Professional Documents
Culture Documents
Definition of Natural Resources : Other The State shall protect the nation's marine wealth in
Websites its archipelagic waters, territorial sea, and exclusive
economic zone, and reserve its use and enjoyment
Natural resource is any naturally occurring exclusively to Filipino citizens.
substance or feature of the environment (physical or
biological) that, while not created by human effort, The Congress may, by law, allow small-scale
can be exploited by humans to satisfy their needs or utilization of natural resources by Filipino citizens, as
wants. Many of such resources are our life line such well as cooperative fish farming, with priority to
as water, air and solar radiation, which are essential subsistence fishermen and fish- workers in rivers,
elements for the existence of all the flora and fauna. lakes, bays, and lagoons.
SEPARATE OPINION (Justice Puno) Act No. 926 was superseded by the Act
2874, the second Public Land Act, passed
I. The Development of the Regalian Doctrine under the Jones Law. it limited the
in the Philippine Legal System exploitation of agricultural lands to Filipinos
and Americans and citizens of other
countries which gave the Filipinos the same pueblos where church would be constructed. All
privileges. the new Christian converts were required to
construct their house around the church. All
It was amended by Commonwealth Act No. lands lost by the old barangays in the process of
141which remains the present Public Land pueblo organization and all lands not assigned to
Law. the pueblos were declared to be lands of the
Crown., and the natives were stripped of their
ancestral rights to the lands.
Grants of public land were brought under
the operation of the Torrens System under
Act 496 which placed all public and private The American government classified the Filipinos
lands in the Philippines under the Torrens into two: Christian Filipinos and non-Christian
system, requiring that the government issue Filipinos, not to religious belief, but to
an official certificate of title attesting to the geographical area, the latter referring to natives
fact that the person named is the owner of of the Philippines of a low grade of civilization,
the property described. usually living in tribal relationship. The
Americans pursued a policy of assimilation. They
passed Act No. 253 creating the bureau of Non-
D. The Philippine Constitutions Christian Tribes to determine the most
practicable means for bring about their
advancement.
The Regalian Doctrine was enshrined in the
1935, 1973 and 1987 Constitutions which
basically states that all lands of the public The 1935 Constitution did not carry any policy
domain as well as natural resources, on the non-Christian Filipinos. It was in the 1973
whether on public or private land, belong to Constitution that the State recognized the
the State. It is this concept of state customs and interest of national cultural
ownership that petitioners claim is being communities in the formulation of state policies.
violated by the IPRA.
In 1974, President Marcos promulgated PD 410
or the Ancestral Lands Decree, providing for the
issuance of land occupancy certificates to
II. The Indigenous Peoples Rights Act members of the national cultural communities.
The IPRA recognizes the existence of the The Aquino government shifted from the policy
indigenous cultural communities or indigenous of integration to one of preservation. She
peoples as a distinct sector. It grants these created the Office of Muslim Affairs, Office of
people the ownership and possession of their Northern Cultural Communities and the Office for
ancestral domains and ancestral lands, and Southern Cultural Communities all under the OP.
defines the extent of these lands and domains.
Within their ancestral domains and lands the The 1987 Constitution expressly guaranteed the
ICCs/IPs are given the right to self-governance rights of tribal Filipinos to their ancestral domain
and right to preserve their culture. To carry out and ancestral lands.
the policies of the ACT, the law created the
National Commission on Indigenous Peoples
(NCIP) III. THE PROVISIONS OF THE IPRA DO NOT
CONTRAVENE THE CONSTITUTION
A. Indigenous Peoples
A. Ancestral Domains and Ancestral Lands
Indigenous Cultural Communities or Indigenous are the Private Property of the Indigenous
Peoples (ICCs/ IPs) refer to a group of people Peoples and do not constitute Part of the
who have continuously lived as an organized Land of Public Domain
community on communally bounded and defined
territory. These groups of peoples have actually
Ancestral domains are all areas belonging to
occupied, possessed and utilized their territories
ICCs/IPs held under a claim of ownership,
under claim of ownership since time
occupied or possessed by ICCs/IPs since time
immemorial.
immemorial, continuously until the present
except when interrupted by war or force
Their unit of government is the barangay. In a majeure. It comprises of lands, inland waters,
baranganic society, the chiefs administered the coastal areas, and natural resources therein and
lands in the name of the barangay, there was no includes ancestral lands, forests, pastures,
private property in land. When Islam was hunting grounds, burial grounds, and bodies of
introduced in the country in the archipelago of water, mineral and other natural resources.
Maguindanao, the Sultanate of Sulu claimed
jurisdiction over territorial areas.
Ancestral lands are lands held by the ICCs/ IPs
under the same conditions as ancestral domains
When Spaniards settled in the Philippines, except that these are limited to lands, not
Spanish missionaries were ordered to establish merely occupied and possessed but are also
utilized, including residential lots, rice terraces, Justice Puno: Carino case firmly established a
or paddies, private forests. concept of private land title that existed irrespective
of any royal grant from the State and was based on
The delineation of ancestral domains and lands the strong mandate extended to the Islands via the
is conferred on the NCIP who shall issue a Philippine Bill of 1902. The IPRA recognizes the
Certificate of Ancestral Domain (CADT) upon existence of ICCs/IPs as a distinct sector in the
finding that the application is meritorious, in the society. It grants this people the ownership and
name of the community. Ancestral Lands outside possession of their ancestral domains and ancestral
the ancestral domain, the NCIP issues a lands and defines the extent of these lands and
Certificate of Land Title (CALT). The CALTs and domains
CADTs shall be registered in the Register of
Deeds in the place where property is situated. 2. Chavez vs. Public Estates Authority
(2002)1
B. Carino vs. Insular Government Facts:
• The Phil gov’t (through the Commissioner of
On June 23, 1903, Mateo Cariňo went to the Court of Public Highways) signed a contract with the
Land Registration to petition his inscription as the CDCP (Construction and Development
owner of a 146 hectare land he’s been possessing in Corporation of the Philippines) to reclaim
the then municipality of Baguio. Mateo only certain foreshore and offshore areas of
presented possessory information and no other Manila Bay and for the construction of the
documentation. The State opposed the petition Manila-Cavite Coastal Road.
averring that the land is part of the US military • Pres. Marcos issued P.D. 1084 creating PEA
reservation. The CLR ruled in favor of Mateo. The (Public Estates Authority) and transferred to
State appealed. Mateo lost. Mateo averred that a it the ‘lands’ reclaimed in Manila Bay for the
grant should be given to him by reason of Manila-Cavite Road and Reclamation Project
immemorial use and occupation. (MCCRRP).
• Thereafter, Pres. Aquino issued Special
The US SC ruled in favor of Carino and ordered the Patent No. 3517, granting and transferring
registration of the subject lands in his name. The to PEA “the parcels of land so reclaimed
court laid down the presumption of a certain title under the MCCRRP”. A TCT was also issued
held as far back as memory went and under a claim in the name of PEA covering 3 reclaimed
of private ownership. Land held by this title is islands known as the "Freedom Islands"
presumed to never have been public land. The (157.84 hectares) located at the southern
registration requirement was not to “confer title, but portion of the Manila-Cavite Coastal Road,
simply to establish it”. In a Parañaque City, which were part of these
nutshell, Cariño enunciated the legal presumption lands acquired by PEA.
that ancestral lands and domains were not part of • PEA entered into a Joint Venture Agreement
the public domain, having maintained their character (JVA) with AMARI (AMARI Coastal Bay and
as private lands of the indigenous peoples since time Development Corporation), a private
immemorial corporation, to develop the Freedom
Islands.
o However, the JVA also required the
Why Carino doctrine is unique?
reclamation of an additional 250
Carino is the only case that specifically recognizes
hectares of submerged areas
native title. Carino was cited by succeeding cases to
surrounding these islands to
support the concept of acquisitive prescription under
complete the configuration in the
the Public Land Act
Master Development Plan of the
Southern Reclamation Project-
MCCRRP.
Other Separate Opinions: o PEA and AMARI entered into the
JVA through negotiation without
Justice Kapunan public bidding.
Regalian theory doesn’t negate the native title to • On June 8, 1995, then President Fidel V.
lands held in private ownership since time Ramos, through then Executive Secretary
immemorial, adverting to the landmark case of Ruben Torres, approved the JVA.
CARINO V. LOCAL GOVERNMENT, where the US SC • On November 29, 1996, then Senate
through Holmes held: “xxx the land has been held by President Maceda delivered a privilege
individuals under a claim of private ownership, it will speech denouncing the JVA as the
be presumed to have been held in the same way "grandmother of all scams."
from before the Spanish conquest, and never to have • Thus the Senate Committees investigated
been public land.” Existence of native titie to land, or on the matter and concluded (1) the
ownership of land by Filipinos by virtue of possession reclaimed lands PEA seeks to transfer to
under a claim of ownership since time immemorial AMARI under the JVA are lands of the public
and independent of any grant from the Spanish domain which the government has not
crown as an exception to the theory of jure regalia
1
Two subsequent motions for reconsideration was
filed and were denied.
classified as alienable lands and therefore 1. The 157.84 hectares of reclaimed lands
PEA cannot alienate these lands; (2) the comprising the Freedom Islands, now
certificates of title covering the Freedom covered by certificates of title in the name
Islands are thus void, and (3) the JVA itself is of PEA, are alienable lands of the public
illegal. domain. PEA may lease these lands to
• Petitioner Frank Chavez, as a taxpayer, filed private corporations but may not sell or
the instant Petition for Mandamus with transfer ownership of these lands to private
Prayer for Issuance of a Writ of Preliminary corporations. PEA may only sell these lands
Injunction and TRO. to Philippine citizens, subject to the
• March 30, 1999, PEA and AMARI signed an ownership limitations in the 1987
Amended Joint Agreement, which was Constitution and existing laws.
approved by Pres. Estrada.
2. The 592.15 hectares of submerged areas
Note: of Manila Bay remain inalienable natural
The Amended Joint Venture Agreement: The resources of the public domain until
subject matter of the Amended JVA, as stated in its classified as alienable or disposable lands
second Whereas clause, consists of three properties, open to disposition and declared no longer
namely: needed for public service. The government
can make such classification and declaration
1. "[T]hree partially reclaimed and only after PEA has reclaimed these
substantially eroded islands along Emilio submerged areas. Only then can these lands
Aguinaldo Boulevard in Paranaque and Las qualify as agricultural lands of the public
Pinas, Metro Manila, with a combined titled domain, which are the only natural
area of 1,578,441 square meters;" resources the government can alienate. In
their present state, the 592.15 hectares of
submerged areas are inalienable and
2. "[A]nother area of 2,421,559 square outside the commerce of man.
meters contiguous to the three islands;" and
Public forest lands or forest reserves, unless Therefore, the issue of whether or not
declassified and released by positive act of the Naguiat and her predecessor-in-interest have been in
Government so that they may form part of the open, exclusive and continuous possession of the
disposable agricultural lands of the public domain, parcels of land in question is now of little moment.
are not capable of private appropriation. As to these For, unclassified land, as here, cannot be acquired by
assets, the rules on confirmation of imperfect title do adverse occupation or possession; occupation
not apply. thereof in the concept of owner, however long,
cannot ripen into private ownership and be
Forests, in the context of both the Public registered as title.
Land Act and the Constitution classifying lands of the
public domain into "agricultural, forest or timber,
mineral lands and national parks," do not necessarily
refer to a large tract of wooded land or an expanse
covered by dense growth of trees and underbrush. Sustainable Development
As we stated in Heirs of Amunategui:
Sustainable Development is development that meets
the needs of the present without compromising the
“A forested area classified as forest land of the public ability of future generations to meet their own needs
domain does not lose such classification simply (Brundtland Report). It is a pattern of resource use
because loggers or settlers have stripped it of its that aims to meet human needs while preserving
forest cover. Parcels of land classified as forest land the environment so that these needs can be met not
may actually be covered with grass or planted to only in the present, but also for generations to come.
crops by kaingin cultivators or other farmers. "Forest
lands" do not have to be on mountains or in out of
the way places. xxx. The classification is merely It contains within it two key concepts:
descriptive of its legal nature or status and does not the concept of 'needs', in particular the
have to be descriptive of what the land actually looks essential needs of the world's poor, to which
like. xxx” overriding priority should be given; and
the idea of limitations imposed by the state
Under Section 2, Article XII of the of technology and social organization on the
Constitution, which embodies the Regalian doctrine, environment's ability to meet present and future
all lands of the public domain belong to the State – needs
the source of any asserted right to ownership of land.
All lands not appearing to be clearly of private The Brundtland Report’s targets were multilateralism
dominion presumptively belong to the State. and interdependence of nations in the search for
Accordingly, public lands not shown to have been a sustainable development path. The report sought
reclassified or released as alienable agricultural land to recapture the spirit of the United Nations
or alienated to a private person by the State remain Conference on the Human Environment - the
part of the inalienable public domain. Under Section 6 Stockholm Conference - which had introduced
of the Public Land Act, the prerogative of classifying environmental concerns to the formal political
or reclassifying lands of the public domain, i.e., from development sphere. Our Common Future placed
forest or mineral to agricultural and vice versa, environmental issues firmly on the political agenda;
belongs to the Executive Branch of the government it aimed to discuss the environment
and not the court. Needless to stress, the onus to and development as one single issue.
overturn, by incontrovertible evidence, the
presumption that the land subject of an application
The publication of Our Common Future and the work autonomy claim of local governments in the area
of the World Commission on Environment and (Laguna Lake Development Authority vs. CA)
Development laid the groundwork for the convening
of the 1992 Earth Summit and the adoption While the right to a balanced and healthful ecology is
of Agenda 21, the Rio Declaration and to the to be found under the Declaration of Principles and
establishment of the Commission on Sustainable State Policies and not under the Bill of Rights, it does
Development. not follow that it is less important than any of the
In addition, key contributions of Our Common civil and political rights enumerated in the latter. As
Future to the concept of sustainable development a matter of fact, these basic rights need not even be
include the recognition that the many crises facing written in the Constitution for they are assumed to
the planet are interlocking crises that are elements exist from the inception of humankind. The right to a
of a single crisis of the whole and of the vital need for balanced and healthful ecology carries with it the
the active participation of all sectors of society in correlative duty to refrain from impairing the
consultation and decisions relating to sustainable environment.
development.
Section 16 is unusual among those found in Article II
Sustainable development ensures the well-being of in that, whereas almost all the other provisions in the
the human person by integrating social development, Article are not self-executing but need implementing
economic development, and environmental legislation to make them effective, Section 16 has
conservation and protection. It refers to the been recognized by the Supreme Court as self-
"interdependent and mutually reinforcing pillars of executing like the provisions in the Bill of Rights.
sustainable development as economic development,
social development, and environmental protection.
As the goal of sustainable development is to
permanently improve the living conditions of human AGENDA 21
beings, social and economic developments must be
carried out in a way that is environmentally and Commission [formally the World Commission
ecologically sound; ensuring the continual on Environment and Development (WCED)]:
rejuvenation and availability of natural resources for
future generations. It was known by the name of its Chair Gro Harlem
Brundtland (former Norwegian Prime Minister), and
was convened by the United Nations in 1983. The
commission was created to address growing concern
Seven Dimensions of Sustainable
"about the accelerating deterioration of the human
Development : From the Philippine Agenda 21
environment and natural resources and the
consequences of that deterioration
From the Philippine perspective sustainable for economic and social development." In
development is a multidimensional concept, establishing the commission, the UN General
involving no less than seven dimensions. Sustainable Assembly recognized that environmental problems
development is viewed as the mutually beneficial were global in nature and determined that it was in
interaction between the legitimate interests of the common interest of all nations to establish
business and the economy, government and the policies for sustainable development.
polity, and civil society and culture.
From this perspective, five dimensions of sustainable
development are clearly visible. These are—the
Agenda 21: an action plan of the United
human being, culture, polity, economy, and Nature.
Nations (UN) related to sustainable development and
was an outcome of the United Nations Conference on
Environment and Development (UNCED) held in Rio
Article II, Sec. 16 of 1987 Constitution de Janeiro, Brazil, in 1992. It is a comprehensive
blueprint of action to be taken globally, nationally
The State shall protect and advance the right and locally by organizations of the UN, governments,
of the people to a balanced and healthful and major groups in every area in which humans
ecology in accord with the rhythm and directly affect the environment.
harmony of nature.
Development of Agenda 21: The full text of
Agenda 21 was revealed at the United Nations
Does Sec. 16 provide for enforceable rights? Conference on Environment and Development (Earth
Summit), held in Rio de Janeiro on June 13, 1992,
Yes. The provision, as worded, recognizes an where 178 governments voted to adopt the program.
enforceable “right”. Hence, appeal to it has been The final text was the result of drafting, consultation
recognized as conferring “standing” on minors to and negotiation, beginning in 1989 and culminating
challenge logging policies of the government (Oposa at the two-week conference. The number 21 refers to
vs. Factoran). On this basis too, the Supreme Court an agenda for the 21st century. It may also refer to
upheld the empowerment of the Laguna Lake the number on the UN's agenda at this particular
Development Authority to protect the inhabitants of summit.
the Laguna Lake Area from the deleterious effects of
pollutants coming from garbage dumping and the Rio+5: In 1997, the General Assembly of the UN
discharge of wastes in the area as against the local held a special session to appraise five years of
progress on the implementation of Agenda 21 (Rio
+5). The Assembly recognized progress as 'uneven' advocates establishing the groundwork of an
and identified key trends including undertaking by cities and local governments for
increasing globalization, widening inequalities in cultural development.
income and a continued deterioration of the global
environment. A new General Assembly Resolution (S-
19/2) promised further action.
The Commission shall be the sole policy-making body (o) Director-General of the National Security
of the government which shall be tasked to Council;
coordinate, monitor and evaluate the programs and
action plans of the government relating to climate
(p) Chairperson of the National Commission
change pursuant to the provisions of this Act.
on the Role of Filipino Women;
The Commission shall set the qualifications and (a) Assessment of the national impact of
compensation for the technical experts. It shall climate change;
provide resources for the operations and activities of
the Panel.
(b) The identification of the most vulnerable
communities/areas, including ecosystems to
Section 11. Framework Strategy and Program on the impacts of climate change, variability
Climate Change. – The Commission shall, within six and extremes;
(6) months from the effectivity of this Act, formulate
a Framework Strategy on Climate Change. The
(c) The identification of differential impacts
Framework shall serve as the basis for a program for
of climate change on men, women and
climate change planning, research and development,
children;
extension, and monitoring of activities to protect
vulnerable communities from the adverse effects of
climate change. (d) The assessment and management of risk
and vulnerability;
The Framework shall be formulated based on climate
change vulnerabilities, specific adaptation needs, (e) The identification of GHG mitigation
and mitigation potential, and in accordance with the potentials; and
international agreements.
(f) The identification of options, prioritization
The Framework shall be reviewed every three (3) of appropriate adaptation measures for joint
years, or as may be deemed necessary. projects of national and local governments.
Section 12. Components of the Framework Strategy Section 14. Local Climate Change Action Plan. – The
and Program on Climate Change. – The Framework LGUs shall be the frontline agencies in the
shall include, but not limited to, the following formulation, planning and implementation of climate
components: change action plans in their respective areas,
consistent with the provisions of the Local
Government Code, the Framework, and the National
(a) National priorities;
Climate Change Action Plan.
2) The Council will have as members committed 6) To create sub-committees that it may deem fit in
environmentalists from the following owing the performance of its duties; and
departments of a position of Bureau Director of their,
duly deputized to represent their respective
7) To perform such other acts which are necessary to
Secretaries:
carry out its mandated functions and responsibilities.
b. Department of Environment and Natural 5. To review and monitor plans, policies, program
Resources; and legislation on sustainable development to
promote efficiency and timeliness of their execution
2. Civil society, composed of people’s organizations, and ensure consistency and coordination among the
non-government organizations and sectoral/major Legislative and Executive branches of government,
groups representation shall have five (5) Council local government units, civil society, business, labor
members selected by their community, based on and other concerned entities/sectors, and existing
their commitment to sustainable development multi-stakeholder governance mechanisms;
concerns, through a process designed by them These
may include the following groups: women, youth, 6. To establish a networking mechanism to link the
farmers, fisherfolk, indigenous people, Moro and Council with local and international organizations
Cordillera people, urban poor, persons with involved in sustainable development;
disabilities, academe, professionals, media, religious
groups and NGOs. 7. To create, reorganize or abolish committees of the
Council, ad-hoc or permanent, and to define their
3. Labor and business shall have one (1) structure, functions and limitations;
representative each in the Council. Representation
8. To submit its annual work program with actionable
and healthful ecology in accord with the rhythm and
and time bounded targets and regularly report to the
harmony of nature;
President the status of implementation and
achievement of specific targets thereof;
Whereas, the government adheres to the sustainable
9. To perform such other acts which are necessary to development principles embodied in the Rio
carry out its mandated functions and responsibilities. Declaration and adopted by the United Nations
Conference on Environment and Development in Rio
Sec. 5. Participation of Other Government Agencies de Janeiro, Brazil in 1992, and to which the Philippines
in the Council. — The Council can call upon other is a signatory;
government agencies and instrumentalities, civil
society, business and labor sector organizations to
Whereas, the Philippine Council for Sustainable
participate in Council business, including its
Development (PCSD), created by virtue of Executive
meetings, if so warranted by conditions as may exist
Order No. 15 (Series of 1992) is mandated to
from time to time. For this purpose, other
coordinate the formulation of Philippine Agenda 21;
government agencies shall identify a PCSD focal
officer not lower than a rank of Director who shall
coordinate their agency’s participation in PCSD Whereas, the Philippine Agenda 21 was formulated
concerns. after an extensive and intensive process of coordination,
cooperation, counterparting and consensus-building
Sec. 6. Secretariat. — The Council shall be assisted among the various stakeholders of society;
by a Coordinating Secretariat which shall be based at
the NEDA, the composition of which shall be
Whereas, the operationalization of the Philippine
determined by the Director-General, and a
Agenda 21 shall provide the overall direction and serve
Counterpart Secretariat, the composition of which
as an enabling environment in achieving sustainable
shall be determined by the Civil Society Counterpart
development;
Council for Sustainable Development (CSCCSD).
Sec. 7. Budget. — There shall be provided in the Section 1. Adoption and Operationalization of the
General Appropriations Act (GAA) a regular line item Philippine Agenda 21. The Philippine Agenda 21, as the
under the NEDA budget to cover the operational national action agenda for sustainable development, is
requirements of the Council subject to the prescribed hereby adopted.
budgetary guidelines. Other member-agencies of the
Council shall also include a line item in the GAA
Section 2. Overall Administration. The Philippine
under their respective agency budgets to cover the
Council for Sustainable Development shall oversee and
cost of their activities related to PCSD.
monitor the operationalization of the Philippine Agenda
21. In this regard, the Council shall provide the
coordinating and monitoring mechanisms for its
implementation. For this purpose, it shall mobilize
coordinating bodies including the Regional Development
Councils (RDCs) and the local councils for sustainable
development.
Decision:
All other laws, decrees, executive orders, rules and e. Effective regulatory review of the EIS depends
regulations inconsistent herewith are hereby largely on timely full; and accurate disclosure of
repealed, amended or modified accordingly. relevant: information by project proponents and,
other stakeholders in the EIA process
f. The social acceptability of a project is a result of
meaningful public participation, which shall be
assessed as part of the Environmental Compliance
Certificate (ECC) application, based on concerns
DENR Administrative Order No. 2003- 30
related to the project's environmental impacts;
SUBJECT: Implementing Rules and Regulations
(IRR) for the Philippine Environmental Impact
g. The timelines prescribed by this Order, within
Statement (EIS) System
which an Environmental - Compliance Certificate
must be issued, or denied, apply only to processes
Consistent with the continuing effort of the
and actions within the Environmental Management
Department of Environment and Natural Resources
Bureau's (EMB) control and do not include actions or
(DENR) to rationalize and streamline the
activities that are the responsibility of the proponent.
implementation of the Philippine Environmental
Impact Statement (EIS) System established under
Section 2. Objective
Presidential Decree (PD) No. 1586, Presidential
Proclamation No. 2146 defining the scope of the EIS
The objective of this Administrative Order is to
System and pursuant to Administrative Order No. 42
rationalize and streamline the EIS System to make it
issued by tile Office of the President on November 2,
more effective as a project planning and
2002, the following rules and regulations are hereby
management tool by:
promulgated;
a. Making the System more responsive to the
ARTICLE I
demands and needs of the project proponents and
BASIC POLICY, OPERATING PRINCIPLES, OBJECTIVES
the various stakeholders;
AND
DEFINITION OF TERMS
b. Clarifying the, coverage of the System and
updating it to take into consideration industrial and
Section 1. Basic Policy and Operating
technological innovations and trends
Principles
c. Standardizing requirements to ensure focus on
Consistent with the principles of sustainable
critical environment parameters;
development, it is the policy of the DENR to
implement a systems-oriented and integrated
d. Simplifying procedures for processing ECC
approach to the LIS system to ensure a rational
applications, and establishing measures to ensure
balance between socio-economic development and
adherence to ECC conditions by project proponents,
environmental protection for the benefit of present
and
and future generations.
e. Assuring that critical environmental concerns are
The following are the key operating principles in the
addressed during project development and
implementation of the Philippine EIS System:
implementation
a. The EIS System is concerned primarily with
Section 3. Definition of Terms
assessing the direct and indirect impacts of a project
on the biophysical and human environment and
ensuring that these impacts addressed by
For the purpose of this Order, the following
definitions shall be applied; i. Environmental Impact Assessment Consultant - a
professional or group of professionals commissioned
a. Certificate, of Non-Coverage - a certification issued by the proponent to prepare the EIS/IEE and other
by the EMB certifying that, based on the submitted related documents. In some cases, the person or
project description, the project is not covered by the group referred to may be the proponent's technical
EIS System and is not required to secure an ECC staff.
Category B. Projects that are not categorized as The EIS should contain at least the following:
ECPs, but which may cause negative environmental
impacts because they are located in Environmentally a. EIS Executive Summary;
Critical Areas (ECA's) b. Project Description;
c. Matrix of the scoping agreement identifying critical
Category C. Projects intended to directly enhance issues and concerns, as validated by EMB;
environmental quality or address existing d. Baseline environmental conditions focusing on the
environmental problems not falling under Category A sectors (and resources) most significantly affected by
or B. the proposed action;
e. Impact assessment focused on significant
Category D. Projects unlikely to cause adverse environmental impacts (in relation to project
environmental impacts. construction/commissioning, operation and
decommissioning), taking into account cumulative
4.4 Proponents of co-located or single projects that impacts;
fall under Category A and B are required to secure f. Environmental Risk Assessment if determined by
ECC. For co-located projects, the proponent has the EMB as necessary during scoping;
option to secure a Programmatic ECC. For ecozones, g. Environmental Management Program/Plan;
ECC application may be programmatic based on h. Supporting documents; including technical/socio-
submission of a programmatic EIS, or locator-specific economic data used/generated; certificate of zoning
based on submission of project EIS by each locator. viability and municipal land use plan; and proof of
consultation with stakeholders;
4.5 Projects under Category C are required submit i. Proposals for Environmental Monitoring and
Project Description. Guarantee Funds including justification of amount,
when required;
4.6 Projects classified under Category D may secure j. Accountability statement of EIA consultants and the
a CNC. The EMB-DENR, however, may require such, project proponent; and
projects or undertakings to provide additional k. Other clearances and documents that may be
environmental safeguards as it may deem necessary. determined and agreed upon during scoping.
,
5.2.2. Initial Environmental Examination (IEE)
4.7 Projects/undertakings introducing new Report
technologies or construction technique but which IEE Report is similar to an EIS, but with reduced
may cause significant negative environmental details of data and depth of assessment and
impacts shall be required to submit a Project discussion. It may be customized for different types
Description Which will be used as basis by EMB for of projects under Category B. The EMB shall
screening the project and coordinate with relevant government agencies and
determining its category. the private sector to customize and update IEE
Checklists to further streamline ECC processing, The PEIS shall contain the following:
especially for small and medium enterprises. a. Executive Summary;
b. Project Description;
5.2.3. Programmatic Environmental Impact c. Summary matrix of scoping agreements as
Statement (PEIS) validated by EMB;
d. [-co-profiling of air, land, water, and relevant
The PEIS shall contain the following: people aspects;
e. Environmental carrying capacity analysis;
a. Executive Summary; f. Environmental Risk Assessment (if found necessary
b. Project Description; during scoping);
c. Summary matrix of scoping agreements as g. Environmental Management Plan to include
validated by EMB; allocation scheme for discharge of pollutants; criteria
d. [-co-profiling of air, land, water, and relevant for acceptance of locators, environmental
people aspects; management guidebook for locators, and
e. Environmental carrying capacity analysis; environmental liability scheme;
f. Environmental Risk Assessment (if found necessary h. Duties of the Environmental Management Unit to
during scoping); be created;
g. Environmental Management Plan to include i. Proposals for Environmental Monitoring &
allocation scheme for discharge of pollutants; criteria Guarantee Funds and terms of reference for the
for acceptance of locators, environmental Multi-partite Monitoring Team, and
management guidebook for locators, and j. Other supporting documents and clearances that
environmental liability scheme; may be agreed during the
h. Duties of the Environmental Management Unit to scoping.
be created; 5.2.4. Programmatic Environmental
i. Proposals for Environmental Monitoring & Performance Report and Management Plan
Guarantee Funds and terms of reference for the (PEPRMP).
Multi-partite Monitoring Team, and
j. Other supporting documents and clearances that The PEPRMP shall contain the following:
may be agreed during the scoping. a. Project Description of the co-located projects;
b. Documentation of the actual environmental
5.2.4. Programmatic Environmental performance based on current/past environmental
Performance Report and Management Plan management measures implemented, and
(PEPRMP). c. An EMP based on the environmental management
system framework and standard set by EMB.
The PEPRMP shall contain the following:
5.2.5. Environmental Performance Report and
a. Project Description of the co-located projects; Management Plan (EPRMP)
b. Documentation of the actual environmental
performance based on current/past environmental The EPRMP shall contain the following:
management measures implemented, and
c. An EMP based on an environmental management a. Project Description;
system framework and standard set by EMB. b. Baseline conditions for critical environmental
parameters;
5.2.5. Environmental Performance Report and c. Documentation of the environmental performance
Management Plan based on the current/past environmental
management measures implemented;
The EPRMP shall contain the following: d. Detailed comparative, description of the proposed
a. Project Description; project expansion and/or process modification with
b. Baseline conditions for critical environmental corresponding material and energy balances in the
parameters; case of process industries,
c. Documentation of the environmental performance e. EMP based on an environmental management
based on the current/past environmental system framework and standard set by EMB.
management measures implemented;
d. Detailed comparative, description of the proposed 5.2.6. Project Description (PD)
project expansion and/or process modification with
corresponding material and energy balances in the The PD shall be guided by the definition of terms and
case of process industries, shall contain the following:
e. EMP based on an environmental management
system framework and standard set by EMB. a. Description of the project;
b. Location and area covered;
5.2.6. Project Description (PD) c. Capitalization and manpower requirement;
d. For process industries, a listing of raw materials to
The PD shall be guided by the definition of terms and be used, description of the process or manufacturing
shall contain the following: and update IEE Checklists technology, type and volume of products and
to further streamline ECC processing, especially for discharges:
small and medium enterprises. e. For Category C projects, a detailed description on
how environmental efficiency and overall
5.2.3. Programmatic Environmental Impact performance improvement will be attained, or how
Statement (PEIS)
an existing environmental problem will be effectively through the EIARC Chairman his or her reasons for
solved or mitigated by the project, and dissenting.
f. A detailed location map of the impacted site
showing relevant features (e.g. slope, topography, At a minimum the EIARC report should contain;
human settlements).
g. Timelines for construction and commissioning . a. Detailed assessment of the proposed mitigation
and enhancement measures for the identified
5.2.7. EMS-based EMP. environmental impacts and risks;
The EMS-based EMP is an option that proponents b. Description of residual or unavoidable
may undertake in lieu of the EPRMP for single environmental impacts despite proposed mitigation
projects applying for ECC under Category A-3 and B- measures;
3. c. Documentation of compliance with
technical/substantive review criteria;
5.3 Public Hearing 1 Consultation d. Key issues/concerns and the proponent's response
Requirements to these, including social acceptability measures;
For projects under Category A-1, the conduct of e. Assessment of the proposed EMP (including risk
public hearing as part of the EIS review is mandatory reduction/management plan) and amounts proposed
unless otherwise determined by EMB. For all other for the Environmental Guarantee Fund and the
undertakings, a public hearing is not mandatory Environmental Monitoring Fund, and
unless specifically required by EMB. f. Recommended decision regarding the ECC
application as well as proposed ECC conditions.
Proponents should initiate - public consultations early
in order to ensure that environmentally relevant 5.4.3. Decision Document
concerns of stakeholders are taken into consideration This is an official letter regarding the decision on the
in the EIA study and the formulation of the application. It may be in the form of an
management plan, All public consultations and public Environmental Compliance Certificate or a Denial
hearings conducted during the EIA process are to be Letter. The ECC shall contain the scope and
documented. The public hearing/ consultation limitations of the approved activities, as well as
Process report shall be validated by the EMB/EMB RD conditions to ensure compliance with the
and shall constitute part of the records of the EIA Environmental Management Plan. The ECC shall also
process. specify the setting up of an EMF and EGF, if
5.4 Documentation Requirements for DENR- applicable. No ECC shall be released until the
EMB and EIA Reviewers proponent has settled all liabilities, fines and other
obligations with DENR.
The EMB Central Office as well as the EMB Regional
Offices shall document the proceedings of the ECC A Denial Letter on the other hand shall specify the
application process and shall set up and maintain bases for the decision. The ECC or Denial Letter shall
relevant information management systems. The be issued directly to the project proponent or its duly
documentation shall, at a minimum, include the authorized representative, and receipt of the letter
following: shall be properly documented. The ECC of a project
not implemented within five years from its date of
5.4.1. Review Process Report issuance is deemed expired. The Proponent shall
This is to be prepared by the EMB Central or EMB RO. have to apply for a new ECC if it intends to pursue
It is to be forwarded to the DENR Secretary or RD as the project. The reckoning date of project
reference for decision-making and maintained as implementation is the date of ground breaking,
part of the records on the ECC application. The report based on the proponent's work plan as submitted to
should contain at least the following: the EMB.
9.3 Environmental Guarantee Fund Section 13. Creation of an HAM Division and
An Environmental Guarantee Fund (EGF) shall be Strengthening of Review and Monitoring
established for all co-located or single projects that Capability
have been determined by DENR to pose a significant In order to effectively implement the provisions of
public risk or where the project requires this administrative order, the current EIA ad hoc
rehabilitation or restoration. An EGF Committee shall division at the EMB Central Office and the EMB
be formed to manage the fund. It shall be composed Regional Offices that are primarily in-charge of
of representatives from the EMB Central Office, EMB processing ECC applications and post-ECC monitoring
Regional Office, affected communities, concerned shall be converted to a full-pledged Environmental
LGUs, and relevant government agencies identified Impact Assessment and Management Division
by EMB. (EIAMD). The Division shall have the following
structure and functions:
An integrated MOA on the MMT-EMF-EGF shall be
entered into among the EMB Central Office, EMB 13.1 The EIA Evaluation Section shall be in charge of
Regional Office, the proponent, and representatives screening projects for coverage under the EIS
of concerned stakeholders. System, EIS Scoping, and evaluation of EIS's and
IEE's submitted for ECC issuance. It shall have three
9.4 Abandonment units responsible, respectively, for screening for
For projects that shall no longer be pursued, the coverage, EIS Scoping, and evaluation of ECC
proponent should inform EMB to relieve the former applications. The EMB may commission independent
from the requirement for continued compliance with professionals, experts from the academe and
the ECC conditions. For projects that have already representatives from relevant government agencies
commenced implementation, an as members of the EIA Review Committee as may be
abandonment/decommissioning plan shall be deer 31d necessary. Further, continual improvement
submitted for approval by EMB at least six (6) of the technical capability of the Staff of the EIA
months before the planned Division shall be undertaken.
abandonment/decommissioning. The implementation
of the plan shall be verified by EMB. 13.2 The Impact Monitoring and Validation Section
shall be in charge of monitoring compliance to ECC
ARTICLE Ill conditions and implementation of the Environmental
STRENGTHENING THE IMPLEMENTATION OF Management Program (EMP): The unit shall also
THE PHILIPPINE EIS validate actual impacts as a basis for evaluating
SYSTEM environmental performance and effectiveness of the
EMP.
Section 10. Coordination with other
Government Agencies and other Organizations 13.3 In the EMB Central Office, there shall be a
Systems Planning and Management Section. It shall
The DENR-EMB shall conduct regular consultations ensure that a continually improving systems-oriented
with DTI and other pertinent government agencies, and integrated approach is followed in implementing
affected industry groups and other stakeholders on the Philippine EIS System vis-a-vis national
continually streamlining the processing of ECC development programs. The section shall have two
applications and post ECC implementation to fulfill units responsible for specific systems level concerns:
the policy and objectives of this administrative order. (1) Project Level Systems Planning and Management
Unit; and (2) Program and Policy Level Systems
The President shall be apprised of the issues raised Planning and Management Unit. This section shall
as well as the actions taken by DENR to address also be responsible for technical coordination with
these issues whenever necessary. the EIA Division in the different EMB Regional Offices.
Section 11. Information Systems Improvement The organizational structure of the EMB Central
The information system on the EIS System Office is in Annex 1.
implementation shall be improved for the effective
dissemination of information to the public. The ARTICLE 1V
MISCELLANEOUS PROVISIONS
Per AU 42, the new position items for the EIA Division
shall be created out of the existing budget and
vacant position items within the government service,
which shall be reclassified accordingly.
h. Right to Resolve Conflict.- Right to resolve land Sec. 12. Option to Secure Certificate of Title under
conflicts in accordance with customary laws of the Commonwealth Act 141, as amended, or the Land
area where the land is located, and only in default Registration Act 496.- Individual members of cultural
communities, with respect to individually-owned Sec. 17. Right to Determine and Decide Priorities for
ancestral lands who, by themselves or through their Development.- The ICCs/IPs shall have the right to
predecessors-in -interest, have been in continuous determine and decide their own priorities for
possession and occupation of the same in the development affecting their lives, beliefs,
concept of owner since the immemorial or for a institutions, spiritual well-being, and the lands they
period of not less than thirty (30) years immediately own, occupy or use. They shall participate in the
preceding the approval of this Act and uncontested formulation,implementation and evaluation of
by the members of the same ICCs/IPs shall have the policies, plans and programs for national, regional
option to secure title to their ancestral lands under and local development which may directly affect
the provisions of Commonwealth Act 141, as them.
amended, or the Land Registration Act 496.
Sec. 18. Tribal Barangays.- The ICCs/IPs living in
For this purpose, said individually-owned ancestral contiguous areas or communities where they form
lands, which are agricultural in character and the predominant population but which are located in
actually used for agricultural, residential, pasture, municipalities, provinces or cities where they do not
and tree farming purposes, including those with a constitute the majority of the population, may form
slope of eighteen percent (18%) or more, are hereby or constitute a separate barangay in accordance with
classified as alienable and disposable agricultural the Local Government Code on the creation of tribal
lands. barangays.
The option granted under this Section shall be Sec. 19. Role of Peoples Organizations.- The State
exercised within twenty (20) years from the approval shall recognize and respect the role of independent
of this Act. ICCs/IPs organizations to enable the ICCs/IPs to
pursue and protect their legitimate and collective
interests and aspirations through peaceful and lawful
CHAPTER IV
means.
RIGHT TO SELF-GOVERNANCE AND EMPOWERMENT
b. Deface, remove or otherwise destroy artifacts Sec. 40. Composition.- The NCIP shall be an
which are of great importance to the ICCs/IPs for the independent agency under the Office of the President
preservation of their cultural heritage. and shall be composed of seven (7) Commissioners
belonging to ICCs/IPs, one (1) of whom shall be the
Chairperson. The Commissioners shall be appointed
Sec. 34. Right to Indigenous Knowledge Systems and
by the President of the Philippines from a list of
Practices and to Develop own Sciences and
recommendees submitted by authentic ICCs/IPs:
Technologies.- ICCs/IPs are entitled to the recognition
Provided, That the seven (7) Commissioners shall be
of the full ownership and control and protection of
appointed specifically from each of the following
their cultural and intellectual rights. They shall have
ethnographic areas: Region I and the Cordilleras;
the right to special measures to control, develop and
Region II; the rest of Luzon; Island Groups including
protect their sciences, technologies and cultural
Mindoro, Palawan, Romblon, Panay and the rest of
manifestations, including human and other genetic
the Visayas; Northern and Western Mindanao;
resources, seeds, including derivatives of these
Southern and Eastern Mindanao; and Central
resources, traditional medicines and health practices,
Mindanao: Provided, That at least two (2) of the
vital medicinal plants, animals and minerals,
seven (7) Commissioners shall be women.
indigenous knowledge systems and practices,
knowledge of the properties of fauna and flora, oral
traditions, literature, designs, and visual and Sec. 41. Qualifications, Tenure, Compensation.- The
performing arts. Chairperson and the six (6) Commissioners must be
natural born Filipino citizens, bonafide members of government lending institutions and other lending
ICCs/IPs as certified by his/her tribe, experienced in institutions to finance its programs;
ethnic affairs and who have worked for at least ten
(10) years with an ICC/IP community and/or any
g) To negotiate for funds and to accept grants,
government agency involved in ICC/IP, at least 35
donations, gifts and/or properties in whatever form
years of age at the time of appointment, and must
and from whatever source, local and international,
be of proven honesty and integrity: Provided, That at
subject to the approval of the President of the
least two (2) of the seven (7) Commissioners shall be
Philippines, for the benefit of ICCs/IPs and administer
the members of the Philippine Bar: Provided, further,
the same in accordance with the terms thereof; or in
That the members of the NCIP shall hold office for a
the absence of any condition, in such manner
period of three (3) years, and may be subject to re-
consistent with the interest of ICCs/IPs as well as
appointment for another term: Provided,
existing laws;
furthermore, That no person shall serve for more
than two (2) terms. Appointment to any vacancy
shall only be for the unexpired term of the h) To coordinate development programs and projects
predecessor and in no case shall a member be for the advancement of the ICCs/IPs and to oversee
appointed or designated in a temporary or acting the proper implementation thereof;
capacity: Provided, finally, That the Chairperson and
the Commissioners shall be entitled to compensation
i) To convene periodic conventions or assemblies of
in accordance with the Salary Standardization Law.
IPs to review, assess as well as propose policies or
plans;
Sec. 42. Removal from Office.- Any member of the
NCIP may be removed from office by the President,
j) To advise the President of the Philippines on all
on his own initiative or upon recommendation by any
matters relating to the ICCs/IPs and to submit within
indigenous community, before the expiration of his
sixty (60) days after the close of each calendar year,
term for cause and after complying with due process
a report of its operations and achievements;
requirement of law.
c. Office of Education, Culture and Health - The Office g. Legal Affairs Office - There shall be a Legal Affairs
on Culture, Education and Health shall be responsible Office which shall advice the NCIP on all legal
for the effective implementation of the education, matters concerning ICCs/IPs and which shall be
cultural and related rights as provided in this Act. It responsible for providing ICCs/IPs with legal
shall assist, promote and support community assistance in litigation involving community interest.
schools, both formal and non-formal, for the benefit It shall conduct preliminary investigation on the basis
of the local indigenous community, especially in of complaints filed by the ICCs/IPs against a natural
areas where existing educational facilities are not or juridical person believed to have violated ICCs/IPs
accessible to members of the indigenous group. It rights. On the basis of its findings, it shall initiate the
shall administer all scholarship programs and other filing of appropriate legal or administrative action to
educational rights intended for ICC/IP beneficiaries in the NCIP.
coordination with the Department of Education,
Culture and Sports and the Commission on Higher
Sec. 47. Other Offices.- The NCIP shall have the
Education. It shall undertake, within the limits of
power to create additional offices as it may deem
available appropriation, a special program which
necessary subject to existing rules and regulations.
includes language and vocational training, public
health and family assistance program and related
subjects. Sec. 48. Regional and Field Offices.- Existing regional
and field offices shall remain to function under the
strengthened organizational structure of the NCIP.
It shall also identify ICCs/IPs with potential training in
Other field office shall be created wherever
the health profession and encourage and assist them
appropriate and the staffing pattern thereof shall be
to enroll in schools of medicine, nursing, physical
determined by the NCIP: Provided, That in provinces
therapy and other allied courses pertaining to the
health profession.
where there are ICCs/IPs but without field offices, the c. Delineation Paper - The official delineation of
NCIP shall establish field offices in said provinces. ancestral domain boundaries including census of all
community members therein, shall be immediately
undertaken by the Ancestral Domains Office upon
Sec. 49. Office of the Executive Director.- The NCIP
filing of the application by the ICCs/IPs concerned.
shall create the Office of the Executive Director
Delineation will be done in coordination with the
which shall serve as its secretariat. The office shall
community concerned and shall at all times include
be headed by an Executive Director who shall be
genuine involvement and participation by the
appointed by the President of the Republic of the
members of the communities concerned;
Philippines upon the recommendation of the NCIP on
a permanent basis. The staffing pattern of the office
shall be determined by the NCIP subject to existing d. Proof required - Proof of Ancestral Domain Claims
rules and regulations. shall include the testimony of elders or community
under oath, and other documents directly or
indirectly attesting to the possession or occupation of
Sec. 50. Consultative Body.- A body consisting of the
the area since time immemorial by such ICCs/IPs in
traditional leaders, elders and representatives from
the concept of owners which shall be any one (1) of
the women and youth sectors of the different
the following authentic documents:
ICCs/IPs shall be constituted by the NCIP from the
time to time to advise it on matters relating to the
problems, aspirations and interests of the ICCs/IPs.
1. Written accounts of the ICCs/IPs customs and
traditions;
CHAPTER VIII
DELINEATION AND RECOGNITION OF ANCESTRAL
DOMAINS 2. Written accounts of the ICCs/IPs political structure
and institution;
Sec. 51. Delineation and Recognition of Ancestral
Domains.- Self-delineation shall be guiding principle 3. Pictures showing long term occupation such as
in the identification and delineation of ancestral those of old improvements, burial grounds, sacred
domains. As such, the ICCs/IPs concerned shall have places and old villages;
a decisive role in all the activities pertinent thereto.
The Sworn Statement of the Elders as to the Scope of
4. Historical accounts, including pacts and
the territories and agreements/pacts made with
agreements concerning boundaries entered into by
neighboring ICCs/IPs, if any, will be essential to the
the ICCs/IPs concerned with other ICCs/IPs;
determination of these traditional territories. The
Government shall take the necessary steps to
identify lands which the ICCs/IPs concerned 5. Survey plans and sketch maps;
traditionally occupy and guarantee effective
protection of their rights of ownership and possession
6. Anthropological data;
thereto. Measures shall be taken in appropriate cases
to safeguard the rights of the ICCs/IPs concerned to
land which may no longer be exclusively occupied by 7. Genealogical surveys;
them, but to which they have traditionally had access
for their subsistence and traditional activities,
8. Pictures and descriptive histories of traditional
particularly of ICCs/IPs who are still nomadic and/or
communal forests and hunting grounds;
shifting cultivators.
j. Issuance of CADT - ICCs/IPs whose ancestral f. Fifteen (15) days after such publication, the
domains have been officially delineated and Ancestral Domains Office shall investigate and
determined by the NCIP shall be issued a CADT in the inspect each application, and if found to be
name of the community concerned, containing a list meritorious, shall cause a parcellary survey of the
of all those identified in the census; and area being claimed. The Ancestral Domains office
shall reject any claim that is deemed patently false
or fraudulent after inspection and verification. In
k. Registration of CADTs - The NCIP shall register
case of rejection, the Ancestral Domains office shall
issued certificates of ancestral domain titles and
give the applicant due notice, copy furnished all
certificates of ancestral lands titles before the
concerned, containing the grounds for denial. The
Register of Deeds in the place where the property is
denial shall be appealable to the NCIP. In case of
situated.
conflicting claims among individual or indigenous
corporate claimants, the Ancestral domains Office
Sec. 53. Identification, Delineation and Certification shall cause the contending parties to meet and assist
of Ancestral Lands.- them in coming up with a preliminary resolution of
the conflict, without prejudice to its full adjudication
according to Sec. 62 of this Act. In all proceedings for customary laws without prejudice to the basic
the identification or delineation of the ancestral requirement of the existing laws on free and prior
domains as herein provided, the Director of Lands informed consent: Provided, That the transfer shall
shall represent the interest of the Republic of the be temporary and will ultimately revert to the
Philippines; and ICCs/IPs in accordance with a program for technology
transfer: Provided, further, That no ICCs/IPs shall be
displaced or relocated for the purpose enumerated
g. The Ancestral Domains Office shall prepare and
under this section without the written consent of the
submit a report on each and every application
specific persons authorized to give consent.
surveyed and delineated to the NCIP, which shall, in
turn, evaluate or corporate (family or clan) claimant
over ancestral lands. Sec. 59. Certification Precondition.- all department
and other governmental agencies shall henceforth be
strictly enjoined from issuing, renewing, or granting
Sec. 54. Fraudulent Claims.- The Ancestral Domains
any concession, license or lease, or entering into any
Office may, upon written request from the ICCs/IPs,
production-sharing agreement, without prior
review existing claims which have been fraudulently
certification from the NCIP that the area affected
acquired by any person or community. Any claim
does not overlap with any ancestral domain. Such
found to be fraudulently acquired by, and issued to,
certificate shall only be issued after a field-based
any person or community may be cancelled by the
investigation is conducted by the Ancestral Domain
NCIP after due notice and hearing of all parties
Office of the area concerned: Provided, That no
concerned.
certificate shall be issued by the NCIP without the
free and prior informed and written consent of the
Sec. 55. Communal Rights.- Subject to Section 56 ICCs/IPs concerned: Provided, further, That no
hereof, areas within the ancestral domains, whether department, government agency or government-
delineated or not, shall be presumed to be owned or -controlled corporation may issue new
communally held: Provide, That communal rights concession, license, lease, or production sharing
under this Act shall not be construed as co-ownership agreement while there is pending application CADT:
as provided in Republic Act. No. 386, otherwise Provided, finally, That the ICCs/IPs shall have the
known as the New Civil Code. right to stop or suspend, in accordance with this Act,
any project that has not satisfied the requirement of
this consultation process.
Sec. 56. Existing Property Rights Regimes.- Property
rights within the ancestral domains already existing
and/or vested upon effectivity of this Act, shall be Sec.60. Exemption from Taxes.- All lands certified to
recognized and respected. be ancestral domains shall be exempt from real
property taxes, specially levies, and other forms of
exaction except such portion of the ancestral
Sec. 57. Natural Resources within Ancestral
domains as are actually used for large-scale
Domains.- The ICCs/IPs shall have the priority rights
agriculture, commercial forest plantation and
in the harvesting, extraction, development or
residential purposes and upon titling by other by
exploitation of any natural resources within the
private person: Provided, that all exactions shall be
ancestral domains. A non-member of the ICCs/IPs
used to facilitate the development and improvement
concerned may be allowed to take part in the
of the ancestral domains.
development and utilization of the natural resources
for a period of not exceeding twenty-five (25) years
renewable for not more than twenty-five (25) years: Sec. 61. Temporary Requisition Powers.- Prior to the
Provided, That a formal and written agreement is establishment of an institutional surveying capacity
entered into with the ICCs/IPs concerned or that the whereby it can effectively fulfill its mandate, but in
community, pursuant to its own decision making no case beyond three (3) years after its creation, the
process, has agreed to allow such operation: NCIP is hereby authorized to request the Department
Provided, finally, That the all extractions shall be of Environment and Natural Resources (DENR)
used to facilitate the development and improvement survey teams as well as other equally capable
of the ancestral domains. private survey teams, through a Memorandum of
Agreement (MOA), to delineate ancestral domain
perimeters. The DENR Secretary shall accommodate
Sec. 58. Environmental Consideration.- Ancestral
any such request within one (1) month of its
domains or portion thereof, which are found
issuance: Provided, That the Memorandum of
necessary for critical watersheds, mangroves wildlife
Agreement shall stipulate, among others, a provision
sanctuaries, wilderness, protected areas, forest
for technology transfer to the NCIP.
cover, or reforestation as determined by the
appropriate agencies with the full participation of the
ICCs/IPs concerned shall be maintained, managed Sec. 62. Resolution of Conflicts.- In cases of
and developed for such purposes. The ICCs/IPs conflicting interest, where there are adverse claims
concerned shall be given the responsibility to within the ancestral domains as delineated in the
maintain, develop, protect and conserve such areas survey plan, and which cannot be resolved, the NCIP
with the full and effective assistance of the shall hear and decide, after notice to the proper
government agencies. Should the ICCs/IPs decide to parties, the disputes arising from the delineation of
transfer the responsibility over the areas, said such ancestral domains: Provided, That if the dispute
decision must be made in writing. The consent of the is between and/or among ICCs/IPs regarding the
ICCs/IPs should be arrived at in accordance with its traditional boundaries of their respective ancestral
domains, customary process shall be followed. The or awards of the Regional Hearing Officer of the
NCIP shall promulgate the necessary rules and NCIP.
regulations to carry out its adjudicatory functions:
Provided, further, That in any decision, order, award
Sec. 69. Quasi-Judicial Powers of the NCIP.- The NCIP
or ruling of the NCIP on any ancestral domain dispute
shall have the power and authority:
or on any matter pertaining to the application,
implementation, enforcement and interpretation of
this Act may be brought for Petition for Review to the a. To promulgate rules and regulations governing the
Court of Appeals within fifteen (15) days from receipt hearing and disposition of cases filed before it as well
of a copy thereof. as those pertaining to its internal functions and such
rules and regulations as may be necessary to carry
out the purposes of this Act;
Sec. 63. Applicable Laws.- Customary laws, traditions
and practices of the ICCs/IPs of the land where the
conflict arises shall be applied first with respect to b. To administer oaths, summon the parties to a
property rights, claims and ownerships, hereditary controversy, issue subpoenas requiring the
succession and settlement of land disputes. Any attendance and testimony of witnesses or the
doubt or ambiguity in the application of laws shall be production of such books, papers, contracts, records,
resolved in favor of the ICCs/IPs. agreements and other document of similar nature as
may be material to a just determination of the matter
under investigation or hearing conducted in
Sec. 64. Remedial Measures.- Expropriation may be
pursuance of this Act;
resorted to in the resolution of conflicts of interest
following the principle of the "common good". The
NCIP shall take appropriate legal action for the c. To hold any person in contempt, directly or
cancellation of officially documented titles which indirectly, and impose appropriate penalties therefor;
were acquired illegally: Provided, That such and
procedure shall ensure that the rights of possessors
in good faith shall be respected: Provided, further,
d. To enjoin any or all acts involving or arising from
That the action for cancellation shall be initiated
any case pending therefore it which, if not restrained
within two (2) years from the effectivity of this Act:
forthwith, may cause grave or irreparable damage to
Provided, finally, That the action for reconveyance
any of the parties to the case or seriously affect
shall be a period of ten (10) years in accordance with
social or economic activity.
existing laws.
Section 2. All lands of the public domain, waters, Taking into account the requirements of
minerals, coal, petroleum, and other mineral oils, all conservation, ecology, and development, and subject
forces of potential energy, fisheries, forests or to the requirements of agrarian reform, the Congress
timber, wildlife, flora and fauna, and other natural shall determine, by law, the size of lands of the
resources are owned by the State. With the public domain which may be acquired, developed,
exception of agricultural lands, all other natural held, or leased and the conditions therefor.
resources shall not be alienated. The exploration,
development, and utilization of natural resources
Section 4. The Congress shall, as soon as possible,
shall be under the full control and supervision of the
determine, by law, the specific limits of forest lands
State. The State may directly undertake such
and national parks, marking clearly their boundaries
activities, or it may enter into co-production, joint
on the ground. Thereafter, such forest lands and
venture, or production-sharing agreements with
national parks shall be conserved and may not be
Filipino citizens, or corporations or associations at
increased nor diminished, except by law. The
least sixty per centum of whose capital is owned by
Congress shall provide for such period as it may
such citizens. Such agreements may be for a period
determine, measures to prohibit logging in
not exceeding twenty-five years, renewable for not
endangered forests and watershed areas.
more than twenty-five years, and under such terms
and conditions as may be provided by law. In cases
of water rights for irrigation, water supply fisheries, Section 5. The State, subject to the provisions of this
or industrial uses other than the development of Constitution and national development policies and
water power, beneficial use may be the measure and programs, shall protect the rights of indigenous
limit of the grant. cultural communities to their ancestral lands to
ensure their economic, social, and cultural well-
being.
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 The Congress may provide for the applicability of
exclusively to Filipino citizens. customary laws governing property rights or
relations in determining the ownership and extent of
ancestral domain.
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 fish- workers in rivers, Section 7. Save in cases of hereditary succession, no
lakes, bays, and lagoons. private lands shall be transferred or conveyed except
to individuals, corporations, or associations qualified
to acquire or hold lands of the public domain.
The President may enter into agreements with
foreign-owned corporations involving either technical
or financial assistance for large-scale exploration, Section 8. Notwithstanding the provisions of Section
development, and utilization of minerals, petroleum, 7 of this Article, a natural-born citizen of the
and other mineral oils according to the general terms Philippines who has lost his Philippine citizenship
and conditions provided by law, based on real may be a transferee of private lands, subject to
contributions to the economic growth and general limitations provided by law.
welfare of the country. In such agreements, the State
shall promote the development and use of local
scientific and technical resources.
(d) "Carrying capacity" refers to the capacity of (q) "Exploration" means the searching or prospecting
natural and human environments to accommodate for mineral resources by geological, geochemical or
and absorb change without experiencing conditions geophysical surveys, remote sensing, test pitting,
of instability and attendant degradation. trenching, drilling, shaft sinking, tunneling or any
other means for the purpose of determining the
(e) "Contiguous zone" refers to water, sea bottom existence, extent, quantity and quality thereof and
and substratum measured twenty-four nautical miles the feasibility of mining them for profit.
(24 n.m.) seaward from base line of the Philippine
archipelago. (r) "Financial or technical assistance agreement"
means a contract involving financial or technical
(f) "Contract area" means land or body of water assistance for large-scale exploration, development,
delineated for purposes of exploration, development, and utilization of mineral resources.
or utilization of the minerals found therein.
(s) "Force majeure" means acts or circumstances
(g) "Contractor" means a qualified person acting beyond the reasonable control of contractor
alone or in consortium who is a party to a mineral including, but not limited to, war, rebellion,
agreement or to a financial or technical assistance insurrection, riots, civil disturbance, blockade,
agreement. sabotage, embargo, strike, lockout, any dispute with
surface owners and other labor disputes, epidemic,
(h) "Co-production agreement (CA)" means an earthquake, storm, flood or other adverse weather
agreement entered into between the Government conditions, explosion, fire, adverse action by
and one or more contractors in accordance with government or by any instrumentality or subdivision
Section 26(b) hereof. thereof, act of God or any public enemy and any
cause that herein describe over which the affected
(i) "Department" means the Department of party has no reasonable control.
Environment and Natural Resources.
(t) "Foreign-owned corporation" means any
(j) "Development" means the work undertaken to corporation, partnership, association, or cooperative
explore and prepare an ore body or a mineral deposit duly registered in accordance with law in which less
than fifty per centum (50%) of the capital is owned computed for tax purposes, excluding appraisal
by Filipino citizens. increase and construction in progress.
(u) "Government" means the government of the (ai) "Offshore" means the water, sea bottom, and
Republic of the Philippines. subsurface from the shore or coastline reckoned
from the mean low tide level up to the two hundred
(v) "Gross output" means the actual market value of nautical miles (200 n.m.) exclusive economic zone
minerals or mineral products from its mining area as including the archipelagic sea and contiguous zone.
defined in the National Internal Revenue Code.
(aj) "Onshore" means the landward side from the
(w) "Indigenous cultural community" means a group mean tide elevation, including submerged lands in
or tribe of indigenous Filipinos who have continuously lakes, rivers and creeks.
lived as communities on communally-bounded and
defined land since time immemorial and have (ak) "Ore" means a naturally occurring substance or
succeeded in preserving, maintaining, and sharing material from which a mineral or element can be
common bonds of languages, customs, traditions, mined and/or processed for profit.
and other distinctive cultural traits, and as may be
defined and delineated by law. (al) "Permittee" means the holder of an exploration
permit.
(x) "Joint Venture Agreement (JVA)" means an
agreement entered into between the Government (am) "Pollution control and infrastructure devices"
and one or more contractors in accordance with refers to infrastructure, machinery, equipment and/or
Section 26(c) hereof. improvements used for impounding, treating or
neutralizing, precipitating, filtering, conveying and
(y) "Mineral processing" means the milling, cleansing mine industrial waste and tailings as well
benefaction or upgrading of ores or minerals and as eliminating or reducing hazardous effects of solid
rocks or by similar means to convert the same into particles, chemicals, liquids or other harmful by
marketable products. products and gases emitted from any facility utilized
in mining operations for their disposal.
(z) "Mine wastes and tailings" shall mean soil and
rock materials from surface or underground mining (an) "President" means the President of the Republic
and milling operations with no economic value to the of the Philippines.
generator of the same.
(ao) "Private land" refers to any land belonging to
(aa) "Minerals" refers to all naturally occurring any private person which includes alienable and
inorganic substance in solid, gas, liquid, or any disposable land being claimed by a holder, claimant,
intermediate state excluding energy materials such or occupant who has already acquired a vested right
as coal, petroleum, natural gas, radioactive thereto under the law, although the corresponding
materials, and geothermal energy. certificate or evidence of title or patent has not been
actually issued.
(ab) "Mineral agreement" means a contract between
the government and a contractor, involving mineral (ap) "Public land" refers to lands of the public domain
production-sharing agreement, co-production which have been classified as agricultural lands and
agreement, or joint-venture agreement. subject to management and disposition or
concession under existing laws.
(ac) "Mineral land" means any area where mineral
resources are found. (aq) "Qualified person" means any citizen of the
Philippines with capacity to contract, or a
(ad) "Mineral resource" means any concentration of corporation, partnership, association, or cooperative
minerals/rocks with potential economic value. organized or authorized for the purpose of engaging
in mining, with technical and financial capability to
(ae) "Mining area" means a portion of the contract undertake mineral resources development and duly
area identified by the contractor for purposes of registered in accordance with law at least sixty per
development, mining, utilization, and sites for cent (60%) of the capital of which is owned by
support facilities or in the immediate vicinity of the citizens of the Philippines: Provided, That a legally
mining operations. organized foreign-owned corporation shall be
deemed a qualified person for purposes of granting
(af) "Mining operation" means mining activities an exploration permit, financial or technical
involving exploration, feasibility, development, assistance agreement or mineral processing permit.
utilization, and processing.
(ar) "Quarrying" means the process of extracting,
(ag) "Nongovernmental Organization (NGO)" includes removing and disposing quarry resources found on or
nonstock, nonprofit organizations involved in underneath the surface of private or public land.
activities dealing with resource and environmental
conservation, management and protection. (as) "Quarry permit" means a document granted to a
qualified person for the extraction and utilization of
(ah) "Net assets" refers to the property, plant and quarry resources on public or private lands.
equipment as reflected in the audited financial
statement of the contractor net of depreciation, as
(at) "Quarry resources" refers to any common rock or aggregate area of twenty-five percent (25%) of such
other mineral substances as the Director of Mines mineral reservation, subject to valid existing mining
and Geosciences Bureau may declare to be quarry quarrying rights as provided under Section 112
resources such as, but not limited to, andesite, Chapter XX hereof. All submerged lands within the
basalt, conglomerate, coral sand, diatomaceous contiguous zone and in the exclusive economic zone
earth, diorite, decorative stones, gabbro, granite, of the Philippines are hereby declared to be mineral
limestone, marble, marl, red burning clays for reservations.
potteries and bricks, rhyolite, rock phosphate,
sandstone, serpentine, shale, tuff, volcanic cinders, A ten per centum (10%) share of all royalties and
and volcanic glass: Provided, That such quarry revenues to be derived by the government from the
resources do not contain metals or metallic development and utilization of the mineral resources
constituents and/or other valuable minerals in within mineral reservations as provided under this
economically workable quantities: Provided, further, Act shall accrue to the Mines and Geosciences
That non-metallic minerals such as kaolin, feldspar, Bureau to be allotted for special projects and other
bullquartz, quartz or silica, sand and pebbles, administrative expenses related to the exploration
bentonite, talc, asbestos, barite, gypsum, bauxite, and development of other mineral reservations
magnesite, dolomite, mica, precious and semi- mentioned in Section 6 hereof.
precious stones, and other non-metallic minerals that
may later be discovered and which the Director Sec. 6 Other Reservations. Mining operations in
declares the same to be of economically workable reserved lands other than mineral reservations may
quantities, shall not be classified under the category be undertaken by the Department, subject to
of quarry resources. limitations as herein provided. In the event that the
Department cannot undertake such activities, they
(au) "Region director" means the regional director of may be undertaken by a qualified person in
any mines regional office under the Department of accordance with the rules and regulations
Environment and Natural Resources. promulgated by the Secretary. The right to develop
and utilize the minerals found therein shall be
(av) "Regional office" means any of the mines awarded by the President under such terms and
regional offices of the Department of Environment conditions as recommended by the Director and
and Natural Resources. approved by the Secretary. Provided, That the party
who undertook the exploration of said reservation
(aw) "Secretary" means the Secretary of the shall be given priority. The mineral land so awarded
Department of Environment and Natural Resources. shall be automatically excluded from the reservation
during the term of the agreement: Provided, further,
(ax) "Special allowance" refers to payment to the That the right of the lessee of a valid mining contract
claim-owners or surface right-owners particularly existing within the reservation at the time of its
during the transition period from Presidential Decree establishment shall not be prejudiced or impaired.
No. 463 and Executive Order No. 279, series of 1987.
Sec. 7 Periodic Review of Existing Mineral
(ay) "State" means the Republic of the Philippines. Reservations. The Secretary shall periodically review
existing mineral reservations for the purpose of
(az) "Utilization" means the extraction or disposition determining whether their continued existence is
of minerals. consistent with the national interest, and upon the
recommendation, the President may, by
CHAPTER II proclamation, alter or modify the boundaries thereof
GOVERNMENT MANAGEMENT or revert the same to the public domain without
prejudice to prior existing rights.
Sec. 4 Ownership of Mineral Resources. - Mineral
resources are owned by the State and the Sec. 8 Authority of the Department. The Department
exploration, development, utilization, and processing shall be the primary government agency responsible
thereof shall be under its full control and supervision. for the conservation, management, development,
The State may directly undertake such activities or it and proper use of the State's mineral resources
may enter into mineral agreements with contractors. including those in reservations, watershed areas, and
lands of the public domain. The Secretary shall have
The State shall recognize and protect the rights of the authority to enter into mineral agreements on
the indigenous cultural communities to their behalf of the Government upon the recommendation
ancestral lands as provided for by the Constitution. of the Director, promulgate such rules and
Sec. 5 Mineral Reservations. When the national regulations as may be necessary to implement the
interest so requires, such as when there is a need to intent and provisions of this Act.
preserve strategic raw materials for industries critical
to national development, or certain minerals for Sec. 9 Authority of the Bureau. The Bureau shall have
scientific, cultural or ecological value, the President direct charge in the administration and disposition of
may establish mineral reservations upon the mineral lands and mineral resources and shall
recommendation of the Director through the undertake geological, mining, metallurgical,
Secretary. Mining operations in existing mineral chemical, and other researches as well as geological
reservations and such other reservations as may and mineral exploration surveys. The Director shall
thereafter be established, shall be undertaken by the recommend to the Secretary the granting of mineral
Department or through a contractor: Provided, That a agreements to duly qualified persons and shall
small scale mining agreement for a maximum monitor the compliance by the contractor of the
terms and conditions of the mineral agreements. The the parties. The said royalty shall form part of a trust
Bureau may confiscate surety, performance and fund for the socioeconomic well-being of the
guaranty bonds posted through an order to be indigenous cultural community.
promulgated by the Director. The Director may
deputize, when necessary, any member or unit of the Sec. 18 Areas Open to Mining Operations. Subject to
Philippine National Police, barangay, duly registered any existing rights or reservations and prior
nongovernmental organization (NGO) or any qualified agreements of all parties, all mineral resources in
person to police all mining activities. public or private lands, including timber or
forestlands as defined in existing laws shall be open
Sec. 10 Regional Offices. There shall be as many to mineral agreements or financial or technical
regional offices in the country as may be established assistance agreement applications. Any conflict that
by the Secretary, upon the recommendation of the may arise under this provision shall be heard and
Director. resolved by the panel of arbitrators.
Sec. 11 Processing of Applications. The system of Sec. 19 Areas Closed to Mining Applications. Mineral
processing applications for mining rights shall be agreement or financial or technical assistance
prescribed in the rules and regulations of this Act. agreement applications shall not be allowed:
Sec. 12 Survey, Charting and Delineation of Mining (a) In military and other government reservations,
Areas. A sketch plan or map of the contract or mining except upon prior written clearance by the
area prepared by a deputized geodetic engineer government agency concerned;
suitable for publication purposes shall be required
during the filing of a mineral agreement or financial (b) Near or under public or private buildings,
or technical assistance agreement application. cemeteries, archeological and historic sites, bridges,
Thereafter, the contract or mining area shall be highways, waterways, railroads, reservoirs, dams or
surveyed and monumented by a deputized geodetic other infrastructure projects, public or private works
engineer or bureau geodetic engineer and the survey including plantations or valuable crops, except upon
plan shall be approved by the Director before the written consent of the government agency or private
approval of the mining feasibility. entity concerned;
Sec. 13 Meridional Blocks. For purposes of the (c) In areas covered by valid and existing mining
delineation of the contract of mining areas under this rights;
Act, the Philippine territory and its exclusive
economic zone shall be divided into meridional (d) In areas expressedly prohibited by law;
blocks of one-half (1/2) minute of latitude and one-
half (1/2) minute of longitude. (e) In areas covered by small-scale miners as defined
by law unless with prior consent of the small-scale
Sec. 14 Recording System. There shall be established miners, in which case a royalty payment upon the
a national and regional filing and recording system. A utilization of minerals shall be agreed upon by the
mineral resource database system shall be set up in parties, said royalty forming a trust fund for the
the Bureau which shall include, among others, a socioeconomic development of the community
mineral rights management system. The Bureau shall concerned; and
publish at least annually, a mineral rights
management system. The Bureau shall publish at (f) Old growth or virgin forests, proclaimed
least annually, a mineral gazette of nationwide watershed forest reserves, wilderness areas,
circulation containing among others, a current list of mangrove forests, mossy forests, national parks,
mineral rights, their location in the map, mining rules provincial/municipal forests, parks, greenbelts, game
and regulations, other official acts affecting mining, refuge and bird sanctuaries as defined by law in
and other information relevant to mineral resources areas expressly prohibited under the National
development. A system and publication fund shall be Integrated Protected areas System (NIPAS) under
included in the regular budget of the Bureau. Republic Act No. 7586, Department Administrative
Order No. 25, series of 1992 and other laws.
CHAPTER III
SCOPE OF APPLICATION CHAPTER IV
EXPLORATION PERMIT
Sec. 15 Scope of Application. This Act shall govern
the exploration, development, utilization and Sec. 20 Exploration Permit. An exploration permit
processing of all mineral resources. grants the right to conduct exploration for all
minerals in specified areas. The Bureau shall have
Sec. 16 Opening of Ancestral Lands for Mining the authority to grant an exploration permit to a
Operations. No ancestral land shall be opened for qualified person.
mining operations without the prior consent of the
indigenous cultural community concerned. Sec. 21 Terms and Conditions of the Exploration
Permit. An exploration permit shall be for a period of
Sec. 17 Royalty Payments for Indigenous Cultural two (2) years, subject to annual review and
Communities. In the event of an agreement with an relinquishment or renewal upon the recommendation
indigenous cultural community pursuant to the of the Director.
preceding section, the royalty payment, upon
utilization of the minerals shall be agreed upon by
Sec. 22 Maximum Areas for Exploration Permit. The mineral agreements or financial or technical
maximum area that a qualified person may hold at assistance agreement.
any one time shall be:
Sec. 25 Transfer or Assignment. An exploration
(a) Onshore, in any one province - permit may be transferred or assigned to a qualified
person subject to the approval of the Secretary upon
(1) For individuals, twenty (20) blocks; and the recommendation of the Director.
(b) Onshore, in the entire Philippines - Sec. 26 Modes of Mineral Agreement. For purposes of
mining operations, a mineral agreement may take
(1) For individuals, forty (40) blocks; and the following forms as herein defined:
(2) For partnerships, corporations, cooperatives, or (a) Mineral production sharing agreement - is an
associations, four hundred (400) blocks. agreement where the Government grants to the
contractor the exclusive right to conduct mining
(c) Onshore, beyond five hundred meters (500m) operations within a contract area and shares in the
from the mean low tide level - gross output. The contractor shall provide the
financing, technology, management and personnel
(1) For individuals, one hundred (100) blocks; and necessary for the implementation of this agreement.
(2) For partnerships, cooperatives, associations, or Sec. 33 Eligibility. Any qualified person with technical
corporations, five hundred (500) blocks; and and financial capability to undertake large-scale
exploration, development, and utilization of mineral
(3) For the exclusive economic zone, a larger area to resources in the Philippines may enter into a financial
be determined by the Secretary. or technical assistance agreement directly with the
Government through the Department.
The maximum areas mentioned above that a
contractor may hold under a mineral agreement shall Sec. 34 Maximum Contract Area. The maximum
not include mining/quarry areas under operating contract area that may be granted per qualified
agreements between the contractor and a person, subject to relinquishment shall be:
claimowner/lessee/permittee/licensee entered into
under Presidential Decree No. 463. (a) 1,000 meridional blocks onshore;
(b) 4,000 meridional blocks offshore; or
Sec. 29 Filing and Approval of Mineral Agreements. (c) Combinations of (a) and (b) provided that it shall
All proposed mineral agreements shall be filed in the not exceed the maximum limits for onshore and
region where the areas of interest are located, offshore areas.
except in mineral reservations which shall be filed
with the Bureau. Sec. 35 Terms and Conditions. The following terms,
conditions, and warranties shall be incorporated in
The filing of a proposal for a mineral agreement shall the financial or technical assistance agreement, to
give the proponent the prior right to areas covered wit:
by the same. The proposed mineral agreement will
be approved by the Secretary and copies thereof (a) A firm commitment in the form of a sworn
shall be submitted to the President. Thereafter, the statement, of an amount corresponding to the
President shall provide a list to Congress of every expenditure obligation that will be invested in the
approved mineral agreement within thirty (30) days contract area: Provided, That such amount shall be
from its approval by the Secretary. subject to changes as may be provided for in the
rules and regulations of this act;
Sec. 30 Assignment/Transfer. Any assignment or
transfer of rights and obligations under any mineral (b) A financial guarantee bond shall be posted in
agreement except a financial or technical assistance favor of the Government in an amount equivalent to
agreement shall be subject to the prior approval of the expenditure obligation of the applicant for any
the Secretary. Such assignment or transfer shall be year.
deemed automatically approved if not acted upon by
the Secretary within thirty (30) working days from (c) Submission of proof of technical competence,
official receipt thereof, unless patently such as, but not limited to, its track record in mineral
unconstitutional or illegal. resource exploration, development, and utilization;
details of technology to be employed in the proposed
Sec. 31 Withdrawal from Mineral Agreements. The operation; and details of technical personnel to
contractor may, by giving due notice at any time undertake the operations;
during the terms of the agreement, apply for the
cancellation of the mineral agreement due to causes (d) Representations and warranties that the applicant
which, in the opinion of the contractor, make has all the qualifications and none of the
continued mining operations no longer feasible or disqualifications for entering into the agreement;
viable. The Secretary shall consider the notice and
issue its decision within a period of thirty (30) days: (e) Representations and warranties that the
Provided, That the contractor has met all its financial, contractor has or has access to all the financing,
fiscal and legal obligations. managerial and technical expertise and, if
circumstances demand, the technology required to
Sec. 32 Terms. Mineral agreements shall have a term promptly and effectively carry out the objectives of
not exceeding twenty-five (25) years to start from the agreement with the understanding to timely
the date of execution thereof, and renewable for deploy these resources under its supervision
another term not exceeding twenty-five (25) years pursuant to the periodic work programs and related
under the same terms and conditions thereof, budgets, when proper, providing an exploration
without prejudice to charges mutually agreed upon period up to two (2) years, extendible for another
by the parties. After the renewal period, the two (2) years but subject to annual review by the
operation of the mine may be undertaken by the Secretary in accordance with the implementing rules
Government or through a contractor. The contract for and regulations of this Act, and further, subject to
the operation of a mine shall be awarded to the the relinquishment obligations;
highest bidder in a public bidding after due
(f) Representations and warranties that, except for appropriate government agency to give the
payments for dispositions for its equity, foreign proponent the prior right to the area covered by such
investments in local enterprises which are qualified proposal: Provided, That existing mineral
for repartriation, and local supplier's credits and such agreements, financial or technical assistance
other generally accepted and permissible financial agreements and other mining rights are not impaired
schemes for raising funds for valid business or prejudiced thereby. The Secretary shall
purposes, the contractor shall not raise any form of recommend its approval to the President.
financing from domestic sources of funds, whether in
Philippine or foreign currency, for conducting its Sec. 38 Terms of Financial or Technical Assistance
mining operations for and in the contract area; Agreement. A financial or technical assistance
agreement shall have a term not exceeding twenty-
(g) The mining operations shall be conducted in five (25) years to start from the execution thereof,
accordance with the provisions of this Act and its renewable for not more than twenty-five (25) years
implementing rules and regulations; under such terms and conditions as may be provided
by law.
(h) Work programs and minimum expenditures
commitments; Sec. 39 Option to Convert into a Mineral Agreement.
The contractor has the option to convert the financial
(i) Preferential use of local goods and services to the or technical assistance agreement to a mineral
maximum extent practicable; agreement at any time during the term of the
agreement, if the economic viability of the contract
(j) A stipulation that the contractors are obligated to area is found to be inadequate to justify large-scale
give preference to Filipinos in all types of mining mining operations, after proper notice to the
employment for which they are qualified and that Secretary as provided for under the implementing
technology shall be transferred to the same; rules and regulations: Provided, That the mineral
agreement shall only be for the remaining period of
(k) Requiring the prominent to effectively use the original agreement.
appropriate anti-pollution technology and facilities to
protect the environment and to restore or In the case of a foreign contractor, it shall reduce its
rehabilitate mined out areas and other areas affected equity to forty percent (40%) in the corporation,
by mine tailings and other forms of pollution or partnership, association, or cooperative. Upon
destruction; compliance with this requirement by the contractor,
the Secretary shall approve the conversion and
(l) The contractors shall furnish the Government execute the mineral production-sharing agreement.
records of geologic, accounting, and other relevant
data for its mining operations, and that book of Sec. 40 Assignment/Transfer. A financial or technical
accounts and records shall be open for inspection by assistance agreement may be assigned or
the government; transferred, in whole or in part, to a qualified person
subject to the prior approval of the President:
(m) Requiring the proponent to dispose of the Provided, That the President shall notify Congress of
minerals and by products produced under a financial every financial or technical assistance agreement
or technical assistance agreement at the highest assigned or converted in accordance with this
price and more advantageous terms and conditions provision within thirty (30) days from the date of the
as provided for under the rules and regulations of approval thereof.
this Act;
Sec. 41 Withdrawal from Financial or Technical
(n) Provide for consultation and arbitration with Assistance Agreement. The contractor shall manifest
respect to the interpretation and implementation of in writing to the Secretary his intention to withdraw
the terms and conditions of the agreements; and from the agreement, if in his judgement the mining
project is no longer economically feasible, even after
(o) Such other terms and conditions consistent with he has exerted reasonable diligence to remedy the
the Constitution and with this Act as the Secretary cause or the situation. The Secretary may accept the
may deem to be for the best interest of the State and withdrawal: Provided, That the contractor has
the welfare of the Filipino people. complied or satisfied all his financial, fiscal or legal
obligations.
Sec. 36 Negotiations. A financial or technical
assistance agreement shall be negotiated by the CHAPTER VII
Department and executed and approved by the SMALL-SCALE MINING
President. The President shall notify Congress of all
Financial or technical assistance agreements within Sec. 42 Small-scale Mining. Small-scale mining shall
thirty (30) days from execution and approval thereof. continue to be governed by Republic Act No. 7076
and other pertinent laws.
Sec. 37 Filing and Evaluation of Financial or Technical
Assistance Agreement Proposals. All financial or CHAPTER VIII
technical assistance agreement proposals shall be QUARRY RESOURCES
filed with the Bureau after payment of the required
processing fees. If the proposal is found to be Sec. 43 Quarry Permit. Any qualified person may
sufficient and meritorious in form and substance apply to the provincial/city mining regulatory board
after evaluation, it shall be recorded with the for a quarry permit on privately-owned lands and/or
public lands for building and construction materials A mineral agreement or a financial technical
such as marble, basalt, andesite, conglomerate, tuff, assistance agreement contractor shall, however,
adobe, granite, gabbro, serpentine, inset filing have the right to extract and remove sand and gravel
materials, clay for ceramic tiles and building bricks, and other loose unconsolidated materials without
pumice, perlite and other similar materials that are need of a permit within the area covered by the
extracted by quarrying from the ground. The mining agreement for the exclusive use in the mining
provincial governor shall grant the permit after the operations: Provided, That monthly reports of the
applicant has complied with all the requirements as quantity of materials extracted therefrom shall be
prescribed by the rules and regulations. submitted to the mines regional office concerned:
Provided, further, That said right shall be
The maximum area which a qualified person may coterminous with the expiration of the agreement.
hold at any one time shall be five hectares (5 has.):
Provided, That in large-scale quarry operations Holders of existing mining leases shall likewise have
involving cement raw materials, marble, granite, the same rights as that of a contractor: Provided,
sand and gravel and construction agreements, a That said right shall be coterminous with the expiry
qualified person and the government may enter into dates of the lease.
a mineral agreement as defined herein.
Sec. 49 Government Gratuitous Permit. Any
A quarry permit shall have a term of five (5) years, government entity or instrumentality may be granted
renewable for like periods but not to exceed a total a gratuitous permit by the provincial governor to
term of twenty-five (25) years, No quarry permit shall extract sand and gravel, quarry or loose
be issued or granted on any area covered by a unconsolidated materials needed in the construction
mineral agreement, or financial or technical of building and/or infrastructure for public use or
assistance agreement. other purposes over an area of not more than two
hectares (2 has.) for a period coterminous with said
Sec. 44 Quarry Fee and Taxes. A permittee shall, construction.
during the term of his permit, pay a quarry fee as
provided for under the implementing rules and Sec. 50 Private Gratuitous Permit. Any owner of land
regulations. The permittee shall also pay the excise may be granted a private gratuitous permit by the
tax as provided by pertinent laws. provincial governor.
Sec. 45 Cancellation of Quarry Permit. A quarry Sec. 51 Guano Permit. Any qualified person may be
permit may be cancelled by the provincial governor granted a guano permit by the provincial governor to
for violations of the provisions of this Act or its extract and utilize loose unconsolidated guano and
implementing rules and regulations or the terms and other organic fertilizer materials in any portion of a
conditions of said permit: Provided, That before the municipality where he has established domicile. The
cancellation of such permit, the holder thereof shall permit shall be for specific caves and/or for confined
be given the opportunity to be heard in an sites with locations verified by the Department's field
investigation conducted for the purpose. officer in accordance with existing rules and
regulations.
Sec. 46 Commercial Sand and Gravel Permit. Any
qualified person may be granted a permit by the Sec. 52 Gemstone Gathering Permit. Any qualified
provincial governor to extract and remove sand and person may be granted a non-exclusive gemstone
gravel or other loose or unconsolidated materials gathering permit by the provincial governor to gather
which are used in their natural state, without loose stones useful as gemstones in rivers and other
undergoing processing from an area of not more locations.
than five hectares (5 has.) and in such quantities as
may be specified in the permit. CHAPTER IX
TRANSPORT, SALE AND PROCESSING OF
Sec. 47 Industrial Sand and Gravel Permit. Any MINERALS
qualified person may be granted an industrial sand
and gravel permit by the Bureau for the extraction of Sec. 53 Ore Transport Permit. A permit specifying the
sand and gravel and other loose or unconsolidated origin and quantity of non-processed mineral ores or
materials that necessitate the use of mechanical minerals shall be required for their transport.
processing covering an area of more than five Transport permits shall be issued by the mines
hectares (5 has.) at any one time. The permit shall regional director who has jurisdiction over the area
have a term of five (5) years, renewable for a like where the ores were extracted. In the case of mineral
period but not to exceed a total term of twenty-five ores or minerals being transported from the small-
(25) years. scale mining areas to the custom mills or processing
plants, the Provincial Mining Regulatory Board
Sec. 48 Exclusive Sand and Gravel Permit. Any (PMRB) concerned shall formulate their own policies
qualified person may be granted an exclusive sand to govern such transport of ores produced by small-
and gravel permit by the provincial governor to scale miners. The absence of a permit shall be
quarry and utilize sand and gravel or other loose or considered as prima facie evidence of illegal mining
unconsolidated materials from public lands for his and shall be sufficient cause for the Government to
own use, provided that there will be no commercial confiscate the ores or minerals being transported,
disposition thereof. the tools and equipment utilized, and the vehicle
containing the same. Ore samples not exceeding two
metric tons (2 m.t.) to be used exclusively for assay
or pilot test purposes shall be exempted from such technical resources in the mining operations, where
requirement. the same are of equivalent quality, and are available
on equivalent terms as their imported counterparts.
Sec. 54 Mineral Trading Registration. No person shall
engage in the trading of mineral products, either Sec. 61 Donations/Turn Over of Facilities. Prior to
locally or internationally, unless registered with the cessation of mining operations occasioned by
Department of Trade and Industry and accredited by abandonment or withdrawal of operations, on public
the Department, with a copy of said registration lands by the contractor, the latter shall have a period
submitted to the Bureau. of one (1) year therefrom within which to remove his
improvements; otherwise, all the social infrastructure
Sec. 55 Minerals Processing Permit. No person shall and facilities shall be turned over or donated tax-free
engage in the processing of minerals without first to the proper government authorities, national or
securing a minerals processing permit from the local, to ensure that said infrastructure and facilities
Secretary. Minerals processing permit shall be for a are continuously maintained and utilized by the host
period of five (5) years renewable for like periods but and neighboring communities.
not to exceed a total term of twenty-five (25) years.
In the case of mineral ores or minerals produced by Sec. 62 Employment of Filipinos. A contractor shall
the small-scale miners, the processing thereof as give preference to Filipino citizens in all types of
well as the licensing of their custom mills, or mining employment within the country insofar as
processing plants shall continue to be governed by such citizens are qualified to perform the
the provisions of Republic Act No. 7076. corresponding work with reasonable efficiency and
without hazard to the safety of the operations. The
Sec. 56 Eligibility of Foreign-owned/-controlled contractor, however, shall not be hindered from
Corporation. A foreign-owned/-controlled corporation hiring employees of his own selection, subject to the
may be granted a mineral processing permit. provision of Commonwealth Act No. 613, as
amended, for technical and specialized work which in
CHAPTER X his judgement and with the approval of the Director,
DEVELOPMENT OF MINING COMMUNITIES, required highly-specialized training or long
SCIENCE AND MINING TECHNOLOGY experience in exploration, development or utilization
of mineral resources: Provided, That in no case shall
Sec. 57 Expenditure for Community Development each employment exceed five (5) years or the
and Science and Mining Technology. A contractor payback period as represented in original project
shall assist in the development of its mining study, whichever is longer: Provided, further, That
community, the promotion of the general welfare of each foreigner employed as mine manager, vice-
its inhabitants, and the development of science and president for operations or in an equivalent
mining technology. managerial position in charge of mining, milling,
quarrying or drilling operation shall:
Sec. 58 Credited Activities. Activities that may be
credited as expenditures for development of mining (a) Present evidence of his qualification and work
communities, and science and mining technology are experience; or
the following:
(b) Shall pass the appropriate government licensure
(a) Any activity or expenditure intended to enhance examination; or
the development of the mining and neighboring
communities of a mining operation other than those (c) In special cases, may be permitted to work by the
required or provided for under existing laws, or Director for a period not exceeding one (1) year:
collective bargaining agreements, and the like: and Provided, however, That if reciprocal privileges are
extended to Filipino nationals in the country of
(b) Any activity or expenditure directed towards the domicile, the Director may grant waivers or
development of geosciences and mining technology exemptions.
such as, but not limited to, institutional and
manpower development, and basic and applied CHAPTER XI
researches. Appropriate supervision and control SAFETY AND ENVIRONMENTAL PROTECTION
mechanisms shall be prescribed in the implementing
rules and regulations of this Act. Sec. 63 Mines Safety and Environmental Protection.
All contractors and permittees shall strictly comply
Sec. 59 Training and Development. A contractor shall with all the mines safety rules and regulations as
maintain an effective program of manpower training may be promulgated by the Secretary concerning the
and development throughout the term of the mineral safe and sanitary upkeep of the mining operations
agreement and shall encourage and train Filipinos to and achieve waste-free and efficient mine
participate in all aspects of the mining operations, development. Personnel of the Department involved
including the management thereof. For highly- in the implementation of mines safety, health and
technical and specialized mining operations, the environmental rules and regulations shall be covered
contractor may, subject to the necessary under Republic Act No. 7305.
government clearances, employ qualified foreigners.
Sec. 64 Mine Labor. No person under sixteen (16)
Sec. 60 Use of Indigenous Goods, Services and years of age shall be employed in any phase of
Technologies. A contractor shall give preference to mining operations and no person under eighteen (18)
the use of local goods, services and scientific and
years of age shall be employed underground in a local government units, nongovernmental and
mine. people's organizations and other concerned sectors
of the community: Provided, That a completed
Sec. 65 Mine Supervision. All mining and quarrying ecological profile of the proposed mining area shall
operations that employ more than fifty (50) workers also constitute part of the environmental impact
shall have at least one (1) licensed mining engineer assessment. People's organizations and non-
with at least five (5) years of experience in mining governmental organizations shall be allowed and
operations, and one (1) registered foreman. encourage to participate in ensuring that
contractors/permittees shall observe all the
Sec. 66 Mine Inspection. The regional director shall requirements of environmental protection.
have exclusive jurisdiction over the safety inspection
of all installations, surface or underground, in mining Sec. 71 Rehabilitation. Contractors and permittees
operations at reasonable hours of the day or night shall technically and biologically rehabilitate the
and as much as possible in a manner that will not excavated mined-out, tailings covered and disturbed
impede or obstruct work in progress of a contractor areas to the condition of environmental safety, as
or permittee. may be provided in the implementing rules and
regulations of this Act. A mine rehabilitation fund
Sec. 67 Power to Issue Orders. The mines regional shall be created, based on the contractor's approved
director shall, in consultation with the Environmental work program, and shall be deposited as a trust fund
Management Bureau, forthwith or within such time in a government depository bank and used for
as specified in his order, require the contractor to physical and social rehabilitation of areas and
remedy any practice connected with mining or communities affected by mining activities and for
quarrying operations, which is not in accordance with research on the social, technical and preventive
safety and anti-pollution laws and regulations, which aspects of rehabilitation. Failure to fulfill the above
is not in accordance with safety and anti-pollution obligation shall mean immediate suspension or
laws and regulations. In case of imminent danger to closure of the mining activities of the
life or property, the mines regional director may contractor/permittee concerned.
summarily suspend the mining or quarrying
operations until the danger is removed, or CHAPTER XII
appropriate measures are taken by the contractor or AUXILIARY MINING RIGHTS
permittee.
Sec. 72 Timber Rights. Any provision of law to the
Sec. 68 Report of Accidents. In case of any incident contrary notwithstanding, a contractor may be
or accident, causing or creating the danger of loss of ranged a right to cut trees or timber within his
life or serious physical injuries, the person in charge mining area as may be necessary for his mining
of operations shall immediately report the same to operations subject to forestry laws, rules and
the regional office where the operations are situated. regulations: Provided, That if the land covered by the
Failure to report the same without justifiable reason mining area is already covered by existing timber
shall be a cause for the imposition of administrative concessions, the volume of timber needed and the
sanctions prescribed in the rules and regulations manner of cutting and removal thereof shall be
implementing this Act. determined by the mines regional director, upon
consultation with the contractor, the timber
Sec. 69 Environmental Protection. Every contractor concessionaire/permittee and the Forest
shall undertake an environmental protection and Management Bureau of the Department: Provided,
enhancement program covering the period of the further, That in case of disagreement between the
mineral agreement or permit. Such environmental contractor and the timber concessionaire, the matter
program shall be incorporated in the work program shall be submitted to the Secretary whose decision
which the contractor or permittee shall submit as an shall be final. The contractor shall perform
accompanying document to the application for a reforestation work within his mining area in
mineral agreement or permit. The work program accordance with forestry laws, rules and regulations.
shall include not only plans relative to mining
operations but also to rehabilitation, regeneration, Sec. 73 Water Rights. A contractor shall have water
revegetation and reforestation of mineralized areas, rights for mining operations upon approval of
slope stabilization of mined-out and tailings covered application with the appropriate government agency
areas, aquaculture, watershed development and in accordance with existing water laws, rules and
water conservation; and socioeconomic regulations promulgated thereunder: Provided, That
development. water rights already granted or vested through long
use, recognized and acknowledged by local customs,
Sec. 70 Environmental Impact Assessment (EIA). laws, and decisions of courts shall not thereby be
Except during the exploration period of a mineral impaired: Provided further, That the Government
agreement or financial or technical assistance reserves the right to regulate water rights and the
agreement or an exploration permit, an reasonable and equitable distribution of water supply
environmental clearance certificate shall be required so as to prevent the monopoly of the use thereof.
based on an environmental impact assessment and
procedures under the Philippine Environmental Sec. 74 Right to Possess Explosives. A contractor/
Impact Assessment System including Sections 26 exploration permittee shall have the right to possess
and 27 of the Local Government Code of 1991 which and use explosives within his contract/permit area as
require national government agencies to maintain may be necessary for his mining operations upon
ecological balance, and prior consultation with the approval of an application with the appropriate
government agency in accordance with existing laws, (b) Disputes involving mineral agreements or
rules and regulations promulgated thereunder: permits;
Provided, That the Government reserves the right to
regulate and control the explosive accessories to (c) Disputes involving surface owners, occupants and
ensure safe mining operations. claimholders/concessionaires; and
Sec. 75 Easement Rights. When mining areas are so (d) Disputes pending before the Bureau and the
situated that for purposes of more convenient mining Department at the date of the effectivity of this Act.
operations it is necessary to build, construct or install
on the mining areas or lands owned, occupied or Sec. 78 Appellate Jurisdiction. The decision or order
leased by other persons, such infrastructure as of the panel of arbitrators may be appealed by the
roads, railroads, mills, waste dump sites, tailings party not satisfied thereto to the mines Adjudication
ponds, warehouses, staging or storage areas and Board within fifteen (15) days from receipt thereof
port facilities, tramways, runways, airports, electric which must decide the case within thirty (30) days
transmission, telephone or telegraph lines, dams and from submission thereof for decision.
their normal flood and catchment areas, sites for
water wells, ditches, canals, new river beds, Sec. 79 Mines Adjudication Board. The Mines
pipelines, flumes, cuts, shafts, tunnels, or mills, the Adjudication Board shall be composed of three (3)
contractor, upon payment of just compensation, shall members. The Secretary shall be the chairman with
be entitled to enter and occupy said mining areas or the Director of the Mines and Geosciences Bureau
lands. and the Undersecretary for Operations of the
Department as member thereof. The Board shall
Sec. 76 Entry into Private Lands and Concession have the following powers and functions:
Areas. Subject to prior notification, holders of mining
rights shall not be prevented from entry into private (a) To promulgate rules and regulations governing
lands and concession areas by surface owners, the hearing and disposition of cases before it, as well
occupants, or concessionaires when conducting as those pertaining to its internal functions, and such
mining operations therein: Provided, That any rules and regulations as may be necessary to carry
damage done to the property of the surface owner, out its functions;
occupant, or concessionaire as a consequence of
such operations shall be properly compensated as (b) To administer oaths, summon the parties to a
may be provided for in the implementing rules and controversy, issue subpoenas requiring the
regulations: Provided, further, That to guarantee attendance and testimony of witnesses or the
such compensation, the person authorized to production of such books, paper, contracts, records,
conduct mining operation shall, prior thereto, post a statement of accounts, agreements, and other
bond with the regional director based on the type of documents as may be material to a just
properties, the prevailing prices in and around the determination of the matter under investigation, and
area where the mining operations are to be to testify in any investigation or hearing conducted in
conducted, with surety or sureties satisfactory to the pursuance of this Act;
regional director.
(c) To conduct hearings on all matters within its
CHAPTER XIII jurisdiction, proceed to hear and determine the
SETTLEMENT OF CONFLICTS disputes in the absence of any party thereto who has
been summoned or served with notice to appear,
Sec. 77 Panel of Arbitrators. There shall be a panel of conduct its proceedings or any part thereof in public
arbitraters in the regional office of the Department or in private, adjourn its hearings at any time and
composed of three (3) members, two (2) of whom place, refer technical matters or accounts to an
must be members of the Philippine Bar in good expert and to accept his report as evidence after
standing and one licensed mining engineer or a hearing of the parties upon due notice, direct parties
professional in a related field, and duly designated by to be joined in or excluded from the proceedings,
the Secretary as recommended by the Mines and correct, amend, or waive any error, defect or
Geosciences Bureau Director. Those designated as irregularity, whether in substance or in form, give all
members of the panel shall serve as such in addition such directions at it may deem necessary or
to their work in the Department without receiving expedient in the determination of the dispute before
any additional compensation. As much as it and dismiss the mining dispute as part thereof,
practicable, said members shall come from the where it is trivial or where further proceedings by the
different bureaus of the Department in the region. Board are not necessary or desirable;
The presiding officer shall be on a yearly basis. The
members of the panel shall perform their duties and (1) to hold any person in contempt, directly or
obligations in hearing and deciding cases until their indirectly, and impose appropriate penalties therefor;
designation is withdrawn or revoked by the and
Secretary. Within thirty (30) working days, after the
submission of the case by the parties for decision, (2) To enjoin any or all acts involving or arising from
the panel shall have exclusive and original any case pending before it which, if not restrained
jurisdiction to hear and decide on the following: forthwith, may cause grave or irreparable damage to
any of the parties to the case or seriously affect
(a) Disputes involving rights to mining areas; social and economic stability.
In any proceeding before the Board, the rules of 1991. In case the development and utilization of
evidence prevailing in courts of law or equity shall mineral resources is undertaken by a government-
not be controlling and it is the spirit and intention of owned or controlled corporation, the sharing and
this Act that shall govern. The Board shall use every allocation shall be in accordance with Sections 291
and all reasonable means to ascertain the facts in and 292 of the said Code.
each case speedily and objectively and without
regard to technicalities of law or procedure, all in the CHAPTER XV
interest of due process. In any proceeding before the TAXES AND FEES
Board, the parties may be represented by legal
counsel. the findings of fact of the Board shall be Sec. 83 Income Taxes. After the lapse of the income
conclusive and binding on the parties and its decision tax holiday as provided for in the Omnibus
or order shall be final and executory. Investments Code, the contractor shall be liable to
pay income tax as provided in the National Internal
A petition for review by certiorari and question of law Revenue Code, as amended.
may be filed by the aggrieved party with the
Supreme Court within thirty (30) days from receipt of Sec. 84 Excise Tax on Mineral Products. The
the order or decision of the Board. contractor shall be liable to pay the excise tax on
mineral products as provided for under Section 151
CHAPTER XIV of the National Internal Revenue Code: Provided,
GOVERNMENT SHARE however, That with respect to a mineral production
sharing agreement, the excise tax on mineral
Sec. 80 Government Share in Mineral Production products shall be the government share under said
Sharing Agreement. The total government share in a agreement.
mineral production sharing agreement shall be the
excise tax on mineral products as provided in Sec. 85 Mine Wastes and Tailings Fees. A semi-
Republic Act No. 7729, amending Section 151(a) of annual fee to be known as mine wastes and tailings
the National Internal Revenue Code, as amended. fee is hereby imposed on all operating mining
companies in accordance with the implementing
Sec. 81 Government Share in Other Mineral rules and regulations. The mine wastes and tailings
Agreements. The share of the Government in co- fee shall accrue to a reserve fund to be used
production and joint-venture agreements shall be exclusively for payment for damages to:
negotiated by the Government and the contractor
taking into consideration the: (a) capital investment (a) Lives and personal safety;
of the project, (b) risks involved, (c) contribution of (b) Lands, agricultural crops and forest products,
the project to the economy, and (d) other factors that marine life and aquatic resources, cultural resources;
will provide for a fair and equitable sharing between and
the Government and the contractor. The Government (c) Infrastructure and the revegetation and
shall also be entitled to compensations for its other rehabilitation of silted farm lands and other areas
contributions which shall be agreed upon by the devoted to agriculture and fishing caused by mining
parties, and shall consist, among other things, the pollution.
contractor's income tax, excise tax, special
allowance, withholding tax due from the contractor's This is in addition to the suspension or closure of the
foreign stockholders arising from dividend or interest activities of the contractor at any time and the penal
payments to the said foreign stockholders, in case of sanctions imposed upon the same.
a foreign national, and all such other taxes, duties
and fees as provided for under existing laws. The Secretary is authorized to increase mine wastes
and tailings fees, when public interest so requires,
The Government share in financial or technical upon the recommendation of the Director.
assistance agreement shall consist of, among other
things, the contractor's corporate income tax, excise Sec. 86 Occupation Fees. There shall be collected
tax, special allowance, withholding tax due from the from any holder of a mineral agreement, financial or
contractor's foreign stockholders arising from technical assistance agreement or exploration permit
dividend or interest payments to the said foreign on public or private lands, an annual occupation fee
stockholder in case of a foreign national and all such in accordance with the following schedule;
other taxes, duties and fees as provided for under
existing laws. (a) For exploration permit - Five pesos (P5.00) per
hectare or fraction thereof per annum;
The collection of government share in financial or
technical assistance agreement shall commence (b) For mineral agreements and financial or technical
after the financial or technical assistance agreement assistance agreements - Fifty pesos (P50.00) per
contractor has fully recovered its pre-operating hectare or fraction thereof per annum; and
expenses, exploration, and development
expenditures, inclusive. (c) For mineral reservation - One hundred pesos
(P100.00) per hectare or fraction thereof per annum.
Sec. 82 Allocation of Government Share. The
Government share as referred to in the preceding The Secretary is authorized to increase the
sections shall be shared and allocated in accordance occupation fees provided herein when the public
with Sections 290 and 292 of Republic Act No. 7160 interest so requires, upon recommendation of the
otherwise known as the Local Government Code of Bureau Director.
Sec. 93 Income Tax-Accelerated Depreciation. Fixed
Sec. 87 Manner of payment of Fees. The fees shall be assets may be depreciated as follows:
paid on the date the mining agreement is registered
with the appropriate office and on the same date (a) To the extent of not more than twice as fast as
every year thereafter. It shall be paid to the treasurer the normal rate of depreciation or depreciated at
of the municipality or city where the onshore mining normal rate of depreciation if the expected life is ten
areas are located, or to the Director in case of (10) years or less; or
offshore mining areas. For this purpose, the
appropriate officer shall submit to the treasurer of (b) Depreciated over any number of years between
the municipality or city where the onshore mining five (5) years and the expected life if the latter is
area is located, a complete list of all onshore mining more than ten (10) years, and the depreciation
rights registered with his office, indicating therein the thereon allowed as deduction from taxable income:
names of the holders, area in hectares, location, and Provided, That the contractor notifies the Bureau of
date registered. If the fee is not paid on the date Internal Revenue at the beginning of the depreciation
specified, it shall be increased by twenty-five per period which depreciation rate allowed by this
centum (25%). section will be used.
Sec. 88 Allocation of Occupation Fees. Thirty per In computing for taxable income, unless otherwise
centum (30%) of all occupational fees collected from provided in this Act, the contractor may, at his
holders of mining rights in onshore mining areas shall option, deduct exploration and development
accrue to the province and seventy per centum expenditures accumulated at cost as of the date of
(70%) to the municipality in which the onshore the prospecting or exploration and development
mining areas are located. In a chartered city, the full expenditures paid or incurred during the taxable
amount shall accrue to the city concerned. year: Provided, That the total amount deductible for
exploration and development expenditures shall not
Sec. 89 Filing Fees and Other Charges. The Secretary exceed twenty-five per centum (25%) of the net
is authorized to charge reasonable filing fees and income from mining operations. The actual
other charges as he may prescribe in accordance exploration and development expenditures minus the
with the implementing rules and regulations. twenty-five per centum (25%) net income from
mining shall be carried forward to the succeeding
CHAPTER XVI years until fully deducted.
INCENTIVES
Net income from mining operation is defined as gross
Sec. 90 Incentives. The contractors in mineral income from operations less allowable deductions
agreements, and financial or technical assistance which are necessary or related to mining operations.
agreements shall be entitled to the applicable fiscal Allowable deductions shall include mining, milling
and non-fiscal incentives as provided for under and marketing expenses, depreciation or properties
Executive Order No. 226, otherwise known as the directly used in the mining operations. This
Omnibus Investments Code of 1987: Provided, That paragraph shall not apply to expenditures for the
holders of exploration permits may register with the acquisition or improvement of property of a
Board of Investments and be entitled to the fiscal character which is subject to the allowances for
incentives granted under the said Code for the depreciation.
duration of the permits or extensions thereof:
Provided, further, That mining activities shall always Sec. 94 Investment Guarantees. The contractor shall
be included in the investment priorities plan. be entitled to the basic rights and guarantees
provided in
Sec. 91 Incentives for Pollution Control Devices. the Constitution and such other rights recognized by
Pollution control devices acquired, constructed or the government as enumerated hereunder.
installed by contractors shall not be considered as
improvements on the land or building where they are (a) Repatriation of investments. The right to
placed, and shall not be subject to real property and repatriate the entire proceeds of the liquidation of
other taxes or assessments: Provided, however, That the foreign investment in the currency in which the
payment of mine wastes and tailings fees is not investment was originally made and at the exchange
exempted. rate prevailing at the time of repatriation.
Sec. 92 Income Tax-Carry Forward of Losses. A net (b) Remittance of earnings. The right to remit
operating loss without the benefit of incentives earnings from the investment in the currency in
incurred in any of the first ten (10) years of which the foreign investment was originally made at
operations may be carried over as a deduction from the exchange rate prevailing at the time of
taxable income for the next five (5) years remittance.
immediately following the year of such loss. The
entire amount of the loss shall be carried over to the (c) Foreign loans and contracts. The right to remit at
first of the five (5) taxable years following the loss, the exchange rate prevailing at the time of
and any portion of such loss which exceeds the remittance such sums as may be necessary to meet
taxable income of such first year shall be deducted in the payments of interest and principal on foreign
like manner from the taxable income of the next loans and foreign obligations arising from financial or
remaining four (4) years. technical assistance contracts.
(d) Freedom from expropriation. The right to be free alter, change or affect substantially the facts set
from expropriation by the government of the forth in said statements may cause the revocation
property represented by investments or loans, or of and termination of the exploration permit, mining
the property of the enterprise except for public use agreement and financial or technical assistance
or in the interest of national welfare or defense and agreement.
upon payment of just compensation. In such cases,
foreign investors or enterprises shall have the right CHAPTER XVIII
to remit sums received as compensation for the ORGANIZATIONAL AND INSTITUTIONAL
expropriated property in the currency in which the ARRANGEMENT
investment was originally made and at the exchange
rate prevailing at the time of remittance. Sec. 100 From Staff Bureau to Line Bureau. The
Mines and Geosciences Bureau is hereby
(e) Requisition of investment. The right to be free transformed into a line bureau consistent with
from requisition of the property represented by the Section 9 of this Act: Provided, That under the Mines
investment or of the property of the enterprises and Geosciences Bureau shall be the necessary
except in case of war or national emergency and only mines regional, district and other pertinent offices -
for the duration thereof. Just compensation shall be the number and specific functions of which shall be
determined and paid either at the time or provided in the implementing rules and regulations
immediately after cessation of the state of war or of this Act.
national emergency. Payments received as
compensation for the requisitioned property may be CHAPTER XIX
remitted in the currency in which the investments PENAL PROVISIONS
were originally made and at the exchange rate
prevailing at the time of remittance. Sec. 101 False Statements. Any person who
knowingly presents any false application, declaration,
(f) Confidentiality. Any confidential information or evidence to the Government or publishes or
supplied by the contractor pursuant to this Act and causes to be published any prospectus or other
its implementing rules and regulations shall be information containing any false statement relating
treated as such by the department and the to mines, mining operations or mineral agreements,
Government, and during the term of the project to financial or technical assistance agreements and
which it relates. permits shall, upon conviction, be penalized by a fine
of not exceeding Ten Thousand Pesos (P10,000.00).
CHAPTER XVII
GROUND FOR CANCELLATION, REVOCATION, Sec. 102 Illegal Exploration. Any person undertaking
AND TERMINATION exploration work without the necessary exploration
permit shall, upon conviction, be penalized by a fine
Sec. 95 Late or Non-filing of Requirements. Failure of of not exceeding Fifty thousand pesos (P50,000.00).
the permittee or contractor to comply with any of the
requirements provided in this Act or in its Sec. 103 Theft of Minerals. Any person extracting
implementing rules and regulations, without a valid minerals and disposing the same without a mining
reason, shall be sufficient ground from the agreement, lease, permit, license, or steals minerals
suspension of any permit or agreement provided or ores or the products thereof from mines or mills or
under this Act. processing plants shall, upon conviction, be
imprisoned from six (6) months to six (6) years or
Sec. 96 Violation of the Terms and Conditions of pay a fine from Ten thousand pesos (P10,000.00) to
Permits or Agreements. Violations of the terms and Twenty thousand pesos (P20,000.00), or both, at the
conditions of the permits or agreements shall be a discretion of the appropriate court. In addition, he
sufficient ground for cancellation of the same. shall be liable to pay damages and compensation for
the minerals removed, extracted, and disposed of. In
Sec. 97 Non-payment of taxes and Fees. Failure to the case of associations, partnerships, or
pay the taxes and fees due the Government for two corporations, the president and each of the directors
(2) consecutive years shall cause the cancellation of thereof shall be responsible for the acts committed
the exploration permit, mineral agreement, financial by such association, corporation, or partnership.
or technical assistance agreement and other
agreements and the re-opening of the area subject Sec. 104 Destruction of Mining Structures. Any
thereof to new applicants. person who willfully destroys or damages structures
in or on the mining area or on the mill sites shall,
Sec. 98 Suspension or Cancellation of Tax Incentives upon conviction, be imprisoned for a period not to
and Credits. Failure to abide by the terms and exceed five (5) years and shall, in addition, pay
conditions of tax incentives and credits shall cause compensation for the damages which may have been
the suspension or cancellation of said incentives and caused thereby.
credits.
Sec. 105 Mines Arson. Any person who willfully sets
Sec. 99 Falsehood or Omission of Facts in the fire to any mineral stockpile, mine or workings,
Statement. All statements made in the exploration fittings or a mine, shall be guilty of arson and shall
permit, mining agreement and financial or technical be punished, upon conviction, by the appropriate
assistance shall be considered as conditions and court in accordance with the provisions of the
essential parts thereof and any falsehood in said Revised Penal Code and shall, in addition, pay
statements or omission of facts therein which may compensation for the damages caused thereby.
(a) "Mineralized areas" refer to areas with naturally
Sec. 106 Willful Damage to a Mine. Any person who occurring mineral deposits of gold, silver, chromite,
willfully damages a mine, unlawfully causes water to kaolin, silica, marble, gravel, clay and like mineral
run into a mine, or obstructs any shaft or passage to resources;
a mine, or renders useless, damages or destroys any
machine, appliance, apparatus; rope, chain, tackle,
or any other things used in a mine, shall be (b) "Small-scale mining" refers to mining activities
punished, upon conviction, by the appropriate court, which rely heavily on manual labor using simple
by imprisonment not exceeding a period of five (5) implement and methods and do not use explosives
years and shall, in addition, pay compensation for or heavy mining equipment;
the damages caused thereby.
Sec. 107 Illegal Obstruction to Permittees or (c) "Small-scale miners" refer to Filipino citizens who,
Contractors. Any person who, without justifiable individually or in the company of other Filipino
cause, prevents or obstructs the holder of any citizens, voluntarily form a cooperative duly licensed
permit, agreement or lease from undertaking his by the Department of Environment and Natural
mining operations shall be punished, upon conviction Resources to engage, under the terms and conditions
by the appropriate court, by a fine not exceeding of a contract, in the extraction or removal of minerals
Five thousand pesos (P5,000.00) or imprisonment not or ore-bearing materials from the ground;
exceeding one (1) year, or both, at the discretion of
the court. (d) "Small-scale mining contract" refers to co-
production, joint venture or mineral production
Sec. 108 Violation of the Terms and Conditions of the sharing agreement between the State and a small-
Environmental Compliance Certificate. Any person scale mining contractor for the small-scale utilization
who willfully violates or grossly neglects to abide by of a plot of mineral land;
the terms and conditions of the environmental
compliance certificate issued to said person and
which causes environmental damage through (e) "Small-scale mining contractor" refers to an
pollution shall suffer the penalty of imprisonment of individual or a cooperative of small-scale miners,
six (6) months to six (6) years or a fine of Fifty registered with the Securities and Exchange
thousand pesos (P50,000.00) to Two Hundered Commission or other appropriate government
Thousand Pesos (P200,000.00), or both at the agency, which has entered into an agreement with
discretion of the court. the State for the small-scale utilization of a plot of
mineral land within a people's small-scale mining
Sec. 109 Illegal Obstruction to Government Officials. area;
Any person who illegally prevents or obstructs the
Secretary, the Director or any of their (f) "Active mining area" refers to areas under actual
representatives in the performance of their duties exploration, development, exploitation or commercial
under the provisions of this Act and of the production as determined by the Secretary after the
regulations promulgated hereunder shall be necessary field investigation or verification including
punished, upon conviction, by the appropriate court, contiguous and geologically related areas belonging
by a fine not exceeding Five thousand pesos to the same claimowner and/or under contract with
(P5,000.00) or by imprisonment not exceeding one an operator, but in no case to exceed the maximum
(1) year, or both, at the discretion of the court. area allowed by law;
Sec. 110 Other Violations. Any other violation of this
Act and its implementing rules and regulations shall (g) "Existing mining right" refers to perfected and
constitute an offense punishable with a fine not subsisting claim, lease, license or permit covering a
exceeding five thousand pesos (P5,000.00). mineralized area prior to its declaration as a people's
small-scale mining area;
Sec. 111 Fines. The Secretary is authorized to charge
fines for late or nonsubmission of reports in (h) "Claimowner" refers to a holder of an existing
accordance with the implementing rules and mining right;
regulations of this Act
Sec. 5. Declaration of People's Small-scale Mining Applications for a contract shall be subject to a
Areas. — The Board is hereby authorized to declare reasonable fee to be paid to the Department of
and set aside people's small-scale mining areas in Environment and Natural Resources regional office
sites onshore suitable for small-scale mining, subject having jurisdiction over the area.
to review by the Secretary, immediately giving
priority to areas already occupied and actively mined Sec. 10. Extent of Contract Area. — The Board shall
by small-scale miners before August 1, 1987: determine the reasonable size and shape of the
Provided, That such areas are not considered as contract area following the meridional block system
active mining areas: Provided, further, That the established under Presidential Decree No. 463, as
minerals found therein are technically and amended, otherwise known as the Mineral Resources
commercially suitable for small-scale mining Development Decree of 1974, but in no case shall
activities: Provided, finally, That the areas are not the area exceed twenty hectares (20 has.) per
covered by existing forest rights or reservations and contractor and the depth or length of the tunnel or
have not been declared as tourist or marine adit not exceeding that recommended by the
director taking into account the following (f) File under oath at the end of each month a
circumstances: detailed production and financial report to the Board;
and
(a) Size of membership and capitalization of the
cooperative; (g) Assume responsibility for the safety of persons
(b) Size of mineralized area; working in the mines.
(c) Quantity of mineral deposits; Sec. 14. Rights of Claimowners. — In case a site
declared and set aside as a people's-scale mining
area is covered by an existing mining right, the
(d) Safety of miners;
claimowner and the small-scale miners therein are
encouraged to enter into a voluntary and acceptable
(e) Environmental impact and other considerations; contractual agreement with respect to the small-
and scale utilization of the mineral values from the area
under claim. In case of disagreement, the
claimowner shall be entitled to the following rights
(f) Other related circumstances.
and privileges:
(a) Exemption from the performance of annual work
Sec. 11. Easement Rights. — Upon the declaration of obligations and payment of occupation fees, rental,
a people's small-scale mining area, the director, in and real property taxes;
consultation with the operator, claimowner,
landowner or lessor of an affected area, shall (b) Subject to the approval of the Board, free access
determine the right of the small scale miners to to the contract area to conduct metallurgical tests,
existing facilities such as mining and logging roads, explorations and other activities, provided such
private roads, port and communication facilities, activities do not unduly interfere with the operations
processing plants which are necessary for the of the small-scale miners; and
effective implementation of the People's Small-scale
Mining Program, subject to payment of reasonable
(c) Royalty equivalent to one and one half percent (1
fees to the operator, claimowner, landowner or
1/2%) of the gross value of the metallic mineral
lessor.
output or one percent (1%) of the gross value of the
nonmetallic mineral output to be paid to the
Sec. 12. Rights Under a People's Small-scale Mining
claimowner: Provided, That such rights and privileges
Contract. — A people's small-scale mining contract
shall be available only if he is not delinquent and
entitles the small-scale mining contractor to the right
other performance of his annual work obligations and
to mine, extract and dispose of mineral ores for
other requirements for the last two (2) years prior to
commercial purposes. In no case shall a small-scale
the effectivity of this Act.
mining contract be subcontracted, assigned or
otherwise transferred.
Sec. 15. Rights of Private Landowners. — The private
landowner or lawful possessor shall be notified of any
Sec. 13. Terms and Conditions of the Contract. — A
plan or petition to declare his land as a people's
contract shall have a term of two (2) years,
small-scale mining area. Said landowner may oppose
renewable subject to verification by the Board for like
such plan or petition in an appropriate proceeding
periods as long as the contractor complies with the
and hearing conducted before the Board.
provisions set forth in this Act, and confers upon the
contractor the right to mine within the contract area:
If a private land is declared as a people's small-scale
Provided, That the holder of a small-scale mining
mining area, the owner and the small-scale mining
contract shall have the following duties and
contractors are encouraged to enter into a voluntary
obligations:
and acceptable contractual agreement for the small-
scale utilization of the mineral values from the
(a) Undertake mining activities only in accordance private land: Provided, That the owner shall in all
with a mining plan duly approved by the Board; cases be entitled to the payment of actual damages
(b) Abide by the Mines and Geosciences Bureau and which he may suffer as a result of such declaration:
the small-scale Mining Safety Rules and Regulations; Provided, further, That royalties paid to the owner
shall in no case exceed one percent (1%) of the gross
value of the minerals recovered as royalty.
(c) Comply with his obligations to the holder of an
existing mining right;
Sec. 16. Ownership of Mill Tailings. — The small-
scale mining contractor shall be the owner of all mill
(d) Pay all taxes, royalties or government production
tailings produced from the contract area. He may sell
share as are now or may hereafter be provided by
the tailings or have them processed in any custom
law;
mill in the area: Provided, That, if the small-scale
mining contractor decide to sell its mill tailings, the
(e) Comply with pertinent rules and regulations on claimowner shall have a preemptive right to
environmental protection and conservation, purchase said mill tailings at the prevailing market
particularly those on tree-cutting mineral-processing price.
and pollution control;
Sec. 17. Sale of Gold. — All gold produced by small- site by the contractor, shall constitute a ground for
scale miners in any mineral area shall be sold to the the cancellation of the contracts and the ejectment
Central Bank, or its duly authorized representatives, from the people's small-scale mining area of the
which shall buy it at prices competitive with those contractor. In addition, the Secretary may impose
prevailing in the world market regardless of volume fines against the violator in an amount of not less
or weight. than Twenty thousand pesos (P20,000.00) and not
more than One hundred thousand pesos
(P100,000.00). Nonpayment of the fine imposed shall
The Central Bank shall establish as many buying
render the small-scale mining contractor ineligible for
stations in gold-rush areas to fully service the
other small-scale mining contracts.
requirements of the small-scale minerals thereat.
Sec. 20. People's Small-scale Mining Protection (d) Formulate and implement rules and regulations
Fund. — There is hereby created a People's Small- related to small-scale mining;
scale Mining Protection Fund which shall be fifteen
percent (15%) of the national government's share
(e) Settle disputes, conflicts or litigations over
due the Government which shall be used primarily
conflicting claims within a people's small-scale
for information dissemination and training of small-
mining area, an area that is declared a small-mining;
scale miners on safety, health and environmental
and
protection, and the establishment of mine rescue and
recovery teams including the procurement of rescue
equipment necessary in cases of emergencies such (f) Perform such other functions as may be necessary
as landslides, tunnel collapse, or the like. to achieve the goals and objectives of this Act.
The fund shall also be made available to address the Sec. 25. Composition of the Provincial/City Mining
needs of the small-scale miners brought about by Regulatory Board. — The Board shall be composed of
accidents and/or fortuitous events. the Department of Environment and Natural
Resources representative as Chairman; and the
representative of the governor or city mayor, as the
Sec. 21. Rescission of Contracts and Administrative
representative of the governor or city mayor, as the
Fines. — The noncompliance with the terms and
case may be, one (1) small scale mining
conditions of the contract or violation of the rules
representative, one (1) big-scale mining
and regulations issued by the Secretary pursuant to
representative, and the representative from a
this Act, as well as the abandonment of the mining
nongovernment organization who shall come from an mineral resources in contravention of Article XII
environmental group, as members. Section 2 paragraphs 2 and 4 of the Charter.
The representatives from the private sector shall be In January 2001, MMC – a publicly listed Australian
nominated by their respective organizations and mining and exploration company – sold its whole
appointed by the Department regional director. The stake in WMCP to Sagittarius Mines, 60% of which is
Department shall provide the staff support to the owned by Filipinos while 40% of which is owned by
Board. Indophil Resources, an Australian company. DENR
approved the transfer and registration of the FTAA in
Sagittarius’ name but Lepanto Consolidated assailed
Sec. 26. Administrative Supervision over the
the same. The latter case is still pending before the
People's Small-scale Mining Program. — The
Court of Appeals.
Secretary through his representative shall exercise
direct supervision and control over the program and
EO 279, issued by former President Aquino on July
activities of the small-scale miners within the
25, 1987, authorizes the DENR to accept, consider
people's small-scale mining area.
and evaluate proposals from foreign owned
corporations or foreign investors for contracts or
The Secretary shall within ninety (90) days from the agreements involving either technical or financial
effectivity of this Act promulgate rules and assistance for large scale exploration, development
regulations to effectively implement the provisions of and utilization of minerals which upon appropriate
the same. Priority shall be given to such rules and recommendation of the (DENR) Secretary, the
regulations that will ensure the least disruption in the president may execute with foreign proponent.
operations of the small-scale miners. WMCP likewise contended that the annulment of the
FTAA would violate a treaty between the Philippines
and Australia which provides for the protection of
Sec. 27. Penal Sanctions. — Violations of the
Australian investments.
provisions of this Act or of the rules and regulations
issued pursuant hereto shall be penalized with
ISSUES:
imprisonment of not less than six (6) months nor
1. Whether or not the Philippine Mining Act is
more than six (6) years and shall include the
unconstitutional for allowing fully foreign-
confiscation and seizure of equipment, tools and
owned corporations to exploit Philippine
instruments.
mineral resources
(b) Land classification and survey shall be (j) Marine parks refers to any off-shore area inhabited
systematized and hastened; by rare and unique species of marine flora and fauna.
(c) The establishment of wood-processing plants (k) Seashore park refers to any public shore area
shall be encouraged and rationalized; and delimited for outdoor recreation, sports fishing, water
skiing and related healthful activities.
(d) The protection, development and rehabilitation of
forest lands shall be emphasized so as to ensure (l) Watershed reservation is a forest land reservation
their continuity in productive condition. established to protect or improve the conditions of
the water yield thereof or reduce sedimentation.
Section 3. Definitions.
(m) Watershed is a land area drained by a stream or
fixed body of water and its tributaries having a
(a) Public forest is the mass of lands of the public
common outlet for surface run-off.
domain which has not been the subject of the
present system of classification for the determination
of which lands are needed for forest purposes and (n) Critical watershed is a drainage area of a river
which are not. system supporting existing and proposed hydro-
electric power and irrigation works needing
immediate rehabilitation as it is being subjected to a
(b) Permanent forest or forest reserves refer to those
fast denudation causing accelerated erosion and
lands of the public domain which have been the
destructive floods. It is closed from logging until it is
subject of the present system of classification and
fully rehabilitated.
determined to be needed for forest purposes.
Section 6. Director and Assistant Director and their There shall be created at least eleven regional
qualifications. The Bureau shall be headed by a offices. In each region, there shall be as many forest
Director, who shall be assisted by one or more districts as may be necessary, in accordance with the
Assistant Directors. The Director and Assistant extent of forest area, established work loads, need
Directors shall be appointed by the President. for forest protection, fire prevention and other
factors, the provisions of any law to the contrary
notwithstanding: Provided, That the boundaries of
No person shall be appointed Director or Assistant
such districts shall follow, whenever possible, natural
Director of the Bureau unless he is a natural born
boundaries of watersheds under the river-basin
citizen of the Philippines, at least 30 years of age, a
concept of management.
holder of at least a Bachelor's Degree in Forestry or
its equivalent, and a registered forester.
Section 11. Manpower Development. The Bureau
shall establish and operate an in-service training
Section 7. Supervision and Control. The Bureau shall
center for the purpose of upgrading and training its
be directly under the control and supervision of the
personnel and new employees.
Secretary of the Department of Natural Resources,
hereinafter referred to as the Department Head.
The Bureau shall also set aside adequate funds to
enable personnel to obtain special education and
Section 8. Review. All actions and decisions of the
training in local or foreign colleges or institutions.
Director are subject to review, motu propio or upon
appeal of any person aggrieved thereby, by the
Department Head whose decision shall be final and Section 12. Performance Evaluation. The Bureau
executory after the lapse of thirty (30) days from shall devise a system, to be approved by the
receipt by the aggrieved party of said decision, Department Head, to evaluate the performance of its
unless appealed to the President in accordance with employees. The system shall measure
the Executive Order No. 19, series of 1966. The accomplishment in quantity and quality of
Decision of the Department Head may not be performance as related to the funded program of
reviewed by the courts except through a special civil work assigned to each organizational unit. There
action for certiorari or prohibition. shall be included a system of periodic inspection of
district offices by the regional offices and the
regional and district offices by the Central Office in
Section 9. Rules and Regulations. The Department
both functional fields and in the overall assessment
Head, upon the recommendation of the Director of
of how each administrative unit has implemented the
Forest Development, shall promulgate the rules and
laws, regulations, policies, programs, and practices
regulations necessary to implement effectively the
relevant to such unit. The evaluation system shall
provisions of this Code.
provide the information necessary for annual
progress reports and determination of employee
Section 10. Creation of Functional Divisions, and training civil service awards and transfer or
Regional and District Offices. All positions in the disciplinary action.
merged agencies are considered vacant. Present
occupants may be appointed in accordance with a
CHAPTER II Section 16. Areas needed for forest purposes. The
CLASSIFICATION AND SURVEY following lands, even if they are below eighteen per
cent (18%) in slope, are needed for forest purposes,
and may not, therefore, be classified as alienable and
Section 13. System of Land Classification. The
disposable land, to wit:
Department Head shall study, devise, determine and
prescribe the criteria, guidelines and methods for the
proper and accurate classification and survey of all 1. Areas less than 250 hectares which are
lands of the public domain into agricultural, industrial far from, or are not contiguous with, any
or commercial, residential, resettlement, mineral, certified alienable and disposable land;
timber or forest, and grazing lands, and into such
other classes as now or may hereafter be provided
2. Isolated patches of forest of at least five
by law, rules and regulations.
(5) hectares with rocky terrain, or which
protect a spring for communal use;
In the meantime, the Department Head shall simplify
through inter-bureau action the present system of
3. Areas which have already been
determining which of the unclassified lands of the
reforested;
public domain are needed for forest purposes and
declare them as permanent forest to form part of the
forest reserves. He shall decree those classified and 4. Areas within forest concessions which are
determined not to be needed for forest purposes as timbered or have good residual stocking to
alienable and disposable lands, the administrative support an existing, or approved to be
jurisdiction and management of which shall be established, wood processing plant;
transferred to the Bureau of Lands: Provided, That
mangrove and other swamps not needed for shore
5. Ridge tops and plateaus regardless of
protection and suitable for fishpond purposes shall
size found within, or surrounded wholly or
be released to, and be placed under the
partly by, forest lands where headwaters
administrative jurisdiction and management of, the
emanate;
Bureau of Fisheries and Aquatic Resources. Those
still to be classified under the Present system shall
continue to remain as part of the public forest. 6. Appropriately located road-rights-or-way;
Section 14. Existing Pasture Leases and Permits in 7. Twenty-meter strips of land along the
Forest Lands. Forest lands which have been the edge of the normal high waterline of rivers
subject of pasture leases and permits shall remain and streams with channels of at least five
classified as forest lands until classified as grazing (5) meters wide;
lands under the criteria, guidelines and methods of
classification to be prescribed by the Department
8. Strips of mangrove or swamplands at
Head: Provided, That the administration,
least twenty (20) meters wide, along
management and disposition of grazing lands shall
shorelines facing oceans, lakes, and other
remain under the Bureau.
bodies of water, and strips of land at least
twenty (20) meters wide facing lakes;
Section 15. Topography. No land of the public
domain eighteen per cent (18%) in slope or over
9. Areas needed for other purposes, such as
shall be classified as alienable and disposable, nor
national parks, national historical sites,
any forest land fifty per cent (50%) in slope or over,
game refuges and wildlife sanctuaries,
as grazing land.
forest station sites, and others of public
interest; and
Lands eighteen per cent (18%) in slope or over which
have already been declared as alienable and
10. Areas previously proclaimed by the
disposable shall be reverted to the classification of
President as forest reserves, national parks,
forest lands by the Department Head, to form part of
game refuge, bird sanctuaries, national
the forest reserves, unless they are already covered
shrines, national historic sites:
by existing titles or approved public land application,
or actually occupied openly, continuously, adversely
and publicly for a period of not less than thirty (30) Provided, That in case an area falling under any of
years as of the effectivity of this Code, where the the foregoing categories shall have been titled in
occupant is qualified for a free patent under the favor of any person, steps shall be taken, if public
Public Land Act: Provided, That said lands, which are interest so requires, to have said title cancelled or
not yet part of a well-established communities, shall amended, or the titled area expropriated.
be kept in a vegetative condition sufficient to prevent
erosion and adverse effects on the lowlands and
Section 17. Establishment of boundaries of forest
streams: Provided, further, That when public interest
lands. All boundaries between permanent forests and
so requires, steps shall be taken to expropriate,
alienable and disposable lands shall be clearly
cancel defective titles, reject public land application,
marked and maintained on the ground, with
or eject occupants thereof.
infrastructure or roads, or concrete monuments at
intervals of not more than five hundred (500) meters
in accordance with established procedures and (a) For dipterocarp forest, selective logging
standards, or any other visible and practicable signs shall be practised.
to insure protection of the forest.
(b) For pine forest, the seed tree system
Section 18. Reservations in forest lands and off- with planting when necessary shall be
shore areas. The President of the Philippines may practised.
establish within any lands of the public domain,
forest reserve and forest reservation for the national
(c) For other types of forest, the silvicultural
park system, for preservation as critical watersheds,
and harvesting system that will be found
or for any other purpose, and modify boundaries of
suitable by research shall be applied.
existing ones. The Department Head may reserve
Meanwhile, a system based on observation
and establish any portion of the public forest or
and practices abroad may be adopted
forest reserve as site or experimental forest for use
initially.
of the Forest Research Institute.
The Department Head may cancel, suspend, or (h) River banks, easements, road rights-of-ways,
phase-out all uneconomical wood-processing plants deltas, swamps, former river beds, and beaches.
Section 34. Industrial Tree Plantations and Tree annual rental shall be one peso (P1.00) per hectare:
Farms. A lease for a period of twenty-five (25) years, Provided, That lessees of areas long denuded as
renewable for another period not exceeding twenty- certified by the Director and approved by the
five (25) years, for the establishment of an industrial Department Head, shall be exempted from the
tree plantation or a tree farm may be granted by the payment of rental for the full term of the lease which
Department Head upon recommendation of the shall not exceed twenty-five (25) years; for the first
Director to any person qualified to develop and five (5) years following the renewal of the lease, the
exploit natural resources, over timber or forest lands annual rental shall be fifty centavos (P0.50) per
of the public domain categorized in Section 33 hectare; and thereafter, the annual rental shall be
hereof, with a minimum area of One Thousand one peso (P1.00) per hectare.
(1,000) hectares for industrial tree plantation and
One Hundred (100) hectares for tree farm; Provided,
(c) The lessee shall pay forest charges on the timber
That the size of the area that may be granted under
and other forest products grown and cut or gathered
each category shall in each case depend upon the
in an industrial tree plantation or tree farm
capacity of the lessee to develop or convert the area
equivalent to six percent (6%) current market value
into productive condition within the term of the
thereof;
lease; Provided, further, That no lease shall be
granted within critical watersheds.
(d) Sale at cost of seedlings and free technical advice
and assistance to persons who will develop their
Scattered areas of less than One Hundred (100)
privately-owned lands into industrial tree plantation
hectares each may be leased for the establishment
or tree farm;
of tree farms to different qualified persons upon a
showing that if developed as an integrated unit these
areas can be economically exploited: Provided, That (e) Exemption from the payment of the percentage
it shall be a condition of the lease that such persons tax levied in Title V of the National Internal Revenue
organize themselves into a cooperative to ensure the Code when the timber and forest products are sold,
orderly management thereof. bartered or exchanged by the lessee whether in their
original state or not;
The lease may be granted under such terms and
conditions as the Department Head may prescribe, (f) The Board of Investments shall, notwithstanding
taking into account, among others, the raw material its nationality requirement on projects involving
needs of forest-based industries and the natural resources, classify industrial tree plantations
maintenance of a wholesome ecological balance. and tree farms as pioneer areas of investment under
its annual priority plan, to be governed by the rules
and regulations of said Board. A lessee of an
Reforestation projects of the Government, or portions
industrial tree plantation or tree farm may either
thereof which, upon field evaluation, are found to be
apply to the Board of Investments for the tax and
more suitable for, or can be better developed as,
other benefits thereunder, or avail of the following
industrial tree plantations or tree farms in terms of
benefits:
benefits to the Government and the general
surrounding area, may be the subject of the lease
under this section. 1. Amounts expended by a lessee in the
development and operation of an industrial tree
plantation or tree farm prior to the time when the
Section 35. Priority. Over any suitable area covered
production state is reached, may, at the option of
by a timber license agreement, or a pasture lease
said lessee, be regarded as ordinary and necessary
agreement or permit, the priority to establish
business expenses or as capital expenditures; and
industrial forest plantation or tree farm shall be given
to the holder thereof.
2. Deduction from an investor's taxable income for
the year, of an annual investment allowance
The priority herein granted must, however, be
equivalent to thirty-three and one-third per cent (33-
availed of within a reasonable period to be
1/3%) of his actual investment during the year in an
determined by the Department Head, otherwise, the
enterprise engaged in industrial tree plantation or
area shall be declared open to any qualified person
tree farm: Provided, That such investment shall not
and consequently segregated from the holder's area.
be withdrawn for a period of at least ten (10) years
from the date of investment: Provided, further, That
Section 36. Incentives. To encourage qualified should the investment be withdrawn within such
persons to engage in industrial tree plantation and/or period, a tax equivalent to double the amount of the
tree farming, the following incentives are granted: total income tax rebate resulting from the
investment allowance shall be payable as a lump
sum in addition to the income tax due from the
(a) Payment of a nominal filing fee of fifty centavos
taxpayer for the year the investment was withdrawn.
(P0.50) per hectare;
In the event that an official of a city or municipal Section 77. Unlawful possession of implements and
government is primarily responsible for detecting devices used by forest officers. Imprisonment for a
and convicting the violator of the provisions of this period of not less than (2) nor more than four (4)
Section, fifty per centum (50%) of the fine collected years and a fine of not less than one thousand pesos
shall accrue to such municipality or city for the (P1,000.00), nor more than ten thousand
development of local parks. (P10,000.00) pesos in addition to the confiscation of
such implements and devices, and the automatic
cancellation of the license agreement, lease, license
Section 72. Destruction of wildlife resources. Any
or permit, if the offender is a holder thereof, shall be
person violating the provisions of Section 55 of this
imposed upon any person who shall, without
Code, or the regulations promulgated thereunder,
authority from the Director or his authorized
shall be fined not less than one hundred (P100.00)
representative, make, manufacture, or has in his
pesos for each such violation and in addition shall be
possession any government marking, hatchet or
denied a permit for a period of three (3) years from
other marking implement, or any marker, poster, or
the date of the violation.
other devices officially used by officers of the Bureau
for the marking or identification of timber or other
Section 73. Survey by unauthorized products, or any duplicate, counterfeit, or imitation
person. Imprisonment for not less than two (2) nor thereof, or make or apply a government mark on
more than four (4) years, in addition to the timber or any other forest products by means of any
confiscation of the implements used in the violation authentic or counterfeit device, or alter, deface, or
of this section including the cancellation of the remove government marks or signs, from trees, logs,
license, if any, shall be imposed upon any person stumps, firewoods or other forest products, or
who shall, without permit to survey from the destroy, deface, remove or disfigure any such mark,
Director, enter any forest lands, whether covered by sign, poster or warning notices set by the Bureau to
a license agreement, lease, license, or permit, or not, designate the boundaries of cutting areas, municipal
and conduct or undertake a survey for whatever or city forest or pasture, classified timber land, forest
purpose. reserve, and areas under the national park system or
to make any false mark or imitation of any mark or
sign herein indicated; Provided, That if the offender
Section 74. Misclassification and survey by
is a corporation, partnership or association, the
government official or employee. Any public officer
officers and directors thereof shall be liable.
or employee who knowingly surveys, classifies, or
recommends the release of forest lands as alienable
and disposable lands contrary to the criteria and Section 78. Payment, collection and remittance of
standards established in this Code, or the rules and forest charges. Any person who fails to pay the
regulations promulgated hereunder, shall, after an amount due and payable under the provisions of this
appropriate administrative proceeding, be dismissed Code, the National Internal Revenue Code, or the
from the service with prejudice to re-employment, rules and regulations promulgated thereunder, shall
and upon conviction by a court of competent be liable to the payment of a surcharge of twenty-
jurisdiction, suffer an imprisonment of not less than five per centum (25%) of the amount due and
one (1) year and a fine of not less than one payable.
thousand, (P1,000.00) pesos. The survey,
classification or release of forest lands shall be null
Any person who fails or refuses to remit to the proper
and void.
authorities said forest charges collectible pursuant to
the provisions of this Code or the National Internal
Section 75. Tax declaration on real Revenue Code, or who delays, obstructs or prevents
property. Imprisonment for a period of not less than the same, or who orders, causes or effects the
two (2) nor more than four (4) years and perpetual transfer or diversion of the funds for purposes other
disqualification from holding an elective or than those specified in this Code, for each such
appointive office, shall be imposed upon any public offense shall, upon conviction, be punished by a fine
officer or employee who shall issue a tax declaration of not exceeding one hundred thousand pesos
on real property without a certification from the (P100,000.00) and/or imprisonment for a period of
Director of Forest Development and the Director of not exceeding six (6) years in the discretion of the
Lands or their duly designated representatives that Court. If the offender is a government official or
the area declared for taxation is alienable and employee, he shall, in addition, be dismissed from
disposable lands, unless the property is titled or has the service with prejudice to reinstatement and with
been occupied and possessed by members of the disqualification from holding any elective or
national cultural minorities prior to July 4, 1955. appointive office.
If the offender is a corporation, partnership or barangay or barrio official, or any qualified person to
association, the officers and directors thereof shall protect the forest and exercise the power or
be liable. authority provided for in the preceding paragraph.
Section 79. Sale of wood products. No person shall Reports and complaints regarding the commission of
sell or offer for sale any log, lumber, plywood or any of the offenses defined in this Chapter, not
other manufactured wood products in the committed in the presence of any forest officer or
international or domestic market unless he complies employee, or any of the deputized officers or
with grading rules and established or to be officials, shall immediately be investigated by the
established by the Government. forest officer assigned in the area where the offense
was allegedly committed, who shall thereupon
receive the evidence supporting the report or
Failure to adhere to the established grading rules
complaint.
and standards, or any act of falsification of the
volume of logs, lumber, or other forest products shall
be a sufficient cause for the suspension of the If there is prima facie evidence to support the
export, sawmill, or other license or permit complaint or report, the investigating forest officer
authorizing the manufacture or sale of such products shall file the necessary complaint with the
for a period of not less than two (2) years. appropriate official authorized by law to conduct a
preliminary investigation of criminal cases and file an
information in Court.
A duly accredited representative of the Bureau shall
certify to the compliance by the licensees with
grading rules. PD No. 1775: AMENDING SECTION EIGHTY OF
PRESIDENTIAL DECREE NUMBERED SEVEN
HUNDRED FIVE, AS AMENDED, OTHERWISE
Every dealer in lumber and other building material
KNOWN AS THE "REVISED FORESTRY CODE
covered by this Code shall issue an invoice for each
OF THE PHILIPPINES."
sale of such material and such invoice shall state
that the kind, standard and size of material sold to
each purchaser in exactly the same as described in
the invoice. Any violation of this Section shall be WHEREAS, it is of common knowledge that only few
sufficient ground for the suspension of the dealer's criminal cases are being filed against violators of the
license for a period of not less than two (2) years forestry laws, rules and regulations because of the
and, in addition thereto, the dealer shall be punished apparent lack of manpower in the prosecuting arm of
for each such offense by a fine of not less than two the Bureau of Forestry Development which
hundred pesos (P200.00) or the total value of the predicament could not be feasibly augmented due to
invoice, whichever is greater. the present economic situation of the country;
Section 80. Arrest; Institution of criminal actions. A WHEREAS, it is of common knowledge that only few
forest officer or employee of the Bureau shall arrest criminal cases are being filed against violators of the
even without warrant any person who has committed forestry laws, rules and regulations because of the
or is committing in his presence any of the offenses apparent lack of manpower in the prosecuting arm of
defined in this Chapter. He shall also seize and the Bureau of Forestry Development which
confiscate, in favor of the Government, the tools and predicament could not be feasibly augmented due to
equipment used in committing the offense, and the the present economic situation of the country;
forest products cut, gathered or taken by the
offender in the process of committing the offense. WHEREAS, Section 80 of the "Revised Forestry Code
The arresting forest officer or employee shall of the Philippines", or any other law, rule and
thereafter deliver within six (6) hours from the time regulation does not authorize members of the
of arrest and seizure, the offender and the Philippine Constabulary/Integrated National Police to
confiscated forest products, tools and equipment to, file complaints against forest law violators except
and file the proper complaint with, the appropriate when they are lawfully deputized by the Minister of
official designated by law to conduct preliminary Agriculture and Natural Resources pursuant to the
investigations and file informations in court. said Code;
If the arrest and seizure are made in the forests, far NOW, THEREFORE, I, FERDINAND E. MARCOS,
from the authorities designated by law to conduct President of the Philippines, by virtue of the powers
preliminary investigations, the delivery to, and filing vested in me by the Constitution, do hereby degree
of the complaint with, the latter shall be done within that:
a reasonable time sufficient for ordinary travel from
the place of arrest to the place of delivery. The
seized products, materials and equipment shall be SECTION 1. Section 80 of Presidential Decree No. 705
immediately disposed of in accordance with forestry is amended to read as follows:
administrative orders promulgated by the
Department Head. "Sec. 80. Arrest: institution of criminal actions. -
The Department Head may deputized any agency, WHEREAS, a watershed-based integrated
Bering or barrio official, or any qualified person to ecosystem management approach is deemed
protect the forest and exercise the power or appropriate for SFM due to the interrelationships and
authority provided for in the preceding paragraph. interactions between and among the various
ecosystems of a watershed such as the uplands and
coastal areas:
Reports and complaints regarding the commission of
any of the offenses defined in this Chapter, not
NOW, THEREFORE, I GLORIA MACAPAGAL
committed in the presence of any forest officer or
ARROYO, President of the Republic of the
employee, or any personnel of the Philippine
Philippines, by virtue of the powers vested in me by
Constabulary/Integrated National Police or any of the
the Constitution, do hereby order:
deputized officers of officials, shall immediately be
investigated by the forest officer assigned in the area
SECTION 1. Declaration of Policy. It shall be the
or any personnel of the Philippine
Policy of the Government to pursue the sustainable
Constabulary/Integrated National Police where the
management of forests and forestlands in
offense was allegedly committed, who shall
watersheds. Watersheds shall be deemed as
thereupon receive the evidence supporting the
ecosystem management units and shall be managed
report or complaint. If there is a prima facie evidence
in a holistic, scientific, rights-based, technology-
to support the complaint or report the investigating
based and community-based manner and observing
forest officer and/ or members of the Philippine
the principles of multi-use, decentralization and
Constabulary/Integrated National Police shall file the
devolution, and active participation of local
necessary complaint with the appropriate official
government units (LGUs), synergism of economic,
authorized by law to conduct a preliminary
ecological, social and cultural objectives, and the
investigation of criminal case and file an information
rational utilization of all resources found therein. It
in Court."
shall likewise be the policy of the Government to
promote sound, effective and efficient, globally-
Executive Order No. 318: PROMOTING competitive and equitable forestry practices in both
SUSTAINABLE FOREST MANAGEMENT IN THE public and private domains.
PHILIPPINES
SECTION 2. Guiding Principles. The pursuit of
WHEREAS, the Constitution provides for the these policies shall be guided by the following
protection and advancement of the right of the principles:
people to a balanced and healthy environment in
accord with the rhythm and harmony of nature, to 2.1.Delineation, Classification and Demarcation
protect the Filipino people from disaster like floods or of State Forestlands
landslide, and from threats to environmental and
economic security like wood and water shortage,
biodiversity loss, air pollution and drought. Likewise,
1. State forestlands shall be identified,
it provides for the full, efficient and rights-based use
classified and delineated/demarcated on the
of natural resources to abate poverty, promote
ground and shall constitute the permanent
forest estate unless otherwise stipulated by 1. The government shall provide a favorable
Congress; the same shall be categorized and stable policy and investment
and managed either as primarily for environment-friendly forest based
production or as primarily for protection industries, ensure their sustainable raw
purposes, and in both cases, placed under a material supply and encourage value-added
formal management scheme. processing in-country to boost rural
employment and the economy.
2. Conversions of forestlands into non-forestry
uses shall be allowed only through an act of 2. Filipino entrepreneurship in forestry shall be
Congress and upon the recommendation of encouraged and supported.
concerned government agencies.
3. A package of incentives and services that
2.2. Holistic, Sustainable and Integrated are responsive to the development of
Development of Forestry Resources forests in private and public forestlands
shall be adopted to encourage the
development of private forests, including
1. The development and management of the the deregulation of privately-developed
Philippines forests and forestlands including forests and privately-planted trees and
the coastal forests shall be for the highest enhancement of capacities of stakeholders
and widest public benefit and shall be based to engage in private forest development and
on the inherent productive capacity and related activities.
sustainable use of these resource for the
present and future generation of Filipinos.
4. The development of high-value tree crops
and non-timber forest crops in public
2. The priority development, protection and forestlands, private lands and in home
management activity of any management forest gardens shall be promoted and
unit shall be the rehabilitation of open encouraged to enhance economic and
and/or denuded, degraded, fragile ecological benefits and attain self-
forestlands; and slope stabilization and sufficiency in the country’s wood
protection to address occurrence of floods, requirements.
landslides and similar ecological disasters.
5. Incentives shall be provided to encourage
3. The establishment of tree parks, regreening co-management of forest resources
and roadside planting of forest species in involving national and other government
open and appropriate spaces shall be agencies (NGAs/OGAs), LGUs, CSOs, and the
prioritized to mitigate worsening urban air private sector.
quality and global warming.