Professional Documents
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Law On Natural Resources Reviewer
Law On Natural Resources Reviewer
Black’s (Sixth edition, 1990), defined natural resources as “any The Congress may, by law, allow small-scale utilization of natural
material in its native state which when extracted has economic resources by Filipino citizens, as well as cooperative fish farming,
value.” Basically it states that for a substance or feature to be with priority to subsistence fishermen and fish- workers in rivers,
classified as a natural resource, it must offer potential or actual lakes, bays, and lagoons.
economic value, creating wealth.
The President may enter into agreements with foreign-owned
corporations involving either technical or financial assistance for
Definition of Natural Resources : Other Websites large-scale exploration, development, and utilization of minerals,
petroleum, and other mineral oils according to the general terms
Natural resource is any naturally occurring substance or feature and conditions provided by law, based on real contributions to the
of the environment (physical or biological) that, while not created economic growth and general welfare of the country. In such
by human effort, can be exploited by humans to satisfy their agreements, the State shall promote the development and use of
needs or wants. Many of such resources are our life line such as local scientific and technical resources.
water, air and solar radiation, which are essential elements for the
existence of all the flora and fauna.
The Concept of Jure Regalia (Regalian Doctrine)
Two basic conditions for a substance or feature to be classified as This principle means that all natural wealth - agricultural, forest or
a natural resource: First, the resource must exist naturally in the timber, and mineral lands of the public domain and all other
environment; that is, not synthetically produced by human beings, natural resources belong to the State. Thus, even if the private
such as in a laboratory or factory. Second, the resource must be person owns the property where minerals are discovered, his
able to be exploited by humans to directly satisfy a need or want. ownership for such does not give him the right to extract or utilize
said minerals without permission from the state to which such
Natural resources may either be: minerals belong.
a) Biotic resources which are derived from biosphere
such as the forests, marine organism, animals, birds The abovementioned provision provides that except for
and their products including mineral fuels come in this agricultural lands for public domain which alone may be
category, or alienated, forest or timber, and mineral lands, as well as all other
b) Abiotic which includes water, air, land and elemental natural resources must remain with the State, the exploration,
ores such as gold, silver, copper, iron etc. development and utilization of which shall be subject to its full
control and supervision albeit allowing it to enter into
It may also be either be renewable and non-renewable resources. coproduction, joint venture or production-sharing agreements, or
A renewable resource grows again or comes back again after we into agreements with foreign-owned corporations involving
use it. For example, sunlight, water, and trees are renewable technical or financial assistance for large-scale exploration,
resources. A non-renewable resource is a resource that does not development, and utilization
grow or come back, or a resource that would take a very long time
to come back. For example, coal is a non-renewable resource. Cases
All lands of the public domain, waters, minerals, coal, petroleum, Petitioners Isagani Cruz and Cesar Europa filed a case
and other mineral oils, all forces of potential energy, fisheries, for prohibition and mandamus as citizen and
forests or timber, wildlife, flora and fauna, and other natural taxpayers, assailing the constitutionality of certain
resources are owned by the State. With the exception of provisions of the Indigenous Peoples Rights Act (IPRA)
agricultural lands, all other natural resources shall not be and its implementing Rules on ground that they
alienated. The exploration, development, and utilization of amount to an unlawful deprivation of the State’s
natural resources shall be under the full control and supervision of ownership over lands of public domain and minerals
the State. The State may directly undertake such activities, or it and other natural resources, in violation of the
may enter into co-production, joint venture, or production- Regalian doctrine.
sharing agreements with Filipino citizens, or corporations or o They likewise contend that providing an all-
associations at least sixty per centum of whose capital is owned by encompassing definition of “ancestral
domain” and “ancestral lands” which might This case answered the question of which is the better
even include private lands within the areas basis for ownership of land: long-time occupation or
violate the rights of private land owners. paper title.
o Petitioners likewise contend that provisions
of the IPRA defining the jurisdiction and In this case, plaintiffs entered into peaceful occupation
powers of the NCIP violate due process of of the subject land while defendants ourchased the
law. land in 1892. The Court ruled that from 1860 to 1892
o Lastly, petitioners assail the validity of NCIP there was no law in force in the Philippines by which
Administrative Order No. 1 which provides plaintiffs could obtain ownership by prescription,
that the administrative relationship of the without any action of the State, otherwise the same
NCIP to the Office of the President (OP) as shall remain the property of the State. Thus, it required
lateral and autonomous relationship for settlers on public lands to obtain titles deeds from the
purposes of policy coordination, thereby State.
infringing upon the President’s power of
control over the executive department.
C. Public Land Acts and the Torrens System
A groups of intervenors, including Sen. Flavier, one of
the authors of the IPRA and members of 112 groups of Act No. 926, the first Public Land Act, was passed in
indigenous peoples prayed for the dismissal of the pursuance with the Philippine Bill of 1902, governing
petition. the disposition of land of public domain. It prescribe
The Commission of Human Rights likewise asserts that rules for the homesteading, selling and leasing of
IPRA is an expression of the principle of parens patriae portions of the public domain, and to enable persons
and that the State has the responsibility to protect the to perfect their titles to public lands. It also provided
rights of the indigenous peoples. for the issuance of patents to certain native settlers
upon public lands.
Decision:
Act No. 926 was superseded by the Act 2874, the
The votes of the Court are split where 7 voted to dismiss the second Public Land Act, passed under the Jones Law. it
petition and 7 voted to grant. As the votes were equally divided limited the exploitation of agricultural lands to Filipinos
and the necessary majority was not obtained, the petition was and Americans and citizens of other countries which
dismissed. gave the Filipinos the same privileges.
I. The Development of the Regalian Doctrine in the Philippine Grants of public land were brought under the
Legal System operation of the Torrens System under Act 496 which
placed all public and private lands in the Philippines
under the Torrens system, requiring that the
A. The Laws of Indies government issue an official certificate of title attesting
to the fact that the person named is the owner of the
property described.
The “Regalian Doctrine” or jura regalia is a Western
legal concept first introduced by the Spaniards through
the Laws of Indies and the Royal Cedulas. All lands D. The Philippine Constitutions
became the exclusive dominion of the Spanish Crown,
and the Spanish Government took charge of The Regalian Doctrine was enshrined in the 1935, 1973
distributing the lands by issuing royal grants and and 1987 Constitutions which basically states that all
concessions to Spaniards. Private land titles can only lands of the public domain as well as natural resources,
be acquired from the government by purchase or whether on public or private land, belong to the State.
other land grant from the Crown. It is this concept of state ownership that petitioners
claim is being violated by the IPRA.
The Law of Indies was followed by the Mortgage Law
of 1893 which provided for the systematic registration
of titles and deeds. The Maura Law of 1894 was the II. The Indigenous Peoples Rights Act
last Spanish law promulgated in the Philippines, which
required the registration of all agricultural lands;
otherwise the lands shall revert to the state. The IPRA recognizes the existence of the indigenous cultural
communities or indigenous peoples as a distinct sector. It
grants these people the ownership and possession of their
ancestral domains and ancestral lands, and defines the
extent of these lands and domains. Within their ancestral
B. Valentin vs. Murciano domains and lands the ICCs/IPs are given the right to self-
governance and right to preserve their culture. To carry out
the policies of the ACT, the law created the National
Commission on Indigenous Peoples (NCIP) Ancestral domains are all areas belonging to ICCs/IPs held
under a claim of ownership, occupied or possessed by
A. Indigenous Peoples ICCs/IPs since time immemorial, continuously until the
present except when interrupted by war or force majeure. It
Indigenous Cultural Communities or Indigenous Peoples comprises of lands, inland waters, coastal areas, and natural
(ICCs/ IPs) refer to a group of people who have continuously resources therein and includes ancestral lands, forests,
lived as an organized community on communally bounded pastures, hunting grounds, burial grounds, and bodies of
and defined territory. These groups of peoples have actually water, mineral and other natural resources.
occupied, possessed and utilized their territories under claim
of ownership since time immemorial. Ancestral lands are lands held by the ICCs/ IPs under the
same conditions as ancestral domains except that these are
Their unit of government is the barangay. In a baranganic limited to lands, not merely occupied and possessed but are
society, the chiefs administered the lands in the name of the also utilized, including residential lots, rice terraces, or
barangay, there was no private property in land. When Islam paddies, private forests.
was introduced in the country in the archipelago of
Maguindanao, the Sultanate of Sulu claimed jurisdiction The delineation of ancestral domains and lands is conferred
over territorial areas. on the NCIP who shall issue a Certificate of Ancestral
Domain (CADT) upon finding that the application is
When Spaniards settled in the Philippines, Spanish meritorious, in the name of the community. Ancestral Lands
missionaries were ordered to establish pueblos where outside the ancestral domain, the NCIP issues a Certificate of
church would be constructed. All the new Christian converts Land Title (CALT). The CALTs and CADTs shall be registered in
were required to construct their house around the church. the Register of Deeds in the place where property is
All lands lost by the old barangays in the process of pueblo situated.
organization and all lands not assigned to the pueblos were
declared to be lands of the Crown., and the natives were B. Carino vs. Insular Government
stripped of their ancestral rights to the lands.
On June 23, 1903, Mateo Cariňo went to the Court of Land
The American government classified the Filipinos into two: Registration to petition his inscription as the owner of a 146
Christian Filipinos and non-Christian Filipinos, not to hectare land he’s been possessing in the then municipality of
religious belief, but to geographical area, the latter referring Baguio. Mateo only presented possessory information and no
to natives of the Philippines of a low grade of civilization, other documentation. The State opposed the petition averring
usually living in tribal relationship. The Americans pursued a that the land is part of the US military reservation. The CLR ruled
policy of assimilation. They passed Act No. 253 creating the in favor of Mateo. The State appealed. Mateo lost. Mateo averred
bureau of Non-Christian Tribes to determine the most that a grant should be given to him by reason of immemorial use
practicable means for bring about their advancement. and occupation.
The 1935 Constitution did not carry any policy on the non- The US SC ruled in favor of Carino and ordered the registration of
Christian Filipinos. It was in the 1973 Constitution that the the subject lands in his name. The court laid down the
State recognized the customs and interest of national presumption of a certain title held as far back as memory went
cultural communities in the formulation of state policies. and under a claim of private ownership. Land held by this title is
presumed to never have been public land. The registration
In 1974, President Marcos promulgated PD 410 or the requirement was not to “confer title, but simply to establish it”. In
Ancestral Lands Decree, providing for the issuance of land a nutshell, Cariño enunciated the legal presumption that ancestral
occupancy certificates to members of the national cultural lands and domains were not part of the public domain, having
communities. maintained their character as private lands of the indigenous
peoples since time immemorial
The Aquino government shifted from the policy of
integration to one of preservation. She created the Office of Why Carino doctrine is unique?
Muslim Affairs, Office of Northern Cultural Communities and Carino is the only case that specifically recognizes native title.
the Office for Southern Cultural Communities all under the Carino was cited by succeeding cases to support the concept of
OP. acquisitive prescription under the Public Land Act
4. Whether respondent RBI can acquire reclaimed lands 6. There is no doubt that respondent NHA conducted a
when there was no declaration that said lands are no public bidding of the right to become its joint venture
longer needed for public use partner in the Smokey Mountain Project. It was noted
that notices were published in national newspapers.
5. Whether there is a law authorizing sale of reclaimed The bidding proper was done by the Bids and Awards
lands Committee on May 18, 1992.
6. Whether the transfer of reclaimed lands to RBI was 7. RA 6957 as amended by RA 7718 explicitly states that a
done by public bidding contractor can be paid “a portion as percentage of the
reclaimed land” subject to the constitutional
7. Whether RBI, being a private corporation, is barred by requirement that only Filipino citizens or corporation
the Constitution to acquire lands of public domain with at least 60% Filipino equity can acquire the same.
In addition, when the lands were transferred to the
8. Whether respondents can be compelled to disclose all NHA, these were considered Patrimonial lands of the
information related to the SMDRP state, by which it has the power to sell the same to any
qualified person.
9. Whether the operative fact doctrine applies to the
instant position 8. This relief must be granted. It is the right of the
Filipino people to information on matters of public
concerned as stated in Article II, Sec. 28, and Article III,
Decision: Sec. 7 of the 1987 Constitution.
1. Executive Order 525 reads that the PEA shall be 9. When the petitioner filed the case, the JVA had already
primarily responsible for integrating, directing, and been terminated by virtue of MOA between RBI and
coordinating all reclamation projects for and on behalf NHA. The properties and rights in question after the
of the National Government. This does not mean that passage of around 10 years from the start of the
it shall be responsible for all. The requisites for a valid project’s implementation cannot be disturbed or
and legal reclamation project are approval by the questioned. The petitioner, being the Solicitor General
President (which were provided for by MOs), at the time SMDRP was formulated, had ample
favourable recommendation of PEA (which were seen opportunity to question the said project, but did not
as a part of its recommendations to the EXECOM), and do so. The moment to challenge has passed.
undertaken either by PEA or entity under contract of
PEA or by the National Government Agency (NHA is a
government agency whose authority to reclaim lands 4. Republic of the Philippines vs. Celestina Naguiat
under consultation with PEA is derived under PD 727 (2006)
and RA 7279).
Facts:
2. Notwithstanding the need for DENR permission, the Celestina Naguiat applied for registration of title to 4
DENR is deemed to have granted the authority to parcels of land (located in Botolan, Zambales) with RTC
reclaim in the Smokey Mountain Project for the DENR Zambales.
is one of the members of the EXECOM which provides o She claimed to have acquired it from LID
reviews for the project. ECCs and Special Patent Corporation, who in turn had acquired it
Orders were given by the DENR which are exercises of from Calderon, Moraga and Monje and
its power of supervision over the project.
their predecessors-in-interest who have overturn, by incontrovertible evidence, the presumption that the
been in possession for more than 30 years. land subject of an application for registration is alienable or
Republic of the Philippines (through the OSG) filed an disposable rests with the applicant.
opposition to the application.
o They claim that neither Naguiat nor her In the case at bar, the CA only granted the petition
predecessors-in-interest have been in because it assumed that the lands in question are already
possession since 12 June 1945, that the alienable and disposable, which is found by the SC to not be in
muniments of title and tax payment this case.
receipts aren’t sufficient evidence of a bona
fide acquisition of the lands, that Naguiat’s
Spanish title can no longer be availed of and Here, respondent never presented the required
finally, that said lands are part of the public certification from the proper government agency or official
domain and not subject of private proclamation reclassifying the land applied for as alienable and
appropriation. disposable. Matters of land classification or reclassification
RTC rendered a decision in favour of Naguiat and cannot be assumed. It calls for proof. Aside from tax receipts,
decreed the registration of said lands in her name. respondent submitted in evidence the survey map and technical
Petitioner Republic of the Phils brought case to the CA. descriptions of the lands, which, needless to state, provided no
CA affirmed RTC decision. information respecting the classification of the property. These
Issue: documents are not sufficient to overcome the presumption that
the land sought to be registered forms part of the public domain.
Whether or not the areas in question have ceased to have the
status of forest or other inalienable lands of the public domain. Therefore, the issue of whether or not Naguiat and her
predecessor-in-interest have been in open, exclusive and
Decision: continuous possession of the parcels of land in question is now of
little moment. For, unclassified land, as here, cannot be acquired
No. Naguiat was unable to provide sufficient evidence that such by adverse occupation or possession; occupation thereof in the
parcels of land are no longer a part of the public domain. concept of owner, however long, cannot ripen into private
ownership and be registered as title.
Yes. The provision, as worded, recognizes an enforceable “right”. Rio+5: In 1997, the General Assembly of the UN held a special
Hence, appeal to it has been recognized as conferring “standing” session to appraise five years of progress on the implementation
on minors to challenge logging policies of the government (Oposa of Agenda 21 (Rio +5). The Assembly recognized progress as
vs. Factoran). On this basis too, the Supreme Court upheld the 'uneven' and identified key trends including
empowerment of the Laguna Lake Development Authority to increasing globalization, widening inequalities in income and a
protect the inhabitants of the Laguna Lake Area from the continued deterioration of the global environment. A new
deleterious effects of pollutants coming from garbage dumping General Assembly Resolution (S-19/2) promised further action.
and the discharge of wastes in the area as against the local
autonomy claim of local governments in the area (Laguna Lake The Johannesburg Summit: The Johannesburg Plan of
Development Authority vs. CA) Implementation, agreed at the World Summit on Sustainable
Development (Earth Summit 2002) affirmed UN commitment to
While the right to a balanced and healthful ecology is to be found 'full implementation' of Agenda 21, alongside achievement of
under the Declaration of Principles and State Policies and not the Millennium Development Goals and other international
under the Bill of Rights, it does not follow that it is less important agreements.
than any of the civil and political rights enumerated in the latter.
As a matter of fact, these basic rights need not even be written in Implementation: The Commission on Sustainable
the Constitution for they are assumed to exist from the inception Development acts as a high level forum on sustainable
of humankind. The right to a balanced and healthful ecology development and has acted as preparatory committee for
carries with it the correlative duty to refrain from impairing the summits and sessions on the implementation of Agenda 21. The
environment. United Nations Division for Sustainable Development acts as the
secretariat to the Commission and works 'within the context of'
Section 16 is unusual among those found in Article II in that, Agenda 21. Implementation by member states remains essentially
whereas almost all the other provisions in the Article are not self- voluntary.
executing but need implementing legislation to make them
Structure and Contents:
There are 40 chapters in the Agenda 21, divided into four main
sections.
1. Section I: Social and Economic Dimensions - which
deals with combating poverty, changing consumption
patterns, promoting health, change population and
sustainable settlement.
2. Section II: Conservation and Management of
Resources for Development - Includes atmospheric
protection, combating deforestation, protecting fragile
environments, conservation of biological diversity
(biodiversity), and control of pollution.
3. Section III: Strengthening the Role of Major Groups -
Includes the roles of children and youth, women,
NGOs, local authorities, business and workers.
4. Section IV: Means of Implementation -
Implementation includes science, technology
transfer, education, international institutions and
financial mechanisms.
(j) “Global Warming” refers to the increase in the Section 5. Composition of the Commission. – The Commission
average temperature of the Earth’s near-surface air shall be composed of the President of the Republic of the
and oceans that is associated with the increased Philippines who shall serve as the Chairperson, and three (3)
concentration of greenhouse gases in the atmosphere. Commissioners to be appointed by the President, one of whom
shall serve as the Vice Chairperson of the Commission.
(k) “Greenhouse effect” refers to the process by which
the absorption of infrared radiation by the atmosphere The Commission shall have an advisory board composed of the
warms the Earth. following:
(n) “Mitigation” in the context of climate change, (e) Secretary of the Department of Foreign Affairs;
refers to human intervention to address anthropogenic
emissions by sources and removals by sinks of all GHG, (f) Secretary of the Department of Health;
including ozone- depleting substances and their
substitutes.
(g) Secretary of the Department of the Interior and
Local Government;
(o) “Mitigation potential” shall refer to the scale of
GHG reductions that could be made, relative to
emission baselines, for a given level of carbon price (h) Secretary of the Department of National Defense,
(expressed in cost per unit of carbon dioxide in his capacity as Chair of the National Disaster
equivalent emissions avoided or reduced). Coordinating Council;
(p) “Sea level rise” refers to an increase in sea level (i) Secretary of the Department of Public Works and
which may be influenced by factors like global warming Highways;
through expansion of sea water as the oceans warm
and melting of ice over land and local factors such as (j) Secretary of the Department of Science and
land subsidence. Technology;
(q) “Vulnerability” refers to the degree to which a (k) Secretary of the Department of Social Welfare and
system is susceptible to, or unable to cope with, Development;
(l) Secretary of the Department of Trade and Industry; same sector: Provided, finally, That in no case shall any of the
Commissioners appoint representatives to act on their behalf.
(m) Secretary of the Department of Transportation and
Communications; The Commissioners shall hold office for a period of six (6) years,
and may be subjected to reappointment: Provided, That no
person shall serve for more than two (2) consecutive terms:
(n) Director-General of the National Economic and
Provided, further, That in case of a vacancy, the new appointee
Development Authority, in his capacity as Chair of the
shall fully meet the qualifications of a Commissioner and shall
Philippine Council for Sustainable Development;
hold office for the unexpired portion of the term only: Provided,
finally, That in no case shall a Commissioner be designated in a
(o) Director-General of the National Security Council; temporary or acting capacity.
(p) Chairperson of the National Commission on the The Vice Chairperson and the Commissioners shall have the rank
Role of Filipino Women; and privileges of a Department Secretary and Undersecretary,
respectively. They shall be entitled to corresponding
(q) President of the League of Provinces; compensation and other emoluments and shall be subject to the
same disqualifications.
The representatives shall be appointed by the President from a (b) Coordinate and synchronize climate change
list of nominees submitted by their respective groups. They shall programs of national government agencies;
serve for a term of six (6) years without reappointment unless
their representation is withdrawn by the sector they represent. (c) Formulate a Framework Strategy on Climate Change
Appointment to any vacancy shall be only for the unexpired term to serve as the basis for a program for climate change
of the predecessor. planning, research and development, extension, and
monitoring of activities on climate change;
Only the ex officio members of the advisory board shall appoint a
qualified representative who shall hold a rank of no less than an (d) Exercise policy coordination to ensure the
Undersecretary. attainment of goals set in the framework strategy and
program on climate change;
Section 6. Meetings of the Commission. – The Commission shall
meet once every three (3) months, or as often as may be deemed (e) Recommend legislation, policies, strategies,
necessary by the Chairperson. The Chairperson may likewise call programs on and appropriations for climate change
upon other government agencies for the proper implementation adaptation and mitigation and other related activities;
of this Act.
(i) Formulate strategies on mitigating GHG and other The Framework shall be reviewed every three (3) years, or as may
anthropogenic causes of climate change; be deemed necessary.
(j) Coordinate and establish a close partnership with Section 12. Components of the Framework Strategy and Program
the National Disaster Coordinating Council in order to on Climate Change. – The Framework shall include, but not
increase efficiency and effectiveness in reducing the limited to, the following components:
people’s vulnerability to climate-related disasters;
(a) National priorities;
(k) In coordination with the Department of Foreign
Affairs, represent the Philippines in the climate change
(b) Impact, vulnerability and adaptation assessments;
negotiations;
The Commission shall set the qualifications and compensation for (c) The identification of differential impacts of climate
the technical experts. It shall provide resources for the operations change on men, women and children;
and activities of the Panel.
(d) The assessment and management of risk and
Section 11. Framework Strategy and Program on Climate vulnerability;
Change. – The Commission shall, within six (6) months from the
effectivity of this Act, formulate a Framework Strategy on Climate (e) The identification of GHG mitigation potentials; and
Change. The Framework shall serve as the basis for a program for
climate change planning, research and development, extension,
and monitoring of activities to protect vulnerable communities
from the adverse effects of climate change.
(f) The identification of options, prioritization of risks of particular LGUs. It shall likewise focus on
appropriate adaptation measures for joint projects of women and children, especially in the rural areas, since
national and local governments. they are the most vulnerable;
Section 14. Local Climate Change Action Plan. – The LGUs shall be (c) The Department of Environment and Natural
the frontline agencies in the formulation, planning and Resources (DENR) shall oversee the establishment and
implementation of climate change action plans in their respective maintenance of a climate change information
areas, consistent with the provisions of the Local Government management system and network, including on
Code, the Framework, and the National Climate Change Action climate change risks, activities and investments, in
Plan. collaboration with other concerned national
government agencies, institutions and LGUs;
Barangays shall be directly involved with municipal and city
governments in prioritizing climate change issues and in (d) The Department of Foreign Affairs (DFA) shall
identifying and implementing best practices and other solutions. review international agreements related to climate
Municipal and city governments shall consider climate change change and make the necessary recommendation for
adaptation, as one of their regular functions. Provincial ratification and compliance by the government on
governments shall provide technical assistance, enforcement and matters pertaining thereto;
information management in support of municipal and city climate
change action plans. Inter-local government unit collaboration
(e) The Philippine Information Agency (PIA) shall
shall be maximized in the conduct of climate- related activities.
disseminate information on climate change, local
vulnerabilities and risk, relevant laws and protocols
LGUs shall regularly update their respective action plans to reflect and adaptation and mitigation measures; and
changing social, economic, and environmental conditions and
emerging issues. The LGUs shall furnish the Commission with
(f) Government financial institutions, shall, any
copies of their action plans and all subsequent amendments,
provision in their respective charters to the contrary
modifications and revisions thereof, within one (1) month from
notwithstanding, provide preferential financial
their adoption. The LGUs shall mobilize and allocate necessary
packages for climate change- related projects. In
personnel, resources and logistics to effectively implement their
consultation with the Bangko Sentral ng Pilipinas (BSP),
respective action plans.
they shall, within thirty (30) days from the effectivity of
this Act, issue and promulgate the implementing
The local chief executive shall appoint the person responsible for guidelines therefor.
the formulation and implementation of the local action plan.
The Commission shall evaluate, recommend the approval of loans
It shall be the responsibility of the national government to extend and monitor the use of said funds of LGUs.
technical and financial assistance to LGUs for the accomplishment
of their Local Climate Change Action Plans.
Section 16. Coordination with Various Sectors. – In the
development and implementation of the National Climate Change
The LGU is hereby expressly authorized to appropriate and use Action Plan, and the local action plans, the Commission shall
the amount from its Internal Revenue Allotment necessary to coordinate with the nongovernment organizations (NGOs), civic
implement said local plan effectively, any provision in the Local organizations, academe, people’s organizations, the private and
Government Code to the contrary notwithstanding. corporate sectors and other concerned stakeholder groups.
Section 15. Role of Government Agencies. – To ensure the Section 17. Authority to Receive Donations and/or Grants. – The
effective implementation of the framework strategy and program Commission is hereby authorized to accept grants, contributions,
on climate change, concerned agencies shall perform the donations, endowments, bequests, or gifts in cash, or in kind from
following functions: local and foreign sources in support of the development and
implementation of climate change programs and plans: Provided,
That in case of donations from foreign governments, acceptance
(a) The Department of Education (DepED) shall
thereof shall be subject to prior clearance and approval of the
integrate climate change into the primary and
President of the Philippines upon recommendation of the
secondary education curricula and/or subjects, such as,
Secretary of Foreign Affairs: Provided, further, That such
but not limited to, science, biology, sibika, history,
donations shall not be used to fund personal services
including textbooks, primers and other educational
expenditures and other operating expenses of the Commission.
materials, basic climate change principles and
concepts;
The proceeds shall be used to finance:
(b) The Department of the Interior and Local
Government (DILG) and Local Government Academy (a) Research, development, demonstration and
shall facilitate the development and provision of a promotion of technologies;
training program for LGUs in climate change. The
training program shall include socioeconomic,
(b) Conduct of assessment of vulnerabilities to climate
geophysical, policy, and other content necessary to
change impacts, resource inventory, and adaptation
address the prevailing and forecasted conditions and
capability building;
(c) Advocacy, networking and communication activities Section 23. Transitory Provisions. – Upon the organization of the
in the conduct of information campaign; and Commission, the Presidential Task Force on Climate Change
created under Administrative Order No. 171 and the Inter-Agency
Committee on Climate Change created by virtue of Administrative
(d) Conduct of such other activities reasonably
Order No. 220, shall be abolished: Provided, That their powers
necessary to carry out the objectives of this Act, as
and functions shall be absorbed by the Commission: Provided,
may be defined by the Commission.
further, That the officers and employees thereof shall continue in
a holdover capacity until such time as the new officers and
Section 18. Funding Allocation for Climate Change. – All relevant employees of the Commission shall have been duly appointed
government agencies and LGUs shall allocate from their annual pursuant to the provisions of this Act. All qualified regular or
appropriations adequate funds for the formulation, development permanent employees who may be transferred to the
and implementation, including training, capacity building and Commission shall not suffer any loss in seniority or rank or
direct intervention, of their respective climate change programs decrease in emoluments. Any employee who cannot be absorbed
and plans. It shall also include public awareness campaigns on the by the Commission shall be entitled to a separation pay under
effects of climate change and energy-saving solutions to mitigate existing retirement laws
these effects, and initiatives, through educational and training
programs and micro-credit schemes, especially for women in rural
areas. In subsequent budget proposals, the concerned offices and
units shall appropriate funds for program/project development
and implementation including continuing training and education
in climate change.1avvphi1
Sec. 2 Powers and Functions of the Council. The Council shall WHEREAS, to strengthen PCSD, the expansion of its membership
have the following powers and function: as well as the establishment of local councils for sustainable
development were provided for through the issuance of Executive
1`) To review and ensure the implementation on the Order No. 370 (s. 1996);
commitments the Philippines made in the light of the UNCED
Conference; WHEREAS, in order to operationalize sustainable development at
the local level, Memorandum Order No. 47 (s. 1999) was issued
mandating local government units (LGUs) to formulate and
2) To establish guidelines and mechanisms that will expand,
implement their sustainable integrated area development plans
concretize and operationalize the sustainable development
principles as embodied in the Rio Declaration, the UNCED Agenda or Local Agenda 21 with the assistance of concerned government
agencies;
21, the National Conservation Strategy, and the Philippine Agenda
21, and incorporate them in the preparation of the Medium Term
Development Plan both at the national and local levels with active WHEREAS, in light of changing circumstances and, emerging issues
participation from the non-government sector a and people's on sustainable development locally and globally there is an urgent
organizations; need to pursue new interventions through a more responsive
PCSD structure;
3) Too provide directions in the form of policy reforms, programs
and new legislations that respond to the continuing and emerging WHEREAS, for the PCSD to be more effective and responsive in
issues and charting future actions related to environment and ensuring the realization of the government’s sustainable
developments; development goals, there is a need to streamline and define its
core functions and membership, keeping in mind the various
agencies in government whose functions are integral components
4) To act as the coordinating mechanism in cooperation either of the overall government sustainable development operational
DFA-office of the United Nations Commission for Sustainable thrusts;
Development and actively solicit assistance and cooperation
towards the realization of our commitments made at the UNCED; WHEREAS, there is a need for PCSD to focus on strategic
interventions that have significant and catalytic impact on
5) To require any and all government agencies for assistance in to sustainable development;
forum of personnel, facilities, and other resources which is
essential for the performance for the duties of the Council;
WHEREAS, it is necessary to further strengthen the PCSD as the
lead instrumentality responsible for mainstreaming sustainable 2. To act as the coordinating mechanism with the United Nations
development in national government and affiliated agencies, Commission on Sustainable Development (UNCSD) and the
Congress, LGUs, as well as existing multi-stakeholder governance Governing Bodies or Secretaries of other related multilateral
mechanisms. conventions, through the Department of Foreign Affairs (DFA);
NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of 3. To establish guidelines and mechanisms that will ensure that
the Philippines, by virtue of the powers vested in me by law, do the sustainable development principles, as embodied in the Rio
hereby order: Declaration, Agenda 21, and the Philippine Agenda 21, are
integrated in the formulation of national, regional and local
Section 1. Further Strengthening the PCSD. — The Philippine development policies, plans and programs;
Council for Sustainable Development, hereinafter referred to as
the Council, is hereby further strengthened, structurally and 4. To formulate policies and recommend new actions to
functionally, in accordance with the provisions of this Executive appropriate bodies on sustainable development issues focusing
Order. on the environment dimensions of social and economic
interventions and the social and economic dimensions of
Sec. 2. Composition of the Council. — environment interventions;
The Chairperson of the Council shall be the Secretary of Socio- Sec. 5. Participation of Other Government Agencies in the Council.
Economic Planning and NEDA Director-General. The Secretary of — The Council can call upon other government agencies and
the Department of Environment and Natural Resources (DENR) instrumentalities, civil society, business and labor sector
shall be the Vice-Chairperson. organizations to participate in Council business, including its
meetings, if so warranted by conditions as may exist from time to
Sec. 3. Terms of Office and Meetings. — The term of office of time. For this purpose, other government agencies shall identify a
members shall be co-terminus with their appointment or election PCSD focal officer not lower than a rank of Director who shall
in their respective departments or organizations. coordinate their agency’s participation in PCSD concerns.
The Council shall meet quarterly, or as frequently as may be Sec. 6. Secretariat. — The Council shall be assisted by a
deemed necessary. Special meetings may be convened at the call Coordinating Secretariat which shall be based at the NEDA, the
of the Chairperson or by a majority of the members of the composition of which shall be determined by the Director-
Council. In the absence of the Chairperson, the Vice-Chairperson General, and a Counterpart Secretariat, the composition of which
shall preside. In case any civil society, business or labor sector shall be determined by the Civil Society Counterpart Council for
member of the Council cannot attend the meeting, he or she shall Sustainable Development (CSCCSD).
be represented by the alternate to be designated through their
respective selection process for the purpose. Sec. 7. Budget. — There shall be provided in the General
Appropriations Act (GAA) a regular line item under the NEDA
Sec. 4. Powers and Functions of the Council. — budget to cover the operational requirements of the Council
subject to the prescribed budgetary guidelines. Other member-
1. To review and ensure the implementation of the commitments agencies of the Council shall also include a line item in the GAA
made by the Philippines in the light of the United Nations under their respective agency budgets to cover the cost of their
Conference on Environment and Development (UNCED) and its activities related to PCSD.
follow-up processes;
bodies including the Regional Development Councils (RDCs) and the
local councils for sustainable development.
Section 5. Role of the Civil Society, Labor and Business Sectors. The
PCSD shall coordinate with civil society, labor and business sectors in
Memorandum Order No. 399: DIRECTING THE operationalizing Philippine Agenda 21. Major stakeholders from these
OPERATIONALIZATION OF THE PHILIPPINE sectors are thereby enjoined to adopt and implement the principles
AGENDA 21 and action agenda contained in the Philippine Agenda 21.
Republic of the Philippines vs. The City of Davao This however presuppose that a project, for which an
Environmental Compliance Certificate is necessary, is
Republic vs. Alvarez, in his capacity as Sec. of DENR environmentally critical or within an environmentally critical
area. In the case at bar, respondent has sufficiently shown that
Alvarez filed an application for a Certificate of Non- the Artica Sports Dome will not have a significant negative
Coverage for its proposed project, the Davao Artica environmental impact because it is not an environmentally critical
Sports Dome, with the Environmental Management project and it is not located in an environmentally critical area.
Bureau (EMB), Region 11. The EMB Region 11 denied They submitted Certification from the City Planning and
the application on ground that the proposed project Development Office, PHILVOLCS, CENRO-West in support thereof.
was within an environmentally critical area, and ruled
that under the Environmental Impact Statement
System, the City of Davao must undergo the The Environmental Impact Statement System, which ensures
environmental impact assessment (EIA) process to environmental protection and regulates certain government
secure an Environmental Compliance Certificate (ECC), activities affecting the environment, was established by
before it can proceed with the construction of its Presidential Decree No. 1586. Under Article II, Section 1, of the
project Rules and Regulations Implementing PD 1586, the declaration of
Believing that it was entitled to a Certificate of Non- certain projects or areas as environmentally critical, and which
Coverage, respondent filed a petition for mandamus shall fall within the scope of the Environmental Impact Statement
with the RTC of Davao alleging that the proposed System, shall be by Presidential Proclamation.
project was neither an environmentally critical project
nor within an environmentally critical area, thus it was
outside the scope of the EIS system. Pursuant thereto, Proclamation No. 2146 was issued
The RTC granted the writ of mandamus and directed proclaiming the following areas and types of projects as
EMB to issue a Certificate of Non-Coverage. It ruled environmentally critical and within the scope of the
that there is nothing in the EIA System guidelines Environmental Impact Statement System established under PD
which requires LGUs to comply with the EIS law, as 1586:
only agencies and instrumentalities are mandated to
go through the EIA process for their proposed projects A. Environmentally Critical Projects
which have significant effect on the quality of the
environment. A local government unit, not being an
I. Heavy Industries
agency or instrumentality of the National Government,
a. Non-ferrous metal industries
is deemed excluded
b. Iron and steel mills
c. Petroleum and petro-chemical industries including
Issue: Whether LGUs are covered by the EIA System?
oil and gas
d. Smelting plants
Decision:
II. Resource Extractive Industries
a. Major mining and quarrying projects Environmentally Non-Critical Projects. — All other projects,
b. Forestry projects undertakings and areas not declared by the President as
environmentally critical shall be considered as non-critical and
1. Logging shall not be required to submit an environmental impact
2. Major wood processing projects statement. The National Environmental Protection Council, thru
3. Introduction of fauna (exotic-animals) in the Ministry of Human Settlements may however require non-
public/private forests critical projects and undertakings to provide additional
4. Forest occupancy environmental safeguards as it may deem necessary.
5. Extraction of mangrove products
6. Grazing The Artica Sports Dome in Langub does not come close to
c. Fishery Projects any of the projects or areas enumerated above. Neither is it
1. Dikes for/and fishpond development projects analogous to any of them. It is clear, therefore, that the said
project is not classified as environmentally critical, or within an
environmentally critical area. Consequently, the DENR has no
III. Infrastructure Projects
choice but to issue the Certificate of Non-Coverage. It becomes
a. Major dams
its ministerial duty, the performance of which can be compelled
b. Major power plants (fossil-fueled, nuclear fueled,
by writ of mandamus, such as that issued by the trial court in the
hydroelectric or geothermal)
case at bar.
c. Major reclamation projects
d. Major roads and bridges
Laguna Lake Development Authority vs CA
B. Environmentally Critical Areas
1. All areas declared by law as national parks,
RA 4850 was enacted creating the "Laguna Lake Development
watershed reserves, wildlife preserves and
Authority." This agency was supposed to accelerate the
sanctuaries;
development and balanced growth of the Laguna Lake area and
2. Areas set aside as aesthetic potential tourist
the surrounding provinces, cities and towns, in the act, within the
spots;
context of the national and regional plans and policies for social
3. Areas which constitute the habitat for any
and economic development.
endangered or threatened species of
indigenous Philippine Wildlife (flora and
PD 813 amended certain sections RA 4850 because of the concern
fauna);
for the rapid expansion of Metropolitan Manila, the suburbs and
4. Areas of unique historic, archaeological, or
the lakeshore towns of Laguna de Bay, combined with current and
scientific interests;
prospective uses of the lake for municipal-industrial water supply,
5. Areas which are traditionally occupied by
irrigation, fisheries, and the like.
cultural communities or tribes;
6. Areas frequently visited and/or hard-hit by
To effectively perform the role of the Authority under RA 4850,
natural calamities (geologic hazards, floods,
the Chief Executive issued EO 927 further defined and enlarged
typhoons, volcanic activity, etc.);
the functions and powers of the Authority and named and
7. Areas with critical slopes;
enumerated the towns, cities and provinces encompassed by the
8. Areas classified as prime agricultural lands;
term "Laguna de Bay Region". Also, pertinent to the issues in this
9. Recharged areas of aquifers;
case are the following provisions of EO 927 which include in
10. Water bodies characterized by one or any
particular the sharing of fees:
combination of the following conditions;
Sec 2: xxx the Authority shall have exclusive jurisdiction to issue
a. tapped for domestic purposes
permit for the use of all surface water for any projects or activities
b. within the controlled and/or protected
in or affecting the said region including navigation, construction,
areas declared by appropriate authorities
and operation of fishpens, fish enclosures, fish corrals and the
c. which support wildlife and fishery activities
like.
11. Mangrove areas characterized by one or any combination
of the following conditions:
SEC. 3. Collection of Fees. The Authority is hereby empowered to
a. with primary pristine and dense young
collect fees for the use of the lake water and its tributaries for all
growth;
beneficial purposes including but not limited to fisheries,
b. adjoining mouth of major river systems;
recreation, municipal, industrial, agricultural, navigation,
c. near or adjacent to traditional productive
irrigation, and waste disposal purpose; Provided, that the rates of
fry or fishing grounds;
the fees to be collected, and the sharing with other government
d. which act as natural buffers against shore
agencies and political subdivisions, if necessary, shall be subject to
erosion, strong winds and storm floods;
the approval of the President of the Philippines upon
e. on which people are dependent for their
recommendation of the Authority's Board, except fishpen fee,
livelihood.
which will be shared in the following manner: 20 percent of the
12. Coral reefs, characterized by one or any combinations of the
fee shall go to the lakeshore local governments, 5 percent shall go
following conditions:
to the Project Development Fund which shall be administered by
a. with 50% and above live
a Council and the remaining 75 percent shall constitute the share
coralline cover;
of LLDA. However, after the implementation within the three-year
b. spawning and nursery grounds
period of the Laguna Lake Fishery Zoning and Management Plan
for fish;
the sharing will be modified as follows: 35 percent of the fishpen
c. which act as natural breakwater of
fee goes to the lakeshore local governments, 5 percent goes to
coastlines.
the Project Development Fund and the remaining 60 percent shall prohibition and injunction. The CA dismissed the LLDA’s
be retained by LLDA; Provided, however, that the share of LLDA consolidated petitions. It ruled that (A) LLDA is not among those
shall form part of its corporate funds and shall not be remitted to quasi-judicial agencies of government appealable only to the
the National Treasury as an exception to the provisions of Court of Appeals; (B) the LLDA charter does vest LLDA with quasi-
Presidential Decree No. 1234. judicial functions insofar as fishpens are concerned; (C) the
provisions of the LLDA charter insofar as fishing privileges in
Then came Republic Act No. 7160. The municipalities in the Laguna de Bay are concerned had been repealed by the Local
Laguna Lake Region interpreted the provisions of this law to mean Government Code of 1991; (D) in view of the aforesaid repeal, the
that the newly passed law gave municipal governments the power to grant permits devolved to respective local government
exclusive jurisdiction to issue fishing privileges within their units concerned.
municipal waters because R.A. 7160 provides:
Issue: Which agency of the Government - the LLDA or the
"Sec. 149. Fishery Rentals; Fees and Charges (a) Municipalities towns and municipalities comprising the region - should exercise
shall have the exclusive authority to grant fishery privileges in the jurisdiction over the Laguna Lake and its environs insofar as the
municipal waters and impose rental fees or charges therefor in issuance of permits for fishery privileges is concerned?
accordance with the provisions of this Section.
Municipal governments thereupon assumed the authority to issue Held: LLDA
fishing privileges and fishpen permits. Big fishpen operators took
advantage of the occasion to establish fishpens and fishcages to Ratio: Section 4 (k) of RA 4850, the provisions of PD 813, and
the consternation of the Authority. Unregulated fishpens and Section 2 of EO 927, specifically provide that the LLDA shall have
fishcages occupied almost one-third the entire lake water surface exclusive jurisdiction to issue permits for the use or all surface
area, increasing the occupation drastically from 7,000 ha in 1990 water for any projects or activities in or affecting the said region,
to almost 21,000 ha in 1995. The Mayor's permit to construct including navigation, construction, and operation of fishpens, fish
fishpens and fishcages were all undertaken in violation of the enclosures, fish corrals and the like. On the other hand, RA 7160
policies adopted by the Authority on fishpen zoning and the has granted to the municipalities the exclusive authority to grant
Laguna Lake carrying capacity. In view of the foregoing fishery privileges in municipal waters. The Sangguniang Bayan
circumstances, the Authority served notice to the general public may grant fishery privileges to erect fish corrals, oyster, mussels
that: or other aquatic beds or bangus fry area within a definite zone of
the municipal waters.
“ 1. All fishpens, fishcages and other aqua-culture structures in
the Laguna de Bay Region, which were not registered or to which The provisions of RA7160 do not necessarily repeal the laws
no application for registration and/or permit has been filed with creating the LLDA and granting the latter water rights authority
Laguna Lake Development Authority as of March 31, 1993 are over Laguna de Bay and the lake region.
hereby declared outrightly as illegal.
2. All fishpens; fishcages and other aqua-culture structures so The Local Government Code of 1991 does not contain any express
declared as illegal shall be subject to demolition which shall be provision which categorically expressly repeal the charter of the
undertaken by the Presidential Task Force for illegal Fishpen and Authority. It has to be conceded that there was no intent on the
Illegal Fishing. part of the legislature to repeal Republic Act No. 4850 and its
3. Owners of fishpens, fishcages and other aqua-culture amendments. The repeal of laws should be made clear and
structures declared as illegal shall, without prejudice to expressed.
demolition of their structures be criminally charged in accordance
with Section 39-A of Republic Act 4850 as amended by P.D. 813 It has to be conceded that the charter of the LLDA constitutes a
for violation of the same laws. Violations of these laws carries a special law. RA 7160 is a general law. It is basic is basic in statutory
penalty of imprisonment of not exceeding 3 years or a fine not construction that the enactment of a later legislation which is a
exceeding Five Thousand Pesos or both at the discretion of the general law cannot be construed to have repealed a special law. It
court. is a well-settled rule in this jurisdiction that "a special statute,
provided for a particular case or class of cases, is not repealed by
All operators of fishpens, fishcages and other aqua-culture a subsequent statute, general in its terms, provisions and
structures declared as illegal in accordance with the foregoing application, unless the intent to repeal or alter is manifest,
Notice shall have one (1) month on or before 27 October 1993 to although the terms of the general law are broad enough to
show cause before the LLDA why their said fishpens, fishcages and include the cases embraced in the special law." Where there is a
other aqua-culture structures should not be conflict between a general law and a special statute, the special
demolished/dismantled." statute should prevail since it evinces the legislative intent more
clearly that the general statute. The special law is to be taken as
One month, thereafter, the Authority sent notices to the an exception to the general law in the absence of special
concerned owners of the illegally constructed fishpens, fishcages circumstances forcing a contrary conclusion. This is because
and other aqua-culture structures advising them to dismantle implied repeals are not favored and as much as possible, given to
their respective structures within 10 days from receipt thereof, all enactments of the legislature. A special law cannot be
otherwise, demolition shall be effected. repealed, amended or altered by a subsequent general law by
mere implication.
The fishpen owners filed injunction cases against the LLDA. The
LLDA filed motions to dismiss the cases against it on jurisdictional Considering the reasons behind the establishment of the
grounds. The motions to dismiss were denied. Meanwhile, Authority, which are enviromental protection, navigational safety,
TRO/writs of preliminary mandatory injunction were issued and sustainable development, there is every indication that the
enjoining the LLDA from demolishing the fishpens and similar legislative intent is for the Authority to proceed with its mission.
structures in question. Hence, the present petition for certiorari,
We are on all fours with the manifestation of LLDA that "Laguna Authority as provided for in its charter, the Regional Trial Courts
de Bay, like any other single body of water has its own unique have jurisdiction.
natural ecosystem. The 900 km lake surface water, the 8 major
river tributaries and several other smaller rivers that drain into In view of the foregoing, this Court holds that Section 149 of RA
the lake, the 2,920 km2 basin or watershed transcending the 7160, otherwise known as the Local Government Code of 1991,
boundaries of Laguna and Rizal provinces, constitute one has not repealed the provisions of the charter of the LLDA,
integrated delicate natural ecosystem that needs to be protected Republic Act No. 4850, as amended. Thus, the Authority has the
with uniform set of policies; if we are to be serious in our aims of exclusive jurisdiction to issue permits for the enjoyment of fishery
attaining sustainable development. This is an exhaustible natural privileges in Laguna de Bay to the exclusion of municipalities
resource-a very limited one-which requires judicious management situated therein and the authority to exercise such powers as are
and optimal utilization to ensure renewability and preserve its by its charter vested on it.
ecological integrity and balance. Managing the lake resources
would mean the implementation of a national policy geared
towards the protection, conservation, balanced growth and
sustainable development of the region with due regard to the
inter-generational use of its resources by the inhabitants in this
part of the earth. The authors of Republic Act 4850 have foreseen
this need when they passed this LLDA law-the special law
designed to govern the management of our Laguna de Bay lake
resources. Laguna de Bay therefore cannot be subjected to
fragmented concepts of 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 water resource management policy, therefore, is
necessary to conserve, protect and sustainably develop Laguna de
Bay."
All other laws, decrees, executive orders, rules and regulations g. The timelines prescribed by this Order, within which an
inconsistent herewith are hereby repealed, amended or modified Environmental - Compliance Certificate must be issued, or denied,
accordingly. apply only to processes and actions within the Environmental
Management Bureau's (EMB) control and do not include actions
or activities that are the responsibility of the proponent.
Section 2. Objective
DENR Administrative Order No. 2003- 30 The objective of this Administrative Order is to rationalize and
SUBJECT: Implementing Rules and Regulations (IRR) for the streamline the EIS System to make it more effective as a project
Philippine Environmental Impact Statement (EIS) System planning and management tool by:
Consistent with the continuing effort of the Department of a. Making the System more responsive to the demands and needs
Environment and Natural Resources (DENR) to rationalize and of the project proponents and the various stakeholders;
streamline the implementation of the Philippine Environmental
Impact Statement (EIS) System established under Presidential b. Clarifying the, coverage of the System and updating it to take
Decree (PD) No. 1586, Presidential Proclamation No. 2146 into consideration industrial and technological innovations and
defining the scope of the EIS System and pursuant to trends
Administrative Order No. 42 issued by tile Office of the President
on November 2, 2002, the following rules and regulations are c. Standardizing requirements to ensure focus on critical
hereby promulgated; environment parameters;
Section 1. Basic Policy and Operating Principles e. Assuring that critical environmental concerns are addressed
during project development and implementation
Consistent with the principles of sustainable development, it is
the policy of the DENR to implement a systems-oriented and Section 3. Definition of Terms
integrated approach to the LIS system to ensure a rational balance
between socio-economic development and environmental For the purpose of this Order, the following definitions shall be
protection for the benefit of present and future generations. applied;
The following are the key operating principles in the a. Certificate, of Non-Coverage - a certification issued by the EMB
implementation of the Philippine EIS System: certifying that, based on the submitted project description, the
project is not covered by the EIS System and is not required to
secure an ECC k. Environmental Impact Statement (EIS) - document, prepared
and submitted by the project proponent and/or EIA Consultant
b. Co-located projects / undertakings- projects, or series of similar that serves as an application for an ECC. It is a comprehensive
projects or a project subdivided to several phases and/or stages study of the significant impacts of a project on the environment. It
by the same proponent, located in contiguous areas. includes an Environmental Management Plan/Program that the
proponent will fund and implement to protect the environment
c Environment - Surrounding air, water (both ground and surface),
land, flora, fauna, humans and their interrelations. l. Environmental Management Plan/Program (EMP) - section in
the EIS that details the prevention, mitigation, compensation,
d. Environmental Compliance Certificate (ECC)- document issued contingency and monitoring measures to enhance positive
by the DENR/EMB after a positive review of an ECC application, impacts and minimize negative impacts and risks of a proposed
certifying that based on the representations of the proponent, the project or undertaking. For operating projects, the EMP can also
proposed project or undertaking will not cause significant be derived from an EMS,
negative: environmental impact. The ECC also certifies that the
proponent has complied with all the requirements of the EIS m. Environmental Management Systems (EMS) - refers to the
System and has committed to implement its approved EMB PEPP EMS as provided for under DAO 2003-14, which is a
Environmental Management Plan. The ECC contains specific part of the overall management system of a project or
measures and conditions that the project proponent has to organization that includes environmental policy, organizational
undertake before and during the operation of a project, and in structure, planning activities, responsibilities, practices,
some cases, during the project's abandonment phase to mitigate procedures, processes and resources for developing,
identified environmental impacts. implementing, achieving, reviewing and maintaining an improved
overall environmental performance.
e. Environmentally Critical Area (ECA) - area delineated as
environmentally sensitive such that significant environmental n. Environmental Monitoring Fund (EMF) -fund that a proponent
impacts are expected if certain types of proposed projects or shall set up after an ECC is issued for its project or undertaking, to
programs are located, developed or, implemented in it. be used to support the activities of the multi-partite monitoring
team. It shall be immediately accessible and easily disbursable.
f. Environmentally Critical Project (ECP) - project or program that
has high potential for significant negative environmental impact. o. Environmental Performance - capability of proponents to
mitigate environmental impacts of projects or programs.
g. Environmental Guarantee Fund (EGF) - fund to be set up by a
project proponent which shall be readily accessible and p. Environmental Performance Report and Management Plan
disbursable for the immediate clean-up or rehabilitation of areas (EPRMP) - documentation of the actual cumulative environmental
affected by damages in the environment and the resulting impacts and effectiveness of current measures for single projects
deterioration of environmental quality as a direct consequence of that are already operating but without ECC's, i.e., Category A-3.
a project's construction, operation or abandonment. It shall For Category B-3 projects, a checklist form of the EPRMP would
likewise be used to compensate parties and communities affected suffice.
by the negative impacts of the project, and to fund community-
based environment related projects including, but not limited to, q. Environmental Risk Assessment (ERA) - assessment, through
information and education and emergency preparedness the use of universally accepted and scientific methods, of risks
programs. associated with a project. It focuses on determining the
probability of occurrence of accidents and their magnitude (e.g.
h. Environmental Impact Assessment (EIA) - process that involves failure, of containment or exposure to hazardous materials or
evaluating and predicting the likely impacts of a project (including situations.)
cumulative impacts) on the environment during construction,
commissioning, operation and abandonment. It also includes r. EMS-based EMP - environmental management plan based on
designing appropriate preventive, mitigating and enhancement the environmental management system (EMS) standard as
measures addressing these consequences to protect the defined in the DAO 2003-14.
environment and the community's welfare. The process is
undertaken by, among others, the project proponent and/or EIA s. Initial Environmental Examination (IEE) Report – document
Consultant, EMB, a Review Committee, affected communities and similar to an EIS, but with reduced details and depth of
other stakeholders. assessment and discussion
i. Environmental Impact Assessment Consultant - a professional or t. Initial Environmental Examination (IEE) Checklist Report -
group of professionals commissioned by the proponent to simplified checklist version of an IEE Report, prescribed by the
prepare the EIS/IEE and other related documents. In some cases, DENR, to be filled up by a proponent to identify and assess a
the person or group referred to may be the proponent's technical project's environmental impacts and the mitigation/enhancement
staff. measures to address such impacts.
j. Environmental Impact Assessment Review Committee (EIARC) - u. Multipartite Monitoring Team (MMT) - community-based multi-
a body of independent technical experts and professionals of sectoral team organized for the purpose of monitoring the
known probity from various fields organized by the EMB to proponent's compliance with ECC conditions, EMP and applicable
evaluate the EIS and other related documents and to make laws, rules and regulations.
appropriate recommendations regarding the issuance or non-
issuance of an ECC.
v. Programmatic Environmental Impact Statement (PEIS) - ii. Technology - all the knowledge, products, processes, tools,
documentation of comprehensive studies on environmental methods and systems employed in the creation of goods or
baseline conditions of a contiguous area. It also includes an providing services.
assessment of the carrying capacity of the area to absorb impacts
from co-located projects such as those in industrial estates or ARTICLE II
economic zones (ecozones), ECC APPLICATION PROCESSING AND APPROVAL PROCEDURES
w. Programmatic Environmental Performance Report and Section 4. Scope of the EIS System
Management Plan (PEPRMP) - documentation of actual
cumulative environmental impacts of collocated projects with 4.1 In general, only projects that pose potential significant impact
proposals for expansion. The PEPRMP should also describe the to the environment shall be required to secure ECC's. In
effectiveness of current environmental mitigation measures and coordination with the Department of Trade and Industry (DTI) and
plans for performance improvement. other concerned government agencies, the EMB is authorized to
update or make appropriate revisions to the technical guidelines
x. Project Description (PD) - document, which may also be a for EIS System implementation.
chapter in an EIS, that describes the nature, configuration, use of
raw materials and natural resources, production system, waste or 4.2 The issuance of ECC or CNC for a project under the EIS System
pollution generation and control and the activities of a proposed does not exempt the proponent from securing other government
project. It includes a description of the use of human resources as permits and clearances as required by other laws.
well as activity timelines, during the pre-construction,
construction, operation and abandonment phases. It is to be used In determining the scope of the EIS System, two factors are
for reviewing co-located and single projects under Category C, as considered: (i) the nature of the project and its potential to cause
well as for Category D projects. significant negative environmental impacts, and (ii) the sensitivity
or vulnerability of environmental resources in the project area.
Y. Project or Undertaking - any activity, regardless of scale or 4.3 The specific criteria for, determining projects or undertakings
magnitude, which may have significant impact on the to be covered by the EIS System are as follows:
environment.
a. Characteristics of the project or undertaking
z. Proponent - any natural or juridical person intending to • Size of the project
implement a project or undertaking. • Cumulative nature of impacts vis-a-vis: other projects
• Use of natural resources
aa. Public Participation - open, transparent, gender-sensitive, and • Generation of waste and environment-related nuisance
community based process aimed at ensuring the social • Environment-related hazards and risk of accidents
acceptability of a project or undertaking, involving the broadest
range of stakeholders, commencing at the earliest possible stage, b. Location of the Project
of project design and development and continuing until post- • Vulnerability of the project area to disturbances due to its
assessment monitoring. ecological importance, endangered or protected status
• Conformity of the proposed project to existing land use,
bb. Procedural Review - phase in the ECC application review based on approved zoning or on national laws and
process to check for the completeness the required documents, regulations
conducted by EIAM Division at the EMB Central Office or Regional • Relative abundance, quality and regenerative capacity of
Office. natural resources in the area, including the impact
absorptive capacity of the environment
cc. Process Industry - an industry whose project operation stage
involves chemical, mechanical or other processes. c. Nature of the potential impact
• Geographic extent of the impact and size of affected
dd. Scoping - the stage in the EIS System where information and population
project impact assessment requirements are established to • Magnitude and complexity of the impact
provide the proponent and the stakeholders the scope of work • Likelihood, duration, frequency, and reversibility of the
and terms of reference for the EIS. impact
ee. Secretary - the Secretary of the DENR. The following are the categories of projects/undertakings under
the EIS system:
ff. Social Acceptability - acceptability of a project by affected
communities based on timely and informed participation in the Category A. Environmentally Critical Projects (ECPs) with
EIA process particularly with regard to environmental impacts that significant potential to cause negative environmental impacts
are of concern to them.
Category B. Projects that are not categorized as ECPs, but which
gg. Stakeholders - entities who may be directly and significantly may cause negative environmental impacts because they are
affected by the project or undertaking. located in Environmentally Critical Areas (ECA's)
hh. Substantive Review - the phase in the EIA process whereby Category C. Projects intended to directly enhance environmental
the document submitted is subjected to technical evaluation by quality or address existing environmental problems not falling
the EIARC. under Category A or B.
Category D. Projects unlikely to cause adverse environmental h. Supporting documents; including technical/socio-economic
impacts. data used/generated; certificate of zoning viability and municipal
land use plan; and proof of consultation with stakeholders;
4.4 Proponents of co-located or single projects that fall under i. Proposals for Environmental Monitoring and Guarantee Funds
Category A and B are required to secure ECC. For co-located including justification of amount, when required;
projects, the proponent has the option to secure a Programmatic j. Accountability statement of EIA consultants and the project
ECC. For ecozones, ECC application may be programmatic based proponent; and
on submission of a programmatic EIS, or locator-specific based on k. Other clearances and documents that may be determined and
submission of project EIS by each locator. agreed upon during scoping.
4.5 Projects under Category C are required submit Project 5.2.2. Initial Environmental Examination (IEE) Report
Description. IEE Report is similar to an EIS, but with reduced details of data and
depth of assessment and discussion. It may be customized for
4.6 Projects classified under Category D may secure a CNC. The different types of projects under Category B. The EMB shall
EMB-DENR, however, may require such, projects or undertakings coordinate with relevant government agencies and the private
to provide additional environmental safeguards as it may deem sector to customize and update IEE Checklists to further
necessary. , streamline ECC processing, especially for small and medium
enterprises.
4.7 Projects/undertakings introducing new technologies or
construction technique but which may cause significant negative 5.2.3. Programmatic Environmental Impact Statement (PEIS)
environmental impacts shall be required to submit a Project
Description Which will be used as basis by EMB for screening the The PEIS shall contain the following:
project and
determining its category. a. Executive Summary;
Section 5. Requirements for Securing Environmental Compliance b. Project Description;
Certificate (ECC) and Certificate of Non-Coverage (CNC) c. Summary matrix of scoping agreements as validated by EMB;
d. [-co-profiling of air, land, water, and relevant people aspects;
5.1 Documentary Requirements for Proponents ECC processing e. Environmental carrying capacity analysis;
requirements shall focus on information needed to assess critical f. Environmental Risk Assessment (if found necessary during
environmental impacts of projects. Processing requirements shall scoping);
be customized based on the project categories. g. Environmental Management Plan to include allocation scheme
for discharge of pollutants; criteria for acceptance of locators,
The total maximum processing time reckons from the acceptance environmental management guidebook for locators, and
of the ECC/CNC application for substantive review up to the environmental liability scheme;
issuance of the decision h. Duties of the Environmental Management Unit to be created;
i. Proposals for Environmental Monitoring & Guarantee Funds and
5.2 Forms and Contents of EIA Study Reports and Other terms of reference for the Multi-partite Monitoring Team, and
Documents Required Under the EIS System j. Other supporting documents and clearances that may be agreed
during the scoping.
The following are the different forms of EIA study reports and
documents required under the EIS System. DENR employees are 5.2.4. Programmatic Environmental Performance Report and
prohibited from taking part in the preparation of such documents. Management Plan (PEPRMP).
The DENR/EMB shall limit to a maximum of two (2) official
requests (in writing) to the project proponent for additional The PEPRMP shall contain the following:
information, which shall be made within the first 75% of the
processing timeframe shown in Section 5.1.1. a. Project Description of the co-located projects;
b. Documentation of the actual environmental performance
5.2.1. Environmental Impact Statement (EIS). based on current/past environmental management measures
implemented, and
The EIS should contain at least the following: c. An EMP based on an environmental management system
framework and standard set by EMB.
a. EIS Executive Summary;
b. Project Description; 5.2.5. Environmental Performance Report and Management Plan
c. Matrix of the scoping agreement identifying critical issues and
concerns, as validated by EMB; The EPRMP shall contain the following:
d. Baseline environmental conditions focusing on the sectors (and a. Project Description;
resources) most significantly affected by the proposed action; b. Baseline conditions for critical environmental parameters;
e. Impact assessment focused on significant environmental c. Documentation of the environmental performance based on
impacts (in relation to project construction/commissioning, the current/past environmental management measures
operation and decommissioning), taking into account cumulative implemented;
impacts; d. Detailed comparative, description of the proposed project
f. Environmental Risk Assessment if determined by EMB as expansion and/or process modification with corresponding
necessary during scoping; material and energy balances in the case of process industries,
g. Environmental Management Program/Plan; e. EMP based on an environmental management system
framework and standard set by EMB.
5.2.6. Project Description (PD) will be attained, or how an existing environmental problem will be
effectively solved or mitigated by the project, and
The PD shall be guided by the definition of terms and shall contain f. A detailed location map of the impacted site showing relevant
the following: and update IEE Checklists to further streamline ECC features (e.g. slope, topography, human settlements).
processing, especially for small and medium enterprises. g. Timelines for construction and commissioning .
The PEPRMP shall contain the following: The EMB Central Office as well as the EMB Regional Offices shall
a. Project Description of the co-located projects; document the proceedings of the ECC application process and
b. Documentation of the actual environmental performance shall set up and maintain relevant information management
based on current/past environmental management measures systems. The documentation shall, at a minimum, include the
implemented, and following:
c. An EMP based on the environmental management system
framework and standard set by EMB. 5.4.1. Review Process Report
This is to be prepared by the EMB Central or EMB RO. It is to be
5.2.5. Environmental Performance Report and Management Plan forwarded to the DENR Secretary or RD as reference for decision-
(EPRMP) making and maintained as part of the records on the ECC
application. The report should contain at least the following:
The EPRMP shall contain the following:
a. Summary of the environmental impacts of the undertaking,
a. Project Description; along with the proposed mitigation and enhancement measures;
b. Baseline conditions for critical environmental parameters; b. Key issues/concerns and the proponent's response to these;
c. Documentation of the environmental performance based on c. Documentation of compliance with procedural requirements;
the current/past environmental management measures d. Acceptability of proposed EMP including the corresponding cost
implemented; of mitigation, EGF and EMF if required;
d. Detailed comparative, description of the proposed project e. Key bases for the decision on the ECC application.
expansion and/or process modification with corresponding
material and energy balances in the case of process industries, 5.4.2. EIARC Report
e. EMP based on an environmental management system This report, to be prepared by the EIA Review Committee, forms
framework and standard set by EMB. part of the EIS review documentation. The EIARC Report shall be
written by the designated member of the EIARC and signed by all
5.2.6. Project Description (PD) the members within five days after the final review meeting. If an
EIARC member dissents, he or she must submit a memorandum to
The PD shall be guided by the definition of terms and shall contain the EMB Director through the EIARC Chairman his or her reasons
the following: for dissenting.
The proponent or any stakeholder may file an appeal to the 8.3 Amending an ECC
following: Requirements for processing ECC amendments shall depend on
the nature of the request but shall be focused on the information
Deciding Authority Where to file the appeal necessary to assess the environmental impact of such changes.
EMB Regional Office Director Office of the EMB Director
EMB Central Office Office of the DENR Secretary 8.3.1. Requests for minor changes to ECCs such as extension of
DENR Secretary Office of the President deadlines for submission of post-ECC requirements shall be
decided upon by the endorsing authority.
Section 7. The EIA Process in Relation to the Project Planning 8.3.2. Requests for major changes to ECCs shall be decided upon
Cycle by the deciding authority.
Proponents are directed under AO 42 to conduct simultaneously 8.3.3. For ECCs issued pursuant to an IEE or IEE checklist, the
the environmental impact study and the project planning or processing of the amendment application shall not exceed thirty
feasibility study. EMB may validate whether or not the EIS was (30) working days; and for ECCs issued pursuant to an EIS, the
integrated with project planning by requiring relevant processing shall not exceed sixty (60) working days. Provisions on
documentary proofs, such as the terms of reference for the automatic approval related to prescribed timeframes under AO 42
feasibility study and copies of the feasibility study report. shall also apply for the processing of applications to amend ECCs.
The EMB shall study the potential application of EIA to policy- Section 9. Monitoring of Projects with ECCs
based undertakings as a further step toward integrating and Post ECC monitoring of projects shall follow these guidelines.
streamlining the EIS system. Other details on requirements for monitoring of projects with
ECCs shall be stipulated in a procedural manual to be formulated
Section 8. EIS System Procedures by EMB.
8.1 Manual of Procedures
9.1 Multipartite Monitoring Team abandonment/decommissioning. The implementation of the plan
For projects under Category A, a multi-partite monitoring team shall be verified by EMB.
(MMT) shall be formed immediately after the issuance of an ECC.
Proponents required to establish an MMT shall put up an ARTICLE Ill
Environmental Monitoring Fund (EMF) not later than the initial STRENGTHENING THE IMPLEMENTATION OF THE PHILIPPINE EIS
construction phase of the project. SYSTEM
The MMT shall be composed of representatives of the proponent Section 10. Coordination with other Government Agencies and
and of stakeholder groups, including representatives from other Organizations
concerned LGU's, locally accredited NGOs/POs, the community,
concerned EMB Regional Office, relevant government agencies, The DENR-EMB shall conduct regular consultations with DTI and
and other sectors that may be identified during the negotiations. other pertinent government agencies, affected industry groups
and other stakeholders on continually streamlining the processing
The team shall be tasked to undertake monitoring of compliance of ECC applications and post ECC implementation to fulfill the
with ECC conditions as well as the EMP. The MMT shall submit a policy and objectives of this administrative order.
semi-annual monitoring report within January and July of each
year. The President shall be apprised of the issues raised as well as the
actions taken by DENR to address these issues whenever
The EMB shall formulate guidelines for operationalizing area- necessary.
based or cluster-based MMT. The Bureau may also develop
guidelines for delegating, monitoring responsibilities to other Section 11. Information Systems Improvement
relevant government agencies as may be deemed necessary. For The information system on the EIS System implementation shall
projects whose significant environmental impacts do not persist be improved for the effective dissemination of information to the
after the construction phase or whose impacts could be public. The information system shall include regular updating of
addressed through other regulatory means or through the the status of ECC applications through a website and through
mandates of other government agencies, the operations of MMT other means.
may be terminated immediately after construction or after a
reasonable period during implementation. Section 12. Accreditation System
To enhance the quality of the EIS submitted to the DENR/EMB,
9.2 Self-monitoring and Third Party Audit the EMB shall establish an accreditation system for individual
The proponent shall also conduct regular self-monitoring of professionals, academic and professional organizations that can
specific parameters indicated in the EMP through its be tapped to train professionals in conducting EIA using training
environmental unit. The proponent's environmental unit shall modules approved by EMB.
submit a semi-annual monitoring report within January and July of
each year. The EMB shall also work with DTI-BPS for an accreditation system
for environmental and EMS auditors, consistent with provisions of
For projects with ECCs issued based on a PEPRMP, EPRMP, or an DAO 2003-14 on the Philippine Environmental Partnership
EMS-based EMP, a third party audit may be undertaken by a Program.
qualified environmental or EMS auditor upon the initiative of the
proponent and in lieu of forming an MMT. The said proponent Section 13. Creation of an HAM Division and Strengthening of
shall submit to EMB a copy of the audit findings and shall be held Review and Monitoring Capability
accountable for the veracity of the report. The EMB may opt to In order to effectively implement the provisions of this
validate the said report. administrative order, the current EIA ad hoc division at the EMB
Central Office and the EMB Regional Offices that are primarily in-
9.3 Environmental Guarantee Fund charge of processing ECC applications and post-ECC monitoring
An Environmental Guarantee Fund (EGF) shall be established for shall be converted to a full-pledged Environmental Impact
all co-located or single projects that have been determined by Assessment and Management Division (EIAMD). The Division shall
DENR to pose a significant public risk or where the project have the following structure and functions:
requires rehabilitation or restoration. An EGF Committee shall be
formed to manage the fund. It shall be composed of 13.1 The EIA Evaluation Section shall be in charge of screening
representatives from the EMB Central Office, EMB Regional Office, projects for coverage under the EIS System, EIS Scoping, and
affected communities, concerned LGUs, and relevant government evaluation of EIS's and IEE's submitted for ECC issuance. It shall
agencies identified by EMB. have three units responsible, respectively, for screening for
coverage, EIS Scoping, and evaluation of ECC applications. The
An integrated MOA on the MMT-EMF-EGF shall be entered into EMB may commission independent professionals, experts from
among the EMB Central Office, EMB Regional Office, the the academe and representatives from relevant government
proponent, and representatives of concerned stakeholders. agencies as members of the EIA Review Committee as may be
deer 31d necessary. Further, continual improvement of the
9.4 Abandonment technical capability of the Staff of the EIA Division shall be
For projects that shall no longer be pursued, the proponent undertaken.
should inform EMB to relieve the former from the requirement
for continued compliance with the ECC conditions. For projects 13.2 The Impact Monitoring and Validation Section shall be in
that have already commenced implementation, an charge of monitoring compliance to ECC conditions and
abandonment/decommissioning plan shall be submitted for implementation of the Environmental Management Program
approval by EMB at least six (6) months before the planned (EMP): The unit shall also validate actual impacts as a basis for
evaluating environmental performance and effectiveness of the During the period that that the Procedural Manual and other
EMP. necessary guidelines are being prepared, existing guidelines which
are consistent with the provisions of this Order shall remain in
13.3 In the EMB Central Office, there shall be a Systems Planning effect. Adequate resources shall be provided for the formulation
and Management Section. It shall ensure that a continually of the Procedural Manual and for the effective implementation of
improving systems-oriented and integrated approach is followed this Order.
in implementing the Philippine EIS System vis-a-vis national
development programs. The section shall have two units Section 18. Repealing Clause
responsible for specific systems level concerns: (1) Project Level This Order hereby supersedes Department Administrative Order
Systems Planning and Management Unit; and (2) Program and No. 96-37, Department Administrative Order No. 2000-37, DAO
Policy Level Systems Planning and Management Unit. This section 2000-05 and other related orders, which are inconsistent
shall also be responsible for technical coordination with the EIA herewith.
Division in the different EMB Regional Offices.
ARTICLE 1V
MISCELLANEOUS PROVISIONS
Per AU 42, the new position items for the EIA Division shall be
created out of the existing budget and vacant position items
within the government service, which shall be reclassified
accordingly.
The EMB Director or the EMB-RD may issue a Cease and Desist
Order (CDO) based on violations under the Philippine EIS System
to prevent grave or irreparable damage to the environment. Such
CDO shall be effective immediately. An appeal or any motion
seeking to lift the CDO shall not stay its effectivity. However, the
DENR shall act on such appeal or motion within ten (10) working
days from filing.
The EMB may publish the identities of firms that are in violation of
the EIA Law and its Implementing Rules and Regulations despite
repeated Notices of Violation and/or Cease and Desist Orders.
l) Native Title - refers to pre-conquest rights to Sec. 7. Rights to Ancestral Domains.- The rights of ownership and
lands and domains which, as far back as possession of ICCs/IPs t their ancestral domains shall be
memory reaches, have been held under a recognized and protected. Such rights shall include:
claim of private ownership by ICCs/IPs, have
never been public lands and are thus
a. Rights of Ownership.- The right to claim ownership over lands,
indisputably presumed to have been held that
bodies of water traditionally and actually occupied by ICCs/IPs,
way since before the Spanish Conquest;
sacred places, traditional hunting and fishing grounds, and all
improvements made by them at any time within the domains;
m) Nongovernment Organization - refers to a
private, nonprofit voluntary organization that
b. Right to Develop Lands and Natural Resources.- Subject to
has been organized primarily for the delivery
Section 56 hereof, right to develop, control and use lands and
of various services to the ICCs/IPs and has an
territories traditionally occupied, owned, or used; to manage and
established track record for effectiveness and
conserve natural resources within the territories and uphold the
acceptability in the community where it
responsibilities for future generations; to benefit and share the
serves;
profits from allocation and utilization of the natural resources
found therein; the right to negotiate the terms and conditions for
n) People's Organization - refers to a private, the exploration of natural resources in the areas for the purpose
nonprofit voluntary organization of members of ensuring ecological, environmental protection and the
of an ICC/IP which is accepted as conservation measures, pursuant to national and customary laws;
representative of such ICCs/IPs; the right to an informed and intelligent participation in the
formulation and implementation of any project, government or
private, that will affect or impact upon the ancestral domains and
o) Sustainable Traditional Resource Rights
to receive just and fair compensation for any damages which they
- refer to the rights of ICCs/IPs to sustainably
sustain as a result of the project; and the right to effective
use,manage, protect and conserve a) land, air,
measures by the government to prevent any interfere with,
water, and minerals; b) plants, animals and
alienation and encroachment upon these rights;
other organisms; c) collecting, fishing and
hunting grounds; d) sacred sites; and e) other
areas of economic, ceremonial and aesthetic c. Right to Stay in the Territories- The right to stay in the territory
value in accordance with their indigenous and not be removed therefrom. No ICCs/IPs will be relocated
knowledge, beliefs, systems and practices; and without their free and prior informed consent, nor through any
means other than eminent domain. Where relocation is
considered necessary as an exceptional measure, such relocation
p) Time Immemorial - refers to a period of time when as far back
shall take place only with the free and prior informed consent of
as memory can go, certain ICCs/IPs are known to have occupied,
the ICCs/IPs concerned and whenever possible, they shall be
possessed in the concept of owner, and utilized a defined territory
guaranteed the right to return to their ancestral domains, as soon
devolved to them, by operation of customary law or inherited
as the grounds for relocation cease to exist. When such return is
from their ancestors, in accordance with their customs and
not possible, as determined by agreement or through appropriate
traditions.
procedures, ICCs/IPs shall be provided in all possible cases with
lands of quality and legal status at least equal to that of the land
CHAPTER III previously occupied by them, suitable to provide for their present
RIGHTS TO ANCESTRAL DOMAINS needs and future development. Persons thus relocated shall
likewise be fully compensated for any resulting loss or injury;
Sec. 4. Concept of Ancestral Lands/Domains.- Ancestral
lands/domains shall include such concepts of territories which d. Right in Case of Displacement.- In case displacement occurs as a
cover not only the physical environment but the total result of natural catastrophes, the State shall endeavor to resettle
environment including the spiritual and cultural bonds to the area the displaced ICCs/IPs in suitable areas where they can have
which the ICCs/IPs possess, occupy and use and to which they temporary life support system: Provided, That the displaced
have claims of ownership. ICCs/IPs shall have the right to return to their abandoned lands
until such time that the normalcy and safety of such lands shall be
Sec. 5. Indigenous Concept of Ownership.- Indigenous concept of determined: Provided, further, That should their ancestral domain
ownership sustains the view that ancestral domains and all cease to exist and normalcy and safety of the previous
resources found therein shall serve as the material bases of their settlements are not possible, displaced ICCs/IPs shall enjoy
cultural integrity. The indigenous concept of ownership generally security of tenure over lands to which they have been resettled:
holds that ancestral domains are the ICC's/IP's private but Provided, furthermore, That basic services and livelihood shall be
community property which belongs to all generations and provided to them to ensure that their needs are adequately
therefore cannot be sold, disposed or destroyed. It likewise covers addressed:
sustainable traditional resource rights.
e. Right to Regulate Entry of Migrants.- Right to regulate the entry
of migrant settlers and organizations into the domains;
f. Right to Safe and Clean Air and Water.- For this purpose, the the concerned ICCs/IPs over the territories identified and
ICCs/IPs shall have access to integrated systems for the delineated.
management of their inland waters and air space;
Sec. 12. Option to Secure Certificate of Title under Commonwealth
g. Right to Claim Parts of Reservations.- The right to claim parts of Act 141, as amended, or the Land Registration Act 496.- Individual
the ancestral domains which have been reserved for various members of cultural communities, with respect to individually-
purposes, except those reserved and intended for common and owned ancestral lands who, by themselves or through their
public welfare and service; and predecessors-in -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
h. Right to Resolve Conflict.- Right to resolve land conflicts in
immediately preceding the approval of this Act and uncontested
accordance with customary laws of the area where the land is
by the members of the same ICCs/IPs shall have the option to
located, and only in default thereof shall the complaints be
secure title to their ancestral lands under the provisions of
submitted to amicable settlement and to the Courts of Justice
Commonwealth Act 141, as amended, or the Land Registration
whenever necessary.
Act 496.
c. Observe Laws- To observe and comply with the provisions of Sec. 15. Justice System, Conflict Resolution Institutions and Peace
this Act and the rules and regulations for its effective Building Processes.- The ICCs/IPs shall have the right to use their
implementation. own commonly accepted justice systems, conflict resolution
institutions, peace building processes or mechanisms and other
customary laws and practices within their respective communities
Sec. 10. Unauthorized and Unlawful Intrusion.- Unauthorized and
and as may be compatible with the national legal system and with
unlawful intrusion upon, or use of any portion of the ancestral
internationally recognized human rights.
domain, or any violation of the rights herein before enumerated,
shall be punishable under this law. Furthermore, the Government
shall take measures to prevent non-ICCs/IPs from taking Sec. 16. Right to Participate in Decision -Making.- ICCs/IPs have
advantage of the ICCs/IPs customs or lack of understanding of the right to participate fully, if they so choose, at all levels of
laws to secure ownership, possession of land belonging to said decision-making in matters which may affect their rights, lives and
ICCs/IPs. destinies through procedures determined by them as well as to
maintain and develop their own indigenous political structures.
Consequently, the State shall ensure that the ICCs/IPs shall be
Sec. 11. Recognition of Ancestral Domain Rights.- The rights of
given mandatory representation in policy-making bodies and
ICCs/IPs to their ancestral domains by virtue of Native Title shall
other local legislative councils.
be recognized and respected. Formal recognition, when solicited
by ICCs/IPs concerned, shall be embodied in a Certificate of
Ancestral Domain Title (CADT), which shall recognize the title of 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 lives, relocate them in special centers for military purposes under any
beliefs, institutions, spiritual well-being, and the lands they own, discriminatory condition.
occupy or use. They shall participate in the
formulation,implementation and evaluation of policies, plans and
Sec. 23. Freedom from Discrimination and Right to Equal
programs for national, regional and local development which may
Opportunity and Treatment.- It shall be the right of the ICCs/IPs to
directly affect them.
be free from any form of discrimination, with respect to
recruitment and conditions of employment, such that they may
Sec. 18. Tribal Barangays.- The ICCs/IPs living in contiguous areas enjoy equal opportunities as other occupationally-related
or communities where they form the predominant population but benefits, informed of their rights under existing labor legislation
which are located in municipalities, provinces or cities where they and of means available to them for redress, not subject to any
do not constitute the majority of the population, may form or coercive recruitment systems, including bonded labor and other
constitute a separate barangay in accordance with the Local forms of debt servitude; and equal treatment in employment for
Government Code on the creation of tribal barangays. men and women, including the protection from sexual
harassment.
Sec. 19. Role of Peoples Organizations.- The State shall recognize
and respect the role of independent ICCs/IPs organizations to Towards this end, the State shall within the framework of national
enable the ICCs/IPs to pursue and protect their legitimate and laws and regulations, and in cooperation with the ICCs/IPs
collective interests and aspirations through peaceful and lawful concerned, adopt special measures to ensure the effective
means. protection with regard to the recruitment and conditions of
employment of persons belonging to these communities, to the
extent that they are not effectively protected by the laws
Sec. 20. Means for Development /Empowerment of ICCs/IPs.- The
applicable to workers in general.
Government shall establish the means for the full
development/empowerment of the ICCs/IPs own institutions and
initiatives and, where necessary, provide the resources needed ICCs/IPs shall have the right to association and freedom for all
therefor. trade union activities and the right to conclude collective
bargaining agreements with employers' conditions. They shall
likewise have the right not to be subject to working conditions
CHAPTER V
hazardous to their health, particularly through exposure to
SOCIAL JUSTICE AND HUMAN RIGHTS
pesticides and other toxic substances.
b. Office on Policy, Planning and Research - The Office on Policy, f. Administrative Office - The Administrative Office shall provide
Planning and Research shall be responsible for the formulation of the NCIP with economical, efficient and effective services
appropriate policies and programs for ICCs/IPs such as, but not pertaining to personnel, finance, records, equipment, security,
limited to, the development of a Five-Year Master Plan for the supplies, and related services. It shall also administer the
ICCs/IPs. Such plan shall undergo a process such that every five Ancestral Domains Fund; and
years, the Commission shall endeavor to assess the plan and make
ramifications in accordance with the changing situations. The
g. Legal Affairs Office - There shall be a Legal Affairs Office which
Office shall also undertake the documentation of customary law
shall advice the NCIP on all legal matters concerning ICCs/IPs and
and shall establish and maintain a Research Center that would
which shall be responsible for providing ICCs/IPs with legal
serve as a depository of ethnographic information for monitoring,
assistance in litigation involving community interest. It shall
evaluation and policy formulation. It shall assist the legislative
conduct preliminary investigation on the basis of complaints filed
branch of the national government in the formulation of
by the ICCs/IPs against a natural or juridical person believed to
appropriate legislation benefiting ICCs/IPs.
have violated ICCs/IPs rights. On the basis of its findings, it shall
initiate the filing of appropriate legal or administrative action to
c. Office of Education, Culture and Health - The Office on Culture, the NCIP.
Education and Health shall be responsible for the effective
implementation of the education, cultural and related rights as
Sec. 47. Other Offices.- The NCIP shall have the power to create
provided in this Act. It shall assist, promote and support
additional offices as it may deem necessary subject to existing
community schools, both formal and non-formal, for the benefit
rules and regulations.
of the local indigenous community, especially in areas where
existing educational facilities are not accessible to members of the
indigenous group. It shall administer all scholarship programs and Sec. 48. Regional and Field Offices.- Existing regional and field
other educational rights intended for ICC/IP beneficiaries in offices shall remain to function under the strengthened
coordination with the Department of Education, Culture and organizational structure of the NCIP. Other field office shall be
Sports and the Commission on Higher Education. It shall created wherever appropriate and the staffing pattern thereof
undertake, within the limits of available appropriation, a special shall be determined by the NCIP: Provided, That in provinces
program which includes language and vocational training, public where there are ICCs/IPs but without field offices, the NCIP shall
health and family assistance program and related subjects. establish field offices in said provinces.
Sec. 49. Office of the Executive Director.- The NCIP shall create the d. Proof required - Proof of Ancestral Domain Claims shall include
Office of the Executive Director which shall serve as its secretariat. the testimony of elders or community under oath, and other
The office shall be headed by an Executive Director who shall be documents directly or indirectly attesting to the possession or
appointed by the President of the Republic of the Philippines occupation of the area since time immemorial by such ICCs/IPs in
upon the recommendation of the NCIP on a permanent basis. The the concept of owners which shall be any one (1) of the following
staffing pattern of the office shall be determined by the NCIP authentic documents:
subject to existing rules and regulations.
Sec. 50. Consultative Body.- A body consisting of the traditional 1. Written accounts of the ICCs/IPs customs and traditions;
leaders, elders and representatives from the women and youth
sectors of the different ICCs/IPs shall be constituted by the NCIP
2. Written accounts of the ICCs/IPs political structure and
from the time to time to advise it on matters relating to the
institution;
problems, aspirations and interests of the ICCs/IPs.
Sec.60. Exemption from Taxes.- All lands certified to be ancestral Sec. 66. Jurisdiction of the NCIP.- The NCIP, through its regional
domains shall be exempt from real property taxes, specially levies, offices, shall have jurisdiction over all claims and disputes
and other forms of exaction except such portion of the ancestral involving rights of ICCs/IPs; Provided, however, That no such
domains as are actually used for large-scale agriculture, dispute shall be brought to the NCIP unless the parties have
commercial forest plantation and residential purposes and upon exhausted all remedies provided under their customary laws. For
titling by other by private person: Provided, that all exactions shall this purpose, a certification shall be issued by the Council of
be used to facilitate the development and improvement of the Elders/Leaders who participated in the attempt to settle the
ancestral domains. dispute that the same has not been resolved, which certification
shall be a condition precedent to the filing of a petition with the
NCIP.
Sec. 61. Temporary Requisition Powers.- Prior to the
establishment of an institutional surveying capacity whereby it
can effectively fulfill its mandate, but in no case beyond three (3) Sec. 67. Appeals to the Court of Appeals.- Decisions of the NCIP
years after its creation, the NCIP is hereby authorized to request shall be appealable to the Court of Appeals by way of a petition
the Department of Environment and Natural Resources (DENR) for review.
survey teams as well as other equally capable private survey
teams, through a Memorandum of Agreement (MOA), to
Sec. 68. Execution of Decisions, Awards, Orders.- Upon expiration PENALTIES
of the period here provided and no appeal is perfected by any of
the contending parties, the Hearing Officer of the NCIP, on its own
Sec. 72. Punishable Acts and Applicable Penalties.- Any person
initiative or upon motion by the prevailing party, shall issue a writ
who commits violation of any of the provisions of this Act, such
of execution requiring the sheriff or the proper officer to execute
as, but not limited to, authorized and/or unlawful intrusion upon
final decisions, orders or awards of the Regional Hearing Officer of
any ancestral lands or domains as stated in Sec. 10, Chapter III, or
the NCIP.
shall commit any of the prohibited acts mentioned in Sections 21
and 24, Chapter V, Section 33, Chapter VI hereof, shall be
Sec. 69. Quasi-Judicial Powers of the NCIP.- The NCIP shall have punished in accordance with the customary laws of the ICCs/IPs
the power and authority: concerned: Provided, That no such penalty shall be cruel,
degrading or inhuman punishment: Provided, further, That
neither shall the death penalty or excessive fines be imposed. This
a. To promulgate rules and regulations governing the hearing and
provision shall be without prejudice to the right of any ICCs/IPs to
disposition of cases filed before it as well as those pertaining to its
avail of the protection of existing laws. In which case, any person
internal functions and such rules and regulations as may be
who violates any provision of this Act shall, upon conviction, be
necessary to carry out the purposes of this Act;
punished by imprisonment of not less than nine (9) months but
not more than twelve (12) years or a fine not less than One
b. To administer oaths, summon the parties to a controversy, hundred thousand pesos (P100,000) nor more than Five hundred
issue subpoenas requiring the attendance and testimony of thousand pesos (P500,000) or both such fine and imprisonment
witnesses or the production of such books, papers, contracts, upon the discretion of the court. In addition, he shall be obliged to
records, agreements and other document of similar nature as may pay to the ICCs/IPs concerned whatever damage may have been
be material to a just determination of the matter under suffered by the latter as a consequence of the unlawful act.
investigation or hearing conducted in pursuance of this Act;
Sec. 73. Persons Subject to Punishment.- If the offender is a
c. To hold any person in contempt, directly or indirectly, and juridical person, all officers such as, but not limited to, its
impose appropriate penalties therefor; and president, manager, or head of office responsible for their
unlawful act shall be criminally liable therefor, in addition to the
d. To enjoin any or all acts involving or arising from any case cancellation of certificates of their registration and/or license:
pending therefore it which, if not restrained forthwith, may cause Provided, That if the offender is a public official, the penalty shall
grave or irreparable damage to any of the parties to the case or include perpetual disqualification to hold public office.
seriously affect social or economic activity.
Sec. 76. Transfer of Assets/Properties.- All real and personal The Congress may, by law, allow small-scale utilization of natural
properties which are vested in, or belonging to, the merged resources by Filipino citizens, as well as cooperative fish farming,
offices as aforestated shall be transferred to the NCIP without with priority to subsistence fishermen and fish- workers in rivers,
further need of conveyance, transfer or assignment and shall be lakes, bays, and lagoons.
held for the same purpose as they were held by the former
offices: Provided, That all contracts, records and documents shall
The President may enter into agreements with foreign-owned
be transferred to the NCIP. All agreements and contracts entered
corporations involving either technical or financial assistance for
into by the merged offices shall remain in full force and effect
large-scale exploration, development, and utilization of minerals,
unless otherwise terminated, modified or amended by the NCIP.
petroleum, and other mineral oils according to the general terms
and conditions provided by law, based on real contributions to the
Sec. 77. Placement Committee.- Subject to rules on government economic growth and general welfare of the country. In such
reorganization, a Placement Committee shall be created by the agreements, the State shall promote the development and use of
NCIP, in coordination with the Civil Service Commission, which local scientific and technical resources.
shall assist in the judicious selection and placement of personnel
in order that the best qualified and most deserving persons shall
The President shall notify the Congress of every contract entered
be appointed in the reorganized agency. The placement
into in accordance with this provision, within thirty days from its
Committee shall be composed of seven (7) commissioners and an
execution.
ICCs/IPs representative from each of the first and second level
employees association in the Offices for Northern and Southern
Cultural Communities (ONCC/OSCC), nongovernment Section 3. Lands of the public domain are classified into
organizations (NGOs) who have served the community for at least agricultural, forest or timber, mineral lands and national parks.
five (5) years and peoples organizations (POs) with at least five (5) Agricultural lands of the public domain may be further classified
years of existence. They shall be guided by the criteria of by law according to the uses to which they may be devoted.
retention and appointment to be prepared by the consultative Alienable lands of the public domain shall be limited to
body and by the pertinent provisions of the civil service law. agricultural lands. Private corporations or associations may not
hold such alienable lands of the public domain except by lease, for
a period not exceeding twenty-five years, renewable for not more
than twenty-five years, and not to exceed one thousand hectares
Art I, Sec 21, 22 of the Constitution
in area. Citizens of the Philippines may lease not more than five
hundred hectares, or acquire not more than twelve hectares
Section 21. The State shall promote comprehensive rural thereof, by purchase, homestead, or grant.
development and agrarian reform.
Taking into account the requirements of conservation, ecology,
Section 22. The State recognizes and promotes the rights of and development, and subject to the requirements of agrarian
indigenous cultural communities within the framework of national reform, the Congress shall determine, by law, the size of lands of
unity and development. the public domain which may be acquired, developed, held, or
leased and the conditions therefor.
Art XII, Secs. 2, 3, 4, 5, 7 and 8 of the Constitution
Section 4. The Congress shall, as soon as possible, determine, by
law, the specific limits of forest lands and national parks, marking
ARTICLE XII: NATIONAL ECONOMY AND PATRIMONY clearly their boundaries on the ground. Thereafter, such forest
lands and national parks shall be conserved and may not be
increased nor diminished, except by law. The Congress shall
Section 2. All lands of the public domain, waters, minerals, coal, provide for such period as it may determine, measures to prohibit
petroleum, and other mineral oils, all forces of potential energy, logging in endangered forests and watershed areas.
fisheries, forests or timber, wildlife, flora and fauna, and other
natural resources are owned by the State. With the exception of
agricultural lands, all other natural resources shall not be Section 5. The State, subject to the provisions of this Constitution
alienated. The exploration, development, and utilization of and national development policies and programs, shall protect the
natural resources shall be under the full control and supervision of rights of indigenous cultural communities to their ancestral lands
the State. The State may directly undertake such activities, or it to ensure their economic, social, and cultural well-being.
may enter into co-production, joint venture, or production-
sharing agreements with Filipino citizens, or corporations or The Congress may provide for the applicability of customary laws
associations at least sixty per centum of whose capital is owned by governing property rights or relations in determining the
such citizens. Such agreements may be for a period not exceeding ownership and extent of ancestral domain.
twenty-five years, renewable for not more than twenty-five years,
and under such terms and conditions as may be provided by law.
In cases of water rights for irrigation, water supply fisheries, or
industrial uses other than the development of water power, Section 7. Save in cases of hereditary succession, no private lands
beneficial use may be the measure and limit of the grant. shall be transferred or conveyed except to individuals,
corporations, or associations qualified to acquire or hold lands of without experiencing conditions of instability and attendant
the public domain. degradation.
(e) "Contiguous zone" refers to water, sea bottom and substratum
Section 8. Notwithstanding the provisions of Section 7 of this
measured twenty-four nautical miles (24 n.m.) seaward from base
Article, a natural-born citizen of the Philippines who has lost his
line of the Philippine archipelago.
Philippine citizenship may be a transferee of private lands, subject
to limitations provided by law.
(f) "Contract area" means land or body of water delineated for
purposes of exploration, development, or utilization of the
minerals found therein.
(g) "Contractor" means a qualified person acting alone or in
consortium who is a party to a mineral agreement or to a financial
or technical assistance agreement.
(h) "Co-production agreement (CA)" means an agreement entered
into between the Government and one or more contractors in
accordance with Section 26(b) hereof.
(i) "Department" means the Department of Environment and
Natural Resources.
(j) "Development" means the work undertaken to explore and
prepare an ore body or a mineral deposit for mining, including the
construction of necessary infrastructure and related facilities.
(k) "Director" means the Director of the Mines and Geosciences
Bureau.
(l) "Ecological profile or eco-profile" refers to geographic-based
instruments for planners and decision-makers which presents an
evaluation of the environmental quality and carrying capacity of
an area.
Republic Act No. 7942: Philippine Mining Act of 1995 (m) "Environmental Compliance Certificate (ECC)" refers to the
document issued by the government agency concerned certifying
that the project under consideration will not bring about an
Sec. 2 Declaration of Policy. All mineral resources in public and unacceptable environmental impact and that the proponent has
private lands within the territory and exclusive economic zone of complied with the requirements of the environmental impact
the Republic of the Philippines are owned by the State. It shall be statement system.
the responsibility of the State to promote their rational
exploration, development, utilization and conservation through (n) "Environmental Impact Statement (EIS)" is the document
the combined efforts of government and the private sector in which aims to identify, predict, interpret, and communicate
order to enhance national growth in a way that effectively information regarding changes in environmental quality
safeguards the environment and protect the rights of affected associated with a proposed project and which examines the range
communities. of alternatives for the objectives of the proposal and their impact
on the environment.
Sec. 3 Definition of Terms. As used in and for purposes of this Act,
the following terms, whether in singular or plural, shall mean: (o) "Exclusive economic zone" means the water, sea bottom and
subsurface measured from the baseline of the Philippine
(a) "Ancestral lands" refers to all lands, exclusively and actually archipelago up to two hundred nautical miles (200 n.m.) offshore.
possessed, occupied, or utilized by indigenous cultural
communities by themselves or through their ancestors in (p) "Existing mining/quarrying right" means a valid and subsisting
accordance with their customs and traditions since time mining claim or permit or quarry permit or any mining lease
immemorial, and as may be defined and delineated by law. contract or agreement covering a mineralized area granted/issued
under pertinent mining laws.
(b) "Block" or "meridional block" means an area bounded by one-
half (1/2) minute of latitude and one-half (1/2) minute of (q) "Exploration" means the searching or prospecting for mineral
longitude, containing approximately eighty-one hectares (81 has.). resources by geological, geochemical or geophysical surveys,
remote sensing, test pitting, trenching, drilling, shaft sinking,
(c) "Bureau" means the Mines and Geosciences Bureau under the tunneling or any other means for the purpose of determining the
Department of Environment and Natural Resources. existence, extent, quantity and quality thereof and the feasibility
of mining them for profit.
(d) "Carrying capacity" refers to the capacity of natural and
human environments to accommodate and absorb change
(r) "Financial or technical assistance agreement" means a contract utilization, and sites for support facilities or in the immediate
involving financial or technical assistance for large-scale vicinity of the mining operations.
exploration, development, and utilization of mineral resources.
(af) "Mining operation" means mining activities involving
(s) "Force majeure" means acts or circumstances beyond the exploration, feasibility, development, utilization, and processing.
reasonable control of contractor including, but not limited to,
war, rebellion, insurrection, riots, civil disturbance, blockade, (ag) "Nongovernmental Organization (NGO)" includes nonstock,
sabotage, embargo, strike, lockout, any dispute with surface nonprofit organizations involved in activities dealing with resource
owners and other labor disputes, epidemic, earthquake, storm, and environmental conservation, management and protection.
flood or other adverse weather conditions, explosion, fire,
adverse action by government or by any instrumentality or (ah) "Net assets" refers to the property, plant and equipment as
subdivision thereof, act of God or any public enemy and any cause reflected in the audited financial statement of the contractor net
that herein describe over which the affected party has no of depreciation, as computed for tax purposes, excluding
reasonable control. appraisal increase and construction in progress.
(t) "Foreign-owned corporation" means any corporation, (ai) "Offshore" means the water, sea bottom, and subsurface from
partnership, association, or cooperative duly registered in the shore or coastline reckoned from the mean low tide level up
accordance with law in which less than fifty per centum (50%) of to the two hundred nautical miles (200 n.m.) exclusive economic
the capital is owned by Filipino citizens. zone including the archipelagic sea and contiguous zone.
(u) "Government" means the government of the Republic of the (aj) "Onshore" means the landward side from the mean tide
Philippines. elevation, including submerged lands in lakes, rivers and creeks.
(v) "Gross output" means the actual market value of minerals or (ak) "Ore" means a naturally occurring substance or material from
mineral products from its mining area as defined in the National which a mineral or element can be mined and/or processed for
Internal Revenue Code. profit.
(w) "Indigenous cultural community" means a group or tribe of (al) "Permittee" means the holder of an exploration permit.
indigenous Filipinos who have continuously lived as communities
on communally-bounded and defined land since time immemorial (am) "Pollution control and infrastructure devices" refers to
and have succeeded in preserving, maintaining, and sharing infrastructure, machinery, equipment and/or improvements used
common bonds of languages, customs, traditions, and other for impounding, treating or neutralizing, precipitating, filtering,
distinctive cultural traits, and as may be defined and delineated by conveying and cleansing mine industrial waste and tailings as well
law. as eliminating or reducing hazardous effects of solid particles,
chemicals, liquids or other harmful by products and gases emitted
(x) "Joint Venture Agreement (JVA)" means an agreement entered from any facility utilized in mining operations for their disposal.
into between the Government and one or more contractors in
accordance with Section 26(c) hereof. (an) "President" means the President of the Republic of the
Philippines.
(y) "Mineral processing" means the milling, benefaction or
upgrading of ores or minerals and rocks or by similar means to (ao) "Private land" refers to any land belonging to any private
convert the same into marketable products. person which includes alienable and disposable land being
claimed by a holder, claimant, or occupant who has already
(z) "Mine wastes and tailings" shall mean soil and rock materials acquired a vested right thereto under the law, although the
from surface or underground mining and milling operations with corresponding certificate or evidence of title or patent has not
no economic value to the generator of the same. been actually issued.
(aa) "Minerals" refers to all naturally occurring inorganic (ap) "Public land" refers to lands of the public domain which have
substance in solid, gas, liquid, or any intermediate state excluding been classified as agricultural lands and subject to management
energy materials such as coal, petroleum, natural gas, radioactive and disposition or concession under existing laws.
materials, and geothermal energy.
(aq) "Qualified person" means any citizen of the Philippines with
(ab) "Mineral agreement" means a contract between the capacity to contract, or a corporation, partnership, association, or
government and a contractor, involving mineral production- cooperative organized or authorized for the purpose of engaging
sharing agreement, co-production agreement, or joint-venture in mining, with technical and financial capability to undertake
agreement. mineral resources development and duly registered in accordance
with law at least sixty per cent (60%) of the capital of which is
(ac) "Mineral land" means any area where mineral resources are owned by citizens of the Philippines: Provided, That a legally
found. organized foreign-owned corporation shall be deemed a qualified
person for purposes of granting an exploration permit, financial or
(ad) "Mineral resource" means any concentration of technical assistance agreement or mineral processing permit.
minerals/rocks with potential economic value.
(ar) "Quarrying" means the process of extracting, removing and
(ae) "Mining area" means a portion of the contract area identified disposing quarry resources found on or underneath the surface of
by the contractor for purposes of development, mining, private or public land.
(as) "Quarry permit" means a document granted to a qualified Section 112 Chapter XX hereof. All submerged lands within the
person for the extraction and utilization of quarry resources on contiguous zone and in the exclusive economic zone of the
public or private lands. Philippines are hereby declared to be mineral reservations.
(at) "Quarry resources" refers to any common rock or other A ten per centum (10%) share of all royalties and revenues to be
mineral substances as the Director of Mines and Geosciences derived by the government from the development and utilization
Bureau may declare to be quarry resources such as, but not of the mineral resources within mineral reservations as provided
limited to, andesite, basalt, conglomerate, coral sand, under this Act shall accrue to the Mines and Geosciences Bureau
diatomaceous earth, diorite, decorative stones, gabbro, granite, to be allotted for special projects and other administrative
limestone, marble, marl, red burning clays for potteries and expenses related to the exploration and development of other
bricks, rhyolite, rock phosphate, sandstone, serpentine, shale, mineral reservations mentioned in Section 6 hereof.
tuff, volcanic cinders, and volcanic glass: Provided, That such
quarry resources do not contain metals or metallic constituents Sec. 6 Other Reservations. Mining operations in reserved lands
and/or other valuable minerals in economically workable other than mineral reservations may be undertaken by the
quantities: Provided, further, That non-metallic minerals such as Department, subject to limitations as herein provided. In the
kaolin, feldspar, bullquartz, quartz or silica, sand and pebbles, event that the Department cannot undertake such activities, they
bentonite, talc, asbestos, barite, gypsum, bauxite, magnesite, may be undertaken by a qualified person in accordance with the
dolomite, mica, precious and semi-precious stones, and other rules and regulations promulgated by the Secretary. The right to
non-metallic minerals that may later be discovered and which the develop and utilize the minerals found therein shall be awarded
Director declares the same to be of economically workable by the President under such terms and conditions as
quantities, shall not be classified under the category of quarry recommended by the Director and approved by the Secretary.
resources. Provided, That the party who undertook the exploration of said
reservation shall be given priority. The mineral land so awarded
(au) "Region director" means the regional director of any mines shall be automatically excluded from the reservation during the
regional office under the Department of Environment and Natural term of the agreement: Provided, further, That the right of the
Resources. lessee of a valid mining contract existing within the reservation at
the time of its establishment shall not be prejudiced or impaired.
(av) "Regional office" means any of the mines regional offices of
the Department of Environment and Natural Resources. Sec. 7 Periodic Review of Existing Mineral Reservations. The
Secretary shall periodically review existing mineral reservations
(aw) "Secretary" means the Secretary of the Department of for the purpose of determining whether their continued existence
Environment and Natural Resources. is consistent with the national interest, and upon the
recommendation, the President may, by proclamation, alter or
(ax) "Special allowance" refers to payment to the claim-owners or modify the boundaries thereof or revert the same to the public
surface right-owners particularly during the transition period from domain without prejudice to prior existing rights.
Presidential Decree No. 463 and Executive Order No. 279, series
of 1987. Sec. 8 Authority of the Department. The Department shall be the
primary government agency responsible for the conservation,
(ay) "State" means the Republic of the Philippines. management, development, and proper use of the State's mineral
resources including those in reservations, watershed areas, and
(az) "Utilization" means the extraction or disposition of minerals. lands of the public domain. The Secretary shall have the authority
to enter into mineral agreements on behalf of the Government
CHAPTER II upon the recommendation of the Director, promulgate such rules
GOVERNMENT MANAGEMENT and regulations as may be necessary to implement the intent and
provisions of this Act.
Sec. 4 Ownership of Mineral Resources. - Mineral resources are
owned by the State and the exploration, development, utilization, Sec. 9 Authority of the Bureau. The Bureau shall have direct
and processing thereof shall be under its full control and charge in the administration and disposition of mineral lands and
supervision. The State may directly undertake such activities or it mineral resources and shall undertake geological, mining,
may enter into mineral agreements with contractors. metallurgical, chemical, and other researches as well as geological
and mineral exploration surveys. The Director shall recommend to
The State shall recognize and protect the rights of the indigenous the Secretary the granting of mineral agreements to duly qualified
cultural communities to their ancestral lands as provided for by persons and shall monitor the compliance by the contractor of the
the Constitution. terms and conditions of the mineral agreements. The Bureau may
Sec. 5 Mineral Reservations. When the national interest so confiscate surety, performance and guaranty bonds posted
requires, such as when there is a need to preserve strategic raw through an order to be promulgated by the Director. The Director
materials for industries critical to national development, or may deputize, when necessary, any member or unit of the
certain minerals for scientific, cultural or ecological value, the Philippine National Police, barangay, duly registered
President may establish mineral reservations upon the nongovernmental organization (NGO) or any qualified person to
recommendation of the Director through the Secretary. Mining police all mining activities.
operations in existing mineral reservations and such other
reservations as may thereafter be established, shall be Sec. 10 Regional Offices. There shall be as many regional offices in
undertaken by the Department or through a contractor: Provided, the country as may be established by the Secretary, upon the
That a small scale mining agreement for a maximum aggregate recommendation of the Director.
area of twenty-five percent (25%) of such mineral reservation,
subject to valid existing mining quarrying rights as provided under
Sec. 11 Processing of Applications. The system of processing (b) Near or under public or private buildings, cemeteries,
applications for mining rights shall be prescribed in the rules and archeological and historic sites, bridges, highways, waterways,
regulations of this Act. railroads, reservoirs, dams or other infrastructure projects, public
or private works including plantations or valuable crops, except
Sec. 12 Survey, Charting and Delineation of Mining Areas. A sketch upon written consent of the government agency or private entity
plan or map of the contract or mining area prepared by a concerned;
deputized geodetic engineer suitable for publication purposes
shall be required during the filing of a mineral agreement or (c) In areas covered by valid and existing mining rights;
financial or technical assistance agreement application.
Thereafter, the contract or mining area shall be surveyed and (d) In areas expressedly prohibited by law;
monumented by a deputized geodetic engineer or bureau
geodetic engineer and the survey plan shall be approved by the (e) In areas covered by small-scale miners as defined by law unless
Director before the approval of the mining feasibility. with prior consent of the small-scale miners, in which case a
royalty payment upon the utilization of minerals shall be agreed
Sec. 13 Meridional Blocks. For purposes of the delineation of the upon by the parties, said royalty forming a trust fund for the
contract of mining areas under this Act, the Philippine territory socioeconomic development of the community concerned; and
and its exclusive economic zone shall be divided into meridional
blocks of one-half (1/2) minute of latitude and one-half (1/2) (f) Old growth or virgin forests, proclaimed watershed forest
minute of longitude. reserves, wilderness areas, mangrove forests, mossy forests,
national parks, provincial/municipal forests, parks, greenbelts,
Sec. 14 Recording System. There shall be established a national game refuge and bird sanctuaries as defined by law in areas
and regional filing and recording system. A mineral resource expressly prohibited under the National Integrated Protected
database system shall be set up in the Bureau which shall include, areas System (NIPAS) under Republic Act No. 7586, Department
among others, a mineral rights management system. The Bureau Administrative Order No. 25, series of 1992 and other laws.
shall publish at least annually, a mineral rights management
system. The Bureau shall publish at least annually, a mineral CHAPTER IV
gazette of nationwide circulation containing among others, a EXPLORATION PERMIT
current list of mineral rights, their location in the map, mining
rules and regulations, other official acts affecting mining, and Sec. 20 Exploration Permit. An exploration permit grants the right
other information relevant to mineral resources development. A to conduct exploration for all minerals in specified areas. The
system and publication fund shall be included in the regular Bureau shall have the authority to grant an exploration permit to
budget of the Bureau. a qualified person.
CHAPTER III Sec. 21 Terms and Conditions of the Exploration Permit. An
SCOPE OF APPLICATION exploration permit shall be for a period of two (2) years, subject
to annual review and relinquishment or renewal upon the
Sec. 15 Scope of Application. This Act shall govern the exploration, recommendation of the Director.
development, utilization and processing of all mineral resources.
Sec. 22 Maximum Areas for Exploration Permit. The maximum
Sec. 16 Opening of Ancestral Lands for Mining Operations. No area that a qualified person may hold at any one time shall be:
ancestral land shall be opened for mining operations without the
prior consent of the indigenous cultural community concerned. (a) Onshore, in any one province -
Sec. 17 Royalty Payments for Indigenous Cultural Communities. In (1) For individuals, twenty (20) blocks; and
the event of an agreement with an indigenous cultural community
pursuant to the preceding section, the royalty payment, upon (2) (2) For partnerships, corporations, cooperatives, or
utilization of the minerals shall be agreed upon by the parties. The associations, two hundred (200) blocks.
said royalty shall form part of a trust fund for the socioeconomic
well-being of the indigenous cultural community. (b) Onshore, in the entire Philippines -
Sec. 18 Areas Open to Mining Operations. Subject to any existing (1) For individuals, forty (40) blocks; and
rights or reservations and prior agreements of all parties, all
mineral resources in public or private lands, including timber or (2) For partnerships, corporations, cooperatives, or associations,
forestlands as defined in existing laws shall be open to mineral four hundred (400) blocks.
agreements or financial or technical assistance agreement
applications. Any conflict that may arise under this provision shall (c) Onshore, beyond five hundred meters (500m) from the mean
be heard and resolved by the panel of arbitrators. low tide level -
Sec. 19 Areas Closed to Mining Applications. Mineral agreement (1) For individuals, one hundred (100) blocks; and
or financial or technical assistance agreement applications shall
not be allowed: (2) For partnerships, corporations, cooperatives, or associations,
one thousand (1,000) blocks.
(a) In military and other government reservations, except upon
prior written clearance by the government agency concerned; Sec. 23 Rights and Obligations of the Permittee. An exploration
permit shall grant to the permittee, his heirs or successors-in-
interest, the right to enter, occupy and explore the area:
Provided, That if private or other parties are affected, the A mineral agreement shall grant to the contractor the exclusive
permittee shall first discuss with the said parties the extent, right to conduct mining operations and to extract all mineral
necessity, and manner of his entry, occupation and exploration resources found in the contract area. In addition, the contractor
and in case of disagreement, a panel of arbitrators shall resolve may be allowed to convert his agreement into any of the modes
the conflict or disagreement. of mineral agreements or financial or technical assistance
agreement covering the remaining period of the original
The permittee shall undertake an exploration work on the area agreement subject to the approval of the Secretary.
specified by its permit based on an approved work program.
Sec. 27 Eligibility. A qualified person may enter into any of the
Any expenditure in excess of the yearly budget of the approved three (3) modes of mineral agreement with the government for
work program may be carried forward and credited to the the exploration, development and utilization of mineral resources:
succeeding years covering the duration of the permit. The Provided, That in case the applicant has been in the mining
Secretary, through the Director, shall promulgate rules and industry for any length of time, he should possess a satisfactory
regulations governing the terms and conditions of the permit. environmental track record as determined by the Mines and
Geosciences Bureau and in consultation with the Environment
The permittee may apply for a mineral production sharing Management Bureau of the Department.
agreement, joint venture agreement, co-production agreement or
financial or technical assistance agreement over the permit area, Sec. 28 Maximum Areas for Mineral Agreement. The maximum
which application shall be granted if the permittee meets the area that a qualified person may hold at any time under a mineral
necessary qualifications and the terms and conditions of any such agreement shall be:
agreement: Provided, That the exploration period covered by the
exploration permit shall be included as part of the exploration (a) Onshore, in any one province -
period of the mineral agreement or financial or technical
assistance agreement. (1) For individuals, ten (10) blocks; and
Sec. 24 Declaration of Mining Project Feasibility. A holder of an (2) For partnerships, cooperatives, associations, or corporations,
exploration permit who determines the commercial viability of a one hundred (100) blocks.
project covering a mining area may, within the term of the permit,
file with the Bureau a declaration of mining project feasibility (b) Onshore, in the entire Philippines -
accompanied by a work program for development. The approval
of the mining project feasibility and compliance with other (1) For individuals, twenty (20) blocks; and
requirements provided in this Act shall entitle the holder to an
exclusive right to a mineral production sharing agreement or (2) For partnerships, cooperatives, associations, or corporations,
other mineral agreements or financial or technical assistance two hundred (200) blocks.
agreement.
(c) Offshore, in the entire Philippines -
Sec. 25 Transfer or Assignment. An exploration permit may be
transferred or assigned to a qualified person subject to the (1) For individuals, fifty (50) blocks;
approval of the Secretary upon the recommendation of the
Director. (2) For partnerships, cooperatives, associations, or corporations,
five hundred (500) blocks; and
CHAPTER V
MINERAL AGREEMENTS (3) For the exclusive economic zone, a larger area to be
determined by the Secretary.
Sec. 26 Modes of Mineral Agreement. For purposes of mining
operations, a mineral agreement may take the following forms as The maximum areas mentioned above that a contractor may hold
herein defined: under a mineral agreement shall not include mining/quarry areas
under operating agreements between the contractor and a
(a) Mineral production sharing agreement - is an agreement claimowner/lessee/permittee/licensee entered into under
where the Government grants to the contractor the exclusive Presidential Decree No. 463.
right to conduct mining operations within a contract area and
shares in the gross output. The contractor shall provide the Sec. 29 Filing and Approval of Mineral Agreements. All proposed
financing, technology, management and personnel necessary for mineral agreements shall be filed in the region where the areas of
the implementation of this agreement. interest are located, except in mineral reservations which shall be
filed with the Bureau.
(b) Co-production agreement - is an agreement between the
Government and the contractor wherein the Government shall The filing of a proposal for a mineral agreement shall give the
provide inputs to the mining operations other than the mineral proponent the prior right to areas covered by the same. The
resource. proposed mineral agreement will be approved by the Secretary
and copies thereof shall be submitted to the President.
(c) Joint venture agreement - is an agreement where a joint- Thereafter, the President shall provide a list to Congress of every
venture company is organized by the Government and the approved mineral agreement within thirty (30) days from its
contractor with both parties having equity shares. Aside from approval by the Secretary.
earnings in equity, the Government shall be entitled to a share in
the gross output. Sec. 30 Assignment/Transfer. Any assignment or transfer of rights
and obligations under any mineral agreement except a financial or
technical assistance agreement shall be subject to the prior (d) Representations and warranties that the applicant has all the
approval of the Secretary. Such assignment or transfer shall be qualifications and none of the disqualifications for entering into
deemed automatically approved if not acted upon by the the agreement;
Secretary within thirty (30) working days from official receipt
thereof, unless patently unconstitutional or illegal. (e) Representations and warranties that the contractor has or has
access to all the financing, managerial and technical expertise
Sec. 31 Withdrawal from Mineral Agreements. The contractor and, if circumstances demand, the technology required to
may, by giving due notice at any time during the terms of the promptly and effectively carry out the objectives of the
agreement, apply for the cancellation of the mineral agreement agreement with the understanding to timely deploy these
due to causes which, in the opinion of the contractor, make resources under its supervision pursuant to the periodic work
continued mining operations no longer feasible or viable. The programs and related budgets, when proper, providing an
Secretary shall consider the notice and issue its decision within a exploration period up to two (2) years, extendible for another two
period of thirty (30) days: Provided, That the contractor has met (2) years but subject to annual review by the Secretary in
all its financial, fiscal and legal obligations. accordance with the implementing rules and regulations of this
Act, and further, subject to the relinquishment obligations;
Sec. 32 Terms. Mineral agreements shall have a term not
exceeding twenty-five (25) years to start from the date of (f) Representations and warranties that, except for payments for
execution thereof, and renewable for another term not exceeding dispositions for its equity, foreign investments in local enterprises
twenty-five (25) years under the same terms and conditions which are qualified for repartriation, and local supplier's credits
thereof, without prejudice to charges mutually agreed upon by and such other generally accepted and permissible financial
the parties. After the renewal period, the operation of the mine schemes for raising funds for valid business purposes, the
may be undertaken by the Government or through a contractor. contractor shall not raise any form of financing from domestic
The contract for the operation of a mine shall be awarded to the sources of funds, whether in Philippine or foreign currency, for
highest bidder in a public bidding after due publication of the conducting its mining operations for and in the contract area;
notice thereof: Provided, That the contractor shall have the right
to equal the highest bid upon reimbursement of all reasonable (g) The mining operations shall be conducted in accordance with
expenses of the highest bidder. the provisions of this Act and its implementing rules and
regulations;
CHAPTER VI
FINANCIAL OR TECHNICAL ASSISTANCE AGREEMENT (h) Work programs and minimum expenditures commitments;
Sec. 33 Eligibility. Any qualified person with technical and financial (i) Preferential use of local goods and services to the maximum
capability to undertake large-scale exploration, development, and extent practicable;
utilization of mineral resources in the Philippines may enter into a
financial or technical assistance agreement directly with the (j) A stipulation that the contractors are obligated to give
Government through the Department. preference to Filipinos in all types of mining employment for
which they are qualified and that technology shall be transferred
Sec. 34 Maximum Contract Area. The maximum contract area that to the same;
may be granted per qualified person, subject to relinquishment
shall be: (k) Requiring the prominent to effectively use appropriate anti-
pollution technology and facilities to protect the environment and
(a) 1,000 meridional blocks onshore; to restore or rehabilitate mined out areas and other areas
(b) 4,000 meridional blocks offshore; or affected by mine tailings and other forms of pollution or
(c) Combinations of (a) and (b) provided that it shall not exceed destruction;
the maximum limits for onshore and offshore areas.
(l) The contractors shall furnish the Government records of
Sec. 35 Terms and Conditions. The following terms, conditions, geologic, accounting, and other relevant data for its mining
and warranties shall be incorporated in the financial or technical operations, and that book of accounts and records shall be open
assistance agreement, to wit: for inspection by the government;
(a) A firm commitment in the form of a sworn statement, of an (m) Requiring the proponent to dispose of the minerals and by
amount corresponding to the expenditure obligation that will be products produced under a financial or technical assistance
invested in the contract area: Provided, That such amount shall be agreement at the highest price and more advantageous terms and
subject to changes as may be provided for in the rules and conditions as provided for under the rules and regulations of this
regulations of this act; Act;
(b) A financial guarantee bond shall be posted in favor of the (n) Provide for consultation and arbitration with respect to the
Government in an amount equivalent to the expenditure interpretation and implementation of the terms and conditions of
obligation of the applicant for any year. the agreements; and
(c) Submission of proof of technical competence, such as, but not (o) Such other terms and conditions consistent with the
limited to, its track record in mineral resource exploration, Constitution and with this Act as the Secretary may deem to be
development, and utilization; details of technology to be for the best interest of the State and the welfare of the Filipino
employed in the proposed operation; and details of technical people.
personnel to undertake the operations;
Sec. 36 Negotiations. A financial or technical assistance Sec. 43 Quarry Permit. Any qualified person may apply to the
agreement shall be negotiated by the Department and executed provincial/city mining regulatory board for a quarry permit on
and approved by the President. The President shall notify privately-owned lands and/or public lands for building and
Congress of all Financial or technical assistance agreements within construction materials such as marble, basalt, andesite,
thirty (30) days from execution and approval thereof. conglomerate, tuff, adobe, granite, gabbro, serpentine, inset filing
materials, clay for ceramic tiles and building bricks, pumice,
Sec. 37 Filing and Evaluation of Financial or Technical Assistance perlite and other similar materials that are extracted by quarrying
Agreement Proposals. All financial or technical assistance from the ground. The provincial governor shall grant the permit
agreement proposals shall be filed with the Bureau after payment after the applicant has complied with all the requirements as
of the required processing fees. If the proposal is found to be prescribed by the rules and regulations.
sufficient and meritorious in form and substance after evaluation,
it shall be recorded with the appropriate government agency to The maximum area which a qualified person may hold at any one
give the proponent the prior right to the area covered by such time shall be five hectares (5 has.): Provided, That in large-scale
proposal: Provided, That existing mineral agreements, financial or quarry operations involving cement raw materials, marble,
technical assistance agreements and other mining rights are not granite, sand and gravel and construction agreements, a qualified
impaired or prejudiced thereby. The Secretary shall recommend person and the government may enter into a mineral agreement
its approval to the President. as defined herein.
Sec. 38 Terms of Financial or Technical Assistance Agreement. A A quarry permit shall have a term of five (5) years, renewable for
financial or technical assistance agreement shall have a term not like periods but not to exceed a total term of twenty-five (25)
exceeding twenty-five (25) years to start from the execution years, No quarry permit shall be issued or granted on any area
thereof, renewable for not more than twenty-five (25) years covered by a mineral agreement, or financial or technical
under such terms and conditions as may be provided by law. assistance agreement.
Sec. 39 Option to Convert into a Mineral Agreement. The Sec. 44 Quarry Fee and Taxes. A permittee shall, during the term
contractor has the option to convert the financial or technical of his permit, pay a quarry fee as provided for under the
assistance agreement to a mineral agreement at any time during implementing rules and regulations. The permittee shall also pay
the term of the agreement, if the economic viability of the the excise tax as provided by pertinent laws.
contract area is found to be inadequate to justify large-scale
mining operations, after proper notice to the Secretary as Sec. 45 Cancellation of Quarry Permit. A quarry permit may be
provided for under the implementing rules and regulations: cancelled by the provincial governor for violations of the
Provided, That the mineral agreement shall only be for the provisions of this Act or its implementing rules and regulations or
remaining period of the original agreement. the terms and conditions of said permit: Provided, That before the
cancellation of such permit, the holder thereof shall be given the
In the case of a foreign contractor, it shall reduce its equity to opportunity to be heard in an investigation conducted for the
forty percent (40%) in the corporation, partnership, association, purpose.
or cooperative. Upon compliance with this requirement by the
contractor, the Secretary shall approve the conversion and Sec. 46 Commercial Sand and Gravel Permit. Any qualified person
execute the mineral production-sharing agreement. may be granted a permit by the provincial governor to extract and
remove sand and gravel or other loose or unconsolidated
Sec. 40 Assignment/Transfer. A financial or technical assistance materials which are used in their natural state, without
agreement may be assigned or transferred, in whole or in part, to undergoing processing from an area of not more than five
a qualified person subject to the prior approval of the President: hectares (5 has.) and in such quantities as may be specified in the
Provided, That the President shall notify Congress of every permit.
financial or technical assistance agreement assigned or converted
in accordance with this provision within thirty (30) days from the Sec. 47 Industrial Sand and Gravel Permit. Any qualified person
date of the approval thereof. may be granted an industrial sand and gravel permit by the
Bureau for the extraction of sand and gravel and other loose or
Sec. 41 Withdrawal from Financial or Technical Assistance unconsolidated materials that necessitate the use of mechanical
Agreement. The contractor shall manifest in writing to the processing covering an area of more than five hectares (5 has.) at
Secretary his intention to withdraw from the agreement, if in his any one time. The permit shall have a term of five (5) years,
judgement the mining project is no longer economically feasible, renewable for a like period but not to exceed a total term of
even after he has exerted reasonable diligence to remedy the twenty-five (25) years.
cause or the situation. The Secretary may accept the withdrawal:
Provided, That the contractor has complied or satisfied all his Sec. 48 Exclusive Sand and Gravel Permit. Any qualified person
financial, fiscal or legal obligations. may be granted an exclusive sand and gravel permit by the
provincial governor to quarry and utilize sand and gravel or other
CHAPTER VII loose or unconsolidated materials from public lands for his own
SMALL-SCALE MINING use, provided that there will be no commercial disposition
thereof.
Sec. 42 Small-scale Mining. Small-scale mining shall continue to be
governed by Republic Act No. 7076 and other pertinent laws. A mineral agreement or a financial technical assistance agreement
contractor shall, however, have the right to extract and remove
CHAPTER VIII sand and gravel and other loose unconsolidated materials without
QUARRY RESOURCES need of a permit within the area covered by the mining
agreement for the exclusive use in the mining operations:
Provided, That monthly reports of the quantity of materials processing plants shall continue to be governed by the provisions
extracted therefrom shall be submitted to the mines regional of Republic Act No. 7076.
office concerned: Provided, further, That said right shall be
coterminous with the expiration of the agreement. Sec. 56 Eligibility of Foreign-owned/-controlled Corporation. A
foreign-owned/-controlled corporation may be granted a mineral
Holders of existing mining leases shall likewise have the same processing permit.
rights as that of a contractor: Provided, That said right shall be
coterminous with the expiry dates of the lease. CHAPTER X
DEVELOPMENT OF MINING COMMUNITIES, SCIENCE AND
Sec. 49 Government Gratuitous Permit. Any government entity or MINING TECHNOLOGY
instrumentality may be granted a gratuitous permit by the
provincial governor to extract sand and gravel, quarry or loose Sec. 57 Expenditure for Community Development and Science and
unconsolidated materials needed in the construction of building Mining Technology. A contractor shall assist in the development
and/or infrastructure for public use or other purposes over an of its mining community, the promotion of the general welfare of
area of not more than two hectares (2 has.) for a period its inhabitants, and the development of science and mining
coterminous with said construction. technology.
Sec. 50 Private Gratuitous Permit. Any owner of land may be Sec. 58 Credited Activities. Activities that may be credited as
granted a private gratuitous permit by the provincial governor. expenditures for development of mining communities, and
science and mining technology are the following:
Sec. 51 Guano Permit. Any qualified person may be granted a
guano permit by the provincial governor to extract and utilize (a) Any activity or expenditure intended to enhance the
loose unconsolidated guano and other organic fertilizer materials development of the mining and neighboring communities of a
in any portion of a municipality where he has established mining operation other than those required or provided for under
domicile. The permit shall be for specific caves and/or for existing laws, or collective bargaining agreements, and the like:
confined sites with locations verified by the Department's field and
officer in accordance with existing rules and regulations.
(b) Any activity or expenditure directed towards the development
Sec. 52 Gemstone Gathering Permit. Any qualified person may be of geosciences and mining technology such as, but not limited to,
granted a non-exclusive gemstone gathering permit by the institutional and manpower development, and basic and applied
provincial governor to gather loose stones useful as gemstones in researches. Appropriate supervision and control mechanisms shall
rivers and other locations. be prescribed in the implementing rules and regulations of this
Act.
CHAPTER IX
TRANSPORT, SALE AND PROCESSING OF MINERALS Sec. 59 Training and Development. A contractor shall maintain an
effective program of manpower training and development
Sec. 53 Ore Transport Permit. A permit specifying the origin and throughout the term of the mineral agreement and shall
quantity of non-processed mineral ores or minerals shall be encourage and train Filipinos to participate in all aspects of the
required for their transport. Transport permits shall be issued by mining operations, including the management thereof. For highly-
the mines regional director who has jurisdiction over the area technical and specialized mining operations, the contractor may,
where the ores were extracted. In the case of mineral ores or subject to the necessary government clearances, employ qualified
minerals being transported from the small-scale mining areas to foreigners.
the custom mills or processing plants, the Provincial Mining
Regulatory Board (PMRB) concerned shall formulate their own Sec. 60 Use of Indigenous Goods, Services and Technologies. A
policies to govern such transport of ores produced by small-scale contractor shall give preference to the use of local goods, services
miners. The absence of a permit shall be considered as prima facie and scientific and technical resources in the mining operations,
evidence of illegal mining and shall be sufficient cause for the where the same are of equivalent quality, and are available on
Government to confiscate the ores or minerals being transported, equivalent terms as their imported counterparts.
the tools and equipment utilized, and the vehicle containing the
same. Ore samples not exceeding two metric tons (2 m.t.) to be Sec. 61 Donations/Turn Over of Facilities. Prior to cessation of
used exclusively for assay or pilot test purposes shall be exempted mining operations occasioned by abandonment or withdrawal of
from such requirement. operations, on public lands by the contractor, the latter shall have
a period of one (1) year therefrom within which to remove his
Sec. 54 Mineral Trading Registration. No person shall engage in improvements; otherwise, all the social infrastructure and
the trading of mineral products, either locally or internationally, facilities shall be turned over or donated tax-free to the proper
unless registered with the Department of Trade and Industry and government authorities, national or local, to ensure that said
accredited by the Department, with a copy of said registration infrastructure and facilities are continuously maintained and
submitted to the Bureau. utilized by the host and neighboring communities.
Sec. 55 Minerals Processing Permit. No person shall engage in the Sec. 62 Employment of Filipinos. A contractor shall give
processing of minerals without first securing a minerals processing preference to Filipino citizens in all types of mining employment
permit from the Secretary. Minerals processing permit shall be for within the country insofar as such citizens are qualified to perform
a period of five (5) years renewable for like periods but not to the corresponding work with reasonable efficiency and without
exceed a total term of twenty-five (25) years. In the case of hazard to the safety of the operations. The contractor, however,
mineral ores or minerals produced by the small-scale miners, the shall not be hindered from hiring employees of his own selection,
processing thereof as well as the licensing of their custom mills, or subject to the provision of Commonwealth Act No. 613, as
amended, for technical and specialized work which in his situated. Failure to report the same without justifiable reason
judgement and with the approval of the Director, required highly- shall be a cause for the imposition of administrative sanctions
specialized training or long experience in exploration, prescribed in the rules and regulations implementing this Act.
development or utilization of mineral resources: Provided, That in
no case shall each employment exceed five (5) years or the Sec. 69 Environmental Protection. Every contractor shall
payback period as represented in original project study, undertake an environmental protection and enhancement
whichever is longer: Provided, further, That each foreigner program covering the period of the mineral agreement or permit.
employed as mine manager, vice-president for operations or in an Such environmental program shall be incorporated in the work
equivalent managerial position in charge of mining, milling, program which the contractor or permittee shall submit as an
quarrying or drilling operation shall: accompanying document to the application for a mineral
agreement or permit. The work program shall include not only
(a) Present evidence of his qualification and work experience; or plans relative to mining operations but also to rehabilitation,
regeneration, revegetation and reforestation of mineralized areas,
(b) Shall pass the appropriate government licensure examination; slope stabilization of mined-out and tailings covered areas,
or aquaculture, watershed development and water conservation;
and socioeconomic development.
(c) In special cases, may be permitted to work by the Director for a
period not exceeding one (1) year: Provided, however, That if Sec. 70 Environmental Impact Assessment (EIA). Except during the
reciprocal privileges are extended to Filipino nationals in the exploration period of a mineral agreement or financial or
country of domicile, the Director may grant waivers or technical assistance agreement or an exploration permit, an
exemptions. environmental clearance certificate shall be required based on an
environmental impact assessment and procedures under the
CHAPTER XI Philippine Environmental Impact Assessment System including
SAFETY AND ENVIRONMENTAL PROTECTION Sections 26 and 27 of the Local Government Code of 1991 which
require national government agencies to maintain ecological
Sec. 63 Mines Safety and Environmental Protection. All balance, and prior consultation with the local government units,
contractors and permittees shall strictly comply with all the mines nongovernmental and people's organizations and other
safety rules and regulations as may be promulgated by the concerned sectors of the community: Provided, That a completed
Secretary concerning the safe and sanitary upkeep of the mining ecological profile of the proposed mining area shall also constitute
operations and achieve waste-free and efficient mine part of the environmental impact assessment. People's
development. Personnel of the Department involved in the organizations and non-governmental organizations shall be
implementation of mines safety, health and environmental rules allowed and encourage to participate in ensuring that
and regulations shall be covered under Republic Act No. 7305. contractors/permittees shall observe all the requirements of
environmental protection.
Sec. 64 Mine Labor. No person under sixteen (16) years of age
shall be employed in any phase of mining operations and no Sec. 71 Rehabilitation. Contractors and permittees shall
person under eighteen (18) years of age shall be employed technically and biologically rehabilitate the excavated mined-out,
underground in a mine. tailings covered and disturbed areas to the condition of
environmental safety, as may be provided in the implementing
Sec. 65 Mine Supervision. All mining and quarrying operations rules and regulations of this Act. A mine rehabilitation fund shall
that employ more than fifty (50) workers shall have at least one be created, based on the contractor's approved work program,
(1) licensed mining engineer with at least five (5) years of and shall be deposited as a trust fund in a government depository
experience in mining operations, and one (1) registered foreman. bank and used for physical and social rehabilitation of areas and
communities affected by mining activities and for research on the
Sec. 66 Mine Inspection. The regional director shall have exclusive social, technical and preventive aspects of rehabilitation. Failure
jurisdiction over the safety inspection of all installations, surface to fulfill the above obligation shall mean immediate suspension or
or underground, in mining operations at reasonable hours of the closure of the mining activities of the contractor/permittee
day or night and as much as possible in a manner that will not concerned.
impede or obstruct work in progress of a contractor or permittee.
CHAPTER XII
Sec. 67 Power to Issue Orders. The mines regional director shall, AUXILIARY MINING RIGHTS
in consultation with the Environmental Management Bureau,
forthwith or within such time as specified in his order, require the Sec. 72 Timber Rights. Any provision of law to the contrary
contractor to remedy any practice connected with mining or notwithstanding, a contractor may be ranged a right to cut trees
quarrying operations, which is not in accordance with safety and or timber within his mining area as may be necessary for his
anti-pollution laws and regulations, which is not in accordance mining operations subject to forestry laws, rules and regulations:
with safety and anti-pollution laws and regulations. In case of Provided, That if the land covered by the mining area is already
imminent danger to life or property, the mines regional director covered by existing timber concessions, the volume of timber
may summarily suspend the mining or quarrying operations until needed and the manner of cutting and removal thereof shall be
the danger is removed, or appropriate measures are taken by the determined by the mines regional director, upon consultation
contractor or permittee. with the contractor, the timber concessionaire/permittee and the
Forest Management Bureau of the Department: Provided, further,
Sec. 68 Report of Accidents. In case of any incident or accident, That in case of disagreement between the contractor and the
causing or creating the danger of loss of life or serious physical timber concessionaire, the matter shall be submitted to the
injuries, the person in charge of operations shall immediately Secretary whose decision shall be final. The contractor shall
report the same to the regional office where the operations are
perform reforestation work within his mining area in accordance and obligations in hearing and deciding cases until their
with forestry laws, rules and regulations. designation is withdrawn or revoked by the Secretary. Within
thirty (30) working days, after the submission of the case by the
Sec. 73 Water Rights. A contractor shall have water rights for parties for decision, the panel shall have exclusive and original
mining operations upon approval of application with the jurisdiction to hear and decide on the following:
appropriate government agency in accordance with existing water
laws, rules and regulations promulgated thereunder: Provided, (a) Disputes involving rights to mining areas;
That water rights already granted or vested through long use,
recognized and acknowledged by local customs, laws, and (b) Disputes involving mineral agreements or permits;
decisions of courts shall not thereby be impaired: Provided
further, That the Government reserves the right to regulate water (c) Disputes involving surface owners, occupants and
rights and the reasonable and equitable distribution of water claimholders/concessionaires; and
supply so as to prevent the monopoly of the use thereof.
(d) Disputes pending before the Bureau and the Department at
Sec. 74 Right to Possess Explosives. A contractor/ exploration the date of the effectivity of this Act.
permittee shall have the right to possess and use explosives
within his contract/permit area as may be necessary for his Sec. 78 Appellate Jurisdiction. The decision or order of the panel
mining operations upon approval of an application with the of arbitrators may be appealed by the party not satisfied thereto
appropriate government agency in accordance with existing laws, to the mines Adjudication Board within fifteen (15) days from
rules and regulations promulgated thereunder: Provided, That the receipt thereof which must decide the case within thirty (30) days
Government reserves the right to regulate and control the from submission thereof for decision.
explosive accessories to ensure safe mining operations.
Sec. 79 Mines Adjudication Board. The Mines Adjudication Board
Sec. 75 Easement Rights. When mining areas are so situated that shall be composed of three (3) members. The Secretary shall be
for purposes of more convenient mining operations it is necessary the chairman with the Director of the Mines and Geosciences
to build, construct or install on the mining areas or lands owned, Bureau and the Undersecretary for Operations of the Department
occupied or leased by other persons, such infrastructure as roads, as member thereof. The Board shall have the following powers
railroads, mills, waste dump sites, tailings ponds, warehouses, and functions:
staging or storage areas and port facilities, tramways, runways,
airports, electric transmission, telephone or telegraph lines, dams (a) To promulgate rules and regulations governing the hearing and
and their normal flood and catchment areas, sites for water wells, disposition of cases before it, as well as those pertaining to its
ditches, canals, new river beds, pipelines, flumes, cuts, shafts, internal functions, and such rules and regulations as may be
tunnels, or mills, the contractor, upon payment of just necessary to carry out its functions;
compensation, shall be entitled to enter and occupy said mining
areas or lands. (b) To administer oaths, summon the parties to a controversy,
issue subpoenas requiring the attendance and testimony of
Sec. 76 Entry into Private Lands and Concession Areas. Subject to witnesses or the production of such books, paper, contracts,
prior notification, holders of mining rights shall not be prevented records, statement of accounts, agreements, and other
from entry into private lands and concession areas by surface documents as may be material to a just determination of the
owners, occupants, or concessionaires when conducting mining matter under investigation, and to testify in any investigation or
operations therein: Provided, That any damage done to the hearing conducted in pursuance of this Act;
property of the surface owner, occupant, or concessionaire as a
consequence of such operations shall be properly compensated as (c) To conduct hearings on all matters within its jurisdiction,
may be provided for in the implementing rules and regulations: proceed to hear and determine the disputes in the absence of any
Provided, further, That to guarantee such compensation, the party thereto who has been summoned or served with notice to
person authorized to conduct mining operation shall, prior appear, conduct its proceedings or any part thereof in public or in
thereto, post a bond with the regional director based on the type private, adjourn its hearings at any time and place, refer technical
of properties, the prevailing prices in and around the area where matters or accounts to an expert and to accept his report as
the mining operations are to be conducted, with surety or sureties evidence after hearing of the parties upon due notice, direct
satisfactory to the regional director. parties to be joined in or excluded from the proceedings, correct,
amend, or waive any error, defect or irregularity, whether in
CHAPTER XIII substance or in form, give all such directions at it may deem
SETTLEMENT OF CONFLICTS necessary or expedient in the determination of the dispute before
it and dismiss the mining dispute as part thereof, where it is trivial
Sec. 77 Panel of Arbitrators. There shall be a panel of arbitraters or where further proceedings by the Board are not necessary or
in the regional office of the Department composed of three (3) desirable;
members, two (2) of whom must be members of the Philippine
Bar in good standing and one licensed mining engineer or a (1) to hold any person in contempt, directly or indirectly, and
professional in a related field, and duly designated by the impose appropriate penalties therefor; and
Secretary as recommended by the Mines and Geosciences Bureau
Director. Those designated as members of the panel shall serve as (2) To enjoin any or all acts involving or arising from any case
such in addition to their work in the Department without pending before it which, if not restrained forthwith, may cause
receiving any additional compensation. As much as practicable, grave or irreparable damage to any of the parties to the case or
said members shall come from the different bureaus of the seriously affect social and economic stability.
Department in the region. The presiding officer shall be on a
yearly basis. The members of the panel shall perform their duties
In any proceeding before the Board, the rules of evidence Sec. 83 Income Taxes. After the lapse of the income tax holiday as
prevailing in courts of law or equity shall not be controlling and it provided for in the Omnibus Investments Code, the contractor
is the spirit and intention of this Act that shall govern. The Board shall be liable to pay income tax as provided in the National
shall use every and all reasonable means to ascertain the facts in Internal Revenue Code, as amended.
each case speedily and objectively and without regard to
technicalities of law or procedure, all in the interest of due Sec. 84 Excise Tax on Mineral Products. The contractor shall be
process. In any proceeding before the Board, the parties may be liable to pay the excise tax on mineral products as provided for
represented by legal counsel. the findings of fact of the Board under Section 151 of the National Internal Revenue Code:
shall be conclusive and binding on the parties and its decision or Provided, however, That with respect to a mineral production
order shall be final and executory. sharing agreement, the excise tax on mineral products shall be
the government share under said agreement.
A petition for review by certiorari and question of law may be
filed by the aggrieved party with the Supreme Court within thirty Sec. 85 Mine Wastes and Tailings Fees. A semi-annual fee to be
(30) days from receipt of the order or decision of the Board. known as mine wastes and tailings fee is hereby imposed on all
operating mining companies in accordance with the implementing
CHAPTER XIV rules and regulations. The mine wastes and tailings fee shall
GOVERNMENT SHARE accrue to a reserve fund to be used exclusively for payment for
damages to:
Sec. 80 Government Share in Mineral Production Sharing
Agreement. The total government share in a mineral production (a) Lives and personal safety;
sharing agreement shall be the excise tax on mineral products as (b) Lands, agricultural crops and forest products, marine life and
provided in Republic Act No. 7729, amending Section 151(a) of aquatic resources, cultural resources; and
the National Internal Revenue Code, as amended. (c) Infrastructure and the revegetation and rehabilitation of silted
farm lands and other areas devoted to agriculture and fishing
Sec. 81 Government Share in Other Mineral Agreements. The caused by mining pollution.
share of the Government in co-production and joint-venture
agreements shall be negotiated by the Government and the This is in addition to the suspension or closure of the activities of
contractor taking into consideration the: (a) capital investment of the contractor at any time and the penal sanctions imposed upon
the project, (b) risks involved, (c) contribution of the project to the same.
the economy, and (d) other factors that will provide for a fair and
equitable sharing between the Government and the contractor. The Secretary is authorized to increase mine wastes and tailings
The Government shall also be entitled to compensations for its fees, when public interest so requires, upon the recommendation
other contributions which shall be agreed upon by the parties, of the Director.
and shall consist, among other things, the contractor's income tax,
excise tax, special allowance, withholding tax due from the Sec. 86 Occupation Fees. There shall be collected from any holder
contractor's foreign stockholders arising from dividend or interest of a mineral agreement, financial or technical assistance
payments to the said foreign stockholders, in case of a foreign agreement or exploration permit on public or private lands, an
national, and all such other taxes, duties and fees as provided for annual occupation fee in accordance with the following schedule;
under existing laws.
(a) For exploration permit - Five pesos (P5.00) per hectare or
The Government share in financial or technical assistance fraction thereof per annum;
agreement shall consist of, among other things, the contractor's
corporate income tax, excise tax, special allowance, withholding (b) For mineral agreements and financial or technical assistance
tax due from the contractor's foreign stockholders arising from agreements - Fifty pesos (P50.00) per hectare or fraction thereof
dividend or interest payments to the said foreign stockholder in per annum; and
case of a foreign national and all such other taxes, duties and fees
as provided for under existing laws. (c) For mineral reservation - One hundred pesos (P100.00) per
hectare or fraction thereof per annum.
The collection of government share in financial or technical
assistance agreement shall commence after the financial or The Secretary is authorized to increase the occupation fees
technical assistance agreement contractor has fully recovered its provided herein when the public interest so requires, upon
pre-operating expenses, exploration, and development recommendation of the Bureau Director.
expenditures, inclusive.
Sec. 87 Manner of payment of Fees. The fees shall be paid on the
Sec. 82 Allocation of Government Share. The Government share date the mining agreement is registered with the appropriate
as referred to in the preceding sections shall be shared and office and on the same date every year thereafter. It shall be paid
allocated in accordance with Sections 290 and 292 of Republic Act to the treasurer of the municipality or city where the onshore
No. 7160 otherwise known as the Local Government Code of mining areas are located, or to the Director in case of offshore
1991. In case the development and utilization of mineral mining areas. For this purpose, the appropriate officer shall
resources is undertaken by a government-owned or controlled submit to the treasurer of the municipality or city where the
corporation, the sharing and allocation shall be in accordance with onshore mining area is located, a complete list of all onshore
Sections 291 and 292 of the said Code. mining rights registered with his office, indicating therein the
names of the holders, area in hectares, location, and date
CHAPTER XV registered. If the fee is not paid on the date specified, it shall be
TAXES AND FEES increased by twenty-five per centum (25%).
Sec. 88 Allocation of Occupation Fees. Thirty per centum (30%) of from mining shall be carried forward to the succeeding years until
all occupational fees collected from holders of mining rights in fully deducted.
onshore mining areas shall accrue to the province and seventy per
centum (70%) to the municipality in which the onshore mining Net income from mining operation is defined as gross income
areas are located. In a chartered city, the full amount shall accrue from operations less allowable deductions which are necessary or
to the city concerned. related to mining operations. Allowable deductions shall include
mining, milling and marketing expenses, depreciation or
Sec. 89 Filing Fees and Other Charges. The Secretary is authorized properties directly used in the mining operations. This paragraph
to charge reasonable filing fees and other charges as he may shall not apply to expenditures for the acquisition or
prescribe in accordance with the implementing rules and improvement of property of a character which is subject to the
regulations. allowances for depreciation.
CHAPTER XVI Sec. 94 Investment Guarantees. The contractor shall be entitled to
INCENTIVES the basic rights and guarantees provided in
the Constitution and such other rights recognized by the
Sec. 90 Incentives. The contractors in mineral agreements, and government as enumerated hereunder.
financial or technical assistance agreements shall be entitled to
the applicable fiscal and non-fiscal incentives as provided for (a) Repatriation of investments. The right to repatriate the entire
under Executive Order No. 226, otherwise known as the Omnibus proceeds of the liquidation of the foreign investment in the
Investments Code of 1987: Provided, That holders of exploration currency in which the investment was originally made and at the
permits may register with the Board of Investments and be exchange rate prevailing at the time of repatriation.
entitled to the fiscal incentives granted under the said Code for
the duration of the permits or extensions thereof: Provided, (b) Remittance of earnings. The right to remit earnings from the
further, That mining activities shall always be included in the investment in the currency in which the foreign investment was
investment priorities plan. originally made at the exchange rate prevailing at the time of
remittance.
Sec. 91 Incentives for Pollution Control Devices. Pollution control
devices acquired, constructed or installed by contractors shall not (c) Foreign loans and contracts. The right to remit at the exchange
be considered as improvements on the land or building where rate prevailing at the time of remittance such sums as may be
they are placed, and shall not be subject to real property and necessary to meet the payments of interest and principal on
other taxes or assessments: Provided, however, That payment of foreign loans and foreign obligations arising from financial or
mine wastes and tailings fees is not exempted. technical assistance contracts.
Sec. 92 Income Tax-Carry Forward of Losses. A net operating loss (d) Freedom from expropriation. The right to be free from
without the benefit of incentives incurred in any of the first ten expropriation by the government of the property represented by
(10) years of operations may be carried over as a deduction from investments or loans, or of the property of the enterprise except
taxable income for the next five (5) years immediately following for public use or in the interest of national welfare or defense and
the year of such loss. The entire amount of the loss shall be upon payment of just compensation. In such cases, foreign
carried over to the first of the five (5) taxable years following the investors or enterprises shall have the right to remit sums
loss, and any portion of such loss which exceeds the taxable received as compensation for the expropriated property in the
income of such first year shall be deducted in like manner from currency in which the investment was originally made and at the
the taxable income of the next remaining four (4) years. exchange rate prevailing at the time of remittance.
Sec. 93 Income Tax-Accelerated Depreciation. Fixed assets may be (e) Requisition of investment. The right to be free from requisition
depreciated as follows: of the property represented by the investment or of the property
of the enterprises except in case of war or national emergency
(a) To the extent of not more than twice as fast as the normal rate and only for the duration thereof. Just compensation shall be
of depreciation or depreciated at normal rate of depreciation if determined and paid either at the time or immediately after
the expected life is ten (10) years or less; or cessation of the state of war or national emergency. Payments
received as compensation for the requisitioned property may be
(b) Depreciated over any number of years between five (5) years remitted in the currency in which the investments were originally
and the expected life if the latter is more than ten (10) years, and made and at the exchange rate prevailing at the time of
the depreciation thereon allowed as deduction from taxable remittance.
income: Provided, That the contractor notifies the Bureau of
Internal Revenue at the beginning of the depreciation period (f) Confidentiality. Any confidential information supplied by the
which depreciation rate allowed by this section will be used. contractor pursuant to this Act and its implementing rules and
regulations shall be treated as such by the department and the
In computing for taxable income, unless otherwise provided in Government, and during the term of the project to which it
this Act, the contractor may, at his option, deduct exploration and relates.
development expenditures accumulated at cost as of the date of
the prospecting or exploration and development expenditures CHAPTER XVII
paid or incurred during the taxable year: Provided, That the total GROUND FOR CANCELLATION, REVOCATION, AND
amount deductible for exploration and development expenditures TERMINATION
shall not exceed twenty-five per centum (25%) of the net income
from mining operations. The actual exploration and development Sec. 95 Late or Non-filing of Requirements. Failure of the
expenditures minus the twenty-five per centum (25%) net income permittee or contractor to comply with any of the requirements
provided in this Act or in its implementing rules and regulations, In addition, he shall be liable to pay damages and compensation
without a valid reason, shall be sufficient ground from the for the minerals removed, extracted, and disposed of. In the case
suspension of any permit or agreement provided under this Act. of associations, partnerships, or corporations, the president and
each of the directors thereof shall be responsible for the acts
Sec. 96 Violation of the Terms and Conditions of Permits or committed by such association, corporation, or partnership.
Agreements. Violations of the terms and conditions of the permits
or agreements shall be a sufficient ground for cancellation of the Sec. 104 Destruction of Mining Structures. Any person who
same. willfully destroys or damages structures in or on the mining area
or on the mill sites shall, upon conviction, be imprisoned for a
Sec. 97 Non-payment of taxes and Fees. Failure to pay the taxes period not to exceed five (5) years and shall, in addition, pay
and fees due the Government for two (2) consecutive years shall compensation for the damages which may have been caused
cause the cancellation of the exploration permit, mineral thereby.
agreement, financial or technical assistance agreement and other
agreements and the re-opening of the area subject thereof to Sec. 105 Mines Arson. Any person who willfully sets fire to any
new applicants. mineral stockpile, mine or workings, fittings or a mine, shall be
guilty of arson and shall be punished, upon conviction, by the
Sec. 98 Suspension or Cancellation of Tax Incentives and Credits. appropriate court in accordance with the provisions of the
Failure to abide by the terms and conditions of tax incentives and Revised Penal Code and shall, in addition, pay compensation for
credits shall cause the suspension or cancellation of said the damages caused thereby.
incentives and credits.
Sec. 106 Willful Damage to a Mine. Any person who willfully
Sec. 99 Falsehood or Omission of Facts in the Statement. All damages a mine, unlawfully causes water to run into a mine, or
statements made in the exploration permit, mining agreement obstructs any shaft or passage to a mine, or renders useless,
and financial or technical assistance shall be considered as damages or destroys any machine, appliance, apparatus; rope,
conditions and essential parts thereof and any falsehood in said chain, tackle, or any other things used in a mine, shall be
statements or omission of facts therein which may alter, change punished, upon conviction, by the appropriate court, by
or affect substantially the facts set forth in said statements may imprisonment not exceeding a period of five (5) years and shall, in
cause the revocation and termination of the exploration permit, addition, pay compensation for the damages caused thereby.
mining agreement and financial or technical assistance
agreement. Sec. 107 Illegal Obstruction to Permittees or Contractors. Any
person who, without justifiable cause, prevents or obstructs the
CHAPTER XVIII holder of any permit, agreement or lease from undertaking his
ORGANIZATIONAL AND INSTITUTIONAL ARRANGEMENT mining operations shall be punished, upon conviction by the
appropriate court, by a fine not exceeding Five thousand pesos
Sec. 100 From Staff Bureau to Line Bureau. The Mines and (P5,000.00) or imprisonment not exceeding one (1) year, or both,
Geosciences Bureau is hereby transformed into a line bureau at the discretion of the court.
consistent with Section 9 of this Act: Provided, That under the
Mines and Geosciences Bureau shall be the necessary mines Sec. 108 Violation of the Terms and Conditions of the
regional, district and other pertinent offices - the number and Environmental Compliance Certificate. Any person who willfully
specific functions of which shall be provided in the implementing violates or grossly neglects to abide by the terms and conditions
rules and regulations of this Act. of the environmental compliance certificate issued to said person
and which causes environmental damage through pollution shall
CHAPTER XIX suffer the penalty of imprisonment of six (6) months to six (6)
PENAL PROVISIONS years or a fine of Fifty thousand pesos (P50,000.00) to Two
Hundered Thousand Pesos (P200,000.00), or both at the
Sec. 101 False Statements. Any person who knowingly presents discretion of the court.
any false application, declaration, or evidence to the Government
or publishes or causes to be published any prospectus or other Sec. 109 Illegal Obstruction to Government Officials. Any person
information containing any false statement relating to mines, who illegally prevents or obstructs the Secretary, the Director or
mining operations or mineral agreements, financial or technical any of their representatives in the performance of their duties
assistance agreements and permits shall, upon conviction, be under the provisions of this Act and of the regulations
penalized by a fine of not exceeding Ten Thousand Pesos promulgated hereunder shall be punished, upon conviction, by
(P10,000.00). the appropriate court, by a fine not exceeding Five thousand
pesos (P5,000.00) or by imprisonment not exceeding one (1) year,
Sec. 102 Illegal Exploration. Any person undertaking exploration or both, at the discretion of the court.
work without the necessary exploration permit shall, upon
conviction, be penalized by a fine of not exceeding Fifty thousand Sec. 110 Other Violations. Any other violation of this Act and its
pesos (P50,000.00). implementing rules and regulations shall constitute an offense
punishable with a fine not exceeding five thousand pesos
Sec. 103 Theft of Minerals. Any person extracting minerals and (P5,000.00).
disposing the same without a mining agreement, lease, permit,
license, or steals minerals or ores or the products thereof from Sec. 111 Fines. The Secretary is authorized to charge fines for late
mines or mills or processing plants shall, upon conviction, be or nonsubmission of reports in accordance with the implementing
imprisoned from six (6) months to six (6) years or pay a fine from rules and regulations of this Act
Ten thousand pesos (P10,000.00) to Twenty thousand pesos
(P20,000.00), or both, at the discretion of the appropriate court.
REPUBLIC ACT NO. 7076: People's Small-scale Mining Act (j) "License" refers to the privilege granted to a person to
legitimately pursue his occupation as a small-scale miner or
Sec. 2. Declaration of Policy. — It is hereby declared of the State processor under this Act;
to promote, develop, protect and rationalize viable small-scale
mining activities in order to generate more employment
(k) "Mining plan" refers to a two-year program of activities and
opportunities and provide an equitable sharing of the nation's
methodologies employed in the extraction and production of
wealth and natural resources, giving due regard to existing rights
minerals or ore-bearing materials, including the financial plan and
as herein provided.
other resources in support thereof;
(d) Safety of miners; (b) Subject to the approval of the Board, free access to the
contract area to conduct metallurgical tests, explorations and
(e) Environmental impact and other considerations; and other activities, provided such activities do not unduly interfere
with the operations of the small-scale miners; and
(f) Other related circumstances.
(c) Royalty equivalent to one and one half percent (1 1/2%) of the Custom mills shall be constituted as withholding agents for the
gross value of the metallic mineral output or one percent (1%) of royalties, production share or other taxes due the Government.
the gross value of the nonmetallic mineral output to be paid to
the claimowner: Provided, That such rights and privileges shall be
Sec. 19. Government Share and Allotment. — The revenue to be
available only if he is not delinquent and other performance of his
derived by the Government from the operation of the mining
annual work obligations and other requirements for the last two
program herein established shall be subject to the sharing
(2) years prior to the effectivity of this Act.
provided in the Local Government Code.
(f) Perform such other functions as may be necessary to achieve Petitioners prayed that RA 7942, its implementing rules, and the
the goals and objectives of this Act. FTAA between the government and WMCP be declared
unconstitutional on ground that they allow fully foreign owned
Sec. 25. Composition of the Provincial/City Mining Regulatory corporations like WMCP to exploit, explore and develop Philippine
Board. — The Board shall be composed of the Department of mineral resources in contravention of Article XII Section 2
Environment and Natural Resources representative as Chairman; paragraphs 2 and 4 of the Charter.
and the representative of the governor or city mayor, as the
representative of the governor or city mayor, as the case may be, In January 2001, MMC – a publicly listed Australian mining and
one (1) small scale mining representative, one (1) big-scale mining exploration company – sold its whole stake in WMCP to
representative, and the representative from a nongovernment Sagittarius Mines, 60% of which is owned by Filipinos while 40% of
organization who shall come from an environmental group, as which is owned by Indophil Resources, an Australian company.
members. DENR approved the transfer and registration of the FTAA in
Sagittarius’ name but Lepanto Consolidated assailed the same.
The representatives from the private sector shall be nominated by The latter case is still pending before the Court of Appeals.
their respective organizations and appointed by the Department
regional director. The Department shall provide the staff support EO 279, issued by former President Aquino on July 25, 1987,
to the Board. authorizes the DENR to accept, consider and evaluate proposals
from foreign owned corporations or foreign investors for
contracts or agreements involving either technical or financial
Sec. 26. Administrative Supervision over the People's Small-scale assistance for large scale exploration, development and utilization
Mining Program. — The Secretary through his representative shall of minerals which upon appropriate recommendation of the
exercise direct supervision and control over the program and (DENR) Secretary, the president may execute with foreign
activities of the small-scale miners within the people's small-scale proponent. WMCP likewise contended that the annulment of the
mining area. FTAA would violate a treaty between the Philippines and Australia
which provides for the protection of Australian investments.
The Secretary shall within ninety (90) days from the effectivity of
this Act promulgate rules and regulations to effectively implement ISSUES:
the provisions of the same. Priority shall be given to such rules 1. Whether or not the Philippine Mining Act is
and regulations that will ensure the least disruption in the unconstitutional for allowing fully foreign-owned
operations of the small-scale miners. corporations to exploit Philippine mineral resources
HELD:
Cases
1) RA 7942 or the Philippine Mining Act of 1995 is
unconstitutional for permitting fully foreign owned
corporations to exploit Philippine natural resources.
La Bugal B’laan Tribal Association Inc., et al. V. Victor O. Ramos,
Secretary Department of Environment and Natural Resources;
Article XII Section 2 of the 1987 Constitution retained the Regalian
Horacio Ramos, Director, Mines and Geosciences Bureau (MGB-
doctrine which states that “All lands of the public domain, waters,
DENR);
minerals, coal, petroleum, and other minerals, coal, petroleum,
and other mineral oils, all forces of potential energy, fisheries,
The constitutional provision allowing the President to enter into
forests or timber, wildlife, flora and fauna, and other natural
FTAAs is an exception to the rule that participation in the nation’s
resources are owned by the State.” The same section also states
natural resources is reserved exclusively to Filipinos. Provision
that, “exploration and development and utilization of natural
must be construed strictly against their enjoyment by non-
resources shall be under the full control and supervision of the
Filipinos.
State.”
RA 7942 (The Philippine Mining Act) took effect on April 9, 1995.
Conspicuously absent in Section 2 is the provision in the 1935 and
Before the effectivity of RA 7942, or on March 30, 1995, the
1973 Constitutions authorizing the State to grant licenses,
President signed a Financial and Technical Assistance Agreement
concessions, or leases for the exploration, exploitation,
development or utilization of natural resources. Y such omission, provides that WMCP shall provide “all financing, technology,
the utilization of inalienable lands of public domain through management, and personnel necessary for the Mining
license, concession or lease is no longer allowed under the 1987 Operations.”
Constitution.
These contractual stipulations and related provisions in the FTAA
Under the concession system, the concessionaire makes a direct taken together, grant WMCP beneficial ownership over natural
equity investment for the purpose of exploiting a particular resources that properly belong to the State and are intended for
natural resource within a given area. The concession amounts to the benefit of its citizens. These stipulations are abhorrent to the
complete control by the concessionaire over the country’s natural 1987 Constitution. They are precisely the vices that the
resource, for it is given exclusive and plenary rights to exploit a fundamental law seeks to avoid, the evils that it aims to suppress.
particular resource at the point of extraction. Consequently, the contract from which they spring must be struck
down.
The 1987 Constitution, moreover, has deleted the phrase
“management or other forms of assistance” in the 1973 Charter.
The present Constitution now allows only “technical and financial 3) The Chief Executive is the official constitutionally mandated
assistance.” The management or operation of mining activities by to “enter into agreements with foreign owned
foreign contractors, the primary feature of service contracts was corporations.” On the other hand, Congress may review the
precisely the evil the drafters of the 1987 Constitution sought to action of the President once it is notified of “every contract
avoid. entered into in accordance with this [constitutional]
provision within thirty days from its execution.” In contrast
The constitutional provision allowing the President to enter into to this express mandate of the President and Congress in the
FTAAs is an exception to the rule that participation in the nation’s exploration, development and utilization (EDU) of natural
natural resources is reserved exclusively to Filipinos. Accordingly resources, Article XII of the Constitution is silent on the role
such provision must be construed strictly against their enjoyment of the judiciary. However, should the President and/or
by non-Filipinos. Therefore RA 7942 is invalid insofar as said act Congress gravely abuse their discretion in this regard, the
authorizes service contracts. Although the statute employs the courts may -- in a proper case -- exercise their residual duty
phrase “financial and technical agreements” in accordance with under Article VIII. Clearly then, the judiciary should not
the 1987 Constitution, its pertinent provisions actually treat these inordinately interfere in the exercise of this presidential
agreements as service contracts that grant beneficial ownership power of control over the EDU of our natural resources.
to foreign contractors contrary to the fundamental law.
Under the doctrine of separation of powers and due respect for
The underlying assumption in the provisions of the law is that the co-equal and coordinate branches of government, the Court must
foreign contractor manages the mineral resources just like the restrain itself from intruding into policy matters and must allow
foreign contractor in a service contract. By allowing foreign the President and Congress maximum discretion in using the
contractors to manage or operate all the aspects of the mining resources of our country and in securing the assistance of foreign
operation, RA 7942 has in effect conveyed beneficial ownership groups to eradicate the grinding poverty of our people and
over the nation’s mineral resources to these contractors, leaving answer their cry for viable employment opportunities in the
the State with nothing but bare title thereto. country. “The judiciary is loath to interfere with the due exercise
by coequal branches of government of their official functions.” As
The same provisions, whether by design or inadvertence, permit a aptly spelled out seven decades ago by Justice George Malcolm,
circumvention of the constitutionally ordained 60-40% “Just as the Supreme Court, as the guardian of constitutional
capitalization requirement for corporations or associations rights, should not sanction usurpations by any other department
engaged in the exploitation, development and utilization of of government, so should it as strictly confine its own sphere of
Philippine natural resources. influence to the powers expressly or by implication conferred on it
by the Organic Act.” Let the development of the mining industry
When parts of a statute are so mutually dependent and be the responsibility of the political branches of government. And
connected as conditions, considerations, inducements or let not the Court interfere inordinately and unnecessarily. The
compensations for each other as to warrant a belief that the Constitution of the Philippines is the supreme law of the land. It is
legislature intended them as a whole, then if some parts are the repository of all the aspirations and hopes of all the people.
unconstitutional, all provisions that are thus dependent,
conditional or connected must fall with them. The Constitution should be read in broad, life-giving strokes. It
should not be used to strangulate economic growth or to serve
Under Article XII Section 2 of the 1987 Charter, foreign owned narrow, parochial interests. Rather, it should be construed to
corporations are limited only to merely technical or financial grant the President and Congress sufficient discretion and
assistance to the State for large scale exploration, development reasonable leeway to enable them to attract foreign investments
and utilization of minerals, petroleum and other mineral oils. and expertise, as well as to secure for our people and our
posterity the blessings of prosperity and peace. The Court fully
sympathize with the plight of La Bugal B’laan and other tribal
2) The FTAA between WMCP and the Philippine government is groups, and commend their efforts to uplift their communities.
likewise unconstitutional since the agreement itself is a However, the Court cannot justify the invalidation of an otherwise
service contract. constitutional statute along with its implementing rules, or the
nullification of an otherwise legal and binding FTAA contract. The
Section 1.3 of the FTAA grants WMCP, a fully foreign owned Court believes that it is not unconstitutional to allow a wide
corporation, the “exclusive right to explore, exploit, utilize and degree of discretion to the Chief Executive, given the nature and
dispose of all minerals and by-products that may be produced complexity of such agreements, the humongous amounts of
from the contract area.” Section 1.2 of the same agreement capital and financing required for large-scale mining operations,
the complicated technology needed, and the intricacies of Development. BFD issued a Prospecting Permit to MMC covering
international trade, coupled with the State’s need to maintain an area within theforest reserve under Proclamation No. 369. The
flexibility in its dealings, in order to preserve and enhance our permit embraced the areas claimed by Apex and the
country’s competitiveness in world markets. On the basis of this other individual mining claimants. MMC filed before the BMG a
control standard, the Court upholds the constitutionality of the Petition for the Cancellation of the MiningClaims of Apex and
Philippine Mining Law, its Implementing Rules and Regulations -- Small Scale Mining Permits.
insofar as they relate to financial and technical agreements -- as
well as the subject Financial and Technical Assistance Agreement MMC alleged that the areas covered by its EP 133 and the mining
claims of Apex were within an established and existing forest
reservation. Apex filed a motion to dismiss MMC¶s petition
alleging that its mining claims are not within any established or
Separate Opinion of Justice Panganiban proclaimed forest reserve, and as such, the acquisition of mining
rights thereto must be undertaken via registration of DOL with the
The FTAA is now to be implemented by a Filipino corporation, BMG and not through the filing of application for permit
therefore the Court can no longer declare it unconstitutional. The to prospect with the BFD. However, Supreme Court rendered a
CA case is a dispute between two Filipino corporations (Sagittarius Decision against Apex holding that the disputed area is a forest
and Lepanto) both claiming the right to purchase the foreign reserve; hence, the proper procedure in acquiring mining rights
shares in WMCP. Regardless of which side eventually prevails, the therein is by initially applying for a permit to prospect with the
FTAA would still be in the hands of a qualified Filipino firm. The BFD and not through a registration of DOL with the BMG. DENR
present Constitution, moreover, does not limit foreign issued Department Administrative Order No. 66 declaring areas
participation in the exploration, development and utilization of covered by the Agusan-Davao-Surigao Forest Reserve as non-
minerals, petroleum and mineral oils to financial or technical forest lands and open to small-scale mining purposes.
assistance. The drafters’ choice of words and excerpts from
deliberations of the Constitutional Commission reveal that the A portion of thecontested area open to small scale miners, several
present Charter did not limit to financial or technical assistance mining entities filed applications for Mineral Production Sharing
the participation of foreign corporations in the large-scale Agreement. Monkayo Integrated Small Scale Miners Association
exploration, development, and utilization of minerals, petroleum (MISSMA) filed an MPSA application which was denied by the
and mineral oils. BMG on the grounds that the area applied for is within the area
The drafters’ use of the phrase “agreements xxx involving xxx covered by MMC EP 133and that the MISSMA was not qualified to
technical or financial assistance” – in Article XII Section 2 of the apply for an MPSA.MMC assigned EP 133 to Southeast Mindanao
1987 Charter does not absolutely show intent to exclude other Gold Mining Corporation. BMG accepted and registered SEMs
modes of assistance. “Rather the phrase signifies the possibility of MPSA application and the Deed of Assignment over EP 133
the inclusion of other activities, provided they bear some executed in its favor by MMC.SEM¶s application was designated
reasonable relationship to and compatibility with financial or MPSA Application No. 128 (MPSAA 128).The PA rendered a
technical assistance.” If the drafters intended to strictly confine resolution that EP 133 was valid and subsisting. It also declared
foreign corporations to financial or technical assistance only, they that the BMG Director, under Section 99 of the Consolidated
would have employed “restrictive” or “stringent” language. Mines Administrative Order implementing Presidential Decree No.
463, was authorized to issue exploration permits and to renew
Excerpts from then deliberations of the Constitutional the same without limit. The validity of Ex loration Permit No. 133
Commission likewise show that its members discussed “technical was reiterated and all the adverse claims against MPSAA No.128
or financial assistance agreements” in the same breath as “service are DISMISSED.
contracts” and used the terms interchangeably. The members of
the Concom actually had in mind the Marcos-era service contracts Undaunted by the PA ruling, the adverse claimants appealed to
that they were more familiar with (but which they duly modified the Mines Adjudication Board. In aDecision, the MAB considered
and restricted so as to prevent present abuses), when they were erroneous the dismissal by the PA of the adverse claims filed
crafting and polishing the provisions dealing with financial and/or againstMMC and SEM over a mere technicality of failure to submit
technical assistance agreements. a sketch plan. It argued that the rules of procedure are not meant
to defeat substantial justice as the former are merely secondary in
The Concom discussions in their entirely had to do with service importance to the latter. Dealing with the question on EP 133¶s
contracts that might be given to foreign-owned corporations as validity, the MAB opined that said issue was not crucial and was
exceptions to the general principle of Filipino control of the irrelevant in adjudicating the appealed case because EP 133 has
economy long expired due to its non-renewal and that the holder of the
same, MMC, was no longer a claimant of the Agusan-Davao-
Surigao Forest Reserve having relinquished its right to SEM. After
APEX MINING CO., INC. vs. SOUTHEAST MINDANAO GOLD it brushed aside the issue of the validity of EP133 for being
MINING CORP irrelevant, the MAB proceeded to treat SEM¶s MPSA application
over the disputed area asan entirely new and distinct application.
Proclamation No. 369 was issued to establish the Agusan-Davao- It approved the MPSA application, excluding the area
Surigao Forest Reserve.Camilo Banad and his group, who claimed segregated by DAO No. 66, which declared 729 hectares within
to have first discovered traces of gold in Mount Diwata, filed the Diwalwal area as non-forest lands open for small-scale mining.
aDeclaration of Location for six mining claims in the
area. Apex Mining Corporation entered intooperating agreements Dissatisfied, the Villaflor group and Balite appealed the decision to
with Banad and his group.Marcopper Mining Corporation filed this Court. SEM, aggrieved by the exclusion of 729 hectares from
mining claims for areas adjacent to the area covered by the DOL its MPSA application, likewise appealed. Apex filed a Motion for
of Banad and his group. MMC abandoned the claims and instead Leave to Admit Petition for Intervention predicated on its right to
applied for a prospecting permit with theBureau of Forest stake its claim over the Diwalwal gold rush which was granted by
the Court. These cases, however, were remanded to the Court of The MTC ruled that as far as the 3 laws are concerned, only the
Appeals for proper disposition pursuant to Rule 43 of the 1997 Information for violation of Philippine Mining Act should be
Rules of Civil Procedure. The Court of Appeals consolidated the maintained. Thus, the Informations for violation of Anti-Pollution
remanded cases as CA-G.R. SP No. 61215 and No. 61216.The Law and the Water Code should be dismissed because the
Court of Appeals affirmed in toto the decision of the PA and elements constituting the aforesaid violations are absorbed by the
declared null and void the MAB decision. Hence, the instant same elements which constitute violation of the Philippine Mining
Petitions for Review on Certiorari under Rule 45 of the Rules of Act. The RTC reversed the said decision and ruled that there can
Court filed by Apex, Balite and MAB. During the pendency of these be no absorption by one offense of the three other offenses, as
Petitions, President Gloria Macapagal-Arroyo issued Proclamation the acts penalized by these laws are separate and distinct from
No. 297.This proclamation excluded an area of 8,100 hectares each other. This was affirmed by the CA.
located in Monkayo, Compostela Valley, and proclaimed the same
as mineral reservation and as environmentally critical area.
Petitioners contend that they should be charged with only one
Subsequently, DENR Administrative Order No. 2002-18 was issued
offense – Reckless Imprudence Resulting in Damage to Property
declaring an emergency situation in the Diwalwal gold rush area
— because all the charges filed against them are based on a single
and ordering the stoppage of all mining operations therein.
act or incident of polluting the Boac and Makalupnit rivers thru
Thereafter, Executive Order No. 217was issued by the President
dumping of mine tailings" and that the charge for violation of
creating the National Task Force Diwalwal which is tasked to
Article 365 of the RPC "absorbs" the other charges since the
address the situation in the Diwalwal Gold Rush Area.
element of "lack of necessary or adequate protection, negligence,
recklessness and imprudence" is common among them.
Issue
Whether the subsequent acts of the executive department such Ruling
as the issuance of Proclamation No. 297,and DAO No. 2002-18 can
outweigh Apex and Balites claims over the Diwalwal Gold Rush Court had ruled that a single act or incident might offend against
Area. two or more entirely distinct and unrelated provisions of law thus
justifying the prosecution of the accused for more than one
Held offense. The only limit to this rule is the Constitutional prohibition
that no person shall be twice put in jeopardy of punishment for
Upon the effectivity of the 1987 Constitution, the State assumed a the same offense.
more dynamic role in the exploration,development and utilization
of the natural resources of the country. With this policy, the State However, for the limited purpose of controverting petitioners’
may pursuefull control and supervision of the exploration, claim that they should be charged with one offense only, the SC
development and utilization of the country¶s naturalmineral quote with approval RTC’s comparative analysis of PD 1067, PD
resources. The options open to the State are through direct 984, RA 7942, and Article 365 of the RPC showing that in each of
undertaking or by entering into co- production, joint venture, or these laws on which petitioners were charged, there is one
production-sharing agreements, or by entering into agreement essential element not required of the others, thus:
with foreign-owned corporations for large-scale exploration,
development and utilization. Recognizing the importance of the In P.D. 1067 (Philippines Water Code), the additional element to
country’s natural resources, not only for national economic be established is the dumping of mine tailings into the Makulapnit
development, but also for its security and national defense, River and the entire Boac River System without prior permit from
Section 5 of Republic Act No. 7942 empowers the President, when the authorities concerned. The gravamen of the offense here is
the national interest so requires, to establish mineral reservations the absence of the proper permit to dump said mine tailings. This
where mining operations shall be undertaken directly by the State element is not indispensable in the prosecution for violation of PD
or through a contractor 984 (Anti-Pollution Law), [RA] 7942 (Philippine Mining Act) and
Art. 365 of the Revised Penal Code. One can be validly prosecuted
for violating the Water Code even in the absence of actual
Loney vs. People of the Philippines pollution, or even if it has complied with the terms of its
Environmental Compliance Certificate, or further, even if it did
Petitioners are officers of Marcopper Mining Corp., engaged in take the necessary precautions to prevent damage to property.
mining in the province of Marinduque. Marcopper had been
storing tailings from its operation in a pit in Mt. Taipan, at the In P.D. 984 (Anti-Pollution Law), the additional fact that must be
base of which ran a drainage leading to Boac and Makalupnit proved is the existence of actual pollution. The gravamen is the
rivers. Consequently, Marcopper had discharged millions of tons pollution itself. In the absence of any pollution, the accused must
of tailings into the rivers. be exonerated under this law although there was unauthorized
dumping of mine tailings or lack of precaution on its part to
prevent damage to property.
In August 1996, the DOJ charged petitioners with violation of the
Water Code of the Philippines, the National Pollution Control
In R.A. 7942 (Philippine Mining Act), the additional fact that must
Decree, Philippine Mining Act and RPC for Reckless Imprudence
be established is the willful violation and gross neglect on the part
Resulting in Damage to Property. Petitioners moved to quash the
of the accused to abide by the terms and conditions of the
information on grounds that these were “duplicitous” as DOJ
Environmental Compliance Certificate, particularly that the
charged more than one offense for a single act and that the
Marcopper should ensure the containment of run-off and silt
Informations contain allegations which constitute legal excuse or
materials from reaching the Mogpog and Boac Rivers. If there was
justification.
no violation or neglect, and that the accused satisfactorily proved
[sic] that Marcopper had done everything to ensure containment
of the run-off and silt materials, they will not be liable. It does not
follow, however, that they cannot be prosecuted under the Water
Code, Anti-Pollution Law and the Revised Penal Code because
violation of the Environmental Compliance Certificate is not an
essential element of these laws.
Section 3. Definitions.
(a) Public forest is the mass of lands of the public domain which
has not been the subject of the present system of classification for
the determination of which lands are needed for forest purposes
and which are not.
(d) Forest lands include the public forest, the permanent forest or
forest reserves, and forest reservations.
(j) Marine parks refers to any off-shore area inhabited by rare and
unique species of marine flora and fauna.
(k) Seashore park refers to any public shore area delimited for and forest cover for the protection and conservation of soil and
outdoor recreation, sports fishing, water skiing and related water.
healthful activities.
(x) Seed tree system is partial clearcutting with seed trees left to
(l) Watershed reservation is a forest land reservation established regenerate the area.
to protect or improve the conditions of the water yield thereof or
reduce sedimentation.
(y) Healthy residual is a sound or slightly injured tree of the
commercial species left after logging.
(m) Watershed is a land area drained by a stream or fixed body of
water and its tributaries having a common outlet for surface run-
(z) Sustained-yield management implies continuous or periodic
off.
production of forest products in a working unit with the aid of
achieving at the earliest practicable time an approximate balance
(n) Critical watershed is a drainage area of a river system between growth and harvest or use. This is generally applied to
supporting existing and proposed hydro-electric power and the commercial timber resources and is also applicable to the
irrigation works needing immediate rehabilitation as it is being water, grass, wildlife, and other renewable resources of the
subjected to a fast denudation causing accelerated erosion and forest.
destructive floods. It is closed from logging until it is fully
rehabilitated.
(aa) Processing plant is any mechanical set-up, machine or
combination of machine used for the processing of logs and other
(o) Mangrove is a term applied to the type of forest occurring on forest raw materials into lumber, veneer, plywood, wallboard,
tidal flat along the sea coast, extending along streams where the block-board, paper board, pulp, paper or other finished wood
water is brackish. products.
(p) Kaingin is a portion of the forest land, whether occupied or (bb) Lease is a privilege granted by the State to a person to occupy
not, which is subjected to shifting and/or permanent slash-and- and possess, in consideration of a specified rental, any forest land
burn cultivation having little or no provision to prevent soil of the public domain in order to undertake any authorized activity
erosion. therein.
(q) Forest product means timber, pulpwood, firewood, bark, tree (cc) License is a privilege granted by the State to a person to
top, resin, gum, wood, oil, honey, beeswax, nipa, rattan, or other utilize forest resources as in any forest land, without any right of
forest growth such as grass, shrub, and flowering plant, the occupation and possession over the same, to the exclusion of
associated water, fish, game, scenic, historical, recreational and others, or establish and operate a wood-processing plant, or
geologic resources in forest lands. conduct any activity involving the utilization of any forest
resources.
(r) Dipterocarp forest is a forest dominated by trees of the
dipterocarp species, such as red lauan, tengile, tiaong, white (dd) License agreement is a privilege granted by the State to a
lauan, almon, bagtikan and mayapis of the Philippine mahogany person to utilize forest resources within any forest land with the
group, apitong and the yakals. right of possession and occupation thereof to the exclusion of
others, except the government, but with the corresponding
obligation to develop, protect and rehabilitate the same in
(s) Pine forest is a forest composed of the Benguet Pine in the
accordance with the terms and conditions set forth in said
Mountain Provinces or the Mindoro pine in Mindoro and
agreement.
Zambales provinces.
CHAPTER I
Section 9. Rules and Regulations. The Department Head, upon the
ORGANIZATION AND JURISDICTION OF THE BUREAU
recommendation of the Director of Forest Development, shall
promulgate the rules and regulations necessary to implement
Section 4. Creation of, and merger of all forestry agencies into, effectively the provisions of this Code.
the Bureau of Forest Development. For the purpose of
implementing the provisions of this Code, the Bureau of Forestry,
Section 10. Creation of Functional Divisions, and Regional and
the Reforestation Administration, the Southern Cebu
District Offices. All positions in the merged agencies are
Reforestation Development Project, and the Parks and Wildlife
considered vacant. Present occupants may be appointed in
Office, including applicable appropriations, records, equipment,
accordance with a staffing pattern or plan of organization to be
property and such personnel as may be necessary, are hereby
prepared by the Director and approved by the Department Head.
merged into a single agency to be known as the Bureau of Forest
Any appointee who fails to report for duty in accordance with the
Development, hereinafter referred to as the Bureau.
approved plan within thirty (30) days upon receipt of notification
shall be deemed to have declined the appointment, in which case
Section 5. Jurisdiction of Bureau. The Bureau shall have the position may be filed by any other qualified applicant.
jurisdiction and authority over all forest land, grazing lands, and
all forest reservations including watershed reservations presently
For the efficient and effective implementation of the program of
administered by other government agencies or instrumentalities.
the Bureau, the following divisions and sections are hereby
created, to wit:
It shall be responsible for the protection, development,
management, regeneration, and reforestation of forest lands; the
The Department Head may, upon recommendation of the
regulation and supervision of the operation of licensees, lessees
Director, reorganize or create such other divisions, sections of
and permittees for the taking or use of forest products therefrom
units as may be deemed necessary and to appoint the personnel
or the occupancy or use thereof; the implementation of multiple
there: Provided, That an employee appointed or designated as
use and sustained yield management in forest lands; the
officer-in-charge of a newly created division, section or unit, or to
protection, development and preservation of national parks,
an existing vacant position with a higher salary, shall receive, from
marine parks, game refuges and wildlife; the implementation of
the date of such appointment or designation until he is replaced
measures and programs to prevent kaingin and managed
or reverted to his original position, the salary corresponding to
occupancy of forest and grazing lands; in collaboration with other
the position temporarily held by him.
bureaus, the effective, efficient and economic classification of
lands of the public domain; and the enforcement of forestry,
reforestation, parks, game and wildlife laws, rules, and There shall be created at least eleven regional offices. In each
regulations. region, there shall be as many forest districts as may be
necessary, in accordance with the extent of forest area,
established work loads, need for forest protection, fire prevention
The Bureau shall regulate the establishment and operation of
and other factors, the provisions of any law to the contrary
sawmills, veneer and plywood mills and other wood processing
notwithstanding: Provided, That the boundaries of such districts
plants and conduct studies of domestic and world markets of
shall follow, whenever possible, natural boundaries of watersheds
forest products.
under the river-basin concept of management.
Section 11. Manpower Development. The Bureau shall establish Lands eighteen per cent (18%) in slope or over which have already
and operate an in-service training center for the purpose of been declared as alienable and disposable shall be reverted to the
upgrading and training its personnel and new employees. classification of forest lands by the Department Head, to form
part of the forest reserves, unless they are already covered by
existing titles or approved public land application, or actually
The Bureau shall also set aside adequate funds to enable
occupied openly, continuously, adversely and publicly for a period
personnel to obtain special education and training in local or
of not less than thirty (30) years as of the effectivity of this Code,
foreign colleges or institutions.
where the occupant is qualified for a free patent under the Public
Land Act: Provided, That said lands, which are not yet part of a
Section 12. Performance Evaluation. The Bureau shall devise a well-established communities, shall be kept in a vegetative
system, to be approved by the Department Head, to evaluate the condition sufficient to prevent erosion and adverse effects on the
performance of its employees. The system shall measure lowlands and streams: Provided, further, That when public
accomplishment in quantity and quality of performance as related interest so requires, steps shall be taken to expropriate, cancel
to the funded program of work assigned to each organizational defective titles, reject public land application, or eject occupants
unit. There shall be included a system of periodic inspection of thereof.
district offices by the regional offices and the regional and district
offices by the Central Office in both functional fields and in the
Section 16. Areas needed for forest purposes. The following lands,
overall assessment of how each administrative unit has
even if they are below eighteen per cent (18%) in slope, are
implemented the laws, regulations, policies, programs, and
needed for forest purposes, and may not, therefore, be classified
practices relevant to such unit. The evaluation system shall
as alienable and disposable land, to wit:
provide the information necessary for annual progress reports
and determination of employee training civil service awards and
transfer or disciplinary action. 1. Areas less than 250 hectares which are far from, or
are not contiguous with, any certified alienable and
disposable land;
CHAPTER II
CLASSIFICATION AND SURVEY
2. Isolated patches of forest of at least five (5) hectares
with rocky terrain, or which protect a spring for
Section 13. System of Land Classification. The Department Head
communal use;
shall study, devise, determine and prescribe the criteria,
guidelines and methods for the proper and accurate classification
and survey of all lands of the public domain into agricultural, 3. Areas which have already been reforested;
industrial or commercial, residential, resettlement, mineral,
timber or forest, and grazing lands, and into such other classes as
4. Areas within forest concessions which are timbered
now or may hereafter be provided by law, rules and regulations.
or have good residual stocking to support an existing,
or approved to be established, wood processing plant;
In the meantime, the Department Head shall simplify through
inter-bureau action the present system of determining which of
5. Ridge tops and plateaus regardless of size found
the unclassified lands of the public domain are needed for forest
within, or surrounded wholly or partly by, forest lands
purposes and declare them as permanent forest to form part of
where headwaters emanate;
the forest reserves. He shall decree those classified and
determined not to be needed for forest purposes as alienable and
disposable lands, the administrative jurisdiction and management 6. Appropriately located road-rights-or-way;
of which shall be transferred to the Bureau of Lands: Provided,
That mangrove and other swamps not needed for shore 7. Twenty-meter strips of land along the edge of the
protection and suitable for fishpond purposes shall be released to, normal high waterline of rivers and streams with
and be placed under the administrative jurisdiction and channels of at least five (5) meters wide;
management of, the Bureau of Fisheries and Aquatic Resources.
Those still to be classified under the Present system shall continue
to remain as part of the public forest. 8. Strips of mangrove or swamplands at least twenty
(20) meters wide, along shorelines facing oceans,
lakes, and other bodies of water, and strips of land at
Section 14. Existing Pasture Leases and Permits in Forest least twenty (20) meters wide facing lakes;
Lands. Forest lands which have been the subject of pasture leases
and permits shall remain classified as forest lands until classified
as grazing lands under the criteria, guidelines and methods of 9. Areas needed for other purposes, such as national
classification to be prescribed by the Department Head: Provided, parks, national historical sites, game refuges and
That the administration, management and disposition of grazing wildlife sanctuaries, forest station sites, and others of
lands shall remain under the Bureau. public interest; and
Section 15. Topography. No land of the public domain eighteen 10. Areas previously proclaimed by the President as
per cent (18%) in slope or over shall be classified as alienable and forest reserves, national parks, game refuge, bird
disposable, nor any forest land fifty per cent (50%) in slope or sanctuaries, national shrines, national historic sites:
over, as grazing land.
Provided, That in case an area falling under any of the foregoing
categories shall have been titled in favor of any person, steps shall
be taken, if public interest so requires, to have said title cancelled silvicultural and harvesting systems that will promote optimum
or amended, or the titled area expropriated. sustained yield shall be practised.
Section 17. Establishment of boundaries of forest lands. All (a) For dipterocarp forest, selective logging shall be
boundaries between permanent forests and alienable and practised.
disposable lands shall be clearly marked and maintained on the
ground, with infrastructure or roads, or concrete monuments at
(b) For pine forest, the seed tree system with planting
intervals of not more than five hundred (500) meters in
when necessary shall be practised.
accordance with established procedures and standards, or any
other visible and practicable signs to insure protection of the
forest. (c) For other types of forest, the silvicultural and
harvesting system that will be found suitable by
research shall be applied. Meanwhile, a system based
Section 18. Reservations in forest lands and off-shore areas. The
on observation and practices abroad may be adopted
President of the Philippines may establish within any lands of the
initially.
public domain, forest reserve and forest reservation for the
national park system, for preservation as critical watersheds, or
for any other purpose, and modify boundaries of existing ones. Any practised system are subject to modification or changes
The Department Head may reserve and establish any portion of based on research findings.
the public forest or forest reserve as site or experimental forest
for use of the Forest Research Institute. Section 23. Timber inventory. The Bureau shall conduct a program
of progressive inventories of the harvestable timber and young
When public interest so requires, any off-shore area needed for trees in all forest lands, whether covered by any license
the preservation and protection of its educational, scientific, agreement, license, lease or permit, or not, until a one hundred
historical, ecological and recreational values including the marine per cent (100%) timber inventory thereon has been achieved.
life found therein, shall be established as marine parks.
Section 24. Required inventory prior to timber utilization in forest
CHAPTER III lands. No harvest of timber in any forest land shall be allowed
UTILIZATION AND MANAGEMENT unless it has been the subject of at least a five per cent (5%)
timber inventory, or any statistically sound timber estimate, made
not earlier than five (5) years prior to the issuance of a license
Section 19. Multiple use. The numerous beneficial uses of the
agreement or license allowing such utilization.
timber, land, soil, water, wildlife, recreation value and grass of
forest lands shall be evaluated and weighted before allowing the
utilization, exploitation, occupation or possession thereof, or the Section 25. Cutting cycle. The Bureau shall apply scientific cutting
conduct of any activity therein. cycle and rotation in all forest lands, giving particular
consideration to the age, volume and kind of healthy residual
trees which may be left undisturbed and undamaged for future
Only the utilization, exploitation, occupation or possession of any
harvest and forest cover indipterocarp area, and seed trees and
forest land, or any activity therein, involving one or more or its
reproduction in pine area.
resources, which will produce the optimum benefits to the
development and progress of the country and the public welfare,
without impairment or with the least injury to its other resources, Section 26. Annual allowable cut. The annual allowable cut of any
shall be allowed. particular forest land shall be determined on the basis of the
established rotation and cutting cycle thereof, and the volume
and kind of harvestable timber and healthy residuals, seed trees
All forest reservations may be open to uses not inconsistent with
and reproduction found therein.
the principal objectives of the reservation: Provided, That critical
watersheds and national parks shall not be subject to logging
operations. Section 27. Duration of license agreement or license to harvest
timber in forest lands. The duration of the privilege to harvest
timber in any particular forest land under a license agreement or
Section 20. License agreement, license, lease or permit. No person
license shall be fixed and determined in accordance with the
may utilize, exploit, occupy, possess or conduct any activity within
annual allowable cut therein, the established cutting cycle
any forest land, or establish and operate any wood-processing
thereof, the yield capacity of harvestable timber, and the capacity
plant, unless he has been authorized to do so under a license
of healthy residuals for a second growth.
agreement, lease, license, or permit.
A. TIMBER
The maximum period of any privilege to harvest timber is twenty-
five (25) years, renewable for a period, not exceeding twenty-five
Section 22. Silvicultural and harvesting systems. In any logging (25) years, necessary to utilize all the remaining commercial
operations in production forests within forest lands, the proper
quantity or harvestable timber either from the unlogged or Section 32. Log production and processing. Unless otherwise
logged-over area. decreed by the President, upon recommendation of the National
Economic Development Authority, the entire production of logs
by all licensees shall, beginning January 1, 1976, be processed
It shall be a condition for the continued privilege to harvest
locally.
timber under any license or license agreement that the licensee
shall reforest all the areas which shall be determined by the
Bureau. A licensee who has no processing plant may, subject to the
approval of the Director, enter into a contract with a wood
processor for the processing of his logs. Wood processors shall
Section 28. Size of forest concessions. Forest lands shall not be
accept for processing only logs cut by, or purchased from,
held in perpetuity.
licensees of good standing at the time of the cutting of logs.
The size of the forest lands which may be the subject of timber
C. REFORESTATION
utilization shall be limited to that which a person may effectively
utilize and develop for a period of fifty (50) years, considering the
cutting cycle, the past performance of the applicant and his Section 33. Forest lands to be reforested. The following shall be
capacity not only to utilize but, more importantly, to protect and reforested and covered with suitable and sufficient trees, to wit:
manage the whole area, and the requirements of processing
plants existing or to be installed in the region.
(a) Bare or grass-covered tracts of forest lands with at least fifty
per cent (50%) slope;
Forest concessions which had been the subject of consolidations
shall be reviewed and re-evaluated for the effective
(b) Bare or grass-covered tracts of forest lands with less than fifty
implementation of protection, reforestation and management
per cent (50%) slope, but with soil so highly erodible as to make
thereof under the multiple use and sustained yield concepts, and
grass cover inadequate for soil erosion control;
for the processing locally of the timber resources therefrom.
(b) No rental shall be collected during the first five (5) years from The Department Head may provide other incentives in addition to
the date of the lease; from the sixth year to the tenth year, the those hereinabove granted to promote industrial tree plantation
annual rental shall be fifty centavos (P0.50) per hectare; and and tree farms in special areas such as, but not limited to, those
thereafter, the annual rental shall be one peso (P1.00) per where there are no roads or where roads are inadequate, or areas
hectare: Provided, That lessees of areas long denuded as certified with rough topography and remote areas far from processing
by the Director and approved by the Department Head, shall be plants.
exempted from the payment of rental for the full term of the
lease which shall not exceed twenty-five (25) years; for the first
All amounts collected under this section shall accrue to a special
five (5) years following the renewal of the lease, the annual rental
deposit of the Bureau to be used for reforestation of critical
shall be fifty centavos (P0.50) per hectare; and thereafter, the
watersheds or degraded areas and other development activities,
annual rental shall be one peso (P1.00) per hectare.
over and above the general appropriation of the said Bureau.
(c) The lessee shall pay forest charges on the timber and other
D. FOREST PROTECTION
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 37. Protection of all resources. All measures shall be taken
to protect the forest resources from destruction, impairment and
depletion.
(d) Sale at cost of seedlings and free technical advice and
assistance to persons who will develop their privately-owned
lands into industrial tree plantation or tree farm; Section 38. Control of concession area. In order to achieve the
effective protection of the forest lands and the resources thereof
from illegal entry, unlawful occupation, kaingin, fire, insect
(e) Exemption from the payment of the percentage tax levied in
infestation, theft, and other forms of forest destruction, the
Title V of the National Internal Revenue Code when the timber
utilization of timber therein shall not be allowed except through
and forest products are sold, bartered or exchanged by the lessee
license agreements under which the holders thereof shall have
whether in their original state or not;
the exclusive privilege to cut all the allowable harvestable timber typhoons, shall be maintained and shall not be alienated. Such
in their respective concessions, and the additional right of strips must be kept from artificial obstruction so that flood water
occupation, possession, and control over the same, to the will flow unimpeded to the sea to avoid flooding or inundation of
exclusive of all others, except the government, but with the cultivated areas in the upstream.
corresponding obligation to adopt all the protection and
conservation measures to ensure the continuity of the productive
All mangrove swamps set aside for coast-protection purposes
condition of said areas, conformably with multiple use and
shall not be subject to clear-cutting operation.
sustained yield management.
Section 40. Timber inventory in other lands containing standing or Forest officers are authorized to administer oath and take
felled timber. The Bureau shall conduct a one hundred per cent acknowledgment in official matters connected with the functions
(100%) timber inventory in alienable and disposable lands and of their office, and to take testimony in official investigations
civil reservations immediately upon classification or reservation conducted under the authority of this Code and the implementing
thereof. rules and regulations.
No harvest of standing or felled timber in alienable and disposable Section 46. Scaling stations. In collaboration with appropriate
lands, private lands, civil reservation, and all other lands, including government agencies, the Bureau shall establish control or scaling
those under the jurisdiction of other government agencies, shall stations at suitably located outlets of timber and other forest
be allowed unless a one hundred per cent (100%) timber products to insure that they were legally cut or harvested.
inventory has been conducted thereon.
Section 47. Mining operations. Mining operations in forest lands
Section 41. Sworn timber inventory reports. All reports on timber shall be regulated and conducted with due regard to protection,
inventories of forest lands, alienable and disposable lands, private development and utilization of other surface resources.
lands, civil reservations, and all lands containing standing or felled
timber must be subscribed and sworn to by all the forest officers Location, prospecting, exploration, utilization or exploitation of
who conducted the same. mineral resources in forest reservations shall be governed by
Mining laws, rules and regulations. No location, prospecting,
Section 42. Participation in the development of alienable and exploration, utilization, or exploitation of mineral resources inside
disposable lands and civil reservations. The privilege to harvest forest concessions shall be allowed unless proper notice has been
timber in alienable and disposable lands and civil reservations served upon the licensees thereof and the prior approval of the
shall be given to those who can best help in the delineation and Director, secured.
development of such areas in accordance with the management
plan of the appropriate government exercising jurisdiction over Mine tailings and other pollutants affecting the health and safety
the same. of the people, water, fish, vegetation, animal life and other
surface resources, shall be filtered in silt traps or other filtration
The extent of participation shall be based on the amount of devices and only clean exhausts and liquids shall be released
timber which may be harvested therefrom. therefrom.
Section 43. Swamplands and mangrove forests. Strips of Surface-mined areas shall be restored to as near its former
mangrove forest bordering numerous islands which protect the natural configuration or as approved by the Director prior to its
shoreline, the shoreline roads, and even coastal communities abandonment by the mining concern.
from the destructive force of the sea during high winds and
Section 48. Mineral Reservations. Mineral reservations which are determine and define which lands may be the subject of
not the subject of mining operations or where operations have occupancy and prescribed therein, an agro-forestry development
been suspended for more than five (5) years shall be placed under program.
forest management by the Bureau.
Occupants shall undertake measures to prevent and protect
Mineral reservations where mining operations have been forest resources.
terminated due to the exhaustion of its minerals shall revert to
the category of forest land, unless otherwise reserved for other
Any occupancy in forest land which will result in sedimentation,
purposes.
erosion, reduction in water yield and impairment of other
resources to the detriment of community and public interest shall
Section 49. Roads and other infrastructure. Roads and other not be allowed.
infrastructure in forest lands shall be constructed with the least
impairment to the resource values thereof.
In areas above 50% in slope, occupation shall be conditioned upon
the planting of desirable trees thereon and/or adoption of other
Government agencies undertaking the construction of roads, conservation measures.
bridges, communications, and other infrastructure and
installations inside forest lands, shall coordinate with the Bureau,
Section 52. Census of kaingineros, squatters, cultural minorities
especially if it will involve the utilization or destruction of timber
and other occupants and residents in forest lands. Henceforth, no
and/or other forest resources, or watershed disturbance therein,
person shall enter into forest lands and cultivate the same
in order to adopt measures to avoid or reduce damage or injury to
without lease or permit.
the forest resource values.
Where roads are utilized by more than one commercial forest Section 54. Pasture in forest lands. No forest land 50% in slope or
user, the Bureau shall prescribe the terms and conditions of joint over may be utilized for pasture purposes.
use including the equitable sharing of construction and/or
maintenance costs, and of the use of these roads by other parties Forest lands which are being utilized for pasture shall be
and the collection of such fees as may be deemed necessary. maintained with sufficient grass cover to protect soil, water and
other forest resources.
Section 50. Logging roads. There shall be indiscriminate
construction of logging roads. If grass cover is insufficient, the same shall be supplemented with
trees or such vegetative cover as may be deemed necessary.
Such roads shall be strategically located and their widths
regulated so as to minimize clear-cutting, unnecessary damage or The size of forest lands that may be allowed for pasture and other
injury to healthy residuals, and erosion. Their construction must special uses shall be determined by rules and regulations, any
not only serve the transportation need of the logger but, most provision of law to the contrary notwithstanding.
importantly, the requirement to save as many healthy residuals as
possible during cutting and hauling operations.
Section 55. Wildlife. Wildlife may be destroyed, killed, consumed,
eaten or otherwise disposed of, without the necessity of permit,
Section 51. Management of occupancy in forest lands. Forest
occupancy shall henceforth be managed. The Bureau shall study,
for the protection of life, health, safety and property, and the qualifications and none of the disqualifications to hold a license
convenience of the people. agreement, license, lease or permit; there is no evidence that
such transfer or conveyance is being made for purposes of
speculation; and the transferee shall assume all the obligations of
However, the Director may regulate the killing and destruction of
the transferor.
wildlife in forest lands in order to maintain an ecological balance
of flora and fauna.
The transferor shall forever be barred from acquiring another
license agreement, license, lease or permit.
Section 56. Recreation. The Bureau shall, in the preparation of
multiple-use management plans, identify and provide for the
protection of scenic areas in all forest lands which are potentially Section 62. Service contracts. The Department Head, may in the
valuable for recreation and tourism, and plan for the national interest, allow forest products licensees, lessees, or
development and protection of such areas to attract visitors permittees to enter into service contracts for financial, technical,
thereto and meet increasing demands therefor. management, or other forms of assistance, in consideration of a
fee, with any foreign person or entity for the exploration,
development, exploitation or utilization of the forest resources,
The construction and operation of necessary facilities to
covered by their license agreements, licenses, leases or permits.
accommodate outdoor recreation shall be done by the Bureau
Existing valid and binding service contracts for financial, technical,
with the use of funds derived from rentals and fees for the
management or other forms of assistance are hereby recognized
operation and use of recreational facilities by private persons or
as such.
operators, in addition to whatever funds may be appropriated for
such purposes.
Section 63. Equity sharing. Every corporation holding a license
agreement, license, lease or permit to utilize, exploit, occupy or
Section 57. Other special uses of forest lands. Forest lands may be
possess any forest land, or conduct any activity therein, or
leased for a period not exceeding twenty-five (25) years,
establish and operate a wood-processing plant, shall within one
renewable upon the expiration thereof for a similar period, or
(1) year after the effectivity of this Code, formulate and submit to
held under permit, for the establishment of sawmills, lumber
the Department Head for approval a plan for the sale of at least
yards, timber depots, logging camps, rights-of-way, or for the
twenty percent (20%) of its subscribed capital stock in favor of its
construction of sanatoria, bathing establishments, camps, salt
employees and laborers.
works, or other beneficial purposes which do not in any way
impair the forest resources therein.
The plan shall be so implemented that the sale of the shares of
stock shall be effected by the corporation not later than the sixth
F. QUALIFICATIONS
year of its operation, or the first year of the effectivity of this
Code, if the corporation has been in operation for more than 5
Section 58. Diffusion of benefits. The privilege to utilize, exploit, years prior to such effectivity.
occupy, or possess forest lands, or to conduct any activity therein,
or to establish and operate wood-processing plants, shall be
No corporation shall be issued any license agreement, license,
diffused to as many qualified and deserving applicants as possible.
lease or permit after the effectivity of this Code, unless it submits
such a plan and the same is approved for implementation within
Section 59. Citizenship. In the evaluation of applications of the sixth year of its operation.
corporations, increased Filipino equity and participation beyond
the 60% constitutional limitation shall be encouraged. All other
The Department Head shall promulgate the necessary rules and
factors being equal, the applicant with more Filipino equity and
regulations to carry out the provisions of this section, particularly
participation shall be preferred.
on the determination of the manner of payment, factors affecting
the selling price, establishment of priorities in the purchase of the
Section 60. Financial and technical capability. No license shares of stock, and the capability of the deserving employees and
agreement, license, lease or permit over forest lands shall be laborers. The industries concerned shall extend all assistance in
issued to an applicant unless he proves satisfactorily that he has the promulgation of policies on the matter, such as the
the financial resources and technical capability not only to submission of all data and information relative to their operation,
minimize utilization, but also to practice forest protection, personnel management, and asset evaluation.
conservation and development measures to insure the
perpetuation of said forest in productive condition.
G. REGULATORY FEES
Section 65. Authority of Department Head to impose other fees. In The Court shall further order the confiscation in favor of the
addition to the fees and charges imposed under existing laws, government of the timber or forest products to cut, gathered,
rules and regulations, the Department Head is hereby authorized, collected or removed, and the machinery, equipment, implements
upon recommendation of the Director and in consultation with and tools used therein, and the forfeiture of his improvements in
representatives of the industries affected, to impose other fees the area.
for forest protection, management, reforestation, and
development, the proceeds of which shall accrue into a special
The same penalty plus cancellation of his license agreement,
deposit of the Bureau as its revolving fund for the aforementioned
lease, license or permit and perpetual disqualification from
purposes.
acquiring any such privilege shall be imposed upon any licensee,
lessee, or permittee who cuts timber from the licensed or leased
Section 66. Collection and Disbursement. The collection of the area of another, without prejudice to whatever civil action the
charges and fees above-mentioned shall be the responsibility of latter may bring against the offender.
the Director or his authorized representative. The Director shall
remit his monthly collection of fees and charges mentioned in
Section 69. Unlawful occupation or destruction of forest
Section 64 to the Treasurer of the Philippines within the first ten
lands. Any person who enters and occupies or possesses, or
(10) days of the succeeding month; Provided, That the proceeds
makes kaingin for his own private use or for others any forest land
of the collection of the fees imposed under Section 65 and the
without authority under a license agreement, lease, license or
special deposit heretofore required of licensees shall be
permit, or in any manner destroys such forest land or part
constituted into a revolving fund for such purposes and be
thereof, or causes any damage to the timber stand and other
deposited in the Philippine National Bank, as a special deposit of
products and forest growths found therein, or who assists, aids or
the Bureau. The Budget Commissioner and the National Treasurer
abets any other person to do so, or sets a fire, or negligently
shall effect the quarterly releases out of the collection accruing to
permits a fire to be set in any forest land shall, upon conviction,
the general fund upon request of the Director on the basis of a
be fined in an amount of not less than five hundred pesos
consolidated annual budget of a work program approved by the
(P500.00) nor more than twenty thousand pesos (P20,000.00) and
Department Head and the President.
imprisoned for not less than six (6) months nor more than two (2)
years for each such offense, and be liable to the payment of ten
In the case of the special deposit revolving fund, withdrawals (10) times the rental fees and other charges which would have
therefrom shall be effected by the Department Head on the basis been accrued had the occupation and use of the land been
of a consolidated annual budget prepared by the Director of a authorized under a license agreement, lease, license or permit:
work program for the specific purposes mentioned in Section 65. Provided, That in 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
Section 67. Basis of Assessment. Tree measurement shall be the
regular forest charges due on the forest products destroyed,
basis for assessing government charges and other fees on timber
without prejudice to the payment of the full cost of restoration of
cut and removed from forest lands, alienable or disposable lands,
the occupied area as determined by the Bureau.
and the civil reservations; Provided, That until such time as the
mechanics of tree measurement shall have been developed and
promulgated in rules and regulations, the present scaling method The Court shall further order the eviction of the offender from the
provided for in the National Internal Revenue Code shall be used. land and the forfeiture to the Government of all improvements
made and all vehicles, domestic animals and equipment of any
kind used in the commission of the offense. If not suitable for use
The Director may, with the approval of the Department Head,
by the Bureau, said vehicles shall be sold at public auction, the
prescribe a new method of assessment of forest products and
proceeds of which shall accrue to the Development Fund of the
collection of charges thereon based upon the result of production
Bureau.
cost and market studies undertaken by the Bureau; Provided, That
such charges shall not be lower than those now imposed.
In case the offender is a government official or employee, he shall,
in addition to the above penalties, be deemed automatically
CHAPTER IV
dismissed from office and permanently disqualified from holding
CRIMINAL OFFENSES AND PENALTIES
any elective or appointive position.
Failure to adhere to the established grading rules and standards, PD No. 1775: AMENDING SECTION EIGHTY OF PRESIDENTIAL
or any act of falsification of the volume of logs, lumber, or other DECREE NUMBERED SEVEN HUNDRED FIVE, AS AMENDED,
forest products shall be a sufficient cause for the suspension of OTHERWISE KNOWN AS THE "REVISED FORESTRY CODE OF THE
the export, sawmill, or other license or permit authorizing the PHILIPPINES."
manufacture or sale of such products for a period of not less than
two (2) years.
WHEREAS, it is of common knowledge that only few criminal
A duly accredited representative of the Bureau shall certify to the cases are being filed against violators of the forestry laws, rules
compliance by the licensees with grading rules. and regulations because of the apparent lack of manpower in the
prosecuting arm of the Bureau of Forestry Development which
predicament could not be feasibly augmented due to the present
Every dealer in lumber and other building material covered by this economic situation of the country;
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 described in the invoice. WHEREAS, it is of common knowledge that only few criminal
Any violation of this Section shall be sufficient ground for the cases are being filed against violators of the forestry laws, rules
suspension of the dealer's license for a period of not less than two and regulations because of the apparent lack of manpower in the
(2) years and, in addition thereto, the dealer shall be punished for prosecuting arm of the Bureau of Forestry Development which
each such offense by a fine of not less than two hundred pesos predicament could not be feasibly augmented due to the present
(P200.00) or the total value of the invoice, whichever is greater. economic situation of the country;
Section 80. Arrest; Institution of criminal actions. A forest officer WHEREAS, Section 80 of the "Revised Forestry Code of the
or employee of the Bureau shall arrest even without warrant any Philippines", or any other law, rule and regulation does not
person who has committed or is committing in his presence any of authorize members of the Philippine Constabulary/Integrated
the offenses defined in this Chapter. He shall also seize and National Police to file complaints against forest law violators
confiscate, in favor of the Government, the tools and equipment except when they are lawfully deputized by the Minister of
used in committing the offense, and the forest products cut, Agriculture and Natural Resources pursuant to the said Code;
gathered or taken by the offender in the process of committing
the offense. The arresting forest officer or employee shall NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
thereafter deliver within six (6) hours from the time of arrest and Philippines, by virtue of the powers vested in me by the
seizure, the offender and the confiscated forest products, tools Constitution, do hereby degree that:
and equipment to, and file the proper complaint with, the
appropriate official designated by law to conduct preliminary
investigations and file informations in court. SECTION 1. Section 80 of Presidential Decree No. 705 is amended
to read as follows:
If the arrest and seizure are made in the forests, far from the
authorities designated by law to conduct preliminary "Sec. 80. Arrest: institution of criminal actions. -
investigations, the delivery to, and filing of the complaint with,
the latter shall be done within a reasonable time sufficient for A forest officers or employee of the Bureau or any personnel of
ordinary travel from the place of arrest to the place of delivery. the Philippines Constabulary/ Integrated National Police shall
The seized products, materials and equipment shall be arrest even without warrant any person who has committed or
immediately disposed of in accordance with forestry committing in his presence any of the offenses defined in this
administrative orders promulgated by the Department Head. Chapter. He shall also seize and confiscate, in favor of the
Government, the tools and equipment used in committing the
The Department Head may deputize any member or unit of the offense, and the forest products cut, gathered or taken by the
Philippine Constabulary, police agency, barangay or barrio official, offender in the process committing the offense. The arresting
or any qualified person to protect the forest and exercise the forest officer or employee shall thereafter deliver within six (6)
power or authority provided for in the preceding paragraph. hours from the time of arrest and seizure, the offender and the
confiscated forest product, tools and equipment and file the
proper complaint with, the appropriate official designated by law
Reports and complaints regarding the commission of any of the to conduct preliminary investigation and file information in Court.
offenses defined in this Chapter, not committed in the presence of
any forest officer or employee, or any of the deputized officers or
officials, shall immediately be investigated by the forest officer If the arrest and seizure are made in the forest, far from the
assigned in the area where the offense was allegedly committed, authorities designated by the law to conduct preliminary
who shall thereupon receive the evidence supporting the report investigations, the delivery to, and filing of the complaint with,
or complaint. the latter shall be done within a reasonable time sufficient to the
place of delivery. The seized products, materials and equipment
shall be immediately disposed of in accordance with forestry NOW, THEREFORE, I GLORIA MACAPAGAL ARROYO, President of
administrative orders promulgated by the Department Head. the Republic of the Philippines, by virtue of the powers vested in
me by the Constitution, do hereby order:
The Department Head may deputized any agency, Bering or barrio
SECTION 1. Declaration of Policy. It shall be the Policy of the
official, or any qualified person to protect the forest and exercise
Government to pursue the sustainable management of forests
the power or authority provided for in the preceding paragraph.
and forestlands in watersheds. Watersheds shall be deemed as
ecosystem management units and shall be managed in a holistic,
Reports and complaints regarding the commission of any of the scientific, rights-based, technology-based and community-based
offenses defined in this Chapter, not committed in the presence of manner and observing the principles of multi-use,
any forest officer or employee, or any personnel of the Philippine decentralization and devolution, and active participation of local
Constabulary/Integrated National Police or any of the deputized government units (LGUs), synergism of economic, ecological,
officers of officials, shall immediately be investigated by the forest social and cultural objectives, and the rational utilization of all
officer assigned in the area or any personnel of the Philippine resources found therein. It shall likewise be the policy of the
Constabulary/Integrated National Police where the offense was Government to promote sound, effective and efficient, globally-
allegedly committed, who shall thereupon receive the evidence competitive and equitable forestry practices in both public and
supporting the report or complaint. If there is a prima facie private domains.
evidence to support the complaint or report the investigating
forest officer and/ or members of the Philippine SECTION 2. Guiding Principles. The pursuit of these policies shall
Constabulary/Integrated National Police shall file the necessary be guided by the following principles:
complaint with the appropriate official authorized by law to
conduct a preliminary investigation of criminal case and file an 2.1.Delineation, Classification and Demarcation of State
information in Court." Forestlands
2.4. Incentives for Enhancing Private Investments, Economic 5. Government investments in and out-sourced financing
Contribution and Global Competitiveness of Forest-Based for forest development such as the application of clean
Industries development mechanism (CDM) shall be prioritized in
favor of forestlands that serve a significantly large
1. The government shall provide a favorable and stable population such as critical watersheds and/or which
policy and investment environment-friendly forest serve to reduce poverty and inequitable access to
based industries, ensure their sustainable raw material forests such as those under CBFM and/or co-
supply and encourage value-added processing in- management by NGAs/OGAs, LGUs, industries, CSOs,
country to boost rural employment and the economy. and local communities.
1. Mechanism for proper valuation and fair and 5. Human resources development programs for all
comprehensive pricing of forest products and services, stakeholders shall be rationalized and upgraded in
including water for domestic, industrial, irrigation and support of SFM; forestry extension services by
power generation, biodiversity and eco-tourism, shall NGAs/OGAs and LGU shall be upgraded and intensified
be developed and promoted. and
undertaken with CSOs, to support CBFM, pirvate
forestry, forestry co-management enterprises, and the
development of forest-based biodiversity.
6. Forest land use plans shall be incorporated by LGUs in NOW, THEREFORE, I FIDEL V. RAMOS, President of the Philippines,
their comprehensive land use plans. National by virtue of the powers vested in me by law, do hereby order that:
Government agencies shall assist LGUs in this
endeavor.
Sec. 1. Community-based forest management (herein referred to
as CBFM) shall be the national strategy to achieve sustainable
7. Networks and linkages involved with local and forestry and social justice.
international institutions, CSOs, LGUs, and industries
involved in the promotion and practice of SFM shall be
strengthened. Sec. 2. The DENR, through its Community and Provincial
Environment and Natural Resource Offices, in coordination 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 whose livelihood
depends on the forestlands.
Sec. 9. The DENR may source local and international grants and (b) "Chain saw dealer" shall refer to a person, natural
donations for the establishment of the CBFM Special Account. or juridical, engaged in the manufacture, importation,
Other sources of fund may later be determined by the CBFM distribution, purchase and/or sale of chain saws;
Steering Committee subject to existing government regulations.
(c) "Department" shall refer to the Department of
Sec. 10. The DENR shall support and set up jointly with relevant Environment and Natural Resources; and
colleges and universities, private and public organizations,
arrangements for a community forestry training program for
(d) "Secretary" shall refer to the Secretary of the
members of participating units, such as people's organizations,
Department of Environment and Natural Resources.
non-government organizations, local government units, and other
government personnel.
Section 4. Persons Authorized to Manufacturer, Sell and Import
Chain Saws. - Chain saws shall only be sold and/or imported by
Sec. 11. Within six months after the signing of this Order, the
manufacturers, dealers and/or private owners who are duly
DENR, in consultation with government financial institutions, such
authorized by the Department.
as the Development Bank of the Philippines (DBP), the Land Bank
of the Philippines (LBP), GSIS and the SSS, shall effect the creation
of favorable financing mechanisms for access by communities and Section 5. Persons Authorized to Possess and Use a Chain Saw. -
organizations in the pursuit of the CBFM strategy and its sub- The Department is hereby authorized to issue permits to possess
strategies such as community training and empowerment, and/or use a chain saw for the felling land/or cutting of trees,
enterprise development, agroforestry development, tree timber and other forest or agro-forest products to any applicant
plantations, and other non-forest-based alternative livelihood who:
systems.
(a) has a subsisting timber license agreement,
Sec. 12. The DENR Secretary shall issue new rules, regulations, production sharing agreement, or similar agreements,
procedures, and guidelines necessary to implement this Order or a private land timber permit;
and repeal or modify existing ones consistent with the policies set
forth by the CBFM Steering Committee. (b) is an orchard and fruit tree farmer;
Sec. 13. The DENR Secretary shall, within six months from the (c) is an industrial tree farmer;
signing of this Order, submit to the Office of the President, a
National Comprehensive Community Forestry Action Plan, which
embodies the Department's short, medium and long-term plans. (d) is a licensed wood processor and the chain saw
The action plan shall be discussed and approved by the CBFM shall be used for the cutting of timber that has been
Steering Committee prior to its submission to the President. legally sold to said applicant; or
Sec. 14. All previous executive and administrative issuances which (e) shall use the chain saw for a legal purpose.
are inconsistent herewith are repealed or amended accordingly.
Agencies of the government that use chain saws in some aspects
of their functions must likewise secure the necessary permit from
the Department before operating the same.