s side or an opportunity to seek a reconsideration
By the very nature of its function, the DENR should be given a free hand of the action or ruling complained of. A formal or trial type hearing
unperturbed by judicial intrusion to determine a controversy which is well is not at all times and in all instances essential. The requirements
within its jurisdiction. The assumption by the trial court, therefore, of the are satisfied when the parties are afforded fair and reasonable
replevin suit filed by private respondents constitutes an unjustified opportunity to explain their side of the controversy at hand. What
encroachment into the domain of the administrative agency’s prerogative.
BIA | Environmental Law | 113
is frowned upon is the absolute lack of notice or hearing.” must be read in such a way as to give effect to the purpose projected in the
statute.[33] Statutes should be construed in the light of the object to be
Second, private respondents imputed the patent illegality of seizure achieved and the evil or mischief to be suppressed, and they should be
and forfeiture of the truck because the administrative officers of the DENR given such construction as will advance the object, suppress the mischief,
allegedly have no power to perform these acts under the law. They insisted and secure the benefits intended.[34] In this wise, the observation of the
that only the court is authorized to confiscate and forfeit conveyances used Solicitor General is significant, thus:
in transporting illegal forest products as can be gleaned from the second
paragraph of Section 68 of P.D. 705, as amended by E.O. 277. The “But precisely because of the need to make forestry laws
pertinent provision reads as follows: ‘more responsive to present situations and realities’ and in view of
the ‘urgency to conserve the remaining resources of the country,’
“SECTION 68. xxx that the government opted to add Section 68-A. This amendatory
xxx provision is an administrative remedy totally separate and distinct
from criminal proceedings. More than anything else, it is intended
The court shall further order the confiscation in favor of the to supplant the inadequacies that characterize enforcement of
government of the timber or any forest products cut, gathered, forestry laws through criminal actions. The preamble of EO 277-
collected, removed, or possessed, as well as the machinery, the law that added Section 68-A to PD 705-is most revealing:
equipments, implements and tools illegaly [sic] used in the area
where the timber or forest products are found.” (Underline ours) ‘WHEREAS, there is an urgency to conserve the
remaining forest resources of the country for the benefit
A reading, however, of the law persuades us not to go along with and welfare of the present and future generations of
private respondents’ thinking not only because the aforequoted provision Filipinos;
apparently does not mention nor include “conveyances” that can be the
subject of confiscation by the courts, but to a large extent, due to the fact WHEREAS, our forest resources may be effectively
that private respondents’ interpretation of the subject provision unduly conserved and protected through the vigilant
restricts the clear intention of the law and inevitably reduces the other enforcement and implementation of our forestry laws,
provision of Section 68-A , which is quoted herein below: rules and regulations;

“SECTION 68-A. Administrative Authority of the Department WHEREAS, the implementation of our forestry laws
or His Duly Authorized Representative To Order Confiscation. In all suffers from technical difficulties, due to certain
cases of violation of this Code or other forest laws, rules and inadequacies in the penal provisions of the Revised
regulations, the Department Head or his duly authorized Forestry Code of the Philippines; and
representative, may order the confiscation of any forest products WHEREAS, to overcome this difficulties, there is a
illegally cut, gathered, removed, or possessed or abandoned, and need to penalize certain acts more responsive to present
all conveyances used either by land, water or air in the situations and realities;’
commission of the offense and to dispose of the same in
accordance with pertinent laws, regulations and policies on the It is interesting to note that Section 68-A is a new provision
matter.” (Underline ours) authorizing the DENR to confiscate, not only ‘conveyances,’ but
forest products as well. On the other hand, confiscation of forest
It is, thus, clear from the foregoing provision that the Secretary and his products by the ‘court’ in a criminal action has long been provided
duly authorized representatives are given the authority to confiscate and for in Section 68. If as private respondents insist, the power on
forfeit any conveyances utilized in violating the Code or other forest laws, confiscation cannot be exercised except only through the court
rules and regulations. The phrase “to dispose of the same” is broad enough
under Section 68, then Section 68-A would have no purpose at all.
to cover the act of forfeiting conveyances in favor of the government. The Simply put, Section 68-A would not have provided any solution to
only limitation is that it should be made “in accordance with pertinent laws, the problem perceived in EO 277, supra.”[35]
regulations or policies on the matter.” In the construction of statutes, it
BIA | Environmental Law | 114
Private respondents, likewise, contend that the seizure was illegal forest land, or timber from alienable and disposable public lands,
because the petitioners themselves admitted in the Order dated July 12, or from private lands, without any authority under a license
1989 of Executive Director Baggayan that the truck of private respondents agreement, lease, license or permit, shall be guilty of qualified
was not used in the commission of the crime. This order, a copy of which theft as defined and punished under Articles 309 and 310 of the
was given to and received by the counsel of private respondents, reads in Revised Penal Code xxx.” (Underscoring ours; Section 68, P.D.705
part , viz. : before its amendment by E.O.277 )
“xxx while it is true that the truck of your client was not used “SECTION 1. Section 68 of Presidential Decree No.705, as
by her in the commission of the crime, we uphold your claim that amended, is hereby amended to read as follows:
the truck owner is not liable for the crime and in no case could a
criminal case be filed against her as provided under Article 309 ‘Section 68. Cutting, gathering and/or collecting
and 310 of the Revised Penal Code. xxx”[36] timber or other forest products without license. -Any
person who shall cut, gather, collect, remove timber or
We observed that private respondents misread the content of the other forest products from any forest land, or timber
aforestated order and obviously misinterpreted the intention of petitioners. from alienable or disposable public land, or from private
What is contemplated by the petitioners when they stated that the truck land, without any authority, or possess timber or other
"was not used in the commission of the crime" is that it was not used in the forest products without the legal documents as required
commission of the crime of theft, hence, in no case can a criminal action be under existing forest laws and regulations, shall be
filed against the owner thereof for violation of Article 309 and 310 of the punished with the penalties imposed under Articles 309
Revised Penal Code. Petitioners did not eliminate the possibility that the and 310 of the Revised Penal Code xxx." (Underscoring
truck was being used in the commission of another crime, that is, the ours; Section 1, E.O No. 277 amending Section 68, P.D.
breach of Section 68 of P.D.705 as amended by E.O. 277. In the same 705 as amended)
order of July 12, 1989, petitioners pointed out:
With the introduction of Executive Order No. 277 amending Section 68
“xxx However, under Section 68 of P.D.705 as amended and of P.D. 705, the act of cutting, gathering, collecting, removing, or
further amended by Executive Order No.277 specifically provides possessing forest products without authority constitutes a distinct offense
for the confiscation of the conveyance used in the transport of independent now from the crime of theft under Articles 309 and 310 of the
forest products not covered by the required legal documents. She Revised Penal Code, but the penalty to be imposed is that provided for
may not have been involved in the cutting and gathering of the under Article 309 and 310 of the Revised Penal Code. This is clear from the
product in question but the fact that she accepted the goods for a language of Executive Order No. 277 when it eliminated the phrase “ shall
fee or fare the same is therefor liable. xxx”[37] be guilty of qualified theft as defined and punished under Articles 309 and
310 of the Revised Penal Code ” and inserted the words “ shall be punished
Private respondents, however, contended that there is no crime with the penalties imposed under Article 309 and 310 of the Revised Penal
defined and punishable under Section 68 other than qualified theft, so that, Code ”. When the statute is clear and explicit, there is hardly room for any
when petitioners admitted in the July 12, 1989 order that private extended court ratiocination or rationalization of the law.[38]
respondents could not be charged for theft as provided for under Articles
309 and 310 of the Revised Penal Code, then necessarily private From the foregoing disquisition, it is clear that a suit for replevin can
respondents could not have committed an act constituting a crime under not be sustained against the petitioners for the subject truck taken and
Section 68. We disagree. For clarity, the provision of Section 68 of P.D. retained by them for administrative forfeiture proceedings in pursuant to
705 before its amendment by E.O. 277 and the provision of Section 1 of Section 68-A of the P. D. 705, as amended. Dismissal of the replevin suit for
E.O. No.277 amending the aforementioned Section 68 are reproduced lack of cause of action in view of the private respondents’ failure to exhaust
herein, thus: administrative remedies should have been the proper course of action by
the lower court instead of assuming jurisdiction over the case and
“SECTION 68. Cutting, gathering and/or collecting timber or consequently issuing the writ ordering the return of the truck. Exhaustion of
other products without license. - Any person who shall cut , gather the remedies in the administrative forum, being a condition precedent prior
, collect , or remove timber or other forest products from any
BIA | Environmental Law | 115
to one’s recourse to the courts and more importantly, being an element of Order No. 19, Series of 1966. The Decision of the Department
private respondents’ right of action, is too significant to be waylaid by the Head may not be reviewed by the courts except through a special
lower court. civil action for certiorari or prohibition.
It is worth stressing at this point, that a suit for replevin is founded WHEREFORE, the Petition is GRANTED; the Decision of the
solely on the claim that the defendant wrongfully withholds the property respondent Court of Appeals dated October 16, 1991 and its Resolution
sought to be recovered. It lies to recover possession of personal chattels dated July 14, 1992 are hereby SET ASIDE AND REVERSED; the Restraining
that are unlawfully detained.[39] “To detain” is defined as to mean “to hold Order promulgated on September 27, 1993 is hereby made permanent; and
or keep in custody,”[40] and it has been held that there is tortuous taking the Secretary of DENR is directed to resolve the controversy with utmost
whenever there is an unlawful meddling with the property, or an exercise dispatch.
or claim of dominion over it, without any pretense of authority or right; this,
SO ORDERED.
without manual seizing of the property is sufficient.[41] Under the Rules of
Court, it is indispensable in replevin proceedings, that the plaintiff must
show by his own affidavit that he is entitled to the possession of property, EXECUTIVE ORDER NO. 318
that the property is wrongfully detained by the defendant, alleging the PROMOTING SUSTAINABLE FOREST MANAGEMENT
cause of detention, that the same has not been taken for tax assessment, IN THE PHILIPPINES
or seized under execution, or attachment, or if so seized, that it is exempt
from such seizure, and the actual value of the property.[42] Private WHEREAS, the Constitution provides for the protection and advancement
respondents miserably failed to convince this Court that a wrongful of the right of the people to a balanced and healthy environment in accord
detention of the subject truck obtains in the instant case. It should be with the rhythm and harmony of nature, to protect the Filipino people from
noted that the truck was seized by the petitioners because it was disasters like floods or landslides, and from threats to environmental and
transporting forest products with out the required permit of the DENR in economic security like wood and water shortage, biodiversity loss, air
manifest contravention of Section 68 of P.D. 705 as amended by E.O 277. pollution and drought. Likewise, it provides for the full, efficient and rights-
Section 68-A of P.D. 705, as amended, unquestionably warrants the based use of natural resources to abate poverty, promote industrialization
confiscation as well as the disposition by the Secretary of DENR or his duly and full employment, affirm the diverse cultures of the Filipino, and ensure
authorized representatives of the conveyances used in violating the their availability to present and future generations;
provision of forestry laws. Evidently, the continued possession or detention WHEREAS, Sustainable Forest Management (SFM) is provided in the Global
of the truck by the petitioners for administrative forfeiture proceeding is Plan of implementation of the World Summit on Sustainable Development
legally permissible, hence , no wrongful detention exists in the case at bar. adopted in Johannesburg, as an international strategy for developing and
managing forests;
Moreover, the suit for replevin is never intended as a procedural tool to WHEREAS, important socio-economic and environmental changes and
question the orders of confiscation and forfeiture issued by the DENR in policy reforms that directly affect the forestry sector have taken place since
pursuance to the authority given under P.D.705, as amended. Section 8 of the issuance in 1975 of Presidential Decree No. 705, otherwise known as
the said law is explicit that actions taken by the Director of the Bureau of the Revised Forestry Code of the Philippines, and unless and until otherwise
Forest Development concerning the enforcement of the provisions of the directed by Congress, there is a need to provide guidance to national
said law are subject to review by the Secretary of DENR and that courts agencies and instrumentalities on how to best harmonize these policy
may not review the decisions of the Secretary except through a special civil reforms and make the forestry sector responsive to external changes, and
action for certiorari or prohibition. It reads : attain SFM in the Philippines;
WHEREAS, logging or any commercial exploitation of forestry resources in
SECTION 8 . REVIEW - All actions and decisions of the
old growth forests, proclaimed watersheds and other areas covered by the
Director are subject to review, motu propio or upon appeal of any
National Integrated Protected Areas System (NIPAS) is prohibited to ensure
person aggrieved thereby, by the Department Head whose
the perpetual existence of all native plants and animals;
decision shall be final and executory after the lapse of thirty (30)
WHEREAS, a watershed-based integrated ecosystems management
days from the receipt of the aggrieved party of said decision,
approach is deemed appropriate for SFM due to the interrelationships and
unless appealed to the President in accordance with Executive
BIA | Environmental Law | 116
interactions between and among the various ecosystems of a watershed 2.2.3 The establishment of tree parks, regreening and roadside planting of
such as the uplands and coastal areas; forest species in open and appropriate spaces shall be prioritized to mitigate
NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the worsening urban air quality and global warming.
Republic of the Philippines, by virtue of the powers vested in me by the 2.3 Community- Based Forest Conservation and Development
Constitution, do hereby order: 2.3.1 Community-Based Forest Management (CBFM) shall be the primary
strategy in all forest conservation and development and related activities,
SECTION 1. Declaration of Policy. It shall be the Policy of the including joint ventures, production sharing and co-production; it shall be
Government to pursue the sustainable management of forests and encouraged in all private sector forestry enterprises and ventures.
forestlands in watersheds. Watersheds shall be deemed as ecosystem 2.3.2 CBFM shall be a collaborative undertaking of the national government
management units and shall be managed in a holistic, scientific, rights- and the LGU’s, local peoples, community organizations, civil society
based, technology-based and community-based manner and observing the organizations (CSO’s), and private business entities.
principles of multiple-use, decentralization and devolution, and active 2.3.3 Local cultures, values, traditions, religious beliefs and the rights of
participation of local government units (LGUs), synergism of economic, indigenous peoples to their ancestral lands and domains as promoted
ecological, social and cultural objectives, and the rational utilization of all and/or defined by existing legislation shall be recognized and respected in
resources found therein. It shall likewise be the policy of the Government to all forestry undertakings of the State and the private sector.
promote sound, effective and efficient, globally-competitive and equitable 2.4 Incentives for Enhancing Private Investments, Economic
forestry practices in both public and private domains. Contribution and Global Competitiveness of Forest-Based
Industries
SECTION 2. Guiding Principles. The pursuit of these policies shall be 2.4.1 The government shall provide a favorable and stable policy and
guided by the following principles: investment environment that shall promote the development of efficient,
2.1 Delineation, Classification and Demarcation of State globally-competitive and environment-friendly forest based industries,
Forestlands ensure their sustainable raw material supply and encourage value-added
2.1.1 State forestlands shall be identified, classified and processing in-country to boost rural employment and the economy.
delineated/demarcated on the ground and shall constitute the permanent 2.4.2 Filipino entrepreneurship in forestry shall be encouraged and
forest estate unless otherwise stipulated by Congress; the same shall be supported.
categorized and managed either as primarily for production or as primarily 2.4.3 A package of incentives and services that are responsive to the
for protection purposes, and in both cases, placed under a formal development of forests in private and public forestlands shall be adopted to
management scheme. encourage the development of private forests, including the deregulation of
2.1.2 Conversions of forestlands into non-forestry uses shall be allowed only privately-developed forests and privately-planted trees and enhancement of
through an act of Congress and upon the recommendation of concerned capacities of stakeholders to engage in private forest development and
government agencies. related activities.
2.2 Holistic, Sustainable and Integrated Development of Forestry 2.4.4 The development of high-value tree crops and non-timber forest crops
Resources in public forestlands, private lands and in home forest gardens shall be
2.2.1 The development and management of the Philippine forests and promoted and encouraged to enhance economic and ecological benefits and
forestlands including the coastal forests shall be for the highest and widest attain self-sufficiency in the country’s wood requirements.
public benefit and shall be based on the inherent productive capacity and 2.4.5 Incentives shall be provided to encourage co-management of forest
sustainable use of these resources for the present and future generations of resources involving national and other government agencies (NGAs/OGAs),
Filipinos. LGUs, CSOs, and the private sector.
2.2.2 The priority development, protection and management activity of any 2.5 Proper Valuation and Pricing of Forestry Resources and
management unit shall be the rehabilitation of open and/or denuded, Financing SFM
degraded, fragile forestlands; and slope stabilization and protection to 2.5.1 Mechanisms for proper valuation and fair and comprehensive pricing
address occurrence of floods, landslides and similar ecological disasters. of forest products and services, including water for domestic, industrial,
irrigation and power generation, biodiversity and eco-tourism, shall be
developed and promoted.
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2.5.2 Local, regional and national plow-back mechanisms of utilizing 2.6.7 Networks and linkages with local and international institutions, CSOs,
proceeds from the use of watersheds, forests and forestlands for ecological LGUs, and industries involved in the promotion and practice of SFM shall be
and environmental services such as, but not limited to power generation, strengthened.
supplying domestic and irrigation water, and ecotourism, shall be developed
and promoted to finance forest protection, rehabilitation, and development. SECTION 3. Issuance of Implementing Rules and Regulations. The
2.5.3 Appropriate and doable mechanisms for adopting the principles of DENR, within one hundred eighty (180) days from the issuance hereof, and
environment and natural resources accounting (ENRA) and watershed in coordination with other pertinent national and local agencies and bodies,
ecosystems as minimum spatial units of accounts shall be developed and LGU leagues, Civil Society Organizations, industry groups and academe,
institutionalized. shall formulate and promulgate the implementing rules and regulations,
2.5.4 Innovative financing systems and approaches, such as securitization, procedures, guidelines and priority actions necessary to implement this
bonds and collaborative investments, shall be encouraged to support Order.
sustainable forest management and enterprises and the conservation of
forest-based biodiversity in the Philippines. SECTION 4. Effectivity. This Order shall take effect immediately.
2.5.5 Government investments in and out-sourced financing for forest
development such as the application of clean development mechanism DONE, in the City of Manila, this 9th day of June, in the year of our Lord,
(CDM) shall be prioritized in favor of forestlands that serve a significantly Two Thousand and Four.
large population such as critical watersheds and/or which serve to reduce
poverty and inequitable access to forests such as those under CBFM and/or
co-management by NGAs/OGAs, LGUs, industries, CSOs, and local REPUBLIC ACT NO. 7942 March 3, 1995
communities.
2.6 Institutional Support for SFM AN ACT INSTITUTING A NEW SYSTEM OF MINERAL RESOURCES
2.6.1 The principles and practices of good governance such as EXPLORATION, DEVELOPMENT, UTILIZATION, AND
transparency, accountability and participatory decision-making, in CONSERVATION
transactions, decisions and actions affecting forestry, in all levels, and the
policy of streamlining, decentralization, devolution and deregulation shall be
CHAPTER I
adopted, promoted and institutionalized in the Government service.
INTRODUCTORY PROVISIONS
2.6.2 Partnerships and collaboration between and among the DENR,
NGAs/OGAs, LGUs, professional forestry organizations, local communities,
civic groups, CSOs, basic sectors, academic and other research and Section 1
development institutions and other stakeholders shall be promoted. Title
2.6.3 Forestry administrative systems and institutions, including research
and development, shall be upgraded and modernized. This Act shall be known as the "Philippine Mining Act of 1995."
2.6.4 Academic programs and scientific research shall be harnessed to
generate information, technologies and policies that will strengthen national Section 2
capacities for SFM under the frameworks of watershed ecosystem Declaration of Policy
management (WEM) and CBFM.
2.6.5 Human resources development programs, for all stakeholders shall be All mineral resources in public and private lands within the territory and
rationalized and upgraded in support of SFM; forestry extension services by exclusive economic zone of the Republic of the Philippines are owned by the
NGAs/OGAs and LGU shall be upgraded and intensified and undertaken with State. It shall be the responsibility of the State to promote their rational
CSOs, to support CBFM, private forestry, forestry co-management exploration, development, utilization and conservation through the
enterprises, and the development of forest-based biodiversity. combined efforts of government and the private sector in order to enhance
2.6.6 Forest land use plans shall be incorporated by LGUs in their national growth in a way that effectively safeguards the environment and
comprehensive land use plans. National Government agencies shall assist protect the rights of affected communities.
LGUs in this endeavor.
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Section 3 j. Development means the work undertaken to explore and prepare
Definition of Terms an ore body or a mineral deposit for mining, including the
construction of necessary infrastructure and related facilities.
As used in and for purposes of this Act, the following terms, whether in
singular or plural, shall mean: k. Director means the Director of the Mines and Geosciences
Bureau.
a. Ancestral lands refers to all lands exclusively and actually
possessed, occupied, or utilized by indigenous cultural communities l. Ecological profile or eco-profile refers to geographic-based
by themselves or through their ancestors in accordance with their instruments for planners and decision-makers which presents an
customs and traditions since time immemorial, and as may be evaluation of the environmental quality and carrying capacity of an
defined and delineated by law. area.

b. Block or meridional block means an area bounded by m. Environmental compliance certificate (ECC) refers to the
one-half (1/2) minute of latitude and one-half (1/2) minute document issued by the government agency concerned certifying
of longitude, containing approximately eighty-one hectares that the project under consideration will not bring about an
(81 has.). unacceptable environmental impact and that the proponent has
complied with the requirements of the environmental impact
c. Bureau means the Mines and Geosciences Bureau under the statement system.
Department of Environment and Natural Resources.
n. Environmental impact statement (EIS) is the document which
d. Carrying capacity refers to the capacity of natural and human aims to identify, predict, interpret, and communicate information
environments to accommodate and absorb change without regarding changes in environmental quality associated with a
experiencing conditions of instability and attendant degradation. proposed project and which examines the range of alternatives for
the objectives of the proposal and their impact on the environment.
e. Contiguous zone refers to water, sea bottom and substratum
measured twenty-four nautical miles (24 n.m.) seaward from the o. Exclusive economic zone means the water, sea bottom and
base line of the Philippine archipelago. subsurface measured from the baseline of the Philippine archipelago
up to two hundred nautical miles (200 n.m.) offshore.
f. Contract area means land or body of water delineated for
purposes of exploration, development, or utilization of the minerals p. Existing mining/quarrying right means a valid and subsisting
found therein. mining claim or permit or quarry permit or any mining lease
contract or agreement covering a mineralized area granted/issued
g. Contractor means a qualified person acting alone or in under pertinent mining laws.
consortium who is a party to a mineral agreement or to a financial
or technical assistance agreement. q. Exploration means the searching or prospecting for mineral
resources by geological, geochemical or geophysical surveys,
h. Co-production agreement (CA) means an agreement entered into remote sensing, test pitting, trenching, drilling, shaft sinking,
between the Government and one or more contractors in tunneling or any other means for the purpose of determining the
accordance with Section 26(b) hereof. existence, extent, quantity and quality thereof and the feasibility of
mining them for profit.
i. Department means the Department of Environment and Natural
Resources.
BIA | Environmental Law | 119
r. Financial or technical assistance agreement means a contract z. Mine wastes and tailings shall mean soil and rock materials from
involving financial or technical assistance for large-scale exploration, surface or underground mining and milling operations with no
development, and utilization of mineral resources. economic value to the generator of the same.

s. Force majeure means acts or circumstances beyond the aa. Minerals refers to all naturally occurring inorganic
reasonable control of contractor including, but not limited to, war, substance in solid, gas, liquid, or any intermediate state
rebellion, insurrection, riots, civil disturbance, blockade, sabotage, excluding energy materials such as coal, petroleum, natural
embargo, strike, lockout, any dispute with surface owners and other gas, radioactive materials, and geothermal energy.
labor disputes, epidemic, earthquake, storm, flood or other adverse
weather conditions, explosion, fire, adverse action by government ab. Mineral agreement means a contract between the government
or by any instrumentality or subdivision thereof, act of God or any and a contractor, involving mineral production-sharing agreement,
public enemy and any cause that herein describe over which the co-production agreement, or joint-venture agreement.
affected party has no reasonable control.
ac. Mineral land means any area where mineral resources are
t. Foreign-owned corporation means any corporation, partnership, found.
association, or cooperative duly registered in accordance with law in
which less than fifty per centum (50%) of the capital is owned by ad. Mineral resource means any concentration of minerals/rocks
Filipino citizens. with potential economic value.

u. Government means the government of the Republic of the ae. Mining area means a portion of the contract area identified by
Philippines. the contractor for purposes of development, mining, utilization, and
sites for support facilities or in the immediate vicinity of the mining
v. Gross output means the actual market value of minerals or operations.
mineral products from its mining area as defined in the National
Internal Revenue Code. af. Mining operation means mining activities involving exploration,
feasibility, development, utilization, and processing.
w. Indigenous cultural community means a group or tribe of
indigenous Filipinos who have continuously lived as communities on ag. Non-governmental organization (NGO) includes nonstock,
communally-bounded and defined land since time immemorial and nonprofit organizations involved in activities dealing with resource
have succeeded in preserving, maintaining, and sharing common and environmental conservation, management and protection.
bonds of languages, customs, traditions, and other distinctive
cultural traits, and as may be defined and delineated by law.
ah. Net assets refers to the property, plant and equipment as
reflected in the audited financial statement of the contractor net of
x. Joint venture agreement (JVA) means an agreement entered into depreciation, as computed for tax purposes, excluding appraisal
between the Government and one or more contractors in increase and construction in progress.
accordance with Section 26(c) hereof.
ai. Offshore means the water, sea bottom and subsurface from the
y. Mineral processing means the milling, beneficiation or upgrading shore or coastline reckoned from the mean low tide level up to the
of ores or minerals and rocks or by similar means to convert the two hundred nautical miles (200 n.m.) exclusive economic zone
same into marketable products. including the archipelagic sea and contiguous zone.

BIA | Environmental Law | 120


aj. Onshore means the landward side from the mean tide elevation, ar. Quarrying means the process of extracting, removing and
including submerged lands in lakes, rivers and creeks. disposing quarry resources found on or underneath the surface of
private or public land.
ak. Ore means a naturally occurring substance or material from
which a mineral or element can be mined and/or processed for as. Quarry permit means a document granted to a qualified person
profit. for the extraction and utilization of quarry resources on public or
private lands.
al. Permittee means the holder of an exploration permit.
at. Quarry resources refers to any common rock or other mineral
am. Pollution control and infrastructure devices refers to substances as the Director of Mines and Geosciences Bureau may
infrastructure, machinery, equipment and/or improvements used for declare to be quarry resources such as, but not limited to, andesite,
impounding, treating or neutralizing, precipitating, filtering, basalt, conglomerate, coral sand, diatomaceous earth, diorite,
conveying and cleansing mine industrial waste and tailings as well decorative stones, gabbro, granite, limestone, marble, marl, red
as eliminating or reducing hazardous effects of solid particles, burning clays for potteries and bricks, rhyolite, rock phosphate,
chemicals, liquids or other harmful byproducts and gases emitted sandstone, serpentine, shale, tuff, volcanic cinders, and volcanic
from any facility utilized in mining operations for their disposal. glass: Provided, That such quarry resources do not contain metals
or metallic constituents and/or other valuable minerals in
an. President means the President of the Republic of the economically workable quantities: Provided, further, That non-
Philippines. metallic minerals such as kaolin, feldspar, bull quartz, quartz or
silica, sand and pebbles, bentonite, talc, asbestos, barite, gypsum,
bauxite, magnesite, dolomite, mica, precious and semi-precious
ao. Private land refers to any land belonging to any private person
stones, and other non-metallic minerals that may later be
which includes alienable and disposable land being claimed by a
discovered and which the: Director declares the same to be of
holder, claimant, or occupant who has already acquired a vested
economically workable quantities, shall not be classified under the
right thereto under the law, although the corresponding certificate
category of quarry resources.
or evidence of title or patent has not been actually issued.

au. Regional director means the regional director of any mines


ap. Public land refers to lands of the public domain which have been
regional office under the Department of Environment and Natural
classified as agricultural lands and subject to management and
Resources.
disposition or concession under existing laws.

av. Regional office means any of the mines regional offices of the
aq. Qualified person means any citizen of the Philippines with
Department of Environment and Natural Resources.
capacity to contract, or a corporation, partnership, association, or
cooperative organized or authorized for the purpose of engaging in
miring, with technical and financial capability to undertake mineral aw. Secretary means the Secretary of the Department of
resources development and duly registered in accordance with law Environment and Natural Resources.
at least sixty per centum (60%) of the capital of which is owned by
citizens of the Philippines: Provided, That a legally organized ax. Special allowance refers to payment to the claim-owners or
foreign-owned corporation shall be deemed a qualified person for surface right-owners particularly during the transition period from
purposes of granting an exploration permit, financial or technical Presidential Decree No. 463 and Executive Order No. 279, series of
assistance agreement or mineral processing permit. 1987.

ay. State means the Republic of the Philippines.

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az. Utilization means the extraction or disposition of minerals. Section 6
Other Reservations

CHAPTER II Mining operations in reserved lands other than mineral reservations may be
GOVERNMENT MANAGEMENT undertaken by the Department, subject to limitations as herein provided. In
the event that the Department cannot undertake such activities, they may
Section 4 be undertaken by a qualified person in accordance with the rules and
Ownership of Mineral Resources regulations promulgated by the Secretary. The right to develop and utilize
the minerals found therein shall be awarded by the President under such
Mineral resources are owned by the State and the exploration, terms and conditions as recommended by the Director and approved by the
development, utilization, and processing thereof shall be under its full Secretary: Provided, That the party who undertook the exploration of said
control and supervision. The State may directly undertake such activities or reservation shall be given priority. The mineral land so awarded shall be
it may enter into mineral agreements with contractors. automatically excluded from the reservation during the term of the
agreement: Provided, further, That the right of the lessee of a valid mining
contract existing within the reservation at the time of its establishment shall
The State shall recognize and protect the rights of the indigenous cultural
not be prejudiced or impaired.
communities to their ancestral lands as provided for by the Constitution.

Section 7
Section 5
Periodic Review of Existing Mineral Reservations
Mineral Reservations

The Secretary shall periodically review existing mineral reservations for the
When the national interest so requires, such as when there is a need to
purpose of determining whether their continued existence is consistent with
preserve strategic raw materials for industries critical to national
the national interest, and upon his recommendation, the President may, by
development, or certain minerals for scientific, cultural or ecological value,
proclamation, alter or modify the boundaries thereof or revert the same to
the President may establish mineral reservations upon the recommendation
the public domain without prejudice to prior existing rights.
of the Director through the Secretary. Mining operations in existing mineral
reservations and such other reservations as may thereafter be established,
shall be undertaken by the Department or through a contractor: Provided, Section 8
That a small scale-mining cooperative covered by Republic Act No. 7076 Authority of the Department
shall be given preferential right to apply for a small-scale mining agreement
for a maximum aggregate area of twenty-five percent (25%) of such The Department shall be the primary government agency responsible for
mineral reservation, subject to valid existing mining/quarrying rights as the conservation, management, development, and proper use of the State's
provided under Section 112 Chapter XX hereof. All submerged lands within mineral resources including those in reservations, watershed areas, and
the contiguous zone and in the exclusive economic zone of the Philippines lands of the public domain. The Secretary shall have the authority to enter
are hereby declared to be mineral reservations. into mineral agreements on behalf of the Government upon the
recommendation of the Director, promulgate such rules and regulations as
A ten per centum (10%) share of all royalties and revenues to be derived by may be necessary to implement the intent and provisions of this Act.
the government from the development and utilization of the mineral
resources within mineral reservations as provided under this Act shall accrue Section 9
to the Mines and Geosciences Bureau to be allotted for special projects and Authority of the Bureau
other administrative expenses related to the exploration and development of
other mineral reservations mentioned in Section 6 hereof. The Bureau shall have direct charge in the administration and disposition of
mineral lands and mineral resources and shall undertake geological, mining,

BIA | Environmental Law | 122


metallurgical, chemical, and other researches as well as geological and Section 14
mineral exploration surveys. The Director shall recommend to the Secretary Recording System
the granting of mineral agreements to duly qualified persons and shall
monitor the compliance by the contractor of the terms and conditions of the There shall be established a national and regional filing and recording
mineral agreements. The Bureau may confiscate surety, performance and system. A mineral resource database system shall be set up in the Bureau
guaranty bonds posted through an order to be promulgated by the Director. which shall include, among others, a mineral rights management system.
The Director may deputize, when necessary, any member or unit of the The Bureau shall publish at least annually, a mineral gazette of nationwide
Philippine National Police, barangay, duly registered non-governmental circulation containing among others, a current list of mineral rights, their
organization (NGO) or any qualified person to police all mining activities. location in the map, mining rules and regulations, other official acts
affecting mining, and other information relevant to mineral resources
Section 10 development. A system and publication fund shall be included in the regular
Regional Offices budget of the Bureau.

There shall be as many regional offices in the country as may be established


by the Secretary, upon the recommendation of the Director. CHAPTER III
SCOPE OF APPLICATION
Section 11
Processing of Applications Section 15
Scope of Application
The system of processing applications for mining rights shall be prescribed
in the rules and regulations of this Act. This Act shall govern the exploration, development, utilization and
processing of all mineral resources.
Section 12
Survey, Charting and Delineation of Mining Areas Section 16
Opening of Ancestral Lands for Mining Operations
A sketch plan or map of the contract or mining area prepared by a
deputized geodetic engineer suitable for publication purposes shall be No ancestral land shall be opened for mining-operations without prior
required during the filing of a mineral agreement or financial or technical consent of the indigenous cultural community concerned.
assistance agreement application. Thereafter, the contract or mining area
shall be surveyed and monumented by a deputized geodetic engineer or Section 17
bureau geodetic engineer and the survey plan shall be approved by the Royalty Payments for Indigenous Cultural Communities
Director before the approval of the mining feasibility.
In the event of an agreement with an indigenous cultural community
Section 13 pursuant to the preceding section, the royalty payment, upon utilization of
Meridional Blocks the minerals shall be agreed upon by the parties. The said royalty shall form
part of a trust fund for the socioeconomic well-being of the indigenous
For purposes of the delineation of the contract or mining areas under this cultural community.
Act, the Philippine territory and its exclusive economic zone shall be divided
into meridional blocks of one-half (1/2) minute of latitude and one-half (1/2) Section 18
minute of longitude. Areas Open to Mining Operations

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Subject to any existing rights or reservations and prior agreements of all CHAPTER IV
parties, all mineral resources in public or private lands, including timber or EXPLORATION PERMIT
forestlands as defined in existing laws, shall be open to mineral agreements
or financial or technical assistance agreement applications. Any conflict that Section 20
may arise under this provision shall be heard and resolved by the panel of Exploration Permit
arbitrators.
An exploration permit grants the right to conduct exploration for
Section 19 all minerals in specified areas. The Bureau shall have the authority
Areas Closed to Mining Applications to grant an exploration Permit to a qualified person.

Mineral agreement or financial or technical assistance agreement Section 21


applications shall not be allowed: Terms and Conditions of the Exploration Permit

a. In military and other government reservations, except upon prior An exploration permit shall be for a period of two (2) years, subject to
written clearance by the government agency concerned; annual review and relinquishment or renewal upon the recommendation of
the Director.
b. Near or under public or private buildings, cemeteries,
archeological and historic sites, bridges, highways, waterways, Section 22
railroads, reservoirs, dams or other infrastructure projects, public or Maximum Areas for Exploration Permit
private works including plantations or valuable crops, except upon
written consent of the government agency or private entity The maximum area that a qualified person may hold at any one time shall
concerned; be:

c. In areas covered by valid and existing mining rights; a. Onshore, in any one province

d. In areas expressedly prohibited by law; 1. for individuals, twenty (20) blocks: and

e. In areas covered by small-scale miners as defined by law unless 2. for partnerships, corporations, cooperatives, or
with prior consent of the small-scale miners, in which case a royalty associations, two hundred (200) blocks.
payment upon the utilization of minerals shall be agreed upon by
the parties, said royalty forming a trust fund for the socioeconomic
b. Onshore, in the entire Philippines
development of the community concerned; and
1. for individuals, forty (40) blocks; and
f. Old growth or virgin forests, proclaimed watershed forest
reserves, wilderness areas, mangrove forests, mossy forests,
national parks provincial/municipal forests, parks, greenbelts, game 2. for partnerships, corporations, cooperatives, or
refuge and bird sanctuaries as defined by law and in areas associations, four hundred (400) blocks.
expressly prohibited under the National Integrated Protected Areas
System (NIPAS) under Republic Act No. 7586, Department c. Offshore, beyond five hundred meters (500m) from the mean low
Administrative Order No. 25, series of 1992 and other laws. tide level:

1. for individuals, one hundred (100) blocks; and


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2. for partnerships, corporations, cooperatives, or Section 25
associations, one thousand (1,000) blocks. Transfer or Assignment

Section 23 An exploration permit may be transferred or assigned to a qualified person


Rights and Obligations of the Permittee subject to the approval of the Secretary upon the recommendation of the
Director.
An exploration permit shall grant to the permittee, his heirs or successors-
in-interest, the right to enter, occupy and explore the area: Provided, That if
private or other parties are affected, the permittee shall first discuss with CHAPTER V
the said parties the extent, necessity, and manner of his entry, occupation MINERAL AGREEMENTS
and exploration and in case of disagreement, a panel of arbitrators shall
resolve the conflict or disagreement. Section 26
Modes of Mineral Agreement
The permittee shall undertake an exploration work on the area as specified
by its permit based on an approved work program. For purposes of mining operations, a mineral agreement may take the
following forms as herein defined:
Any expenditure in excess of the yearly budget of the approved work
program may be carried forward and credited to the succeeding years a. Mineral production sharing agreement is an agreement where the
covering the duration of the permit. The Secretary, through the Director, Government grants to the contractor the exclusive right to conduct
shall promulgate rules and regulations governing the terms and conditions mining operations within a contract area and shares in the gross
of the permit. output. The contractor shall provide the financing, technology,
management and personnel necessary for the implementation of
The permittee may apply for a mineral production sharing agreement, joint this agreement.
venture agreement, co-production agreement or financial or technical
assistance agreement over the permit area, which application shall be b. Co-production agreement is an agreement between the
granted if the permittee meets the necessary qualifications and the terms Government and the contractor wherein the Government shall
and conditions of any such agreement: Provided, That the exploration provide inputs to the mining operations other than the mineral
period covered by the exploration permit shall be included as part of the resource.
exploration period of the mineral agreement or financial or technical
assistance agreement. c. Joint venture agreement is an agreement where a joint-venture
company is organized by the Government and the contractor with
Section 24 both parties having equity shares. Aside from earnings in equity,
Declaration of Mining Project Feasibility the Government shall be entitled to a share in the gross output.

A holder of an exploration permit who determines the commercial viability A mineral agreement shall grant to the contractor the exclusive right to
of a project covering a mining area may, within the term of the permit, file conduct mining operations and to extract all mineral resources found in the
with the Bureau a declaration of mining project feasibility accompanied by a contract area. In addition, the contractor may be allowed to convert his
work program for development. The approval of the mining project agreement into any of the modes of mineral agreements or financial or
feasibility and compliance with other requirements provided in this Act shall technical assistance agreement covering the remaining period of the original
entitle the holder to an exclusive right to a mineral production sharing agreement subject to the approval of the Secretary.
agreement or other mineral agreements or financial or technical assistance
agreement.

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Section 27 The maximum areas mentioned above that a contractor may hold under a
Eligibility mineral agreement shall not include mining/quarry areas under operating
agreements between the contractor and a
A qualified person may enter into any of the three (3) modes of mineral claimowner/lessee/permittee/licensee entered into under Presidential
agreement with the government for the exploration, development and Decree No. 463.
utilization of mineral resources: Provided, That in case the applicant has
been in the mining industry for any length of time, he should possess a Section 29
satisfactory environmental track record as determined by the Mines and Filing and Approval of Mineral Agreements
Geosciences Bureau and in consultation with the Environmental
Management Bureau of the Department. All proposed mineral agreements shall be filed in the region where the areas
of interest are located, except in mineral reservations which shall be filed
Section 28 with the Bureau.
Maximum Areas for Mineral Agreement
The filing of a proposal for a mineral agreement shall give the proponent
The maximum area that a qualified person may hold at any time under a the prior right to areas covered by the same. The proposed mineral
mineral agreement shall be: agreement will be approved by the Secretary and copies thereof shall be
submitted to the President. Thereafter, the President shall provide a list to
a. Onshore, in any one province Congress of every approved mineral agreement within thirty (30) days from
its approval by the Secretary.
1. for individuals, ten (10) blocks; and
Section 30
2. for partnerships, cooperatives, associations, or Assignment/Transfer
corporations, one hundred (100) blocks.
Any assignment or transfer of rights and obligations under any mineral
b. Onshore, in the entire Philippines agreement except a financial or technical assistance agreement shall be
subject to the prior approval of the Secretary. Such assignment or transfer
shall be deemed automatically approved if not acted upon by the Secretary
1. for individuals, twenty (20) blocks; and
within thirty (30) working days from official receipt thereof, unless patently
unconstitutional or illegal.
2. for partnerships, cooperatives, associations, or
corporations, two hundred (200) blocks.
Section 31
Withdrawal from Mineral Agreements
c. Offshore, in the entire Philippines
The contractor may, by giving due notice at any time during the term of the
1. for individuals fifty (50) blocks; agreement, apply for the cancellation of the mineral agreement due to
causes which, in the opinion of the contractor, make continued mining
2. for partnerships, cooperatives, associations, or operations no longer feasible or viable. The Secretary shall consider the
corporations, five hundred (500) blocks; and notice and issue its decision within a period of thirty (30) days: Provided,
That the contractor has met all its financial, fiscal and legal obligations.
3. for the exclusive economic zone, a larger area to be
determined by the Secretary. Section 32
Terms
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Mineral agreements shall have a term not exceeding twenty-five (25) years a. A firm commitment in the form of a sworn statement, of an
to start from the date of execution thereof, and renewable for another term amount corresponding to the expenditure obligation that will be
not exceeding twenty-five (25) years under the same terms and conditions invested in the contract area: Provided, That such amount shall be
thereof, without prejudice to changes mutually agreed upon by the parties. subject to changes as may be provided for in the rules and
After the renewal period, the operation of the mine may be undertaken by regulations of this Act;
the Government or through a contractor. The contract for the operation of a
mine shall be awarded to the highest bidder in a public bidding after due b. A financial guarantee bond shall be posted in favor of the
publication of the notice thereof: Provided, That the contractor shall have Government in an amount equivalent to the expenditure obligation
the right to equal the highest bid upon reimbursement of all reasonable of the applicant for any year;
expenses of the highest bidder.
c. Submission of proof of technical competence, such as, but not
limited to, its track record in mineral resource exploration,
CHAPTER VI development, and utilization; details of technology to be employed
FINANCIAL OR TECHNICAL ASSISTANCE AGREEMENT in the proposed operation; and details of technical personnel to
undertake the operation;
Section 33
Eligibility d. Representations and warranties that the applicant has all the
qualifications and none of the disqualifications for entering into the
Any qualified person with technical and financial capability to undertake agreement;
large-scale exploration, development, and utilization of mineral resources in
the Philippines may enter into a financial or technical assistance agreement e. Representations and warranties that the contractor has or has
directly with the Government through the Department. access to all the financing, managerial and technical expertise and,
if circumstances demand, the technology required to promptly and
Section 34 effectively carry out the objectives of the agreement with the
Maximum Contract Area understanding to timely deploy these resources under its
supervision pursuant to the periodic work programs and related
The maximum contract area that may be granted per qualified person, budgets, when proper, providing an exploration period up to two
subject to relinquishment shall be: (2) years, extendible for another two (2) years but subject to
annual review by the Secretary in accordance with the
a. 1,000 meridional blocks onshore; implementing rules and regulations of this Act, and further, subject
to the relinquishment obligations;
b. 4,000 meridional blocks offshore; or
f. Representations and warranties that, except for payments for
dispositions for its equity, foreign investments in local enterprises
c. Combinations of a and b provided that it shall not exceed the
which are qualified for repatriation, and local supplier's credits and
maximum limits for onshore and offshore areas.
such other generally accepted and permissible financial schemes for
raising funds for valid business purposes, the contractor shall not
Section 35 raise any form of financing from domestic sources of funds, whether
Terms and Conditions in Philippine or foreign currency, for conducting its mining
operations for and in the contract area;
The following terms, conditions, and warranties shall be incorporated in the
financial or technical assistance agreement, to wit: g. The mining operations shall be conducted in accordance with the
provisions of this Act and its implementing rules and regulations;
BIA | Environmental Law | 127
h. Work programs and minimum expenditures commitments; Section 37
Filing and Evaluation of Financial or Technical Assistance
i. Preferential use of local goods and services to the maximum Agreement Proposals
extent practicable;
All financial or technical assistance agreement proposals shall be filed with
j. A stipulation that the contractors are obligated to give preference the Bureau after payment of the required processing fees. If the proposal is
to Filipinos in all types of mining employment for which they are found to be sufficient and meritorious in form and substance after
qualified and that technology shall be transferred to the same; evaluation, it shall be recorded with the appropriate government agency to
give the proponent the prior right to the area covered by such proposal:
k. Requiring the proponent to effectively use appropriate anti- Provided, That existing mineral agreements, financial or technical assistance
pollution technology and facilities to protect the environment and to agreements and other mining rights are not impaired or prejudiced thereby.
restore or rehabilitate mined out areas and other areas affected by The Secretary shall recommend its approval to the President.
mine tailings and other forms of pollution or destruction;
Section 38
l. The contractors shall furnish the Government records of geologic, Term of Financial or Technical Assistance Agreement
accounting, and other relevant data for its mining operations, and
that book of accounts and records shall be open for inspection by A financial or technical assistance agreement shall have a term not
the government; exceeding twenty-five (25) years to start from the execution thereof,
renewable for not more than twenty-five (25) years under such terms and
m. Requiring the proponent to dispose of the minerals and conditions as may be provided by law.
byproducts produced under a financial or technical assistance
agreement at the highest price and more advantageous terms and Section 39
conditions as provided for under the rules and regulations of this Option to Convert into a Mineral Agreement
Act;
The contractor has the option to convert the financial or technical assistance
n. Provide for consultation and arbitration with respect to the agreement to a mineral agreement at any time during the term of the
interpretation and implementation of the terms and conditions of agreement, if the economic viability of the contract area is found to be
the agreements; and inadequate to justify large-scale mining operations, after proper notice to
the Secretary as provided for under the implementing rules and regulations:
o. Such other terms and conditions consistent with the Constitution Provided, That the mineral agreement shall only be for the remaining period
and with this Act as the Secretary may deem to be for the best of the original agreement.
interest of the State and the welfare of the Filipino people.
In the case of a foreign contractor, it shall reduce its equity to forty percent
Section 36 (40%) in the corporation, partnership, association, or cooperative. Upon
Negotiations compliance with this requirement by the contractor, the Secretary shall
approve the conversion and execute the mineral production-sharing
agreement.
A financial or technical assistance agreement shall be negotiated by the
Department and executed and approved by the President. The President
shall notify Congress of all financial or technical assistance agreements Section 40
within thirty (30) days from execution and approval thereof. Assignment/Transfer

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A financial or technical assistance agreement may be assigned or The maximum area which a qualified person may hold at any one time shall
transferred, in whole or in part, to a qualified person subject to the prior be five hectares (5 has.): Provided, That in large-scale quarry operations
approval of the President: Provided, That the President shall notify Congress involving cement raw materials, marble, granite, sand and gravel and
of every financial or technical assistance agreement assigned or converted construction aggregates, a qualified person and the government may enter
in accordance with this provision within thirty (30) days from the date of the into a mineral agreement as defined herein.
approval thereof.
A quarry permit shall have a term of five (5) years, renewable for like
Section 41 periods but not to exceed a total term of twenty-five (25) years. No quarry
Withdrawal from Financial or Technical Assistance Agreement permit shall be issued or granted on any area covered by a mineral
agreement or financial or technical assistance agreement.
The contractor shall manifest in writing to the Secretary his intention to
withdraw from the agreement, if in his judgment the mining project is no Section 44
longer economically feasible, even after he has exerted reasonable diligence Quarry Fee and Taxes
to remedy the cause or the situation. The Secretary may accept the
withdrawal: Provided, That the contractor has complied or satisfied all his A permittee shall, during the term of his permit, pay a quarry fee as
financial, fiscal or legal obligations. provided for under the implementing rules and regulations. The permittee
shall also pay the excise tax as provided by pertinent laws.

CHAPTER VII Section 45


SMALL-SCALE MINING Cancellation of Quarry Permit

Section 42 A quarry permit may be cancelled by the provincial governor for violations
Small-scale Mining of the provisions of this Act or its implementing rules and regulations or the
terms and conditions of said permit: Provided, That before the cancellation
Small-scale mining shall continue to be governed by Republic Act No. 7076 of such permit, the holder thereof shall be given the opportunity to be heard
and other pertinent laws. in an investigation conducted for the purpose.

Section 46
CHAPTER VIII Commercial Sand and Gravel Permit
QUARRY RESOURCES
Any qualified person may be granted a permit by the provincial governor to
Section 43 extract and remove sand and gravel or other loose or unconsolidated
Quarry Permit materials which are used in their natural state, without undergoing
processing from an area of not more than five hectares (5 has.) and in such
Any qualified person may apply to the provincial/city mining regulatory quantities as may be specified in the permit.
board for a quarry permit on privately-owned lands and/or public lands for
building and construction materials such as marble, basalt, andesite, Section 47
conglomerate, tuff, adobe, granite, gabbro, serpentine, inset filling Industrial Sand and Gravel Permit
materials, clay for ceramic tiles and building bricks, pumice, perlite and
other similar materials that are extracted by quarrying from the ground. The Any qualified person may be granted an industrial sand and gravel permit
provincial governor shall grant the permit after the applicant has complied by the Bureau for the extraction of sand and gravel and other loose or
with all the requirements as prescribed by the rules and regulations. unconsolidated materials that necessitate the use of mechanical processing
BIA | Environmental Law | 129
covering an area of more than five hectares (5 has.) at any one time. The Any qualified person may be granted a guano permit by the provincial
permit shall have a term of five (5) years, renewable for a like period but governor to extract and utilize loose unconsolidated guano and other
not to exceed a total term of twenty-five (25) years. organic fertilizer materials in any portion of a municipality where he has
established domicile. The permit shall be for specific caves and/or for
Section 48 confined sites with locations verified by the Department's field officer in
Exclusive Sand and Gravel Permit accordance with existing rules and regulations.

Any qualified person may be granted an exclusive sand and gravel permit by Section 52
the provincial governor to quarry and utilize sand and gravel or other loose Gemstone Gathering Permit
or unconsolidated materials from public lands for his own use, provided that
there will be no commercial disposition thereof. Any qualified person may be granted a non-exclusive gemstone gathering
permit by the provincial governor to gather loose stones useful as
A mineral agreement or a financial technical assistance agreement gemstones in rivers and other locations.
contractor shall, however, have the right to extract and remove sand and
gravel and other loose unconsolidated materials without need of a permit
within the area covered by the mining agreement for the exclusive use in CHAPTER IX
the mining operations: Provided, That monthly reports of the quantity of TRANSPORT, SALE AND PROCESSING OF MINERALS
materials extracted therefrom shall be submitted to the mines regional
office concerned: Provided, further, That said right shall be coterminous Section 53
with the expiration of the agreement. Ore Transport Permit

Holders of existing mining leases shall likewise have the same rights as that A permit specifying the origin and quantity of non-processed mineral ores or
of a contractor: Provided, That said right shall be coterminous with the minerals shall be required for their transport. Transport permits shall be
expiry dates of the lease. issued by the mines regional director who has jurisdiction over the area
where the ores were extracted. In the case of mineral ores or minerals
Section 49 being transported from the small-scale mining areas to the custom mills or
Government Gratuitous Permit processing plants, the Provincial Mining Regulatory Board (PMRB) concerned
shall formulate their own policies to govern such transport of ores produced
Any government entity or instrumentality may be granted a gratuitous by small-scale miners. The absence of a permit shall be considered as prima
permit by the provincial governor to extract sand and gravel, quarry or facie evidence of illegal mining and shall be sufficient cause for the
loose unconsolidated materials needed in the construction of building and/or Government to confiscate the ores or minerals being transported, the tools
infrastructure for public use or other purposes over an area of not more and equipment utilized, and the vehicle containing the same. Ore samples
than two hectares (2 has.) for a period coterminous with said construction. not exceeding two metric tons (2 m.t.) to be used exclusively for assay or
pilot test purposes shall be exempted from such requirement.
Section 50
Private Gratuitous Permit Section 54
Mineral Trading Registration
Any owner of land may be granted a private gratuitous permit by the
provincial governor. No person shall engage in the trading of mineral products, either locally or
internationally, unless registered with the Department of Trade and Industry
Section 51 and accredited by the Department, with a copy of said registration
Guano Permit submitted to the Bureau.

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Section 55 b. Any activity or expenditure directed towards the development of
Minerals Processing Permit geosciences and mining technology such as, but not limited to,
institutional and manpower development, and basic and applied
No person shall engage in the processing of minerals without first securing a researches. Appropriate supervision and control mechanisms shall
minerals processing permit from the Secretary. Minerals processing permit be prescribed in the implementing rules and regulations of this Act.
shall be for a period of five (5) years renewable for like periods but not to
exceed a total term of twenty-five (25) years. In the case of mineral ores or Section 59
minerals produced by the small-scale miners, the processing thereof as well Training and Development
as the licensing of their custom mills, or processing plants shall continue to
be governed by the provisions of Republic Act No. 7076. A contractor shall maintain an effective program of manpower training and
development throughout the term of the mineral agreement and shall
Section 56 encourage and train Filipinos to participate in all aspects of the mining
Eligibility of Foreign-owned/-controlled Corporation operations, including the management thereof. For highly-technical and
specialized mining operations, the contractor may, subject to the necessary
A foreign-owned/-controlled corporation may be granted a mineral government clearances, employ qualified foreigners.
processing permit.
Section 60
Use of Indigenous Goods, Services and Technologies
CHAPTER X
DEVELOPMENT OF MINING COMMUNITIES, SCIENCE AND MINING A contractor shall give preference to the use of local goods, services and
TECHNOLOGY scientific and technical resources in the mining operations, where the same
are of equivalent quality, and are available on equivalent terms as their
Section 57 imported counterparts.
Expenditure for Community Development and Science and Mining
Technology Section 61
Donations/Turn Over of Facilities
A contractor shall assist in the development of its mining community, the
promotion of the general welfare of its inhabitants, and the development of Prior to cessation of mining operations occasioned by abandonment or
science and mining technology. withdrawal of operations, on public lands by the contractor, the latter shall
have a period of one (1) year therefrom within which to remove his
Section 58 improvements; otherwise, all the social infrastructure and facilities shall be
Credited Activities turned over or donated tax-free to the proper government authorities,
national or local, to ensure that said infrastructure and facilities are
Activities that may be credited as expenditures for development of mining continuously maintained and utilized by the host and neighboring
communities, and science and mining technology are the following: communities.

a. Any activity or expenditure intended to enhance the development Section 62


of the mining and neighboring communities of a mining operation Employment of Filipinos
other than those required or provided for under existing laws, or
collective bargaining agreements, and the like; and A contractor shall give preference to Filipino citizens in all types of mining
employment within the country insofar as such citizens are qualified to
perform the corresponding work with reasonable efficiency and without
BIA | Environmental Law | 131
hazard to the safety of the operations. The contractor, however, shall not Section 65
be hindered from hiring employees of his own selection, subject to the Mine Supervision
provisions of Commonwealth Act No. 613, as amended, for technical and
specialized work which, in his judgment and with the approval of the All mining and quarrying operations that employ more than fifty (50)
Director, requires highly-specialized training or long experience in workers shall have at least one (1) licensed mining engineer with at least
exploration, development or utilization of mineral resources: Provided, That five (5) years of experience in mining operations, and one (1) registered
in no case shall each employment exceed five (5) years or the payback foreman.
period as represented in original project study, whichever is longer:
Provided, further, That each foreigner employed as mine manager, vice- Section 66
president for operations or in an equivalent managerial position in charge of Mine Inspection
mining, milling, quarrying or drilling operation shall:
The regional director shall have exclusive jurisdiction over the safety
a. Present evidence of his qualification and work experience; or inspection of all installations, surface or underground, in mining operations
at reasonable hours of the day or night and as much as possible in a
b. Shall pass the appropriate government licensure examination; or manner that will not impede or obstruct work in progress of a contractor or
permittee.
c. In special cases, may be permitted to work by the Director for a
period not exceeding one (1) year: Provided, however, That if Section 67
reciprocal privileges are extended to Filipino nationals in the country Power to Issue Orders
of domicile, the Director may grant waivers or exemptions.
The mines regional director shall, in consultation with the Environmental
Management Bureau, forthwith or within such time as specified in his order,
CHAPTER XI require the contractor to remedy any practice connected with mining or
SAFETY AND ENVIRONMENTAL PROTECTION quarrying operations, which is not in accordance with safety and anti-
pollution laws and regulations. In case of imminent danger to life or
Section 63 property, the mines regional director may summarily suspend the mining or
Mines Safety and Environmental Protection quarrying operations until the danger is removed, or appropriate measures
are taken by the contractor or permittee.
All contractors and permittees shall strictly comply with all the mines safety
rules and regulations as may be promulgated by the Secretary concerning Section 68
the safe and sanitary upkeep of the mining operations and achieve waste- Report of Accidents
free and efficient mine development. Personnel of the Department involved
in the implementation of mines safety, health and environmental rules and In case of any incident or accident, causing or creating the danger of loss of
regulations shall be covered under Republic Act No. 7305. life or serious physical injuries, the person in charge of operations shall
immediately report the same to the regional office where the operations are
Section 64 situated. Failure to report the same without justifiable reason shall be a
Mine Labor cause for the imposition of administrative sanctions prescribed in the rules
and regulations implementing this Act.
No person under sixteen (16) years of age shall be employed in any phase
of mining operations and no person under eighteen (18) years of age shall Section 69
be employed underground in a mine. Environmental Protection

BIA | Environmental Law | 132


Every contractor shall undertake an environmental protection and CHAPTER XII
enhancement program covering the period of the mineral agreement or AUXILIARY MINING RIGHTS
permit. Such environmental program shall be incorporated in the work
program which the contractor or permittee shall submit as an accompanying Section 72
document to the application for a mineral agreement or permit. The work Timber Rights
program shall include not only plans relative to mining operations but also
to rehabilitation, regeneration, revegetation and reforestation of mineralized Any provision of law to the contrary notwithstanding, a contractor may be
areas, slope stabilization of mined-out and tailings covered areas, granted a right to cut trees or timber within his mining area as may be
aquaculture, watershed development and water conservation; and necessary for his mining operations subject to forestry laws, rules and
socioeconomic development. regulations: Provided, That if the land covered by the mining area is already
covered by existing timber concessions, the volume of timber needed and
Section 70 the manner of cutting and removal thereof shall be determined by the
Environmental Impact Assessment (EIA) mines regional director, upon consultation with the contractor, the timber
concessionaire/permittee and the Forest Management Bureau of the
Except during the exploration period of a mineral agreement or financial or Department: Provided, further, That in case of disagreement between the
technical assistance agreement or an exploration permit, an environmental contractor and the timber concessionaire, the matter shall be submitted to
clearance certificate shall be required based on an environmental impact the Secretary whose decision shall be final. The contractor shall perform
assessment and procedures under the Philippine Environmental Impact reforestation work within his mining area in accordance with forestry laws,
Assessment System including Sections 26 and 27 of the Local Government rules and regulations.
Code of 1991 which require national government agencies to maintain
ecological balance, and prior consultation with the local government units, Section 73
non-governmental and people's organizations and other concerned sectors Water Rights
of the community: Provided, That a completed ecological profile of the
proposed mining area shall also constitute part of the environmental impact A contractor shall have water rights for mining operations upon approval of
assessment. People's organizations and non-governmental organizations application with the appropriate government agency in accordance with
shall be allowed and encouraged to participate in ensuring that existing water laws, rules and regulations promulgated thereunder:
contractors/permittees shall observe all the requirements of environmental Provided, That water rights already granted or vested through long use,
protection. recognized and acknowledged by local customs, laws, and decisions of
courts shall not thereby be impaired: Provided, further, That the
Section 71 Government reserves the right to regulate water rights and the reasonable
Rehabilitation and equitable distribution of water supply so as to prevent the monopoly of
the use thereof.
Contractors and permittees shall technically and biologically rehabilitate the
excavated, mined-out, tailings covered and disturbed areas to the condition Section 74
of environmental safety, as may be provided in the implementing rules and Right to Possess Explosives
regulations of this Act. A mine rehabilitation fund shall be created, based on
the contractor's approved work program, and shall be deposited as a trust A contractor/exploration permittee shall have the right to possess and use
fund in a government depository bank and used for physical and social explosives within his contract/permit area as may be necessary for his
rehabilitation of areas and communities affected by mining activities and for mining operations upon approval of application with the appropriate
research on the social, technical and preventive aspects of rehabilitation. government agency in accordance with existing laws, rules and regulations
Failure to fulfill the above obligation shall mean immediate suspension or promulgated thereunder: Provided, That the Government reserves the right
closure of the mining activities of the contractor/permittee concerned. to regulate and control the explosive accessories to ensure safe mining
operations.
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Section 75 much as practicable, said members shall come from the different bureaus of
Easement Rights the Department in the region. The presiding officer thereof shall be selected
by the drawing of lots. His tenure as presiding officer shall be on a yearly
When mining areas are so situated that for purposes of more convenient basis. The members of the panel shall perform their duties and obligations
mining operations it is necessary to build, construct or install on the mining in hearing and deciding cases until their designation is withdrawn or
areas or lands owned, occupied or leased by other persons, such revoked by the Secretary. Within thirty (30) working days, after the
infrastructure as roads, railroads, mills, waste dump sites, tailings ponds, submission of the case by the parties for decision, the panel shall have
warehouses, staging or storage areas and port facilities, tramways, exclusive and original jurisdiction to hear and decide on the following:
runways, airports, electric transmission, telephone or telegraph lines, dams
and their normal flood and catchment areas, sites for water wells, ditches, a. Disputes involving rights to mining areas;
canals, new river beds, pipelines, flumes, cuts, shafts, tunnels, or mills, the
contractor, upon payment of just compensation, shall be entitled to enter b. Disputes involving mineral agreements or permits;
and occupy said mining areas or lands.
c. Disputes involving surface owners, occupants and
Section 76 claimholders/concessionaires; and
Entry into Private Lands and Concession Areas
d. Disputes pending before the Bureau and the Department at the
Subject to prior notification, holders of mining rights shall not be prevented date of the effectivity of this Act.
from entry into private lands and concession areas by surface owners,
occupants, or concessionaires when conducting mining operations therein: Section 78
Provided, That any damage done to the property of the surface owner, Appellate Jurisdiction
occupant, or concessionaire as a consequence of such operations shall be
properly compensated as may be provided for in the implementing rules and
The decision or order of the panel of arbitrators may be appealed by the
regulations: Provided, further, That to guarantee such compensation, the
party not satisfied thereto to the Mines Adjudication Board within fifteen
person authorized to conduct mining operation shall, prior thereto, post a
(15) days from receipt thereof which must decide the case within thirty (30)
bond with the regional director based on the type of properties, the
days from submission thereof for decision.
prevailing prices in and around the area where the mining operations are to
be conducted, with surety or sureties satisfactory to the regional director.
Section 79
Mines Adjudication Board
CHAPTER XIII
SETTLEMENT OF CONFLICTS The Mines Adjudication Board shall be composed of three (3) members. The
Secretary shall be the chairman with the Director of the Mines and
Geosciences Bureau and the Undersecretary for Operations of the
Section 77
Department as members thereof. The Board shall have the following powers
Panel of Arbitrators
and functions:

There shall be a panel of arbitrators in the regional office of the Department


a. To promulgate rules and regulations governing the hearing and
composed of three (3) members, two (2) of whom must be members of the
disposition of cases before it, as well as those pertaining to its
Philippine Bar in good standing and one a licensed mining engineer or a
internal functions, and such rules and regulations as may be
professional in a related field, and duly designated by the Secretary as
necessary to carry out its functions;
recommended by the Mines and Geosciences Bureau Director. Those
designated as members of the panel shall serve as such in addition to their
work in the Department without receiving any additional compensation As
BIA | Environmental Law | 134
b. To administer oaths, summon the parties to a controversy, issue A petition for review by certiorari and question of law may be filed by the
subpoenas requiring the attendance and testimony of witnesses or aggrieved party with the Supreme Court within thirty (30) days from receipt
the production of such books, papers, contracts, records, statement of the order or decision of the Board.
of accounts, agreements, and other documents as may be material
to a just determination of the matter under investigation, and to
testify in any investigation or hearing conducted in pursuance of CHAPTER XIV
this Act; GOVERNMENT SHARE

c. To conduct hearings on all matters within its jurisdiction, proceed Section 80


to hear and determine the disputes in the absence of any party Government Share in Mineral Production Sharing Agreement
thereto who has been summoned or served with notice to appear,
conduct its proceedings or any part thereof in public or in private, The total government share in a mineral production sharing agreement shall
adjourn its hearings at any time and place, refer technical matters be the excise tax on mineral products as provided in Republic Act No. 7729,
or accounts to an expert and to accept his report as evidence after amending Section 151(a) of the National Internal Revenue Code, as
hearing of the parties upon due notice, direct parties to be joined in amended.
or excluded from the proceedings, correct, amend, or waive any
error, defect or irregularity, whether in substance or in form, give all
Section 81
such directions as it may deem necessary or expedient in the
Government Share in Other Mineral Agreements
determination of the dispute before it, and dismiss the mining
dispute as part thereof, where it is trivial or where further
proceedings by the Board are not necessary or desirable: The share of the Government in co-production and joint-venture
agreements shall be negotiated by the Government and the contractor
taking into consideration the:
1. To hold any person in contempt, directly or indirectly,
and impose appropriate penalties therefor; and
a. capital investment of the project;
2. To enjoin any or all acts involving or arising from any
case pending before it which, if not restrained forthwith, b. risks involved;
may cause grave or irreparable damage to any of the
parties to the case or seriously affect social and economic c. contribution of the project to the economy; and
stability.
d. other factors that will provide for a fair and equitable sharing
In any proceeding before the Board, the rules of evidence prevailing in between the Government and the contractor.
courts of law or equity shall not be controlling and it is the spirit and
intention of this Act that shall govern. The Board shall use every and all The Government shall also be entitled to compensations for its other
reasonable means to ascertain the facts in each case speedily and contributions which shall be agreed upon by the parties, and shall consist,
objectively and without regard to technicalities of law or procedure, all in among other things, the contractor's income tax, excise tax, special
the interest of due process. In any proceeding before the Board, the parties allowance, withholding tax due from the contractor's foreign stockholders
may be represented by legal counsel. The findings of fact of the Board shall arising from dividend or interest payments to the said foreign stockholders,
be conclusive and binding on the parties and its decision or order shall be in case of a foreign national, and all such other taxes, duties and fees as
final and executory. provided for under existing laws.

The Government share in financial or technical assistance agreement shall


consist of, among other things, the contractor's corporate income tax,
BIA | Environmental Law | 135
excise tax, special allowance, withholding tax due from the contractor's A semi-annual fee to be known as mine wastes and tailings fee is hereby
foreign stockholders arising from dividend or interest payments to the said imposed on all operating mining companies in accordance with the
foreign stockholder in case of a foreign national and all such other taxes, implementing rules and regulations. The mine wastes and tailings fee shall
duties and fees as provided for under existing laws. accrue to a reserve fund to be used exclusively for payment for damages to:

The collection of Government share in financial or technical assistance a. Lives and personal safety;
agreement shall commence after the financial or technical assistance
agreement contractor has fully recovered its pre-operating expenses, b. Lands, agricultural crops and forest products, marine life and
exploration, and development expenditures, inclusive. aquatic resources, cultural resources; and

Section 82 c. Infrastructure and the revegetation and rehabilitation of silted


Allocation of Government Share farm lands and other areas devoted to agriculture and fishing
caused by mining pollution.
The Government share as referred to in the preceding sections shall be
shared and allocated in accordance with Sections 290 and 292 of Republic This is in addition to the suspension or closure of the activities of the
Act No. 7160 otherwise known as the Local Government Code of 1991. In contractor at any time and the penal sanctions imposed upon the same.
case the development and utilization of mineral resources is undertaken by
a government-owned or -controlled corporation, the sharing and allocation The Secretary is authorized to increase mine wastes and tailings fees, when
shall be in accordance with Sections 291 and 292 of the said Code. public interest so requires, upon the recommendation of the Director.

Section 86
CHAPTER XV Occupation Fees
TAXES AND FEES
There shall be collected from any holder of a mineral agreement, financial
Section 83 or technical assistance agreement or exploration permit on public or private
Income Taxes lands, an annual occupation fee in accordance with the following schedule:

After the lapse of the income tax holiday as provided for in the Omnibus a. For exploration permit - Five pesos (P5.00) per hectare or
Investments Code, the contractor shall be liable to pay income tax as fraction thereof per annum;
provided in the National Internal Revenue Code, as amended.
b. For mineral agreements and financial or technical assistance
Section 84 agreements - Fifty pesos (P50.00) per hectare or fraction thereof
Excise Tax on Mineral Products per annum; and

The contractor shall be liable to pay the excise tax on mineral products as c. For mineral reservation - One hundred pesos (P100.00) per
provided for under Section 151 of the National Internal Revenue Code: hectare or fraction thereof per annum.
Provided, however, That with respect to a mineral production sharing
agreement, the excise tax on mineral products shall be the government
The Secretary is authorized to increase the occupation fees provided herein
share under said agreement.
when the public interest so requires, upon recommendation of the Bureau
Director.
Section 85
Mine Wastes and Tailings Fees
BIA | Environmental Law | 136
Section 87 fiscal incentives granted under the said Code for the duration of the permits
Manner of Payment of Fees or extensions thereof: Provided, further, That mining activities shall always
be included in the investment priorities plan.
The fees shall be paid on the date the mining agreement is registered with
the appropriate office and on the same date every year thereafter. It shall Section 91
be paid to the treasurer of the municipality or city where the onshore Incentives for Pollution Control Devices
mining areas are located, or to the Director in case of offshore mining
areas. For this purpose, the appropriate officer shall submit to the treasurer Pollution control devices acquired, constructed or installed by contractors
of the municipality or city where the onshore mining area is located, a shall not be considered as improvements on the land or building where they
complete list of all onshore mining rights registered with his office, are placed, and shall not be subject to real property and other taxes or
indicating therein the names of the holders, area in hectares, location, and assessments: Provided, however, That payment of mine wastes and tailings
date registered. If the fee is not paid on the date specified, it shall be fees is not exempted.
increased by twenty-five per centum (25%).
Section 92
Section 88 Income Tax-Carry Forward of Losses
Allocation of Occupation Fees
A net operating loss without the benefit of incentives incurred in any of the
Thirty per centum (30%) of all occupational fees collected from holders of first ten (10) years of operations may be carried over as a deduction from
mining rights in onshore mining areas shall accrue to the province and taxable income for the next five (5) years immediately following the year of
seventy per centum (70%) to the municipality in which the onshore mining such loss. The entire amount of the loss shall be carried over to the first of
areas are located. In a chartered city, the full amount shall accrue to the the five (5) taxable years following the loss, and any portion of such loss
city concerned. which exceeds the taxable income of such first year shall be deducted in like
manner from the taxable income of the next remaining four (4) years.
Section 89
Filing Fees and Other Charges Section 93
Income Tax-Accelerated Depreciation
The Secretary is authorized to charge reasonable filing fees and other
charges as he may prescribe in accordance with the implementing rules and Fixed assets may be depreciated as follows:
regulations.
a. To the extent of not more than twice as fast as the normal rate
of depreciation or depreciated at normal rate of depreciation if the
CHAPTER XVI expected life is ten (10) years or less; or
INCENTIVES
b. Depreciated over any number of years between five (5) years
Section 90 and the expected life if the latter is more than ten (10) years, and
Incentives the depreciation thereon allowed as deduction from taxable income:
Provided, That the contractor notifies the Bureau of Internal
The contractors in mineral agreements, and financial or technical assistance Revenue at the beginning of the depreciation period which
agreements shall be entitled to the applicable fiscal and non-fiscal incentives depreciation rate allowed by this section will be used.
as provided for under Executive Order No. 226, otherwise known as the
Omnibus Investments Code of 1987. Provided, That holders of exploration In computing for taxable income, unless otherwise provided in this Act, the
permits may register with the Board of Investments and be entitled to the contractor may, at his option, deduct exploration and development
BIA | Environmental Law | 137
expenditures accumulated at cost as of the date of the prospecting or investments or loans, or of the property of the enterprise except for
exploration and development expenditures paid or incurred during the public use or in the interest of national welfare or defense and upon
taxable year: Provided, That the total amount deductible for exploration and payment of just compensation. In such cases, foreign investors or
development expenditures shall not exceed twenty-five per centum (25%) enterprises shall have the right to remit sums received as
of the net income from mining operations. The actual exploration and compensation for the expropriated property in the currency in which
development expenditures minus the twenty-five per centum (25%) net the investment was originally made and at the exchange rate
income from mining shall be carried forward to the succeeding years until prevailing at the time of remittance.
fully deducted.
e. Requisition of investment. The right to be free from requisition of
Net income from mining operation is defined as gross income from the property represented by the investment or of the property of
operations less allowable deductions which are necessary or related to the enterprises except in case of war or national emergency and
mining operations. Allowable deductions shall include mining, milling and only for the duration thereof. Just compensation shall be
marketing expenses, depreciation of properties directly used in the mining determined and paid either at the time or immediately after
operations. This paragraph shall not apply to expenditures for the cessation of the state of war or national emergency. Payments
acquisition or improvement of property of a character which is subject to received as compensation for the requisitioned property may be
the allowances for depreciation. remitted in the currency in which the investments were originally
made and at the exchange rate prevailing at the time of remittance.
Section 94
Investment Guarantees f. Confidentiality. Any confidential information supplied by the
contractor pursuant to this Act and its implementing rules and
The contractor shall be entitled to the basic rights and guarantees provided regulations shall be treated as such by the Department and the
in the Constitution and such other rights recognized by the government as Government, and during the term of the project to which it relates.
enumerated hereunder:

a. Repatriation of investments. The right to repatriate the entire CHAPTER XVII


proceeds of the liquidation of the foreign investment in the currency GROUND FOR CANCELLATION, REVOCATION, AND TERMINATION
in which the investment was originally made and at the exchange
rate prevailing at the time of repatriation. Section 95
Late or Non-filing of Requirements
b. Remittance of earnings. The right to remit earnings from the
investment in the currency in which the foreign investment was Failure of the permittee or contractor to comply with any of the
originally made and at the exchange rate prevailing at the time of requirements provided in this Act or in its implementing rules and
remittance. regulations, without a valid reason, shall be sufficient ground for the
suspension of any permit or agreement provided under this Act.
c. Foreign loans and contracts. The right to remit at the exchange
rate prevailing at the time of remittance such sums as may be Section 96
necessary to meet the payments of interest and principal on foreign Violation of the Terms and Conditions of Permits or Agreements
loans and foreign obligations arising from financial or technical
assistance contracts. Violation of the terms and conditions of the permits or agreements shall be
a sufficient ground for cancellation of the same.
d. Freedom from expropriation. The right to be free from
expropriation by the Government of the property represented by

BIA | Environmental Law | 138


Section 97 Section 101
Non-Payment of Taxes and Fees False Statements

Failure to pay the taxes and fees due the Government for two (2) Any person who knowingly presents any false application, declaration, or
consecutive years shall cause the cancellation of the exploration permit, evidence to the Government or publishes or causes to be published any
mineral agreement, financial or technical assistance agreement and other prospectus or other information containing any false statement relating to
agreements and the re-opening of the area subject thereof to new mines, mining operations or mineral agreements, financial or technical
applicants. assistance agreements and permits shall, upon conviction, be penalized by a
fine of not exceeding Ten thousand pesos (P10,000.00).
Section 98
Suspension or Cancellation of Tar Incentives and Credits Section 102
Illegal Exploration
Failure to abide by the terms and conditions of tax incentive and credits
shall cause the suspension or cancellation of said incentives and credits. Any person undertaking exploration work without the necessary exploration
permit shall, upon conviction, be penalized by a fine of not exceeding Fifty
Section 99 thousand pesos (P50,000.00).
Falsehood or Omission of Facts in the Statement
Section 103
All statements made in the exploration permit, mining agreement and Theft of Minerals
financial or technical assistance agreement shall be considered as conditions
and essential parts thereof and any falsehood in said statements or Any person extracting minerals and disposing the same without a mining
omission of facts therein which may alter, change or affect substantially the agreement, lease, permit, license, or steals minerals or ores or the products
facts set forth in said statements may cause the revocation and termination thereof from mines or mills or processing plants shall, upon conviction, be
of the exploration permit, mining agreement and financial or technical imprisoned from six (6) months to six (6) years or pay a fine from Ten
assistance agreement. 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 for the minerals removed,
CHAPTER XVIII extracted, and disposed of. In the case of associations, partnerships, or
ORGANIZATIONAL AND INSTITUTIONAL ARRANGEMENTS corporations, the president and each of the directors thereof shall be
responsible for the acts committed by such association, corporation, or
Section 100 partnership.
From Staff Bureau to Line Bureau
Section 104
The Mines and Geosciences Bureau is hereby transformed into a line bureau Destruction of Mining Structures
consistent with Section 9 of this Act: Provided, That under the Mines and
Geosciences Bureau shall be the necessary mines regional, district and other Any person who willfully destroys or damages structures in or on the mining
pertinent offices - the number and specific functions of which shall be area or on the mill sites shall, upon conviction, be imprisoned for a period
provided in the implementing rules and regulations of this Act. not to exceed five (5) years and shall, in addition, pay compensation for the
damages which may have been caused thereby.

CHAPTER XIX Section 105


PENAL PROVISIONS Mines Arson
BIA | Environmental Law | 139
Any person who willfully sets fire to any mineral stockpile, mine or workings, provisions of this Act and of the regulations promulgated hereunder shall be
fittings or a mine, shall be guilty of arson and shall be punished, upon punished upon conviction, by the appropriate court, by a fine not exceeding
conviction, by the appropriate court in accordance with the provisions of the Five thousand pesos (P5,000.00) or by imprisonment not exceeding one (1)
Revised Penal Code and shall, in addition, pay compensation for the year, or both, at the discretion of the court.
damages caused hereby.
Section 110
Section 106 Other Violations
Willful Damage to a Mine
Any other violation of this Act and its implementing rules and regulations
Any person who willfully damages a mine, unlawfully causes water to run shall constitute an offense punishable with a fine not exceeding Five
into a mine, or obstructs any shaft or passage to a mine, or renders useless, thousand pesos (P5,000.00).
damages or destroys any machine, appliance, apparatus, rope, chain,
tackle, or any other things used in a mine, shall be punished, upon Section 111
conviction, by the appropriate court, by imprisonment not exceeding a Fines
period of five (5) years and shall, in addition, pay compensation for the
damages caused thereby. The Secretary is authorized to charge fines for late or non-submission of
reports in accordance with the implementing rules and regulations of this
Section 107 Act.
Illegal Obstruction to Permittees or Contractors

Any person who, without justifiable cause, prevents or obstructs the holder CHAPTER XX
of any permit, agreement or lease from undertaking his mining operations TRANSITORY AND MISCELLANEOUS PROVISIONS
shall be punished, upon conviction by the appropriate court, by a fine not
exceeding Five thousand pesos (P5,000.00) or imprisonment not exceeding Section 112
one (1) year, or both, at the discretion of the court. Non-Impairment of Existing Mining/Quarrying Rights

Section 108 All valid and existing mining lease contracts, permits/licenses, leases
Violation of the Terms and Conditions of the Environmental pending renewal, mineral production-sharing agreements granted under
Compliance Certificate Executive Order No. 279, at the date of effectivity of this Act, shall remain
valid, shall not be impaired, and shall be recognized by the Government:
Any person who willfully violates or grossly neglects to abide by the terms Provided, That the provisions of Chapter XIV on government share in
and conditions of the environmental compliance certificate issued to said mineral production-sharing agreement and of Chapter XVI on incentives of
person and which causes environmental damage through pollution shall this Act shall immediately govern and apply to a mining lessee or contractor
suffer the penalty of imprisonment of six (6) months to six (6) years or a unless the mining lessee or contractor indicates his intention to the
fine of Fifty thousand pesos (P50,000.00) to Two hundred thousand pesos secretary, in writing, not to avail of said provisions: Provided, further, That
(P200,000.00), or both, at the discretion of the court. no renewal of mining lease contracts shall be made after the expiration of
its term: Provided, finally, That such leases, production-sharing agreements,
Section 109 financial or technical assistance agreements shall comply with the applicable
Illegal Obstruction to Government Officials provisions of this Act and its implementing rules and regulations.

Any person who illegally prevents or obstructs the Secretary, the Director or
any of their representatives in the performance of their duties under the
BIA | Environmental Law | 140
Section 113
Recognition of Valid and Existing Mining Claims and Lease/Quarry G.R. No. 98332 January 16, 1995
Applications MINERS ASSOCIATION OF THE PHIL. vs. FULGENCIO S.
FACTORAN, JR., ET AL.
Holders of valid and existing mining claims, lease/quarry applications shall
be given preferential rights to enter into any mode of mineral agreement EN BANC
with the government within two (2) years from the promulgation of the [G.R. No. 98332. January 16, 1995.]
rules and regulations implementing this Act.
MINERS ASSOCIATION OF THE PHILIPPINES, INC., petitioner, vs. HON.
Section 114 FULGENCIO S. FACTORAN, JR., Secretary of Environment and Natural
Separability Clause Resources, and JOEL D. MUYCO, Director of Mines and Geosciences Bureau,
respondents.
If any of the provision of this Act is held or declared to be unconstitutional
or invalid by a competent court, the other provisions hereof shall continue DECISION
to be in force as if the provision so annulled or voided had never been
incorporated in this Act. ROMERO, J p:
The instant petition seeks a ruling from this Court on the validity of two
Administrative Orders issued by the Secretary of the Department of
Section 115
Environment and Natural Resources to carry out the provisions of certain
Repealing and Amending Clause
Executive Orders promulgated by the President in the lawful exercise of
legislative powers.
All laws, executive orders, presidential decrees, rules and regulations or
parts thereof which are inconsistent with any of the provisions of this Act Herein controversy was precipitated by the change introduced by Article XII,
are hereby repealed or amended accordingly. Section 2 of the 1987 Constitution on the system of exploration,
development and utilization of the country's natural resources. No longer is
Section 116 the utilization of inalienable lands of public domain through "license,
Effectivity Clause concession or lease" under the 1935 and 1973 Constitutions 1 allowed
under the 1987 Constitution.cdasia
This Act shall take effect thirty (30) days following its complete publication
in two (2) newspapers of general circulation in the Philippines. The adoption of the concept of jura regalia 2 that all natural resources are
owned by the State embodied in the 1935, 1973 and 1987 Constitutions, as
well as the recognition of the importance of the country’s natural resources,
not only for national economic development, but also for its security and
national defense, 3 ushered in the adoption of the constitutional policy of
"full control and supervision by the State" in the exploration, development
and utilization of the country's natural resources. The options open to the
State are through direct 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, development
and utilization.

Article XII, Section 2 of the 1987 Constitution provides:

BIA | Environmental Law | 141


"Sec. 2. All lands of the public domain, waters, minerals, coal, petroleum, of mining operations and activities and to hasten the development of
and other mineral oils, all forces of potential energy, fisheries, forests or mineral resources. The pertinent provisions read as follows:
timber, wildlife, flora and fauna, and other natural resources are owned by "SECTION 1. Existing mining permits, licenses, leases and other mining
the State. With the exception of agricultural lands, all other natural grants issued by the Department of Environment and Natural Resources and
resources shall not be alienated. The exploration, development, and Bureau of Mines and Geo-Sciences, including existing operating agreements
utilization of natural resources shall be under the full control and supervision and mining service contracts, shall continue and remain in full force and
of the State. The State may directly undertake such activities, or it may effect, subject to the same terms and conditions as originally granted
enter into co-production, joint venture, or product-sharing agreements with and/or approved.
Filipino citizens, or corporations or associations at least sixty per centum of "SECTION 2. Applications for the exploration, development and utilization
whose capital is owned by such citizens. Such agreements may be for a of mineral resources, including renewal applications and applications for
period not exceeding twenty-five years, renewable for not more than approval of operating agreements and mining service contracts, shall be
twenty-five years, and under such terms and conditions as may be provided accepted and processed and may be approved; concomitantly thereto,
by law. In cases of water rights for irrigation, water supply, fisheries, or declarations of locations and all other kinds of mining applications shall be
industrial uses other than the development of water power, beneficial use accepted and registered by the Bureau of Mines and Geo-Sciences.
may be the measure and limit of the grant. prLL "SECTION 3. The processing, evaluation and approval of all mining
applications, declarations of locations, operating agreements and service
xxx xxx xxx contracts as provided for in Section 2 above, shall be governed by
The President may enter into agreements with foreign-owned corporations Presidential Decree No. 463, as amended, other existing mining laws and
involving either technical or financial assistance for large-scale exploration, their implementing rules and regulations: Provided, however, that the
development, and utilization of minerals, petroleum, and other mineral oils privileges granted, as well as the terms and conditions thereof shall be
according to the general terms and conditions provided by law, based on subject to any and all modifications or alterations which Congress may
real contributions to the economic growth and general welfare of the adopt pursuant to Section 2, Article XII of the 1987 Constitution." LibLex
country. In such agreements, the State shall promote the development and
use of local scientific and technical resources. On July 25, 1987, President Aquino likewise promulgated Executive Order
No. 279 authorizing the DENR Secretary to negotiate and conclude joint
The President shall notify the Congress of every contract entered into in venture, co-production, or production-sharing agreements for the
accordance with this provision, within thirty days from its execution." exploration, development and utilization of mineral resources, and
(Emphasis supplied) prescribing the guidelines for such agreements and those agreements
involving technical or financial assistance by foreign-owned corporations for
Pursuant to the mandate of the above-quoted provision, legislative acts 4 large-scale exploration, development, and utilization of minerals. The
were successively issued by the President in the exercise of her legislative pertinent provisions relevant to this petition are as follows:
power. 5 "SECTION 1. The Secretary of the Department of Environment and
Natural Resources (hereinafter referred to as "the Secretary") is hereby
To implement said legislative acts, the Secretary of the Department of authorized to negotiate and enter into, for and in behalf of the Government,
Environment and Natural Resources (DENR) in turn promulgated joint venture, co-production, or production-sharing agreements for the
Administrative Order Nos. 57 and 82, the validity and constitutionality of exploration, development, and utilization of mineral resources with any
which are being challenged in this petition.cdasia Filipino citizens, or corporation or association at least sixty percent (60%) of
whose capital is owned by Filipino citizens. Such joint venture, co-
On July 10, 1987, President Corazon C. Aquino, in the exercise of her then production, or production-sharing agreements may be for a period not
legislative powers under Article II, Section 1 of the Provisional Constitution exceeding twenty-five years, renewable for not more than twenty-five
and Article XIII, Section 6 of the 1987 Constitution, promulgated Executive years, and shall include the minimum terms and conditions prescribed in
Order No. 211 prescribing the interim procedures in the processing and Section 2 hereof. In the execution of a joint venture, co-production or
approval of applications for the exploration, development and utilization of production agreements, the contracting parties, including the Government,
minerals pursuant to the 1987 Constitution in order to ensure the continuity may consolidate two or more contiguous or geologically — related mining
BIA | Environmental Law | 142
claims or leases and consider them as one contract area for purposes of "ii. All holders of DOL acquired after the effectivity of DENR A.O. No.
determining the subject of the joint venture, co-production, or production- 57.
sharing agreement. "iii. Holders of mining leases or similar agreements which were granted
xxx xxx xxx after (the) effectivity of 1987 Constitution. LexLib
SECTION 6. The Secretary shall promulgate such supplementary rules "Failure to submit letters of intent and MPSA applications/proposals within
and regulations as may be necessary to effectively implement the provisions the prescribed period shall cause the abandonment of mining, quarry and
of this Executive Order. sand and gravel claims."
SECTION 7. All provisions of Presidential Decree No. 463, as amended,
other existing mining laws, and their implementing rules and regulations, or The issuance and the impeding implementation by the DENR of
parts thereof, which are not inconsistent with the provisions of this Administrative Order Nos. 57 and 82 after their respective effectivity dates
Executive Order, shall continue in force and effect." compelled the Miners Association of the Philippines, Inc. 8 to file the instant
petition assailing their validity and constitutionality before this Court.cdasia
Pursuant to Section 6 of Executive Order No. 279, the DENR Secretary
issued on June 23, 1989 DENR Administrative Order No. 57, series of 1989, In this petition for certiorari, petitioner Miners Association of the Philippines,
captioned "Guidelines of Mineral Production Sharing Agreement under Inc. mainly contends that respondent Secretary of DENR issued both
Executive Order No. 279." 6 Under the transitory provision of said DENR Administrative Order Nos. 57 and 82 in excess of his rule-making power
Administrative Order No. 57, embodied in its Article 9, all existing mining under Section 6 of Executive Order No. 279. On the assumption that the
leases or agreements which were granted after the effectivity of the 1987 questioned administrative orders do not conform with Executive Order Nos.
Constitution pursuant to Executive Order No. 211, except small scale mining 211 and 279, petitioner contends that both orders violate the non-
leases and those pertaining to sand and gravel and quarry resources impairment of contract provision under Article III, Section 10 of the 1987
covering an area of twenty (20) hectares or less, shall be converted into Constitution on the ground that Administrative Order No. 57 unduly pre-
production-sharing agreements within one (1) year from the effectivity of terminates existing mining leases and other mining agreements and
these guidelines.cdasia automatically converts them into production-sharing agreements within one
(1) year from its effectivity date. On the other hand, Administrative Order
On November 20, 1980, the Secretary of the DENR Administrative Order No. No. 82 declares that failure to submit Letters of Intent and Mineral
82, series of 1990, laying down the "Procedural Guidelines on the Award of Production-Sharing Agreements within two (2) years from the date of
Mineral Production Sharing Agreement (MPSA) through Negotiation." 7 effectivity of said guideline or on July 17, 1991 shall cause the
abandonment of their mining, quarry and sand gravel permits.
Section 3 of the aforementioned DENR Administrative Order No. 82
enumerates the persons or entities required to submit Letter of Intent On July 2, 1991, the Court, acting on petitioner's urgent ex-parte petition
(LOIs) and Mineral Production Sharing Agreement (MPSAs) within two (2) for issuance of a restraining order/preliminary injunction, issued a
years from the effectivity of DENR Administrative Order No. 57 or until July Temporary Restraining Order, upon posting of a P500,000.00 bond,
17, 1991. Failure to do so within the prescribed period shall cause the enjoining the enforcement and implementation of DENR Administrative
abandonment of mining, quarry and sand and gravel claims. Section 3 of Order Nos. 57 and 82, as amended, Series of 1989 and 1990, respectively.
DENR Administrative Order No. 82 provides: 9
"Sec. 3. Submission of Letter of Intent (LOIs) and MPSAs). The following On November 13, 1991, Continental Marble Corporation, 10 thru its
shall submit their LOIs and MPSAs within two (2) years from the effectivity President, Felipe A. David, sought to intervene 11 in this case alleging that
of DENR A.O. 57 or until July 17, 1991. because of the temporary order issued by the Court , the DENR, Regional
"i. Declaration of Location (DOL) holders, mining lease applicants, Office No. 3 in San Fernando, Pampanga refused to renew its Mines
exploration permitees, quarry applicants and other mining applicants whose Temporary Permit after it expired on July 31, 1991. Claiming that its rights
mining/quarry applications have not been perfected prior to the effectivity and interests are prejudicially affected by the implementation of DENR
of DENR Administrative Order No. 57. Administrative Order Nos. 57 and 82, it joined petitioner herein in seeking to
annul Administrative Order Nos. 57 and 82 and prayed that the DENR,

BIA | Environmental Law | 143


Regional Office No. 3 be ordered to issue a Mines Temporary Permit in its "Administrative regulations adopted under legislative authority by a
favor to enable it to operate during the pendency of the suit. particular department must be in harmony with the provisions of the law,
Public respondents were acquired to comment on the Continental Marble and should be for the sole purpose of carrying into effect its general
Corporation's petition for intervention in the resolution of November 28, provisions. By such regulations, of course, the law itself cannot be extended
1991. 12 (U.S. v. Tupasi Molina, supra). An administrative agency cannot amend an
act of Congress (Santos vs. Estenzo, 109 Phil. 419, 422; Teoxon vs.
Now to the main petition. It its argued that Administrative Order Nos. 57 Members of the Board of Administrators, L-25619, June 30, 1970, 33 SCRA
and 82 have the effect of repealing or abrogating existing mining laws 13 585; Manuel vs. General Auditing Office, L-28952, December 29, 1971, 42
which are not inconsistent with the provisions of Executive Order No. 279. SCRA 660; Deluao v. Casteel, L-21906, August 29, 1969, 29 SCRA 350).
Invoking Section 7 of said Executive Order No. 279, 14 petitioner maintains Cdpr
that respondent DENR Secretary cannot provide guidelines such as "The rule-making power must be confined to details for regulating the mode
Administrative Order Nos. 57 and 82 which are inconsistent with the or proceeding to carry into effect the law as it has been enacted. The power
provisions of Executive Order No. 279 because both Executive Order Nos. cannot be extended to amending or expanding the statutory requirements
211 and 279 merely reiterated the acceptance and registration of or to embrace matters not covered by the statute. Rules that subvert the
declarations of location and all other kinds of mining applications by the statute cannot be sanctioned (University of Santo Tomas v. Board of Tax
Bureau of Mines and Geo-Sciences under the provisions of Presidential Appeals, 93 Phil. 376, 382, citing 12 C.J. 845-46. As to invalid regulations,
Decree No. 463, as amended, until Congress opts to modify or alter the see Collector of Internal Revenue v. Villaflor, 69 Phil. 319; Wise & Co. v.
same. Meer, 78 Phil. 655, 676; Del Mar v. Phil. Veterans Administration, L-27299,
In other words, petitioner would have us rule that DENR Administrative June 27, 1973, 51 SCRA 340, 349). llcd
Order Nos. 57 and 82 issued by the DENR Secretary in the exercise of his xxx xxx xxx
rule-making power are tainted with invalidity inasmuch as both contravene ". . . The rule or regulations should be within the scope of the statutory
or subvert the provisions of Executive Order Nos. 211 and 279 or embrace authority granted by the legislature to the administrative agency (Davis,
matters not covered, nor intended to be covered, by the aforesaid Administrative Law, p. 194, 197, cited in Victorias Milling Co., Inc. v. Social
laws.cdasia Security Commission, 114 Phil. 555, 558).
"In case of discrepancy between the basic law and a rule or regulation
We disagree. issued to implement said law, the basic law prevails because said rule or
regulations cannot go beyond the terms and provisions of the basic law
We reiterate the principle that the power of administrative officials to (People v. Lim, 108 Phil. 1091)."
promulgate rules and regulations in the implementation of a statute is Considering that administrative rules draw life from the statute which they
necessarily limited only to carrying into effect what is provided in the seek to implement, it is obvious that the spring cannot rise higher than its
legislative enactment. The principle was enunciated as early as 1908 in the source. We now examine petitioner’s argument that DENR Administrative
case of United States v. Barrias. 15 The scope of the exercise of such rule- Order Nos. 57 and 82 contravene Executive Order Nos. 211 and 279 as both
making power was clearly expressed in the case of United States v. Tupasi operate to repeal or abrogate Presidential Decree No. 463, as amended, and
Molina, 16 decided in 1914, thus: "Of course, the regulations adopted under other mining laws allegedly acknowledged as the principal law under
legislative authority by a particular department must be in harmony with the Executive Order Nos. 211 and 279.
provisions of the law, and for the sole purpose of carrying into effect its
general provisions. By such regulations,