LAW ON NATURAL RESOURCES

1. COVERAGE OF THE SUBJECT

 Our laws on the subject are characterized with a marked tendency

towards the NATIONALIZATION AND CONSERVATION of our lands and
other natural resources.
 Our Constitution gives emphasis on the INJUNCTION set forth in its
preamble to conserve and develop our patrimony
 Art. XIV declaring state ownership of such natural resources and
providing for the manner by which they may be disposed of.

Pertinent Laws:

1. The Public Land Act ( Commonwealth Act No. 141, as amended)

2. The Mining Act (Commonwealth Act No 137, as amended and as further
amended by RA 7942, the Philippine Mining Act of 1995)
3. The Petroleum Act of 1949 ( RA No. 387 as amended)
4. The Coal Land Act and PD No. 972
5. The Forest Law ( Revised Administrative Code of 1917;Commonwealth
Act No. 452; PD Nos. 389 and 705, the latter being the Forest Reform
Code
6. The Water Code of the Philippines ( PD No. 1067)
7. The Fisheries Act ( Act No. 4003 as amended) and PD Nos. 43 and 704

NATURAL RESOURCES: CONCEPT AND DISPOSITION

NATURAL RESOURCES refer to material objects of economic value and utility

to man produced by nature. They constitute the patrimony of the nation.
 The 1987 Constitution enumerates our natural resources, as well as
thosethat can be alienated. It also provides for the CONTROL by the State over
their EXPLORATION, DEVELOPMENT AND UTILIZATION and the MANNER by
which they may be utilized, explored and developed. Thus Art XII, Sec 2 of
the 1987 Constitution provides:

“All lands of the public domain, waters, minerals, coal, petroleum, and
other mineral oils, all forces of potential energy, fisheries, forests or timber,
wildlife, flora and fauna, and other natural resources are owned by the state.
With the exception of agricultural lands, all natural resources shall not be
alienated. The exploration, development and utilization of natural
resources shall be under the FULL CONTROL and SUPERVISION of the
State. The State may DIRECTLY undertake such activities, OR may enter into
co-production, joint venture, or production sharing agreements with Filipino
citizens or corporations, associations at least sixty per centum of whose capital
is owned by such citizens. Such agreement may be for a period NOT
EXCEEDING TWENTY FIVE years, renewable for NOT MORE THAN TWENTY
FIVE years, and such terms and conditions as may be provided by law. In
cases of water rights for irrigation, water supply, fisheries, or industrial uses
other than the development of water power, beneficial use may be the measure
and limit of the grant.”

 The State shall protect the nation’s marine wealth in its archipelagic
waters, territorial sea, and exclusive economic zone, and reserve its use
and enjoyment exclusively to Filipino citizens.
 The Congress may, by law allow small-scale utilization of natural
resources by Filipino citizens, as well as cooperative fish farming, with
priority to subsistence fishermen and fishworkers in rivers, lakes, bays
and lagoons.
  The President may enter into agreement with foreign owned
corporations involving either technical or financial assistance for
LARGE-SCALE exploration, development, or utilization of minerals,
petroleum, and other mineral oils according to the general terms
and conditions provided by law, based on real contributions to the
economic growth and general welfare of the country.
 In such agreement the State shall promote the development and use of
local scientific and technical resources.
 The President shall notify the Congress of every contract entered into in
accordance with this provision, within thirty days from its execution.
IMPORTANCE OF NATURAL RESOURCES
 In the Philippines we look upon our natural resources as our exclusive
heritage and we are called upon to preserve them for ourselves and our
posterity.
 Preamble: establishment of a government that shall conserve and
develop our patrimony
 Alien ownership of land and other natural resources would tend to result
in international complications: gradual extension of foreign influence into
our politics would increase the possibility of foreign control, posing
danger to our internal security and independence
 Delegate Enrique J.C. Montilla during the 1935 Constitutional
convention expressed his view on such question of national import, to
wit:
“Lands and natural resourcesare immovable and as such can be
compared to the vital organs of a person’s body, the lack of possession of
which may cause instant death or the shortening of life. If we do not
nationalize these two of our most important belongings, I am afraid that
the time will come when we shall be sorry for the time we were born.
Our independence willjust be a mockery, for what kind of independence
are we going to have if a part of our country is not in our hands but in
 those of foreigners?”.(Aruego, The Framing of the Philippine Constitution,
Vol.2,p.592)

State assumed a more dynamic role in the exploration, development and

utilization of natural resources under the Constitution
With the effectivity of the 1987 Constitution, the provisions of the law
dealing on license, concessions and license of mineral resources under PD 463,
as amended have been repealed. It is now through DIRECT act of the State or it
may enter into co-production, joint venture, or production sharing agreement,
or it may enter into agreement with foreign-owned corporations involving
technicalor financial assistance for large scale exploration, development and
utilization of minerals, petroleum, and other mineral oils according to the
general terms and conditions provided by law, based on real contributions to
the economic growth and general welfare of the country, ( Art XII, Sec 2, 1987
Constitution: Miners Association of the Philippines, Inc. vs. Factoran, Jr.et al
240 SCRA 100, Jan.16, 1995)
 On July 25, 1987, Pres. Corazon Aquino issued an E.O. No. 279
authorizing the DENR Secretary to negotiate and conclude joint
venture, co-production, or production sharing agreements for the
exploration, development and utilization of mineral resources, and
prescribing the guidelines for such agreements involving technical or
financial assistance by foreign-owned corporations for large scale
exploration, development and utilization of minerals.
 The Supreme Court said that the DENR Secretary has the power to issue
Administrative Orders to accomplish the purposes of the law under
which they were issued and were intended to secure the paramount
interest of the public, their economic growth and welfare.

Lands of Public Domain

 The term “public domain” is synonymous to “public dominion” or “public
ownership”, as distinguished from private ownership. Under the 1987
Constitution there is a classification of lands of the public domain, thus:

Lands of Public Domain

1. Agricultural
2. Forest or timber
3. Mineral lands
4. National parks
 Agricultural lands of public domainmay further classify according to the
USES to which they may be devoted. Alienable lands of public domain
may be limited to AGRICULTUAL LANDS.
 Private Corporationsor associationsmay not hold such alienable lands
of the public domain except by LEASE: not more than 1,000
hectares/not exceeding 25 years/renewable for not more than25
years
 Citizens of the Philippines may LEASE: 500 hectares or not acquire
more than 12 hectares thereof by purchase, homestead, or grant

 Agricultural land of thepublic domain may be further classified according

to their USE by the PRESIDENT.
 Other lands of public domain may be classified or reclassified from time
to time and will remain as such until it is releasedtherefrom or rendered
open to disposition or concession by the government in the manner
provided by law
 Alienable public land held openly, continuously and exclusively for the
prescribed period is converted to private property by mere lapse or
completion of said period ipso jure. ( Pineda vs. CA, 183 SCRA 602)
  Other lands of public domain cannot be acquired by prescription unless
they are first classified as agricultural lands and so released for
alienation.
 Classification of public lands is an EXCLUSIVE prerogative of the
Executive Department of the Government and not of the courts.

Public Agricultural Lands

Under the 1987 Constitution, the term agricultural lands are those
that are neither timber nor mineral lands.
 Act of Congress of July 1, 1902 and the first Public land Act No. 926
“those public lands acquired from Spain which are neither mineral nor
timber lands”.
Test: It is not necessarily whether it is actually devoted to agriculture or it is
susceptible to cultivation for agricultural purposes but because it is originally
agricultural and may again becomeso under other circumstances (Krivenko vs.
Register of Deeds of Manila, 79 Phil.461)

Public Forests
Forest –large tract of land covered with natural growth of trees andunder bush:
a large wood.
 It does NOT embrace land only partly woodland
 It is an organic whole in which all parts, although apparently
heterogeneous, jumbled together by accident as it were and apparently
unrelated, bear a close relation to each other and are interdependent as
any other beings and conditions in nature (Ramosvs. Dir. of Lands, 39
Phil.175)
  Where the area in question is aforest or timber land : certification made
by Bureau of Forest Development, approved by the President
 Prescription will not lie against the State. The right of reversion or
reconveyance to the State is not barred by prescription under
Commonwealth Act No. 141.

Mineral lands
Any land contains mineral for that matter. But it is necessary to show
that it is more valuable for mining purposes than for anything else.
 as such quantities as to justify expenditures in the effort to extract them
and which are more valuable for the minerals they contain than for
agricultural orother uses.

Presumption As to Nature of Particular Land

In case of doubt, it was rightly held that in the absence of evidence to the
contrary any land may be presumed to be AGRICULTURAL. ( Ackron vs.
Govt of the Phil, 40 Phil.10)
 Hence, when the claim of the citizen and the claim of the government
regarding the nature of a particular piece of land are in conflict, the
burden of proof lies to the government

Development of Natural resources is limited to Filipinos or Corporations

60 percentumof which is controlled by Filipinos

PUBLIC LANDS: ALIENABLE AND DISPOSABLE LANDS IN GENERAL

Meaning of “Public Lands”
 The term “public lands” refers to such lands of the public domain as
are subject to alienation and disposal of the State in accordance with the
Public Land Act.
 Acts of Congress of the United State – national domain under its
legislative power as has not yet been subjected to private right or devoted
to public use
 Decision of the Supreme Court of the United States, public lands is held
to be equivalent to public domain. It does not by any means include all
lands of government ownership, but only so much of said lands as are
thrown open to private appropriation and settlement by homestead and
other similar general laws.
Government Land vs. Public Lands
Government Land – more extensive and embraces not only the second but also
other lands of the government already reserved or devoted to public use or
subject to private right
 Friar Lands, to which the Government of the Philippines holds title, are
NOT public lands but they are of government ownership just the same as
its private or patrimonial property (Jacinto vs. Dir. of Lands, 49 SCRA
Phil. 853)
 Lands not belonging to anybody – public ownership under
RegalianDoctrine or under the Constitution of the Philippines, for the
simple reason that they have no known or recognized owner
 Where part of the public lands has been legally appropriated or acquired
by a private individual, the same they be deemed segregated from the
mass of the public lands and no law or proclamation therafter made or
issued relating to public lands shall operate upon it ( Central Capiz vs.
Ramirez, 40 Phil,883)
 Land registered asearly as 1901 by means of possessory information, the
land in question was OUTSIDE the field of public lands and its
ownership could not be affected by subsequent issuance of a free patent
 by the Director of Lands in favour of another person ( Garcia vs. Dinero,
80 Phil.474)

Officers Charged with the Administration of Public Lands

 Secretary of Natural Resources – chief executive officer charged to
carry out the provisions of the Public Land Act
 Director of Lands- under the immediate supervision of theDENR
Secretary
Duties:

a. Direct executive control over surveys, classifications, leases, sales and

other forms of concession or disposition and management of public
lands;
b. Preparation and issuance of forms, instructions, rules and regulations
as may be necessary and proper to carry into effect the provisions of
the Public Land Act, and for the conduct of proceedings arising
thereunder, subject to the approval of the Secretary( Commonwealth
Act No. 141, sections 3,4, and 5)
c. Quasi-judicial officer- he makes findings of fact and even passes upon
questions of mixed fact and law, and considers and decides the
qualifications of applicantsfor the purchase of public lands.

Note: The decision on the construction of the Public Land Act are entitled a
great respect by the courts. The decisions of the Director of Lands as to
question of facts are conclusive when approved by the Secretary (Doctrine of
Primary Jurisdiction)
d. He represent the state in a reversion proceedings and may file an
action for the cancellation of patent and title acquired through fraud
e. Regulate the occupation or provisional use of public lands
Note: For administration purposes, land districts have been established
throughout the Philippines, each district is headed by a local land officer
embracing one province

Reversion of land acquired through fraud

 The uncontroverted rule is that, the doctrine of indefeasibility of Torrens
Title does not bar the filing of an action for cancellation of title and
reversion of land even if more than one year has elapsed from the
issuance of the free patent in case of fraud in obtaining it. ( Rep. vs. CA,
et al. GR No. 104296, March 29, 1996)

Classification of Alienable and Disposable Lands

For the administration and disposition of alienable and disposable lands,
they are classified under the Public Land Law according to the use and
purposes to which such lands may be destined, as follows:
1. Agricultural ( farm land)
2. Residential, commercial, industrial, or for similar productive purposes;
3. Educational, charitable, or other similar purposes; and
4. Reservations for town sites and for public and quasi-public uses
 The President upon recommendation of the Secretary of DENR is
authorized to make the above classification as well as to transfer lands
from one class to another from time to time as circumstances may
warrant ( Com Act No. 141., Sec. 9)
 Under the Revised Administrative Code, alienable lands of the public
domain may be ordered reserved by the President for specific purpose or
service
 Old Constitution: they all form under the category of agricultural lands,
they not being forest nor mineral lands.
 Under Public Land Act term “agricultural” is used in a limited sense, and
is meant distinctly as a farmland.
Prerequisite for Disposition

 Before any public land may be alienated or disposed of, it is

indispensable that there be a formal declaration by the President
upon recommendation of the Secretary of DENR to the effect that
such lands are open to disposition or concession, and whenever
practicable the lands should have been previously surveyed.
 Alienation or disposition or concession as used in Public Land Act is
meant any of the methods authorized by the said law for the acquisition,
lease, use or benefit of the lands of the public domain other than timber
or mineral land.

Modes of Disposition
1. For homestead settlement
2. Sale
3. Lease
4. Confirmation of imperfect or incomplete title
5. Judicial legalization
6. Administrative legalization ( free patent)

Application for Grant of Public Land

All applications for public land grants or concessions are to be addressed
to the Director of Lands, made under oath, and must set forth, (see p.26)

Applicant Required to Work on the Land by Himself

 - Requirements of the Public Land Act, by PD No. 152 issued on March 13,
1973- that the applicant or his transferee must enter and work
upon, improve and cultivate the lands by HIMSELF within the periods
prescribed for the various modes of concession under the Public Land
Act
- Tenancy: a ground for the denial of application, cancellation of the grant
and forfeiture of improvements on the land in favor of the Government

Appeals from Decision of Director of Lands

Decision of the Director of Lands may be annulled or reviewed only in a
DIRECT PROCEEDING and not collaterally.
Remedies:
1. File a motion for reconsideration /motion for new trial
 If denied: appeal to the Secretary of DENR
2. Appeal the decision of the Director of Lands to the Secretary of Natural
Resources
3. Appeal to the President: within 30 days upon receipt of the decision of
the DENR Secretary and the decision of the President becomes final and
executory after the lapse of 15 days from the receipt of the copy thereof
by the parties involved unless an MR is timely filed based on grounds: 1.
Decision not inconformity with the applicable law or evidence presented
2. Newly discovered evidence Exhaustion of Administrative remedy or
4. File an action in court
Non-exhaustion of administrative remedies: there is an absence of a cause
of action
Note: The decision of the Director of Lands becomes final after the said period
unless a motion for reconsideration is filed or unless an appeal to the Secretary
is taken
The decision of the Secretary becomes final after 30 days from the date of
service thereof to the party in interest, on questions of facts.
The above rule on exhausting administrative remedies, does NOT apply to
1. private lands acquired by the government by purchase for resale to
individuals. ( Baladjay vs. Castrillo)
2. purely legal questions indicating urgency of judicial intervention

Time within which to Appeal Administrative Decision to Court

The law does NOT fix any period for the purpose of taking the matter to the
courts after final decision in the executive branch of the government: but it
should be within reasonable depends upon the circumstances of the case

Note: an appeal from a decision of the Secretary of DENR to the President, NOT
a condition sine qua non for the exhaustion of administrative remedies before
resorting to judicial review

Rule 43: Appeal: Quasi-Judicial Agencies to the CA