Universityof St.

La Salle
Bacolod City, Negros Occidental, Philippines

College of Law

In partial fulfillment
Of the requirements in
Natural Resources and Environmental Law

REPORT : Quarrying and Mining

Waste Management / Sanitation / Pollution Control

Mary Anne Caete

Marianne Sheila Endriano
Jenelle Esonga
Charisse Tomaro
Re Charles Tupas

PHILIPPINE MINING ACT OF 1995 (R.A

7942)
ORGANIZATIONAL IMPLEMENTATION
The Mining Act reverts back the Mines and
Geosciences Bureau (MGB) from a Staff to
a Line Bureau. Under this arrangement,
the MGB Central Office has now the
administrative jurisdiction and
responsibility over its regional
offices. The Line Bureau structure was
contemplated to ensure organizational
efficiency and flexibility in managing
limited resources and technical expertise.
The authorities/responsibilities of the MGB
are as follows:
Management and administration of
mineral lands and resources, including the
granting of mining permits and
mineral agreements;
Enforcement and monitoring of
Environmental Work Programs (EWP) and
Environmental Protection and
Enhancement Program (EPEP);
Establishment and operationalization of
the Contingent Liability and Rehabilitation
Fund (CLRF), as well as the
mandatory Final Mine Rehabilitation and
Decommissioning Plan;
Cancel mining applications and mining
rights violating the provisions of the
Mining Act, its implementing rules and
regulations, and/or the terms and
conditions of a mining
permit/contract/agreement;
For the Regional Directors to impose
Cease-and-Desist Orders (CDO);
To deputize the PNP, LGUs, NGOs and
other responsible entities to police mining
activities;
To assist the Environmental Management
Bureau (EMB)/DENR Regional Offices in
processing/evaluation/conduct of
EIA in mining projects;

To manage and administer Mineral

Reservation area (Note: Mineral
Reservations, under the New Act, include
offshore marine areas.)
AREAS OPEN TO MINING OPERATIONS
Subject to any existing rights or
reservations and prior agreements of all
parties, all mineral resources in public or
private lands, including timber or
forestlands as defined in existing laws
shall be open to mineral agreements or
financial or technical assistance
agreement applications. Any conflict that
may arise under this provision shall be
heard and resolved by the panel of
arbitrators.
AREAS CLOSED TO THE MINING
APPLICATION
Pursuant to the Mining Act of 1995 and in
consonance with State policies and
existing laws, areas may either be
closed to mining operations, or
conditionally opened, as follows:
Areas CLOSED to mining applications:
Areas covered by valid and existing
mining rights and applications;
Old growth or virgin forests, mossy
forests, national parks,
provincial/municipal forests, tree parks,
greenbelts,
game refuge, bird sanctuaries and areas
proclaimed as marine reserve/marine
parks and sanctuaries and areas
proclaimed as marine reserve/marine
parks and tourist zones as defined by law
and identified initial components of
the NIPAS, and such areas as expressly
prohibited thereunder, as well as under
DENR Administrative Order No. 25, s.
1992, and other laws;
Areas which the Secretary may exclude
based, inter alia, or proper assessment of
their environmental impacts and
implications on sustainable land uses,
such as built-up areas and critical
watershed with appropriate

barangay/municipal/provincial Sanggunian
ordinances specifying therein the location
and specific boundaries of the
concerned area; and
Areas expressly prohibited by law.
The following areas may be opened for
mining operations, the approval of which
are subject to the following
conditions:
Military and other government
reservations, upon prior written consent
by the government agency having
jurisdiction over such areas;
Areas near or under public or private
buildings, cemeteries, and archaeological
and historic sites, bridges, highways,
waterways, railroads, reservoirs, dams and
other infrastructure projects, public or
private works, including plantations
or valuable crops, upon written consent of
the concerned government agency or
private entity, subject to technical
evaluation and validation by the MGB;
Areas covered by FTAA applications,
which shall be opened, for quarry
resources upon written consent of the
FTAA
applicants/contractors. However, mining
applications for sand and gravel shall
require no such consent;
DENR Project areas upon prior consent
from the concerned agency.
ANCESTRAL LANDS
No ancestral land shall be opened for
mining operations without the prior
consent of the indigenous cultural
community concerned. In the event of an
agreement with an indigenous cultural
community pursuant to the preceding
section, the royalty payment, upon
utilization of the minerals shall be agreed
upon by the parties. The said royalty shall
form part of a trust fund for the
socioeconomic well-being of the
indigenous cultural community.
ICC AREAS

The Mining Act fully recognizes the rights

of the Indigenous Peoples (IPs)/Indigenous
Cultural Communities (ICCs) and
respect their ancestral lands. Thus, in
accordance with DENR Administrative
Order No. 2, and consistent with the new
Indigenous Peoples Rights Act (IPRA), the
following shall be observed:
No mineral agreements, FTAA and
mining permits shall be granted in
ancestral lands/domains except with prior
informed consent in: a) CADC/CLC areas;
and b) areas verified by the DENR
Regional Office and/or appropriate offices
as actually occupied by Indigenous
Cultural Communities under a claim of
time immemorial possession;
Where written consent is granted by the
ICCs, a royalty payment shall be
negotiated which shall not be less than 1%
of the Gross Output of the mining
operations in the area.
Representation in the Multi-partite
Monitoring Committee;
SAFETY AND ENVIRONMENTAL
PROTECTION
All contractors and permittees shall strictly
comply with all the mines safety rules
and regulations as may be promulgated
by the Secretary concerning the safe and
sanitary upkeep of the mining operations
and achieve waste-free and efficient mine
development. Personnel of the
Department involved in the
implementation of mines safety, health
and environmental rules and regulations
shall be covered under Republic Act No.
7305.
No person under sixteen (16) years of age
shall be employed in any phase of mining
operations and no person under eighteen
(18) years of age shall be employed
underground in a mine.
All mining and quarrying operations that
employ more than fifty (50) workers shall
have at least one (1) licensed mining
engineer with at least five (5) years of

experience in mining operations, and one

(1) registered foreman.
The regional director shall have exclusive
jurisdiction over the safety inspection of
all installations, surface or underground,
in mining operations at reasonable hours
of the day or night and as much as
possible in a manner that will not impede
or obstruct work in progress of a
contractor or permittee.
The mines regional director shall, in
consultation with the Environmental
Management Bureau, forthwith or within
such time as specified in his order,
require the contractor to remedy any
practice connected with mining or
quarrying operations, which is not in
accordance with safety and anti-pollution
laws and regulations, which is not in
accordance with safety and anti-pollution
laws and regulations.
In case of any incident or accident,
causing or creating the danger of loss of
life or serious physical injuries, the
person in charge of operations shall
immediately report the same to the
regional office where the operations are
situated. Failure to report the same
without justifiable reason shall be a cause
for the imposition of administrative
sanctions prescribed in the rules and
regulations implementing this Act.
Every contractor shall undertake an
environmental protection and
enhancement program covering the
period of the mineral agreement or
permit.
Except during the exploration period of a
mineral agreement or financial or
technical assistance agreement or an
exploration permit, an environmental
clearance certificate shall be required
based on an environmental impact
assessment and procedures under the
Philippine Environmental Impact
Assessment System including Sections 26

and 27 of the Local Government Code of

1991 which require national government
agencies to maintain ecological balance,
and prior consultation with the local
government units, nongovernmental and
people's organizations and other
concerned sectors of the community:
Provided, That a completed ecological
profile of the proposed mining area shall
also constitute part of the environmental
impact assessment.
A mine rehabilitation fund shall be
created, based on the contractor's
approved work program, and shall be
deposited as a trust fund in a government
depository bank and used for physical
and social rehabilitation of areas and
communities affected by mining activities
and for research on the social, technical
and preventive aspects of rehabilitation.
Failure to fulfill the above obligation shall
mean immediate suspension or closure of
the mining activities of the
contractor/permittee concerned.
ON SOCIAL ACCEPTABILITY
Mining contractors/operators shall allocate
a minimum of 1% of their direct mining
and milling costs for the
development of the following:
Host and neighboring communities and
mine camp to promote the general welfare
of inhabitants in the area. This
includes construction and maintenance of
infrastructures such as roads and bridges,
school buildings, housing and
recreational facilities, water and power
supplies, etc.;
Mining technology and geosciences,
particularly those related to improved
efficiencies and environmental protection
and rehabilitation.
MINING PERMITS GRANTED TO
QUALIFIED PERSONS
The following are the types of mining
permits granted under the Mining Act of
1995 and its IRR:

Exploration Permit - these permits are

issued to qualified individuals or local and
foreign corporations granting them to
undertake purely mineral exploration
activities. Has a term of two (2) years
renewable for like terms but not to exceed
a total term of six (6) years for nonmetallic minerals and eight (8) years for
metallic minerals. The Permittee may
eventually apply for Mineral Agreement or
FTAA, subject to maximum areas
limitations. The maximum areas allowed
per qualified person under an Exploration
Permit are: 1,620 hectares in any one
province or 3,240 hectares in the entire
country for an individual; and 16, 200
hectares in any one province or 32,400
hectares in the entire country for a
corporation, association, cooperative or
partnership.
Mineral Agreement - are granted to
individuals or local corporations giving
them the right to explore, develop and
utilize the minerals within the contract
area. There are three modes of Mineral
Agreements namely:
Mineral Production Sharing
Agreement (MPSA) - an agreement
wherein the Government grants to the
contractor the exclusive right to conduct
mining operations within, but not title
over, the contract area and shares in the
production whether in kind or in value as
the owner of the minerals therein. The
Contractor shall provide the necessary
financing technology, management and
personnel;
Co-Production Agreement (CA) - an
agreement between the Government and
the Contractor wherein the Government
shall provide inputs to the mining
operations other than the mineral
resources; and
Joint Venture Agreement (JVA) - an
agreement where the Government and the
Contractor organize a joint venture
company with both parties having equity
shares. Aside from earnings in equity, the
Government shall be entitled to a share in
the gross output.

The features of a Mineral Agreement are

as follows:
Term of 25 years, renewable for another
term of 25 years;
Exploration Period of two (2) years
renewable for like terms but not to exceed
a total term of six (6) years for nonmetallic
minerals or eight (8) years for metallic
minerals;
Maximum allowable areas of 810
hectares in any one province or 1,620
hectares in the entire country for an
individual, or 8,100 hectares in any one
province or 16,200 in the entire country
for a corporation, association, cooperative
or partnership.
Provides for mandatory relinquishment
such that the maximum final area shall
not exceed 5,000 hectares for
metallic minerals or 2,000 hectares for
non-metallic mines;
Subject to Environmental Work Program
(EWP) during the exploration period, and
to Environmental Compliance
Certificate (ECC) and Environmental
Protection and Enhancement Program
(EPEP) during the development and
operation period;
Approval by the DENR Secretary
Financial or Technical Assistance
Agreements (FTAA) - a mining contract
for large-scale exploration,
development and utilization of minerals
which allows up to 100% foreign equity
participation/ownership. The terms and
conditions under an FTAA are as follows:
Term of 25 years, extendable for like
periods;
Minimum capitalization, $4Million, or its
peso equivalent;
Minimum investment for infrastructure
and development of $50Million;
Allowed only for metallic minerals such
as gold, copper, nickel, chromite, lead,
zinc and other metals;
Maximum allowable area: Aggregate
total of 81,000 in the entire country;
Mandatory area relinquishments : 25%
on the first 2-yrs; 10% per year thereafter;
Maximum final area: 5,000 hectares for
each mining area;

 Maximum periods: Exploration Period 4

years; Pre-Feasibility Study Period 2 yrs;
Feasibility Study Period 2 years;
Subject to Environmental Work Program
(EWP) during the exploration/prefeasibility study/feasibility study period,
and to Environmental Compliance
Certificate (ECC) and Environmental
Protection and Enhancement Program
(EPEP) during the development and
operation period;
Approval by the President, upon
recommendation of the Negotiating Panel
composed of the DENR Secretary, the
MGB Director, and representatives from
NEDA, DTI/BOE, Dept. of Finance, DENR
Field Operations Office, DENR Legal Office,
and MGB Regional Office.

Small-Scale Mining Permits - In

consonance with the Local Government
Code and RA No. 7076, small-scale mining
permits are approved and issued by the
City Mayor/Provincial Governor, upon
recommendation of the Provincial/City
Mining Regulatory Board.

While the maximum area allowable for

FTAA is apparently substantial, the
eventual significant area reduction is
ensured by the mandatory relinquishment
provision. Further, the P50/ha/yr
Occupation Fees and the stipulations for
minimum ground expenditures that
correspondingly graduate annually
upwards are expected to deter any
company for holding on unnecessarily any
excess land areas that are unmineralized.

AUXILIARY MINING RIGHTS

Sand and Gravel Permits - are issued

for the extraction, removal and disposition
of sand and gravel and other loose or
unconsolidated materials. Permits with
areas not exceeding 5 hectares are issued
by the Provincial Governor/City Mayor
while those exceeding 5 hectares but not
more than 20 hectares are issued by the
MGB Regional Director. A Sand and Gravel
Permit has a term of 5 years and
renewable for like terms.
Quarry Resources Permits - In
accordance with the Local Government
Code of 1991, mining permits with areas
not more than 5 hectares have been
devolved to the Provincial Governor or the
City Mayor for approval upon
recommendation of the Provincial/City
Mining Regulatory Board. These include
the Quarry Permit, Guano Permit,
Gratuitous Permit and Gemstone
Gathering Permit.

Mineral Processing Permit a permit

granting the right to process minerals. It is
issued by the DENR Secretary with a term
of 5 years and renewable for like terms.
Ore Transport Permit no minerals,
mineral products and by-products shall be
transported unless accompanied by an
Ore Transport Permit. The OTP is issued by
the MGB Regional Director concerned.

Timber Rights. Any provision of law to

the contrary notwithstanding, a
contractor may be ranged a right to cut
trees or timber within his mining area as
may be necessary for his mining
operations subject to forestry laws, rules
and regulations: Provided, That if the
land covered by the mining area is
already covered by existing timber
concessions, the volume of timber
needed and the manner of cutting and
removal thereof shall be determined by
the mines regional director, upon
consultation with the contractor, the
timber concessionaire/permittee and the
Forest Management Bureau of the
Department: Provided, further, That in
case of disagreement between the
contractor and the timber
concessionaire, the matter shall be
submitted to the Secretary whose
decision shall be final. The contractor
shall perform reforestation work within
his mining area in accordance with
forestry laws, rules and regulations.
Water Rights. A contractor shall have
water rights for mining operations upon
approval of application with the
appropriate government agency in
accordance with existing water laws,
rules and regulations promulgated
thereunder: Provided, That water rights
already granted or vested through long

use, recognized and acknowledged by

local customs, laws, and decisions of
courts shall not thereby be impaired:
Provided further, That the Government
reserves the right to regulate water
rights and the reasonable and equitable
distribution of water supply so as to
prevent the monopoly of the use thereof.
Right to Possess Explosives. A
contractor/ exploration permittee shall
have the right to possess and use
explosives within his contract/permit
area as may be necessary for his mining
operations upon approval of an
application with the appropriate
government agency in accordance with
existing laws, rules and regulations
promulgated thereunder: Provided, That
the Government reserves the right to
regulate and control the explosive
accessories to ensure safe mining
operations.
Easement Rights. When mining areas
are so situated that for purposes of more
convenient mining operations it is
necessary to build, construct or install
on the mining areas or lands owned,
occupied or leased by other persons,
such infrastructure as roads, railroads,
mills, waste dump sites, tailings ponds,
warehouses, staging or storage areas
and port facilities, tramways, runways,
airports, electric transmission, telephone
or telegraph lines, dams and their
normal flood and catchment areas, sites
for water wells, ditches, canals, new
river beds, pipelines, flumes, cuts,
shafts, tunnels, or mills, the contractor,
upon payment of just compensation,
shall be entitled to enter and occupy
said mining areas or lands.
Entry into Private Lands and
Concession Areas. Subject to prior
notification, holders of mining rights
shall not be prevented from entry into
private lands and concession areas by
surface owners, occupants, or
concessionaires when conducting mining
operations therein: Provided, That any
damage done to the property of the
surface owner, occupant, or
concessionaire as a consequence of such

operations shall be properly

compensated as may be provided for in
the implementing rules and regulations:
Provided, further, That to guarantee
such compensation, the person
authorized to conduct mining operation
shall, prior thereto, post a bond with the
regional director based on the type of
properties, the prevailing prices in and
around the area where the mining
operations are to be conducted, with
surety or sureties satisfactory to the
regional director.
TRANSPORT, SALE AND PROCESSING
OF MINERALS
Ore Transport Permit. A permit
specifying the origin and quantity of
non-processed mineral ores or minerals
shall be required for their transport.
Transport permits shall be issued by the
mines regional director who has
jurisdiction over the area where the ores
were extracted. In the case of mineral
ores or minerals being transported from
the small-scale mining areas to the
custom mills or processing plants, the
Provincial Mining Regulatory Board
(PMRB) concerned shall formulate their
own policies to govern such transport of
ores produced by small-scale miners.
Mineral Trading Registration. No
person shall engage in the trading of
mineral products, either locally or
internationally, unless registered with
the Department of Trade and Industry
and accredited by the Department, with
a copy of said registration submitted to
the Bureau.
Minerals Processing Permit. No person
shall engage in the processing of
minerals without first securing a
minerals processing permit from the
Secretary. Minerals processing permit
shall be for a period of five (5) years
renewable for like periods but not to
exceed a total term of twenty-five (25)
years.
Eligibility of Foreign-owned/controlled Corporation. A foreign-

owned/-controlled corporation may be

granted a mineral processing permit.
TAXES AND INCENTIVES
Mining contractors of MPSA and FTAA can
avail of fiscal and non-fiscal incentives
granted under the Omnibus
Investment Code of 1987, as amended.
In addition to these incentives, the
following are also granted by the Mining
Act:
Incentives for pollution control devises;
Incentives for income tax carry forward
of losses;
Incentives for income tax accelerated
depreciation on fixed assets;
Investment guarantees, such as
investment repatriation, earnings
remittance, freedom from expropriation,
and
requisition of investment, and
confidentiality of information.
For FTAA contractors, an additional
incentive, in the form of a tax holiday on
national taxes is granted from the start of
the construction and development period
up to the end of the cost recovery period,
but not to exceed five years from the start
of commercial operation. After the
recovery period, the contractor starts
paying these taxes, including the
additional government share based on
negotiated scheme.
TAXES PAID
Mining activities generate income both for
the local and national governments. The
following tax payments are
provided for in the Mining Act, the National
Internal Revenue Code and other laws:
Payments to the National Government:
Corporate Income Tax
Excise Tax on Minerals
Customs Duties
Value Added Tax
Royalties on Minerals Extracted from
Mineral Reservation
Documentary Stamp Tax
Capital Gains Tax
Payments to Local Government:
Business Tax

Real Property Tax

Registration Fees
Occupation Fees
Community Tax
Other Local Taxes

Withholding Taxes on:

Payroll
Interest Income in Banks
Royalties to Technology Transfer
Interest Payments to Foreign Loans
Foreign Stockholders Dividends
Remittance to Principal
In addition to the above taxes, duties and
fees, mining contractors are required to
pay or expend on:
Additional Government Share for FTAA
contractors
Royalties to Landowners/Claim owners
Royalties to Indigenous Peoples
Social Development Programs
Environmental Obligations
Research and Development of Mining
Technology and Geosciences
The benefits of mining projects provide
approximately not less than sixty percent
(60%) of the total proceeds of the
mining operations to the government and
the Filipino people, considering that the
contractor infused 100% of the
capital. These proceeds include all direct
and indirect taxes and fees and benefits to
other Filipinos

PEOPLES SMALL-SCALE MINING ACT

OF 1991 (R.A 7076)
PROVINCIAL/CITY MINING
REGULATORY BOARD

The Board is composed of the

Department of Environment and
Natural Resources representative as
Chairman; and the representative of
the governor or city mayor, as the case
may be, one (1) small-scale mining
representative from a nongovernment
organization who shall come from an
environmental group, as members.

The representatives from the private

sector are nominated by their
respective organizations and
appointed by the Department regional
director. The Department provides the
staff support to the Board.

(a) Declare and segregate existing

gold-rich areas for smallscale mining;

(b) Reserve future gold and other

mining areas for smallscale mining;

(c) Award contracts to small-scale

miners;

(d) Formulate and implement rules and

regulations related to small-scale
mining;

(e) Settle disputes, conflicts or

litigations over conflicting claims
within a peoples small-scale mining
area, an area that is declared a small
mining area; and

(f) Perform such other functions as

may be necessary to achieve the goals
and objectives of this Act.

FEATURES OF THE PEOPLES SMALLSCALE MINING PROGRAM

(a) The identification, segregation and
reservation of certain mineral lands as
peoples small-scale mining areas;
(b) The recognition of prior existing rights
and productivity;

FUTURE PEOPLES SMALL-SCALE

MINING AREAS
The following lands, when suitable for
small-scale mining, may be declared by
the Board as peoples small-scale mining
areas:
(a) Public lands not subject to any existing
right;
(b) Public lands covered by existing mining
rights which are not active mining areas;
and
(c) Private lands, subject to certain rights
and conditions, except those with
substantial improvements or in bonafide
and regular use as a yard, stockyard,
garden, plant nursery, plantation,
cemetery or burial site, or land situated
within one hundred meters (100 m.) from
such cemetery or burial site, water
reservoir or a separate parcel of land with
an area of ten thousand square meters
(10,000 sq.m.) or less.
No ancestral land may be declared as a
peoples small-scale mining area without
the prior consent of the cultural
communities concerned: Provided, That, if
ancestral lands are declared as peoples
small-scale mining areas, the members of
the cultural communities therein shall be
given priority in the awarding of smallscale mining contracts.

(c) The encouragement of the formation of

cooperatives;
(d) The extension of technical and
financial assistance, and other social
services;
(e) The extension of assistance in
processing and marketing;
(f) The generation of ancillary livelihood
activities;
(g) The regulation of the small-scale
mining industry with the view to
encourage growth and productivity; and
(h) The efficient collection of government
revenue.

Small-scale miners who have been in

actual operation of mineral lands on or
before August 1, 1987 as determined
by the Board shall not be
dispossessed, ejected or removed from
said areas: Provided, That they comply
with the provisions of this Act.
The Secretary, upon recommendation
of the Director, shall withdraw the
status of the peoples small-scale
mining area when it can no longer be
feasibly operated on a small-scale
mining basis or when the safety,
health and environmental conditions
warrant that the same shall revert to
the State for proper disposition .

REGISTRATION AND AWARD FOR

SMALL-SCALE MINER CONTRACTS

 All persons undertaking small-scale

mining activities shall register as
miners with the Board and may
organize themselves into
cooperatives in order to qualify for the
awarding of a peoples small-scale
mining contract.
A peoples small-scale mining contract
may be awarded by the Board to
small-scale miners who have
voluntarily organized and have duly
registered with the appropriate
government agency as an individual
miner or cooperative: Provided, That
only one (1) peoples small-scale
mining contract may be awarded at
any one time to a small-scale mining
contractor who shall start mining
operations within one (1) year from
the date of award: Provided, further,
That priority shall be given to smallscale miners residing in the province
or city where the small-scale mining
area is located. Applications for a
contract shall be subject to a
reasonable fee to be paid to the
Department of Environment and
Natural Resources regional office
having jurisdiction over the area.

TERMS AND CONDITIONS OF THE

CONTRACT
A contract shall have a term of two (2)
years, renewable subject to verification by
the Board for like periods as long as the
contractor complies the provisions set
forth in this Act, and confers upon the
contractor the right to mine within the
contract area: Provided, That the holder of
a small-scale mining contract shall have
the following duties and obligations:
(a) Undertake mining activities only in
accordance with a mining plan duly
approved by the Board;
(b) Abide by the Mines and Geosciences
Bureau and the Small-scale Mining Safety
Rules and regulations;
(c) Comply with his obligations to the
holder of an existing mining right;

(d) Pay all taxes, royalties or government

production share as are now or may
hereafter be provided by law:
(e) Comply with pertinent rules and
regulations on environmental protection
and conservation, particularly those on
tree-cutting, mineral processing and
pollution control;
(f) File under oath at the end of each
month a detailed production and financial
report to the Board;
(g) Assume responsibility for the safety of
persons working in the mines.
EXTENT OF CONTRACT AREA
The Board shall determine the reasonable
size and shape of the contract area
following the meridional block system
established under Presidential Decree No.
463, as amended, otherwise known as the
Mineral Resources Development Decree of
1974, but in no case shall the area exceed
twenty hectares (20 has.) per contractor
and the depth or length of the tunnel or
adit not exceeding that recommended by
the Director taking into account the
following circumstances:
(a) Size or membership and capitalization
of the cooperative;
(b) Size of mineralized area;
(c) Quantity of mineral deposits;
(d) Safety of miners;
(e) Environmental impact and other
considerations; and
(f) Other related circumstances.

RIGHTS

Easement Rights. Upon the

declaration of a peoples small-scale
mining area, the Director, in
consultation with the operator, claim
owner, landowner or lessor of an
affected area, shall determine the right
of the small-scale miners to existing
facilities such as mining and logging
roads, private roads, port and
communication facilities, processing

plants which are necessary for the

effective implementation of the
Peoples Small-scale Mining Program,
subject to payment of reasonable fees
to the operator, claim owner,
landowner or lessor.

Rights Under a Peoples Smallscale Mining Contract. A peoples

small-scale mining contract entitles
the small scale mining contractor to
the right to mine, extract and dispose
of mineral ores for commercial
purposes. In no case shall a smallscale mining contract be
subcontracted, assigned or otherwise
transferred.
Rights of Claimowners. In case a
site declared and set as a Peoples
Small-scale Mining Area is covered by
an existing mining right, the
claimowner and the small-scale miners
therein are encouraged to enter into a
voluntary and acceptable contractual
agreement with respect to the smallscale utilization of the mineral values
from the area under claim. In case of
disagreement, the claimowners shall
be entitled to the following rights and
privileges:

If a private land is declared as a

peoples small-scale mining area, the
owner and the small-scale mining
contractors are encouraged to enter
into a voluntary and acceptable
contractual agreement for the
small-scale utilization of the mineral
values from the private land: Provided,
That the owner shall in all cases be
entitled to the payment of actual
damages which he may suffer as a
result of such declaration: Provided,
further, That royalties paid to the
owner shall in no case exceed one
percent (1%) of the gross value of the
minerals recovered as royalty.

Ownership of Mill Tailings. The

Small-scale mining contractor shall be
the owner of all mill tailings produced
from the contract area. He may sell the
tailings or have them processed in any
custom mill in the area: Provided, That,
if the small-scale mining contractor
decides to sell its mill tailings, the
claimowner shall have a preemptive
right to purchase said mill tailings at
the prevailing market price.

Sale of Gold. All gold produced by

small-scale miners in any mineral area
shall be sold to the Central Bank, or its
duly authorized representative, which
shall buy it at prices competitive with
those prevailing in the world market
regardless of volume or weight.

(a) Exemption from the performance of

annual work obligations and payment
of occupation fees, rental, and real
property taxes;
(b) Subject to the approval of the
Board, free access to the contract area
to conduct metallurgical with the
operations of the small-scale miners;
and
(c) Royalty equivalent to one and one
half (1 1/2%) of the gross value of the
metallic mineral output or one percent
(1%) of the gross value of the
nonmetallic mineral output to be
paid to the claimowner: Provided, That
such rights and privileges shall be
available only if he is not delinquent in
the performance of his annual work
obligations and other
requirements
for the last two (2) years prior to the
effectivity of this Act.

Rights of Private Landowners. The

private landowner or lawful possessor
shall be notified of any plan or petition
to declare his land as a peoples smallscale mining area. Said landowner may
oppose such plan or petition in an
appropriate proceeding and hearing
conducted before the Board.

The Central Bank shall establish as

many buying stations in gold-rush
areas to fully service the requirements
of the small-scale miners thereat.
CUSTOM MILLS

The establishment and operation of

safe and efficient custom mills to
process minerals or ore-bearing
materials shall be limited to mineral

processing zones duly designated by

the local government unit concerned
upon recommendation of the Board.

In mining areas where the private

sector is unable to establish custom
mills, the Government shall construct
such custom mills upon the
recommendation of the Board based
on the viability of the project.

The Board shall issue licenses for the

operation of custom mills and other
processing plants subject to pollution
control and safety standards.

The Department shall establish assay

laboratories to crosscheck the integrity
of custom mills and to render
metallurgical and laboratory services
to miners.

Custom mills shall be constituted as

withholding agents for the royalties,
production share or other taxes due
the Government.

PEOPLES SMALL-SCALE MINING

PROTECTION FUND

A Peoples Small-scale Mining

Protection Fund is created which shall
be fifteen percent (15%) of the
national governments share of the
internal revenue tax or production
share due the Government which shall
be used primarily for information
dissemination and training of smallscale miners on safety, health, and
environmental protection, and the
establishment of mine rescue and
recovery teams including the
procurement of rescue equipment
necessary in cases of emergencies
such as landslides, tunnel collapse, or
the like.

The fund shall also be made available

to address the needs of the small-scale
miners brought about by accidents
and/or fortuitous events.

EXECUTIVE ORDER NO. 79

Institutionalizing and implementing
reforms in the Philippine mining sector

providing policies and guidelines to ensure

environmental protection and responsible
mining in the utilization of mineral
resources
Executed by President Benigno S. Aquino
III, July 6, 2012
RATIONALE
As embodied in the 1987
Constitution:
a. Section 2, Article XII
b. Section 22, Article II, further
exemplified in IPRA of 1997
c. Section 7, Article X, further
strengthened by the Local
Government Code of 1991
As embodied in Special Laws:
d. Section 2 of the Philippine Mining
Act of 1995
As recommended:
e. Climate Change Adaptation and
Mitigation and Economic
Development Cabinet Clusters in a
Joint Resolution dated 16 March
2012
Section1. Areas Closed to Mining
Applications
Areas enumerated under Section
19 of RA No. 7942
Protected areas categorized and
established under NIPAS
Prime agricultural lands, in
addition to lands covered by the
CARP Law of 1988
Tourism development areas
identified by NTPD
Other critical areas, island
ecosystems, and impact areas of
mining identified by DENR
As to existing mining contracts,
agreements, and concessions
approved before the effectivity of
Order: they shall continue to be valid,
binding, and enforceable so long they are
in compliance with applicable laws.
Role of DENR. It shall:
With the Government and LGUs,
ensure that environmental
standards in mining shall be fully
and strictly enforced, and
appropriate sanctions meted out
against violators (Section 2)

Spearhead the conduct of review

of the performance of existing
mining operations subject to
existing laws with a multistakeholder team (Section 3)
Undertake a review of existing
mining contracts and agreements
for possible renegotiation of the
terms and conditions of the same
(Section 4)
With DTI, DOST, NEDA, mining
industry, and other stakeholders,
submit within a period of 6 months
a national program and road-map,
based on the Philippine
Development Plan and a National
Industrialization Plan, for the
development of value-adding
activities and downstream
industries for strategic metallic
ores (Section 8)
With DBM, DOF, and concerned
govt. agencies, ensure the timely
release of the share of LGUs in the
National Wealth pursuant to the
Local Government Code of 1991
(Section 12)
Establish an inter-agency one-stop
shop for all mining related
applications and processes within 6
months from the effectivity of this
Order (Section 13)
Ensure that mechanisms are
established to operationalize the
Extractive Industries Transparency
Initiative in the mining sector after
proper consultation (Section 14)
Create a centralized database of
all mining-related information
within 6 months from the effectivity
of this Order (Section 15)
With the Environmental
Management Bureau (EMB) shall
study the adoption of the
Programmatic Environmental
Impact Assessment for mining
projects and related activities
(Section 17)
With the MICC, issue the pertinent
IRRs within 60 days from the
effectivity of this Order (Section 19)

Section 5. Establishment of Mineral

Reservations

Potential and future mining areas with

know strategic mineral reserves and
resources shall be declared as Mineral
Reservations for the development of
strategic industries, after proper
consultation with all concerned
stakeholders such as, but not limited to,
residents of affected communities,
LGUs, the business sector, and nongovernment and civil society
organizations. (also pursuant to RA No.
7942)
Section 6. Opening of Areas for
Mining through Competitive Public
Bidding
The grant of mining rights and mining
tenements over areas with known and
verified mineral resources and reserves,
including those owned by the Government
and all expired tenements, shall be
undertaken through competitive public
bidding.
Section 7. Disposition of Abandoned
Ores and Valuable Metals in Mine
Wastes and Mill Tailings
All valuable metals in abandoned ores
and mine wastes and/or mill tailings
generated by previous and now defunct
mining operations belong to the State and
shall be developed and utilized through
competitive public bidding.
In the case of existing mining
operations: all valuable metals in mine
wastes and/or mill tailings shall
automatically belong to the State upon the
expiration of the mining contracts.
In case a single tailings pond is
shared by two or more mine sites
covered by mining contracts: both or
all mining contracts must expire before
the State can claim ownership over the
said tailing pond.
The Mining Industry Coordinating
Council or MICC (Sections 9 and 10) An inter-agency forum co-chaired by 2
chairpersons of the Climate Change
Adaptation and Mitigation and Economic
Development Cabinet Clusters with the
DOJ Secretary, NCIP Chairperson, Union of
Local Authorities of the Philippines (ULAP)
President as members.

Powers and Functions of the Council:

Submit a work plan for the
implementation and other reforms
in the mining industry within 60
days from the effectivity of this
Order;
Ensure continuing dialogue and
coordination among all
stakeholders;
Conduct and facilitate the
necessary capacity and
institutional building programs;
Conduct an assessment and
review of all mining-related laws,
rules and regulations, issuances,
and agreements with the view to
formulating recommendations for
improvement;
As may be directed by the
President, constitute and create a
Task Force Against Illegal Mining
and seek the assistance of all law
enforcement agencies such as PNP
and AFP;
Serve as the Oversight Committee
over the operations of
Provincial/City Mining Regulatory
Boards (P/CMRBs);
Request the assistance of any
government agency or
instrumentality in the
implementation of this Order;
Submit periodic reports to the
President on the status of the
implementation of this Order; and
Perform such other functions and
acts as may be necessary, proper
or incidental to the attainment of
its mandates and objectives, or as
may be directed by the President.
Section 11. Measures to Improve
Small-Scale Mining Activities:
Pursuant to RA No. 7076, shall:
Strictly comply with said Act
Undertaken only within the
declared Peoples Small-Scale
Mining Areas
P/CMRBs, where they have not
been constituted, be
operationalized within three (3)
months from the effectivity of this
Order

not be applicable for metallic

minerals except gold, silver, and
chromite
The use of mercury in small-scale
mining shall be strictly prohibited
Training and capacity building measures
for small-scale mining cooperatives and
associations shall be conducted

Integrated Map System for the

common and uniform use of all
government agencies and
instrumentalities shall include all miningrelated maps, such as, but not limited, to
mining tenement maps, geo-hazard and
multi-hazard maps, ancestral lands and
domains, and protected areas under the
NIPAS. Areas closed to mining operations
(Section 2 of this Order) shall be clearly
defined and delineated under the
integrated map system. (Section 16)
All government agencies involved in
the implementation of this Order are
authorized to allocate from their
existing funds pursue the objectives of
this Order, subject to government
accounting and auditing rules and
regulations. (Section 18)
REPUBLIC ACT NO. 7160
AN ACT PROVIDING FOR A LOCAL
GOVERNMENT CODE OF 1991
October 10, 1991
CHAPTER II
Share of Local Government Units in
the National Wealth Sections 289292
Section 289. LGUs shall have an
equitable share in the proceeds derived
from the utilization and development of
the national wealth within their respective
areas.
Section 290. Amount of Share of LGUs. Share of forty percent (40%) of the
gross collection of the national
government from the preceding fiscal year
from: mining taxes, royalties, forestry and
fishery charges, other taxes, fees, or
charges, related surcharges, interests, or
fines, and from its share in any co-

production, joint venture or production

sharing agreement in the utilization and
development of the national wealth within
their territorial jurisdiction.

(b) Where the natural resources are

located in a highly urbanized or
independent component city:
(1) City - 65%; and

Section 291. Share of the Local

Governments from any Government
Agency or Owned or Controlled
Corporation. - Based on the preceding
fiscal year from the proceeds of any
government agency or GOCC, whichever
will produce a higher share for the LGU:

(2) Barangay - 35%

However, where the natural
resources are located in such 2 or
more cities, the allocation of shares
shall be based on the formula on
population and land area as
specified in paragraph (a).

(a) 1% of the gross sales or receipts of the

preceding calendar year; or
(b) 40% of the mining taxes, royalties,
forestry and fishery charges and such
other taxes, fees or charges, including
related surcharges, interests, or fines the
government agency or government owned
or controlled corporation would have paid
if it were not otherwise exempt.
Section 292. Allocation of Shares.
(a) Where the natural resources are
located in the province:
(1) Province - 20%;
(2) Component
City/Municipality 45%; and
(3) Barangay - 35%

REPUBLIC ACT NO. 9003

Ecological Solid Waste Management
Act of 2000 (An Overview)
Solid Waste
discarded household and commercial
waste
non-hazardous institutional and
industrial waste
street sweepings
construction debris
agricultural waste
Classification of Waste as defined by
RA 9003
Compostables
Recyclables
Special Wastes
Non-recyclables/Residuals
Ecological Solid Waste Management

Where the natural resources are

located in 2 or more provinces, or
in 2 or more component cities or
municipalities or in two 2 or more
barangays, basis of shares shall be:
(1) Population - 70%; and
(2) Land area - 30%

- It is the systematic administration of

activities that provide for segregation at
source, segregated transport, storage,
transfer,
processing,
treatment
and
disposal of solid waste and all other waste
management activities that do not harm
the environment.
The Ecological Solid Waste
Management Act
RA 9003

An Act providing for an ecological solid

waste management program, creating
the necessary institutional mechanisms,
and declaring certain prohibited acts.
Was passed by the Congress and
Senate on December 2000 and signed
by the President on January 26, 2001.

Salient Features of RA 9003

Creation of the National Solid Waste

Management Commission, National
Ecological Center and LGU Solid Waste
Management Boards
Creation
of
multi-purpose
environmental
cooperatives
or
associations in every LGU
Waste segregation, waste reduction
and recycling programs
Construction of Material Recovery
Facilities/Systems
Conversion of open dumpsites to
sanitary landfills
Integration of Ecological Waste
Management concepts in academic
curricula for formal and non-formal
education
Administrative and enforcement
procedures

INSTITUTIONAL MECHANISM
(National Level)
The National Solid Waste
Management Commission (NSWMC)

Created under the Office of the

President
EMB
of
the
DENR
provides
secretariat support
Secretariat to be headed by an
Executive Director to be nominated
by the Commission and appointed
by the Chairman
Composed of 14 members from the
government and 3 from the private
sector

Government Sector (14 Members):

DENR (Chairman)
PIA
DILG
MMDA
DOST
TESDA
DPWH
League of Provinces
DOH
League of Cities

DTI
DA

League of Municipalities
Liga ng mga Barangay

Non-Government Sector (3 Members):

1 representative from the NGO
1 representative from the recycling
industry
1 representative from the manufacturing/
packaging industry
Role of the DENR
as the Lead Agency
provide
technical
and
other
capability building assistance and
support to LGUs
recommend policies to eliminate
barriers to waste reduction programs
exercise visitorial and enforcement
powers to ensure strict compliance
issue rules and regulations
Role of the
National Ecology Center
Facilitate training & education in
integrated ecological solid waste
management;
Establish solid waste management
information database;
Establish
a
national
recycling
network;
Provide technical assistance in pilot
modeling of solid waste management
facilities.
Solid Waste Management Boards at
the Local Government Level
Provincial SWM Board - Consolidate plans
and programs, establishing activities and
complementing efforts at the local and
barangay levels
City/Municipal SWM Board - Collection of
non-recyclable materials and special
wastes shall be the responsibility of the
municipality or city
Barangay SWM Committee - Segregation
and
collection
of
biodegradable,
compostable, & reusable solid wastes shall
be conducted at the barangay level

Functional Elements/Mechanics of
Solid Waste Management
Waste Generation -> On-site Storage ->
Transfer & Transport -> Collection ->
Processing/Treatment -> Disposal
Requirements for Segregation &
Volume Reduction
Separate
containers
for
compostables, recyclables, special
wastes and residuals
Separate collection schedules /
separate trucks or haulers /
compartmentalized
collection
vehicles
Material Recovery Facilities for
recyclables & biodegradables
Inventory of markets for composts
and recyclables
Implementing a Recycling Program
Encourage
environmentally
preferable purchase
Conduct a study as regards
specifications, product descriptions
and standards
Formulate and implement ecolabeling
Set
a
criteria
for
nonenvironmentally
acceptable
products
Establish reclamation programs
and buy-back centers
Management of Residuals
& Final Disposal Sites
Closure of all open dumpsites
Conversion of all open dumpsites
to controlled dumps within 3 years
Minimum requirements in siting,
designing and operation of disposal
sites
Sanitary landfills
Business and Industry Role
The
Commission
shall
encourage
commercial and industrial establishments,
through appropriate incentives other than
tax incentives to:

initiate, participate and invest in

integrated EWM Projects
manufacture environment-friendly
products
introduce, develop and adopt
innovative processes
recycle and re-use materials

conserve raw materials and

energy
reduce waste
prevent pollution
undertake community activities
to promote and propagate
effective SWM practices

Prohibited Acts
Violation

Fines/Penalties

Littering, throwing
and dumping of
waste matters in
public places and
water bodies

P 300 P1,000
Or
Community
service between
1 15 days

Open burning of
solid waste

P 300 P1,000
Or
Imprisonment of
1 15 days

Violation

Fines/Penalties

Collection and
transport of nonsegregated or
unsorted waste

P 1,000 P
3,000

Squatting in open
dumpsite and landfills

Imprisonment
of 15 days to 6
months

Open dumping,
burying of
biodegradable & nonbiodegradable
materials in flood
prone areas
Unauthorized removal
of recyclable
materials for

Or

collection by
authorized persons

or watershed

Violation

Fines/Penaltie
s

Operation of open
dumpsites

P500,000.00

Manufacture,
distribution or use of
non-environmentally
acceptable packaging
materials

Or
Imprisonment
of 1 to 3
years

Importation of
consumer products
packaged in nonenvironmentally
acceptable materials

Code on Sanitation of the Philippines

P.D. 856
Date of Promulgation: December 23, 1975

Violation

Fines/Penalti
es

Construction,
expansion or operation
of waste management
facilities without an
Environmental
Compliance Certificate

P100,000 P
1M

Construction of any
establishment within
200 meters from open
or controlled dump
sites and sanitary
landfills
Construction or
operation of landfills or
any waste disposal
facility within or near
an aquifer,
groundwater reservoir

Or
Imprisonmen
t of 1 to 6
years

What is PD 856?
-A consolidation of what used to be a
disparate
public
health
laws
and
regulations on sanitation.
-Covered all present day business
enterprises and establishments.
Objective:
Improvement of the way of the Filipinos by
directing public health services towards
the protection and promotion of the health
of our people.
Contents:
-General Provisions
-Disposal
of Dead
-Water Supply
-Nuisance
-Food Establishments
-Final
Provisions
-Public Places Establishments
-Industrial Hygiene
-Vermin Control
-Sewage and Drainage
-Pollution of the Environment
-Refuse
General Provisions

Authority of the Secretary to

promulgate rules and regulations.
Authority of the Bureau Directors to
develop plans, programs, operating
standards and management tech.
Authority of the Regional Directors to
administer
health
functions
and
enforce the Code.
Authority of the Local Health Officers
to administer health functions in areas
under their jurisdiction and enforce the
law.
Miscellaneous Provisions
Condemnation and seizure of property
without compensation of the owner.

Water Supply
1. Prescribed
standards
and
procedures
2. Jurisdiction of the Department
3. Types
of
Water
Examination
Required initial and periodic
4.
Examining Laboratories DOH
accredited
5. Other protective measures
Food
1.
2.
3.
4.

Establishment
Sanitary Permit Requirement
Health Certificates
Quality and Protection of Food
Structural Requirements for food
establishments
5. Exclusive use of Food-Service
Spaces
6. Food Handlers sanitary/hygiene
practices
7. Vermin control
8. Toilet and Washing Facilities
9. Disposal of Refuse
10. Equipment and Utensils
11. Washing of Utensils
12. Bactericidal Treatment
13. Food Establishments
14. Handling and Storage of Washed
Utensils
15. Dry storage of non-perishable
foods
16. Refrigerated storage of perishable
foods
17. Food Servicing operations
18. Evaluation of Food Establishment

19. Special Provisions

- ice plants,
ambulant
food
vendors,
fish
marketing areas
Markets and Abattoirs
1. Prescribed
standards
of
construction
2. Responsibility of the local health
authority
3. Responsibility
of
the
local
government and private operators
Public Laundry
1. Sanitary permit
2. Structural requirements
3. Sanitary requirements
School Sanitation and Health Services
1. Physical Environment
2. Emotional Environment
3. Health Services
4. Requirements for special school
Industrial Hygiene
1. Sanitary requirements
2. Responsibilities of the Employer
and Employees
3. Environmental Provisions
4. Personal Protective Equipment
5. Health Services
Public Swimming and Bathing Places
1. Sanitary Permit
2. Protection of Customers
3. Rest Areas, Bus Terminals, Bus
Stops and Service Stations
4. Camps and Picnic Grounds
5. Dancing schools, dance halls and
night clubs
6. Tonsorial
and
beauty
establishments
7. Massage Clinics and Sauna Bath
Establishments
8. Hotels, Motels and Apartments,
Lodging,
Boarding
or
Condominiums

Tenement Houses and Condominiums

Port, Airport, Vessel and Aircraft
Sanitation

1. Port and Airport Sanitation

potable water, safe food, medical
and health services, vermin control
2. Vessel
Sanitation quarantine
regulations
3. Aircraft sanitation WHO guide to
hygiene and sanitation in aviation.
Vermin Control
1. Vermin abatement program
Sewage Collection and Disposal,
Excreta Disposal and Drainage
1. Scope of supervision of the
Department construction of
approved type of toilet, plans of
individual sewage disposal system
and sewerage system, method of
disposal of sludge, discharge of
untreated effluent
2. Requirements for operation of
sewage treatment works and
sewerage and sewage treatment
plants
3.
Minimum requirements for septic
tanks
jsdjaand disposal of
effluents.
4. Sanitary privy
5. Drainage

provision
and
maintenance of drainage system
by cities and municipalities
Refuse Disposal
1. Provision
of
refuse
collection
system by local government units
2. Provision of refuse receptacles by
occupants
of
buildings
and
residences
Nuisances and Offensive Trades and
Occupations
1. Types of nuisance and offensive
trades
2. Sanitary permit requirements
Pollution of the environment
1. Adoption of other existing pollution
laws
2. Authority of the Department to
promulgate rules and regulations

for the control and prevention of

pollution.
Disposal of Dead Persons
1. Burial grounds requirements
2. Burial requirements
3. Disinterment requirements
4. Sanitary requirements for funeral
and embalming establishments
5. Licensing
of
Embalmers
and
undertakers
6. Autopsy and dissection of remains
7. Donation of human organs for
medical, surgical and scientific
purposes
8. Use of remains for medical studies
and scientific research
9. Special
precautions
for
safe
handling of cadavers containing
radioactive isotopes
Final Provisions
1. Penal
provision
-6
months
imprisonment or fine of P1000.00
or both upon the discretion of the
court

Republic Act No. 6969

AN ACT PROVIDING FOR A
COMPREHENSIVE AIR POLLUTION
CONTROL POLICY AND FOR OTHER
PURPOSES (23 June1999)

POLICY
It is the policy of the State to regulate,
restrict or prohibit the importation,
manufacture, processing, sale,
distribution, use and disposal of chemical
substances and mixtures that present
unreasonable risk and/or injury to health
or the environment; to prohibit the entry,
even in transit, of hazardous and nuclear
wastes and their disposal into the
Philippine territorial limits for whatever
purpose; and to provide advancement and
facilitate research and studies on toxic
chemicals.

IMPLEMENTING AGENCIES/BOARD
The Department of Environment and
Natural Resources, in coordination with
the member agencies of the Inter-Agency
Technical Advisory Council, shall prepare
and publish the rules and regulations
implementing this Act within six months
from the date of its effectivity.
WHAT THE LAW ESTABLISHES
Pre-Manufacture and Pre-Importation
Requirements. Before any new
chemical substance or mixture can be
manufactured, processed or imported for
the first time as determined by the
Department of Environment and Natural
Resources, the manufacturer, processor or
importer shall submit the following
information: the name of the chemical
substance or mixture; its chemical identity
and molecular structure; proposed
categories of use; an estimate of the
amount to be manufactured, processed or
imported; processing and disposal thereof;
and any test data related to health and
environmental effects which the
manufacturer, processor or importer has.
Chemicals Subject to Testing. Testing
shall be required in all cases where:
a) There is a reason to believe that the
chemical substances or mixture may
present an unreasonable risk to health or
the environment or there may be
substantial human or environmental
exposure thereto;
b) There are insufficient data and
experience for determining or predicting
the health and environmental effects of
the chemical substance or mixture; and
c) The testing of the chemical substance
or mixture is necessary to develop such
data.
The manufacturers, processors or
importers shall shoulder the costs of
testing the chemical substance or mixture
that will be manufactured, processed, or
imported.

Action
by
the
Secretary
of
Environment and Natural Resources
of
his
Duly
Authorized
Representative. The Secretary of
Environment and Natural Resources or his
duly authorized representative shall,
within ninety (90) days from the date of
filing of the notice of manufacture,
processing or importation of a chemical
substance or mixture, decide whether or
not to regulate or prohibit its importation,
manufacture,
processing,
sale,
distribution, use or disposal. The Secretary
may, for justifiable reasons, extend the
ninety-day pre-manufacture period within
a reasonable time.
Chemical Substances Exempt from
Pre-Manufacture Notification. The
manufacture of the following chemical
substances or mixtures shall be exempt
from pre-manufacture notification:
a) Those included in the categories of
chemical substances and mixtures already
listed in the inventory of existing
chemicals;
b) Those to be produced in small
quantities solely for experimental or
research and developmental purposes;
c) Chemical substances and mixtures that
will not present an unreasonable risk to
health and the environment; and
d) Chemical substances and mixtures that
exist temporarily and which have no
human or environmental exposure such as
those which exist as a result of chemical
reaction in the manufacture or processing
of a mixture of another chemical
substance.
Prohibited Acts. The following acts and
omissions shall be considered unlawful:
a) Knowingly use a chemical substance or
mixture which is imported, manufactured,
processed or distributed in violation of this
Act or implementing rules and regulations
or orders;
b) Failure or refusal to submit reports,

notices or other information, access to

records, as required by this Act, or permit
inspection of establishment where
chemicals are manufactured, processed,
stored or otherwise held;
c) Failure or refusal to comply with the premanufacture and pre-importation
requirements; and
d) Cause, aid or facilitate, directly or
indirectly, in the storage, importation, or
bringing into Philippines territory,
including its maritime economic zones,
even in transit, either by means of land,
air or sea transportation or otherwise
keeping in storage any amount of
hazardous and nuclear wastes in any part
of the Philippines.
Criminal Offenses and Penalties.
a) (i) The penalty of imprisonment of six
(6) months and one day to six (6) years
and one day and a fine ranging from Six
hundred pesos (P600.00) to Four thousand
pesos (P4,000.00) shall be imposed upon
any person who shall violate section 13 (a)
to (c) of this Act and shall not be covered
by the Probation Law.f the offender is a
foreigner, he or she shall be deported and
barred from any subsequent entry into the
Philippines after serving his or her
sentence;
ii) In case any violation of this Act is
committed by a partnership, corporation,
association or any juridical person, the
partner, president, director or manager
who shall consent to or shall knowingly
tolerate such violation shall be directly
liable and responsible for the act of the
employee and shall be criminally liable as
a co-principal;
(iii) In case the offender is a government
official or employee, he or she shall, in
addition to the above penalties, be
deemed automatically dismissed from
office and permanently disqualified from
holding any elective or appointive
position.
b) (i) The penalty of imprisonment of

twelve (12) years and one day to twenty

(20) years, shall be imposed upon any
person who shall violate section 13 (d) of
this Act.f the offender is a foreigner, he or
she shall be deported and barred from any
subsequent entry into the Philippines after
serving his or her sentence;
(ii) In the case of corporations or other
associations, the above penalty shall be
imposed upon the managing partner,
president or chief executive in addition to
an exemplary damage of at least Five
hundred thousand pesos (P500,000.00).f it
is a foreign firm, the director and all
officers of such foreign firm shall be barred
from entry into the Philippines, in addition
to the cancellation of its license to do
business in the Philippines;
(iii) In case the offender is a government
official or employee, he or she in addition
to the above penalties be deemed
automatically dismissed from office and
permanently disqualified from holding any
elective or appointive position.
c) Every penalty imposed for the unlawful
importation,
entry,
transport,
manufacture,
processing,
sale
or
distribution of chemical substances or
mixtures into or within the Philippines
shall carry with it the confiscation and
forfeiture in favor of the Government of
the proceeds of the unlawful act and
instruments, tools or other improvements
including vehicles, sea vessels, and
aircrafts used in or with which the offense
was committed. Chemical substances so
confiscated
and
forfeited
by
the
Government at its option shall be turned
over to the Department of Environment
and Natural resources for safekeeping and
proper disposal.
d) The person or firm responsible or
connected with the bringing or importation
into the country of hazardous or nuclear
wastes shall be under obligation to
transport or send back said prohibited
wastes;
Any and all means of transportation,

including all facilities and appurtenances

that may have been used in transporting
to or in the storage in the Philippines of
any significant amount of hazardous or
nuclear wastes shall at the option of the
government be forfeited in its favor.

Administrative Fines. In all cases of

violations of this Act, including violations
of implementing rules and regulations
which have been duly promulgated and
published in accordance with Section 16 of
this Act, the Secretary of Environment and
Natural Resources is hereby authorized to
impose a fine of not less than P10,000.00,
but not more than P50,000.00 upon any
person or entity found guilty thereof. The
administrative fines imposed and collected
by the Department of Environment and
Natural Resources shall accrue to a special
fund
to
be
administered
by
the
Department exclusively for projects and
research activities relative to toxic
substances and mixture.

Republic Act No. 8749

(Philippine Clean Air Act of 1999)
AN ACT PROVIDING FOR A
COMPREHENSIVE AIR POLLUTION
CONTROL POLICY AND FOR OTHER
PURPOSES (23 June1999)

Quality Status Report which shall

be used as the basis in formulating
the Integrated Air Quality
Improvement Framework
Extent of pollution in the
country based on reports of
the Department's
monitoring stations;
Analysis and evaluation of
the current state, trends
and projections of air
pollution
Identification of critical
areas, activities, or projects
which will need closer
monitoring or regulation;
Recommendations
Integrated Air Quality Framework
shall be adopted as the official
blueprint with which all
government agencies must comply
with to attain and maintain
ambient air quality standards.
Local Government Units
Non-Government
Organizations
Peoples Organization
Academe
Private Sector
Air Quality Control Action Plan

The Basics:

People have the right to a balanced

and healthful ecology.
Promote sustainable development
while dealing with environmental
problems.
Cleaning the environment is areabased.
Polluters must pay.
What is good of all should be the
concern of all.

Air Quality Monitoring and

Information Network

prepare an annual National Air

Include enforceable emission

limitations and other control
measures, means or techniques, as
well as schedules and time tables
for compliance
establishment and operation of
appropriate devices, methods,
systems and procedures necessary
to monitor, compile and analyze
data on ambient air quality
regulation of the modification and
construction of any stationary
source within the areas covered by
the plan
Contain adequate provisions,
prohibiting any source or other
types of emissions activity within
the country from emitting any air
pollutant
control strategies and control
measures to be undertaken within

a specified time period, including

cost-effective use of economic
incentives, management
strategies, collection action, and
environmental education and
information
Designate airsheds

hazardous wastes, emitting

poisonous and toxic fumes.
Does not include traditional smallscale method of community or
neighbourhood sanitation (siga),
etc.
Basis includes volume and toxicity
of any emitted pollutant
Industries that installs pollution
control devices or retrofit existing
facilities shall be entitle to tax
incentives
Ban on Smoking

What is an airshed?

Areas with similar climate,

meteorology and topology which
affects the interchange and
diffusion of pollutant in the
atmosphere
Areas which share common interest
or face similar development
programs, prospects or problems
Governing Board with Secretary of
DENR as chairman: Provincial
Governors, Mayors, representatives
of organizations, NGOs and private
sector.

Republic Act No. 9275

Clean Water Act

What is a nonattainment area?

Area where specific pollutant have

already exceeded ambient
standards.
Defined to prohibit new sources of
the exceeded air pollutant.
Corresponding reduction in existing
sources.
Other measures including
relocation

What you should know about

the Clean Water Act

Impose
and
collect
regular
emission fees from dischargers as
part of emission permitting system
or vehicle registration renewal
system
Basis includes volume and toxicity
of any emitted pollutant
Industries that installs pollution
control devices or retrofit existing
facilities shall be entitle to tax
incentives

What is the Clean Water Act?

The Philippine Clean Water Act of 2004
(Republic Act No. 9275) aims to protect
the countrys water bodies from pollution
from land-based sources (industries and
commercial establishments, agriculture
and community/household activities). It
provides for a comprehensive and
integrated strategy to prevent and
minimize pollution through a multisectoral and participatory approach
involving all the stakeholders.

Emission Charge System

Smoking inside a public building or

an enclosed public place including
public vehicles and other means of
transport or in any enclosed area
outside of one's private residence,
private place of work or any duly
designated smoking area is hereby
prohibited under this Act.

What are the prohibited acts

under R.A. 9275?
Among others, the Act prohibits the
following:

Ban on Incineration

Incineration is the burning of

municipal, bio-medical and

1. Discharging or depositing any

water pollutant to the water body,

or such which will impede natural

flow in the water body

13. Operate facilities that discharge or

allow to seep, willfully or through
grave negligence, prohibited
chemicals, substances, or
pollutantslisted under R.A. No.
6969, into water bodies.

2. Discharging, injecting or allowing to

enter into the soil, anything that
would pollute groundwater

14. Undertake activities or

development and expansion of
projects, or operating wastewater
treatment/sewerage facilities in
violation of P.D.1586 and its IRR.

3. Operating facilities that discharge

regulated water pollutants without
the valid required permits
4. Disposal of potentially infectious
medical waste into sea by vessels
5. Unauthorized transport or dumping
into waters of sewage sludge or
solid waste.

Highlights of the Clean Water Act

Management of water quality will either be

based on watershed, river basin or water
resources region. Water quality
management areas with similar
hydrological, hydrogeological,
meteorological or geographic conditions
which affect the reaction and diffusion of
pollutants in water bodies are to be
designated by the DENR in coordination
with the National Water Resources Board
(NWRB).

6. Transport, dumping or discharge of

prohibited chemicals, substances
or pollutants listed under Toxic
Chemicals, Hazardous and Nuclear
7. Wastes Control Act (Republic.Act
No. 6969)
8. Discharging regulated water
pollutants without the valid
required discharge permit pursuant
to this Act

9. Noncompliance of the LGU with the

Water Quality Framework and
Management Area Action Plan
10. Refusal to allow entry, inspection
and monitoring as well as access to
reports and records by the DENR in
accordance with this Act

Who will manage these areas?

Management will be localized. Multisectoral governing boards will be
established to manage water quality
issues within their jurisdiction.

Who are the members of the

Governing Boards?
Governing Boards shall be composed of
representatives of mayors and governors
as well as local government units,
representatives of relevant national
government agencies, duly registered
non-government organizations, the
concerned water utility sector and the
business sector.

11. Refusal or failure to submit reports

and/or designate pollution control
officers whenever required by the
DENR in accordance with this Act
12. Directly using booster pumps in the
distribution system or tampering
with the water supply in such a
way to alter or impair the water
quality

How will water quality be

managed?

What are the functions of the

Governing Boards?

The Governing Boards will formulate

strategies to coordinate policies necessary
for the effective implementation of this
Act. They will create a multi-sectoral group
to establish and effect water quality
surveillance and monitoring.

aquifers, and the needs of emergency

response, clean up or rehabilitation.

The following are among the fines and

penalties for violators of this Act and its
IRR:
Upon the recommendation of the Pollution
Adjudication Board (PAB), anyone who
commits prohibited acts such as
discharging untreated wastewater into any
water body will be fined for every day of
violation, the amount of not less than Php
10,000 but not more than Php 200,000.
Failure to undertake clean-up operations
willfully shall be punished by
imprisonment of not less than two years
and not more than four years. This also
includes a fine of not less than Php 50,000
and not more than Php 100,000 per day of
violation. Failure or refusal to clean up
which results in serious injury or loss of life
or lead to irreversible water contamination
of surface, ground, coastal and marine
water shall be punished with
imprisonment of not less than 6 years and
1 day and not more than 12 years and a
fine of Php 500,000/day for each day the
contamination or omission continues.
In cases of gross violation, a fine of not
less than Php 500,000 but not more than
Php 3,000,000 will be imposed for each
day of violation. Criminal charges may
also be filed.

How will discharges of

wastewater be controlled?
All owners or operators of facilities that
discharge wastewater are required to get
a permit to discharge from the DENR or
the Laguna Lake Development Authority.
Existing industries without any permit are
given 12 months from the effectivity of the
implementing rules and regulations (IRR)
promulgated pursuant to this Act to secure
a permit to discharge.

How will the discharge of

wastewater be discouraged?
Anyone discharging wastewater into a
water body will have to pay a wastewater
charge. This economic instrument which
will be developed in consultation with all
concerned stakeholders is expected to
encourage investments in cleaner
production and pollution control
technologies to reduce the amount of
pollutants generated and discharged.
Effluent trading per management area will
also be allowed.
Rewards will also be given to those whose
wastewater discharge is better than the
water quality criteria of the receiving body
of water. Fiscal and non-fiscal incentives
will also be given to LGUs, water districts,
enterprise, private entities and individuals
who develop and undertake outstanding
and innovative projects in water quality
management.
What safeguards are provided

for?

All possible dischargers are required to put

up an environmental guarantee fund (EGF)
as part of their environmental
management plan. The EGF will finance
the conservation of watersheds and

What are the fines and

penalties imposed on polluters?

Who should implement the

Clean Water Act?
The DENR is the primary government
agency responsible for the implementation
and enforcement of this Act, with the
support of other government
organizations, local government units, non
-government organizations and the private
sector.
Towards this end, the DENR will review
and set affluent standards, review and
enforce water quality guidelines, classify
groundwater sources and prepare a
national groundwater vulnerability map,
classify or reclassify water bodies,

establish internationally accepted

procedures for sampling and analysis,
prepare an integrated water quality
management framework and
subsequently prepare 10-year
management plans for each water
management area.
The roles of other key government
agencies are:
The Philippine Coast Guard shall
enforce water quality standards in marine
waters, specifically from offshore sources.
The Department of Public Works and
Highways through its attached agencies
shall provide sewerage and sanitation
facilities, and the efficient and safe
collection, treatment and disposal of
sewage within their area of jurisdiction.
The Department of Agriculture shall
formulate guidelines for the re-use of
wastewater for irrigation and other
agricultural uses and for the prevention,
control and abatement of pollution from
agricultural and aquaculture activities.
The Department of Health shall set,
revise and enforce drinking water quality
standards.
The Department of Science and
Technology shall evaluate, verify,
develop and disseminate pollution
prevention and cleaner production
technologies.
The Department of Education,
Commission on Higher Education,
Department of Interior and Local
Government, and the Philippine
Information Agency shall prepare and
implement a comprehensive and
continuing public education and
information program.

Republic Act 9483

Oil Pollution Compensation Act of
2007
What you should know about the Oil
Pollution Compensation Act of 2007

What is the Oil Pollution

Compensation Act of 2007?

The State, in the protection of its marine

wealth in its archipelagic waters, territorial
sea and exclusive economic zone, adopts
internationally accepted measures which
impose strict liability for Oil Pollution
Damage and ensure prompt and adequate
compensation for persons who suffer such
damage. This Act adopts and implements
the provisions of the 1992 International
Convention on Civil Liability for Oil
Pollution Damage and the 1992
International Convention on the
Establishment of an International Fund for
Compensation for Oil Pollution Damage.
Highlights of the Oil Pollution
Compensation Act of 2007

What is the scope of

application of the said law?
This law shall apply exclusively to Pollution
Damage caused in Philippine territory,
including its territorial sea and its
exclusive economic zone, and to
preventive measures, wherever taken, to
prevent or minimize such damage.

Who are liable?

The Owner of the Ship at the time of an
Incident, or where the Incident consists of
a series of occurrences, at the time of the
first such occurrence, shall be liable for
any Pollution Damage caused by the Ship
as a result of the Incident. Such damages
shall include, but not limited to:
(a) Reasonable expenses actually
incurred in clean-up operations at
sea or on shore;
(b) Reasonable expenses of
Preventive Measures and further
loss or damage caused by
preventive measures;
(c) Consequential loss or loss of
earnings suffered by Owners or
users of property contaminated or
damaged as a direct result of an
Incident;

(d) Pure economic loss or loss of

earnings sustained by persons
although the property
contaminated or damaged as a
direct result of an Incident does not
belong to them;
(e) Damage to human health or
loss of life as a direct result of the
Incident, including expenses for
rehabilitation and
recuperation: Provided, That costs
of studies or diagnoses to
determine the long-term damage
shall also be included; and
(f) Environmental damages and
other reasonable measures of
environmental restoration.
When an Incident involving two or more
Ships occurs and Pollution Damage results
therefrom, the Owners of all the Ships
concerned, unless exonerated under
Section 7 hereof, shall be jointly and
severally liable for all such damage which
is not reasonably separable, without
prejudice, however, to the right of
recourse of any of such Owners to proceed
against each other or third parties.

Is there an exempting
circumstances?
No liability as stated in the immediately
preceding section shall attach to the
Owner or his insurer if he proves that the
damage:
(a) Resulted from an act of war,
hostilities, civil war, insurrection or
a natural phenomenon of an
exceptional, inevitable and
irresistible character;
(b) Was wholly caused by an act or
omission done with intent to cause
damage by third party; and
(c) Was wholly caused by the
negligence or other wrongful act of
the government or other
enforcement agencies responsible

for the maintenance of lights or

other navigational aids in the
exercise of that function. If the
Owner proves that the Pollution
Damage resulted wholly or partially
either from an act or omission done
with intent to cause damage by the
person who suffered the damage or
from the negligence of that person,
the Owner may be exonerated
wholly or partially from his liability
to such person.

Who are the person exempted

from compensation claims for
pollution damage?
No claim for compensation Pollution
Damage under this Act may be made
against:
(a) The servants or agents of the
Owner or the members of the crew;
(b) The pilot or any other person
who, without being a member of
the crew, performs services for the
Ship;
(c) Any charterer, howsoever
described, including a bareboat
charterer, manager or operator of
the Ship;
(d) Any person performing salvage
operations with the consent of the
Owner or on the instructions of a
competent public authority;
(e) Any person taking Preventive
Measures; and
(f) All servants or agents of persons
mentioned in paragraphs (c), (d)
and (e) hereof, unless the damage
resulted from their personal act or
omission, committed with the
intent to cause such damage, or
committed recklessly and with
knowledge that such damage
would probably result: Provided,
That nothing in this Act shall

prejudice any right of recourse of

the Owner against third parties.

What are the government

agencies involved?
MARINA Maritime Industry Authority
Constitution of Fund
Compulsory Insurance and
Certification
PCG Philippine Coast Guard
Inspections of certificates
Investigate, motu proprio or
through compensation or violation
of this Act, and shall forthwith file
appropriate action with the RTC.
It shall likewise provide the
complainant necessary technical
evidence or any assistance,
whether or not testimonial or
documentary, insofar as the claim
for compensation or violation of
this Act is concerned.
PPA Philippine Ports Authority
DOTC Department of Tansportation and
Communication
Lead agency
Implementing Rules and
Regulations
Oil Pollution Management Fund

How can marine pollution

specifically oil pollution be prevented
by this law?
SYSTEM OF COMPULSORY INSURANCE
AND CERTIFICATION
Maintenance of Compulsory
Insurance or Other Financial
Security. - AU Owners shall be required
annually by the MARINA to maintain
insurance or other financial security for
Pollution Damage in the sums fixed by

applying the limits of liability under

Section 10 of this Act.
Issuance of a Certificate. - A certificate
attesting that an insurance or any other
financial security is in force in accordance
with the provisions of this Act shall be
issued to each Ship carrying more than
two thousand (2,000) tons of Oil in bulk as
cargo by the MARINA. With respect to a
Ship not registered in a conventionmember State, such certificate may be
issued or certified by the MARINA. This
certificate shall be in the form established
by the 1992 Civil Liability Convention and
shall contain the following particulars:
(a) Name of Ship and port of
registration;
(b) Name and principal place of
business of the Owner;
(c) Type of security;
(d) Name and principal place of
business of the insurer or other
person giving security and, where
appropriate, place of business
where the insurance or security is
established; and
(e) Validity period of the certificate
which shall not be longer than the
period of validity of the insurance
or other financial security.
Enforcement. - Ship carrying more than
two thousand (2,000) tons of Oil in bulk as
cargo shall not be allowed entry into
Philippine territory or its exclusive
economic zone without a valid certificate
of insurance or financial security for
Pollution Damage required by this Act.
For this purpose, the PPA or any other port
authorities shall deny port services to said
Ship without such certificate.
If any such Ship is found within the said
territory or zone without such certificate,
said Ship shall be prevented from loading
or unloading its cargo until it is able to
produce the appropriate insurance or

financial security duly certified by the

State of its registry if such country is a
convention- member State, otherwise,
issued or certified by the MARINA or any
convention-member State.

in a calendar year, when aggregated with

the quantity of contributing Oil received in
the Philippines in that year by its
subsidiary or affiliate corporation, exceeds
one hundred fifty thousand (150,000)
tons, said person, including its
subsidiaries, shall pay contributions in
respect of the actual quantity received by
each, notwithstanding that the actual
quantity received by each did not exceed
one hundred f a y thousand (150,000)
tons.

The Owner and master of the Ship referred

to in the immediately preceding paragraph
shall be jointly and severally liable to the
fines set forth in this Act. Such Ship shall
be prevented from leaving unless the
appropriate fines shall have been paid to
the full satisfaction of the MARINA.

Reporting of Contributing Oil. - Any

person who, in a calendar year, has
received in the territory of the Philippines
contributing Oil, as defined in this Act,
shall, not later than February 1 of the
following year, report to the Department
of Energy (DOE) the quantity of such Oil
received. The DOE, through the
Department of Foreign Affairs, shall
communicate the data at a time and in the
manner prescribed by the 1992 Fund
Convention.

The PCG shall conduct inspections of

certificates of Ships entering the territory
of the Philippines, or, in the case of Ships
registered in the Philippines voyaging
within the said territory: Provided That
such inspections shall not cause undue
delay to the Ships.
What safeguards are provided

for?

CONTRIBUTION TO THE
INTERNATIONAL OIL POLLUTION
COMPENSATION FUND
Contributions to the International Oil
Pollution Compensation (IOPC) Fund. Any person who has received more than
one hundred fifty thousand (150,000) tons
of contributing Oil in a calendar year in all
ports or terminal installations in the
Philippines through carriage by sea, shall
pay contributions to the International Oil
Pollution Compensation (IOPC) Fund in
accordance with the provisions of the
1992 Fund Convention.
A person shall be deemed to have
received contributing Oil, for contribution
purposes, if he received the same:
(a) From another country; or
(b) From another port or terminal
installation within the Philippines,
notwithstanding that it had already
been previously received by him.
Where the quantity of contributing Oil
received by any person in the Philippines

How can an action be instituted

if violation occurs?
Action for Compensation. - An action
for compensation on account of Pollution
Damage resulting from the Incident which
occurred in the territory may be brought
before the RTC against the following
persons:
(a) Owner of the polluting Ship; or
(b) Insurer or other person
providing financial security of the
said Owners liability for pollution.
For this purpose, foreign corporation,
partnership, association or individual,
whether or not licensed to transact
business in the Philippines by any
appropriate government agencies,
providing such insurance or financial
security for Pollution Damage shall be
considered transacting or doing business
in the Philippines and shall be subject to

the jurisdiction of the regular judicial

courts of the country.

to compensation, the amount of

compensation of each claimant shall be
distributed pro rata.

Such action shall be filed within three

years of the date on which the damage
occurred, but not later than six years of
the date of the Incident.
The PCG shall investigate, motu proprio or
through compensation or violation of this
Act, and shall forthwith file appropriate
action with the RTC.
It shall likewise provide the complainant
necessary technical evidence or any
assistance, whether or not testimonial or
documentary, insofar as the claim for
compensation or violation of this Act is
concerned.
Filing of the action under this section shall
only require payment of filing fees
equivalent to ten percentum (10%) of the
regular rates established therefore by the
Supreme Court of the Philippines.
However, indigent plaintiff shall be exempt
from payment of docket and other lawful
fees, and of transcripts of stenographic
notes which the court may order to be
furnished him. The amount of the docket
and other lawful fees which the indigent
was exempted from paying shall be a lien
on any judgment rendered in the case
favorable to the indigent, unless the court
otherwise provides.
Adjudication or Settlement of
Claims. - The RTC shall decide claims for
compensation or certify the compromise
agreement by the parties within a
reasonable period.
Where compensation was not obtained or
satisfied under the 1992 Civil Liability
Convention, the claimant may seek
compensation under the 1992 Fund
Convention. The RTC shall furnish the IOPC
Fund with its certified decision, together
with pertinent documents, on a claim for
Pollution Damages.
Where the fund under the 1992 Civil
Liability Convention is insufficient to
satisfy the claims of those who are entitled

Intervention by the IOPC Fund - The

IOPC Fund may intervene as a party to any
legal proceedings instituted against the
Owner of a Ship or his guarantor under
Article IX of the 1992 Civil Liability
Convention.

What are considered violation

and penalties provided for this Act?
The following acts shall be considered
violations of the Act and the persons
responsible shall suffer the corresponding
fines:
(a) Any person who fails to institute or
maintain insurance or other financial
security required under Section 12 of this
Act;
(1) Ships of 500 gross tons (GRT)
and below - not less than One
hundred thousand pesos
(P100,000.00) but not more than
Two hundred-fifty thousand pesos
(P250,000.00);
(2) Ships of above 500 to 1,000
GRT - not less than Two hundred
fifty thousand pesos (P250,000.00)
but not more than Five hundred
thousand pesos (P500,000.00);
(3) Ships of above 1,000 to 5,000
GRT - not less than Five hundred
thousand pesos (P500,000.00) but
not more than One million pesos
(P1,000,000.00);
(4) Ships of above 5,000 to 10,000
GRT - not less than One million
pesos (P1,000,000.00) but not
more than Five million pesos
(P5,000,000.00);
(5) Ships of above 10,000 to
20,000 GRT - not less than Five
million pesos (P5,000,000.00) but
not more than Ten million pesos
(P10,0000,000.00); and
(6) Ships of above 20,000 GRT - not
less than Ten million pesos

(P10,000,000.00) but not more

than Fifteen million pesos
(P15,000,000.00).
(b) The Owner and the master of a Ship
who operate a Ship without maintaining
on board a certificate of insurance
required under Section 13 of this Act:
(1) First violation - Five hundred
thousand pesos (P500,000.00);
(2) Second violation - One million
pesos (P1,000,000.00); and
(3) Third violation - One million five
hundred thousand pesos
(P1,500,000.00).
(c) Any person required under Section 15
of this Act to contribute to the IOPC Fund
but nevertheless fails to comply therewith
after due notice by the MARINA
(1) First violation - Three million
pesos (P3,000,000.00);
(2) Second violation - Four million
pesos (P4,000,000.00); and
(3) Third violation - Five million
pesos (P5,000,000.00).
(d) Failure to Submit Report of
Contributing Oil. - Any person required
under Section 16 of this Act to submit
report of contributing Oil and
notwithstanding l0.day notice thereto, fails
to comply therewith:

The fines prescribed in this Section and

other sections of this Chapter shall be
increased by at least ten percent (10%)
every three years to compensate for
inflation and to maintain the deterrent
function of such fines.

CASES
LA BUGAL BLAAN TRIBAL
ASSOCIATION INC., et. al. v. VICTOR
O. RAMOS, Secretary Department of
Environment and Natural Resources;
HORACIO RAMOS, Director, Mines and
Geosciences Bureau (MGB-DENR);
RUBEN TORRES, Executive Secretary;
and WMC (PHILIPPINES) INC.
G.R. No. 127882, 27 January 2004, En
Banc (Carpio-Morales, J.)
The constitutional provision allowing the
President to enter into FTAA is a exception
to the rule that participation in the
nations natural resources is reserved
exclusively to Filipinos. Provision must be
construed strictly against their enjoyment
by non-Filipinos.

(1) First violation - Five hundred

thousand pesos (P500,000.00);
(2) Second violation - One million
pesos (P 1,000,000.00); and
(3) Third violation - One million five
hundred thousand pesos
(P1,500,000.00).
(e) Any person who shall refuse, obstruct,
or hamper the entry of the duly authorized
representatives of the Department or any
person authorized under this Act aboard
any Ship or establishment pursuant to this
Act shall be liable to pay a fine not
exceeding One hundred thousand pesos
(P100,000.00); and

FACTS: RA 7942 (The Philippine Mining

Act) took effect on April 9, 1995. Before
the effectivity of RA 7942, or on March 30,
1995, the President signed a Financial and
Technical Assistance Agreement (FTAA)
with WMCP, a corporation organized under
Philippine laws, covering close to 100,000
hectares of land in South Cotabato, Sultan
Kudarat, Davao del Sur and North
Cotabato. On August 15, 1995, the
Environment Secretary Victor Ramos
issued DENR Administrative Order 95-23,
which was later repealed by DENR
Administrative Order 96-40, adopted on
December 20, 1996.

(f) Any Ship apprehended for violation of

this Act may be subjected to detention.

Petitioners prayed that RA 7942, its

implementing rules, and the FTAA
between the government and WMCP be

declared unconstitutional on ground that

they allow fully foreign owned
corporations like WMCP to exploit, explore
and develop Philippine mineral resources
in contravention of Article XII Section 2
paragraphs 2 and 4 of the Charter.
In January 2001, WMC - a publicly listed
Australian mining and exploration
company - sold its whole stake in WMCP to
Sagittarius Mines, 60% of which is owned
by Filipinos while 40% of which is owned
by Indophil Resources, an Australian
company. DENR approved the transfer and
registration of the FTAA in Sagittarius
name but Lepanto Consolidated assailed
the same. The latter case is still pending
before the Court of Appeals.
EO 279, issued by former President
Aquino on July 25, 1987, authorizes the
DENR to accept, consider and evaluate
proposals from foreign owned
corporations or foreign investors for
contracts or agreements involving wither
technical or financial assistance for large
scale exploration, development and
utilization of minerals which upon
appropriate recommendation of the
(DENR) Secretary, the President may
execute with the foreign proponent.
WMCP likewise contended that the
annulment of the FTAA would violate a
treaty between the Philippines and
Australia which provides for the protection
of Australian investments.
ISSUES:
1. Whether or not the Philippine
Mining Act is unconstitutional for
allowing fully foreign-owned
corporations to exploit the
Philippine mineral resources.
2. Whether or not the FTAA between
the government and WMCP is a
service contract that permits
fully foreign owned companies to
exploit the Philippine mineral
resources.
HELD:

First Issue: RA 7942 is

Unconstitutional
RA 7942 or the Philippine Mining Act of
1995 is unconstitutional for permitting
fully foreign owned corporations to exploit
the Philippine natural resources.

Article XII Section 2 of the 1987

Constitution retained the Regalian
Doctrine which states that All lands of
the public domain, waters, minerals, coal,
petroleum, and other minerals, coal,
petroleum, and other mineral oils, all
forces of potential energy, fisheries,
forests or timber, wildlife, flora and fauna,
and other natural resources are owned by
the State. The same section also states
that, the exploration and development
and utilization of natural resources shall
be under the full control and supervision
of the State.
Conspicuously absent in Section 2 is the
provision in the 1935 and 1973
Constitution authorizing the State to grant
licenses, concessions, or leases for the
exploration, exploitation, development, or
utilization of natural resources. By such
omission, the utilization of inalienable
lands of the public domain through
license, concession or lease is no longer
allowed under the 1987 Constitution.
Under the concession system, the
concessionaire makes a direct equity
investment for the purpose of exploiting a
particular natural resource within a given
area. The concession amounts to
complete control by the concessionaire
over the countrys natural resource, for it
is given exclusive and plenary rights to
exploit a particular resource at the point
of extraction.
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
assistance. The management and the

operation of the mining activities by

foreign contractors, the primary feature of
the service contracts was precisely the
evil the drafters of the 1987 Constitution
sought to avoid.
The constitutional provision allowing the
President to enter into FTAAs is an
exception to the rule that participation in
the nations natural resources is reserved
exclusively to Filipinos. Accordingly, such
provision must be construed strictly
against their enjoyment by non-Filipinos.
Therefore, RA 7942 is invalid insofar as
the said act authorizes service contracts.
Although the statute employs the phrase
financial and technical agreements in
accordance with the 1987 Constitution, its
pertinent provisions actually treat these
agreements as service contracts that
grant beneficial ownership to foreign
contractors contrary to the fundamental
law.
The underlying assumption in the
provisions of the law is that the foreign
contractor manages the mineral resources
just like the foreign contractor in a service
contract. By allowing foreign contractors
to manage or operate all the aspects of
the mining operation, RA 7942 has, in
effect, conveyed beneficial ownership
over the nations mineral resources to
these contractors, leaving the State with
nothing but bare title thereto.
The same provisions, whether by design
or inadvertence, permit a circumvention
of the constitutionally ordained 60-40%
capitalization requirement for
corporations or associations engaged in
the exploitation, development and
utilization of Philippine natural resources.
When parts of a statute are so mutually
dependent and connected as conditions,
considerations, inducements or
compensations for each other as to
warrant a belief that the legislature
intended them as a whole, then if some
parts are unconstitutional, all provisions
that are thus dependent, conditional or
connected, must fail with them.

Under Article XII Section 2 of the 1987

Charter, foreign owned corporations are
limited only to merely technical or
financial assistance to the State for large
scale exploration, development and
utilization of minerals, petroleum and
other mineral oils.
Second Issue: RP Government-WMCP
FTAA is a Service Contract
The FTAA between he WMCP and the
Philippine government is likewise
unconstitutional since the agreement
itself is a service contract.
Section 1.3 of the FTAA grants WMCP a
fully foreign owned corporation, the
exclusive right to explore, exploit, utilize
and dispose of all minerals and byproducts that may be produced from the
contract area. Section 1.2 of the same
agreement provides that EMCP shall
provide all financing, technology,
management, and personnel necessary
for the Mining Operations.

These contractual stipulations and related

provisions in the FTAA taken together,
grant WMCP beneficial ownership over
natural resources that properly belong to
the State and are intended for the benefit
of its citizens. These stipulations are
abhorrent to the 1987 Constitution. They
are precisely the vices that the
fundamental law seeks to avoid, the evils
that it aims to suppress. Consequently,
the contract from which they spring must
be struck down.

SOUTHEAST MINDANAO GOLDMINING

CORP. vs. BALITE PORTALMINING
COOP., et al.[G.R. No. 135190, April 3,
2002]
FACTS:
On March 10, 1988, Marcopper Minin
g Corporation (Marcopper) was grantedEx

ploration Permit No. 133 (EP No. 133) over

4,491 hectares of land, which included
the Diwalwal area. On June 27, 2991,
Congress enacted Republic Act No. 7076,
or the People's SmallScale Mining Act. The law established a Pe
ople's Small-scale Mining Program to be
implemented by the Secretary of the
DENR and created the Provincial Mining
Regulatory Board (PMRB) under the DENR
Secretary's direct supervision and control.
Subsequently, a petition for the
cancellation of EP No. 133 and the
admission of a Mineral Production Sharing
Arrangement (MPSA) proposal over
Diwalwal was filed before the DENR
Regional Executive Director, docketed as
RED Mines Case.
On February 16, 1994, while the
RED Mines case was pending, Marcopper
assigned its EP No. 133 to petitioner
Southeast Mindanao Gold Mining
Corporation (SEM), which in turn applied
for an integrated MPSA over the land
covered by the permit. In due time, the
Mines and Geosciences Bureau Regional
Office No. XI in Davao City (MGB-XI)
accepted and registered the integrated
MPSA application of petitioner and
thereafter, several MAC cases were filed.
On March 3, 1995, Republic Act
No. 7942, the Philippine Mining Act, was
enacted. Pursuant to this statute, the MAC
cases were referred to a Regional Panel of
Arbitrators (RPA) tasked to resolve
disputes involving conflicting mining
rights. The RPA subsequently
took cognizance of the RED Mines case,
which was consolidated with the MAC
cases.
On June 24, 1997, the DENR
Secretary issued Memorandum Order No.
97-03
whichprovided that the DENR shall study t
horoughly and exhaustively the option of d
iret state utilization of the mineral
resources in the Diwalwal Gold-Rush Area.

On July 16, 1997, petitioner filed

a special civil action for certiorari,
prohibition and mandamus before the
Court of Appeals against PMRB-Davao, the
DENR Secretary and Balite Communal
Portal Mining Cooperative (BCPMC). It
prayed for the nullification of the abovequoted Memorandum Order No. 97-03 on
the ground that the "direct state
utilization" espoused therein would
effectively impair its vested rights under
EP No. 133; and that the memorandum
order arbitrarily imposed the unwarranted
condition that certain studies
be conducted before mining and
environmental laws are enforced by the
DENR.
ISSUE:
Whether or not the "direct state
utilization scheme" espoused in MO 9703 divested petitioner of its vested right to
the gold rush area under its EP No. 133.
HELD:
No. MO 97-03 did not
conclusively adopt "direct state utilization"
as a policy in resolving the Diwalwal
dispute. The terms of the memorandum
clearly indicate that what was directed
hereunder was merely a study of this
option and nothing else. Contrary to
petitioner's contention, it did not grant
any management/operating or profitsharing agreement to small-scale miners
or to any party, for that matter, but simply
instructed the DENR officials concerned
to undertake studies to determine its
feasibility. As to the alleged "vested rights"
claimed by petitioner, it is well to note
that the same is invariably based on EP
No. 133, whose validity is still being
disputed in the Consolidated Mines
cases. A reading of the appealed MAB
decision reveals that the continued
efficacy of EP No. 133 is one of the issues
raised in said cases, with respondents
therein asserting that Marcopper cannot
legally assign the permit which
purportedly had expired. In other words,
whether or not petitioner actually has a

vested right over Diwalwal under EP No.

133 is still an indefinite and unsettled
matter. And until a positive
pronouncement is made by the appellate
court in the Consolidated Mines cases, EP
No. 133 cannot be deemed as a source of
any conclusive rights that can be impaired
by the issuance of MO 97-03. It must
likewise be pointed out that under no
circumstances may petitioner's rights
under EP No. 133 be regarded as total and
absolute. As correctly held by the Court
of Appeals EP No.133 merely evidences a
privilege granted by the State, which may
be amended, modified or rescinded when
the national interest so requires. This is
necessarily so since the
exploration, development and utilization of
the country's natural mineral resources
are matters impressed with great public
interest. Like timber permits, mining
exploration permits do not vest in the
grantee any permanent or irrevocable
right within the purview of the nonimpairment of contract and due process
clauses of the Constitution, since the
State, under its all-encompassing police
power, may alter, modify or amend the
same, in accordance with the demands of
the general
welfare. Additionally, there can
be no valid opposition raised
against a mere study of an alternative
which the State, through the DENR, is
authorized to undertake in the first place.
Worth noting is Article XII, Section 2, of the
1987 Constitution and Section 4, Chapter
II of the Philippine Mining Act of 1995.
Thus, the State may pursue the
constitutional policy of full control and
supervision of the exploration,
development and utilization of the
country's natural mineral resources, by
either directly undertaking the same or by
entering into agreements with qualified
entities. The DENR Secretary acted within
his authority when he ordered a study of
the first option, which may be undertaken
consistently in accordance with the
constitutional policy enunciated above.
Obviously, the State may not be precluded

from considering a direct takeover of the

mines, if it is the only plausible remedy in
sight to the gnawing complexities
generated by the gold rush.
The Province of Rizal, et al.o vs.
Executive Secretary, et al, G.R. No.
129546, Dec. 13, 2005
Sanitary Landfill
Principle

The Reorganization Act of DENR

defines and limits it powers over
the natural resources of the
country.
The Administrative Code of 1987
and E.O 192 entrust the DENR with
the guardianship and safe keeping
of the Marikina Watershed
Reservation and our other natural
treasure.

Facts:
At the height of the garbage crisis
plaguing Metro Manila and its environs,
parts of the Marikina Watershed
Reservation were set aside by the Office of
the President, through Proclamation No.
635 dated 28 August 1995, for use as a
sanitary landfill and similar waste disposal
applications. This site, extending to more
or less 18 hectares, had already been in
operation since 19 February 1990 for the
solid wastes of Quezon City, Marikina, San
Juan, Mandaluyong, Pateros, Pasig, and
Taguig.
On 24 November 1995, the petitioners
Municipality of San Mateo and the
residents of Pintong Bocaue, represented
by former Senator Jovito Salonga, sent a
letter to President Fidel Ramos requesting
him to reconsider Proclamation No. 635.
Receiving no reply, they sent another
letter on 02 January 1996 reiterating their
previous request.
On 22 JuIy 1996, the petitioners filed
before the Court of Appeals a civil action
for certiorari, prohibition and mandamus
with application for a temporary

restraining order/writ of preliminary

injunction.
On 19 July 1999, President Joseph E.
Estrada, taking cognizance of the gravity
of the problems in the affected areas and
the likelihood that violence would erupt
among the parties involved, issued a
Memorandum ordering the closure of the
dumpsite on 31 December 2000.
Accordingly, on 20 July 1999, the
Presidential Committee on Flagship
Programs and Projects and the Metro
Manila Development Authority (MMDA)
entered into a Memorandum of Agreement
(MOA) with the Provincial Government of
Rizal, the Municipality of San Mateo, and
the City of Antipolo, wherein the latter
agreed to further extend the use of the
dumpsite until its permanent closure on
31 December 2000.
On 11 January 2001, President Estrada
directed Department of Interior and Local
Govemment (DILG) Secretary Alfredo Lim
and MMDA Chairman Binay to reopen the
San Mateo dumpsite "in view of the
emergency situation of uncollected
garbage in Metro Manila, resulting in a
critical and imminent health and
sanitation epidemic." Claiming the above
events constituted a "clear and present
danger of violence erupting in the affected
areas," the petitioners filed an Urgent
Petition for Restraining Order on l9 January
2001.
On 24 January 2001, the Supreme Court
issued the Temporary Restraining Order
prayed for, "effective immediately and
until further orders." Meanwhile , on 26
January 2001, President Estrada signed
Republic Act No. 9003, otherwise known
as "The Ecological Solid Waste
Management Act of 2000," into law.
Lower Court's Ruling:
The Court of Appeals ruled in favor of
Executive Secretary, et al. The CA denied,
for lack of cause of action, the petition for
certiorari, prohibition and mandamus with

application for a temporary restraining

order/writ of preliminary injunction
assailing the legality and constitutionality
of Proclamation No. 635. M DG-F 1919;
Enhancing Access to and Provision of
Water Services with the Active
Participation of the Poor for the
Compilation and Analysis of Jurisprudence
on Water Supply Case Digests with
Analysis of Development lmplications
Issues:
Whether the permanent closure of the San
Mateo landfill is mandated by Rep. Act. No.
9003; and Whether Proclamation No. 635
is constitutional.
Supreme Court's Ruling:
The Supreme Court ruled in favor of the
Province of Rizal, et al. and reversed and
set aside the decision of the Court of
Appeals. The San Mateo Landfill will
remain permanently closed. There is an
added need to reassure the residents of
the Province of Rizal that this is indeed a
final resolution of this controversy, for a
brief review of the records of this case
indicates two self-evident facts.
First, the San Mateo site has adversely
affected its environs, and second, sources
of water should always be protected. As to
the first point, the adverse effects of the
site were reported as early as 19 June
1989, when the Investigation Report of the
Community Environment and Natural
Resources Officer of Department of
Environment and Natural Resources
(DENR)-IV-l stated that the sources of
domestic water supply of over one
thousand families would be adversely
affected by the dumping operations.
The succeeding report included the
observation that the use of the areas as
dumping site greatly affected the
ecological balance and environmental
factors of the community. Respondent
Laguna Lake Development Authority
(LLDA) in fact informed the MMDA that the
heavy pollution and risk of disease

generated by dumpsites rendered the

location of a dumpsite within the Marikina
Watershed Reservation incompatible with
its program of upgrading the water quality
of the Laguna Lake.
The DENR suspended the site's
Environmental Compliance Certificate
(ECC) after investigations revealed ground
slumping and erosion had resulted from
improper development of the site. Another
Investigation Report submitted by the
Regional Technical Director to the DENR
reported respiratory illnesses among
pupils of a primary school located
approximately 100 meters from the site,
as well as the constant presence of large
flies and windblown debris all over the
school's playground. It further reiterated
reports that the leachate treatment plant
had been eroded twice already,
contaminating the nearby creeks that
were sources of potable water for the
residents. The contaminated water was
also found to flow to the Wawa Dam and
Boso-Boso River, which in turn empties
into Laguna de Bay.
This brings to the second self-evident
point. Water is life, and must be saved at
all costs. In Collado v. Court of Appeals,
the Supreme Court had occasion to
reaffirm its previous discussion in Sta.
Rosa Realty Development Corporation v.
Court of Appeals, on the primordial
importance of watershed areas, thus: "The
most important product of a watershed is
water, which is one of the most important
human necessities. The protection of
watersheds ensures an adequate supply of
water for future generations and the
control of flashfloods that not only
damage property but also cause loss of
lives. Protection of watersheds is an
"intergenerational" responsibility that
needs to be answered now. The
Reorganization Act of the DENR Defines
and Limits Its Powers over the Country's
Natural Resources The Administrative
Code of 1987 and Executive Order No. 192
entrust the DENR with the guardianship
and safekeeping of the Marikina

Watershed Reservation and our other

natural treasures. However. although the
DENR, an agent of the government, owns
the MDG-F 1919: Enhancing Access to and
Provision of Water Services with the Active
Particapation of the Poor for the
Compilation and Analysis of Jurisprudence
on Water Supply Marikina Reserve and has
jurisdiction over the same, this power is
not absolute, but is defined by the
declared policies of the state, and is
subject to the law and higher authority.
The Local Government Code Gives to
Local Government Units All the Necessary
Powers to Promote the General Welfare of
Their Inhabitants Under the Local
Government Code, two requisites must be
met before a national project that affects
the environmental and ecological balance
of local communities can be implemented:
prior consultation with the affected local
communities, and prior approval of the
project by the appropriate sanggunian
Absent either of these mandatory
requirements, the project's
implementation is illegal. Waste Disposal
is regulated by the Ecological Solid Waste
Management Act of 2000. The Ecological
Sold Waste Management Act of 2000
mandates the formulation of a National
Solid Waste Management Framework,
which should include, among other things,
the method and procedure for the
phaseout and the eventual closure within
eighteen months from effectivity of the
Act in case of existing open dumps and/or
sanitary landfills located within an aquifer,
groundwater reservoir or watershed area.
Any landfills subsequently developed must
comply with the minimum requirements
laid down in Section 40, specifically that
the site selected must be consistent with
the overall land use plan of the local
government unit, and that the site must
be located in an area where the landfill's
operation will not detrimentally affect
environmentally sensitive resources such
as aquifers, groundwater reservoirs or
watershed areas. Having declared
Proclamation No. 635 illegal, the Supreme
Court sees no compelling need to tackle

the remaining issues raised in the petition

and the parties' respective memoranda

---NOTHING FOLLOWS---