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NatRes Reviewer PDF
Natural resource is any naturally occurring substance or The Concept of Jure Regalia (Regalian Doctrine)
feature of the environment (physical or biological) that, while
not created by human effort, can be exploited by humans to This principle means that all natural wealth - agricultural,
satisfy their needs or wants. Many of such resources are our forest or timber, and mineral lands of the public domain and
life line such as water, air and solar radiation, which are all other natural resources belong to the State. Thus, even if
essential elements for the existence of all the flora and fauna. the private person owns the property where minerals are
discovered, his ownership for such does not give him the right
Two basic conditions for a substance or feature to be to extract or utilize said minerals without permission from the
classified as a natural resource: First, the resource must exist state to which such minerals belong.
naturally in the environment; that is, not synthetically
produced by human beings, such as in a laboratory or factory. The abovementioned provision provides that except for
Second, the resource must be able to be exploited by agricultural lands for public domain which alone may be
humans to directly satisfy a need or want. alienated, forest or timber, and mineral lands, as well as all
other natural resources must remain with the State, the
Natural resources may either be: exploration, development and utilization of which shall be
a) Biotic resources which are derived from biosphere subject to its full control and supervision albeit allowing it to
enter into coproduction, joint venture or production-sharing
such as the forests, marine organism, animals, birds
agreements, or into agreements with foreign-owned
and their products including mineral fuels come in
corporations involving technical or financial assistance for
this category, or
large-scale exploration, development, and utilization
b) Abiotic which includes water, air, land and elemental
ores such as gold, silver, copper, iron etc.
Cases
Indisputably, under the Amended JVA, AMARI will 3. Chavez vs. National Housing Authority (2007)
acquire and own a maximum of 367.5 hectares of
reclaimed land which will be titled in its name. Facts:
• On August 5, 2004, former Solicitor General
Francisco Chavez, filed an instant petition raising
Issue: constitutional issues on the JVA entered by National
Housing Authority and R-II Builders, Inc.
Whether the stipulations in the Amended Joint Venture
• On March 1, 1988, then-President Cory Aquino issued
Agreement or the transfer to AMARI of certain lands reclaimed
Memorandum order No. (MO) 161 approving and
and still to be reclaimed violate the 1987 Constitution.
directing implementation of the Comprehensive and
Integrated Metropolitan Manila Waste Management
Decision: Plan.
o During this time, Smokey Mountain, a
The SC summarized the conclusions as follows: wasteland in Tondo, Manila, are being made
residence of many Filipinos living in a
subhuman state.
1. The 157.84 hectares of reclaimed lands
comprising the Freedom Islands, now covered by
• As presented in MO 161, NHA prepared feasibility o During this time, NHA reported that 34
studies to turn the dumpsite into low-cost housing temporary housing structures and 21
project, thus, Smokey Mountain Development and permanent housing structures had been
Reclamation Project (SMDRP), came into place. RA turned over by RBI.
6957 (Build-Operate-Transfer Law) was passed on
July 1990 declaring the importance of private sectors Issues:
as contractors in government projects. 1. Whether respondents NHA and RBI have been
• Thereafter, Aquino proclaimed MO 415 applying RA granted the power and authority to reclaim lands of
6957 to SMDRP, among others. the public domain as this power is vested exclusively
o The same MO also established EXECOM and in PEA as claimed by petitioner
TECHCOM in the execution and evaluation 2. Whether respondents NHA and RBI were given the
of the plan, respectively, to be assisted by power and authority by DENR to reclaim foreshore
the Public Estates Authority (PEA). and submerged lands
• Notices of public bidding to become NHA’s venture
partner for SMDRP were published in newspapers in 3. Whether respondent RBI can acquire reclaimed
1992, from which R-II Builders, Inc. (RBI) won the foreshore and submerged lands considered as
bidding process. alienable and outside the commerce of man
o Then-President Ramos authorized NHA to
4. Whether respondent RBI can acquire reclaimed lands
enter into a Joint Venture Agreement with
when there was no declaration that said lands are no
RBI.
longer needed for public use
• Under the JVA, the project involves the clearing of
Smokey Mountain for eventual development into a
5. Whether there is a law authorizing sale of reclaimed
low cost housing complex and industrial/commercial
lands
site.
o RBI is expected to fully finance the
6. Whether the transfer of reclaimed lands to RBI was
development of Smokey Mountain and done by public bidding
reclaim 40 hectares of the land at the
Manila Bay Area. 7. Whether RBI, being a private corporation, is barred
o The latter together with the commercial by the Constitution to acquire lands of public domain
area to be built on Smokey Mountain will be
owned by RBI as enabling components. If 8. Whether respondents can be compelled to disclose
the project is revoked or terminated by the all information related to the SMDRP
Government through no fault of RBI or by
mutual agreement, the Government shall 9. Whether the operative fact doctrine applies to the
compensate RBI for its actual expenses instant position
incurred in the Project plus a reasonable
rate of return not exceeding that stated in
the feasibility study and in the contract as of Decision:
the date of such revocation, cancellation, or
termination on a schedule to be agreed 1. Executive Order 525 reads that the PEA shall be
upon by both parties. primarily responsible for integrating, directing, and
• To summarize, the SMDRP shall consist of Phase I coordinating all reclamation projects for and on
and Phase II. behalf of the National Government. This does not
o Phase I of the project involves clearing, mean that it shall be responsible for all. The
levelling-off the dumpsite, and construction requisites for a valid and legal reclamation project
of temporary housing units for the current are approval by the President (which were provided
residents on the cleared and levelled site. for by MOs), favourable recommendation of PEA
o Phase II involves the construction of a (which were seen as a part of its recommendations
fenced incineration area for the on-site to the EXECOM), and undertaken either by PEA or
disposal of the garbage at the dumpsite. entity under contract of PEA or by the National
• Due to the recommendations done by the DENR after Government Agency (NHA is a government agency
evaluations done, the JVA was amended and restated whose authority to reclaim lands under consultation
(now ARJVA) to accommodate the design changes with PEA is derived under PD 727 and RA 7279).
and additional work to be done to successfully
implement the project. 2. Notwithstanding the need for DENR permission, the
o The original 3,500 units of temporary DENR is deemed to have granted the authority to
housing were decreased to 2,992. The reclaim in the Smokey Mountain Project for the DENR
reclaimed land as enabling component was is one of the members of the EXECOM which provides
increased from 40 hectares to 79 hectares, reviews for the project. ECCs and Special Patent
which was supported by the issuance of Orders were given by the DENR which are exercises
Proclamation No. 465 by President Ramos. of its power of supervision over the project.
The revision also provided for the 119- Furthermore, it was the President via the
hectare land as an enabling component for abovementioned MOs that originally authorized the
Phase II of the project. reclamation. It must be noted that the reclamation
• Subsequently, the Clean Air Act was passed by the of lands of public domain is reposed first in the
legislature which made the establishment of an Philippine President.
incinerator illegal, making the off-site dumpsite at
Smokey Mountain necessary. 3. The reclaimed lands were classified alienable and
• On August 1, 1998, the project was suspended, to be disposable via MO 415 issued by President Aquino
later reconstituted by President Estrada in MO No. and Proclamation Nos. 39 and 465 by President
33. Ramos.
• On August 27, 2003, the NHA and RBI executed a
Memorandum of Agreement whereby both parties 4. Despite not having an explicit declaration, the lands
agreed to terminate the JVA and subsequent have been deemed to be no longer needed for public
agreements. use as stated in Proclamation No. 39 that these are
to be “disposed to qualified beneficiaries.”
Furthermore, these lands have already been
necessarily reclassified as alienable and disposable Decision:
lands under the BOT law.
No. Naguiat was unable to provide sufficient evidence
5. Letter I of Sec. 6 of PD 757 clearly states that the that such parcels of land are no longer a part of the
NHA can acquire property rights and interests and public domain.
encumber or otherwise dispose of them as it may
deem appropriate.
Public forest lands or forest reserves, unless
declassified and released by positive act of the Government
6. There is no doubt that respondent NHA conducted a
so that they may form part of the disposable agricultural lands
public bidding of the right to become its joint venture
of the public domain, are not capable of private appropriation.
partner in the Smokey Mountain Project. It was
As to these assets, the rules on confirmation of imperfect title
noted that notices were published in national
do not apply.
newspapers. The bidding proper was done by the
Bids and Awards Committee on May 18, 1992.
Forests, in the context of both the Public Land Act
7. RA 6957 as amended by RA 7718 explicitly states and the Constitution classifying lands of the public domain
that a contractor can be paid “a portion as into "agricultural, forest or timber, mineral lands and national
percentage of the reclaimed land” subject to the parks," do not necessarily refer to a large tract of wooded
constitutional requirement that only Filipino citizens land or an expanse covered by dense growth of trees and
or corporation with at least 60% Filipino equity can underbrush. As we stated in Heirs of Amunategui:
acquire the same. In addition, when the lands were
transferred to the NHA, these were considered
“A forested area classified as forest land of the public domain
Patrimonial lands of the state, by which it has the
does not lose such classification simply because loggers or
power to sell the same to any qualified person.
settlers have stripped it of its forest cover. Parcels of land
classified as forest land may actually be covered with grass or
8. This relief must be granted. It is the right of the
planted to crops by kaingin cultivators or other farmers.
Filipino people to information on matters of public
"Forest lands" do not have to be on mountains or in out of the
concerned as stated in Article II, Sec. 28, and Article
way places. xxx. The classification is merely descriptive of its
III, Sec. 7 of the 1987 Constitution.
legal nature or status and does not have to be descriptive of
what the land actually looks like. xxx”
9. When the petitioner filed the case, the JVA had
already been terminated by virtue of MOA between
RBI and NHA. The properties and rights in question Under Section 2, Article XII of the Constitution, which
after the passage of around 10 years from the start embodies the Regalian doctrine, all lands of the public domain
of the project’s implementation cannot be disturbed belong to the State – the source of any asserted right to
or questioned. The petitioner, being the Solicitor ownership of land. All lands not appearing to be clearly of
General at the time SMDRP was formulated, had private dominion presumptively belong to the State.
ample opportunity to question the said project, but Accordingly, public lands not shown to have been reclassified
did not do so. The moment to challenge has passed. or released as alienable agricultural land or alienated to a
private person by the State remain part of the inalienable
public domain. Under Section 6 of the Public Land Act, the
4. Republic of the Philippines vs. Celestina prerogative of classifying or reclassifying lands of the public
Naguiat (2006) domain, i.e., from forest or mineral to agricultural and vice
versa, belongs to the Executive Branch of the government
Facts: and not the court. Needless to stress, the onus to overturn, by
• Celestina Naguiat applied for registration of title to 4 incontrovertible evidence, the presumption that the land
parcels of land (located in Botolan, Zambales) with subject of an application for registration is alienable or
RTC Zambales. disposable rests with the applicant.
o She claimed to have acquired it from LID
Corporation, who in turn had acquired it In the case at bar, the CA only granted the petition
from Calderon, Moraga and Monje and their because it assumed that the lands in question are already
predecessors-in-interest who have been in alienable and disposable, which is found by the SC to not be in
possession for more than 30 years. this case.
• Republic of the Philippines (through the OSG) filed an
opposition to the application.
o They claim that neither Naguiat nor her Here, respondent never presented the required
predecessors-in-interest have been in certification from the proper government agency or
possession since 12 June 1945, that the official proclamation reclassifying the land applied for
muniments of title and tax payment receipts as alienable and disposable. Matters of land
aren’t sufficient evidence of a bona fide classification or reclassification cannot be assumed. It
acquisition of the lands, that Naguiat’s calls for proof. Aside from tax receipts, respondent
Spanish title can no longer be availed of and submitted in evidence the survey map and technical
finally, that said lands are part of the public descriptions of the lands, which, needless to state, provided
domain and not subject of private no information respecting the classification of the property.
appropriation. These documents are not sufficient to overcome the
• RTC rendered a decision in favour of Naguiat and presumption that the land sought to be registered forms part
of the public domain.
decreed the registration of said lands in her name.
• Petitioner Republic of the Phils brought case to the
Therefore, the issue of whether or not Naguiat and
CA. her predecessor-in-interest have been in open, exclusive and
• CA affirmed RTC decision. continuous possession of the parcels of land in question is
Issue: now of little moment. For, unclassified land, as here, cannot
be acquired by adverse occupation or possession; occupation
Whether or not the areas in question have ceased to have the thereof in the concept of owner, however long, cannot ripen
status of forest or other inalienable lands of the public into private ownership and be registered as title.
domain.
The State shall protect and advance the right of the
people to a balanced and healthful ecology in accord
with the rhythm and harmony of nature.
Sustainable Development
Sustainable Development is development that meets the Does Sec. 16 provide for enforceable rights?
needs of the present without compromising the ability of
future generations to meet their own needs (Brundtland Yes. The provision, as worded, recognizes an enforceable
Report). It is a pattern of resource use that aims to meet “right”. Hence, appeal to it has been recognized as conferring
human needs while preserving the environment so that these “standing” on minors to challenge logging policies of the
needs can be met not only in the present, but also for government (Oposa vs. Factoran). On this basis too, the
generations to come. Supreme Court upheld the empowerment of the Laguna Lake
Development Authority to protect the inhabitants of the
It contains within it two key concepts: Laguna Lake Area from the deleterious effects of pollutants
the concept of 'needs', in particular the essential coming from garbage dumping and the discharge of wastes in
needs of the world's poor, to which overriding priority the area as against the local autonomy claim of local
should be given; and governments in the area (Laguna Lake Development Authority
vs. CA)
the idea of limitations imposed by the state of
technology and social organization on the environment's While the right to a balanced and healthful ecology is to be
ability to meet present and future needs found under the Declaration of Principles and State Policies
and not under the Bill of Rights, it does not follow that it is
The Brundtland Report’s targets were multilateralism and less important than any of the civil and political rights
interdependence of nations in the search for a sustainable enumerated in the latter. As a matter of fact, these basic
development path. The report sought to recapture the spirit of rights need not even be written in the Constitution for they
the United Nations Conference on the Human Environment - are assumed to exist from the inception of humankind. The
the Stockholm Conference - which had introduced right to a balanced and healthful ecology carries with it the
environmental concerns to the formal political development correlative duty to refrain from impairing the environment.
sphere. Our Common Future placed environmental issues
firmly on the political agenda; it aimed to discuss the Section 16 is unusual among those found in Article II in that,
environment and development as one single issue. whereas almost all the other provisions in the Article are not
self-executing but need implementing legislation to make
The publication of Our Common Future and the work of them effective, Section 16 has been recognized by the
the World Commission on Environment and Development laid Supreme Court as self-executing like the provisions in the Bill
the groundwork for the convening of the 1992 Earth of Rights.
Summit and the adoption of Agenda 21, the Rio
Declaration and to the establishment of the Commission on
Sustainable Development.
In addition, key contributions of Our Common Future to the AGENDA 21
concept of sustainable development include the recognition
that the many crises facing the planet are interlocking Commission [formally the World Commission on
crises that are elements of a single crisis of the whole and of Environment and Development (WCED)]:
the vital need for the active participation of all sectors of
society in consultation and decisions relating to sustainable It was known by the name of its Chair Gro Harlem Brundtland
development. (former Norwegian Prime Minister), and was convened by
the United Nations in 1983. The commission was created to
Sustainable development ensures the well-being of the human address growing concern "about the accelerating
person by integrating social development, economic deterioration of the human environment and natural
development, and environmental conservation and protection. resources and the consequences of that deterioration
It refers to the "interdependent and mutually reinforcing for economic and social development." In establishing the
pillars of sustainable development as economic development, commission, the UN General Assembly recognized that
social development, and environmental protection. As the environmental problems were global in nature and
goal of sustainable development is to permanently improve determined that it was in the common interest of all nations
the living conditions of human beings, social and economic to establish policies for sustainable development.
developments must be carried out in a way that is
environmentally and ecologically sound; ensuring the
continual rejuvenation and availability of natural resources for Agenda 21: an action plan of the United Nations (UN) related
future generations. to sustainable development and was an outcome of the
United Nations Conference on Environment and Development
(UNCED) held in Rio de Janeiro, Brazil, in 1992. It is a
Seven Dimensions of Sustainable Development : From comprehensive blueprint of action to be taken globally,
the Philippine Agenda 21 nationally and locally by organizations of the UN,
governments, and major groups in every area in which
humans directly affect the environment.
From the Philippine perspective sustainable development is a
multidimensional concept, involving no less than seven
Development of Agenda 21: The full text of Agenda 21 was
dimensions. Sustainable development is viewed as the
revealed at the United Nations Conference on Environment
mutually beneficial interaction between the legitimate
and Development (Earth Summit), held in Rio de Janeiro on
interests of business and the economy, government and the
June 13, 1992, where 178 governments voted to adopt the
polity, and civil society and culture.
program. The final text was the result of drafting, consultation
From this perspective, five dimensions of sustainable
and negotiation, beginning in 1989 and culminating at the
development are clearly visible. These are—the human being,
two-week conference. The number 21 refers to an agenda for
culture, polity, economy, and Nature.
the 21st century. It may also refer to the number on the UN's
agenda at this particular summit.
Article II, Sec. 16 of 1987 Constitution Rio+5: In 1997, the General Assembly of the UN held a
special session to appraise five years of progress on the
implementation of Agenda 21 (Rio +5). The Assembly
recognized progress as 'uneven' and identified key trends maintaining the quality of the natural environment for current
including increasing globalization, widening inequalities in and future generations.
income and a continued deterioration of the global
environment. A new General Assembly Resolution (S-19/2)
Towards this end, the State adopts the principle of protecting
promised further action.
the climate system for the benefit of humankind, on the basis
of climate justice or common but differentiated
The Johannesburg Summit: The Johannesburg Plan of
responsibilities and the Precautionary Principle to guide
Implementation, agreed at the World Summit on Sustainable
decision-making in climate risk management. As a party to
Development (Earth Summit 2002) affirmed UN commitment
the United Nations Framework Convention on Climate Change,
to 'full implementation' of Agenda 21, alongside achievement
the State adopts the ultimate objective of the Convention
of the Millennium Development Goals and other international
which is the stabilization of greenhouse gas concentrations in
agreements.
the atmosphere at a level that would prevent dangerous
anthropogenic interference with the climate system which
Implementation: The Commission on Sustainable
should be achieved within a time frame sufficient to allow
Development acts as a high level forum on sustainable
ecosystems to adapt naturally to climate change, to ensure
development and has acted as preparatory committee for
that food production is not threatened and to enable
summits and sessions on the implementation of Agenda 21.
economic development to proceed in a sustainable
The United Nations Division for Sustainable Development acts
manner.1awphil As a party to the Hyogo Framework for
as the secretariat to the Commission and works 'within the
Action, the State likewise adopts the strategic goals in order
context of' Agenda 21. Implementation by member states
to build national and local resilience to climate change-related
remains essentially voluntary.
disasters.
Local Agenda 21: The implementation of Agenda 21 was Further recognizing that climate change and disaster risk
intended to involve action at international, national, regional reduction are closely interrelated and effective disaster risk
and local levels. Some national and state governments have reduction will enhance climate change adaptive capacity, the
legislated or advised that local authorities take steps to State shall integrate disaster risk reduction into climate
implement the plan locally, as recommended in Chapter 28 of change programs and initiatives.
the document. Such programmes are often known as 'Local
Agenda 21' or 'LA21'. Cognizant of the need to ensure that national and subnational
government policies, plans, programs and projects are
Agenda 21 for culture: During the first World Public founded upon sound environmental considerations and the
Meeting on Culture, held in Porto Alegre in 2002, it came up principle of sustainable development, it is hereby declared the
the idea to draw up a document guidelines for local cultural policy of the State to systematically integrate the concept of
policies, a document comparable to what the Agenda 21 climate change in various phases of policy formulation,
meant in 1992 for the environment. The Agenda 21 for development plans, poverty reduction strategies and other
culture is the first document with worldwide mission that development tools and techniques by all agencies and
advocates establishing the groundwork of an undertaking by instrumentalities of the government.
cities and local governments for cultural development.
Section 3. Definition of Terms. – For purposes of this Act, the
following shall have the corresponding meanings:
REPUBLIC ACT NO. 9729: CLIMATE CHANGE ACT OF (a) “Adaptation” refers to the adjustment in natural
2009 or human systems in response to actual or expected
climatic stimuli or their effects, which moderates
Section 2. Declaration of Policy. – It is the policy of the State harm or exploits beneficial opportunities.
to afford full protection and the advancement of the right of
the people to a healthful ecology in accord with the rhythm (b) “Adaptive capacity” refers to the ability of
and harmony of nature. In this light, the State has adopted ecological, social or economic systems to adjust to
the Philippine Agenda 21 framework which espouses climate change including climate variability and
sustainable development, to fulfill human needs while extremes, to moderate or offset potential damages
and to take advantage of associated opportunities into development planning and sectoral decision-
with changes in climate or to cope with the making.
consequences thereof.
(n) “Mitigation” in the context of climate change,
(c) “Anthropogenic causes” refer to causes refers to human intervention to address
resulting from human activities or produced by anthropogenic emissions by sources and removals by
human beings. sinks of all GHG, including ozone- depleting
substances and their substitutes.
(d) “Climate Change” refers to a change in climate
that can be identified by changes in the mean and/or (o) “Mitigation potential” shall refer to the scale
variability of its properties and that persists for an of GHG reductions that could be made, relative to
extended period typically decades or longer, whether emission baselines, for a given level of carbon price
due to natural variability or as a result of human (expressed in cost per unit of carbon dioxide
activity. equivalent emissions avoided or reduced).
(e) “Climate Variability” refers to the variations in (p) “Sea level rise” refers to an increase in sea
the average state and in other statistics of the level which may be influenced by factors like global
climate on all temporal and spatial scales beyond warming through expansion of sea water as the
that of individual weather events. oceans warm and melting of ice over land and local
factors such as land subsidence.
(f) “Climate Risk” refers to the product of climate
and related hazards working over the vulnerability of (q) “Vulnerability” refers to the degree to which a
human and natural ecosystems. system is susceptible to, or unable to cope with,
adverse effects of climate change, including climate
variability and extremes. Vulnerability is a function of
(g) “Disaster” refers to a serious disruption of the
the character, magnitude, and rate of climate change
functioning of a community or a society involving
and variation to which a system is exposed, its
widespread human, material, economic or
sensitivity, and its adaptive capacity.
environmental losses and impacts which exceed the
ability of the affected community or society to cope
using its own resources. Section 4. Creation of the Climate Change Commission. –
There is hereby established a Climate Change Commission,
hereinafter referred to as the Commission.
(h) “Disaster risk reduction” refers to the concept
and practice of reducing disaster risks through
systematic efforts to analyze and manage the causal The Commission shall be an independent and autonomous
factors of disasters, including through reduced body and shall have the same status as that of a national
exposure to hazards, lessened vulnerability of people government agency. It shall be attached to the Office of the
and property, wise management of land and the President.
environment, and improved preparedness for
adverse events.
The Commission shall be the sole policy-making body of the
government which shall be tasked to coordinate, monitor and
(i) “Gender mainstreaming” refers to the strategy evaluate the programs and action plans of the government
for making women’s as well as men’s concerns and relating to climate change pursuant to the provisions of this
experiences an integral dimension of the design, Act.
implementation, monitoring, and evaluation of
policies and programs in all political, economic, and
The Commission shall be organized within sixty (60) days
societal spheres so that women and men benefit
from the effectivity of this Act.
equally and inequality is not perpetuated. It is the
process of assessing the implications for women and
men of any planned action, including legislation, Section 5. Composition of the Commission. – The
policies, or programs in all areas and at all levels. Commission shall be composed of the President of the
Republic of the Philippines who shall serve as the Chairperson,
and three (3) Commissioners to be appointed by the
(j) “Global Warming” refers to the increase in the
President, one of whom shall serve as the Vice Chairperson of
average temperature of the Earth’s near-surface air
the Commission.
and oceans that is associated with the increased
concentration of greenhouse gases in the
atmosphere. The Commission shall have an advisory board composed of
the following:
(k) “Greenhouse effect” refers to the process by
which the absorption of infrared radiation by the (a) Secretary of the Department of Agriculture;
atmosphere warms the Earth.
(b) Secretary of the Department of Energy;
(l) “Greenhouse gases (GHG)” refers to
constituents of the atmosphere that contribute to the
(c) Secretary of the Department of Environment and
greenhouse effect including, but not limited to,
Natural Resources;
carbon dioxide, methane, nitrous oxide,
hydrofluorocarbons, perfluorocarbons and sulfur
hexafluoride. (d) Secretary of the Department of Education;
(m) “Mainstreaming” refers to the integration of (e) Secretary of the Department of Foreign Affairs;
policies and measures that address climate change
(f) Secretary of the Department of Health;
(g) Secretary of the Department of the Interior and Section 7. Qualifications, Tenure, Compensation of
Local Government; Commissioners. – The Commissioners must be Filipino
citizens, residents of the Philippines, at least thirty (30) years
of age at the time of appointment, with at least ten (10) years
(h) Secretary of the Department of National Defense,
of experience on climate change and of proven honesty and
in his capacity as Chair of the National Disaster
ntegrity. The Commissioners shall be experts in climate
Coordinating Council;
change by virtue of their educational background, training
and experience: Provided, That at least one (1) Commissioner
(i) Secretary of the Department of Public Works and shall be female: Provided, further, That in no case shall the
Highways; Commissioners come from the same sector: Provided, finally,
That in no case shall any of the Commissioners appoint
representatives to act on their behalf.
(j) Secretary of the Department of Science and
Technology;
The Commissioners shall hold office for a period of six (6)
years, and may be subjected to reappointment: Provided,
(k) Secretary of the Department of Social Welfare
That no person shall serve for more than two (2) consecutive
and Development;
terms: Provided, further, That in case of a vacancy, the new
appointee shall fully meet the qualifications of a
(l) Secretary of the Department of Trade and Commissioner and shall hold office for the unexpired portion
Industry; of the term only: Provided, finally, That in no case shall a
Commissioner be designated in a temporary or acting
capacity.
(m) Secretary of the Department of Transportation
and Communications;
The Vice Chairperson and the Commissioners shall have the
rank and privileges of a Department Secretary and
(n) Director-General of the National Economic and
Undersecretary, respectively. They shall be entitled to
Development Authority, in his capacity as Chair of
corresponding compensation and other emoluments and shall
the Philippine Council for Sustainable Development;
be subject to the same disqualifications.
(w) Representative from nongovernmental (b) Coordinate and synchronize climate change
organizations. programs of national government agencies;
At least one (1) of the sectoral representatives shall come (c) Formulate a Framework Strategy on Climate
from the disaster risk reduction community. Change to serve as the basis for a program for
climate change planning, research and development,
extension, and monitoring of activities on climate
The representatives shall be appointed by the President from
change;
a list of nominees submitted by their respective groups. They
shall serve for a term of six (6) years without reappointment
unless their representation is withdrawn by the sector they (d) Exercise policy coordination to ensure the
represent. Appointment to any vacancy shall be only for the attainment of goals set in the framework strategy
unexpired term of the predecessor. and program on climate change;
Only the ex officio members of the advisory board shall (e) Recommend legislation, policies, strategies,
appoint a qualified representative who shall hold a rank of no programs on and appropriations for climate change
less than an Undersecretary. adaptation and mitigation and other related
activities;
Section 6. Meetings of the Commission. – The Commission
shall meet once every three (3) months, or as often as may be (f) Recommend key development investments in
deemed necessary by the Chairperson. The Chairperson may climate- sensitive sectors such as water resources,
likewise call upon other government agencies for the proper agriculture, forestry, coastal and marine resources,
implementation of this Act. health, and infrastructure to ensure the achievement
of national sustainable development goals;
(g) Create an enabling environment for the design of The Framework shall be formulated based on climate change
relevant and appropriate risk-sharing and risk- vulnerabilities, specific adaptation needs, and mitigation
transfer instruments; potential, and in accordance with the international
agreements.
(h) Create an enabling environment that shall
promote broader multi-stakeholder participation and The Framework shall be reviewed every three (3) years, or as
integrate climate change mitigation and adaptation; may be deemed necessary.
(i) Formulate strategies on mitigating GHG and other Section 12. Components of the Framework Strategy and
anthropogenic causes of climate change; Program on Climate Change. – The Framework shall include,
but not limited to, the following components:
(j) Coordinate and establish a close partnership with
the National Disaster Coordinating Council in order to (a) National priorities;
increase efficiency and effectiveness in reducing the (b) Impact, vulnerability and adaptation
people’s vulnerability to climate-related disasters; assessments;
(c) Policy formulation;
(d) Compliance with international commitments;
(k) In coordination with the Department of Foreign
(e) Research and development;
Affairs, represent the Philippines in the climate
(f) Database development and management;
change negotiations;
(g) Academic programs, capability building and
mainstreaming;
(l) Formulate and update guidelines for determining (h) Advocacy and information dissemination;
vulnerability to climate change impacts and (i) Monitoring and evaluation; and
adaptation assessments and facilitate the provision (j) Gender mainstreaming.
of technical assistance for their implementation and
monitoring;
Section 13. National Climate Change Action Plan. – The
Commission shall formulate a National Climate Change Action
(m) Coordinate with local government units (LGUs) Plan in accordance with the Framework within one (1) year
and private entities to address vulnerability to after the formulation of the latter.
climate change impacts of regions, provinces, cities
and municipalities;
The National Climate Change Action Plan shall include, but not
limited to, the following components:
(n) Facilitate capacity building for local adaptation
planning, implementation and monitoring of climate
(a) Assessment of the national impact of climate
change initiatives in vulnerable communities and
change;
areas;
(b) The identification of the most vulnerable
communities/areas, including ecosystems to the
(o) Promote and provide technical and financial impacts of climate change, variability and extremes;
support to local research and development programs (c) The identification of differential impacts of climate
and projects in vulnerable communities and areas; change on men, women and children;
and (d) The assessment and management of risk and
vulnerability;
(e) The identification of GHG mitigation potentials;
(p) Oversee the dissemination of information on
and
climate change, local vulnerabilities and risks,
(f) The identification of options, prioritization of
relevant laws and protocols and adaptation and
appropriate adaptation measures for joint projects of
mitigation measures.
national and local governments.
Section 10. Panel of Technical Experts. – The Commission Section 14. Local Climate Change Action Plan. – The LGUs
shall constitute a national panel of technical experts shall be the frontline agencies in the formulation, planning
consisting of practitioners in disciplines that are related to and implementation of climate change action plans in their
climate change, including disaster risk reduction. respective areas, consistent with the provisions of the Local
Government Code, the Framework, and the National Climate
Change Action Plan.
The Panel shall provide technical advice to the Commission in
climate science, technologies, and best practices for risk
assessment and enhancement of adaptive capacity of Barangays shall be directly involved with municipal and city
vulnerable human settlements to potential impacts of climate governments in prioritizing climate change issues and in
change. identifying and implementing best practices and other
solutions. Municipal and city governments shall consider
climate change adaptation, as one of their regular functions.
The Commission shall set the qualifications and compensation
Provincial governments shall provide technical assistance,
for the technical experts. It shall provide resources for the
enforcement and information management in support of
operations and activities of the Panel.
municipal and city climate change action plans. Inter-local
government unit collaboration shall be maximized in the
Section 11. Framework Strategy and Program on Climate conduct of climate- related activities.
Change. – The Commission shall, within six (6) months from
the effectivity of this Act, formulate a Framework Strategy on
LGUs shall regularly update their respective action plans to
Climate Change. The Framework shall serve as the basis for a
reflect changing social, economic, and environmental
program for climate change planning, research and
conditions and emerging issues. The LGUs shall furnish the
development, extension, and monitoring of activities to
Commission with copies of their action plans and all
protect vulnerable communities from the adverse effects of
subsequent amendments, modifications and revisions thereof,
climate change.
within one (1) month from their adoption. The LGUs shall
mobilize and allocate necessary personnel, resources and
logistics to effectively implement their respective action Section 16. Coordination with Various Sectors. – In the
plans. development and implementation of the National Climate
Change Action Plan, and the local action plans, the
Commission shall coordinate with the nongovernment
The local chief executive shall appoint the person responsible
organizations (NGOs), civic organizations, academe, people’s
for the formulation and implementation of the local action
organizations, the private and corporate sectors and other
plan.
concerned stakeholder groups.
Sec. 4. Transitory Provisions. There shall be immediately a. National Economic and Development Authority;
be convened an interim Technical Working Group of seven
members composed or representatives from National b. Department of Environment and Natural Resources;
Economic and Development Authority (NEDA), Department of
Environment and Natural Resources (DENR), Department of 2. Civil society, composed of people’s organizations, non-
Foreign Affairs(DFA), Department of the Interior and Local government organizations and sectoral/major groups
Government (DILG), and the three representatives from non- representation shall have five (5) Council members selected
government sector, which shall work out the formulation of by their community, based on their commitment to
the operational guidelines for the Council. The working group sustainable development concerns, through a process
shall be assisted by a composite secretariat from NEDA designed by them These may include the following groups:
and DENR, These transitory groups shall cease its function women, youth, farmers, fisherfolk, indigenous people, Moro
upon the Council meeting and adoption of the operating and Cordillera people, urban poor, persons with disabilities,
guidelines within sixty (60) days upon signing of this Order. academe, professionals, media, religious groups and NGOs.
Laguna Lake Development Authority vs CA “ 1. All fishpens, fishcages and other aqua-culture structures
in the Laguna de Bay Region, which were not registered or to
RA 4850 was enacted creating the "Laguna Lake Development which no application for registration and/or permit has been
Authority." This agency was supposed to accelerate the filed with Laguna Lake Development Authority as of March 31,
development and balanced growth of the Laguna Lake area 1993 are hereby declared outrightly as illegal.
and the surrounding provinces, cities and towns, in the act, 2. All fishpens; fishcages and other aqua-culture structures
within the context of the national and regional plans and so declared as illegal shall be subject to demolition which
policies for social and economic development. shall be undertaken by the Presidential Task Force for illegal
Fishpen and Illegal Fishing.
PD 813 amended certain sections RA 4850 because of the 3. Owners of fishpens, fishcages and other aqua-culture
concern for the rapid expansion of Metropolitan Manila, the structures declared as illegal shall, without prejudice to
suburbs and the lakeshore towns of Laguna de Bay, combined demolition of their structures be criminally charged in
with current and prospective uses of the lake for municipal- accordance with Section 39-A of Republic Act 4850 as
industrial water supply, irrigation, fisheries, and the like. amended by P.D. 813 for violation of the same laws. Violations
of these laws carries a penalty of imprisonment of not
To effectively perform the role of the Authority under RA exceeding 3 years or a fine not exceeding Five Thousand
4850, the Chief Executive issued EO 927 further defined and Pesos or both at the discretion of the court.
enlarged the functions and powers of the Authority and
named and enumerated the towns, cities and provinces All operators of fishpens, fishcages and other aqua-culture
encompassed by the term "Laguna de Bay Region". Also, structures declared as illegal in accordance with the foregoing
pertinent to the issues in this case are the following provisions Notice shall have one (1) month on or before 27 October 1993
of EO 927 which include in particular the sharing of fees: to show cause before the LLDA why their said fishpens,
Sec 2: xxx the Authority shall have exclusive jurisdiction to fishcages and other aqua-culture structures should not be
issue permit for the use of all surface water for any projects or demolished/dismantled."
activities in or affecting the said region including navigation,
construction, and operation of fishpens, fish enclosures, fish One month, thereafter, the Authority sent notices to the
corrals and the like. concerned owners of the illegally constructed fishpens,
fishcages and other aqua-culture structures advising them to
SEC. 3. Collection of Fees. The Authority is hereby dismantle their respective structures within 10 days from
empowered to collect fees for the use of the lake water and receipt thereof, otherwise, demolition shall be effected.
its tributaries for all beneficial purposes including but not
limited to fisheries, recreation, municipal, industrial, The fishpen owners filed injunction cases against the LLDA.
agricultural, navigation, irrigation, and waste disposal The LLDA filed motions to dismiss the cases against it on
purpose; Provided, that the rates of the fees to be collected, jurisdictional grounds. The motions to dismiss were denied.
and the sharing with other government agencies and political Meanwhile, TRO/writs of preliminary mandatory injunction
subdivisions, if necessary, shall be subject to the approval of were issued enjoining the LLDA from demolishing the fishpens
the President of the Philippines upon recommendation of the and similar structures in question. Hence, the present petition
Authority's Board, except fishpen fee, which will be shared in for certiorari, prohibition and injunction. The CA dismissed the
the following manner: 20 percent of the fee shall go to the LLDA’s consolidated petitions. It ruled that (A) LLDA is not
lakeshore local governments, 5 percent shall go to the Project among those quasi-judicial agencies of government
Development Fund which shall be administered by a Council appealable only to the Court of Appeals; (B) the LLDA charter
and the remaining 75 percent shall constitute the share of does vest LLDA with quasi-judicial functions insofar as
LLDA. However, after the implementation within the three- fishpens are concerned; (C) the provisions of the LLDA charter
year period of the Laguna Lake Fishery Zoning and insofar as fishing privileges in Laguna de Bay are concerned
Management Plan the sharing will be modified as follows: 35 had been repealed by the Local Government Code of 1991;
percent of the fishpen fee goes to the lakeshore local (D) in view of the aforesaid repeal, the power to grant permits
governments, 5 percent goes to the Project Development devolved to respective local government units concerned.
Fund and the remaining 60 percent shall be retained by LLDA;
Provided, however, that the share of LLDA shall form part of Issue: Which agency of the Government - the LLDA or the
its corporate funds and shall not be remitted to the National towns and municipalities comprising the region - should
Treasury as an exception to the provisions of Presidential exercise jurisdiction over the Laguna Lake and its environs
Decree No. 1234. insofar as the issuance of permits for fishery privileges is
concerned?
Then came Republic Act No. 7160. The municipalities in the
Laguna Lake Region interpreted the provisions of this law to Held: LLDA
mean that the newly passed law gave municipal governments
Ratio: Section 4 (k) of RA 4850, the provisions of PD 813, and The power of the LGUs to issue fishing privileges was clearly
Section 2 of EO 927, specifically provide that the LLDA shall granted for revenue purposes. This is evident from the fact
have exclusive jurisdiction to issue permits for the use or all that Section 149 of the New Local Government Code
surface water for any projects or activities in or affecting the empowering local governments to issue fishing permits is
said region, including navigation, construction, and operation embodied in Chapter 2, Book II, of Republic Act No. 7160
of fishpens, fish enclosures, fish corrals and the like. On the under the heading, "Specific Provisions On The Taxing And
other hand, RA 7160 has granted to the municipalities the Other Revenue Raising Power of LGUs.”
exclusive authority to grant fishery privileges in municipal
waters. The Sangguniang Bayan may grant fishery privileges On the other hand, the power of the Authority to grant
to erect fish corrals, oyster, mussels or other aquatic beds or permits for fishpens, fishcages and other aqua-culture
bangus fry area within a definite zone of the municipal waters. structures is for the purpose of effectively regulating and
monitoring activities in the Laguna de Bay region and for lake
The provisions of RA7160 do not necessarily repeal the laws quality control and management. 6 It does partake of the
creating the LLDA and granting the latter water rights nature of police power which is the most pervasive, the least
authority over Laguna de Bay and the lake region. limitable and the most demanding of all State powers
including the power of taxation. Accordingly the charter of the
The Local Government Code of 1991 does not contain any Authority which embodies a valid exercise of police power
express provision which categorically expressly repeal the should prevail over the Local Government Code of 1991 on
charter of the Authority. It has to be conceded that there was matters affecting Laguna de Bay.
no intent on the part of the legislature to repeal Republic Act
No. 4850 and its amendments. The repeal of laws should be There should be no quarrel over permit fees for fishpens,
made clear and expressed. fishcages and other aqua-culture structures in the Laguna de
Bay area. Section 3 of Executive Order No. 927 provides for
It has to be conceded that the charter of the LLDA constitutes the proper sharing of fees collected.
a special law. RA 7160 is a general law. It is basic is basic in
statutory construction that the enactment of a later legislation In respect to the question as to whether the Authority is a
which is a general law cannot be construed to have repealed a quasi-judicial agency or not, it is our holding that, considering
special law. It is a well-settled rule in this jurisdiction that "a the provisions of Section 4 of Republic Act No. 4850 and
special statute, provided for a particular case or class of Section 4 of Executive Order No. 927, series of 1983, and the
cases, is not repealed by a subsequent statute, general in its ruling of this Court in Laguna Lake Development Authority vs.
terms, provisions and application, unless the intent to repeal Court of Appeals, there is no question that the Authority has
or alter is manifest, although the terms of the general law are express powers as a regulatory a quasi-judicial body in
broad enough to include the cases embraced in the special respect to pollution cases with authority to issue a "cease a
law." Where there is a conflict between a general law and a desist order" and on matters affecting the construction of
special statute, the special statute should prevail since it illegal fishpens, fishcages and other aqua-culture structures in
evinces the legislative intent more clearly that the general Laguna de Bay. The Authority's pretense, however, that it is
statute. The special law is to be taken as an exception to the co-equal to the Regional Trial Courts such that all actions
general law in the absence of special circumstances forcing a against it may only be instituted before the Court of Appeals
contrary conclusion. This is because implied repeals are not cannot be sustained. On actions necessitating the resolution
favored and as much as possible, given to all enactments of of legal questions affecting the powers of the Authority as
the legislature. A special law cannot be repealed, amended or provided for in its charter, the Regional Trial Courts have
altered by a subsequent general law by mere implication. jurisdiction.
Considering the reasons behind the establishment of the In view of the foregoing, this Court holds that Section 149 of
Authority, which are enviromental protection, navigational RA 7160, otherwise known as the Local Government Code of
safety, and sustainable development, there is every indication 1991, has not repealed the provisions of the charter of the
that the legislative intent is for the Authority to proceed with LLDA, Republic Act No. 4850, as amended. Thus, the Authority
its mission. has the exclusive jurisdiction to issue permits for the
enjoyment of fishery privileges in Laguna de Bay to the
We are on all fours with the manifestation of LLDA that exclusion of municipalities situated therein and the authority
"Laguna de Bay, like any other single body of water has its to exercise such powers as are by its charter vested on it.
own unique natural ecosystem. The 900 km lake surface
water, the 8 major river tributaries and several other smaller
rivers that drain into the lake, the 2,920 km2 basin or
watershed transcending the boundaries of Laguna and Rizal
PRESIDENTIAL DECREE No. 1586: ESTABLISHING AN
provinces, constitute one integrated delicate natural
ENVIRONMENTAL IMPACT STATEMENT SYSTEM,
ecosystem that needs to be protected with uniform set of
INCLUDING OTHER ENVIRONMENTAL MANAGEMENT
policies; if we are to be serious in our aims of attaining
RELATED MEASURES AND FOR OTHER PURPOSES
sustainable development. This is an exhaustible natural
resource-a very limited one-which requires judicious
management and optimal utilization to ensure renewability WHEREAS, the pursuit of a comprehensive and integrated
and preserve its ecological integrity and balance. Managing environment protection program necessitates the
the lake resources would mean the implementation of a establishment and institutionalization of a system whereby
national policy geared towards the protection, conservation, the exigencies of socio-economic undertakings can be
balanced growth and sustainable development of the region reconciled with the requirements of environmental quality;
with due regard to the inter-generational use of its resources
by the inhabitants in this part of the earth. The authors of
WHEREAS, the regulatory requirements of environmental
Republic Act 4850 have foreseen this need when they passed
Impact Statements and Assessments instituted in pursuit of
this LLDA law-the special law designed to govern the
this national environmental protection program have to be
management of our Laguna de Bay lake resources. Laguna de
worked into their full regulatory and procedural details in a
Bay therefore cannot be subjected to fragmented concepts of
manner consistent with the goals of the program.
management policies where lakeshore local government units
exercise exclusive dominion over specific portions of the lake
water. The implementation of a cohesive and integrated lake NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
water resource management policy, therefore, is necessary to Philippines, by virtue of the powers vested in me by the
conserve, protect and sustainably develop Laguna de Bay." Constitution do hereby order and declare:
Section 1. Policy. It is hereby declared the policy of the State Section 8. Rules and Regulations. The National
to attain and maintain a rational and orderly balance between Environmental Protection Council shall issue the necessary
socio-economic growth and environmental protection. rules and regulations to implement this Decree. For this
purpose, the National Pollution Control Commission may be
availed of as one of its implementing arms, consistent with
Section 2. Environmental Impact Statement System. There is
the powers and responsibilities of the National Pollution
hereby established an Environmental Impact Statement
Control Commission as provided in P.D. No. 984.
System founded and based on the environmental impact
statement required, under Section 4 of Presidential Decree
No. 1151, of all agencies and instrumentalities of the national Section 9. Penalty for Violation. Any person, corporation or
government, including government-owned or controlled partnership found violating Section 4 of this Decree, or the
corporations, as well as private corporations, firms and terms and conditions in the issuance of the Environmental
entities, for every proposed project and undertaking which Compliance Certificate, or of the standards, rules and
significantly affect the quality of the environment. regulations issued by the National Environmental Protection
Council pursuant to this Decree shall be punished by the
suspension or cancellation of his/its certificate or and/or a fine
Section 3. Determination of Lead Agency. The Minister of
in an amount not to exceed Fifty Thousand Pesos
Human Settlements or his designated representative is
(P50,000.00) for every violation thereof, at the discretion of
hereby authorized to name the lead agencies referred to in
the National Environmental Protection Council.
Section 4 of Presidential Decree No. 1151 which shall have
jurisdiction to undertake the preparation of the necessary
environmental impact statements on declared Section 10. Environmental Revolving Fund. Proceeds from
environmentally critical projects and areas. All Environmental the penalties prescribed in the preceding Section 9 and other
Impact Statements shall be submitted to the National penalties imposed by the National Pollution Control
Environmental Protection Council for review and evaluation. Commission as authorized in P.D. 984, shall be automatically
appropriated into an Environment Revolving Fund hereby
created as an exemption to P.D. 711 and P.D. 1234. The fund
Section 4. Presidential Proclamation of Environmentally
shall be used exclusively for the operation of the National
Critical Areas and Projects. The President of the Philippines
Environmental Protection Council and the National Pollution
may, on his own initiative or upon recommendation of the
Control Commission in the implementation of this Decree. The
National Environmental Protection Council, by proclamation
rules and regulations for the utilization of this fund shall be
declare certain projects, undertakings or areas in the country
formulated by the Ministry of Human Settlements and
as environmentally critical. No person, partnership or
submitted to the President for approval.
corporation shall undertake or operate any such declared
environmentally critical project or area without first securing
an Environmental Compliance Certificate issued by the Section 11. Repealing Clause. The Inter-Agency Advisory
President or his duly authorized representative. For the proper Council of the National Pollution Control Commission created
management of said critical project or area, the President under Section 4 of P.D. 984 is hereby abolished and its powers
may by his proclamation reorganize such government offices, and responsibilities are forthwith delegated and transferred to
agencies, institutions, corporations or instrumentalities the Control of the National Environmental Protection Council.
including the re-alignment of government personnel, and their
specific functions and responsibilities.
All other laws, decrees, executive orders, rules and
regulations inconsistent herewith are hereby repealed,
For the same purpose as above, the Ministry of Human amended or modified accordingly.
Settlements shall: (a) prepare the proper land or water use
pattern for said critical project(s) or area (s); (b) establish
ambient environmental quality standards; (c) develop a
program of environmental enhancement or protective
DENR Administrative Order No. 2003- 30
measures against calamituous factors such as earthquake,
SUBJECT: Implementing Rules and Regulations (IRR) for
floods, water erosion and others, and (d) perform such other
the Philippine Environmental Impact Statement (EIS)
functions as may be directed by the President from time to
System
time.
Consistent with the continuing effort of the Department of
Section 5. Environmentally Non-Critical Projects. All other Environment and Natural Resources (DENR) to rationalize and
projects, undertakings and areas not declared by the streamline the implementation of the Philippine
President as environmentally critical shall be considered as Environmental Impact Statement (EIS) System established
non-critical and shall not be required to submit an under Presidential Decree (PD) No. 1586, Presidential
environmental impact statement. The National Environmental Proclamation No. 2146 defining the scope of the EIS System
Protection Council, thru the Ministry of Human Settlements and pursuant to Administrative Order No. 42 issued by tile
may however require non-critical projects and undertakings to Office of the President on November 2, 2002, the following
provide additional environmental safeguards as it may deem rules and regulations are hereby promulgated;
necessary.
ARTICLE I
BASIC POLICY, OPERATING PRINCIPLES, OBJECTIVES AND
Section 6. Secretariat. The National Environmental Protection
DEFINITION OF TERMS
Council is hereby authorized to constitute the necessary
secretariat which will administer the Environmental Impact
Section 1. Basic Policy and Operating Principles
Statement System and undertake the processing and
evaluation of environmental impact statements.
Consistent with the principles of sustainable development, it
is the policy of the DENR to implement a systems-oriented
Section 7. Management and Financial Assistance. The and integrated approach to the LIS system to ensure a
Ministry of Human Settlements is hereby authorized to rational balance between socio-economic development and
provide management and financial support to government environmental protection for the benefit of present and future
offices and instrumentalities placed under its supervision generations.
pursuant to this Decree financed from its existing
appropriation or from budgetary augmentation as the Minister The following are the key operating principles in the
of Human Settlements may deem necessary. implementation of the Philippine EIS System:
c Environment - Surrounding air, water (both ground and
a. The EIS System is concerned primarily with assessing the surface), land, flora, fauna, humans and their interrelations.
direct and indirect impacts of a project on the biophysical and
human environment and ensuring that these impacts d. Environmental Compliance Certificate (ECC)- document
addressed by appropriate environmental protection and issued by the DENR/EMB after a positive review of an ECC
enhancement measures. application, certifying that based on the representations of
the proponent, the proposed project or undertaking will not
b. The EIS System aids proponents in incorporating cause significant negative: environmental impact. The ECC
environmental considerations in planning their projects as also certifies that the proponent has complied with all the
well as in determining the environment's impact on their requirements of the EIS System and has committed to
project. implement its approved Environmental Management Plan. The
ECC contains specific measures and conditions that the
c. Project proponents are responsible for determining and project proponent has to undertake before and during the
disclosing all relevant information necessary for a methodical operation of a project, and in some cases, during the project's
' assessment of the environmental impacts of their projects; abandonment phase to mitigate identified environmental
impacts.
d. The review of the EIS by EMB shall be guided by three
general criteria: (1) that environmental considerations are e. Environmentally Critical Area (ECA) - area delineated as
integrated into the overall project planning, (2) that the environmentally sensitive such that significant environmental
assessment is technically sound and proposed environmental impacts are expected if certain types of proposed projects or
mitigation, measures are effective, and (3) that , social programs are located, developed or, implemented in it.
acceptability is based on informed public participation;
f. Environmentally Critical Project (ECP) - project or program
e. Effective regulatory review of the EIS depends largely on that has high potential for significant negative environmental
timely full; and accurate disclosure of relevant: information by impact.
project proponents and, other stakeholders in the EIA process
f. The social acceptability of a project is a result of meaningful g. Environmental Guarantee Fund (EGF) - fund to be set up by
public participation, which shall be assessed as part of the a project proponent which shall be readily accessible and
Environmental Compliance Certificate (ECC) application, disbursable for the immediate clean-up or rehabilitation of
based on concerns related to the project's environmental areas affected by damages in the environment and the
impacts; resulting deterioration of environmental quality as a direct
consequence of a project's construction, operation or
g. The timelines prescribed by this Order, within which an abandonment. It shall likewise be used to compensate parties
Environmental - Compliance Certificate must be issued, or and communities affected by the negative impacts of the
denied, apply only to processes and actions within the project, and to fund community-based environment related
Environmental Management Bureau's (EMB) control and do projects including, but not limited to, information and
not include actions or activities that are the responsibility of education and emergency preparedness programs.
the proponent.
h. Environmental Impact Assessment (EIA) - process that
Section 2. Objective involves evaluating and predicting the likely impacts of a
project (including cumulative impacts) on the environment
The objective of this Administrative Order is to rationalize and during construction, commissioning, operation and
streamline the EIS System to make it more effective as a abandonment. It also includes designing appropriate
project planning and management tool by: preventive, mitigating and enhancement measures
addressing these consequences to protect the environment
a. Making the System more responsive to the demands and and the community's welfare. The process is undertaken by,
needs of the project proponents and the various stakeholders; among others, the project proponent and/or EIA Consultant,
EMB, a Review Committee, affected communities and other
b. Clarifying the, coverage of the System and updating it to stakeholders.
take into consideration industrial and technological
innovations and trends i. Environmental Impact Assessment Consultant - a
professional or group of professionals commissioned by the
c. Standardizing requirements to ensure focus on critical proponent to prepare the EIS/IEE and other related
environment parameters; documents. In some cases, the person or group referred to
may be the proponent's technical staff.
d. Simplifying procedures for processing ECC applications, and
establishing measures to ensure adherence to ECC conditions j. Environmental Impact Assessment Review Committee
by project proponents, and (EIARC) - a body of independent technical experts and
professionals of known probity from various fields organized
e. Assuring that critical environmental concerns are addressed by the EMB to evaluate the EIS and other related documents
during project development and implementation and to make appropriate recommendations regarding the
issuance or non-issuance of an ECC.
Section 3. Definition of Terms
k. Environmental Impact Statement (EIS) - document,
For the purpose of this Order, the following definitions shall be prepared and submitted by the project proponent and/or EIA
applied; Consultant that serves as an application for an ECC. It is a
comprehensive study of the significant impacts of a project on
a. Certificate, of Non-Coverage - a certification issued by the the environment. It includes an Environmental Management
EMB certifying that, based on the submitted project Plan/Program that the
description, the project is not covered by the EIS System and proponent will fund and implement to protect the
is not required to secure an ECC environment
b. Co-located projects / undertakings- projects, or series of l. Environmental Management Plan/Program (EMP) - section in
similar projects or a project subdivided to several phases the EIS that details the prevention, mitigation, compensation,
and/or stages by the same proponent, located in contiguous contingency and monitoring measures to enhance positive
areas. impacts and minimize negative impacts and risks of a
proposed project or undertaking. For operating projects, the and single projects under Category C, as well as for Category
EMP can also be derived from an EMS, D projects.
m. Environmental Management Systems (EMS) - refers to the Y. Project or Undertaking - any activity, regardless of scale or
EMB PEPP EMS as provided for under DAO 2003-14, which is a magnitude, which may have significant impact on the
part of the overall management system of a project or environment.
organization that includes environmental policy,
organizational structure, planning activities, responsibilities, z. Proponent - any natural or juridical person intending to
practices, procedures, processes and resources for implement a project or undertaking.
developing, implementing, achieving, reviewing and
maintaining an improved overall environmental performance. aa. Public Participation - open, transparent, gender-sensitive,
and community based process aimed at ensuring the social
n. Environmental Monitoring Fund (EMF) -fund that a acceptability of a project or undertaking, involving the
proponent shall set up after an ECC is issued for its project or broadest range of stakeholders, commencing at the earliest
undertaking, to be used to support the activities of the multi- possible stage, of project design and development and
partite monitoring team. It shall be immediately accessible continuing until post-assessment monitoring.
and easily disbursable.
bb. Procedural Review - phase in the ECC application review
o. Environmental Performance - capability of proponents to process to check for the completeness the required
mitigate environmental impacts of projects or programs. documents, conducted by EIAM Division at the EMB Central
Office or Regional Office.
p. Environmental Performance Report and Management Plan
(EPRMP) - documentation of the actual cumulative cc. Process Industry - an industry whose project operation
environmental impacts and effectiveness of current measures stage involves chemical, mechanical or other processes.
for single projects that are already operating but without
ECC's, i.e., Category A-3. For Category B-3 projects, a dd. Scoping - the stage in the EIS System where information
checklist form of the EPRMP would suffice. and project impact assessment requirements are established
to provide the proponent and the stakeholders the scope of
q. Environmental Risk Assessment (ERA) - assessment, work and terms of reference for the EIS.
through the use of universally accepted and scientific
methods, of risks associated with a project. It focuses on ee. Secretary - the Secretary of the DENR.
determining the probability of occurrence of accidents and
their magnitude (e.g. failure, of containment or exposure to ff. Social Acceptability - acceptability of a project by affected
hazardous materials or situations.) communities based on timely and informed participation in
the EIA process particularly with regard to environmental
r. EMS-based EMP - environmental management plan based impacts that are of concern to them.
on the environmental management system (EMS) standard as
defined in the DAO 2003-14. gg. Stakeholders - entities who may be directly and
significantly affected by the project or undertaking.
s. Initial Environmental Examination (IEE) Report – document
similar to an EIS, but with reduced details and depth of hh. Substantive Review - the phase in the EIA process
assessment and discussion whereby the document submitted is subjected to technical
evaluation by the EIARC.
t. Initial Environmental Examination (IEE) Checklist Report -
simplified checklist version of an IEE Report, prescribed by the ii. Technology - all the knowledge, products, processes, tools,
DENR, to be filled up by a proponent to identify and assess a methods and systems employed in the creation of goods or
project's environmental impacts and the providing services.
mitigation/enhancement measures to address such impacts.
ARTICLE II
u. Multipartite Monitoring Team (MMT) - community-based ECC APPLICATION PROCESSING AND APPROVAL
multi-sectoral team organized for the purpose of monitoring PROCEDURES
the proponent's compliance with ECC conditions, EMP and
applicable laws, rules and regulations. Section 4. Scope of the EIS System
v. Programmatic Environmental Impact Statement (PEIS) - 4.1 In general, only projects that pose potential significant
documentation of comprehensive studies on environmental impact to the environment shall be required to secure ECC's.
baseline conditions of a contiguous area. It also includes an In coordination with the Department of Trade and Industry
assessment of the carrying capacity of the area to absorb (DTI) and other concerned government agencies, the EMB is
impacts from co-located projects such as those in industrial authorized to
estates or economic zones (ecozones), update or make appropriate revisions to the technical
guidelines for EIS System implementation.
w. Programmatic Environmental Performance Report and
Management Plan (PEPRMP) - documentation of actual 4.2 The issuance of ECC or CNC for a project under the EIS
cumulative environmental impacts of collocated projects with System does not exempt the proponent from securing other
proposals for expansion. The PEPRMP should also describe the government permits and clearances as required by other
effectiveness of current environmental mitigation measures laws.
and plans for performance improvement.
In determining the scope of the EIS System, two factors are
x. Project Description (PD) - document, which may also be a considered: (i) the nature of the project and its potential to
chapter in an EIS, that describes the nature, configuration, cause significant negative environmental impacts, and (ii) the
use of raw materials and natural resources, production sensitivity or vulnerability of environmental resources in the
system, waste or pollution generation and control and the project area. 4.3 The specific criteria for, determining projects
activities of a proposed project. It includes a description of the or undertakings to be covered by the EIS System are as
use of human resources as well as activity timelines, during follows:
the pre-construction, construction, operation and
abandonment phases. It is to be used for reviewing co-located a. Characteristics of the project or undertaking
• Size of the project
• Cumulative nature of impacts vis-a-vis: other projects
• Use of natural resources The following are the different forms of EIA study reports and
• Generation of waste and environment-related nuisance documents required under the EIS System. DENR employees
• Environment-related hazards and risk of accidents are prohibited from taking part in the preparation of such
documents.
b. Location of the Project The DENR/EMB shall limit to a maximum of two (2) official
• Vulnerability of the project area to disturbances due to requests (in writing) to the project proponent for additional
its ecological importance, endangered or protected status information, which shall be made within the first 75% of the
• Conformity of the proposed project to existing land use, processing timeframe shown in Section 5.1.1.
based on approved zoning or on national laws and
regulations 5.2.1. Environmental Impact Statement (EIS).
• Relative abundance, quality and regenerative capacity
of natural resources in the area, including the impact The EIS should contain at least the following:
absorptive capacity of the environment
a. EIS Executive Summary;
c. Nature of the potential impact b. Project Description;
• Geographic extent of the impact and size of affected c. Matrix of the scoping agreement identifying critical issues
population and concerns, as validated by EMB;
• Magnitude and complexity of the impact d. Baseline environmental conditions focusing on the sectors
• Likelihood, duration, frequency, and reversibility of the (and resources) most significantly affected by the proposed
impact action;
e. Impact assessment focused on significant environmental
The following are the categories of projects/undertakings impacts (in relation to project construction/commissioning,
under the EIS system: operation and decommissioning), taking into account
cumulative impacts;
Category A. Environmentally Critical Projects (ECPs) with f. Environmental Risk Assessment if determined by EMB as
significant potential to cause negative environmental impacts necessary during scoping;
g. Environmental Management Program/Plan;
Category B. Projects that are not categorized as ECPs, but h. Supporting documents; including technical/socio-economic
which may cause negative environmental impacts because data used/generated; certificate of zoning viability and
they are located in Environmentally Critical Areas (ECA's) municipal land use plan; and proof of consultation with
stakeholders;
Category C. Projects intended to directly enhance i. Proposals for Environmental Monitoring and Guarantee
environmental quality or address existing environmental Funds including justification of amount, when required;
problems not falling under Category A or B. j. Accountability statement of EIA consultants and the project
proponent; and
Category D. Projects unlikely to cause adverse environmental k. Other clearances and documents that may be determined
impacts. and agreed upon during scoping.
4.4 Proponents of co-located or single projects that fall under 5.2.2. Initial Environmental Examination (IEE) Report
Category A and B are required to secure ECC. For co-located IEE Report is similar to an EIS, but with reduced details of data
projects, the proponent has the option to secure a and depth of assessment and discussion. It may be
Programmatic ECC. For ecozones, ECC application may be customized for different types of projects under Category B.
programmatic based on submission of a programmatic EIS, or The EMB shall coordinate with relevant government agencies
locator-specific based on submission of project EIS by each and the private sector to customize and update IEE Checklists
locator. to further streamline ECC processing, especially for small and
medium enterprises.
4.5 Projects under Category C are required submit Project
Description. 5.2.3. Programmatic Environmental Impact Statement
(PEIS)
4.6 Projects classified under Category D may secure a CNC.
The EMB-DENR, however, may require such, projects or The PEIS shall contain the following:
undertakings to provide additional environmental safeguards
as it may deem necessary. , a. Executive Summary;
b. Project Description;
4.7 Projects/undertakings introducing new technologies or c. Summary matrix of scoping agreements as validated by
construction technique but which may cause significant EMB;
negative environmental impacts shall be required to submit a d. [-co-profiling of air, land, water, and relevant people
Project Description Which will be used as basis by EMB for aspects;
screening the project and e. Environmental carrying capacity analysis;
determining its category. f. Environmental Risk Assessment (if found necessary during
Section 5. Requirements for Securing Environmental scoping);
Compliance Certificate (ECC) and Certificate of Non- g. Environmental Management Plan to include allocation
Coverage (CNC) scheme for discharge of pollutants; criteria for acceptance of
locators, environmental management guidebook for locators,
5.1 Documentary Requirements for Proponents ECC and environmental liability scheme;
processing requirements shall focus on information needed to h. Duties of the Environmental Management Unit to be
assess critical created;
environmental impacts of projects. Processing requirements i. Proposals for Environmental Monitoring & Guarantee Funds
shall be customized based on the project categories. and terms of reference for the Multi-partite Monitoring Team,
and
The total maximum processing time reckons from the j. Other supporting documents and clearances that may be
acceptance of the ECC/CNC application for substantive review agreed during the scoping.
up to the issuance of the decision
5.2.4. Programmatic Environmental Performance
5.2 Forms and Contents of EIA Study Reports and Report and Management Plan (PEPRMP).
Other Documents Required Under the EIS System
The PEPRMP shall contain the following: d. Detailed comparative, description of the proposed project
expansion and/or process modification with corresponding
a. Project Description of the co-located projects; material and energy balances in the case of process
b. Documentation of the actual environmental performance industries,
based on current/past environmental management measures e. EMP based on an environmental management system
implemented, and framework and standard set by EMB.
c. An EMP based on an environmental management system
framework and standard set by EMB. 5.2.6. Project Description (PD)
5.2.5. Environmental Performance Report and The PD shall be guided by the definition of terms and shall
Management Plan contain the following:
a. Detailed assessment of the proposed mitigation and 8.1.1. The procedures to enable the processing of ECCICNC
enhancement measures for the identified environmental applications within the timeframes, specified in AO 42 shall be
impacts and risks; prescribed in a Procedural Manual to be issued by the EMB
b. Description of residual or unavoidable environmental Central Office within ninety (90) days from the date of this
impacts despite proposed mitigation measures; Order.
c. Documentation of compliance with technical/substantive 8.1.2. The Manual of Procedures shall be updated as the need
review criteria; arises to continually shorten the review and approval/denial
d. Key issues/concerns and the proponent's response to these, timeframes where feasible. Formulation of said procedures
including social acceptability measures; shall conform to the following guidelines;
e. Assessment of the proposed EMP (including risk
reduction/management plan) and amounts proposed for the 8.2 Processing Timeframe
Environmental Guarantee Fund and the Environmental
Monitoring Fund, and 8.2.1. If no decision is made within the specified timeframe,
f. Recommended decision regarding the ECC application as the ECC/CNC application is deemed automatically approved
well as proposed ECC conditions. and the approving authority shall issue the ECC or CNC within
five (5) working days after the prescribed processing
5.4.3. Decision Document timeframe has lapsed. However, the EMB may deny issuance
This is an official letter regarding the decision on the of ECC if the proponent fails to submit required additional
application. It may be in the form of an Environmental information critical to deciding on the ECC/CNC application,
Compliance Certificate or a Denial Letter. The ECC shall despite written request from EMB and despite an adequate
contain the scope and limitations of the approved activities, period for the proponent to comply with the said requirement;
as well as conditions to ensure compliance with the 8.2.2. In cases where ECC issuance cannot be decided due to
Environmental Management Plan. The ECC shall also specify the proponent's inability to submit required additional
the setting up of an EMF and EGF, if applicable. No ECC shall information within the prescribed period, the EMB shall return
be released until the proponent has settled all liabilities, fines the application to the proponent. The project proponent may
and other obligations with DENR. resubmit its application, including the required additional
information, within one (1) year for Category A projects and
A Denial Letter on the other hand shall specify the bases for six (6) months for Category B projects without having to pay
the decision. The ECC or Denial Letter shall be issued directly processing and other fees. Otherwise, the matter shall be
to the project proponent or its duly authorized representative, treated as a new application.
and receipt of the letter shall be properly documented. The
ECC of a project not implemented within five years from its 8.2.3. In cases where EMB and the project proponent have
date of issuance is deemed expired. The Proponent shall have exhausted all reasonable efforts to generate the information
to apply for a new ECC if it intends to pursue the project. The needed for deciding on the ECC/CNC application, the
reckoning date of project implementation is the date of responsible authority (Secretary or EMB Director/ Regional
ground breaking, based on the proponent's work plan as Director), shall make a decision based on the available
submitted to the EMB. information so as to comply with the prescribed timeframe.
The decision shall nonetheless reflect a thorough assessment
Section 6. Appeal of impacts taking into
Any party aggrieved by the final decision on the ECC / CNC consideration (i) the significance of environmental impacts
applications may, within 15 days from receipt of such and risks; (ii) the carrying capacity of the environment; (iii)
decision, file an appeal on the following grounds: equity issues with respect to use of natural resources, (iv) and
the proponent's commitment, to institute effective
a. Grave abuse of discretion on the part of the deciding environmental management measures.
authority, or
b. Serious errors in the review findings. 8.3 Amending an ECC
Requirements for processing ECC amendments shall depend
The DENR may adopt alternative conflict/dispute resolution on the nature of the request but shall be focused on the
procedures as a means to settle grievances between information necessary to assess the environmental impact of
proponents and aggrieved parties to avert unnecessary legal such changes.
action. Frivolous appeals shall not be countenanced.
8.3.1. Requests for minor changes to ECCs such as extension
The proponent or any stakeholder may file an appeal to the of deadlines for submission of post-ECC requirements shall be
following: decided upon by the endorsing authority.
8.3.2. Requests for major changes to ECCs shall be decided
Deciding Authority Where to file the appeal upon by the deciding authority.
EMB Regional Office Director Office of the EMB Director 8.3.3. For ECCs issued pursuant to an IEE or IEE checklist, the
EMB Central Office Office of the DENR Secretary processing of the amendment application shall not exceed
DENR Secretary Office of the President thirty (30) working days; and for ECCs issued pursuant to an
EIS, the processing shall not exceed sixty (60) working days.
Section 7. The EIA Process in Relation to the Project Provisions on automatic approval related to prescribed
Planning Cycle timeframes under AO 42 shall also apply for the processing of
Proponents are directed under AO 42 to conduct applications to amend ECCs.
simultaneously the environmental impact study and the
project planning or feasibility study. EMB may validate Section 9. Monitoring of Projects with ECCs
whether or not the EIS was integrated with project planning Post ECC monitoring of projects shall follow these guidelines.
by requiring relevant documentary proofs, such as the terms Other details on requirements for monitoring of projects with
of reference for the feasibility study and copies of the ECCs shall be stipulated in a procedural manual to be
feasibility study report. formulated by EMB.
9.1 Multipartite Monitoring Team The DENR-EMB shall conduct regular consultations with DTI
For projects under Category A, a multi-partite monitoring and other pertinent government agencies, affected industry
team (MMT) shall be formed immediately after the issuance of groups and other stakeholders on continually streamlining the
an ECC. Proponents required to establish an MMT shall put up processing of ECC applications and post ECC implementation
an Environmental Monitoring Fund (EMF) not later than the to fulfill the policy and objectives of this administrative order.
initial construction phase of the project.
The President shall be apprised of the issues raised as well as
The MMT shall be composed of representatives of the the actions taken by DENR to address these issues whenever
proponent and of stakeholder groups, including necessary.
representatives from concerned LGU's, locally accredited
NGOs/POs, the community, concerned EMB Regional Office, Section 11. Information Systems Improvement
relevant government agencies, and other sectors that may be The information system on the EIS System implementation
identified during the negotiations. shall be improved for the effective dissemination of
information to the public. The information system shall
The team shall be tasked to undertake monitoring of include regular updating of the status of ECC applications
compliance with ECC conditions as well as the EMP. The MMT through a website and through other means.
shall submit a semi-annual monitoring report within January
and July of each year. Section 12. Accreditation System
To enhance the quality of the EIS submitted to the DENR/EMB,
The EMB shall formulate guidelines for operationalizing area- the EMB shall establish an accreditation system for individual
based or cluster-based MMT. The Bureau may also develop professionals, academic and professional organizations that
guidelines for delegating, monitoring responsibilities to other can be tapped to train professionals in conducting EIA using
relevant government agencies as may be deemed necessary. training modules approved by EMB.
For projects whose significant environmental impacts do not
persist after the construction phase or whose impacts could The EMB shall also work with DTI-BPS for an accreditation
be addressed through other regulatory means or through the system for environmental and EMS auditors, consistent with
mandates of other government agencies, the operations of provisions of DAO 2003-14 on the Philippine Environmental
MMT may be terminated immediately after construction or Partnership Program.
after a reasonable period during implementation.
Section 13. Creation of an HAM Division and
9.2 Self-monitoring and Third Party Audit Strengthening of Review and Monitoring Capability
The proponent shall also conduct regular self-monitoring of In order to effectively implement the provisions of this
specific parameters indicated in the EMP through its administrative order, the current EIA ad hoc division at the
environmental unit. The proponent's environmental unit shall EMB Central Office and the EMB Regional Offices that are
submit a semi-annual monitoring report within January and primarily in-charge of processing ECC applications and post-
July of each year. ECC monitoring shall be converted to a full-pledged
Environmental Impact Assessment and Management Division
For projects with ECCs issued based on a PEPRMP, EPRMP, or (EIAMD). The Division shall have the following structure and
an EMS-based EMP, a third party audit may be undertaken by functions:
a qualified environmental or EMS auditor upon the initiative of
the proponent and in lieu of forming an MMT. The said 13.1 The EIA Evaluation Section shall be in charge of
proponent shall submit to EMB a copy of the audit findings screening projects for coverage under the EIS System, EIS
and shall be held accountable for the veracity of the report. Scoping, and evaluation of EIS's and IEE's submitted for ECC
The EMB may opt to validate the said report. issuance. It shall have three units responsible, respectively,
for screening for coverage, EIS Scoping, and evaluation of ECC
9.3 Environmental Guarantee Fund applications. The EMB may commission independent
An Environmental Guarantee Fund (EGF) shall be established professionals, experts from the academe and representatives
for all co-located or single projects that have been determined from relevant government agencies as members of the EIA
by DENR to pose a significant public risk or where the project Review Committee as may be deer 31d necessary. Further,
requires rehabilitation or restoration. An EGF Committee shall continual improvement of the technical capability of the Staff
be formed to manage the fund. It shall be composed of of the EIA Division shall be undertaken.
representatives from the EMB Central Office, EMB Regional
Office, affected communities, concerned LGUs, and relevant 13.2 The Impact Monitoring and Validation Section shall be in
government agencies identified by EMB. charge of monitoring compliance to ECC conditions and
implementation of the Environmental Management Program
An integrated MOA on the MMT-EMF-EGF shall be entered into (EMP): The unit shall also validate actual impacts as a basis
among the EMB Central Office, EMB Regional Office, the for evaluating environmental performance and effectiveness
proponent, and representatives of concerned stakeholders. of the EMP.
9.4 Abandonment 13.3 In the EMB Central Office, there shall be a Systems
For projects that shall no longer be pursued, the proponent Planning and Management Section. It shall ensure that a
should inform EMB to relieve the former from the requirement continually improving systems-oriented and integrated
for continued compliance with the ECC conditions. For projects approach is followed in implementing the Philippine EIS
that have already commenced implementation, an System vis-a-vis national development programs. The section
abandonment/decommissioning plan shall be submitted for shall have two units responsible for specific systems level
approval by EMB at least six (6) months before the planned concerns: (1) Project Level Systems Planning and
abandonment/decommissioning. The implementation of the Management Unit; and (2) Program and Policy Level Systems
plan shall be verified by EMB. Planning and Management Unit. This section shall also be
responsible for technical coordination with the EIA Division in
ARTICLE Ill the different EMB Regional Offices.
STRENGTHENING THE IMPLEMENTATION OF THE
PHILIPPINE EIS The organizational structure of the EMB Central Office is in
SYSTEM Annex 1.
CHAPTER III
d. Right in Case of Displacement.- In case displacement
RIGHTS TO ANCESTRAL DOMAINS
occurs as a result of natural catastrophes, the State shall
endeavor to resettle the displaced ICCs/IPs in suitable areas
Sec. 4. Concept of Ancestral Lands/Domains.- Ancestral where they can have temporary life support system: Provided,
lands/domains shall include such concepts of territories which That the displaced ICCs/IPs shall have the right to return to
cover not only the physical environment but the total their abandoned lands until such time that the normalcy and
environment including the spiritual and cultural bonds to the safety of such lands shall be determined: Provided, further,
area which the ICCs/IPs possess, occupy and use and to which That should their ancestral domain cease to exist and
they have claims of ownership. normalcy and safety of the previous settlements are not
possible, displaced ICCs/IPs shall enjoy security of tenure over
lands to which they have been resettled: Provided,
Sec. 5. Indigenous Concept of Ownership.- Indigenous concept
furthermore, That basic services and livelihood shall be
of ownership sustains the view that ancestral domains and all
provided to them to ensure that their needs are adequately
resources found therein shall serve as the material bases of
addressed:
their cultural integrity. The indigenous concept of ownership
generally holds that ancestral domains are the ICC's/IP's
private but community property which belongs to all e. Right to Regulate Entry of Migrants.- Right to regulate the
generations and therefore cannot be sold, disposed or entry of migrant settlers and organizations into the domains;
destroyed. It likewise covers sustainable traditional resource
rights.
f. Right to Safe and Clean Air and Water.- For this purpose, the
ICCs/IPs shall have access to integrated systems for the
Sec. 6. Composition of Ancestral Lands/Domains.- Ancestral management of their inland waters and air space;
lands and domains shall consist of all areas generally
belonging to ICCs/IPs as referred under Sec. 3, items (a) and
g. Right to Claim Parts of Reservations.- The right to claim
(b) of this Act.
parts of the ancestral domains which have been reserved for
various purposes, except those reserved and intended for
Sec. 7. Rights to Ancestral Domains.- The rights of ownership common and public welfare and service; and
and possession of ICCs/IPs t their ancestral domains shall be
recognized and protected. Such rights shall include:
h. Right to Resolve Conflict.- Right to resolve land conflicts in
accordance with customary laws of the area where the land is
a. Rights of Ownership.- The right to claim ownership over located, and only in default thereof shall the complaints be
lands, bodies of water traditionally and actually occupied by submitted to amicable settlement and to the Courts of Justice
ICCs/IPs, sacred places, traditional hunting and fishing whenever necessary.
grounds, and all improvements made by them at any time
within the domains;
Sec. 8. Rights to Ancestral Lands.- The right of ownership and
possession of the ICCs/IPs, to their ancestral lands shall be
b. Right to Develop Lands and Natural Resources.- Subject to recognized and protected.
Section 56 hereof, right to develop, control and use lands and a. Right to transfer land/property.- Such right shall include the
territories traditionally occupied, owned, or used; to manage right to transfer land or property rights to/among members of
and conserve natural resources within the territories and the same ICCs/IPs, subject to customary laws and traditions of
uphold the responsibilities for future generations; to benefit the community concerned.
and share the profits from allocation and utilization of the
natural resources found therein; the right to negotiate the
b. Right to Redemption.- In cases where it is shown that the
terms and conditions for the exploration of natural resources
transfer of land/property rights by virtue of any agreement or
in the areas for the purpose of ensuring ecological,
devise, to a non-member of the concerned ICCs/IPs is tainted
environmental protection and the conservation measures,
by the vitiated consent of the ICCs/IPs,or is transferred for an
pursuant to national and customary laws; the right to an
unconscionable consideration or price, the transferor ICC/IP
informed and intelligent participation in the formulation and
shall have the right to redeem the same within a period not
implementation of any project, government or private, that
exceeding fifteen (15) years from the date of transfer.
will affect or impact upon the ancestral domains and to
Sec. 9. Responsibilities of ICCs/IPs to their Ancestral Domains.- or outside Muslim Mindanao and the Cordillera to use the form
ICCs/IPs occupying a duly certified ancestral domain shall and content of their ways of life as may be compatible with
have the following responsibilities: the fundamental rights defined in the Constitution of the
a. Maintain Ecological Balance- To preserve, restore, and Republic of the Philippines and other internationally
maintain a balanced ecology in the ancestral domain by recognized human rights.
protecting the flora and fauna, watershed areas, and other
reserves;
Sec. 15. Justice System, Conflict Resolution Institutions and
Peace Building Processes.- The ICCs/IPs shall have the right to
b. Restore Denuded Areas- To actively initiate, undertake and use their own commonly accepted justice systems, conflict
participate in the reforestation of denuded areas and other resolution institutions, peace building processes or
development programs and projects subject to just and mechanisms and other customary laws and practices within
reasonable remuneration; and their respective communities and as may be compatible with
the national legal system and with internationally recognized
human rights.
c. Observe Laws- To observe and comply with the provisions
of this Act and the rules and regulations for its effective
implementation. Sec. 16. Right to Participate in Decision -Making.- ICCs/IPs
have the right to participate fully, if they so choose, at all
levels of decision-making in matters which may affect their
Sec. 10. Unauthorized and Unlawful Intrusion.- Unauthorized
rights, lives and destinies through procedures determined by
and unlawful intrusion upon, or use of any portion of the
them as well as to maintain and develop their own indigenous
ancestral domain, or any violation of the rights herein before
political structures. Consequently, the State shall ensure that
enumerated, shall be punishable under this law. Furthermore,
the ICCs/IPs shall be given mandatory representation in
the Government shall take measures to prevent non-ICCs/IPs
policy-making bodies and other local legislative councils.
from taking advantage of the ICCs/IPs customs or lack of
understanding of laws to secure ownership, possession of land
belonging to said ICCs/IPs. Sec. 17. Right to Determine and Decide Priorities for
Development.- The ICCs/IPs shall have the right to determine
and decide their own priorities for development affecting their
Sec. 11. Recognition of Ancestral Domain Rights.- The rights
lives, beliefs, institutions, spiritual well-being, and the lands
of ICCs/IPs to their ancestral domains by virtue of Native Title
they own, occupy or use. They shall participate in the
shall be recognized and respected. Formal recognition, when
formulation,implementation and evaluation of policies, plans
solicited by ICCs/IPs concerned, shall be embodied in a
and programs for national, regional and local development
Certificate of Ancestral Domain Title (CADT), which shall
which may directly affect them.
recognize the title of the concerned ICCs/IPs over the
territories identified and delineated.
Sec. 18. Tribal Barangays.- The ICCs/IPs living in contiguous
areas or communities where they form the predominant
Sec. 12. Option to Secure Certificate of Title under
population but which are located in municipalities, provinces
Commonwealth Act 141, as amended, or the Land
or cities where they do not constitute the majority of the
Registration Act 496.- Individual members of cultural
population, may form or constitute a separate barangay in
communities, with respect to individually-owned ancestral
accordance with the Local Government Code on the creation
lands who, by themselves or through their predecessors-in
of tribal barangays.
-interest, have been in continuous possession and occupation
of the same in the concept of owner since the immemorial or
for a period of not less than thirty (30) years immediately Sec. 19. Role of Peoples Organizations.- The State shall
preceding the approval of this Act and uncontested by the recognize and respect the role of independent ICCs/IPs
members of the same ICCs/IPs shall have the option to secure organizations to enable the ICCs/IPs to pursue and protect
title to their ancestral lands under the provisions of their legitimate and collective interests and aspirations
Commonwealth Act 141, as amended, or the Land through peaceful and lawful means.
Registration Act 496.
Sec. 20. Means for Development /Empowerment of ICCs/IPs.-
For this purpose, said individually-owned ancestral lands, The Government shall establish the means for the full
which are agricultural in character and actually used for development/empowerment of the ICCs/IPs own institutions
agricultural, residential, pasture, and tree farming purposes, and initiatives and, where necessary, provide the resources
including those with a slope of eighteen percent (18%) or needed therefor.
more, are hereby classified as alienable and disposable
agricultural lands.
CHAPTER V
SOCIAL JUSTICE AND HUMAN RIGHTS
The option granted under this Section shall be exercised
within twenty (20) years from the approval of this Act.
Sec. 21. Equal Protection and Non-discrimination of ICCs/IPs.-
Consistent with the equal protection clause of the Constitution
CHAPTER IV of the Republic of the Philippines, the Charter of the United
RIGHT TO SELF-GOVERNANCE AND EMPOWERMENT Nations, the Universal Declaration of Human Rights including
the Convention on the Elimination of Discrimination Against
Women and International Human Rights Law, the State shall,
Sec. 13. Self-Governance.- The State recognizes the inherent
with due recognition of their distinct characteristics and
right of ICCs/IPs to self-governance and self-determination
identity, accord to the members of the ICCs/IPs the rights,
and respects the integrity of their values, practices and
protections and privileges enjoyed by the rest of the citizenry.
institutions. Consequently, the State shall guarantee the right
It shall extend to them the same employment rights,
of ICCs/IPs to freely pursue their economic, social and cultural
opportunities, basic services, educational and other rights and
development.
privileges available to every member of the society.
Accordingly, the State shall likewise ensure that the
Sec. 14. Support for Autonomous Regions.- The State shall employment of any form of force of coersion against ICCs/IPs
continue to strengthen and support the autonomous regions shall be dealt with by law.
created under the Constitution as they may require or need.
The State shall likewise encourage other ICCs/IPs not included
The State shall ensure that the fundamental human rights and Sec. 26. Women.- ICC/IP women shall enjoy equal rights and
freedoms as enshrined in the Constitution and relevant opportunities with men, as regards the social, economic,
international instruments are guaranteed also to indigenous political and cultural spheres of life. The participation of
women. Towards this end, no provision in this Act shall be indigenous women in the decision-making process in all
interpreted so as to result in the diminution of rights and levels, as well as in the development of society, shall be given
privileges already recognized and accorded to women under due respect and recognition.
existing laws of general application.
The State shall provide full access to education, maternal and
Sec. 22. Rights during Armed Conflict.- ICCs/IPs have the right child care, health and nutrition, and housing services to
to special protection and security in periods of armed conflict. indigenous women. Vocational, technical, professional and
The State shall observe international standards, in particular, other forms of training shall be provided to enable these
the Fourth Geneva Convention of 1949, for the protection of women to fully participate in all aspects of social life. As far as
civilian populations in circumstances of emergency and armed possible, the State shall ensure that indigenous women have
conflict, and shall not recruit members of the ICCs/IPs against access to all services in their own languages.
their will into armed forces, and in particular, for the use
against other ICCs/IPs; not recruit children of ICCs/IPs into the
Sec. 27. Children and Youth.- The State shall recognize the
armed forces under any circumstance; nor force indigenous
vital role of the children and youth of ICCs/IPs in nation-
individuals to abandon their lands, territories and means of
building and shall promote and protect their physical, moral,
subsistence, or relocate them in special centers for military
spiritual, moral, spiritual, intellectual and social well-being.
purposes under any discriminatory condition.
Towards this end, the State shall support all government
programs intended for the development and rearing of the
Sec. 23. Freedom from Discrimination and Right to Equal children and youth of ICCs/IPs for civic efficiency and establish
Opportunity and Treatment.- It shall be the right of the such mechanisms as may be necessary for the protection of
ICCs/IPs to be free from any form of discrimination, with the rights of the indigenous children and youth.
respect to recruitment and conditions of employment, such
that they may enjoy equal opportunities as other
Sec. 28. Integrated System of Education.- The State shall,
occupationally-related benefits, informed of their rights under
through the NCIP, provide a complete, adequate and
existing labor legislation and of means available to them for
integrated system of education, relevant to the needs of the
redress, not subject to any coercive recruitment systems,
children and Young people of ICCs/IPs.
including bonded labor and other forms of debt servitude; and
equal treatment in employment for men and women,
including the protection from sexual harassment. CHAPTER VI
CULTURAL INTEGRITY
Towards this end, the State shall within the framework of
national laws and regulations, and in cooperation with the Sec. 29. Protection of Indigenous Culture, traditions and
ICCs/IPs concerned, adopt special measures to ensure the institutions.- The state shall respect, recognize and protect
effective protection with regard to the recruitment and the right of the ICCs/IPs to preserve and protect their culture,
conditions of employment of persons belonging to these traditions and institutions. It shall consider these rights in the
communities, to the extent that they are not effectively formulation of national plans and policies.
protected by the laws applicable to workers in general.
Sec. 30. Educational Systems.- The State shall provide equal
ICCs/IPs shall have the right to association and freedom for all access to various cultural opportunities to the ICCs/IPs
trade union activities and the right to conclude collective through the educational system, public or cultural entities,
bargaining agreements with employers' conditions. They shall scholarships, grants and other incentives without prejudice to
likewise have the right not to be subject to working conditions their right to establish and control their educational systems
hazardous to their health, particularly through exposure to and institutions by providing education in their own language,
pesticides and other toxic substances. in a manner appropriate to their cultural methods of teaching
and learning. Indigenous children/youth shall have the right to
all levels and forms of education of the State.
Sec. 24. Unlawful Acts Pertaining to Employment.- It shall be
unlawful for any person:
Sec. 31. Recognition of Cultural Diversity.- The State shall
endeavor to have the dignity and diversity of the cultures,
a. To discriminate against any ICC/IP with respect to the terms
traditions, histories and aspirations of the ICCs/IPs
and conditions of employment on account of their descent.
appropriately reflected in all forms of education, public
Equal remuneration shall be paid to ICC/IP and non-ICC/IP for
information and cultural-educational exchange. Consequently,
work of equal value; and
the State shall take effective measures, in consultation with
ICCs/IPs concerned, to eliminate prejudice and discrimination
b. To deny any ICC/IP employee any right or benefit herein and to promote tolerance, understanding and good relations
provided for or to discharge them for the purpose of among ICCs/IPs and all segments of society. Furthermore, the
preventing them from enjoying any of the rights or benefits Government shall take effective measures to ensure that
provided under this Act. State-owned media duly reflect indigenous cultural diversity.
The State shall likewise ensure the participation of
appropriate indigenous leaders in schools, communities and
Sec. 25. Basic Services.- The ICC/IP have the right to special
international cooperative undertakings like festivals,
measures for the immediate, effective and continuing
conferences, seminars and workshops to promote and
improvement of their economic and social conditions,
enhance their distinctive heritage and values.
including in the areas of employment, vocational training and
retraining, housing, sanitation, health and social security.
Particular attention shall be paid to the rights and special Sec. 32. Community Intellectual Rights.- ICCs/IPs have the
needs of indigenous women, elderly, youth, children and right to practice and revitalize their own cultural traditions
differently-abled persons. Accordingly, the State shall and customs. The State shall preserve, protect and develop
guarantee the right of ICCs/IPs to government 's basic the past, present and future manifestations of their cultures
services which shall include, but not limited to water and as well as the right to the restitution of cultural, intellectual,
electrical facilities, education, health and infrastructure. religious, and spiritual property taken without their free and
prior informed consent or in violation of their laws, traditions recognition of their ancestral domains as well as their rights
and customs. thereto.
Sec. 33. Rights to Religious, Cultural Sites and Ceremonies.- Sec. 39. Mandate.- The NCIP shall protect and promote the
ICCs/IPs shall have the right to manifest, practice, develop interest and well-being of the ICCs/IPs with due regard to their
teach their spiritual and religious traditions, customs and beliefs, customs, traditions and institutions.
ceremonies; the right to maintain, protect and have access to
their religious and cultural sites; the right to use and control
Sec. 40. Composition.- The NCIP shall be an independent
of ceremonial object; and the right to the repatriation of
agency under the Office of the President and shall be
human remains. Accordingly, the State shall take effective
composed of seven (7) Commissioners belonging to ICCs/IPs,
measures, in cooperation with the burial sites, be preserved,
one (1) of whom shall be the Chairperson. The Commissioners
respected and protected. To achieve this purpose, it shall be
shall be appointed by the President of the Philippines from a
unlawful to:
list of recommendees submitted by authentic ICCs/IPs:
Provided, That the seven (7) Commissioners shall be
a. Explore, excavate or make diggings on archeological sites appointed specifically from each of the following ethnographic
of the ICCs/IPs for the purpose of obtaining materials of areas: Region I and the Cordilleras; Region II; the rest of
cultural values without the free and prior informed consent of Luzon; Island Groups including Mindoro, Palawan, Romblon,
the community concerned; and Panay and the rest of the Visayas; Northern and Western
Mindanao; Southern and Eastern Mindanao; and Central
Mindanao: Provided, That at least two (2) of the seven (7)
b. Deface, remove or otherwise destroy artifacts which are of
Commissioners shall be women.
great importance to the ICCs/IPs for the preservation of their
cultural heritage.
Sec. 41. Qualifications, Tenure, Compensation.- The
Chairperson and the six (6) Commissioners must be natural
Sec. 34. Right to Indigenous Knowledge Systems and
born Filipino citizens, bonafide members of ICCs/IPs as
Practices and to Develop own Sciences and Technologies.-
certified by his/her tribe, experienced in ethnic affairs and
ICCs/IPs are entitled to the recognition of the full ownership
who have worked for at least ten (10) years with an ICC/IP
and control and protection of their cultural and intellectual
community and/or any government agency involved in ICC/IP,
rights. They shall have the right to special measures to
at least 35 years of age at the time of appointment, and must
control, develop and protect their sciences, technologies and
be of proven honesty and integrity: Provided, That at least
cultural manifestations, including human and other genetic
two (2) of the seven (7) Commissioners shall be the members
resources, seeds, including derivatives of these resources,
of the Philippine Bar: Provided, further, That the members of
traditional medicines and health practices, vital medicinal
the NCIP shall hold office for a period of three (3) years, and
plants, animals and minerals, indigenous knowledge systems
may be subject to re-appointment for another term: Provided,
and practices, knowledge of the properties of fauna and flora,
furthermore, That no person shall serve for more than two (2)
oral traditions, literature, designs, and visual and performing
terms. Appointment to any vacancy shall only be for the
arts.
unexpired term of the predecessor and in no case shall a
member be appointed or designated in a temporary or acting
Sec. 35. Access to Biological and Genetic Resources.- Access capacity: Provided, finally, That the Chairperson and the
to biological and genetic resources and to indigenous Commissioners shall be entitled to compensation in
knowledge related to the conservation, utilization and accordance with the Salary Standardization Law.
enhancement of these resources, shall be allowed within
ancestral lands and domains of the ICCs/IPs only with a free
Sec. 42. Removal from Office.- Any member of the NCIP may
and prior informed consent of such communities, obtained in
be removed from office by the President, on his own initiative
accordance with customary laws of the concerned community.
or upon recommendation by any indigenous community,
before the expiration of his term for cause and after
Sec. 36. Sustainable Agro-Technical Development. - The State complying with due process requirement of law.
shall recognize the right of ICCs/IPs to a sustainable agro-
technological development and shall formulate and
Sec. 43. Appointment of Commissioners.- The President shall
implement programs of action for its effective
appoint the seven (7) Commissioners of the NCIP within ninety
implementation. The State shall likewise promote the bio-
(90) days from the effectivity of this Act.
genetic and resource management systems among the
ICCs/IPs and shall encourage cooperation among government
agencies to ensure the successful sustainable development of Sec. 44. Powers and Functions.- To accomplish its mandate,
ICCs/IPs. the NCIP shall have the following powers, jurisdiction and
function:
Sec. 37. Funds for Archeological and Historical Sites. - The
ICCs/IPs shall have the right to receive from the national a) To serve as the primary government agency through which
government all funds especially earmarked or allocated for ICCs/IPs can seek government assistance and as the medium,
the management and preservation of their archeological and thorough which such assistance may be extended;
historical sites and artifacts with the financial and technical
support of the national government agencies.
b) To review and assess the conditions of ICCs/IPs including
existing laws and policies pertinent thereto and to propose
CHAPTER VII relevant laws and policies to address their role in national
NATIONAL COMMISSION ON INDIGENOUS PEOPLES (NCIP) development;
Sec. 38. National Commission on Indigenous Cultural c) To formulate and implement policies, plans, programs and
Communities /Indigenous Peoples (NCCP).- to carry out the projects for the economic, social and cultural development of
policies herein set forth, there shall be created the National the ICCs/IPs and to monitor the implementation thereof;
Commission on ICCs/IPs (NCIP), which shall be the primary
government agency responsible for the formulation and
d) To request and engage the services and support of experts
implementation of policies, plans and programs to promote
from other agencies of government or employ private experts
and protect the rights and well-being of the ICCs/IPs and the
and consultants as may be required in the pursuit of its Sec.46. Officers within the NCIP.- The NCIP shall have the
objectives; following offices which shall be responsible for the
implementation of the policies herein after provided:
e) To issue certificate of ancestral land/domain title;
a. Ancestral Domains Office - The Ancestral Domain Office
shall be responsible for the identification, delineation and
f) Subject to existing laws, to enter into contracts,
recognition of ancestral land/domains. It shall also be
agreements, or arrangement, with government or private
responsible for the management of ancestral lands/domains in
agencies or entities as may be necessary to attain the
accordance with the master plans as well as the
objectives of this Act, and subject to the approval of the
implementation of the ancestral domain rights of the ICCs/IPs
President, to obtain loans from government lending
as provided in Chapter III of this Act. It shall also issue, upon
institutions and other lending institutions to finance its
the free and prior informed consent of the ICCs/IPs concerned,
programs;
certification prior to the grant of any license, lease or permit
for the exploitation of natural resources affecting the interests
g) To negotiate for funds and to accept grants, donations, of ICCs/IPs in protecting the territorial integrity of all ancestral
gifts and/or properties in whatever form and from whatever domains. It shall likewise perform such other functions as the
source, local and international, subject to the approval of the Commission may deem appropriate and necessary;
President of the Philippines, for the benefit of ICCs/IPs and
administer the same in accordance with the terms thereof; or
b. Office on Policy, Planning and Research - The Office on
in the absence of any condition, in such manner consistent
Policy, Planning and Research shall be responsible for the
with the interest of ICCs/IPs as well as existing laws;
formulation of appropriate policies and programs for ICCs/IPs
such as, but not limited to, the development of a Five-Year
h) To coordinate development programs and projects for the Master Plan for the ICCs/IPs. Such plan shall undergo a
advancement of the ICCs/IPs and to oversee the proper process such that every five years, the Commission shall
implementation thereof; endeavor to assess the plan and make ramifications in
accordance with the changing situations. The Office shall also
undertake the documentation of customary law and shall
i) To convene periodic conventions or assemblies of IPs to
establish and maintain a Research Center that would serve as
review, assess as well as propose policies or plans;
a depository of ethnographic information for monitoring,
evaluation and policy formulation. It shall assist the legislative
j) To advise the President of the Philippines on all matters branch of the national government in the formulation of
relating to the ICCs/IPs and to submit within sixty (60) days appropriate legislation benefiting ICCs/IPs.
after the close of each calendar year, a report of its
operations and achievements;
c. Office of Education, Culture and Health - The Office on
Culture, Education and Health shall be responsible for the
k) To submit to Congress appropriate legislative proposals effective implementation of the education, cultural and
intended to carry out the policies under this Act; related rights as provided in this Act. It shall assist, promote
and support community schools, both formal and non-formal,
for the benefit of the local indigenous community, especially
l) To prepare and submit the appropriate budget to the Office
in areas where existing educational facilities are not
of the President;
accessible to members of the indigenous group. It shall
administer all scholarship programs and other educational
m) To issue appropriate certification as a pre-condition to the rights intended for ICC/IP beneficiaries in coordination with the
grant of permit, lease, grant, or any other similar authority for Department of Education, Culture and Sports and the
the disposition, utilization, management and appropriation by Commission on Higher Education. It shall undertake, within
any private individual, corporate entity or any government the limits of available appropriation, a special program which
agency, corporation or subdivision thereof on any part or includes language and vocational training, public health and
portion of the ancestral domain taking into consideration the family assistance program and related subjects.
consensus approval of the ICCs/IPs concerned;
It shall also identify ICCs/IPs with potential training in the
n) To decide all appeals from the decisions and acts of all the health profession and encourage and assist them to enroll in
various offices within the Commission: schools of medicine, nursing, physical therapy and other allied
courses pertaining to the health profession.
o) To promulgate the necessary rules and regulations for the
implementation of this Act; Towards this end, the NCIP shall deploy a representative in
each of the said offices who shall personally perform the
foregoing task and who shall receive complaints from the
p) To exercise such other powers and functions as may be
ICCs/IPs and compel action from appropriate agency. It shall
directed by the President of the Republic of the Philippines;
also monitor the activities of the National Museum and other
and
similar government agencies generally intended to manage
and preserve historical and archeological artifacts of the
q) To represent the Philippine ICCs/IPs in all international ICCs /IPs and shall be responsible for the implementation of
conferences and conventions dealing with indigenous peoples such other functions as the NCIP may deem appropriate and
and other related concerns. necessary;
Sec. 45. Accessibility and Transparency.- Subject to such d. Office on Socio-Economic Services and Special Concerns -
limitations as may be provided by law or by rules and The Office on Socio-Economic Services and Special Concerns
regulations promulgated pursuant thereto, all official records, shall serve as the Office through which the NCIP shall
documents and papers pertaining to official acts, transactions coordinate with pertinent government agencies specially
or decisions, as well as research data used as basis for policy charged with the implementation of various basic socio-
development of the Commission shall be made accessible to economic services, policies, plans and programs affecting the
the public. ICCs/IPs to ensure that the same are properly and directly
enjoyed by them. It shall also be responsible for such other
functions as the NCIP may deem appropriate and necessary;
e. Office of Empowerment and Human Rights - The Office of subsistence and traditional activities, particularly of ICCs/IPs
Empowerment and Human Rights shall ensure that indigenous who are still nomadic and/or shifting cultivators.
socio- political, cultural and economic rights are respected
and recognized. It shall ensure that capacity building
Sec. 52. Delineation Process.- The identification and
mechanisms are instituted and ICCs/IPs are afforded every
delineation of ancestral domains shall be done in accordance
opportunity, if they so choose, to participate in all level
with the following procedures:
decision-making. It shall likewise ensure that the basic human
rights, and such other rights as the NCIP may determine,
subject to existing laws, rules and regulations are protected a. Ancestral Domains Delineated Prior to this Act - The
and promoted; provisions hereunder shall not apply to ancestral
domains/lands already delineated according to DENR
Administrative Order No. 2, series of 1993, nor to ancestral
f. Administrative Office - The Administrative Office shall
lands and domains delineated under any other
provide the NCIP with economical, efficient and effective
community/ancestral domain program prior to the enactment
services pertaining to personnel, finance, records, equipment,
of his law. ICCs/IPs enactment of this law shall have the right
security, supplies, and related services. It shall also
to apply for the issuance of a Certificate of Ancestral Domain
administer the Ancestral Domains Fund; and
Title (CADT) over the area without going through the process
outlined hereunder;
g. Legal Affairs Office - There shall be a Legal Affairs Office
which shall advice the NCIP on all legal matters concerning
b. Petition for Delineation - The process of delineating a
ICCs/IPs and which shall be responsible for providing ICCs/IPs
specific perimeter may be initiated by the NCIP with the
with legal assistance in litigation involving community
consent of the ICC/IP concerned, or through a Petition for
interest. It shall conduct preliminary investigation on the basis
Delineation filed with the NCIP, by a majority of the members
of complaints filed by the ICCs/IPs against a natural or juridical
of the ICCs/IPs;
person believed to have violated ICCs/IPs rights. On the basis
of its findings, it shall initiate the filing of appropriate legal or
administrative action to the NCIP. c. Delineation Paper - The official delineation of ancestral
domain boundaries including census of all community
members therein, shall be immediately undertaken by the
Sec. 47. Other Offices.- The NCIP shall have the power to
Ancestral Domains Office upon filing of the application by the
create additional offices as it may deem necessary subject to
ICCs/IPs concerned. Delineation will be done in coordination
existing rules and regulations.
with the community concerned and shall at all times include
genuine involvement and participation by the members of the
Sec. 48. Regional and Field Offices.- Existing regional and field communities concerned;
offices shall remain to function under the strengthened
organizational structure of the NCIP. Other field office shall be
d. Proof required - Proof of Ancestral Domain Claims shall
created wherever appropriate and the staffing pattern thereof
include the testimony of elders or community under oath, and
shall be determined by the NCIP: Provided, That in provinces
other documents directly or indirectly attesting to the
where there are ICCs/IPs but without field offices, the NCIP
possession or occupation of the area since time immemorial
shall establish field offices in said provinces.
by such ICCs/IPs in the concept of owners which shall be any
one (1) of the following authentic documents:
Sec. 49. Office of the Executive Director.- The NCIP shall
create the Office of the Executive Director which shall serve
as its secretariat. The office shall be headed by an Executive
1. Written accounts of the ICCs/IPs customs and traditions;
Director who shall be appointed by the President of the
Republic of the Philippines upon the recommendation of the
NCIP on a permanent basis. The staffing pattern of the office 2. Written accounts of the ICCs/IPs political structure and
shall be determined by the NCIP subject to existing rules and institution;
regulations.
3. Pictures showing long term occupation such as those of old
Sec. 50. Consultative Body.- A body consisting of the improvements, burial grounds, sacred places and old villages;
traditional leaders, elders and representatives from the
women and youth sectors of the different ICCs/IPs shall be
4. Historical accounts, including pacts and agreements
constituted by the NCIP from the time to time to advise it on
concerning boundaries entered into by the ICCs/IPs concerned
matters relating to the problems, aspirations and interests of
with other ICCs/IPs;
the ICCs/IPs.
b. To administer oaths, summon the parties to a controversy, Sec. 73. Persons Subject to Punishment.- If the offender is a
issue subpoenas requiring the attendance and testimony of juridical person, all officers such as, but not limited to, its
witnesses or the production of such books, papers, contracts, president, manager, or head of office responsible for their
records, agreements and other document of similar nature as unlawful act shall be criminally liable therefor, in addition to
may be material to a just determination of the matter under the cancellation of certificates of their registration and/or
investigation or hearing conducted in pursuance of this Act; license: Provided, That if the offender is a public official, the
penalty shall include perpetual disqualification to hold public
office.
c. To hold any person in contempt, directly or indirectly, and
impose appropriate penalties therefor; and
Sec. 70. No restraining Order or Preliminary Injunction - No Sec. 74. Merger of ONCC/OSCC.- The Office for Northern
inferior court of the Philippines shall have the jurisdiction to Cultural Communities (ONCC) and the Office of Southern
issue any restraining order or writ of preliminary injunction Cultural Communities (OSCC), created under Executive Order
against the NCIP or any of its duly authorized or designated Nos. 122-B and 122-C respectively, are hereby merged as
offices in any case, dispute or controversy to, or interpretation organic offices of the NCIP and shall continue to function
of this Act and other pertinent laws relating to ICCs/IPs and under a revitalized and strengthened structures to achieve
ancestral domains. the objectives of the NCIP: Provided, That the positions of
Regional Directors and below, are hereby phased-out upon
the effectivity of this Act: Provided, further, That officials and
CHAPTER IX
employees of the phased-out offices who may be qualified
ANCESTRAL DOMAINS FUND
may apply for reappointment with the NCIP and may be given
prior rights in the filing up of the newly created positions of
Sec. 71. Ancestral Domains Fund.- There is hereby created a
NCIP, subject to the qualifications set by the Placement
special fund, to be known as the Ancestral Domains Fund, an
Committee: Provided, furthermore, That in the case where an
initial amount of the One Hundred thirty million
indigenous person and a non-indigenous person with similar
pesos(P130,000,000) to cover compensation for expropriated
qualifications apply for the same position, priority shall be
lands, delineation and development of ancestral domains. An
given to the former. Officers and employees who are to be
amount of Fifty million pesos (P50,000,000) shall be sourced
phased-out as a result of the merger of their offices shall be
from the gross income of the Philippine Charity Sweepstakes
entitled to gratuity a rate equivalent to one and a half (1 1/2)
Office (PCSO) from its lotto operation, Ten millions pesos
months salary for every year of continuous and satisfactory
(P10,000,000) from the gross receipts of the travel tax of the
service rendered or the equivalent nearest fraction thereof
preceding year, the fund of the Social Reform Council
favorable to them on the basis of the highest salary received.
intended for survey and delineation of ancestral
If they are already entitled to retirement benefits or the
lands/domains, and such other source as the government may
gratuity herein provided. Officers and employees who may be
be deem appropriate. Thereafter such amount shall be
reinstated shall refund such retirement benefits or gratuity
included in the annual General Appropriations Act. Foreign as
received: Provided, finally That absorbed personnel must still
well as local funds which are made available for the ICCs/IPs
meet the qualifications and standards set by the Civil Service
through the government of the Philippines shall be coursed
and the Placement Committee herein created.
through the NCIP. The NCIP may also solicit and receive
donations, endowments shall be exempted from income or
gift taxes and all other taxes, charges or fees imposed by the Sec. 75. Transition Period.- The ONCC/OSCC shall have a
government or any political subdivision or instrumentality period of six (6) months from the effectivity of this Act within
thereof. which to wind up its affairs and to conduct audit of its
finances.
CHAPTER XI
PENALTIES
Sec. 76. Transfer of Assets/Properties.- All real and personal
properties which are vested in, or belonging to, the merged
Sec. 72. Punishable Acts and Applicable Penalties.- Any person offices as aforestated shall be transferred to the NCIP without
who commits violation of any of the provisions of this Act, further need of conveyance, transfer or assignment and shall
such as, but not limited to, authorized and/or unlawful be held for the same purpose as they were held by the former
intrusion upon any ancestral lands or domains as stated in offices: Provided, That all contracts, records and documents
Sec. 10, Chapter III, or shall commit any of the prohibited acts shall be transferred to the NCIP. All agreements and contracts
entered into by the merged offices shall remain in full force the country. In such agreements, the State shall promote the
and effect unless otherwise terminated, modified or amended development and use of local scientific and technical
by the NCIP. resources.
Sec. 77. Placement Committee.- Subject to rules on The President shall notify the Congress of every contract
government reorganization, a Placement Committee shall be entered into in accordance with this provision, within thirty
created by the NCIP, in coordination with the Civil Service days from its execution.
Commission, which shall assist in the judicious selection and
placement of personnel in order that the best qualified and
Section 3. Lands of the public domain are classified into
most deserving persons shall be appointed in the reorganized
agricultural, forest or timber, mineral lands and national
agency. The placement Committee shall be composed of
parks. Agricultural lands of the public domain may be further
seven (7) commissioners and an ICCs/IPs representative from
classified by law according to the uses to which they may be
each of the first and second level employees association in
devoted. Alienable lands of the public domain shall be limited
the Offices for Northern and Southern Cultural Communities
to agricultural lands. Private corporations or associations may
(ONCC/OSCC), nongovernment organizations (NGOs) who
not hold such alienable lands of the public domain except by
have served the community for at least five (5) years and
lease, for a period not exceeding twenty-five years, renewable
peoples organizations (POs) with at least five (5) years of
for not more than twenty-five years, and not to exceed one
existence. They shall be guided by the criteria of retention
thousand hectares in area. Citizens of the Philippines may
and appointment to be prepared by the consultative body and
lease not more than five hundred hectares, or acquire not
by the pertinent provisions of the civil service law.
more than twelve hectares thereof, by purchase, homestead,
or grant.
The Congress may, by law, allow small-scale utilization of Republic Act No. 7942: Philippine Mining Act of 1995
natural resources by Filipino citizens, as well as cooperative
fish farming, with priority to subsistence fishermen and fish- Sec. 2 Declaration of Policy. All mineral resources in public
workers in rivers, lakes, bays, and lagoons. and private lands within the territory and exclusive economic
zone of the Republic of the Philippines are owned by the
The President may enter into agreements with foreign-owned State. It shall be the responsibility of the State to promote
corporations involving either technical or financial assistance their rational exploration, development, utilization and
for large-scale exploration, development, and utilization of conservation through the combined efforts of government and
minerals, petroleum, and other mineral oils according to the the private sector in order to enhance national growth in a
general terms and conditions provided by law, based on real way that effectively safeguards the environment and protect
contributions to the economic growth and general welfare of the rights of affected communities.
(p) "Existing mining/quarrying right" means a valid and
Sec. 3 Definition of Terms. As used in and for purposes of this subsisting mining claim or permit or quarry permit or any
Act, the following terms, whether in singular or plural, shall mining lease contract or agreement covering a mineralized
mean: area granted/issued under pertinent mining laws.
(a) "Ancestral lands" refers to all lands, exclusively and (q) "Exploration" means the searching or prospecting for
actually possessed, occupied, or utilized by indigenous mineral resources by geological, geochemical or geophysical
cultural communities by themselves or through their surveys, remote sensing, test pitting, trenching, drilling, shaft
ancestors in accordance with their customs and traditions sinking, tunneling or any other means for the purpose of
since time immemorial, and as may be defined and delineated determining the existence, extent, quantity and quality
by law. thereof and the feasibility of mining them for profit.
(b) "Block" or "meridional block" means an area bounded by (r) "Financial or technical assistance agreement" means a
one-half (1/2) minute of latitude and one-half (1/2) minute of contract involving financial or technical assistance for large-
longitude, containing approximately eighty-one hectares (81 scale exploration, development, and utilization of mineral
has.). resources.
(c) "Bureau" means the Mines and Geosciences Bureau under (s) "Force majeure" means acts or circumstances beyond the
the Department of Environment and Natural Resources. reasonable control of contractor including, but not limited to,
war, rebellion, insurrection, riots, civil disturbance, blockade,
(d) "Carrying capacity" refers to the capacity of natural and sabotage, embargo, strike, lockout, any dispute with surface
human environments to accommodate and absorb change owners and other labor disputes, epidemic, earthquake,
without experiencing conditions of instability and attendant storm, flood or other adverse weather conditions, explosion,
degradation. fire, adverse action by government or by any instrumentality
or subdivision thereof, act of God or any public enemy and
(e) "Contiguous zone" refers to water, sea bottom and any cause that herein describe over which the affected party
substratum measured twenty-four nautical miles (24 n.m.) has no reasonable control.
seaward from base line of the Philippine archipelago.
(t) "Foreign-owned corporation" means any corporation,
(f) "Contract area" means land or body of water delineated for partnership, association, or cooperative duly registered in
purposes of exploration, development, or utilization of the accordance with law in which less than fifty per centum (50%)
minerals found therein. of the capital is owned by Filipino citizens.
(g) "Contractor" means a qualified person acting alone or in (u) "Government" means the government of the Republic of
consortium who is a party to a mineral agreement or to a the Philippines.
financial or technical assistance agreement.
(v) "Gross output" means the actual market value of minerals
(h) "Co-production agreement (CA)" means an agreement or mineral products from its mining area as defined in the
entered into between the Government and one or more National Internal Revenue Code.
contractors in accordance with Section 26(b) hereof.
(w) "Indigenous cultural community" means a group or tribe
(i) "Department" means the Department of Environment and of indigenous Filipinos who have continuously lived as
Natural Resources. communities on communally-bounded and defined land since
time immemorial and have succeeded in preserving,
(j) "Development" means the work undertaken to explore and maintaining, and sharing common bonds of languages,
prepare an ore body or a mineral deposit for mining, including customs, traditions, and other distinctive cultural traits, and
the construction of necessary infrastructure and related as may be defined and delineated by law.
facilities.
(x) "Joint Venture Agreement (JVA)" means an agreement
(k) "Director" means the Director of the Mines and entered into between the Government and one or more
Geosciences Bureau. contractors in accordance with Section 26(c) hereof.
(l) "Ecological profile or eco-profile" refers to geographic- (y) "Mineral processing" means the milling, benefaction or
based instruments for planners and decision-makers which upgrading of ores or minerals and rocks or by similar means
presents an evaluation of the environmental quality and to convert the same into marketable products.
carrying capacity of an area.
(z) "Mine wastes and tailings" shall mean soil and rock
(m) "Environmental Compliance Certificate (ECC)" refers to materials from surface or underground mining and milling
the document issued by the government agency concerned operations with no economic value to the generator of the
certifying that the project under consideration will not bring same.
about an unacceptable environmental impact and that the
proponent has complied with the requirements of the (aa) "Minerals" refers to all naturally occurring inorganic
environmental impact statement system. substance in solid, gas, liquid, or any intermediate state
excluding energy materials such as coal, petroleum, natural
(n) "Environmental Impact Statement (EIS)" is the document gas, radioactive materials, and geothermal energy.
which aims to identify, predict, interpret, and communicate
information regarding changes in environmental quality (ab) "Mineral agreement" means a contract between the
associated with a proposed project and which examines the government and a contractor, involving mineral production-
range of alternatives for the objectives of the proposal and sharing agreement, co-production agreement, or joint-venture
their impact on the environment. agreement.
(o) "Exclusive economic zone" means the water, sea bottom (ac) "Mineral land" means any area where mineral resources
and subsurface measured from the baseline of the Philippine are found.
archipelago up to two hundred nautical miles (200 n.m.)
offshore. (ad) "Mineral resource" means any concentration of
minerals/rocks with potential economic value.
(ae) "Mining area" means a portion of the contract area (as) "Quarry permit" means a document granted to a qualified
identified by the contractor for purposes of development, person for the extraction and utilization of quarry resources
mining, utilization, and sites for support facilities or in the on public or private lands.
immediate vicinity of the mining operations.
(at) "Quarry resources" refers to any common rock or other
(af) "Mining operation" means mining activities involving mineral substances as the Director of Mines and Geosciences
exploration, feasibility, development, utilization, and Bureau may declare to be quarry resources such as, but not
processing. limited to, andesite, basalt, conglomerate, coral sand,
diatomaceous earth, diorite, decorative stones, gabbro,
(ag) "Nongovernmental Organization (NGO)" includes granite, limestone, marble, marl, red burning clays for
nonstock, nonprofit organizations involved in activities dealing potteries and bricks, rhyolite, rock phosphate, sandstone,
with resource and environmental conservation, management serpentine, shale, tuff, volcanic cinders, and volcanic glass:
and protection. Provided, That such quarry resources do not contain metals or
metallic constituents and/or other valuable minerals in
(ah) "Net assets" refers to the property, plant and equipment economically workable quantities: Provided, further, That non-
as reflected in the audited financial statement of the metallic minerals such as kaolin, feldspar, bullquartz, quartz
contractor net of depreciation, as computed for tax purposes, or silica, sand and pebbles, bentonite, talc, asbestos, barite,
excluding appraisal increase and construction in progress. gypsum, bauxite, magnesite, dolomite, mica, precious and
semi-precious stones, and other non-metallic minerals that
(ai) "Offshore" means the water, sea bottom, and subsurface may later be discovered and which the Director declares the
from the shore or coastline reckoned from the mean low tide same to be of economically workable quantities, shall not be
level up to the two hundred nautical miles (200 n.m.) classified under the category of quarry resources.
exclusive economic zone including the archipelagic sea and
contiguous zone. (au) "Region director" means the regional director of any
mines regional office under the Department of Environment
(aj) "Onshore" means the landward side from the mean tide and Natural Resources.
elevation, including submerged lands in lakes, rivers and
creeks. (av) "Regional office" means any of the mines regional offices
of the Department of Environment and Natural Resources.
(ak) "Ore" means a naturally occurring substance or material
from which a mineral or element can be mined and/or (aw) "Secretary" means the Secretary of the Department of
processed for profit. Environment and Natural Resources.
(al) "Permittee" means the holder of an exploration permit. (ax) "Special allowance" refers to payment to the claim-
owners or surface right-owners particularly during the
(am) "Pollution control and infrastructure devices" refers to transition period from Presidential Decree No. 463 and
infrastructure, machinery, equipment and/or improvements Executive Order No. 279, series of 1987.
used for impounding, treating or neutralizing, precipitating,
filtering, conveying and cleansing mine industrial waste and (ay) "State" means the Republic of the Philippines.
tailings as well as eliminating or reducing hazardous effects of
solid particles, chemicals, liquids or other harmful by products (az) "Utilization" means the extraction or disposition of
and gases emitted from any facility utilized in mining minerals.
operations for their disposal.
CHAPTER II
(an) "President" means the President of the Republic of the GOVERNMENT MANAGEMENT
Philippines.
Sec. 4 Ownership of Mineral Resources. - Mineral resources
(ao) "Private land" refers to any land belonging to any private are owned by the State and the exploration, development,
person which includes alienable and disposable land being utilization, and processing thereof shall be under its full
claimed by a holder, claimant, or occupant who has already control and supervision. The State may directly undertake
acquired a vested right thereto under the law, although the such activities or it may enter into mineral agreements with
corresponding certificate or evidence of title or patent has not contractors.
been actually issued.
The State shall recognize and protect the rights of the
(ap) "Public land" refers to lands of the public domain which indigenous cultural communities to their ancestral lands as
have been classified as agricultural lands and subject to provided for by the Constitution.
management and disposition or concession under existing Sec. 5 Mineral Reservations. When the national interest so
laws. requires, such as when there is a need to preserve strategic
raw materials for industries critical to national development,
(aq) "Qualified person" means any citizen of the Philippines or certain minerals for scientific, cultural or ecological value,
with capacity to contract, or a corporation, partnership, the President may establish mineral reservations upon the
association, or cooperative organized or authorized for the recommendation of the Director through the Secretary. Mining
purpose of engaging in mining, with technical and financial operations in existing mineral reservations and such other
capability to undertake mineral resources development and reservations as may thereafter be established, shall be
duly registered in accordance with law at least sixty per cent undertaken by the Department or through a contractor:
(60%) of the capital of which is owned by citizens of the Provided, That a small scale mining agreement for a
Philippines: Provided, That a legally organized foreign-owned maximum aggregate area of twenty-five percent (25%) of
corporation shall be deemed a qualified person for purposes such mineral reservation, subject to valid existing mining
of granting an exploration permit, financial or technical quarrying rights as provided under Section 112 Chapter XX
assistance agreement or mineral processing permit. hereof. All submerged lands within the contiguous zone and in
the exclusive economic zone of the Philippines are hereby
(ar) "Quarrying" means the process of extracting, removing declared to be mineral reservations.
and disposing quarry resources found on or underneath the
surface of private or public land. A ten per centum (10%) share of all royalties and revenues to
be derived by the government from the development and
utilization of the mineral resources within mineral reservations
as provided under this Act shall accrue to the Mines and
Geosciences Bureau to be allotted for special projects and Sec. 13 Meridional Blocks. For purposes of the delineation of
other administrative expenses related to the exploration and the contract of mining areas under this Act, the Philippine
development of other mineral reservations mentioned in territory and its exclusive economic zone shall be divided into
Section 6 hereof. meridional blocks of one-half (1/2) minute of latitude and one-
half (1/2) minute of longitude.
Sec. 6 Other Reservations. Mining operations in reserved
lands other than mineral reservations may be undertaken by Sec. 14 Recording System. There shall be established a
the Department, subject to limitations as herein provided. In national and regional filing and recording system. A mineral
the event that the Department cannot undertake such resource database system shall be set up in the Bureau which
activities, they may be undertaken by a qualified person in shall include, among others, a mineral rights management
accordance with the rules and regulations promulgated by the system. The Bureau shall publish at least annually, a mineral
Secretary. The right to develop and utilize the minerals found rights management system. The Bureau shall publish at least
therein shall be awarded by the President under such terms annually, a mineral gazette of nationwide circulation
and conditions as recommended by the Director and containing among others, a current list of mineral rights, their
approved by the Secretary. Provided, That the party who location in the map, mining rules and regulations, other
undertook the exploration of said reservation shall be given official acts affecting mining, and other information relevant
priority. The mineral land so awarded shall be automatically to mineral resources development. A system and publication
excluded from the reservation during the term of the fund shall be included in the regular budget of the Bureau.
agreement: Provided, further, That the right of the lessee of a
valid mining contract existing within the reservation at the CHAPTER III
time of its establishment shall not be prejudiced or impaired. SCOPE OF APPLICATION
Sec. 7 Periodic Review of Existing Mineral Reservations. The Sec. 15 Scope of Application. This Act shall govern the
Secretary shall periodically review existing mineral exploration, development, utilization and processing of all
reservations for the purpose of determining whether their mineral resources.
continued existence is consistent with the national interest,
and upon the recommendation, the President may, by Sec. 16 Opening of Ancestral Lands for Mining Operations. No
proclamation, alter or modify the boundaries thereof or revert ancestral land shall be opened for mining operations without
the same to the public domain without prejudice to prior the prior consent of the indigenous cultural community
existing rights. concerned.
Sec. 8 Authority of the Department. The Department shall be Sec. 17 Royalty Payments for Indigenous Cultural
the primary government agency responsible for the Communities. In the event of an agreement with an
conservation, management, development, and proper use of indigenous cultural community pursuant to the preceding
the State's mineral resources including those in reservations, section, the royalty payment, upon utilization of the minerals
watershed areas, and lands of the public domain. The shall be agreed upon by the parties. The said royalty shall
Secretary shall have the authority to enter into mineral form part of a trust fund for the socioeconomic well-being of
agreements on behalf of the Government upon the the indigenous cultural community.
recommendation of the Director, promulgate such rules and
regulations as may be necessary to implement the intent and Sec. 18 Areas Open to Mining Operations. Subject to any
provisions of this Act. existing rights or reservations and prior agreements of all
parties, all mineral resources in public or private lands,
Sec. 9 Authority of the Bureau. The Bureau shall have direct including timber or forestlands as defined in existing laws
charge in the administration and disposition of mineral lands shall be open to mineral agreements or financial or technical
and mineral resources and shall undertake geological, mining, assistance agreement applications. Any conflict that may
metallurgical, chemical, and other researches as well as arise under this provision shall be heard and resolved by the
geological and mineral exploration surveys. The Director shall panel of arbitrators.
recommend to the Secretary the granting of mineral
agreements to duly qualified persons and shall monitor the Sec. 19 Areas Closed to Mining Applications. Mineral
compliance by the contractor of the terms and conditions of agreement or financial or technical assistance agreement
the mineral agreements. The Bureau may confiscate surety, applications shall not be allowed:
performance and guaranty bonds posted through an order to
be promulgated by the Director. The Director may deputize, (a) In military and other government reservations, except
when necessary, any member or unit of the Philippine upon prior written clearance by the government agency
National Police, barangay, duly registered nongovernmental concerned;
organization (NGO) or any qualified person to police all mining
activities. (b) Near or under public or private buildings, cemeteries,
archeological and historic sites, bridges, highways,
Sec. 10 Regional Offices. There shall be as many regional waterways, railroads, reservoirs, dams or other infrastructure
offices in the country as may be established by the Secretary, projects, public or private works including plantations or
upon the recommendation of the Director. valuable crops, except upon written consent of the
government agency or private entity concerned;
Sec. 11 Processing of Applications. The system of processing
applications for mining rights shall be prescribed in the rules (c) In areas covered by valid and existing mining rights;
and regulations of this Act.
(d) In areas expressedly prohibited by law;
Sec. 12 Survey, Charting and Delineation of Mining Areas. A
sketch plan or map of the contract or mining area prepared by (e) In areas covered by small-scale miners as defined by law
a deputized geodetic engineer suitable for publication unless with prior consent of the small-scale miners, in which
purposes shall be required during the filing of a mineral case a royalty payment upon the utilization of minerals shall
agreement or financial or technical assistance agreement be agreed upon by the parties, said royalty forming a trust
application. Thereafter, the contract or mining area shall be fund for the socioeconomic development of the community
surveyed and monumented by a deputized geodetic engineer concerned; and
or bureau geodetic engineer and the survey plan shall be
approved by the Director before the approval of the mining (f) Old growth or virgin forests, proclaimed watershed forest
feasibility. reserves, wilderness areas, mangrove forests, mossy forests,
national parks, provincial/municipal forests, parks, greenbelts,
game refuge and bird sanctuaries as defined by law in areas viability of a project covering a mining area may, within the
expressly prohibited under the National Integrated Protected term of the permit, file with the Bureau a declaration of
areas System (NIPAS) under Republic Act No. 7586, mining project feasibility accompanied by a work program for
Department Administrative Order No. 25, series of 1992 and development. The approval of the mining project feasibility
other laws. and compliance with other requirements provided in this Act
shall entitle the holder to an exclusive right to a mineral
CHAPTER IV production sharing agreement or other mineral agreements or
EXPLORATION PERMIT financial or technical assistance agreement.
Sec. 20 Exploration Permit. An exploration permit grants the Sec. 25 Transfer or Assignment. An exploration permit may be
right to conduct exploration for all minerals in specified areas. transferred or assigned to a qualified person subject to the
The Bureau shall have the authority to grant an exploration approval of the Secretary upon the recommendation of the
permit to a qualified person. Director.
Sec. 33 Eligibility. Any qualified person with technical and (k) Requiring the prominent to effectively use appropriate
financial capability to undertake large-scale exploration, anti-pollution technology and facilities to protect the
development, and utilization of mineral resources in the environment and to restore or rehabilitate mined out areas
Philippines may enter into a financial or technical assistance and other areas affected by mine tailings and other forms of
agreement directly with the Government through the pollution or destruction;
Department.
(l) The contractors shall furnish the Government records of
Sec. 34 Maximum Contract Area. The maximum contract area geologic, accounting, and other relevant data for its mining
that may be granted per qualified person, subject to operations, and that book of accounts and records shall be
relinquishment shall be: open for inspection by the government;
(a) 1,000 meridional blocks onshore; (m) Requiring the proponent to dispose of the minerals and by
(b) 4,000 meridional blocks offshore; or products produced under a financial or technical assistance
(c) Combinations of (a) and (b) provided that it shall not agreement at the highest price and more advantageous terms
exceed the maximum limits for onshore and offshore areas.
and conditions as provided for under the rules and regulations Sec. 42 Small-scale Mining. Small-scale mining shall continue
of this Act; to be governed by Republic Act No. 7076 and other pertinent
laws.
(n) Provide for consultation and arbitration with respect to the
interpretation and implementation of the terms and conditions CHAPTER VIII
of the agreements; and QUARRY RESOURCES
(o) Such other terms and conditions consistent with the Sec. 43 Quarry Permit. Any qualified person may apply to the
Constitution and with this Act as the Secretary may deem to provincial/city mining regulatory board for a quarry permit on
be for the best interest of the State and the welfare of the privately-owned lands and/or public lands for building and
Filipino people. construction materials such as marble, basalt, andesite,
conglomerate, tuff, adobe, granite, gabbro, serpentine, inset
Sec. 36 Negotiations. A financial or technical assistance filing materials, clay for ceramic tiles and building bricks,
agreement shall be negotiated by the Department and pumice, perlite and other similar materials that are extracted
executed and approved by the President. The President shall by quarrying from the ground. The provincial governor shall
notify Congress of all Financial or technical assistance grant the permit after the applicant has complied with all the
agreements within thirty (30) days from execution and requirements as prescribed by the rules and regulations.
approval thereof.
The maximum area which a qualified person may hold at any
Sec. 37 Filing and Evaluation of Financial or Technical one time shall be five hectares (5 has.): Provided, That in
Assistance Agreement Proposals. All financial or technical large-scale quarry operations involving cement raw materials,
assistance agreement proposals shall be filed with the Bureau marble, granite, sand and gravel and construction
after payment of the required processing fees. If the proposal agreements, a qualified person and the government may
is found to be sufficient and meritorious in form and enter into a mineral agreement as defined herein.
substance after evaluation, it shall be recorded with the
appropriate government agency to give the proponent the A quarry permit shall have a term of five (5) years, renewable
prior right to the area covered by such proposal: Provided, for like periods but not to exceed a total term of twenty-five
That existing mineral agreements, financial or technical (25) years, No quarry permit shall be issued or granted on any
assistance agreements and other mining rights are not area covered by a mineral agreement, or financial or technical
impaired or prejudiced thereby. The Secretary shall assistance agreement.
recommend its approval to the President.
Sec. 44 Quarry Fee and Taxes. A permittee shall, during the
Sec. 38 Terms of Financial or Technical Assistance Agreement. term of his permit, pay a quarry fee as provided for under the
A financial or technical assistance agreement shall have a implementing rules and regulations. The permittee shall also
term not exceeding twenty-five (25) years to start from the pay the excise tax as provided by pertinent laws.
execution thereof, renewable for not more than twenty-five
(25) years under such terms and conditions as may be Sec. 45 Cancellation of Quarry Permit. A quarry permit may be
provided by law. cancelled by the provincial governor for violations of the
provisions of this Act or its implementing rules and regulations
Sec. 39 Option to Convert into a Mineral Agreement. The or the terms and conditions of said permit: Provided, That
contractor has the option to convert the financial or technical before the cancellation of such permit, the holder thereof shall
assistance agreement to a mineral agreement at any time be given the opportunity to be heard in an investigation
during the term of the agreement, if the economic viability of conducted for the purpose.
the contract area is found to be inadequate to justify large-
scale mining operations, after proper notice to the Secretary Sec. 46 Commercial Sand and Gravel Permit. Any qualified
as provided for under the implementing rules and regulations: person may be granted a permit by the provincial governor to
Provided, That the mineral agreement shall only be for the extract and remove sand and gravel or other loose or
remaining period of the original agreement. unconsolidated materials which are used in their natural state,
without undergoing processing from an area of not more than
In the case of a foreign contractor, it shall reduce its equity to five hectares (5 has.) and in such quantities as may be
forty percent (40%) in the corporation, partnership, specified in the permit.
association, or cooperative. Upon compliance with this
requirement by the contractor, the Secretary shall approve Sec. 47 Industrial Sand and Gravel Permit. Any qualified
the conversion and execute the mineral production-sharing person may be granted an industrial sand and gravel permit
agreement. by the Bureau for the extraction of sand and gravel and other
loose or unconsolidated materials that necessitate the use of
Sec. 40 Assignment/Transfer. A financial or technical mechanical processing covering an area of more than five
assistance agreement may be assigned or transferred, in hectares (5 has.) at any one time. The permit shall have a
whole or in part, to a qualified person subject to the prior term of five (5) years, renewable for a like period but not to
approval of the President: Provided, That the President shall exceed a total term of twenty-five (25) years.
notify Congress of every financial or technical assistance
agreement assigned or converted in accordance with this Sec. 48 Exclusive Sand and Gravel Permit. Any qualified
provision within thirty (30) days from the date of the approval person may be granted an exclusive sand and gravel permit
thereof. by the provincial governor to quarry and utilize sand and
gravel or other loose or unconsolidated materials from public
Sec. 41 Withdrawal from Financial or Technical Assistance lands for his own use, provided that there will be no
Agreement. The contractor shall manifest in writing to the commercial disposition thereof.
Secretary his intention to withdraw from the agreement, if in
his judgement the mining project is no longer economically A mineral agreement or a financial technical assistance
feasible, even after he has exerted reasonable diligence to agreement contractor shall, however, have the right to extract
remedy the cause or the situation. The Secretary may accept and remove sand and gravel and other loose unconsolidated
the withdrawal: Provided, That the contractor has complied or materials without need of a permit within the area covered by
satisfied all his financial, fiscal or legal obligations. the mining agreement for the exclusive use in the mining
operations: Provided, That monthly reports of the quantity of
CHAPTER VII materials extracted therefrom shall be submitted to the mines
SMALL-SCALE MINING regional office concerned: Provided, further, That said right
shall be coterminous with the expiration of the agreement.
Sec. 57 Expenditure for Community Development and Science
Holders of existing mining leases shall likewise have the same and Mining Technology. A contractor shall assist in the
rights as that of a contractor: Provided, That said right shall development of its mining community, the promotion of the
be coterminous with the expiry dates of the lease. general welfare of its inhabitants, and the development of
science and mining technology.
Sec. 49 Government Gratuitous Permit. Any government
entity or instrumentality may be granted a gratuitous permit Sec. 58 Credited Activities. Activities that may be credited as
by the provincial governor to extract sand and gravel, quarry expenditures for development of mining communities, and
or loose unconsolidated materials needed in the construction science and mining technology are the following:
of building and/or infrastructure for public use or other
purposes over an area of not more than two hectares (2 has.) (a) Any activity or expenditure intended to enhance the
for a period coterminous with said construction. development of the mining and neighboring communities of a
mining operation other than those required or provided for
Sec. 50 Private Gratuitous Permit. Any owner of land may be under existing laws, or collective bargaining agreements, and
granted a private gratuitous permit by the provincial the like: and
governor.
(b) Any activity or expenditure directed towards the
Sec. 51 Guano Permit. Any qualified person may be granted a development of geosciences and mining technology such as,
guano permit by the provincial governor to extract and utilize but not limited to, institutional and manpower development,
loose unconsolidated guano and other organic fertilizer and basic and applied researches. Appropriate supervision
materials in any portion of a municipality where he has and control mechanisms shall be prescribed in the
established domicile. The permit shall be for specific caves implementing rules and regulations of this Act.
and/or for confined sites with locations verified by the
Department's field officer in accordance with existing rules Sec. 59 Training and Development. A contractor shall
and regulations. maintain an effective program of manpower training and
development throughout the term of the mineral agreement
Sec. 52 Gemstone Gathering Permit. Any qualified person may and shall encourage and train Filipinos to participate in all
be granted a non-exclusive gemstone gathering permit by the aspects of the mining operations, including the management
provincial governor to gather loose stones useful as thereof. For highly-technical and specialized mining
gemstones in rivers and other locations. operations, the contractor may, subject to the necessary
government clearances, employ qualified foreigners.
CHAPTER IX
TRANSPORT, SALE AND PROCESSING OF MINERALS Sec. 60 Use of Indigenous Goods, Services and Technologies.
A contractor shall give preference to the use of local goods,
Sec. 53 Ore Transport Permit. A permit specifying the origin services and scientific and technical resources in the mining
and quantity of non-processed mineral ores or minerals shall operations, where the same are of equivalent quality, and are
be required for their transport. Transport permits shall be available on equivalent terms as their imported counterparts.
issued by the mines regional director who has jurisdiction over
the area where the ores were extracted. In the case of Sec. 61 Donations/Turn Over of Facilities. Prior to cessation of
mineral ores or minerals being transported from the small- mining operations occasioned by abandonment or withdrawal
scale mining areas to the custom mills or processing plants, of operations, on public lands by the contractor, the latter
the Provincial Mining Regulatory Board (PMRB) concerned shall have a period of one (1) year therefrom within which to
shall formulate their own policies to govern such transport of remove his improvements; otherwise, all the social
ores produced by small-scale miners. The absence of a permit infrastructure and facilities shall be turned over or donated
shall be considered as prima facie evidence of illegal mining tax-free to the proper government authorities, national or
and shall be sufficient cause for the Government to confiscate local, to ensure that said infrastructure and facilities are
the ores or minerals being transported, the tools and continuously maintained and utilized by the host and
equipment utilized, and the vehicle containing the same. Ore neighboring communities.
samples not exceeding two metric tons (2 m.t.) to be used
exclusively for assay or pilot test purposes shall be exempted Sec. 62 Employment of Filipinos. A contractor shall give
from such requirement. preference to Filipino citizens in all types of mining
employment within the country insofar as such citizens are
Sec. 54 Mineral Trading Registration. No person shall engage qualified to perform the corresponding work with reasonable
in the trading of mineral products, either locally or efficiency and without hazard to the safety of the operations.
internationally, unless registered with the Department of The contractor, however, shall not be hindered from hiring
Trade and Industry and accredited by the Department, with a employees of his own selection, subject to the provision of
copy of said registration submitted to the Bureau. Commonwealth Act No. 613, as amended, for technical and
specialized work which in his judgement and with the
Sec. 55 Minerals Processing Permit. No person shall engage in approval of the Director, required highly-specialized training
the processing of minerals without first securing a minerals or long experience in exploration, development or utilization
processing permit from the Secretary. Minerals processing of mineral resources: Provided, That in no case shall each
permit shall be for a period of five (5) years renewable for like employment exceed five (5) years or the payback period as
periods but not to exceed a total term of twenty-five (25) represented in original project study, whichever is longer:
years. In the case of mineral ores or minerals produced by the Provided, further, That each foreigner employed as mine
small-scale miners, the processing thereof as well as the manager, vice-president for operations or in an equivalent
licensing of their custom mills, or processing plants shall managerial position in charge of mining, milling, quarrying or
continue to be governed by the provisions of Republic Act No. drilling operation shall:
7076.
(a) Present evidence of his qualification and work experience;
Sec. 56 Eligibility of Foreign-owned/-controlled Corporation. A or
foreign-owned/-controlled corporation may be granted a
mineral processing permit. (b) Shall pass the appropriate government licensure
examination; or
CHAPTER X
DEVELOPMENT OF MINING COMMUNITIES, SCIENCE (c) In special cases, may be permitted to work by the Director
AND MINING TECHNOLOGY for a period not exceeding one (1) year: Provided, however,
That if reciprocal privileges are extended to Filipino nationals
in the country of domicile, the Director may grant waivers or agencies to maintain ecological balance, and prior
exemptions. consultation with the local government units,
nongovernmental and people's organizations and other
CHAPTER XI concerned sectors of the community: Provided, That a
SAFETY AND ENVIRONMENTAL PROTECTION completed ecological profile of the proposed mining area shall
also constitute part of the environmental impact assessment.
Sec. 63 Mines Safety and Environmental Protection. All People's organizations and non-governmental organizations
contractors and permittees shall strictly comply with all the shall be allowed and encourage to participate in ensuring that
mines safety rules and regulations as may be promulgated by contractors/permittees shall observe all the requirements of
the Secretary concerning the safe and sanitary upkeep of the environmental protection.
mining operations and achieve waste-free and efficient mine
development. Personnel of the Department involved in the Sec. 71 Rehabilitation. Contractors and permittees shall
implementation of mines safety, health and environmental technically and biologically rehabilitate the excavated mined-
rules and regulations shall be covered under Republic Act No. out, tailings covered and disturbed areas to the condition of
7305. environmental safety, as may be provided in the
implementing rules and regulations of this Act. A mine
Sec. 64 Mine Labor. No person under sixteen (16) years of age rehabilitation fund shall be created, based on the contractor's
shall be employed in any phase of mining operations and no approved work program, and shall be deposited as a trust
person under eighteen (18) years of age shall be employed fund in a government depository bank and used for physical
underground in a mine. and social rehabilitation of areas and communities affected by
mining activities and for research on the social, technical and
Sec. 65 Mine Supervision. All mining and quarrying operations preventive aspects of rehabilitation. Failure to fulfill the above
that employ more than fifty (50) workers shall have at least obligation shall mean immediate suspension or closure of the
one (1) licensed mining engineer with at least five (5) years of mining activities of the contractor/permittee concerned.
experience in mining operations, and one (1) registered
foreman. CHAPTER XII
AUXILIARY MINING RIGHTS
Sec. 66 Mine Inspection. The regional director shall have
exclusive jurisdiction over the safety inspection of all Sec. 72 Timber Rights. Any provision of law to the contrary
installations, surface or underground, in mining operations at notwithstanding, a contractor may be ranged a right to cut
reasonable hours of the day or night and as much as possible trees or timber within his mining area as may be necessary
in a manner that will not impede or obstruct work in progress for his mining operations subject to forestry laws, rules and
of a contractor or permittee. regulations: Provided, That if the land covered by the mining
area is already covered by existing timber concessions, the
Sec. 67 Power to Issue Orders. The mines regional director volume of timber needed and the manner of cutting and
shall, in consultation with the Environmental Management removal thereof shall be determined by the mines regional
Bureau, forthwith or within such time as specified in his order, director, upon consultation with the contractor, the timber
require the contractor to remedy any practice connected with concessionaire/permittee and the Forest Management Bureau
mining or quarrying operations, which is not in accordance of the Department: Provided, further, That in case of
with safety and anti-pollution laws and regulations, which is disagreement between the contractor and the timber
not in accordance with safety and anti-pollution laws and concessionaire, the matter shall be submitted to the Secretary
regulations. In case of imminent danger to life or property, the whose decision shall be final. The contractor shall perform
mines regional director may summarily suspend the mining or reforestation work within his mining area in accordance with
quarrying operations until the danger is removed, or forestry laws, rules and regulations.
appropriate measures are taken by the contractor or
permittee. Sec. 73 Water Rights. A contractor shall have water rights for
mining operations upon approval of application with the
Sec. 68 Report of Accidents. In case of any incident or appropriate government agency in accordance with existing
accident, causing or creating the danger of loss of life or water laws, rules and regulations promulgated thereunder:
serious physical injuries, the person in charge of operations Provided, That water rights already granted or vested through
shall immediately report the same to the regional office where long use, recognized and acknowledged by local customs,
the operations are situated. Failure to report the same without laws, and decisions of courts shall not thereby be impaired:
justifiable reason shall be a cause for the imposition of Provided further, That the Government reserves the right to
administrative sanctions prescribed in the rules and regulate water rights and the reasonable and equitable
regulations implementing this Act. distribution of water supply so as to prevent the monopoly of
the use thereof.
Sec. 69 Environmental Protection. Every contractor shall
undertake an environmental protection and enhancement Sec. 74 Right to Possess Explosives. A contractor/ exploration
program covering the period of the mineral agreement or permittee shall have the right to possess and use explosives
permit. Such environmental program shall be incorporated in within his contract/permit area as may be necessary for his
the work program which the contractor or permittee shall mining operations upon approval of an application with the
submit as an accompanying document to the application for a appropriate government agency in accordance with existing
mineral agreement or permit. The work program shall include laws, rules and regulations promulgated thereunder: Provided,
not only plans relative to mining operations but also to That the Government reserves the right to regulate and
rehabilitation, regeneration, revegetation and reforestation of control the explosive accessories to ensure safe mining
mineralized areas, slope stabilization of mined-out and tailings operations.
covered areas, aquaculture, watershed development and
water conservation; and socioeconomic development. Sec. 75 Easement Rights. When mining areas are so situated
that for purposes of more convenient mining operations it is
Sec. 70 Environmental Impact Assessment (EIA). Except necessary to build, construct or install on the mining areas or
during the exploration period of a mineral agreement or lands owned, occupied or leased by other persons, such
financial or technical assistance agreement or an exploration infrastructure as roads, railroads, mills, waste dump sites,
permit, an environmental clearance certificate shall be tailings ponds, warehouses, staging or storage areas and port
required based on an environmental impact assessment and facilities, tramways, runways, airports, electric transmission,
procedures under the Philippine Environmental Impact telephone or telegraph lines, dams and their normal flood and
Assessment System including Sections 26 and 27 of the Local catchment areas, sites for water wells, ditches, canals, new
Government Code of 1991 which require national government river beds, pipelines, flumes, cuts, shafts, tunnels, or mills, the
contractor, upon payment of just compensation, shall be
entitled to enter and occupy said mining areas or lands. (c) To conduct hearings on all matters within its jurisdiction,
proceed to hear and determine the disputes in the absence of
Sec. 76 Entry into Private Lands and Concession Areas. any party thereto who has been summoned or served with
Subject to prior notification, holders of mining rights shall not notice to appear, conduct its proceedings or any part thereof
be prevented from entry into private lands and concession in public or in private, adjourn its hearings at any time and
areas by surface owners, occupants, or concessionaires when place, refer technical matters or accounts to an expert and to
conducting mining operations therein: Provided, That any accept his report as evidence after hearing of the parties upon
damage done to the property of the surface owner, occupant, due notice, direct parties to be joined in or excluded from the
or concessionaire as a consequence of such operations shall proceedings, correct, amend, or waive any error, defect or
be properly compensated as may be provided for in the irregularity, whether in substance or in form, give all such
implementing rules and regulations: Provided, further, That to directions at it may deem necessary or expedient in the
guarantee such compensation, the person authorized to determination of the dispute before it and dismiss the mining
conduct mining operation shall, prior thereto, post a bond with dispute as part thereof, where it is trivial or where further
the regional director based on the type of properties, the proceedings by the Board are not necessary or desirable;
prevailing prices in and around the area where the mining
operations are to be conducted, with surety or sureties (1) to hold any person in contempt, directly or indirectly, and
satisfactory to the regional director. impose appropriate penalties therefor; and
CHAPTER XIII (2) To enjoin any or all acts involving or arising from any case
SETTLEMENT OF CONFLICTS pending before it which, if not restrained forthwith, may cause
grave or irreparable damage to any of the parties to the case
Sec. 77 Panel of Arbitrators. There shall be a panel of or seriously affect social and economic stability.
arbitraters in the regional office of the Department composed
of three (3) members, two (2) of whom must be members of In any proceeding before the Board, the rules of evidence
the Philippine Bar in good standing and one licensed mining prevailing in courts of law or equity shall not be controlling
engineer or a professional in a related field, and duly and it is the spirit and intention of this Act that shall govern.
designated by the Secretary as recommended by the Mines The Board shall use every and all reasonable means to
and Geosciences Bureau Director. Those designated as ascertain the facts in each case speedily and objectively and
members of the panel shall serve as such in addition to their without regard to technicalities of law or procedure, all in the
work in the Department without receiving any additional interest of due process. In any proceeding before the Board,
compensation. As much as practicable, said members shall the parties may be represented by legal counsel. the findings
come from the different bureaus of the Department in the of fact of the Board shall be conclusive and binding on the
region. The presiding officer shall be on a yearly basis. The parties and its decision or order shall be final and executory.
members of the panel shall perform their duties and
obligations in hearing and deciding cases until their A petition for review by certiorari and question of law may be
designation is withdrawn or revoked by the Secretary. Within filed by the aggrieved party with the Supreme Court within
thirty (30) working days, after the submission of the case by thirty (30) days from receipt of the order or decision of the
the parties for decision, the panel shall have exclusive and Board.
original jurisdiction to hear and decide on the following:
CHAPTER XIV
(a) Disputes involving rights to mining areas; GOVERNMENT SHARE
(b) Disputes involving mineral agreements or permits; Sec. 80 Government Share in Mineral Production Sharing
Agreement. The total government share in a mineral
(c) Disputes involving surface owners, occupants and production sharing agreement shall be the excise tax on
claimholders/concessionaires; and mineral products as provided in Republic Act No. 7729,
amending Section 151(a) of the National Internal Revenue
(d) Disputes pending before the Bureau and the Department Code, as amended.
at the date of the effectivity of this Act.
Sec. 81 Government Share in Other Mineral Agreements. The
Sec. 78 Appellate Jurisdiction. The decision or order of the share of the Government in co-production and joint-venture
panel of arbitrators may be appealed by the party not agreements shall be negotiated by the Government and the
satisfied thereto to the mines Adjudication Board within contractor taking into consideration the: (a) capital
fifteen (15) days from receipt thereof which must decide the investment of the project, (b) risks involved, (c) contribution
case within thirty (30) days from submission thereof for of the project to the economy, and (d) other factors that will
decision. provide for a fair and equitable sharing between the
Government and the contractor. The Government shall also
Sec. 79 Mines Adjudication Board. The Mines Adjudication be entitled to compensations for its other contributions which
Board shall be composed of three (3) members. The Secretary shall be agreed upon by the parties, and shall consist, among
shall be the chairman with the Director of the Mines and other things, the contractor's income tax, excise tax, special
Geosciences Bureau and the Undersecretary for Operations of allowance, withholding tax due from the contractor's foreign
the Department as member thereof. The Board shall have the stockholders arising from dividend or interest payments to the
following powers and functions: said foreign stockholders, in case of a foreign national, and all
such other taxes, duties and fees as provided for under
(a) To promulgate rules and regulations governing the hearing existing laws.
and disposition of cases before it, as well as those pertaining
to its internal functions, and such rules and regulations as The Government share in financial or technical assistance
may be necessary to carry out its functions; agreement shall consist of, among other things, the
contractor's corporate income tax, excise tax, special
(b) To administer oaths, summon the parties to a controversy, allowance, withholding tax due from the contractor's foreign
issue subpoenas requiring the attendance and testimony of stockholders arising from dividend or interest payments to the
witnesses or the production of such books, paper, contracts, said foreign stockholder in case of a foreign national and all
records, statement of accounts, agreements, and other such other taxes, duties and fees as provided for under
documents as may be material to a just determination of the existing laws.
matter under investigation, and to testify in any investigation
or hearing conducted in pursuance of this Act;
The collection of government share in financial or technical thereafter. It shall be paid to the treasurer of the municipality
assistance agreement shall commence after the financial or or city where the onshore mining areas are located, or to the
technical assistance agreement contractor has fully recovered Director in case of offshore mining areas. For this purpose, the
its pre-operating expenses, exploration, and development appropriate officer shall submit to the treasurer of the
expenditures, inclusive. municipality or city where the onshore mining area is located,
a complete list of all onshore mining rights registered with his
Sec. 82 Allocation of Government Share. The Government office, indicating therein the names of the holders, area in
share as referred to in the preceding sections shall be shared hectares, location, and date registered. If the fee is not paid
and allocated in accordance with Sections 290 and 292 of on the date specified, it shall be increased by twenty-five per
Republic Act No. 7160 otherwise known as the Local centum (25%).
Government Code of 1991. In case the development and
utilization of mineral resources is undertaken by a Sec. 88 Allocation of Occupation Fees. Thirty per centum
government-owned or controlled corporation, the sharing and (30%) of all occupational fees collected from holders of mining
allocation shall be in accordance with Sections 291 and 292 of rights in onshore mining areas shall accrue to the province
the said Code. and seventy per centum (70%) to the municipality in which
the onshore mining areas are located. In a chartered city, the
CHAPTER XV full amount shall accrue to the city concerned.
TAXES AND FEES
Sec. 89 Filing Fees and Other Charges. The Secretary is
Sec. 83 Income Taxes. After the lapse of the income tax authorized to charge reasonable filing fees and other charges
holiday as provided for in the Omnibus Investments Code, the as he may prescribe in accordance with the implementing
contractor shall be liable to pay income tax as provided in the rules and regulations.
National Internal Revenue Code, as amended.
CHAPTER XVI
Sec. 84 Excise Tax on Mineral Products. The contractor shall INCENTIVES
be liable to pay the excise tax on mineral products as
provided for under Section 151 of the National Internal Sec. 90 Incentives. The contractors in mineral agreements,
Revenue Code: Provided, however, That with respect to a and financial or technical assistance agreements shall be
mineral production sharing agreement, the excise tax on entitled to the applicable fiscal and non-fiscal incentives as
mineral products shall be the government share under said provided for under Executive Order No. 226, otherwise known
agreement. as the Omnibus Investments Code of 1987: Provided, That
holders of exploration permits may register with the Board of
Sec. 85 Mine Wastes and Tailings Fees. A semi-annual fee to Investments and be entitled to the fiscal incentives granted
be known as mine wastes and tailings fee is hereby imposed under the said Code for the duration of the permits or
on all operating mining companies in accordance with the extensions thereof: Provided, further, That mining activities
implementing rules and regulations. The mine wastes and shall always be included in the investment priorities plan.
tailings fee shall accrue to a reserve fund to be used
exclusively for payment for damages to: Sec. 91 Incentives for Pollution Control Devices. Pollution
control devices acquired, constructed or installed by
(a) Lives and personal safety; contractors shall not be considered as improvements on the
(b) Lands, agricultural crops and forest products, marine life land or building where they are placed, and shall not be
and aquatic resources, cultural resources; and subject to real property and other taxes or assessments:
(c) Infrastructure and the revegetation and rehabilitation of Provided, however, That payment of mine wastes and tailings
silted farm lands and other areas devoted to agriculture and fees is not exempted.
fishing caused by mining pollution.
Sec. 92 Income Tax-Carry Forward of Losses. A net operating
This is in addition to the suspension or closure of the activities loss without the benefit of incentives incurred in any of the
of the contractor at any time and the penal sanctions imposed first ten (10) years of operations may be carried over as a
upon the same. deduction from taxable income for the next five (5) years
immediately following the year of such loss. The entire
The Secretary is authorized to increase mine wastes and amount of the loss shall be carried over to the first of the five
tailings fees, when public interest so requires, upon the (5) taxable years following the loss, and any portion of such
recommendation of the Director. loss which exceeds the taxable income of such first year shall
be deducted in like manner from the taxable income of the
Sec. 86 Occupation Fees. There shall be collected from any next remaining four (4) years.
holder of a mineral agreement, financial or technical
assistance agreement or exploration permit on public or Sec. 93 Income Tax-Accelerated Depreciation. Fixed assets
private lands, an annual occupation fee in accordance with may be depreciated as follows:
the following schedule;
(a) To the extent of not more than twice as fast as the normal
(a) For exploration permit - Five pesos (P5.00) per hectare or rate of depreciation or depreciated at normal rate of
fraction thereof per annum; depreciation if the expected life is ten (10) years or less; or
(b) For mineral agreements and financial or technical (b) Depreciated over any number of years between five (5)
assistance agreements - Fifty pesos (P50.00) per hectare or years and the expected life if the latter is more than ten (10)
fraction thereof per annum; and years, and the depreciation thereon allowed as deduction
from taxable income: Provided, That the contractor notifies
(c) For mineral reservation - One hundred pesos (P100.00) per the Bureau of Internal Revenue at the beginning of the
hectare or fraction thereof per annum. depreciation period which depreciation rate allowed by this
section will be used.
The Secretary is authorized to increase the occupation fees
provided herein when the public interest so requires, upon In computing for taxable income, unless otherwise provided in
recommendation of the Bureau Director. this Act, the contractor may, at his option, deduct exploration
and development expenditures accumulated at cost as of the
Sec. 87 Manner of payment of Fees. The fees shall be paid on date of the prospecting or exploration and development
the date the mining agreement is registered with the expenditures paid or incurred during the taxable year:
appropriate office and on the same date every year Provided, That the total amount deductible for exploration and
development expenditures shall not exceed twenty-five per Sec. 96 Violation of the Terms and Conditions of Permits or
centum (25%) of the net income from mining operations. The Agreements. Violations of the terms and conditions of the
actual exploration and development expenditures minus the permits or agreements shall be a sufficient ground for
twenty-five per centum (25%) net income from mining shall cancellation of the same.
be carried forward to the succeeding years until fully
deducted. Sec. 97 Non-payment of taxes and Fees. Failure to pay the
taxes and fees due the Government for two (2) consecutive
Net income from mining operation is defined as gross income years shall cause the cancellation of the exploration permit,
from operations less allowable deductions which are mineral agreement, financial or technical assistance
necessary or related to mining operations. Allowable agreement and other agreements and the re-opening of the
deductions shall include mining, milling and marketing area subject thereof to new applicants.
expenses, depreciation or properties directly used in the
mining operations. This paragraph shall not apply to Sec. 98 Suspension or Cancellation of Tax Incentives and
expenditures for the acquisition or improvement of property Credits. Failure to abide by the terms and conditions of tax
of a character which is subject to the allowances for incentives and credits shall cause the suspension or
depreciation. cancellation of said incentives and credits.
Sec. 94 Investment Guarantees. The contractor shall be Sec. 99 Falsehood or Omission of Facts in the Statement. All
entitled to the basic rights and guarantees provided in statements made in the exploration permit, mining
the Constitution and such other rights recognized by the agreement and financial or technical assistance shall be
government as enumerated hereunder. considered as conditions and essential parts thereof and any
falsehood in said statements or omission of facts therein
(a) Repatriation of investments. The right to repatriate the which may alter, change or affect substantially the facts set
entire proceeds of the liquidation of the foreign investment in forth in said statements may cause the revocation and
the currency in which the investment was originally made and termination of the exploration permit, mining agreement and
at the exchange rate prevailing at the time of repatriation. financial or technical assistance agreement.
(b) Remittance of earnings. The right to remit earnings from CHAPTER XVIII
the investment in the currency in which the foreign ORGANIZATIONAL AND INSTITUTIONAL ARRANGEMENT
investment was originally made 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 transformed into a line bureau
(c) Foreign loans and contracts. The right to remit at the consistent with Section 9 of this Act: Provided, That under the
exchange rate prevailing at the time of remittance such sums Mines and Geosciences Bureau shall be the necessary mines
as may be necessary to meet the payments of interest and regional, district and other pertinent offices - the number and
principal on foreign loans and foreign obligations arising from specific functions of which shall be provided in the
financial or technical assistance contracts. implementing rules and regulations of this Act.
(d) Freedom from expropriation. The right to be free from CHAPTER XIX
expropriation by the government of the property represented PENAL PROVISIONS
by investments or loans, or of the property of the enterprise
except for public use or in the interest of national welfare or Sec. 101 False Statements. Any person who knowingly
defense and upon payment of just compensation. In such presents any false application, declaration, or evidence to the
cases, foreign investors or enterprises shall have the right to Government or publishes or causes to be published any
remit sums received as compensation for the expropriated prospectus or other information containing any false
property in the currency in which the investment was statement relating to mines, mining operations or mineral
originally made and at the exchange rate prevailing at the agreements, financial or technical assistance agreements and
time of remittance. permits shall, upon conviction, be penalized by a fine of not
exceeding Ten Thousand Pesos (P10,000.00).
(e) Requisition of investment. The right to be free from
requisition of the property represented by the investment or Sec. 102 Illegal Exploration. Any person undertaking
of the property of the enterprises except in case of war or exploration work without the necessary exploration permit
national emergency and only for the duration thereof. Just shall, upon conviction, be penalized by a fine of not exceeding
compensation shall be determined and paid either at the time Fifty thousand pesos (P50,000.00).
or immediately after cessation of the state of war or national
emergency. Payments received as compensation for the Sec. 103 Theft of Minerals. Any person extracting minerals
requisitioned property may be remitted in the currency in and disposing the same without a mining agreement, lease,
which the investments were originally made and at the permit, license, or steals minerals or ores or the products
exchange rate prevailing at the time of remittance. thereof from mines or mills or processing plants shall, upon
conviction, be imprisoned from six (6) months to six (6) years
(f) Confidentiality. Any confidential information supplied by or pay a fine from Ten thousand pesos (P10,000.00) to Twenty
the contractor pursuant to this Act and its implementing rules thousand pesos (P20,000.00), or both, at the discretion of the
and regulations shall be treated as such by the department appropriate court. In addition, he shall be liable to pay
and the Government, and during the term of the project to damages and compensation for the minerals removed,
which it relates. extracted, and disposed of. In the case of associations,
partnerships, or corporations, the president and each of the
CHAPTER XVII directors thereof shall be responsible for the acts committed
GROUND FOR CANCELLATION, REVOCATION, AND by such association, corporation, or partnership.
TERMINATION
Sec. 104 Destruction of Mining Structures. Any person who
Sec. 95 Late or Non-filing of Requirements. Failure of the willfully destroys or damages structures in or on the mining
permittee or contractor to comply with any of the area or on the mill sites shall, upon conviction, be imprisoned
requirements provided in this Act or in its implementing rules for a period not to exceed five (5) years and shall, in addition,
and regulations, without a valid reason, shall be sufficient pay compensation for the damages which may have been
ground from the suspension of any permit or agreement caused thereby.
provided under this Act.
Sec. 105 Mines Arson. Any person who willfully sets fire to any (c) "Small-scale miners" refer to Filipino citizens who,
mineral stockpile, mine or workings, fittings or a mine, shall individually or in the company of other Filipino citizens,
be guilty of arson and shall be punished, upon conviction, by voluntarily form a cooperative duly licensed by the
the appropriate court in accordance with the provisions of the Department of Environment and Natural Resources to engage,
Revised Penal Code and shall, in addition, pay compensation under the terms and conditions of a contract, in the extraction
for the damages caused thereby. or removal of minerals or ore-bearing materials from the
ground;
Sec. 106 Willful Damage to a Mine. Any person who willfully
damages a mine, unlawfully causes water to run into a mine,
(d) "Small-scale mining contract" refers to co-production, joint
or obstructs any shaft or passage to a mine, or renders
venture or mineral production sharing agreement between
useless, damages or destroys any machine, appliance,
the State and a small-scale mining contractor for the small-
apparatus; rope, chain, tackle, or any other things used in a
scale utilization of a plot of mineral land;
mine, shall be punished, upon conviction, by the appropriate
court, by imprisonment not exceeding a period of five (5)
years and shall, in addition, pay compensation for the (e) "Small-scale mining contractor" refers to an individual or a
damages caused thereby. cooperative of small-scale miners, registered with the
Securities and Exchange Commission or other appropriate
Sec. 107 Illegal Obstruction to Permittees or Contractors. Any government agency, which has entered into an agreement
person who, without justifiable cause, prevents or obstructs with the State for the small-scale utilization of a plot of
the holder of any permit, agreement or lease from mineral land within a people's small-scale mining area;
undertaking his mining operations shall be punished, upon
conviction by the appropriate court, by a fine not exceeding
(f) "Active mining area" refers to areas under actual
Five thousand pesos (P5,000.00) or imprisonment not
exploration, development, exploitation or commercial
exceeding one (1) year, or both, at the discretion of the court.
production as determined by the Secretary after the
necessary field investigation or verification including
Sec. 108 Violation of the Terms and Conditions of the
contiguous and geologically related areas belonging to the
Environmental Compliance Certificate. Any person who
same claimowner and/or under contract with an operator, but
willfully violates or grossly neglects to abide by the terms and
in no case to exceed the maximum area allowed by law;
conditions of the environmental compliance certificate issued
to said person and which causes environmental damage
through pollution shall suffer the penalty of imprisonment of (g) "Existing mining right" refers to perfected and subsisting
six (6) months to six (6) years or a fine of Fifty thousand claim, lease, license or permit covering a mineralized area
pesos (P50,000.00) to Two Hundered Thousand Pesos prior to its declaration as a people's small-scale mining area;
(P200,000.00), or both at the discretion of the court.
(h) "Claimowner" refers to a holder of an existing mining right;
Sec. 109 Illegal Obstruction to Government Officials. Any
person who illegally prevents or obstructs the Secretary, the
Director or any of their representatives in the performance of (i) "Processor" refers to a person issued a license to engage in
their duties under the provisions of this Act and of the the treatment of minerals or ore-bearing materials such as by
regulations promulgated hereunder shall be punished, upon gravity concentration, leaching benefication, cyanidation,
conviction, by the appropriate court, by a fine not exceeding cutting, sizing, polishing and other similar activities;
Five thousand pesos (P5,000.00) or by imprisonment not
exceeding one (1) year, or both, at the discretion of the court.
(j) "License" refers to the privilege granted to a person to
legitimately pursue his occupation as a small-scale miner or
Sec. 110 Other Violations. Any other violation of this Act and
processor under this Act;
its implementing rules and regulations shall constitute an
offense punishable with a fine not exceeding five thousand
pesos (P5,000.00). (k) "Mining plan" refers to a two-year program of activities
and methodologies employed in the extraction and production
Sec. 111 Fines. The Secretary is authorized to charge fines for of minerals or ore-bearing materials, including the financial
late or nonsubmission of reports in accordance with the plan and other resources in support thereof;
implementing rules and regulations of this Act
(l) "Director" refers to the regional executive director of the
Department of Environment and Natural Resources; and
REPUBLIC ACT NO. 7076: People's Small-scale Mining
Act
(m) "Secretary" refers to the Secretary of the Department of
Sec. 2. Declaration of Policy. — It is hereby declared of the Environment and Natural Resources.
State to promote, develop, protect and rationalize viable
small-scale mining activities in order to generate more
Sec. 4. People's Small-scale Mining Program. — For the
employment opportunities and provide an equitable sharing of
purpose of carrying out the declared policy provided in
the nation's wealth and natural resources, giving due regard
Section 2 hereof, there is hereby established a People's Small-
to existing rights as herein provided.
scale Mining Program to be implemented by the Secretary of
the Department of Environment and Natural Resources,
Sec. 3. Definitions. — For purposes of this Act, the following hereinafter called the Department, in coordination with other
terms shall be defined as follows: concerned government agencies, designed to achieve an
orderly, systematic and rational scheme for the small-scale
development and utilization of mineral resources in certain
(a) "Mineralized areas" refer to areas with naturally occurring
mineral areas in order to address the social, economic,
mineral deposits of gold, silver, chromite, kaolin, silica,
technical, and environmental connected with small-scale
marble, gravel, clay and like mineral resources;
mining activities.
The People's Small-scale Mining Program shall include the
following features:
(b) "Small-scale mining" refers to mining activities which rely
(a) The identification, segregation and reservation of certain
heavily on manual labor using simple implement and methods
mineral lands as people's small-scale mining areas;
and do not use explosives or heavy mining equipment;
(b) The recognition of prior existing rights and productivity;
(c) The encouragement of the formation of cooperatives; Applications for a contract shall be subject to a reasonable fee
to be paid to the Department of Environment and Natural
Resources regional office having jurisdiction over the area.
(d) The extension of technical and financial assistance, and
other social services;
Sec. 10. Extent of Contract Area. — The Board shall
determine the reasonable size and shape of the contract area
(e) The extension of assistance in processing and marketing;
following the meridional block system established under
Presidential Decree No. 463, as amended, otherwise known as
(f) The generation of ancillary livelihood activities; the Mineral Resources Development Decree of 1974, but in no
case shall the area exceed twenty hectares (20 has.) per
contractor and the depth or length of the tunnel or adit not
(g) The regulation of the small-scale mining industry with the
exceeding that recommended by the director taking into
view to encourage growth and productivity; and
account the following circumstances:
Sec. 14. Rights of Claimowners. — In case a site declared and The Board shall issue licenses for the operation of custom
set aside as a people's-scale mining area is covered by an mills and other processing plants subject to pollution control
existing mining right, the claimowner and the small-scale and safety standards.
miners therein are encouraged to enter into a voluntary and
acceptable contractual agreement with respect to the small-
The Department shall establish assay laboratories to cross-
scale utilization of the mineral values from the area under
check the integrity of custom mills and to render metallurgical
claim. In case of disagreement, the claimowner shall be
and laboratory services to mines.
entitled to the following rights and privileges:
(a) Exemption from the performance of annual work
obligations and payment of occupation fees, rental, and real Custom mills shall be constituted as withholding agents for
property taxes; the royalties, production share or other taxes due the
Government.
(b) Subject to the approval of the Board, free access to the
contract area to conduct metallurgical tests, explorations and
Sec. 19. Government Share and Allotment. — The revenue to
other activities, provided such activities do not unduly
be derived by the Government from the operation of the
interfere with the operations of the small-scale miners; and
mining program herein established shall be subject to the
sharing provided in the Local Government Code.
(c) Royalty equivalent to one and one half percent (1 1/2%) of
the gross value of the metallic mineral output or one percent
Sec. 20. People's Small-scale Mining Protection Fund. —
(1%) of the gross value of the nonmetallic mineral output to
There is hereby created a People's Small-scale Mining
be paid to the claimowner: Provided, That such rights and
Protection Fund which shall be fifteen percent (15%) of the
privileges shall be available only if he is not delinquent and
national government's share due the Government which shall
other performance of his annual work obligations and other
be used primarily for information dissemination and training
requirements for the last two (2) years prior to the effectivity
of small-scale miners on safety, health and environmental
of this Act.
protection, and the establishment of mine rescue and
recovery teams including the procurement of rescue
Sec. 15. Rights of Private Landowners. — The private equipment necessary in cases of emergencies such as
landowner or lawful possessor shall be notified of any plan or landslides, tunnel collapse, or the like.
petition to declare his land as a people's small-scale mining
area. Said landowner may oppose such plan or petition in an
The fund shall also be made available to address the needs of
appropriate proceeding and hearing conducted before the
the small-scale miners brought about by accidents and/or
Board.
fortuitous events.
If a private land is declared as a people's small-scale mining
area, the owner and the small-scale mining contractors are Sec. 21. Rescission of Contracts and Administrative Fines. —
encouraged to enter into a voluntary and acceptable The noncompliance with the terms and conditions of the
contractual agreement for the small-scale utilization of the contract or violation of the rules and regulations issued by the
mineral values from the private land: Provided, That the Secretary pursuant to this Act, as well as the abandonment of
owner shall in all cases be entitled to the payment of actual the mining site by the contractor, shall constitute a ground for
damages which he may suffer as a result of such declaration: the cancellation of the contracts and the ejectment from the
Provided, further, That royalties paid to the owner shall in no people's small-scale mining area of the contractor. In addition,
case exceed one percent (1%) of the gross value of the the Secretary may impose fines against the violator in an
minerals recovered as royalty. amount of not less than Twenty thousand pesos (P20,000.00)
and not more than One hundred thousand pesos
(P100,000.00). Nonpayment of the fine imposed shall render
Sec. 16. Ownership of Mill Tailings. — The small-scale mining
the small-scale mining contractor ineligible for other small-
contractor shall be the owner of all mill tailings produced from
scale mining contracts.
the contract area. He may sell the tailings or have them
processed in any custom mill in the area: Provided, That, if
the small-scale mining contractor decide to sell its mill Sec. 22. Reversion of People's Small-scale Mining Areas. —
tailings, the claimowner shall have a preemptive right to The Secretary, upon recommendation of the director, shall
purchase said mill tailings at the prevailing market price. withdraw the status of the people's small-scale mining area
when it can no longer feasibly operated on a small-scale
mining basis or when the safety, health and environmental
Sec. 17. Sale of Gold. — All gold produced by small-scale
conditions warrant that the same shall revert to the State for
miners in any mineral area shall be sold to the Central Bank,
proper disposition.
or its duly authorized representatives, which shall buy it at
prices competitive with those prevailing in the world market
regardless of volume or weight. Sec. 23. Actual Occupation by Small-scale Miners. — Small-
scale miners who have been in actual operation of mineral
lands on or before August 1, 1987 as determined by the Board
The Central Bank shall establish as many buying stations in
shall not be dispossessed, ejected or removed from said
gold-rush areas to fully service the requirements of the small-
areas: Provided, That they comply with the provisions of this
scale minerals thereat.
Act.
HELD:
Sec. 27. Penal Sanctions. — Violations of the provisions of
this Act or of the rules and regulations issued pursuant hereto 1) RA 7942 or the Philippine Mining Act of 1995 is
shall be penalized with imprisonment of not less than six (6) unconstitutional for permitting fully foreign owned
months nor more than six (6) years and shall include the corporations to exploit Philippine natural resources.
confiscation and seizure of equipment, tools and instruments.
Article XII Section 2 of the 1987 Constitution retained the
Regalian doctrine which states that “All lands of the public
domain, waters, minerals, coal, petroleum, and other
minerals, coal, petroleum, and other mineral oils, all forces of
Cases potential energy, fisheries, forests or timber, wildlife, flora and
fauna, and other natural resources are owned by the State.”
The same section also states that, “exploration and
La Bugal B’laan Tribal Association Inc., et al. V. Victor development and utilization of natural resources shall be
O. Ramos, Secretary Department of Environment and under the full control and supervision of the State.”
Natural Resources; Horacio Ramos, Director, Mines and
Geosciences Bureau (MGB-DENR); Conspicuously absent in Section 2 is the provision in the 1935
and 1973 Constitutions authorizing the State to grant
The constitutional provision allowing the President to enter licenses, concessions, or leases for the exploration,
into FTAAs is an exception to the rule that participation in the exploitation, development or utilization of natural resources. Y
nation’s natural resources is reserved exclusively to Filipinos. such omission, the utilization of inalienable lands of public
Provision must be construed strictly against their enjoyment domain through license, concession or lease is no longer
by non-Filipinos. allowed under the 1987 Constitution.
RA 7942 (The Philippine Mining Act) took effect on April 9, Under the concession system, the concessionaire makes a
1995. Before the effectivity of RA 7942, or on March 30, 1995, direct equity investment for the purpose of exploiting a
the President signed a Financial and Technical Assistance particular natural resource within a given area. The
Agreement (FTAA) with WMCP, a corporation organized under concession amounts to complete control by the
Philippine laws, covering close to 100, 000 hectares of land in concessionaire over the country’s natural resource, for it is
given exclusive and plenary rights to exploit a particular 3) The Chief Executive is the official constitutionally
resource at the point of extraction. mandated to “enter into agreements with foreign owned
corporations.” On the other hand, Congress may review
The 1987 Constitution, moreover, has deleted the phrase the action of the President once it is notified of “every
“management or other forms of assistance” in the 1973 contract entered into in accordance with this
Charter. The present Constitution now allows only “technical [constitutional] provision within thirty days from its
and financial execution.” In contrast to this express mandate of the
assistance.” The management or operation of mining President and Congress in the exploration, development
activities by foreign contractors, the primary feature of and utilization (EDU) of natural resources, Article XII of
service contracts was precisely the evil the drafters of the the Constitution is silent on the role of the judiciary.
1987 Constitution sought to avoid. However, should the President and/or Congress gravely
abuse their discretion in this regard, the courts may -- in
The constitutional provision allowing the President to enter a proper case -- exercise their residual duty under Article
into FTAAs is an exception to the rule that participation in the VIII. Clearly then, the judiciary should not inordinately
nation’s natural resources is reserved exclusively to Filipinos. interfere in the exercise of this presidential power of
Accordingly such provision must be construed strictly against control over the EDU of our natural resources.
their enjoyment by non-Filipinos. Therefore RA 7942 is invalid
insofar as said act authorizes service contracts. Although the Under the doctrine of separation of powers and due respect
statute employs the phrase “financial and technical for co-equal and coordinate branches of government, the
agreements” in accordance with the 1987 Constitution, its Court must restrain itself from intruding into policy matters
pertinent provisions actually treat these and must allow the President and Congress maximum
agreements as service contracts that grant beneficial discretion in using the resources of our country and in
ownership to foreign contractors contrary to the fundamental securing the assistance of foreign groups to eradicate the
law. grinding poverty of our people and answer their cry for viable
employment opportunities in the country. “The judiciary is
The underlying assumption in the provisions of the law is that loath to interfere with the due exercise by coequal branches
the foreign contractor manages the mineral resources just like of government of their official functions.” As aptly spelled out
the foreign contractor in a service contract. By allowing seven decades ago by Justice George Malcolm, “Just as the
foreign contractors to manage or operate all the aspects of Supreme Court, as the guardian of constitutional rights,
the mining operation, RA 7942 has in effect conveyed should not sanction usurpations by any other department of
beneficial ownership over the nation’s mineral resources to government, so should it as strictly confine its own sphere of
these contractors, leaving the State with nothing but bare title influence to the powers expressly or by implication conferred
thereto. on it by the Organic Act.” Let the development of the mining
industry be the responsibility of the political branches of
The same provisions, whether by design or inadvertence, government. And let not the Court interfere inordinately and
permit a circumvention of the constitutionally ordained 60- unnecessarily. The Constitution of the Philippines is the
40% capitalization requirement for corporations or supreme law of the land. It is the repository of all the
associations engaged in the exploitation, development and aspirations and hopes of all the people.
utilization of Philippine natural resources.
The Constitution should be read in broad, life-giving strokes. It
When parts of a statute are so mutually dependent and should not be used to strangulate economic growth or to
connected as conditions, considerations, inducements or serve narrow, parochial interests. Rather, it should be
compensations for each other as to warrant a belief that the construed to grant the President and Congress sufficient
legislature intended them as a whole, then if some parts are discretion and reasonable leeway to enable them to attract
unconstitutional, all provisions that are thus dependent, foreign investments and expertise, as well as to secure for our
conditional or connected must fall with them. people and our posterity the blessings of prosperity and
peace. The Court fully sympathize with the plight of La Bugal
Under Article XII Section 2 of the 1987 Charter, foreign owned B’laan and other tribal groups, and commend their efforts to
corporations are limited only to merely technical or financial uplift their communities. However, the Court cannot justify the
assistance to the State for large scale exploration, invalidation of an otherwise constitutional statute along with
development and utilization of minerals, petroleum and other its implementing rules, or the nullification of an otherwise
mineral oils. legal and binding FTAA contract. The Court believes that it is
not unconstitutional to allow a wide degree of discretion to
the Chief Executive, given the nature and complexity of such
2) The FTAA between WMCP and the Philippine government agreements, the humongous amounts of capital and financing
is likewise unconstitutional since the agreement itself is a required for large-scale mining operations, the complicated
service contract. technology needed, and the intricacies of international trade,
coupled with the State’s need to maintain flexibility in its
Section 1.3 of the FTAA grants WMCP, a fully foreign owned dealings, in order to preserve and enhance our country’s
corporation, the “exclusive right to explore, exploit, utilize and competitiveness in world markets. On the basis of this control
dispose of all minerals and by-products that may be produced standard, the Court upholds the constitutionality of the
from the contract area.” Section 1.2 of the same agreement Philippine Mining Law, its Implementing Rules and Regulations
provides that WMCP shall provide “all financing, technology, -- insofar as they relate to financial and technical agreements
management, and personnel necessary for the Mining -- as well as the subject Financial and Technical Assistance
Operations.” Agreement
These contractual stipulations and related provisions in the
FTAA taken together, grant WMCP beneficial ownership over
natural resources that properly belong to the State and are
Separate Opinion of Justice Panganiban
intended for the benefit of its citizens. These stipulations are
abhorrent to the 1987 Constitution. They are precisely the
The FTAA is now to be implemented by a Filipino corporation,
vices that the fundamental law seeks to avoid, the evils that it
therefore the Court can no longer declare it unconstitutional.
aims to suppress. Consequently, the contract from which they
The CA case is a dispute between two Filipino corporations
spring must be struck down.
(Sagittarius and Lepanto) both claiming the right to purchase
the foreign shares in WMCP. Regardless of which side
eventually prevails, the FTAA would still be in the hands of a
qualified Filipino firm. The present Constitution, moreover, Scale Miners Association (MISSMA) filed an MPSA application
does not limit foreign participation in the exploration, which was denied by the BMG on the grounds that the area
development and utilization of minerals, petroleum and applied for is within the area covered by MMC EP 133and that
mineral oils to financial or technical assistance. The drafters’ the MISSMA was not qualified to apply for an MPSA.MMC
choice of words and excerpts from deliberations of the assigned EP 133 to Southeast Mindanao Gold Mining
Constitutional Commission reveal that the present Charter did Corporation. BMG accepted and registered SEMs MPSA
not limit to financial or technical assistance the participation application and the Deed of Assignment over EP 133 executed
of foreign corporations in the large-scale exploration, in its favor by MMC.SEM¶s application was designated MPSA
development, and utilization of minerals, petroleum and Application No. 128 (MPSAA 128).The PA rendered a
mineral oils. resolution that EP 133 was valid and subsisting. It also
The drafters’ use of the phrase “agreements xxx involving xxx declared that the BMG Director, under Section 99 of the
technical or financial assistance” – in Article XII Section 2 of Consolidated Mines Administrative Order implementing
the 1987 Charter does not absolutely show intent to exclude Presidential Decree No. 463, was authorized to issue
other modes of assistance. “Rather the phrase signifies the exploration permits and to renew the same without limit. The
possibility of the inclusion of other activities, provided they validity of Ex loration Permit No. 133 was reiterated and all
bear some reasonable relationship to and compatibility with the adverse claims against MPSAA No.128 are DISMISSED.
financial or technical assistance.” If the drafters intended to
strictly confine foreign corporations to financial or technical Undaunted by the PA ruling, the adverse claimants appealed
assistance only, they would have employed “restrictive” or to the Mines Adjudication Board. In aDecision, the MAB
“stringent” language. considered erroneous the dismissal by the PA of the adverse
claims filed againstMMC and SEM over a mere technicality of
Excerpts from then deliberations of the Constitutional failure to submit a sketch plan. It argued that the rules
Commission likewise show that its members discussed of procedure are not meant to defeat substantial justice as
“technical or financial assistance agreements” in the same the former are merely secondary in importance to the latter.
breath as “service contracts” and used the terms Dealing with the question on EP 133¶s validity, the MAB
interchangeably. The members of the Concom actually had in opined that said issue was not crucial and was irrelevant in
mind the Marcos-era service contracts that they were more adjudicating the appealed case because EP 133 has long
familiar with (but which they duly modified and restricted so expired due to its non-renewal and that the holder of the
as to prevent present abuses), when they were crafting and same, MMC, was no longer a claimant of the Agusan-Davao-
polishing the provisions dealing with financial and/or Surigao Forest Reserve having relinquished its right to SEM.
technical assistance agreements. After it brushed aside the issue of the validity of EP133 for
being irrelevant, the MAB proceeded to treat SEM¶s MPSA
The Concom discussions in their entirely had to do with application over the disputed area asan entirely new and
service contracts that might be given to foreign-owned distinct application. It approved the MPSA application,
corporations as exceptions to the general principle of Filipino excluding the area segregated by DAO No. 66, which declared
control of the economy 729 hectares within the Diwalwal area as non-forest lands
open for small-scale mining.
APEX MINING CO., INC. vs. SOUTHEAST MINDANAO Dissatisfied, the Villaflor group and Balite appealed the
GOLD MINING CORP decision to this Court. SEM, aggrieved by the exclusion of 729
hectares from its MPSA application, likewise
Proclamation No. 369 was issued to establish the Agusan- appealed. Apex filed a Motion for Leave to Admit Petition for
Davao-Surigao Forest Reserve.Camilo Banad and his group, Intervention predicated on its right to stake its claim over the
who claimed to have first discovered traces of gold in Mount Diwalwal gold rush which was granted by the Court. These
Diwata, filed aDeclaration of Location for six mining claims in cases, however, were remanded to the Court of Appeals for
the area. Apex Mining Corporation entered intooperating proper disposition pursuant to Rule 43 of the 1997 Rules of
agreements with Banad and his group.Marcopper Mining Civil Procedure. The Court of Appeals consolidated the
Corporation filed mining claims for areas adjacent to the area remanded cases as CA-G.R. SP No. 61215 and No. 61216.The
covered by the DOL of Banad and his group. MMC abandoned Court of Appeals affirmed in toto the decision of the PA and
the claims and instead applied for a prospecting permit with declared null and void the MAB decision. Hence, the instant
theBureau of Forest Development. BFD issued a Prospecting Petitions for Review on Certiorari under Rule 45 of the Rules
Permit to MMC covering an area within theforest reserve of Court filed by Apex, Balite and MAB. During the pendency
under Proclamation No. 369. The permit embraced the areas of these Petitions, President Gloria Macapagal-Arroyo issued
claimed by Apex and the other individual mining claimants. Proclamation No. 297.This proclamation excluded an area of
MMC filed before the BMG a Petition for the Cancellation of 8,100 hectares located in Monkayo, Compostela Valley,
the MiningClaims of Apex and Small Scale Mining Permits. and proclaimed the same as mineral reservation and as
environmentally critical area. Subsequently,
MMC alleged that the areas covered by its EP 133 and the DENR Administrative Order No. 2002-18 was issued declaring
mining claims of Apex were within an established and existing an emergency situation in the Diwalwal gold rush area and
forest reservation. Apex filed a motion to dismiss MMC¶s ordering the stoppage of all mining operations therein.
petition alleging that its mining claims are not within any Thereafter, Executive Order No. 217was issued by the
established or proclaimed forest reserve, and as such, the President creating the National Task Force Diwalwal which is
acquisition of mining rights thereto must be undertaken via tasked to address the situation in the Diwalwal Gold Rush
registration of DOL with the BMG and not through the filing of Area.
application for permit to prospect with the BFD. However,
Supreme Court rendered a Decision against Apex holding that Issue
the disputed area is a forest reserve; hence, the proper
procedure in acquiring mining rights therein is by initially Whether the subsequent acts of the executive department
applying for a permit to prospect with the BFD and not such as the issuance of Proclamation No. 297,and DAO No.
through a registration of DOL with the BMG. DENR issued 2002-18 can outweigh Apex and Balites claims over the
Department Administrative Order No. 66 declaring areas Diwalwal Gold Rush Area.
covered by the Agusan-Davao-Surigao Forest Reserve as non-
forest lands and open to small-scale mining purposes. Held
A portion of thecontested area open to small scale miners, Upon the effectivity of the 1987 Constitution, the State
several mining entities filed applications for Mineral assumed a more dynamic role in the exploration,development
Production Sharing Agreement. Monkayo Integrated Small and utilization of the natural resources of the country. With
this policy, the State may pursuefull control and supervision of Makulapnit River and the entire Boac River System without
the exploration, development and utilization of the country¶s prior permit from the authorities concerned. The gravamen of
naturalmineral resources. The options open to the State are the offense here is the absence of the proper permit to dump
through direct undertaking or by entering into co- production, said mine tailings. This element is not indispensable in the
joint venture, or production-sharing agreements, or by prosecution for violation of PD 984 (Anti-Pollution Law), [RA]
entering into agreement with foreign-owned corporations for 7942 (Philippine Mining Act) and Art. 365 of the Revised Penal
large-scale exploration, development and utilization. Code. One can be validly prosecuted for violating the Water
Recognizing the importance of the country’s natural Code even in the absence of actual pollution, or even if it has
resources, not only for national economic development, but complied with the terms of its Environmental Compliance
also for its security and national defense, Section 5 of Certificate, or further, even if it did take the necessary
Republic Act No. 7942 empowers the President, when the precautions to prevent damage to property.
national interest so requires, to establish mineral reservations
where mining operations shall be undertaken directly by the In P.D. 984 (Anti-Pollution Law), the additional fact that must
State or through a contractor be proved is the existence of actual pollution. The gravamen
is the pollution itself. In the absence of any pollution, the
accused must be exonerated under this law although there
Loney vs. People of the Philippines was unauthorized dumping of mine tailings or lack of
precaution on its part to prevent damage to property.
Petitioners are officers of Marcopper Mining Corp., engaged in
mining in the province of Marinduque. Marcopper had been In R.A. 7942 (Philippine Mining Act), the additional fact that
storing tailings from its operation in a pit in Mt. Taipan, at the must be established is the willful violation and gross neglect
base of which ran a drainage leading to Boac and Makalupnit on the part of the accused to abide by the terms and
rivers. Consequently, Marcopper had discharged millions of conditions of the Environmental Compliance Certificate,
tons of tailings into the rivers. particularly that the Marcopper should ensure the
containment of run-off and silt materials from reaching the
Mogpog and Boac Rivers. If there was no violation or neglect,
In August 1996, the DOJ charged petitioners with violation of
and that the accused satisfactorily proved [sic] that
the Water Code of the Philippines, the National Pollution
Marcopper had done everything to ensure containment of the
Control Decree, Philippine Mining Act and RPC for Reckless
run-off and silt materials, they will not be liable. It does not
Imprudence Resulting in Damage to Property. Petitioners
follow, however, that they cannot be prosecuted under the
moved to quash the information on grounds that these were
Water Code, Anti-Pollution Law and the Revised Penal Code
“duplicitous” as DOJ charged more than one offense for a
because violation of the Environmental Compliance Certificate
single act and that the Informations contain allegations which
is not an essential element of these laws.
constitute legal excuse or justification.
On the other hand, the additional element that must be
The MTC ruled that as far as the 3 laws are concerned, only established in Art. 365 of the Revised Penal Code is the lack
the Information for violation of Philippine Mining Act should be of necessary or adequate precaution, negligence,
maintained. Thus, the Informations for violation of Anti- recklessness and imprudence on the part of the accused to
Pollution Law and the Water Code should be dismissed prevent damage to property. This element is not required
because the elements constituting the aforesaid violations are under the previous laws. Unquestionably, it is different from
absorbed by the same elements which constitute violation of dumping of mine tailings without permit, or causing pollution
the Philippine Mining Act. The RTC reversed the said decision to the Boac river system, much more from violation or neglect
and ruled that there can be no absorption by one offense of to abide by the terms of the Environmental Compliance
the three other offenses, as the acts penalized by these laws Certificate. Moreover, the offenses punished by special law
are separate and distinct from each other. This was affirmed are mal[a] prohibita in contrast with those punished by the
by the CA. Revised Penal Code which are mala in se.29
Consequently, the filing of the multiple charges against
petitioners, although based on the same incident, is
Petitioners contend that they should be charged with only one
consistent with settled doctrine.
offense – Reckless Imprudence Resulting in Damage to
Property — because all the charges filed against them are
On petitioners’ claim that the charge for violation of Article
based on a single act or incident of polluting the Boac and
365 of the RPC absorbs the charges for violation of PD 1067,
Makalupnit rivers thru dumping of mine tailings" and that the
PD 984, and RA 7942, suffice it to say that a mala in se felony
charge for violation of Article 365 of the RPC "absorbs" the
(such as Reckless Imprudence Resulting in Damage to
other charges since the element of "lack of necessary or
Property) cannot absorb mala prohibita crimes (such as those
adequate protection, negligence, recklessness and
violating PD 1067, PD 984, and RA 7942). What makes the
imprudence" is common among them.
former a felony is criminal intent (dolo) or negligence (culpa);
what makes the latter crimes are the special laws enacting
Ruling them.
Court had ruled that a single act or incident might offend Petitioners reiterate their contention in the Court of Appeals
against two or more entirely distinct and unrelated provisions that their prosecution contravenes this Court’s ruling in
of law thus justifying the prosecution of the accused for more People v. Relova. In particular, petitioners cite the Court’s
than one offense. The only limit to this rule is the statement in Relova that the law seeks to prevent harassment
Constitutional prohibition that no person shall be twice put in of the accused by "multiple prosecutions for offenses which
jeopardy of punishment for the same offense. though different from one another are nonetheless each
constituted by a common set or overlapping sets of technical
However, for the limited purpose of controverting petitioners’ elements."
claim that they should be charged with one offense only, the
SC quote with approval RTC’s comparative analysis of PD This contention is also without merit. Relova is no authority
1067, PD 984, RA 7942, and Article 365 of the RPC showing for petitioners’ claim against multiple prosecutions based on a
that in each of these laws on which petitioners were charged, single act not only because the question of double jeopardy is
there is one essential element not required of the others, not at issue here, but also because, as the Court of Appeals
thus: held, petitioners are being prosecuted for an act or incident
punished by four national statutes and not by an ordinance
In P.D. 1067 (Philippines Water Code), the additional element and a national statute. In short, petitioners, if ever, fall under
to be established is the dumping of mine tailings into the the first sentence of Section 21, Article III which prohibits
multiple prosecution for the same offense, and not, as in (a) Public forest is the mass of lands of the public domain
Relova, for offenses arising from the same incident. which has not been the subject of the present system of
classification for the determination of which lands are needed
for forest purposes and which are not.
(r) Dipterocarp forest is a forest dominated by trees of the (ee) Permit is a short-term privilege or authority granted by
dipterocarp species, such as red lauan, tengile, tiaong, white the State to a person to utilize any limited forest resources or
lauan, almon, bagtikan and mayapis of the Philippine undertake a limited activity with any forest land without any
mahogany group, apitong and the yakals. right of occupation and possession therein.
(s) Pine forest is a forest composed of the Benguet Pine in the (ff) Annual allowable cut is the volume of materials, whether
Mountain Provinces or the Mindoro pine in Mindoro and of wood or other forest products, that is authorized to be cut
Zambales provinces. regularly from the forest.
(t) Industrial tree plantation is any tract of forest land (gg) Cutting cycle is the number of years between major
purposely and extensively planted to timber crops primarily to harvests in the same working unit and/or region, within a
supply the raw material requirements of existing or proposed rotation.
processing plants and related industries.
(hh) Ecosystem means the ecological community considered
(u) Tree farm refers to any tract of forest land purposely and together with non-living factors and its environment as a unit.
extensively planted to trees of economic value for their fruits,
flowers, leaves, barks, or extractives, but not for the wood
(ii) Silviculture is the establishment, development
thereof.
reproduction and care of forest trees.
(x) Seed tree system is partial clearcutting with seed trees left
(ll) Primitive tribe is a group of endemic tribe living primitively
to regenerate the area.
as a distinct portion of a people from a common ancestor.
Section 9. Rules and Regulations. The Department Head, Section 13. System of Land Classification. The Department
upon the recommendation of the Director of Forest Head shall study, devise, determine and prescribe the criteria,
Development, shall promulgate the rules and regulations guidelines and methods for the proper and accurate
necessary to implement effectively the provisions of this classification and survey of all lands of the public domain into
Code. agricultural, industrial or commercial, residential,
resettlement, mineral, timber or forest, and grazing lands, and
into such other classes as now or may hereafter be provided
Section 10. Creation of Functional Divisions, and Regional
by law, rules and regulations.
and District Offices. All positions in the merged agencies are
considered vacant. Present occupants may be appointed in
accordance with a staffing pattern or plan of organization to In the meantime, the Department Head shall simplify through
be prepared by the Director and approved by the Department inter-bureau action the present system of determining which
Head. Any appointee who fails to report for duty in of the unclassified lands of the public domain are needed for
accordance with the approved plan within thirty (30) days forest purposes and declare them as permanent forest to form
upon receipt of notification shall be deemed to have declined part of the forest reserves. He shall decree those classified
the appointment, in which case the position may be filed by and determined not to be needed for forest purposes as
any other qualified applicant. alienable and disposable lands, the administrative jurisdiction
and management of which shall be transferred to the Bureau
of Lands: Provided, That mangrove and other swamps not
needed for shore protection and suitable for fishpond
purposes shall be released to, and be placed under the
administrative jurisdiction and management of, the Bureau of 9. Areas needed for other purposes, such as national
Fisheries and Aquatic Resources. Those still to be classified parks, national historical sites, game refuges and
under the Present system shall continue to remain as part of wildlife sanctuaries, forest station sites, and others of
the public forest. public interest; and
Section 14. Existing Pasture Leases and Permits in Forest 10. Areas previously proclaimed by the President as
Lands. Forest lands which have been the subject of pasture forest reserves, national parks, game refuge, bird
leases and permits shall remain classified as forest lands until sanctuaries, national shrines, national historic sites:
classified as grazing lands under the criteria, guidelines and
methods of classification to be prescribed by the Department
Provided, That in case an area falling under any of the
Head: Provided, That the administration, management and
foregoing categories shall have been titled in favor of any
disposition of grazing lands shall remain under the Bureau.
person, steps shall be taken, if public interest so requires, to
have said title cancelled or amended, or the titled area
Section 15. Topography. No land of the public domain expropriated.
eighteen per cent (18%) in slope or over shall be classified as
alienable and disposable, nor any forest land fifty per cent
Section 17. Establishment of boundaries of forest lands. All
(50%) in slope or over, as grazing land.
boundaries between permanent forests and alienable and
disposable lands shall be clearly marked and maintained on
Lands eighteen per cent (18%) in slope or over which have the ground, with infrastructure or roads, or concrete
already been declared as alienable and disposable shall be monuments at intervals of not more than five hundred (500)
reverted to the classification of forest lands by the meters in accordance with established procedures and
Department Head, to form part of the forest reserves, unless standards, or any other visible and practicable signs to insure
they are already covered by existing titles or approved public protection of the forest.
land application, or actually occupied openly, continuously,
adversely and publicly for a period of not less than thirty (30)
Section 18. Reservations in forest lands and off-shore
years as of the effectivity of this Code, where the occupant is
areas. The President of the Philippines may establish within
qualified for a free patent under the Public Land Act: Provided,
any lands of the public domain, forest reserve and forest
That said lands, which are not yet part of a well-established
reservation for the national park system, for preservation as
communities, shall be kept in a vegetative condition sufficient
critical watersheds, or for any other purpose, and modify
to prevent erosion and adverse effects on the lowlands and
boundaries of existing ones. The Department Head may
streams: Provided, further, That when public interest so
reserve and establish any portion of the public forest or forest
requires, steps shall be taken to expropriate, cancel defective
reserve as site or experimental forest for use of the Forest
titles, reject public land application, or eject occupants
Research Institute.
thereof.
(h) River banks, easements, road rights-of-ways, deltas, (c) The lessee shall pay forest charges on the timber and
swamps, former river beds, and beaches. other forest products grown and cut or gathered in an
industrial tree plantation or tree farm equivalent to six
percent (6%) current market value thereof;
Section 34. Industrial Tree Plantations and Tree Farms. A
lease for a period of twenty-five (25) years, renewable for
another period not exceeding twenty-five (25) years, for the (d) Sale at cost of seedlings and free technical advice and
establishment of an industrial tree plantation or a tree farm assistance to persons who will develop their privately-owned
may be granted by the Department Head upon lands into industrial tree plantation or tree farm;
recommendation of the Director to any person qualified to
develop and exploit natural resources, over timber or forest
(e) Exemption from the payment of the percentage tax levied
lands of the public domain categorized in Section 33 hereof,
in Title V of the National Internal Revenue Code when the
with a minimum area of One Thousand (1,000) hectares for
timber and forest products are sold, bartered or exchanged by
industrial tree plantation and One Hundred (100) hectares for
the lessee whether in their original state or not;
tree farm; Provided, That the size of the area that may be
granted under each category shall in each case depend upon
the capacity of the lessee to develop or convert the area into (f) The Board of Investments shall, notwithstanding its
productive condition within the term of the lease; Provided, nationality requirement on projects involving natural
further, That no lease shall be granted within critical resources, classify industrial tree plantations and tree farms
watersheds. 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 industrial tree plantation or tree farm may either
Scattered areas of less than One Hundred (100) hectares each
apply to the Board of Investments for the tax and other
may be leased for the establishment of tree farms to different
benefits thereunder, or avail of the following benefits:
qualified persons upon a showing that if developed as an
integrated unit these areas can be economically exploited:
Provided, That it shall be a condition of the lease that such 1. Amounts expended by a lessee in the development and
persons organize themselves into a cooperative to ensure the operation of an industrial tree plantation or tree farm prior to
orderly management thereof. the time when the production state is reached, may, at the
option of said lessee, be regarded as ordinary and necessary
business expenses or as capital expenditures; and
The lease may be granted under such terms and conditions as
the Department Head may prescribe, taking into account,
among others, the raw material needs of forest-based 2. Deduction from an investor's taxable income for the year,
industries and the maintenance of a wholesome ecological of an annual investment allowance equivalent to thirty-three
balance. and one-third per cent (33-1/3%) of his actual investment
during the year in an enterprise engaged in industrial tree
plantation or tree farm: Provided, That such investment shall shelters for excessive and unauthorized harvests in forest
not be withdrawn for a period of at least ten (10) years from lands, and shall not therefore be allowed except through a
the date of investment: Provided, further, That should the license agreement, license, lease or permit.
investment be withdrawn within such period, a tax equivalent
to double the amount of the total income tax rebate resulting
Section 40. Timber inventory in other lands containing
from the investment allowance shall be payable as a lump
standing or felled timber. The Bureau shall conduct a one
sum in addition to the income tax due from the taxpayer for
hundred per cent (100%) timber inventory in alienable and
the year the investment was withdrawn.
disposable lands and civil reservations immediately upon
classification or reservation thereof.
(g) Except when public interest demands the alteration or
modification, the boundaries of an area covered by an
No harvest of standing or felled timber in alienable and
industrial tree plantation or tree farm lease, once established
disposable lands, private lands, civil reservation, and all other
on the ground, shall not be altered or modified; and
lands, including those under the jurisdiction of other
government agencies, shall be allowed unless a one hundred
(h) A lessee shall not be subject to any obligation prescribed per cent (100%) timber inventory has been conducted
in, or arising out of, the provisions of the National Internal thereon.
Revenue Code on withholding of tax at source upon interests
paid on borrowings incurred for development and operation of
Section 41. Sworn timber inventory reports. All reports on
the industrial tree plantation or tree farm.
timber inventories of forest lands, alienable and disposable
lands, private lands, civil reservations, and all lands
The Department Head may provide other incentives in containing standing or felled timber must be subscribed and
addition to those hereinabove granted to promote industrial sworn to by all the forest officers who conducted the same.
tree plantation and tree farms in special areas such as, but
not limited to, those where there are no roads or where roads
Section 42. Participation in the development of alienable and
are inadequate, or areas with rough topography and remote
disposable lands and civil reservations. The privilege to
areas far from processing plants.
harvest timber in alienable and disposable lands and civil
reservations shall be given to those who can best help in the
All amounts collected under this section shall accrue to a delineation and development of such areas in accordance with
special deposit of the Bureau to be used for reforestation of the management plan of the appropriate government
critical watersheds or degraded areas and other development exercising jurisdiction over the same.
activities, over and above the general appropriation of the
said Bureau.
The extent of participation shall be based on the amount of
timber which may be harvested therefrom.
D. FOREST PROTECTION
Section 43. Swamplands and mangrove forests. Strips of
Section 37. Protection of all resources. All measures shall be mangrove forest bordering numerous islands which protect
taken to protect the forest resources from destruction, the shoreline, the shoreline roads, and even coastal
impairment and depletion. communities from the destructive force of the sea during high
winds and typhoons, shall be maintained and shall not be
alienated. Such strips must be kept from artificial obstruction
Section 38. Control of concession area. In order to achieve
so that flood water will flow unimpeded to the sea to avoid
the effective protection of the forest lands and the resources
flooding or inundation of cultivated areas in the upstream.
thereof from illegal entry, unlawful occupation, kaingin, fire,
insect infestation, theft, and other forms of forest destruction,
the utilization of timber therein shall not be allowed except All mangrove swamps set aside for coast-protection purposes
through license agreements under which the holders thereof shall not be subject to clear-cutting operation.
shall have the exclusive privilege to cut all the allowable
harvestable timber in their respective concessions, and the
Mangrove and other swamps released to the Bureau of
additional right of occupation, possession, and control over
Fisheries and Aquatic Resources for fishpond purposes which
the same, to the exclusive of all others, except the
are not utilized, or which have been abandoned for five (5)
government, but with the corresponding obligation to adopt
years from the date of such release shall revert to the
all the protection and conservation measures to ensure the
category of forest land.
continuity of the productive condition of said areas,
conformably with multiple use and sustained yield
management. Section 44. Visitorial power. The Department Head may, by
himself or thru the Director or any qualified person duly
designated by the Department Head, investigate, inspect and
If the holder of a license agreement over a forest area
examine records, books and other documents relating to the
expressly or impliedly waives the privilege to utilize any
operation of any holder of a license agreement, license, lease,
softwood, hardwood or mangrove species therein, a license
or permit, and its subsidiary or affiliated companies, to
may be issued to another person for the harvest thereof
determine compliance with the terms and conditions thereof,
without any right of possession or occupation over the areas
this Code and pertinent laws, policies, rules and regulations.
where they are found, but he shall, likewise, adopt protection
and conservation measures consistent with those adopted by
the license agreement holder in the said areas. Section 45. Authority of forest officers. When in the
performance of their official duties, forest officers, or other
government officials or employees duly authorized by the
Section 39. Regulation of timber utilization in all other
Department Head or Director, shall have free entry into areas
classes of lands and of wood-processing plants. The utilization
covered by a license agreement, license, lease or permit.
of timber in alienable and disposable lands, private lands, civil
reservations, and all lands containing standing or felled
timber, including those under the jurisdiction of other Forest officers are authorized to administer oath and take
government agencies, and the establishment and operation of acknowledgment in official matters connected with the
saw-mills and other wood-processing plants, shall be functions of their office, and to take testimony in official
regulated in order to prevent them from being used as
investigations conducted under the authority of this Code and All roads and infrastructure constructed by holders of license
the implementing rules and regulations. agreements, licenses, leases and permits belong to the State
and the use and administration thereof shall be transferred to
the government immediately upon the expiration or
Section 46. Scaling stations. In collaboration with
termination thereof. Prior thereto the Bureau may authorize
appropriate government agencies, the Bureau shall establish
the public use thereof, if it will not be detrimental to forest
control or scaling stations at suitably located outlets of timber
conservation measures.
and other forest products to insure that they were legally cut
or harvested.
Where roads are utilized by more than one commercial forest
user, the Bureau shall prescribe the terms and conditions of
Section 47. Mining operations. Mining operations in forest
joint use including the equitable sharing of construction
lands shall be regulated and conducted with due regard to
and/or maintenance costs, and of the use of these roads by
protection, development and utilization of other surface
other parties and the collection of such fees as may be
resources.
deemed necessary.
E. SPECIAL USES
Section 54. Pasture in forest lands. No forest land 50% in Section 61. Transfers. Unless authorized by the Department
slope or over may be utilized for pasture purposes. Head, no licensee, lessee, or permittee may transfer,
exchange, sell or convey his license agreement, license, lease
or permit, or any of his rights or interests therein, or any of his
Forest lands which are being utilized for pasture shall be
assets used in connection therewith.
maintained with sufficient grass cover to protect soil, water
and other forest resources.
The licensee, lessee, or permittee shall be allowed to transfer
or convey his license agreement, license, lease or permit only
If grass cover is insufficient, the same shall be supplemented
if he has not violated any forestry law, rule or regulation; has
with trees or such vegetative cover as may be deemed
been faithfully complying with the terms and conditions of the
necessary.
license agreement, license, lease or permit; the transferee
has all the qualifications and none of the disqualifications to
The size of forest lands that may be allowed for pasture and hold a license agreement, license, lease or permit; there is no
other special uses shall be determined by rules and evidence that such transfer or conveyance is being made for
regulations, any provision of law to the contrary purposes of speculation; and the transferee shall assume all
notwithstanding. the obligations of the transferor.
Section 55. Wildlife. Wildlife may be destroyed, killed, The transferor shall forever be barred from acquiring another
consumed, eaten or otherwise disposed of, without the license agreement, license, lease or permit.
necessity of permit, for the protection of life, health, safety
and property, and the convenience of the people.
Section 62. Service contracts. The Department Head, may in
the national interest, allow forest products licensees, lessees,
However, the Director may regulate the killing and destruction or permittees to enter into service contracts for financial,
of wildlife in forest lands in order to maintain an ecological technical, management, or other forms of assistance, in
balance of flora and fauna. consideration of a fee, with any foreign person or entity for
the exploration, development, exploitation or utilization of the
forest resources, covered by their license agreements,
Section 56. Recreation. The Bureau shall, in the preparation
licenses, leases or permits. Existing valid and binding service
of multiple-use management plans, identify and provide for
contracts for financial, technical, management or other forms
the protection of scenic areas in all forest lands which are
of assistance are hereby recognized as such.
potentially valuable for recreation and tourism, and plan for
the development and protection of such areas to attract
visitors thereto and meet increasing demands therefor. Section 63. Equity sharing. Every corporation holding a
license agreement, license, lease or permit to utilize, exploit,
occupy or possess any forest land, or conduct any activity
The construction and operation of necessary facilities to
therein, or establish and operate a wood-processing plant,
accommodate outdoor recreation shall be done by the Bureau
shall within one (1) year after the effectivity of this Code,
with the use of funds derived from rentals and fees for the
formulate and submit to the Department Head for approval a
operation and use of recreational facilities by private persons
plan for the sale of at least twenty percent (20%) of its
or operators, in addition to whatever funds may be
subscribed capital stock in favor of its employees and
appropriated for such purposes.
laborers.
Section 65. Authority of Department Head to impose other The same penalty plus cancellation of his license agreement,
fees. In addition to the fees and charges imposed under lease, license or permit and perpetual disqualification from
existing laws, rules and regulations, the Department Head is acquiring any such privilege shall be imposed upon any
hereby authorized, upon recommendation of the Director and licensee, lessee, or permittee who cuts timber from the
in consultation with representatives of the industries affected, licensed or leased area of another, without prejudice to
to impose other fees for forest protection, management, whatever civil action the latter may bring against the
reforestation, and development, the proceeds of which shall offender.
accrue into a special deposit of the Bureau as its revolving
fund for the aforementioned purposes.
Section 69. Unlawful occupation or destruction of forest
lands. Any person who enters and occupies or possesses, or
Section 66. Collection and Disbursement. The collection of makes kaingin for his own private use or for others any forest
the charges and fees above-mentioned shall be the land without authority under a license agreement, lease,
responsibility of the Director or his authorized representative. license or permit, or in any manner destroys such forest land
The Director shall remit his monthly collection of fees and or part thereof, or causes any damage to the timber stand
charges mentioned in Section 64 to the Treasurer of the and other products and forest growths found therein, or who
Philippines within the first ten (10) days of the succeeding assists, aids or abets any other person to do so, or sets a fire,
month; Provided, That the proceeds of the collection of the or negligently permits a fire to be set in any forest land shall,
fees imposed under Section 65 and the special deposit upon conviction, be fined in an amount of not less than five
heretofore required of licensees shall be constituted into a hundred pesos (P500.00) nor more than twenty thousand
revolving fund for such purposes and be deposited in the pesos (P20,000.00) and imprisoned for not less than six (6)
Philippine National Bank, as a special deposit of the Bureau. months nor more than two (2) years for each such offense,
The Budget Commissioner and the National Treasurer shall and be liable to the payment of ten (10) times the rental fees
effect the quarterly releases out of the collection accruing to and other charges which would have been accrued had the
the general fund upon request of the Director on the basis of occupation and use of the land been authorized under a
a consolidated annual budget of a work program approved by license agreement, lease, license or permit: Provided, That in
the Department Head and the President. the case of an offender found guilty of making kaingin, the
penalty shall be imprisoned for not less than two (2) nor more
than (4) years and a fine equal to eight (8) times the regular
In the case of the special deposit revolving fund, withdrawals
forest charges due on the forest products destroyed, without
therefrom shall be effected by the Department Head on the
prejudice to the payment of the full cost of restoration of the
basis of a consolidated annual budget prepared by the
occupied area as determined by the Bureau.
Director of a work program for the specific purposes
mentioned in Section 65.
The Court shall further order the eviction of the offender from
the land and the forfeiture to the Government of all
Section 67. Basis of Assessment. Tree measurement shall be
improvements made and all vehicles, domestic animals and
the basis for assessing government charges and other fees on
equipment of any kind used in the commission of the offense.
timber cut and removed from forest lands, alienable or
If not suitable for use by the Bureau, said vehicles shall be
disposable lands, and the civil reservations; Provided, That
sold at public auction, the proceeds of which shall accrue to
until such time as the mechanics of tree measurement shall
the Development Fund of the Bureau.
have been developed and promulgated in rules and
regulations, the present scaling method provided for in the
National Internal Revenue Code shall be used. In case the offender is a government official or employee, he
shall, in addition to the above penalties, be deemed
automatically dismissed from office and permanently
The Director may, with the approval of the Department Head,
disqualified from holding any elective or appointive position.
prescribe a new method of assessment of forest products and
collection of charges thereon based upon the result of
production cost and market studies undertaken by the Section 70. Pasturing Livestock. Imprisonment for not less
Bureau; Provided, That such charges shall not be lower than than six (6) months nor more than two (2) years and a fine
those now imposed. equal to ten (10) times the regular rentals due, in addition to
the confiscation of such livestock and all improvement
introduced in the area in favor of the government, shall be
CHAPTER IV
imposed upon any person, who shall, without authority under
CRIMINAL OFFENSES AND PENALTIES
a lease or permit, graze or cause to graze livestock in forest
lands, grazing lands and alienable and disposable lands which
Section 68. Cutting, gathering and/or collecting timber or have not as yet been disposed of in accordance with the
other products without license. Any person who shall cut, Public Land Act; Provided, That in case the offender is a
gather, collect, or remove timber or other forest products corporation, partnership or association, the officers and
from any forest land, or timber from alienable and disposable directors thereof shall be liable.
public lands, or from private lands, without any authority
under a license agreement, lease, license or permit, shall be
Section 71. Illegal occupation of national parks system and
guilty of qualified theft as defined and punished under Articles
recreation areas and vandalism therein. Any person who shall,
309 and 310 of the Revised Penal Code; Provided, That in the
without permit, occupy for any length of time any portion of
case of partnership, association or corporation, the officers
the national parks system or shall, in any manner, cut,
who ordered the cutting, gathering or collecting shall be
destroy, damage or remove timber or any species of
liable, and if such officers are aliens, they shall, in addition to
vegetation or forest cover and other natural resources found
the penalty, be deported without further proceedings on the
therein, or shall mutilate, deface or destroy objects of natural
part of the Commission on Immigration and Deportation.
beauty or of scenic value within areas in the national parks
system, shall be fined not less than two hundred (P200.00)
pesos or more than five hundred (P500.00) pesos exclusive of
the value of the thing damaged; Provided, That if the area Section 77. Unlawful possession of implements and devices
requires rehabilitation or restoration as determined by the used by forest officers. Imprisonment for a period of not less
Director, the offender shall also be required to restore or than (2) nor more than four (4) years and a fine of not less
compensate for the restoration of the damage; Provided, than one thousand pesos (P1,000.00), nor more than ten
Further, That any person who, without proper permit shall thousand (P10,000.00) pesos in addition to the confiscation of
hunt, capture or kill any kind of bird, fish or wild animal life such implements and devices, and the automatic cancellation
within any area in the national parks system shall be subject of the license agreement, lease, license or permit, if the
to the same penalty; Provided, Finally, That the Court shall offender is a holder thereof, shall be imposed upon any
order eviction of the offender from the land and the forfeiture person who shall, without authority from the Director or his
in favor of the Government of all timber or any species of authorized representative, make, manufacture, or has in his
vegetation and other natural resources collected or removed, possession any government marking, hatchet or other
and any construction or improvement made thereon by the marking implement, or any marker, poster, or other devices
offender. If the offender is an association or corporation, the officially used by officers of the Bureau for the marking or
president or manager shall be directly responsible and liable identification of timber or other products, or any duplicate,
for the act of his employees or laborers. counterfeit, or imitation thereof, or make or apply a
government mark on timber or any other forest products by
means of any authentic or counterfeit device, or alter, deface,
In the event that an official of a city or municipal government
or remove government marks or signs, from trees, logs,
is primarily responsible for detecting and convicting the
stumps, firewoods or other forest products, or destroy, deface,
violator of the provisions of this Section, fifty per centum
remove or disfigure any such mark, sign, poster or warning
(50%) of the fine collected shall accrue to such municipality or
notices set by the Bureau to designate the boundaries of
city for the development of local parks.
cutting areas, municipal or city forest or pasture, classified
timber land, forest reserve, and areas under the national park
Section 72. Destruction of wildlife resources. Any person system or to make any false mark or imitation of any mark or
violating the provisions of Section 55 of this Code, or the sign herein indicated; Provided, That if the offender is a
regulations promulgated thereunder, shall be fined not less corporation, partnership or association, the officers and
than one hundred (P100.00) pesos for each such violation and directors thereof shall be liable.
in addition shall be denied a permit for a period of three (3)
years from the date of the violation.
Section 78. Payment, collection and remittance of forest
charges. Any person who fails to pay the amount due and
Section 73. Survey by unauthorized person. Imprisonment payable under the provisions of this Code, the National
for not less than two (2) nor more than four (4) years, in Internal Revenue Code, or the rules and regulations
addition to the confiscation of the implements used in the promulgated thereunder, shall be liable to the payment of a
violation of this section including the cancellation of the surcharge of twenty-five per centum (25%) of the amount due
license, if any, shall be imposed upon any person who shall, and payable.
without permit to survey from the Director, enter any forest
lands, whether covered by a license agreement, lease,
Any person who fails or refuses to remit to the proper
license, or permit, or not, and conduct or undertake a survey
authorities said forest charges collectible pursuant to the
for whatever purpose.
provisions of this Code or the National Internal Revenue Code,
or who delays, obstructs or prevents the same, or who orders,
Section 74. Misclassification and survey by government causes or effects the transfer or diversion of the funds for
official or employee. Any public officer or employee who purposes other than those specified in this Code, for each
knowingly surveys, classifies, or recommends the release of such offense shall, upon conviction, be punished by a fine of
forest lands as alienable and disposable lands contrary to the not exceeding one hundred thousand pesos (P100,000.00)
criteria and standards established in this Code, or the rules and/or imprisonment for a period of not exceeding six (6)
and regulations promulgated hereunder, shall, after an years in the discretion of the Court. If the offender is a
appropriate administrative proceeding, be dismissed from the government official or employee, he shall, in addition, be
service with prejudice to re-employment, and upon conviction dismissed from the service with prejudice to reinstatement
by a court of competent jurisdiction, suffer an imprisonment and with disqualification from holding any elective or
of not less than one (1) year and a fine of not less than one appointive office.
thousand, (P1,000.00) pesos. The survey, classification or
release of forest lands shall be null and void.
If the offender is a corporation, partnership or association, the
officers and directors thereof shall be liable.
Section 75. Tax declaration on real property. Imprisonment
for a period of not less than two (2) nor more than four (4)
Section 79. Sale of wood products. No person shall sell or
years and perpetual disqualification from holding an elective
offer for sale any log, lumber, plywood or other manufactured
or appointive office, shall be imposed upon any public officer
wood products in the international or domestic market unless
or employee who shall issue a tax declaration on real property
he complies with grading rules and established or to be
without a certification from the Director of Forest
established by the Government.
Development and the Director of Lands or their duly
designated representatives that the area declared for taxation
is alienable and disposable lands, unless the property is titled Failure to adhere to the established grading rules and
or has been occupied and possessed by members of the standards, or any act of falsification of the volume of logs,
national cultural minorities prior to July 4, 1955. lumber, or other forest products shall be a sufficient cause for
the suspension of the export, sawmill, or other license or
permit authorizing the manufacture or sale of such products
Section 76. Coercion and influence. Any person who coerces,
for a period of not less than two (2) years.
influences, abets or persuades the public officer or employee
referred to in the two preceding sections to commit any of the
acts mentioned therein shall suffer imprisonment of not less A duly accredited representative of the Bureau shall certify to
than one (1) year and pay a fine of five hundred (P500.00) the compliance by the licensees with grading rules.
pesos for every hectare or a fraction thereof so improperly
surveyed, classified or released.
Every dealer in lumber and other building material covered by
this Code shall issue an invoice for each 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 WHEREAS, it is of common knowledge that
described in the invoice. Any violation of this Section shall be only few criminal cases are being filed
sufficient ground for the suspension of the dealer's license for
a period of not less than two (2) years and, in addition
against violators of the forestry laws,
thereto, the dealer shall be punished for each such offense by rules and regulations because of the
a fine of not less than two hundred pesos (P200.00) or the apparent lack of manpower in the
total value of the invoice, whichever is greater. prosecuting arm of the Bureau of Forestry
Development which predicament could not
Section 80. Arrest; Institution of criminal actions. A forest be feasibly augmented due to the present
officer or employee of the Bureau shall arrest even without economic situation of the country;
warrant any person who has committed or is committing in his
presence any of the offenses defined in this Chapter. He shall
also seize and confiscate, in favor of the Government, the WHEREAS, Section 80 of the "Revised
tools and equipment used in committing the offense, and the Forestry Code of the Philippines", or any
forest products cut, gathered or taken by the offender in the
process of committing the offense. The arresting forest officer
other law, rule and regulation does not
or employee shall thereafter deliver within six (6) hours from authorize members of the Philippine
the time of arrest and seizure, the offender and the Constabulary/Integrated National Police
confiscated forest products, tools and equipment to, and file to file complaints against forest law
the proper complaint with, the appropriate official designated violators except when they are lawfully
by law to conduct preliminary investigations and file
informations in court. deputized by the Minister of Agriculture
and Natural Resources pursuant to the
If the arrest and seizure are made in the forests, far from the
said Code;
authorities designated by law to conduct preliminary
investigations, the delivery to, and filing of the complaint with, NOW, THEREFORE, I, FERDINAND E. MARCOS,
the latter shall be done within a reasonable time sufficient for
ordinary travel from the place of arrest to the place of
President of the Philippines, by virtue
delivery. The seized products, materials and equipment shall of the powers vested in me by the
be immediately disposed of in accordance with forestry Constitution, do hereby degree that:
administrative orders promulgated by the Department Head.
SECTION 1. Section 80 of Presidential Decree No. 705 is
The Department Head may deputize any member or unit of amended to read as follows:
the Philippine Constabulary, police agency, barangay or barrio
official, or any qualified person to protect the forest and
exercise the power or authority provided for in the preceding "Sec.80. Arrest: institution of criminal
paragraph. actions. -
Reports and complaints regarding the commission of any of A forest officers or employee of the Bureau or any personnel
the offenses defined in this Chapter, not committed in the of the Philippines Constabulary/ Integrated National Police
presence of any forest officer or employee, or any of the shall arrest even without warrant any person who has
deputized officers or officials, shall immediately be committed or committing in his presence any of the offenses
investigated by the forest officer assigned in the area where defined in this Chapter. He shall also seize and confiscate, in
the offense was allegedly committed, who shall thereupon favor of the Government, the tools and equipment used in
receive the evidence supporting the report or complaint. committing the offense, and the forest products cut, gathered
or taken by the offender in the process committing the
offense. The arresting forest officer or employee shall
If there is prima facie evidence to support the complaint or
thereafter deliver within six (6) hours from the time of arrest
report, the investigating forest officer shall file the necessary
and seizure, the offender and the confiscated forest product,
complaint with the appropriate official authorized by law to
tools and equipment and file the proper complaint with, the
conduct a preliminary investigation of criminal cases and file
appropriate official designated by law to conduct preliminary
an information in Court.
investigation and file information in Court.
PD No. 1775: AMENDING SECTION EIGHTY OF If the arrest and seizure are made in the forest, far from the
PRESIDENTIAL DECREE NUMBERED SEVEN authorities designated by the law to conduct preliminary
HUNDRED FIVE, AS AMENDED, OTHERWISE investigations, the delivery to, and filing of the complaint with,
KNOWN AS THE "REVISED FORESTRY CODE OF the latter shall be done within a reasonable time sufficient to
the place of delivery. The seized products, materials and
THE PHILIPPINES." equipment shall be immediately disposed of in accordance
with forestry administrative orders promulgated by the
Department Head.
WHEREAS, it is of common knowledge that
only few criminal cases are being filed The Department Head may deputized any agency, Bering or
against violators of the forestry laws, barrio official, or any qualified person to protect the forest and
rules and regulations because of the exercise the power or authority provided for in the preceding
apparent lack of manpower in the paragraph.
prosecuting arm of the Bureau of Forestry
Development which predicament could not Reports and complaints regarding the commission of any of
the offenses defined in this Chapter, not committed in the
be feasibly augmented due to the present presence of any forest officer or employee, or any personnel
economic situation of the country; of the Philippine Constabulary/Integrated National Police or
any of the deputized officers of officials, shall immediately be
investigated by the forest officer assigned in the area or any
personnel of the Philippine Constabulary/Integrated National 2.1.Delineation, Classification and Demarcation of
Police where the offense was allegedly committed, who shall State Forestlands
thereupon receive the evidence supporting the report or
complaint. If there is a prima facie evidence to support the
complaint or report the investigating forest officer and/ or
1. State forestlands shall be identified, classified and
members of the Philippine Constabulary/Integrated National
delineated/demarcated on the ground and shall
Police shall file the necessary complaint with the appropriate
constitute the permanent forest estate unless
official authorized by law to conduct a preliminary
otherwise stipulated by Congress; the same shall be
investigation of criminal case and file an information in Court."
categorized and managed either as primarily for
production or as primarily for protection purposes,
Executive Order No. 318: PROMOTING SUSTAINABLE and in both cases, placed under a formal
FOREST MANAGEMENT IN THE PHILIPPINES management scheme.
WHEREAS, the Constitution provides for the protection and 2. Conversions of forestlands into non-forestry uses
advancement of the right of the people to a balanced and shall be allowed only through an act of Congress and
healthy environment in accord with the rhythm and harmony upon the recommendation of concerned government
of nature, to protect the Filipino people from disaster like agencies.
floods or landslide, and from threats to environmental and
economic security like wood and water shortage, biodiversity
loss, air pollution and drought. Likewise, it provides for the 2.2. Holistic, Sustainable and Integrated Development
full, efficient and rights-based use of natural resources to of Forestry Resources
abate poverty, promote industrialization and full employment,
affirm the diverse cultures of the Filipino, and ensure their 1. The development and management of the Philippines
availability to present and future generations; forests and forestlands including the coastal forests
shall be for the highest and widest public benefit and
WHEREAS, Sustainable Forest Management (SFM) is provided shall be based on the inherent productive capacity
in the Global Plan of implementation of the World Summit on and sustainable use of these resource for the present
Sustainable Development adopted in Johannesburg, as an and future generation of Filipinos.
international strategy for developing and managing forests;
WHEREAS, important socio-economic and environmental 2. The priority development, protection and
changes and policy reforms that directly affect the forestry management activity of any management unit shall
sector have taken place since the issuance in 1975 of be the rehabilitation of open and/or denuded,
Presidential Decree No. 705, otherwise known as the Revised degraded, fragile forestlands; and slope stabilization
Forestry Code of Philippines, and unless and until otherwise and protection to address occurrence of floods,
directed by Congress, there is a need to provide guidance to landslides and similar ecological disasters.
national agencies and instrumentalities on how to best
harmonize these policy reforms and make the forestry sector 3. The establishment of tree parks, regreening
responsive to external changes, and attain SFM in the and roadside planting of forest species in open and
Philippines; appropriate spaces shall be prioritized to mitigate
worsening urban air quality and global warming.
WHEREAS, logging or any commercial exploitation of forestry
resources in old growth forests, proclaimed watersheds and 2.3. Community-Based Forest Conservation and
other areas covered by the National Integrated Protected Development
Areas System (NIPAS) is prohibited to ensure the perpetual
existence of all native plants and animals;
1. Community-Based Forest Management (CBFM) shall
WHEREAS, a watershed-based integrated ecosystem be the primary strategy in all forest conservation and
management approach is deemed appropriate for SFM due to development and related activities, including joint
the interrelationships and interactions between and among ventures, production sharing and co-production; it
the various ecosystems of a watershed such as the uplands shall be encouraged in all private sector forestry
and coastal areas: enterprises and ventures.
SECTION 1. Declaration of Policy. It shall be the Policy of 3. Local cultures, values, traditions, religious beliefs and
the Government to pursue the sustainable management of the rights of indigenous peoples to their ancestral
forests and forestlands in watersheds. Watersheds shall be lands and domains as promoted and/or defined by
deemed as ecosystem management units and shall be existing legislation shall be recognized and respected
managed in a holistic, scientific, rights-based, technology- in all forestry undertakings of the State and the
based and community-based manner and observing the private sector.
principles of multi-use, decentralization and devolution, and
active participation of local government units (LGUs),
2.4. Incentives for Enhancing Private Investments,
synergism of economic, ecological, social and cultural
Economic Contribution and Global Competitiveness of
objectives, and the rational utilization of all resources found
Forest-Based Industries
therein. It shall likewise be the policy of the Government to
promote sound, effective and efficient, globally-competitive
and equitable forestry practices in both public and private 1. The government shall provide a favorable and stable
domains. policy and investment environment-friendly forest
based industries, ensure their sustainable raw
SECTION 2. Guiding Principles. The pursuit of these material supply and encourage value-added
policies shall be guided by the following principles: processing in-country to boost rural employment and
the economy.
2. Filipino entrepreneurship in forestry shall be promoted and institutionalized in the Government
encouraged and supported. service.
3. A package of incentives and services that are 2. Partnerships and collaboration between and among
responsive to the development of forests in private the DENR, NGAs/OGAs, LGUs, professional forestry
and public forestlands shall be adopted to encourage organizations, local communities, civic groups, CSOs,
the development of private forests, including the basic sectors, academic and other research and
deregulation of privately-developed forests and development institutions and other stakeholders
privately-planted trees and enhancement of shall be promoted.
capacities of stakeholders to engage in private forest
development and related activities. 3. Forestry administrative systems and institutions,
including research and development, shall be
4. The development of high-value tree crops and non- upgraded and modernized.
timber forest crops in public forestlands, private
lands and in home forest gardens shall be promoted 4. Academic programs and scientific research shall be
and encouraged to enhance economic and ecological harnessed to generate information, technologies and
benefits and attain self-sufficiency in the country’s policies that will strengthen national
wood requirements. capacities for SFM under the frameworks of
watershed ecosystem management (WEM) and
5. Incentives shall be provided to encourage co- CBFM.
management of forest resources involving national
and other government agencies (NGAs/OGAs), LGUs, 5. Human resources development programs for all
CSOs, and the private sector. stakeholders shall be rationalized and upgraded in
support of SFM; forestry extension services by
2.5 Proper Valuation and Pricing of Forestry Resources NGAs/OGAs and LGU shall be upgraded and
and Financing SFM intensified and
undertaken with CSOs, to support CBFM, pirvate
forestry, forestry co-management enterprises, and
1. Mechanism for proper valuation and fair and the development of forest-based biodiversity.
comprehensive pricing of forest products and
services, including water for domestic, industrial, 6. Forest land use plans shall be incorporated by LGUs
irrigation and power generation, biodiversity and in their comprehensive land use plans. National
eco-tourism, shall be developed and promoted. Government agencies shall assist LGUs in this
endeavor.
2. Local, regional and national plow-back mechanisms
of utilizing proceeds from the use of watersheds, 7. Networks and linkages involved with local and
forests and forestlands for ecological and international institutions, CSOs, LGUs, and industries
environmental services such as, but not limited to involved in the promotion and practice of SFM shall
power generation, supplying domestic and irrigation be
water, and eco-tourism, shall be developed and strengthened.
promoted to finance forest protection, rehabilitation,
and development.
EO No . 263: ADOPTING COMMUNITY-BASED FOREST
MANAGEMENT AS THE NATIONAL STRATEGY TO
3. Appropriate and doable mechanisms for adopting the
ENSURE THE SUSTAINABLE DEVELOPMENT OF THE
principles of environment and natural resources
COUNTRY'S FORESTLANDS RESOURCES AND
accounting (ENRA) and watershed ecosystems as
PROVIDING MECHANISMS FOR ITS IMPLEMENTATION
minimum spatial units of accounts shall be
developed and institutionalized.
WHEREAS, Article II, Section 16 of the 1987 Constitution
4. Innovative financial systems and approaches, such provides for the protection and advancement of the right of
as securitization, bonds and collaborative the Filipino people, both men and women, to a healthful and
investments, shall be encouraged to support balanced ecology;
sustainable forest management and enterprises and
the conservation of forest-based biodiversity in the
WHEREAS, Article II, Section 10 provides for the promotion of
Philippines.
social justice to all citizens in all phases of national
development;
5. Government investments in and out-sourced
financing for forest development such as the
application of clean development mechanism (CDM) WHEREAS, Article XIV, Section 17 mandates the State to
shall be prioritized in favor of forestlands that serve a recognize and respect the rights of the indigenous peoples to
significantly large population such as critical their ancestral domains and consider their customs, traditions
watersheds and/or which serve to reduce poverty and beliefs in the formulation of laws and policies;
and inequitable access to forests such as those under
CBFM and/or co-management by NGAs/OGAs, LGUs,
WHEREAS, Executive Order No. 192, series of 1987, mandates
industries, CSOs, and local communities.
the Department of Environment and Natural Resources
(DENR) as the primary government agency responsible for the
2.6. Institutional Support for SFM sustainable management and development of the country's
natural resources;
1. The principles and practices of good governance
such as transparency, accountability and WHEREAS, the Philippines 2000 and the government's Social
participatory decision-making, in transactions, Reform Agenda support people empowerment and the full,
decisions and actions affecting forestry, in all levels, meaningful and indispensable participation of communities as
and the policy of streamlining, decentralization, immediate stakeholders of the forestland resources in the
devolution and deregulation shall be adopted, protection and management of the forest ecosystem;
WHEREAS, the 25-year Master Plan for Forestry Development Sec. 7. In its budget preparation, the DENR shall allot
also recognizes the indispensable role of local communities in adequate funds to effectively accomplish CBFM targets and
forest protection, rehabilitation, development and shall seek supplementary funding from local and foreign
management, and targets the protection, rehabilitation, supporting agencies and organizations. DENR shall ensure the
management, and utilization of at least 4 million hectares of inclusion of budgetary allocation for CBFM in the annual
forestlands, through the community-based forest General Appropriations Act, pending the passage of the
management strategy; revised Forestry Code.
WHEREAS, entrusting the responsibility for forest Sec. 8. The DENR shall establish a Community-based Forest
rehabilitation, protection, and conservation to the community Management Special Account (CBFMSA) to support the
of stakeholders and affording them equitable access to the implementation of the strategy and provide financial and
forest and coastal resources are viable forestland professional incentive system for deserving communities and
management strategies as borne by the experience of the government personnel.
DENR and various supporting agencies;
Sec. 9. The DENR may source local and international grants
NOW, THEREFORE, I FIDEL V. RAMOS, President of the and donations for the establishment of the CBFM Special
Philippines, by virtue of the powers vested in me by law, do Account. Other sources of fund may later be determined by
hereby order that: the CBFM Steering Committee subject to existing government
regulations.
Sec. 1. Community-based forest management (herein referred
to as CBFM) shall be the national strategy to achieve Sec. 10. The DENR shall support and set up jointly with
sustainable forestry and social justice. relevant colleges and universities, private and public
organizations, arrangements for a community forestry training
program for members of participating units, such as people's
Sec. 2. The DENR, through its Community and Provincial
organizations, non-government organizations, local
Environment and Natural Resource Offices, in coordination
government units, and other government personnel.
with the local government units and the Department of
Interior and Local Government (DILG) shall, at all times, take
into account the needs and aspirations of local communities Sec. 11. Within six months after the signing of this Order, the
whose livelihood depends on the forestlands. DENR, in consultation with government financial institutions,
such as the Development Bank of the Philippines (DBP), the
Land Bank of the Philippines (LBP), GSIS and the SSS, shall
Sec. 3. Participating organized communities may be granted
effect the creation of favorable financing mechanisms for
access to the forestland resources under long term tenurial
access by communities and organizations in the pursuit of the
agreements, provided they employ environment-friendly,
CBFM strategy and its sub-strategies such as community
ecologically-sustainable, and labor-intensive harvesting
training and empowerment, enterprise development,
methods. Such harvesting methods shall be mentioned under
agroforestry development, tree plantations, and other non-
a site-specific management plan of each recipient community
forest-based alternative livelihood systems.
and duly approved by the DENR.