Professional Documents
Culture Documents
Blacks (Sixth edition, 1990), defined natural resources as any The Congress may, by law, allow small-scale utilization of natural
material in its native state which when extracted has economic resources by Filipino citizens, as well as cooperative fish farming,
value. Basically it states that for a substance or feature to be with priority to subsistence fishermen and fish- workers in rivers,
classified as a natural resource, it must offer potential or actual lakes, bays, and lagoons.
economic value, creating wealth.
The President may enter into agreements with foreign-owned
corporations involving either technical or financial assistance for
Definition of Natural Resources : Other Websites large-scale exploration, development, and utilization of minerals,
petroleum, and other mineral oils according to the general terms
Natural resource is any naturally occurring substance or feature of and conditions provided by law, based on real contributions to the
the environment (physical or biological) that, while not created by economic growth and general welfare of the country. In such
human effort, can be exploited by humans to satisfy their needs or agreements, the State shall promote the development and use of
wants. Many of such resources are our life line such as water, air local scientific and technical resources.
and solar radiation, which are essential elements for the existence
of all the flora and fauna.
The Concept of Jure Regalia (Regalian Doctrine)
Two basic conditions for a substance or feature to be classified as This principle means that all natural wealth - agricultural, forest or
a natural resource: First, the resource must exist naturally in the timber, and mineral lands of the public domain and all other
environment; that is, not synthetically produced by human beings, natural resources belong to the State. Thus, even if the private
such as in a laboratory or factory. Second, the resource must be person owns the property where minerals are discovered, his
able to be exploited by humans to directly satisfy a need or want. ownership for such does not give him the right to extract or utilize
said minerals without permission from the state to which such
Natural resources may either be: minerals belong.
a) Biotic resources which are derived from biosphere such
as the forests, marine organism, animals, birds and The abovementioned provision provides that except for
their products including mineral fuels come in this agricultural lands for public domain which alone may be alienated,
category, or forest or timber, and mineral lands, as well as all other natural
b) Abiotic which includes water, air, land and elemental resources must remain with the State, the exploration,
ores such as gold, silver, copper, iron etc. development and utilization of which shall be subject to its full
control and supervision albeit allowing it to enter into
It may also be either be renewable and non-renewable resources. coproduction, joint venture or production-sharing agreements, or
A renewable resource grows again or comes back again after we into agreements with foreign-owned corporations involving
use it. For example, sunlight, water, and trees are renewable technical or financial assistance for large-scale exploration,
resources. A non-renewable resource is a resource that does not development, and utilization
grow or come back, or a resource that would take a very long time
to come back. For example, coal is a non-renewable resource. Cases
All lands of the public domain, waters, minerals, coal, petroleum, Petitioners Isagani Cruz and Cesar Europa filed a case
and other mineral oils, all forces of potential energy, fisheries, for prohibition and mandamus as citizen and taxpayers,
forests or timber, wildlife, flora and fauna, and other natural assailing the constitutionality of certain provisions of
resources are owned by the State. With the exception of the Indigenous Peoples Rights Act (IPRA) and its
agricultural lands, all other natural resources shall not be implementing Rules on ground that they amount to an
alienated. The exploration, development, and utilization of natural unlawful deprivation of the States ownership over
resources shall be under the full control and supervision of the lands of public domain and minerals and other natural
State. The State may directly undertake such activities, or it may resources, in violation of the Regalian doctrine.
enter into co-production, joint venture, or production-sharing o They likewise contend that providing an all-
agreements with Filipino citizens, or corporations or associations encompassing definition of ancestral
at least sixty per centum of whose capital is owned by such domain and ancestral lands which might
even include private lands within the areas This case answered the question of which is the better
violate the rights of private land owners. basis for ownership of land: long-time occupation or
o Petitioners likewise contend that provisions paper title.
of the IPRA defining the jurisdiction and
powers of the NCIP violate due process of In this case, plaintiffs entered into peaceful occupation
law. of the subject land while defendants ourchased the
o Lastly, petitioners assail the validity of NCIP land in 1892. The Court ruled that from 1860 to 1892
Administrative Order No. 1 which provides there was no law in force in the Philippines by which
that the administrative relationship of the plaintiffs could obtain ownership by prescription,
NCIP to the Office of the President (OP) as without any action of the State, otherwise the same
lateral and autonomous relationship for shall remain the property of the State. Thus, it required
purposes of policy coordination, thereby settlers on public lands to obtain titles deeds from the
infringing upon the Presidents power of State.
control over the executive department.
A groups of intervenors, including Sen. Flavier, one of C. Public Land Acts and the Torrens System
the authors of the IPRA and members of 112 groups of
indigenous peoples prayed for the dismissal of the Act No. 926, the first Public Land Act, was passed in
petition. pursuance with the Philippine Bill of 1902, governing
The Commission of Human Rights likewise asserts that the disposition of land of public domain. It prescribe
IPRA is an expression of the principle of parens patriae rules for the homesteading, selling and leasing of
and that the State has the responsibility to protect the portions of the public domain, and to enable persons
rights of the indigenous peoples. to perfect their titles to public lands. It also provided
for the issuance of patents to certain native settlers
Decision: upon public lands.
The votes of the Court are split where 7 voted to dismiss the Act No. 926 was superseded by the Act 2874, the
petition and 7 voted to grant. As the votes were equally divided second Public Land Act, passed under the Jones Law. it
and the necessary majority was not obtained, the petition was limited the exploitation of agricultural lands to Filipinos
dismissed. and Americans and citizens of other countries which
gave the Filipinos the same privileges.
SEPARATE OPINION (Justice Puno) It was amended by Commonwealth Act No. 141which
remains the present Public Land Law.
I. The Development of the Regalian Doctrine in the Philippine
Legal System Grants of public land were brought under the
operation of the Torrens System under Act 496 which
placed all public and private lands in the Philippines
A. The Laws of Indies under the Torrens system, requiring that the
government issue an official certificate of title attesting
to the fact that the person named is the owner of the
The Regalian Doctrine or jura regalia is a Western property described.
legal concept first introduced by the Spaniards through
the Laws of Indies and the Royal Cedulas. All lands
became the exclusive dominion of the Spanish Crown, D. The Philippine Constitutions
and the Spanish Government took charge of
distributing the lands by issuing royal grants and The Regalian Doctrine was enshrined in the 1935, 1973
concessions to Spaniards. Private land titles can only be and 1987 Constitutions which basically states that all
acquired from the government by purchase or other lands of the public domain as well as natural resources,
land grant from the Crown. whether on public or private land, belong to the State.
It is this concept of state ownership that petitioners
The Law of Indies was followed by the Mortgage Law claim is being violated by the IPRA.
of 1893 which provided for the systematic registration
of titles and deeds. The Maura Law of 1894 was the
last Spanish law promulgated in the Philippines, which II. The Indigenous Peoples Rights Act
required the registration of all agricultural lands;
otherwise the lands shall revert to the state.
The IPRA recognizes the existence of the indigenous cultural
communities or indigenous peoples as a distinct sector. It
grants these people the ownership and possession of their
ancestral domains and ancestral lands, and defines the
B. Valentin vs. Murciano extent of these lands and domains. Within their ancestral
domains and lands the ICCs/IPs are given the right to self-
governance and right to preserve their culture. To carry out
the policies of the ACT, the law created the National
Commission on Indigenous Peoples (NCIP) Ancestral domains are all areas belonging to ICCs/IPs held
under a claim of ownership, occupied or possessed by
A. Indigenous Peoples ICCs/IPs since time immemorial, continuously until the
present except when interrupted by war or force majeure. It
Indigenous Cultural Communities or Indigenous Peoples comprises of lands, inland waters, coastal areas, and natural
(ICCs/ IPs) refer to a group of people who have continuously resources therein and includes ancestral lands, forests,
lived as an organized community on communally bounded pastures, hunting grounds, burial grounds, and bodies of
and defined territory. These groups of peoples have actually water, mineral and other natural resources.
occupied, possessed and utilized their territories under claim
of ownership since time immemorial. Ancestral lands are lands held by the ICCs/ IPs under the
same conditions as ancestral domains except that these are
Their unit of government is the barangay. In a baranganic limited to lands, not merely occupied and possessed but are
society, the chiefs administered the lands in the name of the also utilized, including residential lots, rice terraces, or
barangay, there was no private property in land. When Islam paddies, private forests.
was introduced in the country in the archipelago of
Maguindanao, the Sultanate of Sulu claimed jurisdiction over The delineation of ancestral domains and lands is conferred
territorial areas. on the NCIP who shall issue a Certificate of Ancestral Domain
(CADT) upon finding that the application is meritorious, in
When Spaniards settled in the Philippines, Spanish the name of the community. Ancestral Lands outside the
missionaries were ordered to establish pueblos where ancestral domain, the NCIP issues a Certificate of Land Title
church would be constructed. All the new Christian converts (CALT). The CALTs and CADTs shall be registered in the
were required to construct their house around the church. Register of Deeds in the place where property is situated.
All lands lost by the old barangays in the process of pueblo
organization and all lands not assigned to the pueblos were B. Carino vs. Insular Government
declared to be lands of the Crown., and the natives were
stripped of their ancestral rights to the lands. On June 23, 1903, Mateo Cario went to the Court of Land
Registration to petition his inscription as the owner of a 146
The American government classified the Filipinos into two: hectare land hes been possessing in the then municipality of
Christian Filipinos and non-Christian Filipinos, not to Baguio. Mateo only presented possessory information and no
religious belief, but to geographical area, the latter referring other documentation. The State opposed the petition averring
to natives of the Philippines of a low grade of civilization, that the land is part of the US military reservation. The CLR ruled
usually living in tribal relationship. The Americans pursued a in favor of Mateo. The State appealed. Mateo lost. Mateo averred
policy of assimilation. They passed Act No. 253 creating the that a grant should be given to him by reason of immemorial use
bureau of Non-Christian Tribes to determine the most and occupation.
practicable means for bring about their advancement.
The US SC ruled in favor of Carino and ordered the registration of
The 1935 Constitution did not carry any policy on the non- the subject lands in his name. The court laid down the
Christian Filipinos. It was in the 1973 Constitution that the presumption of a certain title held as far back as memory went
State recognized the customs and interest of national and under a claim of private ownership. Land held by this title is
cultural communities in the formulation of state policies. presumed to never have been public land. The registration
requirement was not to confer title, but simply to establish it. In
In 1974, President Marcos promulgated PD 410 or the a nutshell, Cario enunciated the legal presumption that ancestral
Ancestral Lands Decree, providing for the issuance of land lands and domains were not part of the public domain, having
occupancy certificates to members of the national cultural maintained their character as private lands of the indigenous
communities. peoples since time immemorial
The Aquino government shifted from the policy of Why Carino doctrine is unique?
integration to one of preservation. She created the Office of Carino is the only case that specifically recognizes native title.
Muslim Affairs, Office of Northern Cultural Communities and Carino was cited by succeeding cases to support the concept of
the Office for Southern Cultural Communities all under the acquisitive prescription under the Public Land Act
OP.
The 1987 Constitution expressly guaranteed the rights of Other Separate Opinions:
tribal Filipinos to their ancestral domain and ancestral lands.
Justice Kapunan
III. THE PROVISIONS OF THE IPRA DO NOT Regalian theory doesnt negate the native title to lands held in
CONTRAVENE THE CONSTITUTION private ownership since time immemorial, adverting to
the landmark case of CARINO V. LOCAL GOVERNMENT, where the
US SC through Holmes held: xxx the land has been held by
A. Ancestral Domains and Ancestral Lands are the Private individuals under a claim of private ownership, it will be presumed
Property of the Indigenous Peoples and do not constitute to have been held in the same way from before the Spanish
Part of the Land of Public Domain conquest, and never to have been public land. Existence of native
titie to land, or ownership of land by Filipinos by virtue of March 30, 1999, PEA and AMARI signed an Amended
possession under a claim of ownership since time immemorial and Joint Agreement, which was approved by Pres. Estrada.
independent of any grant from the Spanish crown as an exception
to the theory of jure regalia Note:
The Amended Joint Venture Agreement: The subject matter of
Justice Puno: Carino case firmly established a concept of private the Amended JVA, as stated in its second Whereas clause, consists
land title that existed irrespective of any royal grant from the State of three properties, namely:
and was based on the strong mandate extended to the Islands via
the Philippine Bill of 1902. The IPRA recognizes the existence of
1. "[T]hree partially reclaimed and substantially eroded
ICCs/IPs as a distinct sector in the society. It grants this people the
islands along Emilio Aguinaldo Boulevard in Paranaque
ownership and possession of their ancestral domains and
and Las Pinas, Metro Manila, with a combined titled
ancestral lands and defines the extent of these lands and domains
area of 1,578,441 square meters;"
2. Chavez vs. Public Estates Authority (2002)1
2. "[A]nother area of 2,421,559 square meters
Facts: contiguous to the three islands;" and
The Phil govt (through the Commissioner of Public
Highways) signed a contract with the CDCP 3. "[A]t AMARI's option as approved by PEA, an
(Construction and Development Corporation of the additional 350 hectares more or less to regularize the
Philippines) to reclaim certain foreshore and offshore configuration of the reclaimed area."
areas of Manila Bay and for the construction of the
Manila-Cavite Coastal Road.
Pres. Marcos issued P.D. 1084 creating PEA (Public PEA confirms that the Amended JVA involves "the development of
Estates Authority) and transferred to it the lands the Freedom Islands and further reclamation of about 250
reclaimed in Manila Bay for the Manila-Cavite Road hectares x x x," plus an option "granted to AMARI to subsequently
and Reclamation Project (MCCRRP). reclaim another 350 hectares x x x."
Thereafter, Pres. Aquino issued Special Patent No.
3517, granting and transferring to PEA the parcels of In short, the Amended JVA covers a reclamation area of 750
land so reclaimed under the MCCRRP. A TCT was also hectares. Only 157.84 hectares of the 750-hectare reclamation
issued in the name of PEA covering 3 reclaimed islands project have been reclaimed, and the rest of the 592.15 hectares
known as the "Freedom Islands" (157.84 hectares) are still submerged areas forming part of Manila Bay.
located at the southern portion of the Manila-Cavite
Coastal Road, Paraaque City, which were part of these
Indisputably, under the Amended JVA, AMARI will acquire and
lands acquired by PEA.
own a maximum of 367.5 hectares of reclaimed land which will
PEA entered into a Joint Venture Agreement (JVA) with
be titled in its name.
AMARI (AMARI Coastal Bay and Development
Corporation), a private corporation, to develop the
Freedom Islands.
o However, the JVA also required the Issue:
reclamation of an additional 250 hectares of
submerged areas surrounding these islands Whether the stipulations in the Amended Joint Venture
to complete the configuration in the Master Agreement or the transfer to AMARI of certain lands reclaimed
Development Plan of the Southern and still to be reclaimed violate the 1987 Constitution.
Reclamation Project-MCCRRP.
o PEA and AMARI entered into the JVA Decision:
through negotiation without public bidding.
On June 8, 1995, then President Fidel V. Ramos,
through then Executive Secretary Ruben Torres, The SC summarized the conclusions as follows:
approved the JVA.
On November 29, 1996, then Senate President Maceda 1. The 157.84 hectares of reclaimed lands comprising
delivered a privilege speech denouncing the JVA as the the Freedom Islands, now covered by certificates of
"grandmother of all scams." title in the name of PEA, are alienable lands of the
Thus the Senate Committees investigated on the public domain. PEA may lease these lands to private
matter and concluded (1) the reclaimed lands PEA corporations but may not sell or transfer ownership of
seeks to transfer to AMARI under the JVA are lands of these lands to private corporations. PEA may only sell
the public domain which the government has not these lands to Philippine citizens, subject to the
classified as alienable lands and therefore PEA cannot ownership limitations in the 1987 Constitution and
alienate these lands; (2) the certificates of title existing laws.
covering the Freedom Islands are thus void, and (3) the
JVA itself is illegal.
2. The 592.15 hectares of submerged areas of Manila
Petitioner Frank Chavez, as a taxpayer, filed the instant
Bay remain inalienable natural resources of the public
Petition for Mandamus with Prayer for Issuance of a
domain until classified as alienable or disposable lands
Writ of Preliminary Injunction and TRO.
open to disposition and declared no longer needed for
1 public service. The government can make such
Two subsequent motions for reconsideration was filed and were classification and declaration only after PEA has
denied.
reclaimed these submerged areas. Only then can these Thereafter, Aquino proclaimed MO 415 applying RA
lands qualify as agricultural lands of the public domain, 6957 to SMDRP, among others.
which are the only natural resources the government o The same MO also established EXECOM and
can alienate. In their present state, the 592.15 hectares TECHCOM in the execution and evaluation
of submerged areas are inalienable and outside the of the plan, respectively, to be assisted by
commerce of man. the Public Estates Authority (PEA).
Notices of public bidding to become NHAs venture
3. Since the Amended JVA seeks to transfer to AMARI, partner for SMDRP were published in newspapers in
a private corporation, ownership of 77.34 hectares of 1992, from which R-II Builders, Inc. (RBI) won the
the Freedom Islands, such transfer is void for being bidding process.
contrary to Section 3, Article XII of the 1987 o Then-President Ramos authorized NHA to
Constitution which prohibits private corporations from enter into a Joint Venture Agreement with
acquiring any kind of alienable land of the public RBI.
domain. Under the JVA, the project involves the clearing of
Smokey Mountain for eventual development into a low
cost housing complex and industrial/commercial site.
4. Since the Amended JVA also seeks to transfer to o RBI is expected to fully finance the
AMARI ownership of 290.156 hectares of still development of Smokey Mountain and
submerged areas of Manila Bay, such transfer is void reclaim 40 hectares of the land at the
for being contrary to Section 2, Article XII of the 1987 Manila Bay Area.
Constitution which prohibits the alienation of natural o The latter together with the commercial
resources other than agricultural lands of the public area to be built on Smokey Mountain will be
domain. PEA may reclaim these submerged areas. owned by RBI as enabling components. If
Thereafter, the government can classify the reclaimed the project is revoked or terminated by the
lands as alienable or disposable, and further declare Government through no fault of RBI or by
them no longer needed for public service. Still, the mutual agreement, the Government shall
transfer of such reclaimed alienable lands of the public compensate RBI for its actual expenses
domain to AMARI will be void in view of Section 3, incurred in the Project plus a reasonable
Article XII of the 1987 Constitution which prohibits rate of return not exceeding that stated in
private corporations from acquiring any kind of the feasibility study and in the contract as of
alienable land of the public domain. the date of such revocation, cancellation, or
termination on a schedule to be agreed
Clearly, the Amended JVA violates glaringly Sections 2 and 3, upon by both parties.
Article XII of the 1987 Constitution. Under Article 1409 of the Civil To summarize, the SMDRP shall consist of Phase I and
Code, contracts whose "object or purpose is contrary to law," or Phase II.
whose "object is outside the commerce of men," are "inexistent o Phase I of the project involves clearing,
and void from the beginning." The Court must perform its duty to levelling-off the dumpsite, and construction
defend and uphold the Constitution, and therefore declares the of temporary housing units for the current
Amended JVA null and void ab initio. residents on the cleared and levelled site.
o Phase II involves the construction of a
fenced incineration area for the on-site
disposal of the garbage at the dumpsite.
3. Chavez vs. National Housing Authority (2007) Due to the recommendations done by the DENR after
evaluations done, the JVA was amended and restated
Facts: (now ARJVA) to accommodate the design changes and
On August 5, 2004, former Solicitor General Francisco additional work to be done to successfully implement
Chavez, filed an instant petition raising constitutional the project.
issues on the JVA entered by National Housing o The original 3,500 units of temporary
Authority and R-II Builders, Inc. housing were decreased to 2,992. The
On March 1, 1988, then-President Cory Aquino issued reclaimed land as enabling component was
Memorandum order No. (MO) 161 approving and increased from 40 hectares to 79 hectares,
directing implementation of the Comprehensive and which was supported by the issuance of
Integrated Metropolitan Manila Waste Management Proclamation No. 465 by President Ramos.
Plan. The revision also provided for the 119-
o During this time, Smokey Mountain, a hectare land as an enabling component for
wasteland in Tondo, Manila, are being made Phase II of the project.
residence of many Filipinos living in a Subsequently, the Clean Air Act was passed by the
subhuman state. legislature which made the establishment of an
As presented in MO 161, NHA prepared feasibility incinerator illegal, making the off-site dumpsite at
studies to turn the dumpsite into low-cost housing Smokey Mountain necessary.
project, thus, Smokey Mountain Development and On August 1, 1998, the project was suspended, to be
Reclamation Project (SMDRP), came into place. RA later reconstituted by President Estrada in MO No. 33.
6957 (Build-Operate-Transfer Law) was passed on July On August 27, 2003, the NHA and RBI executed a
1990 declaring the importance of private sectors as Memorandum of Agreement whereby both parties
contractors in government projects.
agreed to terminate the JVA and subsequent that the reclamation of lands of public domain is
agreements. reposed first in the Philippine President.
o During this time, NHA reported that 34
temporary housing structures and 21 3. The reclaimed lands were classified alienable and
permanent housing structures had been disposable via MO 415 issued by President Aquino and
turned over by RBI. Proclamation Nos. 39 and 465 by President Ramos.
9. Whether the operative fact doctrine applies to the 8. This relief must be granted. It is the right of the Filipino
instant position people to information on matters of public concerned
as stated in Article II, Sec. 28, and Article III, Sec. 7 of
the 1987 Constitution.
Decision:
9. When the petitioner filed the case, the JVA had already
1. Executive Order 525 reads that the PEA shall be been terminated by virtue of MOA between RBI and
primarily responsible for integrating, directing, and NHA. The properties and rights in question after the
coordinating all reclamation projects for and on behalf passage of around 10 years from the start of the
of the National Government. This does not mean that projects implementation cannot be disturbed or
it shall be responsible for all. The requisites for a valid questioned. The petitioner, being the Solicitor General
and legal reclamation project are approval by the at the time SMDRP was formulated, had ample
President (which were provided for by MOs), opportunity to question the said project, but did not do
favourable recommendation of PEA (which were seen so. The moment to challenge has passed.
as a part of its recommendations to the EXECOM), and
undertaken either by PEA or entity under contract of
PEA or by the National Government Agency (NHA is a 4. Republic of the Philippines vs. Celestina Naguiat
government agency whose authority to reclaim lands (2006)
under consultation with PEA is derived under PD 727
and RA 7279). Facts:
Celestina Naguiat applied for registration of title to 4
2. Notwithstanding the need for DENR permission, the parcels of land (located in Botolan, Zambales) with RTC
DENR is deemed to have granted the authority to Zambales.
reclaim in the Smokey Mountain Project for the DENR o She claimed to have acquired it from LID
is one of the members of the EXECOM which provides Corporation, who in turn had acquired it
reviews for the project. ECCs and Special Patent Orders from Calderon, Moraga and Monje and their
were given by the DENR which are exercises of its predecessors-in-interest who have been in
power of supervision over the project. Furthermore, it possession for more than 30 years.
was the President via the abovementioned MOs that Republic of the Philippines (through the OSG) filed an
originally authorized the reclamation. It must be noted opposition to the application.
o They claim that neither Naguiat nor her In the case at bar, the CA only granted the petition
predecessors-in-interest have been in because it assumed that the lands in question are already
possession since 12 June 1945, that the alienable and disposable, which is found by the SC to not be in this
muniments of title and tax payment receipts case.
arent sufficient evidence of a bona fide
acquisition of the lands, that Naguiats Here, respondent never presented the required
Spanish title can no longer be availed of and certification from the proper government agency or official
finally, that said lands are part of the public proclamation reclassifying the land applied for as alienable and
domain and not subject of private disposable. Matters of land classification or reclassification
appropriation. cannot be assumed. It calls for proof. Aside from tax receipts,
RTC rendered a decision in favour of Naguiat and respondent submitted in evidence the survey map and technical
decreed the registration of said lands in her name. descriptions of the lands, which, needless to state, provided no
Petitioner Republic of the Phils brought case to the CA. information respecting the classification of the property. These
CA affirmed RTC decision. documents are not sufficient to overcome the presumption that
Issue: the land sought to be registered forms part of the public domain.
Whether or not the areas in question have ceased to have the Therefore, the issue of whether or not Naguiat and her
status of forest or other inalienable lands of the public domain. predecessor-in-interest have been in open, exclusive and
continuous possession of the parcels of land in question is now of
Decision: little moment. For, unclassified land, as here, cannot be acquired
by adverse occupation or possession; occupation thereof in the
No. Naguiat was unable to provide sufficient evidence that such concept of owner, however long, cannot ripen into private
parcels of land are no longer a part of the public domain. ownership and be registered as title.
Yes. The provision, as worded, recognizes an enforceable right. Rio+5: In 1997, the General Assembly of the UN held a special
Hence, appeal to it has been recognized as conferring standing session to appraise five years of progress on the implementation
on minors to challenge logging policies of the government (Oposa of Agenda 21 (Rio +5). The Assembly recognized progress as
vs. Factoran). On this basis too, the Supreme Court upheld the 'uneven' and identified key trends including
empowerment of the Laguna Lake Development Authority to increasing globalization, widening inequalities in income and a
protect the inhabitants of the Laguna Lake Area from the continued deterioration of the global environment. A new General
deleterious effects of pollutants coming from garbage dumping Assembly Resolution (S-19/2) promised further action.
and the discharge of wastes in the area as against the local
autonomy claim of local governments in the area (Laguna Lake
Development Authority vs. CA) The Johannesburg Summit: The Johannesburg Plan of
Implementation, agreed at the World Summit on Sustainable
Development (Earth Summit 2002) affirmed UN commitment to
While the right to a balanced and healthful ecology is to be found 'full implementation' of Agenda 21, alongside achievement of
under the Declaration of Principles and State Policies and not the Millennium Development Goals and other international
under the Bill of Rights, it does not follow that it is less important agreements.
than any of the civil and political rights enumerated in the latter.
As a matter of fact, these basic rights need not even be written in
the Constitution for they are assumed to exist from the inception Implementation: The Commission on Sustainable
of humankind. The right to a balanced and healthful ecology Development acts as a high level forum on sustainable
carries with it the correlative duty to refrain from impairing the development and has acted as preparatory committee for
environment. summits and sessions on the implementation of Agenda 21. The
United Nations Division for Sustainable Development acts as the
Section 16 is unusual among those found in Article II in that, secretariat to the Commission and works 'within the context of'
whereas almost all the other provisions in the Article are not self- Agenda 21. Implementation by member states remains essentially
executing but need implementing legislation to make them voluntary.
effective, Section 16 has been recognized by the Supreme Court as
self-executing like the provisions in the Bill of Rights. Structure and Contents:
There are 40 chapters in the Agenda 21, divided into four main
sections.
1. Section I: Social and Economic Dimensions - which
deals with combating poverty, changing consumption
patterns, promoting health, change population and
sustainable settlement.
2. Section II: Conservation and Management of
Resources for Development - Includes atmospheric
protection, combating deforestation, protecting fragile
environments, conservation of biological diversity
(biodiversity), and control of pollution.
3. Section III: Strengthening the Role of Major Groups -
Includes the roles of children and youth, women,
NGOs, local authorities, business and workers.
4. Section IV: Means of Implementation -
Implementation includes science, technology
transfer, education, international institutions and
financial mechanisms.
(m) Mainstreaming refers to the integration of (c) Secretary of the Department of Environment and
policies and measures that address climate change into Natural Resources;
development planning and sectoral decision-making.
(d) Secretary of the Department of Education;
(n) Mitigation in the context of climate change,
refers to human intervention to address anthropogenic (e) Secretary of the Department of Foreign Affairs;
emissions by sources and removals by sinks of all GHG,
including ozone- depleting substances and their
substitutes. (f) Secretary of the Department of Health;
(o) Mitigation potential shall refer to the scale of (g) Secretary of the Department of the Interior and
GHG reductions that could be made, relative to Local Government;
emission baselines, for a given level of carbon price
(expressed in cost per unit of carbon dioxide equivalent (h) Secretary of the Department of National Defense, in
emissions avoided or reduced). his capacity as Chair of the National Disaster
Coordinating Council;
(p) Sea level rise refers to an increase in sea level
which may be influenced by factors like global warming (i) Secretary of the Department of Public Works and
through expansion of sea water as the oceans warm Highways;
and melting of ice over land and local factors such as
land subsidence.
(j) Secretary of the Department of Science and
Technology;
(q) Vulnerability refers to the degree to which a
system is susceptible to, or unable to cope with,
(k) Secretary of the Department of Social Welfare and
adverse effects of climate change, including climate
Development;
variability and extremes. Vulnerability is a function of
the character, magnitude, and rate of climate change
(l) Secretary of the Department of Trade and Industry;
(m) Secretary of the Department of Transportation and The Commissioners shall hold office for a period of six (6) years,
Communications; and may be subjected to reappointment: Provided, That no
person shall serve for more than two (2) consecutive terms:
Provided, further, That in case of a vacancy, the new appointee
(n) Director-General of the National Economic and
shall fully meet the qualifications of a Commissioner and shall
Development Authority, in his capacity as Chair of the
hold office for the unexpired portion of the term only: Provided,
Philippine Council for Sustainable Development;
finally, That in no case shall a Commissioner be designated in a
temporary or acting capacity.
(o) Director-General of the National Security Council;
The Vice Chairperson and the Commissioners shall have the rank
(p) Chairperson of the National Commission on the and privileges of a Department Secretary and Undersecretary,
Role of Filipino Women; respectively. They shall be entitled to corresponding
compensation and other emoluments and shall be subject to the
(q) President of the League of Provinces; same disqualifications.
(r) President of the League of Cities; Section 8. Climate Change Office. There is hereby created a
Climate Change Office that shall assist the Commission. It shall be
headed by a Vice Chairperson of the Commission who shall act as
(s) President of the League of Municipalities; the Executive Director of the Office. The Commission shall have
the authority to determine the number of staff and create
(t) President of the Liga ng mga Barangay; corresponding positions necessary to facilitate the proper
implementation of this Act, subject to civil service laws, rules and
regulations. The officers and employees of the Commission shall
(u) Representative from the academe; be appointed by the Executive Director.
(v) Representative from the business sector; and Section 9. Powers and Functions of the Commission. The
Commission shall have the following powers and functions:
(w) Representative from nongovernmental
organizations. (a) Ensure the mainstreaming of climate change, in
synergy with disaster risk reduction, into the national,
At least one (1) of the sectoral representatives shall come from sectoral and local development plans and programs;
the disaster risk reduction community.
(b) Coordinate and synchronize climate change
The representatives shall be appointed by the President from a list programs of national government agencies;
of nominees submitted by their respective groups. They shall
serve for a term of six (6) years without reappointment unless (c) Formulate a Framework Strategy on Climate Change
their representation is withdrawn by the sector they represent. to serve as the basis for a program for climate change
Appointment to any vacancy shall be only for the unexpired term planning, research and development, extension, and
of the predecessor. monitoring of activities on climate change;
Only the ex officio members of the advisory board shall appoint a (d) Exercise policy coordination to ensure the
qualified representative who shall hold a rank of no less than an attainment of goals set in the framework strategy and
Undersecretary. program on climate change;
Section 6. Meetings of the Commission. The Commission shall (e) Recommend legislation, policies, strategies,
meet once every three (3) months, or as often as may be deemed programs on and appropriations for climate change
necessary by the Chairperson. The Chairperson may likewise call adaptation and mitigation and other related activities;
upon other government agencies for the proper implementation
of this Act.
(f) Recommend key development investments in
climate- sensitive sectors such as water resources,
Section 7. Qualifications, Tenure, Compensation of agriculture, forestry, coastal and marine resources,
Commissioners. The Commissioners must be Filipino citizens, health, and infrastructure to ensure the achievement
residents of the Philippines, at least thirty (30) years of age at the of national sustainable development goals;
time of appointment, with at least ten (10) years of experience on
climate change and of proven honesty and ntegrity. The
Commissioners shall be experts in climate change by virtue of (g) Create an enabling environment for the design of
their educational background, training and experience: Provided, relevant and appropriate risk-sharing and risk-transfer
That at least one (1) Commissioner shall be female: Provided, instruments;
further, That in no case shall the Commissioners come from the
same sector: Provided, finally, That in no case shall any of the (h) Create an enabling environment that shall promote
Commissioners appoint representatives to act on their behalf. broader multi-stakeholder participation and integrate
climate change mitigation and adaptation;
(i) Formulate strategies on mitigating GHG and other The Framework shall be reviewed every three (3) years, or as may
anthropogenic causes of climate change; be deemed necessary.
(j) Coordinate and establish a close partnership with Section 12. Components of the Framework Strategy and Program
the National Disaster Coordinating Council in order to on Climate Change. The Framework shall include, but not limited
increase efficiency and effectiveness in reducing the to, the following components:
peoples vulnerability to climate-related disasters;
(a) National priorities;
(k) In coordination with the Department of Foreign
Affairs, represent the Philippines in the climate change
(b) Impact, vulnerability and adaptation assessments;
negotiations;
(o) Promote and provide technical and financial (i) Monitoring and evaluation; and
support to local research and development programs
and projects in vulnerable communities and areas; and (j) Gender mainstreaming.
(p) Oversee the dissemination of information on Section 13. National Climate Change Action Plan. The
climate change, local vulnerabilities and risks, relevant Commission shall formulate a National Climate Change Action Plan
laws and protocols and adaptation and mitigation in accordance with the Framework within one (1) year after the
measures. formulation of the latter.
Section 10. Panel of Technical Experts. The Commission shall The National Climate Change Action Plan shall include, but not
constitute a national panel of technical experts consisting of limited to, the following components:
practitioners in disciplines that are related to climate change,
including disaster risk reduction.
(a) Assessment of the national impact of climate
change;
The Panel shall provide technical advice to the Commission in
climate science, technologies, and best practices for risk
assessment and enhancement of adaptive capacity of vulnerable (b) The identification of the most vulnerable
human settlements to potential impacts of climate change. communities/areas, including ecosystems to the
impacts of climate change, variability and extremes;
Section 11. Framework Strategy and Program on Climate (d) The assessment and management of risk and
Change. The Commission shall, within six (6) months from the vulnerability;
effectivity of this Act, formulate a Framework Strategy on Climate
Change. The Framework shall serve as the basis for a program for (e) The identification of GHG mitigation potentials; and
climate change planning, research and development, extension,
and monitoring of activities to protect vulnerable communities
(f) The identification of options, prioritization of
from the adverse effects of climate change.
appropriate adaptation measures for joint projects of
national and local governments.
The Framework shall be formulated based on climate change
vulnerabilities, specific adaptation needs, and mitigation potential,
Section 14. Local Climate Change Action Plan. The LGUs shall be
and in accordance with the international agreements.
the frontline agencies in the formulation, planning and
implementation of climate change action plans in their respective maintenance of a climate change information
areas, consistent with the provisions of the Local Government management system and network, including on climate
Code, the Framework, and the National Climate Change Action change risks, activities and investments, in
Plan. collaboration with other concerned national
government agencies, institutions and LGUs;
Barangays shall be directly involved with municipal and city
governments in prioritizing climate change issues and in (d) The Department of Foreign Affairs (DFA) shall
identifying and implementing best practices and other solutions. review international agreements related to climate
Municipal and city governments shall consider climate change change and make the necessary recommendation for
adaptation, as one of their regular functions. Provincial ratification and compliance by the government on
governments shall provide technical assistance, enforcement and matters pertaining thereto;
information management in support of municipal and city climate
change action plans. Inter-local government unit collaboration
(e) The Philippine Information Agency (PIA) shall
shall be maximized in the conduct of climate- related activities.
disseminate information on climate change, local
vulnerabilities and risk, relevant laws and protocols and
LGUs shall regularly update their respective action plans to reflect adaptation and mitigation measures; and
changing social, economic, and environmental conditions and
emerging issues. The LGUs shall furnish the Commission with
(f) Government financial institutions, shall, any
copies of their action plans and all subsequent amendments,
provision in their respective charters to the contrary
modifications and revisions thereof, within one (1) month from
notwithstanding, provide preferential financial
their adoption. The LGUs shall mobilize and allocate necessary
packages for climate change- related projects. In
personnel, resources and logistics to effectively implement their
consultation with the Bangko Sentral ng Pilipinas (BSP),
respective action plans.
they shall, within thirty (30) days from the effectivity of
this Act, issue and promulgate the implementing
The local chief executive shall appoint the person responsible for guidelines therefor.
the formulation and implementation of the local action plan.
The Commission shall evaluate, recommend the approval of loans
It shall be the responsibility of the national government to extend and monitor the use of said funds of LGUs.
technical and financial assistance to LGUs for the accomplishment
of their Local Climate Change Action Plans.
Section 16. Coordination with Various Sectors. In the
development and implementation of the National Climate Change
The LGU is hereby expressly authorized to appropriate and use the Action Plan, and the local action plans, the Commission shall
amount from its Internal Revenue Allotment necessary to coordinate with the nongovernment organizations (NGOs), civic
implement said local plan effectively, any provision in the Local organizations, academe, peoples organizations, the private and
Government Code to the contrary notwithstanding. corporate sectors and other concerned stakeholder groups.
Section 15. Role of Government Agencies. To ensure the Section 17. Authority to Receive Donations and/or Grants. The
effective implementation of the framework strategy and program Commission is hereby authorized to accept grants, contributions,
on climate change, concerned agencies shall perform the donations, endowments, bequests, or gifts in cash, or in kind from
following functions: local and foreign sources in support of the development and
implementation of climate change programs and plans: Provided,
That in case of donations from foreign governments, acceptance
(a) The Department of Education (DepED) shall
thereof shall be subject to prior clearance and approval of the
integrate climate change into the primary and
President of the Philippines upon recommendation of the
secondary education curricula and/or subjects, such as,
Secretary of Foreign Affairs: Provided, further, That such donations
but not limited to, science, biology, sibika, history,
shall not be used to fund personal services expenditures and
including textbooks, primers and other educational
other operating expenses of the Commission.
materials, basic climate change principles and
concepts;
The proceeds shall be used to finance:
(b) The Department of the Interior and Local
Government (DILG) and Local Government Academy (a) Research, development, demonstration and
shall facilitate the development and provision of a promotion of technologies;
training program for LGUs in climate change. The
training program shall include socioeconomic,
(b) Conduct of assessment of vulnerabilities to climate
geophysical, policy, and other content necessary to
change impacts, resource inventory, and adaptation
address the prevailing and forecasted conditions and
capability building;
risks of particular LGUs. It shall likewise focus on
women and children, especially in the rural areas, since
they are the most vulnerable; (c) Advocacy, networking and communication activities
in the conduct of information campaign; and
(c) The Department of Environment and Natural
Resources (DENR) shall oversee the establishment and
(d) Conduct of such other activities reasonably Order No. 220, shall be abolished: Provided, That their powers
necessary to carry out the objectives of this Act, as may and functions shall be absorbed by the Commission: Provided,
be defined by the Commission. further, That the officers and employees thereof shall continue in
a holdover capacity until such time as the new officers and
employees of the Commission shall have been duly appointed
Section 18. Funding Allocation for Climate Change. All relevant
pursuant to the provisions of this Act. All qualified regular or
government agencies and LGUs shall allocate from their annual
permanent employees who may be transferred to the Commission
appropriations adequate funds for the formulation, development
shall not suffer any loss in seniority or rank or decrease in
and implementation, including training, capacity building and
emoluments. Any employee who cannot be absorbed by the
direct intervention, of their respective climate change programs
Commission shall be entitled to a separation pay under existing
and plans. It shall also include public awareness campaigns on the
retirement laws
effects of climate change and energy-saving solutions to mitigate
these effects, and initiatives, through educational and training
programs and micro-credit schemes, especially for women in rural
areas. In subsequent budget proposals, the concerned offices and
units shall appropriate funds for program/project development
and implementation including continuing training and education
in climate change.1avvphi1
Section 19. Joint Congressional Oversight Committee. There is Executive Order No. 15 : Creating a Philippine Council for
hereby created a Joint Congressional Oversight Committee to Sustainable Development
monitor the implementation of this Act. The Oversight Committee
shall be composed of five (5) Senators and five (5) Representatives
WHEREAS, the 1987 Constitution mandates a policy of the state,
to be appointed by the Senate President and the Speaker of the
the protection and advancement of the right of the people to a
House of Representatives, respectively. The Oversight Committee
balanced and healthful ecology in accordance with the rhythm
shall be co-chaired by a Senator and a Representative to be
and harmony of nature;
designated by the Senate President and the Speaker of the House
of Representatives, respectively. Its funding requirement shall be
charged against the appropriations of Congress. WHEREAS, a National Conservation Strategy, as spelled out in the
Philippine Strategy for Sustainable Development (PSSD), which
was adopted in 1989, takes a balanced and integrated approach to
Section 20. Annual Report. The Commission shall submit to the
environment and development issues by incorporating sustainable
President and to both Houses of Congress, not later than March
development principles and concepts in the national priorities of
30 of every year following the effectivity of this Act, or upon the
government;
request of the Congressional Oversight Committee, a report giving
a detailed account of the status of the implementation of this Act,
a progress report on the implementation of the National Climate WHEREAS, the Philippines already adhering too the principle of
Change Action Plan and recommend legislation, where applicable sustainable development actively participated in the United
and necessary. LGUs shall submit annual progress reports on the Nations Conference on Environment and Development (UNCED)
implementation of their respective local action plan to the Summit held in Rio de Janeiro, and committed to the principles set
Commission within the first quarter of the following year. forth in the Rio Declaration, the Agenda 21, the Conventions on
Climate Change and Biodiversity;
Section 21. Appropriations. The sum of Fifty million pesos
(Php50,000,000.00) is hereby appropriated as initial operating WHEREAS, the United Nations in UNCED, has adopted a resolution
fund in addition to the unutilized fund of the Presidential Task for the creation of a Sustainable Development Commission that
Force on Climate Change and the Office of the Presidential Adviser will evaluate and monitor the compliance too the agreements and
on Global Warming and Climate Change. The sum shall be sourced commitments made in Rio and in the course of it's creation urged
from the Presidents contingent fund. governments to also for similar bodies that will ensure that the
activities at the national level are implemented and coordinated
within global efforts;
Thereafter, the amount necessary to effectively carry out the
provisions of this Act shall be included in the annual General
Appropriations Act. WHEREAS, the agreements oblige the Philippines to translate the
commitments to more concrete actions and ensure that all sectors
of the society shall be involved in its cooperalization;
Section 22. Implementing Rules and Regulations. Within ninety
(90) days after the approval of this Act, the Commission shall,
upon consultation with government agencies, LGUs, private WHEREAS, in order to active these ends, the creation of a national
sector, NGOs and civil society, promulgate the implementing rules sustainable development and thus assure its integration in the
and regulations of this Act: Provided, That failure to issue rules Philippine national policies, plans, and programs that will involve
and regulations shall not in any manner affect the executory all sectors of the society.
nature of the provisions of this Act.
SEC 1. Creation and Composition of the Council.
Section 23. Transitory Provisions. Upon the organization of the
Commission, the Presidential Task Force on Climate Change 1) There is hereby created a Philippine Council for Sustainable
created under Administrative Order No. 171 and the Inter-Agency Development to be headed by the Director-General of the
Committee on Climate Change created by virtue of Administrative National Economic and Development Authority (NEDA) as
Chairperson, and the Secretary of the Department of Environment 7) To perform such other acts which are necessary to carry out its
and Natural Resources as Vice-Chairperson. mandated functions and responsibilities.
2) The Council will have as members committed environmentalists Sec. 3. The Secretariat. The Council shall be assisted by the
from the following owing departments of a position of Bureau Secretariat which shall be based at the Notional Economic and
Director of their, duly deputized to represent their respective Development Authority whose composition will be determined by
Secretaries: the Director-General.
Sec. 2 Powers and Functions of the Council. The Council shall WHEREAS, to strengthen PCSD, the expansion of its membership
have the following powers and function: as well as the establishment of local councils for sustainable
development were provided for through the issuance of Executive
Order No. 370 (s. 1996);
1`) To review and ensure the implementation on the commitments
the Philippines made in the light of the UNCED Conference;
WHEREAS, in order to operationalize sustainable development at
the local level, Memorandum Order No. 47 (s. 1999) was issued
2) To establish guidelines and mechanisms that will expand, mandating local government units (LGUs) to formulate and
concretize and operationalize the sustainable development implement their sustainable integrated area development plans or
principles as embodied in the Rio Declaration, the UNCED Agenda Local Agenda 21 with the assistance of concerned government
21, the National Conservation Strategy, and the Philippine Agenda agencies;
21, and incorporate them in the preparation of the Medium Term
Development Plan both at the national and local levels with active WHEREAS, in light of changing circumstances and, emerging issues
participation from the non-government sector a and people's on sustainable development locally and globally there is an urgent
organizations; need to pursue new interventions through a more responsive
PCSD structure;
3) Too provide directions in the form of policy reforms, programs
and new legislations that respond to the continuing and emerging WHEREAS, for the PCSD to be more effective and responsive in
issues and charting future actions related to environment and ensuring the realization of the governments sustainable
developments; development goals, there is a need to streamline and define its
core functions and membership, keeping in mind the various
4) To act as the coordinating mechanism in cooperation either agencies in government whose functions are integral components
DFA-office of the United Nations Commission for Sustainable of the overall government sustainable development operational
Development and actively solicit assistance and cooperation thrusts;
towards the realization of our commitments made at the UNCED;
WHEREAS, there is a need for PCSD to focus on strategic
interventions that have significant and catalytic impact on
5) To require any and all government agencies for assistance in to
sustainable development;
forum of personnel, facilities, and other resources which is
essential for the performance for the duties of the Council;
WHEREAS, it is necessary to further strengthen the PCSD as the
lead instrumentality responsible for mainstreaming sustainable
6) To create sub-committees that it may deem fit in the development in national government and affiliated agencies,
performance of its duties; and Congress, LGUs, as well as existing multi-stakeholder governance
mechanisms.
3. To establish guidelines and mechanisms that will ensure that
NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the sustainable development principles, as embodied in the Rio
the Philippines, by virtue of the powers vested in me by law, do Declaration, Agenda 21, and the Philippine Agenda 21, are
hereby order: integrated in the formulation of national, regional and local
development policies, plans and programs;
Section 1. Further Strengthening the PCSD. The Philippine
Council for Sustainable Development, hereinafter referred to as 4. To formulate policies and recommend new actions to
the Council, is hereby further strengthened, structurally and appropriate bodies on sustainable development issues focusing on
functionally, in accordance with the provisions of this Executive the environment dimensions of social and economic interventions
Order. and the social and economic dimensions of environment
interventions;
Sec. 2. Composition of the Council.
5. To review and monitor plans, policies, program and legislation
on sustainable development to promote efficiency and timeliness
1. The core members from government shall be composed of
of their execution and ensure consistency and coordination
Secretaries of the following Departments as permanent principal
among the Legislative and Executive branches of government,
members, with an Undersecretary as alternate:
local government units, civil society, business, labor and other
concerned entities/sectors, and existing multi-stakeholder
a. National Economic and Development Authority; governance mechanisms;
b. Department of Environment and Natural Resources; 6. To establish a networking mechanism to link the Council with
local and international organizations involved in sustainable
2. Civil society, composed of peoples organizations, non- development;
government organizations and sectoral/major groups
representation shall have five (5) Council members selected by 7. To create, reorganize or abolish committees of the Council, ad-
their community, based on their commitment to sustainable hoc or permanent, and to define their structure, functions and
development concerns, through a process designed by them limitations;
These may include the following groups: women, youth, farmers,
fisherfolk, indigenous people, Moro and Cordillera people, urban 8. To submit its annual work program with actionable and time
poor, persons with disabilities, academe, professionals, media, bounded targets and regularly report to the President the status
religious groups and NGOs. of implementation and achievement of specific targets thereof;
3. Labor and business shall have one (1) representative each in the 9. To perform such other acts which are necessary to carry out its
Council. Representation shall, likewise be decided through a mandated functions and responsibilities.
process to be designed by them.
Sec. 5. Participation of Other Government Agencies in the Council.
The Chairperson of the Council shall be the Secretary of Socio- The Council can call upon other government agencies and
Economic Planning and NEDA Director-General. The Secretary of instrumentalities, civil society, business and labor sector
the Department of Environment and Natural Resources (DENR) organizations to participate in Council business, including its
shall be the Vice-Chairperson. meetings, if so warranted by conditions as may exist from time to
time. For this purpose, other government agencies shall identify a
Sec. 3. Terms of Office and Meetings. The term of office of PCSD focal officer not lower than a rank of Director who shall
members shall be co-terminus with their appointment or election coordinate their agencys participation in PCSD concerns.
in their respective departments or organizations.
Sec. 6. Secretariat. The Council shall be assisted by a
The Council shall meet quarterly, or as frequently as may be Coordinating Secretariat which shall be based at the NEDA, the
deemed necessary. Special meetings may be convened at the call composition of which shall be determined by the Director-
of the Chairperson or by a majority of the members of the General, and a Counterpart Secretariat, the composition of which
Council. In the absence of the Chairperson, the Vice-Chairperson shall be determined by the Civil Society Counterpart Council for
shall preside. In case any civil society, business or labor sector Sustainable Development (CSCCSD).
member of the Council cannot attend the meeting, he or she shall
be represented by the alternate to be designated through their Sec. 7. Budget. There shall be provided in the General
respective selection process for the purpose. Appropriations Act (GAA) a regular line item under the NEDA
budget to cover the operational requirements of the Council
Sec. 4. Powers and Functions of the Council. subject to the prescribed budgetary guidelines. Other member-
agencies of the Council shall also include a line item in the GAA
1. To review and ensure the implementation of the commitments under their respective agency budgets to cover the cost of their
made by the Philippines in the light of the United Nations activities related to PCSD.
Conference on Environment and Development (UNCED) and its
follow-up processes;
Section 5. Role of the Civil Society, Labor and Business Sectors. The
PCSD shall coordinate with civil society, labor and business sectors in
operationalizing Philippine Agenda 21. Major stakeholders from these
sectors are thereby enjoined to adopt and implement the principles
Memorandum Order No. 399: DIRECTING THE and action agenda contained in the Philippine Agenda 21.
OPERATIONALIZATION OF THE PHILIPPINE
AGENDA 21 Section 6. Funding. The PCSD, in the coordination with the
Department of Finance (DOF), Department of Budget and Management
AND MONITORING ITS IMPLEMENTATION (DBM), and the National Economic and Development Authority (NEDA),
shall identify funding sources in implementing and monitoring the
Philippine Agenda 21.
Whereas, Article 2, Section 12 of the Constitution mandates as a
policy of the State the protection and advancement of the right of
the people to a balanced and healthful ecology in accord with the
rhythm and harmony of nature;
Republic of the Philippines vs. The City of Davao This however presuppose that a project, for which an
Environmental Compliance Certificate is necessary, is
Republic vs. Alvarez, in his capacity as Sec. of DENR environmentally critical or within an environmentally critical
area. In the case at bar, respondent has sufficiently shown that
Alvarez filed an application for a Certificate of Non- the Artica Sports Dome will not have a significant negative
Coverage for its proposed project, the Davao Artica environmental impact because it is not an environmentally critical
Sports Dome, with the Environmental Management project and it is not located in an environmentally critical area.
Bureau (EMB), Region 11. The EMB Region 11 denied They submitted Certification from the City Planning and
the application on ground that the proposed project Development Office, PHILVOLCS, CENRO-West in support thereof.
was within an environmentally critical area, and ruled
that under the Environmental Impact Statement
System, the City of Davao must undergo the The Environmental Impact Statement System, which ensures
environmental impact assessment (EIA) process to environmental protection and regulates certain government
secure an Environmental Compliance Certificate (ECC), activities affecting the environment, was established by
before it can proceed with the construction of its Presidential Decree No. 1586. Under Article II, Section 1, of the
project Rules and Regulations Implementing PD 1586, the declaration of
Believing that it was entitled to a Certificate of Non- certain projects or areas as environmentally critical, and which
Coverage, respondent filed a petition for mandamus shall fall within the scope of the Environmental Impact Statement
with the RTC of Davao alleging that the proposed System, shall be by Presidential Proclamation.
project was neither an environmentally critical project
nor within an environmentally critical area, thus it was
outside the scope of the EIS system. Pursuant thereto, Proclamation No. 2146 was issued
The RTC granted the writ of mandamus and directed proclaiming the following areas and types of projects as
EMB to issue a Certificate of Non-Coverage. It ruled environmentally critical and within the scope of the Environmental
that there is nothing in the EIA System guidelines Impact Statement System established under PD 1586:
which requires LGUs to comply with the EIS law, as only
agencies and instrumentalities are mandated to go A. Environmentally Critical Projects
through the EIA process for their proposed projects
which have significant effect on the quality of the
I. Heavy Industries
environment. A local government unit, not being an
a. Non-ferrous metal industries
agency or instrumentality of the National Government,
b. Iron and steel mills
is deemed excluded
c. Petroleum and petro-chemical industries including
oil and gas
Issue: Whether LGUs are covered by the EIA System?
d. Smelting plants
Decision:
II. Resource Extractive Industries
a. Major mining and quarrying projects
The Local Government Code provides that it is the duty of the
b. Forestry projects
LGUs to promote the peoples right to a balanced ecology.
Pursuant to this, an LGU, like the City of Davao, cannot claim
1. Logging
exemption from the coverage of PD 1586. As a body politic
2. Major wood processing projects
endowed with governmental functions, an LGU has the duty to
3. Introduction of fauna (exotic-animals) in
ensure the quality of the environment, which is the very same
public/private forests
objective of PD 1586.
4. Forest occupancy critical projects and undertakings to provide additional
5. Extraction of mangrove products environmental safeguards as it may deem necessary.
6. Grazing
c. Fishery Projects The Artica Sports Dome in Langub does not come close to
1. Dikes for/and fishpond development projects any of the projects or areas enumerated above. Neither is it
analogous to any of them. It is clear, therefore, that the said
project is not classified as environmentally critical, or within an
III. Infrastructure Projects
environmentally critical area. Consequently, the DENR has no
a. Major dams
choice but to issue the Certificate of Non-Coverage. It becomes its
b. Major power plants (fossil-fueled, nuclear fueled,
ministerial duty, the performance of which can be compelled by
hydroelectric or geothermal)
writ of mandamus, such as that issued by the trial court in the
c. Major reclamation projects
case at bar.
d. Major roads and bridges
All other laws, decrees, executive orders, rules and regulations g. The timelines prescribed by this Order, within which an
inconsistent herewith are hereby repealed, amended or modified Environmental - Compliance Certificate must be issued, or denied,
accordingly. apply only to processes and actions within the Environmental
Management Bureau's (EMB) control and do not include actions
or activities that are the responsibility of the proponent.
Section 2. Objective
DENR Administrative Order No. 2003- 30
SUBJECT: Implementing Rules and Regulations (IRR) for the The objective of this Administrative Order is to rationalize and
Philippine Environmental Impact Statement (EIS) System streamline the EIS System to make it more effective as a project
planning and management tool by:
Consistent with the continuing effort of the Department of
Environment and Natural Resources (DENR) to rationalize and a. Making the System more responsive to the demands and needs
streamline the implementation of the Philippine Environmental of the project proponents and the various stakeholders;
Impact Statement (EIS) System established under Presidential
Decree (PD) No. 1586, Presidential Proclamation No. 2146 b. Clarifying the, coverage of the System and updating it to take
defining the scope of the EIS System and pursuant to into consideration industrial and technological innovations and
Administrative Order No. 42 issued by tile Office of the President trends
on November 2, 2002, the following rules and regulations are
hereby promulgated; c. Standardizing requirements to ensure focus on critical
environment parameters;
ARTICLE I
BASIC POLICY, OPERATING PRINCIPLES, OBJECTIVES AND d. Simplifying procedures for processing ECC applications, and
DEFINITION OF TERMS establishing measures to ensure adherence to ECC conditions by
project proponents, and
Section 1. Basic Policy and Operating Principles
e. Assuring that critical environmental concerns are addressed
Consistent with the principles of sustainable development, it is the during project development and implementation
policy of the DENR to implement a systems-oriented and
integrated approach to the LIS system to ensure a rational balance Section 3. Definition of Terms
between socio-economic development and environmental
protection for the benefit of present and future generations. For the purpose of this Order, the following definitions shall be
applied;
The following are the key operating principles in the
implementation of the Philippine EIS System: a. Certificate, of Non-Coverage - a certification issued by the EMB
certifying that, based on the submitted project description, the
a. The EIS System is concerned primarily with assessing the direct project is not covered by the EIS System and is not required to
and indirect impacts of a project on the biophysical and human secure an ECC
environment and ensuring that these impacts addressed by
appropriate environmental protection and enhancement b. Co-located projects / undertakings- projects, or series of similar
measures. projects or a project subdivided to several phases and/or stages by
the same proponent, located in contiguous areas.
b. The EIS System aids proponents in incorporating environmental
considerations in planning their projects as well as in determining c Environment - Surrounding air, water (both ground and surface),
the environment's impact on their project. land, flora, fauna, humans and their interrelations.
d. Environmental Compliance Certificate (ECC)- document issued contingency and monitoring measures to enhance positive
by the DENR/EMB after a positive review of an ECC application, impacts and minimize negative impacts and risks of a proposed
certifying that based on the representations of the proponent, the project or undertaking. For operating projects, the EMP can also
proposed project or undertaking will not cause significant be derived from an EMS,
negative: environmental impact. The ECC also certifies that the
proponent has complied with all the requirements of the EIS m. Environmental Management Systems (EMS) - refers to the EMB
System and has committed to implement its approved PEPP EMS as provided for under DAO 2003-14, which is a part of
Environmental Management Plan. The ECC contains specific the overall management system of a project or organization that
measures and conditions that the project proponent has to includes environmental policy, organizational structure, planning
undertake before and during the operation of a project, and in activities, responsibilities, practices, procedures, processes and
some cases, during the project's abandonment phase to mitigate resources for developing, implementing, achieving, reviewing and
identified environmental impacts. maintaining an improved overall environmental performance.
e. Environmentally Critical Area (ECA) - area delineated as n. Environmental Monitoring Fund (EMF) -fund that a proponent
environmentally sensitive such that significant environmental shall set up after an ECC is issued for its project or undertaking, to
impacts are expected if certain types of proposed projects or be used to support the activities of the multi-partite monitoring
programs are located, developed or, implemented in it. team. It shall be immediately accessible and easily disbursable.
f. Environmentally Critical Project (ECP) - project or program that o. Environmental Performance - capability of proponents to
has high potential for significant negative environmental impact. mitigate environmental impacts of projects or programs.
g. Environmental Guarantee Fund (EGF) - fund to be set up by a p. Environmental Performance Report and Management Plan
project proponent which shall be readily accessible and (EPRMP) - documentation of the actual cumulative environmental
disbursable for the immediate clean-up or rehabilitation of areas impacts and effectiveness of current measures for single projects
affected by damages in the environment and the resulting that are already operating but without ECC's, i.e., Category A-3.
deterioration of environmental quality as a direct consequence of For Category B-3 projects, a checklist form of the EPRMP would
a project's construction, operation or abandonment. It shall suffice.
likewise be used to compensate parties and communities affected
by the negative impacts of the project, and to fund community- q. Environmental Risk Assessment (ERA) - assessment, through the
based environment related projects including, but not limited to, use of universally accepted and scientific methods, of risks
information and education and emergency preparedness associated with a project. It focuses on determining the
programs. probability of occurrence of accidents and their magnitude (e.g.
failure, of containment or exposure to hazardous materials or
h. Environmental Impact Assessment (EIA) - process that involves situations.)
evaluating and predicting the likely impacts of a project (including
cumulative impacts) on the environment during construction, r. EMS-based EMP - environmental management plan based on
commissioning, operation and abandonment. It also includes the environmental management system (EMS) standard as
designing appropriate preventive, mitigating and enhancement defined in the DAO 2003-14.
measures addressing these consequences to protect the
environment and the community's welfare. The process is s. Initial Environmental Examination (IEE) Report document
undertaken by, among others, the project proponent and/or EIA similar to an EIS, but with reduced details and depth of
Consultant, EMB, a Review Committee, affected communities and assessment and discussion
other stakeholders.
t. Initial Environmental Examination (IEE) Checklist Report -
i. Environmental Impact Assessment Consultant - a professional or simplified checklist version of an IEE Report, prescribed by the
group of professionals commissioned by the proponent to prepare DENR, to be filled up by a proponent to identify and assess a
the EIS/IEE and other related documents. In some cases, the project's environmental impacts and the mitigation/enhancement
person or group referred to may be the proponent's technical measures to address such impacts.
staff.
u. Multipartite Monitoring Team (MMT) - community-based multi-
j. Environmental Impact Assessment Review Committee (EIARC) - a sectoral team organized for the purpose of monitoring the
body of independent technical experts and professionals of known proponent's compliance with ECC conditions, EMP and applicable
probity from various fields organized by the EMB to evaluate the laws, rules and regulations.
EIS and other related documents and to make appropriate
recommendations regarding the issuance or non-issuance of an v. Programmatic Environmental Impact Statement (PEIS) -
ECC. documentation of comprehensive studies on environmental
baseline conditions of a contiguous area. It also includes an
k. Environmental Impact Statement (EIS) - document, prepared assessment of the carrying capacity of the area to absorb impacts
and submitted by the project proponent and/or EIA Consultant from co-located projects such as those in industrial estates or
that serves as an application for an ECC. It is a comprehensive economic zones (ecozones),
study of the significant impacts of a project on the environment. It
includes an Environmental Management Plan/Program that the w. Programmatic Environmental Performance Report and
proponent will fund and implement to protect the environment Management Plan (PEPRMP) - documentation of actual
cumulative environmental impacts of collocated projects with
l. Environmental Management Plan/Program (EMP) - section in proposals for expansion. The PEPRMP should also describe the
the EIS that details the prevention, mitigation, compensation,
effectiveness of current environmental mitigation measures and coordination with the Department of Trade and Industry (DTI) and
plans for performance improvement. other concerned government agencies, the EMB is authorized to
update or make appropriate revisions to the technical guidelines
x. Project Description (PD) - document, which may also be a for EIS System implementation.
chapter in an EIS, that describes the nature, configuration, use of
raw materials and natural resources, production system, waste or 4.2 The issuance of ECC or CNC for a project under the EIS System
pollution generation and control and the activities of a proposed does not exempt the proponent from securing other government
project. It includes a description of the use of human resources as permits and clearances as required by other laws.
well as activity timelines, during the pre-construction,
construction, operation and abandonment phases. It is to be used In determining the scope of the EIS System, two factors are
for reviewing co-located and single projects under Category C, as considered: (i) the nature of the project and its potential to cause
well as for Category D projects. significant negative environmental impacts, and (ii) the sensitivity
or vulnerability of environmental resources in the project area. 4.3
Y. Project or Undertaking - any activity, regardless of scale or The specific criteria for, determining projects or undertakings to
magnitude, which may have significant impact on the be covered by the EIS System are as follows:
environment.
a. Characteristics of the project or undertaking
z. Proponent - any natural or juridical person intending to Size of the project
implement a project or undertaking. Cumulative nature of impacts vis-a-vis: other projects
Use of natural resources
aa. Public Participation - open, transparent, gender-sensitive, and Generation of waste and environment-related nuisance
community based process aimed at ensuring the social Environment-related hazards and risk of accidents
acceptability of a project or undertaking, involving the broadest
range of stakeholders, commencing at the earliest possible stage, b. Location of the Project
of project design and development and continuing until post- Vulnerability of the project area to disturbances due to its
assessment monitoring. ecological importance, endangered or protected status
Conformity of the proposed project to existing land use,
bb. Procedural Review - phase in the ECC application review based on approved zoning or on national laws and
process to check for the completeness the required documents, regulations
conducted by EIAM Division at the EMB Central Office or Regional Relative abundance, quality and regenerative capacity of
Office. natural resources in the area, including the impact
absorptive capacity of the environment
cc. Process Industry - an industry whose project operation stage
involves chemical, mechanical or other processes. c. Nature of the potential impact
Geographic extent of the impact and size of affected
dd. Scoping - the stage in the EIS System where information and population
project impact assessment requirements are established to Magnitude and complexity of the impact
provide the proponent and the stakeholders the scope of work Likelihood, duration, frequency, and reversibility of the
and terms of reference for the EIS. impact
ee. Secretary - the Secretary of the DENR. The following are the categories of projects/undertakings under
the EIS system:
ff. Social Acceptability - acceptability of a project by affected
communities based on timely and informed participation in the Category A. Environmentally Critical Projects (ECPs) with
EIA process particularly with regard to environmental impacts that significant potential to cause negative environmental impacts
are of concern to them.
Category B. Projects that are not categorized as ECPs, but which
gg. Stakeholders - entities who may be directly and significantly may cause negative environmental impacts because they are
affected by the project or undertaking. located in Environmentally Critical Areas (ECA's)
hh. Substantive Review - the phase in the EIA process whereby the Category C. Projects intended to directly enhance environmental
document submitted is subjected to technical evaluation by the quality or address existing environmental problems not falling
EIARC. under Category A or B.
ii. Technology - all the knowledge, products, processes, tools, Category D. Projects unlikely to cause adverse environmental
methods and systems employed in the creation of goods or impacts.
providing services.
4.4 Proponents of co-located or single projects that fall under
ARTICLE II Category A and B are required to secure ECC. For co-located
ECC APPLICATION PROCESSING AND APPROVAL PROCEDURES projects, the proponent has the option to secure a Programmatic
ECC. For ecozones, ECC application may be programmatic based
Section 4. Scope of the EIS System on submission of a programmatic EIS, or locator-specific based on
submission of project EIS by each locator.
4.1 In general, only projects that pose potential significant impact
to the environment shall be required to secure ECC's. In 4.5 Projects under Category C are required submit Project
Description.
coordinate with relevant government agencies and the private
4.6 Projects classified under Category D may secure a CNC. The sector to customize and update IEE Checklists to further
EMB-DENR, however, may require such, projects or undertakings streamline ECC processing, especially for small and medium
to provide additional environmental safeguards as it may deem enterprises.
necessary. ,
5.2.3. Programmatic Environmental Impact Statement (PEIS)
4.7 Projects/undertakings introducing new technologies or
construction technique but which may cause significant negative The PEIS shall contain the following:
environmental impacts shall be required to submit a Project
Description Which will be used as basis by EMB for screening the a. Executive Summary;
project and b. Project Description;
determining its category. c. Summary matrix of scoping agreements as validated by EMB;
Section 5. Requirements for Securing Environmental Compliance d. [-co-profiling of air, land, water, and relevant people aspects;
Certificate (ECC) and Certificate of Non-Coverage (CNC) e. Environmental carrying capacity analysis;
f. Environmental Risk Assessment (if found necessary during
5.1 Documentary Requirements for Proponents ECC processing scoping);
requirements shall focus on information needed to assess critical g. Environmental Management Plan to include allocation scheme
environmental impacts of projects. Processing requirements shall for discharge of pollutants; criteria for acceptance of locators,
be customized based on the project categories. environmental management guidebook for locators, and
environmental liability scheme;
The total maximum processing time reckons from the acceptance h. Duties of the Environmental Management Unit to be created;
of the ECC/CNC application for substantive review up to the i. Proposals for Environmental Monitoring & Guarantee Funds and
issuance of the decision terms of reference for the Multi-partite Monitoring Team, and
j. Other supporting documents and clearances that may be agreed
5.2 Forms and Contents of EIA Study Reports and Other during the scoping.
Documents Required Under the EIS System
5.2.4. Programmatic Environmental Performance Report and
The following are the different forms of EIA study reports and Management Plan (PEPRMP).
documents required under the EIS System. DENR employees are
prohibited from taking part in the preparation of such documents. The PEPRMP shall contain the following:
The DENR/EMB shall limit to a maximum of two (2) official
requests (in writing) to the project proponent for additional a. Project Description of the co-located projects;
information, which shall be made within the first 75% of the b. Documentation of the actual environmental performance based
processing timeframe shown in Section 5.1.1. on current/past environmental management measures
implemented, and
5.2.1. Environmental Impact Statement (EIS). c. An EMP based on an environmental management system
framework and standard set by EMB.
The EIS should contain at least the following:
5.2.5. Environmental Performance Report and Management Plan
a. EIS Executive Summary;
b. Project Description; The EPRMP shall contain the following:
c. Matrix of the scoping agreement identifying critical issues and a. Project Description;
concerns, as validated by EMB; b. Baseline conditions for critical environmental parameters;
d. Baseline environmental conditions focusing on the sectors (and c. Documentation of the environmental performance based on the
resources) most significantly affected by the proposed action; current/past environmental management measures implemented;
e. Impact assessment focused on significant environmental d. Detailed comparative, description of the proposed project
impacts (in relation to project construction/commissioning, expansion and/or process modification with corresponding
operation and decommissioning), taking into account cumulative material and energy balances in the case of process industries,
impacts; e. EMP based on an environmental management system
f. Environmental Risk Assessment if determined by EMB as framework and standard set by EMB.
necessary during scoping;
g. Environmental Management Program/Plan; 5.2.6. Project Description (PD)
h. Supporting documents; including technical/socio-economic
data used/generated; certificate of zoning viability and municipal The PD shall be guided by the definition of terms and shall contain
land use plan; and proof of consultation with stakeholders; the following: and update IEE Checklists to further streamline ECC
i. Proposals for Environmental Monitoring and Guarantee Funds processing, especially for small and medium enterprises.
including justification of amount, when required;
j. Accountability statement of EIA consultants and the project 5.2.3. Programmatic Environmental Impact Statement (PEIS)
proponent; and The PEIS shall contain the following:
k. Other clearances and documents that may be determined and a. Executive Summary;
agreed upon during scoping. b. Project Description;
c. Summary matrix of scoping agreements as validated by EMB;
5.2.2. Initial Environmental Examination (IEE) Report d. [-co-profiling of air, land, water, and relevant people aspects;
IEE Report is similar to an EIS, but with reduced details of data and e. Environmental carrying capacity analysis;
depth of assessment and discussion. It may be customized for f. Environmental Risk Assessment (if found necessary during
different types of projects under Category B. The EMB shall scoping);
g. Environmental Management Plan to include allocation scheme Proponents should initiate - public consultations early in order to
for discharge of pollutants; criteria for acceptance of locators, ensure that environmentally relevant concerns of stakeholders are
environmental management guidebook for locators, and taken into consideration in the EIA study and the formulation of
environmental liability scheme; the management plan, All public consultations and public hearings
h. Duties of the Environmental Management Unit to be created; conducted during the EIA process are to be documented. The
i. Proposals for Environmental Monitoring & Guarantee Funds and public hearing/ consultation Process report shall be validated by
terms of reference for the Multi-partite Monitoring Team, and the EMB/EMB RD and shall constitute part of the records of the
j. Other supporting documents and clearances that may be agreed EIA process.
during the 5.4 Documentation Requirements for DENR-EMB and EIA
scoping. Reviewers
5.2.4. Programmatic Environmental Performance Report and
Management Plan (PEPRMP). The EMB Central Office as well as the EMB Regional Offices shall
document the proceedings of the ECC application process and
The PEPRMP shall contain the following: shall set up and maintain relevant information management
a. Project Description of the co-located projects; systems. The documentation shall, at a minimum, include the
b. Documentation of the actual environmental performance based following:
on current/past environmental management measures
implemented, and 5.4.1. Review Process Report
c. An EMP based on the environmental management system This is to be prepared by the EMB Central or EMB RO. It is to be
framework and standard set by EMB. forwarded to the DENR Secretary or RD as reference for decision-
making and maintained as part of the records on the ECC
5.2.5. Environmental Performance Report and Management Plan application. The report should contain at least the following:
(EPRMP)
a. Summary of the environmental impacts of the undertaking,
The EPRMP shall contain the following: along with the proposed mitigation and enhancement measures;
b. Key issues/concerns and the proponent's response to these;
a. Project Description; c. Documentation of compliance with procedural requirements;
b. Baseline conditions for critical environmental parameters; d. Acceptability of proposed EMP including the corresponding cost
c. Documentation of the environmental performance based on the of mitigation, EGF and EMF if required;
current/past environmental management measures implemented; e. Key bases for the decision on the ECC application.
d. Detailed comparative, description of the proposed project
expansion and/or process modification with corresponding 5.4.2. EIARC Report
material and energy balances in the case of process industries, This report, to be prepared by the EIA Review Committee, forms
e. EMP based on an environmental management system part of the EIS review documentation. The EIARC Report shall be
framework and standard set by EMB. written by the designated member of the EIARC and signed by all
the members within five days after the final review meeting. If an
5.2.6. Project Description (PD) EIARC member dissents, he or she must submit a memorandum to
the EMB Director through the EIARC Chairman his or her reasons
The PD shall be guided by the definition of terms and shall contain for dissenting.
the following:
At a minimum the EIARC report should contain;
a. Description of the project;
b. Location and area covered; a. Detailed assessment of the proposed mitigation and
c. Capitalization and manpower requirement; enhancement measures for the identified environmental impacts
d. For process industries, a listing of raw materials to be used, and risks;
description of the process or manufacturing technology, type and b. Description of residual or unavoidable environmental impacts
volume of products and discharges: despite proposed mitigation measures;
e. For Category C projects, a detailed description on how c. Documentation of compliance with technical/substantive review
environmental efficiency and overall performance improvement criteria;
will be attained, or how an existing environmental problem will be d. Key issues/concerns and the proponent's response to these,
effectively solved or mitigated by the project, and including social acceptability measures;
f. A detailed location map of the impacted site showing relevant e. Assessment of the proposed EMP (including risk
features (e.g. slope, topography, human settlements). reduction/management plan) and amounts proposed for the
g. Timelines for construction and commissioning . Environmental Guarantee Fund and the Environmental Monitoring
Fund, and
5.2.7. EMS-based EMP. f. Recommended decision regarding the ECC application as well as
The EMS-based EMP is an option that proponents may undertake proposed ECC conditions.
in lieu of the EPRMP for single projects applying for ECC under
Category A-3 and B-3. 5.4.3. Decision Document
This is an official letter regarding the decision on the application. It
5.3 Public Hearing 1 Consultation Requirements may be in the form of an Environmental Compliance Certificate or
For projects under Category A-1, the conduct of public hearing as a Denial Letter. The ECC shall contain the scope and limitations of
part of the EIS review is mandatory unless otherwise determined the approved activities, as well as conditions to ensure compliance
by EMB. For all other undertakings, a public hearing is not with the Environmental Management Plan. The ECC shall also
mandatory unless specifically required by EMB. specify the setting up of an EMF and EGF, if applicable. No ECC
shall be released until the proponent has settled all liabilities, fines lapsed. However, the EMB may deny issuance of ECC if the
and other obligations with DENR. proponent fails to submit required additional information critical
to deciding on the ECC/CNC application, despite written request
A Denial Letter on the other hand shall specify the bases for the from EMB and despite an adequate period for the proponent to
decision. The ECC or Denial Letter shall be issued directly to the comply with the said requirement;
project proponent or its duly authorized representative, and 8.2.2. In cases where ECC issuance cannot be decided due to the
receipt of the letter shall be properly documented. The ECC of a proponent's inability to submit required additional information
project not implemented within five years from its date of within the prescribed period, the EMB shall return the application
issuance is deemed expired. The Proponent shall have to apply for to the proponent. The project proponent may resubmit its
a new ECC if it intends to pursue the project. The reckoning date application, including the required additional information, within
of project implementation is the date of ground breaking, based one (1) year for Category A projects and six (6) months for
on the proponent's work plan as submitted to the EMB. Category B projects without having to pay processing and other
fees. Otherwise, the matter shall be treated as a new application.
Section 6. Appeal
Any party aggrieved by the final decision on the ECC / CNC 8.2.3. In cases where EMB and the project proponent have
applications may, within 15 days from receipt of such decision, file exhausted all reasonable efforts to generate the information
an appeal on the following grounds: needed for deciding on the ECC/CNC application, the responsible
authority (Secretary or EMB Director/ Regional Director), shall
a. Grave abuse of discretion on the part of the deciding authority, make a decision based on the available information so as to
or comply with the prescribed timeframe. The decision shall
b. Serious errors in the review findings. nonetheless reflect a thorough assessment of impacts taking into
consideration (i) the significance of environmental impacts and
The DENR may adopt alternative conflict/dispute resolution risks; (ii) the carrying capacity of the environment; (iii) equity
procedures as a means to settle grievances between proponents issues with respect to use of natural resources, (iv) and the
and aggrieved parties to avert unnecessary legal action. Frivolous proponent's commitment, to institute effective environmental
appeals shall not be countenanced. management measures.
The proponent or any stakeholder may file an appeal to the 8.3 Amending an ECC
following: Requirements for processing ECC amendments shall depend on
the nature of the request but shall be focused on the information
Deciding Authority Where to file the appeal necessary to assess the environmental impact of such changes.
EMB Regional Office Director Office of the EMB Director
EMB Central Office Office of the DENR Secretary 8.3.1. Requests for minor changes to ECCs such as extension of
DENR Secretary Office of the President deadlines for submission of post-ECC requirements shall be
decided upon by the endorsing authority.
Section 7. The EIA Process in Relation to the Project Planning 8.3.2. Requests for major changes to ECCs shall be decided upon
Cycle by the deciding authority.
Proponents are directed under AO 42 to conduct simultaneously 8.3.3. For ECCs issued pursuant to an IEE or IEE checklist, the
the environmental impact study and the project planning or processing of the amendment application shall not exceed thirty
feasibility study. EMB may validate whether or not the EIS was (30) working days; and for ECCs issued pursuant to an EIS, the
integrated with project planning by requiring relevant processing shall not exceed sixty (60) working days. Provisions on
documentary proofs, such as the terms of reference for the automatic approval related to prescribed timeframes under AO 42
feasibility study and copies of the feasibility study report. shall also apply for the processing of applications to amend ECCs.
The EMB shall study the potential application of EIA to policy- Section 9. Monitoring of Projects with ECCs
based undertakings as a further step toward integrating and Post ECC monitoring of projects shall follow these guidelines.
streamlining the EIS system. Other details on requirements for monitoring of projects with
ECCs shall be stipulated in a procedural manual to be formulated
Section 8. EIS System Procedures by EMB.
8.1 Manual of Procedures
9.1 Multipartite Monitoring Team
8.1.1. The procedures to enable the processing of ECCICNC For projects under Category A, a multi-partite monitoring team
applications within the timeframes, specified in AO 42 shall be (MMT) shall be formed immediately after the issuance of an ECC.
prescribed in a Procedural Manual to be issued by the EMB Proponents required to establish an MMT shall put up an
Central Office within ninety (90) days from the date of this Order. Environmental Monitoring Fund (EMF) not later than the initial
8.1.2. The Manual of Procedures shall be updated as the need construction phase of the project.
arises to continually shorten the review and approval/denial
timeframes where feasible. Formulation of said procedures shall The MMT shall be composed of representatives of the proponent
conform to the following guidelines; and of stakeholder groups, including representatives from
concerned LGU's, locally accredited NGOs/POs, the community,
8.2 Processing Timeframe concerned EMB Regional Office, relevant government agencies,
and other sectors that may be identified during the negotiations.
8.2.1. If no decision is made within the specified timeframe, the
ECC/CNC application is deemed automatically approved and the The team shall be tasked to undertake monitoring of compliance
approving authority shall issue the ECC or CNC within five (5) with ECC conditions as well as the EMP. The MMT shall submit a
working days after the prescribed processing timeframe has
semi-annual monitoring report within January and July of each The President shall be apprised of the issues raised as well as the
year. actions taken by DENR to address these issues whenever
necessary.
The EMB shall formulate guidelines for operationalizing area-
based or cluster-based MMT. The Bureau may also develop Section 11. Information Systems Improvement
guidelines for delegating, monitoring responsibilities to other The information system on the EIS System implementation shall
relevant government agencies as may be deemed necessary. For be improved for the effective dissemination of information to the
projects whose significant environmental impacts do not persist public. The information system shall include regular updating of
after the construction phase or whose impacts could be addressed the status of ECC applications through a website and through
through other regulatory means or through the mandates of other other means.
government agencies, the operations of MMT may be terminated
immediately after construction or after a reasonable period during Section 12. Accreditation System
implementation. To enhance the quality of the EIS submitted to the DENR/EMB, the
EMB shall establish an accreditation system for individual
9.2 Self-monitoring and Third Party Audit professionals, academic and professional organizations that can be
The proponent shall also conduct regular self-monitoring of tapped to train professionals in conducting EIA using training
specific parameters indicated in the EMP through its modules approved by EMB.
environmental unit. The proponent's environmental unit shall
submit a semi-annual monitoring report within January and July of The EMB shall also work with DTI-BPS for an accreditation system
each year. for environmental and EMS auditors, consistent with provisions of
DAO 2003-14 on the Philippine Environmental Partnership
For projects with ECCs issued based on a PEPRMP, EPRMP, or an Program.
EMS-based EMP, a third party audit may be undertaken by a
qualified environmental or EMS auditor upon the initiative of the Section 13. Creation of an HAM Division and Strengthening of
proponent and in lieu of forming an MMT. The said proponent Review and Monitoring Capability
shall submit to EMB a copy of the audit findings and shall be held In order to effectively implement the provisions of this
accountable for the veracity of the report. The EMB may opt to administrative order, the current EIA ad hoc division at the EMB
validate the said report. Central Office and the EMB Regional Offices that are primarily in-
charge of processing ECC applications and post-ECC monitoring
9.3 Environmental Guarantee Fund shall be converted to a full-pledged Environmental Impact
An Environmental Guarantee Fund (EGF) shall be established for Assessment and Management Division (EIAMD). The Division shall
all co-located or single projects that have been determined by have the following structure and functions:
DENR to pose a significant public risk or where the project
requires rehabilitation or restoration. An EGF Committee shall be 13.1 The EIA Evaluation Section shall be in charge of screening
formed to manage the fund. It shall be composed of projects for coverage under the EIS System, EIS Scoping, and
representatives from the EMB Central Office, EMB Regional Office, evaluation of EIS's and IEE's submitted for ECC issuance. It shall
affected communities, concerned LGUs, and relevant government have three units responsible, respectively, for screening for
agencies identified by EMB. coverage, EIS Scoping, and evaluation of ECC applications. The
EMB may commission independent professionals, experts from
An integrated MOA on the MMT-EMF-EGF shall be entered into the academe and representatives from relevant government
among the EMB Central Office, EMB Regional Office, the agencies as members of the EIA Review Committee as may be
proponent, and representatives of concerned stakeholders. deer 31d necessary. Further, continual improvement of the
technical capability of the Staff of the EIA Division shall be
9.4 Abandonment undertaken.
For projects that shall no longer be pursued, the proponent should
inform EMB to relieve the former from the requirement for 13.2 The Impact Monitoring and Validation Section shall be in
continued compliance with the ECC conditions. For projects that charge of monitoring compliance to ECC conditions and
have already commenced implementation, an implementation of the Environmental Management Program
abandonment/decommissioning plan shall be submitted for (EMP): The unit shall also validate actual impacts as a basis for
approval by EMB at least six (6) months before the planned evaluating environmental performance and effectiveness of the
abandonment/decommissioning. The implementation of the plan EMP.
shall be verified by EMB.
13.3 In the EMB Central Office, there shall be a Systems Planning
ARTICLE Ill and Management Section. It shall ensure that a continually
STRENGTHENING THE IMPLEMENTATION OF THE PHILIPPINE EIS improving systems-oriented and integrated approach is followed
SYSTEM in implementing the Philippine EIS System vis-a-vis national
development programs. The section shall have two units
Section 10. Coordination with other Government Agencies and responsible for specific systems level concerns: (1) Project Level
other Organizations Systems Planning and Management Unit; and (2) Program and
Policy Level Systems Planning and Management Unit. This section
The DENR-EMB shall conduct regular consultations with DTI and shall also be responsible for technical coordination with the EIA
other pertinent government agencies, affected industry groups Division in the different EMB Regional Offices.
and other stakeholders on continually streamlining the processing
of ECC applications and post ECC implementation to fulfill the The organizational structure of the EMB Central Office is in Annex
policy and objectives of this administrative order. 1.
ARTICLE 1V
MISCELLANEOUS PROVISIONS
Per AU 42, the new position items for the EIA Division shall be
created out of the existing budget and vacant position items
within the government service, which shall be reclassified
accordingly.
The EMB Director or the EMB-RD may issue a Cease and Desist
Order (CDO) based on violations under the Philippine EIS System
to prevent grave or irreparable damage to the environment. Such
CDO shall be effective immediately. An appeal or any motion
seeking to lift the CDO shall not stay its effectivity. However, the
DENR shall act on such appeal or motion within ten (10) working
days from filing.
The EMB may publish the identities of firms that are in violation of
the EIA Law and its Implementing Rules and Regulations despite
repeated Notices of Violation and/or Cease and Desist Orders.
During the period that that the Procedural Manual and other
necessary guidelines are being prepared, existing guidelines which
are consistent with the provisions of this Order shall remain in
effect. Adequate resources shall be provided for the formulation
of the Procedural Manual and for the effective implementation of
this Order.
CHAPTER XII
Sec. 83. Upon the recommendation of the Secretary of Agriculture
PROVISIONS COMMON TO RESERVATIONS
and Commerce, the President may designate by proclamation any
tract or tracts of land of the public domain as reservations for the
use of the Commonwealth of the Philippines or of any of its Sec. 86. A certified copy of every proclamation of the President
branches, or of the inhabitants thereof, in accordance with issued under the provisions of this title shall be forwarded to the
regulations prescribed for this purpose, or for quasi-public uses or Director of Lands for record in his office, and a copy of this record
purposes when the public interest requires it, including shall be forwarded to the register of deeds of the province or city
reservations for highways, rights of way for railroads, hydraulic where the land lies. Upon receipt of such certified copy, the
power sites, irrigation systems, communal pastures or leguas Director of Lands shall order the immediate survey of the
comunales, public parks, public quarries, public fishponds, proposed reservation if the land has not yet been surveyed, and as
workingmens village and other improvements for the public soon as the plat has been completed, he shall proceed in
benefit. accordance with the next following section.
Sec. 84. Upon recommendation of the Secretary of Agriculture Sec. 87. If all the lands included in the proclamation of the
and Commerce, the President, may by proclamation, designate President are not registered under the Land Registration Act, the
any tract or tracts of the public domain for the exclusive use of the Solicitor-General, if requested to do so by the Secretary of
non-Christian Filipinos, including in the reservation, in so far as Agriculture and Commerce, shall proceed in accordance with the
practicable, the lands used or possessed by them, and granting to provision of section fifty-three of this Act.
each member not already the owner, by title or gratuitous patent, Sec. 88. The tract or tracts of land reserved under the provisions
of four or more hectares of land, the use and benefit only of a of section eighty-three shall be non-alienable and shall not be
tract of land not to exceed four hectares for each male member subject to occupation, entry, sale, lease, or other disposition until
over eighteen years of age or the head of a family. As soon as the again declared alienable under the provisions of this Act or by
Secretary of the Interior shall certify that the majority of the non- proclamation of the President.
Christian inhabitants of any given reservation have advanced
sufficiently in civilization, then the President may order that the TITLE VI
lands of the public domain within such reservation be granted GENERAL PROVISIONS
under the general provisions of this Act to the said inhabitants, CHAPTER XIII
and the subdivision and distribution of said lands as above APPLICATIONS: PROCEDURE, CONCESSION OF LANDS, AND
provided shall be taken into consideration in the final disposition LEGAL RESTRICTIONS AND ENCUMBRANCES
of the same. But any non-Christian inhabitant may at any time
apply for the general benefits of this Act provided the Secretary of
Sec. 89. All applications filed under the provisions of this Act shall
Agriculture and Commerce is satisfied that such inhabitant is be addressed to the Director of Lands.
qualified to take advantage of the provisions of the same:
Sec. 90. Every application under the provisions of this Act shall be
Provided, That all grants, deeds, patents and other instruments of made under oath and shall set forth:
conveyance of land or purporting to convey or transfer rights of
(a) The full name of applicant, his age, place of birth, citizenship,
property, privileges, or easements appertaining to or growing out civil status, and post-office address. In case the applicant is a
of lands, granted by sultans, datus, or other chiefs of the so-called
corporation, association or co-partnership, the application shall be
non-Christian tribes, without the authority of the Spanish accompanied with a certified copy of its articles of incorporation,
Government while the Philippines were under the sovereignty of
association or co-partnership together with an affidavit of its
Spain, or without the consent of the United States Government or President, manager, or other responsible officer, giving the names
of the Philippine Government since the sovereignty over the
of the stockholders or members, their citizenship, and the number
Archipelago was transferred from Spain to the United States, and of shares subscribed by each.
all deeds and other documents executed or issued or based upon
(b) That the applicant has all the qualifications required by this Act
the deeds, patents, and documents mentioned, are hereby in the case.
declared to be illegal, void, and of no effect.
(c) That he has none of the disqualifications mentioned herein.
Sec. 85. Upon recommendation by the Secretary of Agriculture (d) That the application is made in good faith, for the actual
and Commerce, the President may, by proclamation designate any
purpose of using the land for the object specified in the
tract or tracts of land of the public domain for the establishment application and for no other purpose, and that the land is suitable
of agricultural colonies; and although the disposition of the lands
for the purpose to which it is to be devoted.
to the colonists shall be made under the provisions of this Act, yet, (e) That the application is made for the exclusive benefit of the
while the Government shall have the supervision and
application and not, either directly or indirectly, for the benefit of
management of said colonies, the Secretary of Agriculture and any other person or persons, corporation, association, or
Commerce may make the necessary rules and regulations for the
partnership.
organization and internal administration of the same. The (f) As accurate a description of the land as may be given, stating its
Secretary of Agriculture and Commerce may also, under
nature the province, municipality, barrio, and sitio where it is
conditions to be established by the Assembly, turn over a colony
located, and its limits and boundaries, specifying those having area that may be granted to the applicant, and to deny or cancel
reference to accidents of the ground or permanent monuments, if or limit any application for concession, purchase, or lease if
any. convinced of the lack of means of the applicant for using the land
(g) Whether all or part of the land is occupied or cultivated or for the purpose for which he has requested it.
improved, and by whom, giving his post-office address, and Sec. 93. Lands applied for under this Act shall conform to the legal
whether the land has been occupied or cultivated or improved by subdivisions and shall be contiguous if comprising more than one
the applicant or his ascendant, the name of the ascendant, the subdivision. If subdivisions have not been made on the date of the
relationship with him, the date and place of the death of the application, the lands shall be rectangular in form so far as
ascendant, the date when the possession and cultivation began, practicable, but it shall be endeavored to make them conform to
and description of the improvements made, accompanying the legal subdivision as soon as the same has been made,
satisfactory evidence of the relationship of the applicant with the provided the interests of the applicant or grantee are protected;
ascendant, and of the death of the latter and the descendants left and the subdivision assigned to the applicant or grantee shall, so
by him, in case it is alleged that he occupied and cultivated the far as practicable, include the land improved or cultivated. The
land first; or whether there are indications of its having been regulations to be issued for the execution of the provisions of this
occupied, cultivated, or improved entirely or partially, and if so, in section shall take into account the legal subdivision to be made by
what such indications consist, whether he has made investigations the Government and the inadvisability of granting the best land at
as to when and by whom such improvements were made, and if a given place to only one person.
so, how such investigations were made and what was the result Sec. 94. In case the legal subdivisions have already been made at
thereof; or whether the land is not occupied, improved, or the time of the filing of the application, no charge shall be made
cultivated either entirely or partially, and there are no indications for the survey; but if the legal subdivisions have not yet been
of it having ever been occupied, improved, or cultivated, and in made, the cost of the survey shall be charged to the Government,
this case, what is the condition of the land. except in the following cases:
(h) That the land applied for is neither timber nor mineral land (a) In purchases under chapters five and ten of this Act, the cost of
and does not contain guano or deposits of salts or coal. the survey shall be charged to the purchaser if the same is a
(i) That the applicant agrees that a strip forty meters wide starting corporation, association, or partnership; in other purchases the
from the bank on each side of any river or stream that may be purchases, whoever it be, shall pay the total cost of the survey.
found on the land applied for, shall be demarcated and preserved (b) In leases, the cost of the survey shall be paid by the lessee; but
as permanent timberland to be planted exclusively to trees of at any time after the first five years from the approval of the lease,
known economic value, and that he shall not make any clearing and during Cost of the life of the same, the lessee shall be entitled
thereon or utilize the same for ordinary farming purposes even to the reimbursement of one-half of the cost of the survey, if he
after patent shall have been issued to him or a contract of lease shows to the satisfaction of the Director of Lands that he has
shall have been executed in his favor. 68 occupied and improved a sufficient area of the land or incurred
Sec. 91. The statements made in the application shall be sufficient expenses in connection therewith to warrant such
considered as essential conditions and parts of any concession, reimbursement.
title, or permit issued on the basis of such application, and any Section95. If before the delimitation and survey of a tract of public
false statements therein or omission of facts altering, changing, or land the President shall declare the same disposable or alienable
modifying the consideration of the facts set forth in such and such land shall be actually occupied by a person other than
statements, and any subsequent modification, alteration, or the applicant, the Director of Lands shall inform the occupant of
change of the material facts set forth in the application shall ipso his prior right to apply for the land and shall give him one hundred
facto produce the cancellation of the concession, title, or permit and twenty days time in which to file the application or apply for
granted. It shall be the duty of the Director of Lands, from time to the concession by any of the forms of disposition authorized by
time and whenever he may deem it advisable, to make the this Act, if such occupant is qualified to acquire a concession
necessary investigations for the purpose of ascertaining whether under this Act.
the material facts set out in the application are true, or whether Sec. 96. As soon as any land of the public domain has been
they continue to exist and are maintained and preserved in good surveyed, delimited, and classified, the President may, in the order
faith, and for the purposes of such investigation, the Director of issued by him declaring it open for disposition, designate a term
Lands is hereby empowered to issue subpoenas and subpoenas within which occupants with improvements but not entitled to
duces tecum and, if necessary, to obtain compulsory process from free patents may apply for the land occupied by them, if they have
the courts. In every investigation made in accordance with this the qualifications required by this Act.
section, the existence of bad faith, fraud, concealment, or Sec. 97. If in the case of the two last preceding sections, the
fraudulent and illegal modification of essential facts shall be occupant or occupants have not made application under any of
presumed if the grantee or possessor of the land shall refuse or the provisions of this Act at the expiration of the time limit fixed,
fail to obey a subpoena or subpoena duces tecum lawfully issued they shall lose any prior right to the land recognized by this Act,
by the Director of Lands or his authorized delegates or agents, or and the improvements on the land, if any, shall be forfeited to the
shall refuse or fail to give direct and specific answers to pertinent Government.
questions, and on the basis of such presumption, an order of Sec. 98. All rights in and interest to, and the improvements and
cancellation may issue without further proceedings. crops upon, land for which an application has been denied or
Sec. 92. Although the maximum area of public land that may be canceled or a patent or grant refused, or a contract or concession
acquired is fixed, yet the spirit of this Act is that the rule which rescinded or annulled, shall also be forfeited to the Government.
must determine the real area to be granted is the beneficial use of Sec. 99. The Secretary of Agriculture and Commerce may order
the land. The concession or disposition shall be for less than the such improvements and crops to be appraised separately, for sale
maximum area authorized if, at the time of the issuance of the to the new applicant or grantee, or may declare such land open
patent or of the concession or disposition, it shall appear that the only to sale or lease.
applicant is utilizing and is only able to utilize a smaller area, even Sec. 100. In case the cancellation is due to delinquency on the
though the application is for a greater area. For the purposes of part of the applicant or grantee, the same shall be entitled to the
this section, the Director of Lands is authorized to determine the reimbursement of the proceeds of the sale of the improvements
and crops, after deducting the total amount of his indebtedness to name of the Government of the Republic of the Philippines under
the Government and the expense incurred by it in the sale of the the signature of the President of the Philippines: Provided,
improvements or crops and in the new concession of the land. however, That the President of the Philippines may delegate to
Sec. 101. All actions for the reversion to the Government of lands the Secretary of Agriculture and Natural Resources 74 and/or the
of the public domain or improvements thereon shall be instituted Under secretary for Natural Resources 74 the power to sign
by the Solicitor-General or the officer acting in his stead, in the patents or certificates covering lands not exceeding one hundred
proper courts, in the name of the Commonwealth of the forty-four hectares in area, and to the Secretary of Agriculture and
Philippines. Natural Resources 75 the power to sign patents or certificates
Sec. 102. Any person, corporation, or association may file an covering lands exceeding one hundred forty-four hectares in area:
objection under oath to any application or concession under this Provided, further, That District Land Officers in every province are
Act, grounded on any reason sufficient under this Act for the hereby empowered to sign patents or certificates covering lands
denial or cancellation of the application or the denial of the patent not exceeding five hectares in area when the office of the District
or grant. If, after the applicant or grantee has been given suitable Land Officer is properly equipped to carry out the purposes of this
opportunity to be duly heard, the objection is found to be well Act: Provided, That no applicant shall be permitted to split the
founded, the Director of Lands shall deny or cancel the application area applied for by him in excess of the area fixed in this section
or deny patent or grant, and the person objecting shall, if among his relatives within the sixth degree of consanguinity or
qualified, be granted a prior right of entry for a term of sixty days affinity excepting the applicants married children who are actually
from the date of the notice. occupying the land: Provided, finally, That copies of said patents
Sec. 103. All the proofs, affidavits, and oaths of any kind required issued shall be furnished to the Bureau of Lands for record
or necessary under this Act may be made before the justice of the purposes. No patent or certificate shall be issued by the District
peace 71 of the municipality in which the land lies, or before the Land Officer unless the survey of the land covered by such patent
judge or clerk of the Court of First Instance of the province in or certificate, whether made by the Bureau of Lands or by a
which the land lies, or before any justice of the peace or private surveyor, has been approved by the Director of Lands. The
chargeable notary public of the province in which the land lies, or Director of Lands shall promptly act upon all surveys submitted to
before any officer or employee of the Bureau of Lands authorized him for approval and return the same to the District Land Officer
by law to administer oaths. within ninety days after receipt of such surveys by his office. In
The fees for the taking of final evidence before any of the officials case of disapproval, the Director of Lands shall state the reasons
herein-before mentioned shall be as follows: therefor. Any person aggrieved by the decision or action of the
For each affidavit, fifty centavos. District Land Officer may, within thirty days from receipt of the
For each deposition of the applicant or the witness, fifty centavos. copy of the said decision, appeal to the Director of Lands. Such
Sec. 104. Any owner of uncultivated agricultural land who patents or certificates shall be effective only for the purposes
knowingly permits application for the same to be made to the defined in Section one hundred and twenty-two of the land
Government and the land to be tilled and improved by a bona fide Registration Act, and actual conveyance of the land shall be
grantee without protesting to the Bureau of Lands within one year effected only as provided in said section.
after cultivation has begun, shall lose all to the part of the land so All surveys pending approval by the Director of Lands at the time
cultivated and improved, unless he shall bring action in the proper this Act takes effect shall be acted upon by him within ninety days
court before such action for recovery prescribes and obtains from the effectivity of this Act.
favorable judgment therein, in which case the court shall, upon its Section108. No patent shall issue nor shall any concession or
decision becoming final, order the payment to the grantee, within contract be finally approved unless the land has been surveyed
a reasonable period, of the indemnity fixed by said court for the and an accurate plat made thereof by the Bureau of Lands.
cultivation and improvement. Sec. 109. In no case shall any land be granted under the provisions
Sec. 105. If at any time the applicant or grantee shall die before of this Act when this affects injuriously the use of any adjacent
the issuance of the patent or the final grant of the land, or during land or of the waters, rivers, creeks, foreshore, roads, or
the life of the lease, or while the applicant or grantee still has roadsteads, or vest the grantee with other valuable rights that
obligations pending towards the Government, in accordance with may be detrimental to the public interest.
this Act, he shall be succeeded in his rights and obligations with Sec. 110. Patents or certificates issued under the provisions of this
respect to the land applied for or granted or leased under this Act Act shall not include nor convey the title to any gold, silver,
by his heirs in law, who shall be entitled to have issued to them copper, iron, or other metals or minerals, or other substances
the patent or final concession if they show that they have containing minerals, guano, gums, precious stones, coal, or coal oil
complied with the requirements therefor, and who shall be contained in lands granted thereunder. These shall remain to be
subrogated in all his rights and obligations for the purposes of this property of the State.
Act. Sec. 111. All persons receiving title to lands under the provisions
Sec. 106. If at any time after the approval of the application and of this Act shall hold such lands subject to the provisions hereof
before the issuance of a patent or the final concession of the land, and to the same public servitudes as exist upon lands owned by
or during the life of the lease, or at any time when the applicant or private persons, including those with reference to the littoral of
grantee still has obligations pending with the Government, in the sea and the banks of navigable rivers or rivers upon which
accordance with this Act, it appears that the land applied for is rafting may be done.
necessary, in the public interest, for the protection of any source Sec. 112. Said land shall further be subject to a right-of-way not
of water or for any work for the public benefit that the exceeding sixty (60) meters in width for public highways, railroads,
Government wishes to undertake, the Secretary of Agriculture and irrigation ditches, aqueducts, telegraph and telephone lines and
Commerce may order the cancellation of the application or the similar works as the Government or any public or quasi-public
non issuance of the patent or concession or the exclusion from service or enterprise, including mining or forest concessionaires,
the land applied for of such portion as may be required, upon may reasonably require for carrying on their business, with
payment of the value of the improvements, if any. damages for the improvements only. 77
Sec. 107. All patents or certificates for land granted under this Act Sec. 113. The beneficial use of water shall be the basis, the
shall be prepared in the Bureau of Lands and shall be issued in the measure, and the limit of all rights thereto, and the patents herein
granted shall be subject to the right of the Government to make may request the assistance of the provincial treasurer of the
such rules and regulations for the use of water and the protection province in which the land lies or may appoint a committee for
of the water supply, and for other public purposes, as it may deem such purpose in the province or in the municipality in which the
best for the public good. Whenever, by priority of possession, land lies. In no case shall the appraisal or reappraisal be less than
rights to the use of water for mining, agricultural, manufacturing, the expense incurred or which may be incurred by the
or other purposes have vested and accrued, and the same are Government in connection with the application or concession, nor
recognized and acknowledged by the local customs, or by the laws shall any reappraisal be made with an increase of more than one
and decisions of the courts, the possessors and owners of such hundred per centum upon the appraisal or reappraisal next
vested rights shall be maintained and protected in the same, and preceding.
all patents granted under this Act shall be subject to any vested Sec.117. All sums due and payable to the Government under this
and accrued rights to ditches and reservoirs used in connection Act, except homestead fees, shall draw simple interest at the rate
with such water rights as may have been acquired in the manner of four per centum per annum from and after the date in which
above described prior to April eleven, eighteen hundred and the debtor shall become delinquent.
ninety-nine. Sec. 118. Except in favor of the Government or any of its
Sec. 114. There is hereby reserved from the operation of all branches, units, or institutions, lands acquired under free patent
patents, certificates, entries, and grants by the Government or homestead provisions shall not be subject to encumbrance or
authorized under this Act the right to use for the purposes of alienation from the date of the approval of the application and for
power any flow of water in any stream running through or by the a term of five years from and after the date of issuance of the
land granted, the convertible power from which at ordinary low patent or grant, nor shall they become liable to the satisfaction of
water exceeds fifty horse power. Where the convertible power in any debt contracted prior to the expiration of said period, but the
any stream running through or by land granted under the improvements or crops on the land may be mortgaged or pledged
authority of this Act thus exceeds fifty horsepower, and there is no to qualified persons, associations, or corporations.
means of using such power except by the occupation of a part of No alienation, transfer, or conveyance of any homestead after five
the land granted under authority of this Act, then so much land as years and before twenty-five years after issuance of title shall be
is reasonably necessary for the mill site or site for the power valid without the approval of the Secretary of Agriculture and
house, and for a suitable dam and site for massing the water, is Commerce, which approval shall not be denied except on
hereby excepted from such grants, not exceeding four hectares, constitutional and legal grounds.
and a right of way to the nearest public highway from the land Sec. 119. Every conveyance of land acquired under the free patent
thus excepted, and also a right of way for the construction and or homestead provisions, when proper, shall be subject to
maintenance of such flumes, aqueducts, wires, poles, or order repurchase by the applicant, his widow, or legal heirs, within a
conduits as may be needed in conveying the water to the point period of five years from the date of the conveyance.
where its fall will yield the greatest power, or the power from the Sec. 120. Conveyance and encumbrance made by persons
point of conversion to the point of use, is reserved as a servitude belonging to the so-called non-Christian Filipinos or national
or easement upon the land granted by authority of this Act: cultural minorities, when proper, shall be valid if the person
Provided, however, That when the Government or any making the conveyance or encumbrance is able to read and can
concessionaire of the Government shall take possession of the understand the language in which the instrument or conveyance
land under this section which a grantee under this Act shall have or encumbrances is written. Conveyances and encumbrances
paid for, supposing it to be subject to grant under this Act, said made by illiterate non-Christian or literate non-Christians where
grantee shall be entitled to indemnity from the Government or the instrument of conveyance or encumbrance is in a language
the concessionaire, as the case may be, in the amount, if any, paid not understood by the said literate non-Christians shall not be
by him to the Government for the land taken from him by virtue valid unless duly approved by the Chairman of the Commission on
of this section: And provided, further, That with respect to the National Integration.
flow of water, except for converting the same into power
exceeding fifty horse power, said grantee shall be entitled to the Sec. 121. Except with the consent of the grantee and the approval
same use of the water flowing through or along his land that other of the Secretary of Natural Resources, and solely for commercial,
private owners enjoy under the law, subject to the governmental industrial, educational, religious or charitable purposes or for a
regulation provided in the previous section. Water power right of way, no corporation, association, or partnership may
privileges in which the convertible power at ordinary low water acquire or have any right, title, interest, or property right
shall exceed fifty horse power shall be disposed of only upon whatsoever to any land granted under the free patent,
terms established by an Act of the Assembly concerning the use, homestead, or individual sale provisions of this Act or to any
lease or acquisition of such water privilege. permanent improvement on such land.
The provisions of Section 124 of this Act to the contrary
Sec. 115. All lands granted by virtue of this Act, including notwithstanding, any acquisition of such land, rights thereto or
homesteads upon which final proof has not been made or improvements thereon by a corporation, association, or
approved, shall, even though and while the title remains in the partnership prior to the promulgation of this Decree for the
State, be subject to the ordinary taxes, which shall be paid by the purposes herein stated is deemed valid and binding; Provided,
grantee or the applicant, beginning with the year next following That no final decision of reversion of such land to the State has
the one in which the homestead application has been filed, or the been rendered by a court; And Provided, further, That such
concession has been approved, or the contract has been signed, acquisition is approved by the Secretary of Natural Resources
as the case may be, on the basis of the value fixed in such filing, within six (6) months from the effectivity of this Decree.
approval or signing of the application, concession or contract.
Sec. 122. No land originally acquired in any manner under the
Sec. 116. The appraisal or reappraisal of the lands or provisions of this Act, nor any permanent improvement on such
improvements subject to concession or disposition under this Act land, shall encumbered, alienated, or transferred, except to
shall be made by the Director of Lands, with the approval of the persons, corporations, associations, or partnerships who may
Secretary of Agriculture and Commerce. The Director of Lands acquire lands of the public domain under this Act or to
corporations organized in the Philippines authorized therefor by Sec. 2. Declaration of State Policies.- The State shall recognize and
their charters. promote all the rights of Indigenous Cultural
Except in cases of hereditary succession, no land or any portion Communities/Indigenous Peoples (ICCs/IPs) hereunder
thereof originally acquired under the free patent, homestead, or enumerated within the framework of the Constitution:
individual sale provisions of this Act, or any permanent
improvement on such land, shall be transferred or assigned to any
a) The State shall recognize and promote the rights of ICCs/IPs
individual, nor shall such land or any permanent improvement
within the framework of national unity and development;
thereon be leased to such individual, when the area of said land,
added to that of his own, shall exceed one hundred and forty-four
hectares. Any transfer, assignment, or lease made in violation b)The State shall protect the rights of ICCs/IPs to their ancestral
hereof, shall be null and void. domains to ensure their economic, social and cultural well being
Sec. 123. No land originally acquired in any manner under the and shall recognize the applicability of customary laws governing
provisions of any previous Act, ordinance, royal order, royal property rights or relations in determining the ownership and
decree, or any other provision of law formerly in force in the extent of ancestral domain;
Philippines with regard to public lands, terrenos baldios y
realengos, or lands of any other denomination that were actually c) The State shall recognize, respect and protect the rights of
or presumptively of the public domain, or by royal grant or in any ICCs/IPs to preserve and develop their cultures, traditions and
other form, nor any permanent improvement on such land, shall institutions. It shall consider these rights in the formulation of
be encumbered, alienated, or conveyed, except to persons, national laws and policies;
corporations or associations who may acquire land of the public
domain under this Act or to corporate bodies organized in the
Philippines whose charters authorize them to do so: Provided, d) The State shall guarantee that members of the ICCs/IPs
however, That this prohibition shall not be applicable to the regardless of sex, shall equally enjoy the full measure of human
conveyance or acquisition by reason of hereditary succession duly rights and freedoms without distinctions or discriminations;
acknowledged and legalized by competent courts; Provided,
further, That in the event of the ownership of the lands and e) The State shall take measures, with the participation of the
improvements mentioned in this section and in the last preceding ICCs/IPs concerned, to protect their rights and guarantee respect
section being transferred by judicial decree to persons, for their cultural integrity, and to ensure that members of the
corporations or associations not legally capacitated to acquire the ICCs/IPs benefit on an equal footing from the rights and
same under the provisions of this Act, such persons, corporations, opportunities which national laws and regulations grant to other
or associations shall be obliged to alienate said lands or members of the population and
improvements to others so capacitated within the precise period
of five years; otherwise, such property shall revert to the
Government. f) The State recognizes its obligations to respond to the strong
Sec. 124. Any acquisition, conveyance, alienation, transfer, or expression of the ICCs/IPs for cultural integrity by assuring
other contract made or executed in violation of any of the maximum ICC/IP participation in the direction of education,
provisions of sections one hundred and eighteen, one hundred health, as well as other services of ICCs/IPs, in order to render
and twenty, one hundred and twenty-one, one hundred and such services more responsive to the needs and desires of these
twenty two, and one hundred and twenty-three of this Act shall communities.
be unlawful and null and void from its execution and shall produce
the effect of annulling and cancelling the grant, title, patent, or Towards these ends, the State shall institute and establish the
permit originally issued, recognized or confirmed, actually or necessary mechanisms to enforce and guarantee the realization of
presumptively, and cause the reversion of the property and its these rights, taking into consideration their customs, traditions,
improvements to the State. values, beliefs, their rights to their ancestral domains.
Sec. 125. The provisions of sections twenty-two, twenty-three,
thirty-three, one hundred and twenty-two, and one hundred and CHAPTER ll
twenty-three of this Act, and any other provision or provisions DEFINITION OF TERMS
restricting or tending to restrict the right of persons, corporations,
or associations to acquire, hold, lease, encumber, dispose of, or
Sec. 3. Definition of Terms.- For purposes of this Act, the following
alienate land in the Philippines, or permanent improvements
terms shall mean:
thereon, or any interest therein, shall not be applied in cases in
which the right to acquire, hold or dispose of such land,
permanent improvements thereon or interests therein in the a) Ancestral Domains - Subject to Section 56
Philippines is recognized by existing treaties in favor of citizens or hereof, refer to all areas generally belonging to
subjects of foreign nations and corporations or associations ICCs/IPs comprising lands,inland waters,
organized and constituted by the same, which right, in so far as it coastal areas, and natural resources therein,
exists under such treaties, shall continue and subsist in the held under a claim of ownership, occupied or
manner and to the extent stipulated in said treaties, and only possessed by ICCs/IPs, themselves or through
while these are in force, but not thereafter. their ancestors, communally or individually
Sec. 126. All public auctions provided for in the foregoing chapters since time immemorial, continuously to the
in the disposition of public lands shall be held, wherever possible, present except when interrupted by war, force
in the province where the land is located, or, in the office of the majeure or displacement by force, deceit,
Bureau of Lands in Manila stealth or as a consequence of government
projects or any other voluntary dealings
entered into by government and private
REPUBLIC ACT NO. 8371: "The Indigenous Peoples Rights Act individuals, corporations, and which are
necessary to ensure their economic, social and h) Indigenous Cultural
cultural welfare. It shall include ancestral land, Communities/Indigenous Peoples - refer to a
forests, pasture, residential, agricultural, and group of people or homogenous societies
other lands individually owned whether identified by self-ascription and ascription by
alienable and disposable or otherwise, hunting other, who have continuously lived as
grounds, burial grounds, worship areas, bodies organized community on communally
of water, mineral and other natural resources, bounded and defined territory, and who have,
and lands which may no longer be exclusively under claims of ownership since time
occupied by ICCs/IPs but from which their immemorial, occupied, possessed customs,
traditionally had access to for their subsistence tradition and other distinctive cultural traits, or
and traditional activities, particularly the home who have, through resistance to political,
ranges of ICCs/IPs who are still nomadic and/or social and cultural inroads of colonization,
shifting cultivators; non-indigenous religions and culture, became
historically differentiated from the majority of
Filipinos. ICCs/IPs shall likewise include
b) Ancestral Lands - Subject to Section 56
peoples who are regarded as indigenous on
hereof, refers to land occupied, possessed and
account of their descent from the populations
utilized by individuals, families and clans who
which inhabited the country, at the time of
are members of the ICCs/IPs since time
conquest or colonization, or at the time of
immemorial, by themselves or through their
inroads of non-indigenous religions and
predecessors-in-interest, under claims of
cultures, or the establishment of present state
individual or traditional group
boundaries, who retain some or all of their
ownership,continuously, to the present except
own social, economic, cultural and political
when interrupted by war, force majeure or
institutions, but who may have been displaced
displacement by force, deceit, stealth, or as a
from their traditional domains or who may
consequence of government projects and
have resettled outside their ancestral domains;
other voluntary dealings entered into by
government and private
individuals/corporations, including, but not i) Indigenous Political Structure - refer to
limited to, residential lots, rice terraces or organizational and cultural leadership systems,
paddies, private forests, swidden farms and institutions, relationships, patterns and
tree lots; processed for decision-making and
participation, identified by ICCs/IPs such as,
but not limited to, Council of Elders, Council of
c) Certificate of Ancestral Domain Title - refers
Timuays, Bodong Holder, or any other tribunal
to a title formally recognizing the rights of
or body of similar nature;
possession and ownership of ICCs/IPs over
their ancestral domains identified and
delineated in accordance with this law; j) Individual Claims - refer to claims on land
and rights thereon which have been devolved
to individuals, families and clans including, but
d) Certificate of Ancestral Lands Title - refers to
not limited to, residential lots, rice terraces or
a title formally recognizing the rights of
paddies and tree lots;
ICCs/IPs over their ancestral lands;
Sec. 4. Concept of Ancestral Lands/Domains.- Ancestral d. Right in Case of Displacement.- In case displacement occurs as a
lands/domains shall include such concepts of territories which result of natural catastrophes, the State shall endeavor to resettle
cover not only the physical environment but the total the displaced ICCs/IPs in suitable areas where they can have
environment including the spiritual and cultural bonds to the area temporary life support system: Provided, That the displaced
which the ICCs/IPs possess, occupy and use and to which they ICCs/IPs shall have the right to return to their abandoned lands
have claims of ownership. until such time that the normalcy and safety of such lands shall be
determined: Provided, further, That should their ancestral domain
cease to exist and normalcy and safety of the previous settlements
Sec. 5. Indigenous Concept of Ownership.- Indigenous concept of are not possible, displaced ICCs/IPs shall enjoy security of tenure
ownership sustains the view that ancestral domains and all over lands to which they have been resettled: Provided,
resources found therein shall serve as the material bases of their furthermore, That basic services and livelihood shall be provided
cultural integrity. The indigenous concept of ownership generally to them to ensure that their needs are adequately addressed:
holds that ancestral domains are the ICC's/IP's private but
community property which belongs to all generations and
therefore cannot be sold, disposed or destroyed. It likewise covers e. Right to Regulate Entry of Migrants.- Right to regulate the entry
sustainable traditional resource rights. of migrant settlers and organizations into the domains;
Sec. 6. Composition of Ancestral Lands/Domains.- Ancestral lands f. Right to Safe and Clean Air and Water.- For this purpose, the
and domains shall consist of all areas generally belonging to ICCs/IPs shall have access to integrated systems for the
ICCs/IPs as referred under Sec. 3, items (a) and (b) of this Act. management of their inland waters and air space;
Sec. 7. Rights to Ancestral Domains.- The rights of ownership and g. Right to Claim Parts of Reservations.- The right to claim parts of
possession of ICCs/IPs t their ancestral domains shall be the ancestral domains which have been reserved for various
recognized and protected. Such rights shall include: purposes, except those reserved and intended for common and
public welfare and service; and
The State shall ensure that the fundamental human rights and Sec. 25. Basic Services.- The ICC/IP have the right to special
freedoms as enshrined in the Constitution and relevant measures for the immediate, effective and continuing
international instruments are guaranteed also to indigenous improvement of their economic and social conditions, including in
women. Towards this end, no provision in this Act shall be the areas of employment, vocational training and retraining,
interpreted so as to result in the diminution of rights and housing, sanitation, health and social security. Particular attention
privileges already recognized and accorded to women under shall be paid to the rights and special needs of indigenous women,
existing laws of general application. elderly, youth, children and differently-abled persons. Accordingly,
the State shall guarantee the right of ICCs/IPs to government 's
basic services which shall include, but not limited to water and
Sec. 22. Rights during Armed Conflict.- ICCs/IPs have the right to
electrical facilities, education, health and infrastructure.
special protection and security in periods of armed conflict. The
State shall observe international standards, in particular, the
Fourth Geneva Convention of 1949, for the protection of civilian Sec. 26. Women.- ICC/IP women shall enjoy equal rights and
populations in circumstances of emergency and armed conflict, opportunities with men, as regards the social, economic, political
and shall not recruit members of the ICCs/IPs against their will and cultural spheres of life. The participation of indigenous
into armed forces, and in particular, for the use against other women in the decision-making process in all levels, as well as in
ICCs/IPs; not recruit children of ICCs/IPs into the armed forces the development of society, shall be given due respect and
under any circumstance; nor force indigenous individuals to recognition.
abandon their lands, territories and means of subsistence, or
relocate them in special centers for military purposes under any The State shall provide full access to education, maternal and child
discriminatory condition. care, health and nutrition, and housing services to indigenous
women. Vocational, technical, professional and other forms of
Sec. 23. Freedom from Discrimination and Right to Equal training shall be provided to enable these women to fully
Opportunity and Treatment.- It shall be the right of the ICCs/IPs to participate in all aspects of social life. As far as possible, the State
be free from any form of discrimination, with respect to shall ensure that indigenous women have access to all services in
recruitment and conditions of employment, such that they may their own languages.
enjoy equal opportunities as other occupationally-related
benefits, informed of their rights under existing labor legislation Sec. 27. Children and Youth.- The State shall recognize the vital
and of means available to them for redress, not subject to any role of the children and youth of ICCs/IPs in nation-building and
coercive recruitment systems, including bonded labor and other shall promote and protect their physical, moral, spiritual, moral,
forms of debt servitude; and equal treatment in employment for spiritual, intellectual and social well-being. Towards this end, the
men and women, including the protection from sexual State shall support all government programs intended for the
harassment. development and rearing of the children and youth of ICCs/IPs for
civic efficiency and establish such mechanisms as may be
Towards this end, the State shall within the framework of national necessary for the protection of the rights of the indigenous
laws and regulations, and in cooperation with the ICCs/IPs children and youth.
concerned, adopt special measures to ensure the effective
protection with regard to the recruitment and conditions of Sec. 28. Integrated System of Education.- The State shall, through
employment of persons belonging to these communities, to the the NCIP, provide a complete, adequate and integrated system of
education, relevant to the needs of the children and Young people without the free and prior informed consent of the community
of ICCs/IPs. concerned; and
a. Explore, excavate or make diggings on archeological sites of the Sec. 40. Composition.- The NCIP shall be an independent agency
ICCs/IPs for the purpose of obtaining materials of cultural values under the Office of the President and shall be composed of seven
(7) Commissioners belonging to ICCs/IPs, one (1) of whom shall be f) Subject to existing laws, to enter into contracts, agreements, or
the Chairperson. The Commissioners shall be appointed by the arrangement, with government or private agencies or entities as
President of the Philippines from a list of recommendees may be necessary to attain the objectives of this Act, and subject
submitted by authentic ICCs/IPs: Provided, That the seven (7) to the approval of the President, to obtain loans from government
Commissioners shall be appointed specifically from each of the lending institutions and other lending institutions to finance its
following ethnographic areas: Region I and the Cordilleras; Region programs;
II; the rest of Luzon; Island Groups including Mindoro, Palawan,
Romblon, Panay and the rest of the Visayas; Northern and
g) To negotiate for funds and to accept grants, donations, gifts
Western Mindanao; Southern and Eastern Mindanao; and Central
and/or properties in whatever form and from whatever source,
Mindanao: Provided, That at least two (2) of the seven (7)
local and international, subject to the approval of the President of
Commissioners shall be women.
the Philippines, for the benefit of ICCs/IPs and administer the
same in accordance with the terms thereof; or in the absence of
Sec. 41. Qualifications, Tenure, Compensation.- The Chairperson any condition, in such manner consistent with the interest of
and the six (6) Commissioners must be natural born Filipino ICCs/IPs as well as existing laws;
citizens, bonafide members of ICCs/IPs as certified by his/her
tribe, experienced in ethnic affairs and who have worked for at
h) To coordinate development programs and projects for the
least ten (10) years with an ICC/IP community and/or any
advancement of the ICCs/IPs and to oversee the proper
government agency involved in ICC/IP, at least 35 years of age at
implementation thereof;
the time of appointment, and must be of proven honesty and
integrity: Provided, That at least two (2) of the seven (7)
Commissioners shall be the members of the Philippine Bar: i) To convene periodic conventions or assemblies of IPs to review,
Provided, further, That the members of the NCIP shall hold office assess as well as propose policies or plans;
for a period of three (3) years, and may be subject to re-
appointment for another term: Provided, furthermore, That no j) To advise the President of the Philippines on all matters relating
person shall serve for more than two (2) terms. Appointment to to the ICCs/IPs and to submit within sixty (60) days after the close
any vacancy shall only be for the unexpired term of the of each calendar year, a report of its operations and
predecessor and in no case shall a member be appointed or achievements;
designated in a temporary or acting capacity: Provided, finally,
That the Chairperson and the Commissioners shall be entitled to
compensation in accordance with the Salary Standardization Law. k) To submit to Congress appropriate legislative proposals
intended to carry out the policies under this Act;
Sec. 42. Removal from Office.- Any member of the NCIP may be
removed from office by the President, on his own initiative or l) To prepare and submit the appropriate budget to the Office of
upon recommendation by any indigenous community, before the the President;
expiration of his term for cause and after complying with due
process requirement of law. m) To issue appropriate certification as a pre-condition to the
grant of permit, lease, grant, or any other similar authority for the
Sec. 43. Appointment of Commissioners.- The President shall disposition, utilization, management and appropriation by any
appoint the seven (7) Commissioners of the NCIP within ninety private individual, corporate entity or any government agency,
(90) days from the effectivity of this Act. corporation or subdivision thereof on any part or portion of the
ancestral domain taking into consideration the consensus
approval of the ICCs/IPs concerned;
Sec. 44. Powers and Functions.- To accomplish its mandate, the
NCIP shall have the following powers, jurisdiction and function:
n) To decide all appeals from the decisions and acts of all the
various offices within the Commission:
a) To serve as the primary government agency through which
ICCs/IPs can seek government assistance and as the medium,
thorough which such assistance may be extended; o) To promulgate the necessary rules and regulations for the
implementation of this Act;
a. Ancestral Domains Delineated Prior to this Act - The provisions e. Preparation of Maps - On the basis of such investigation and the
hereunder shall not apply to ancestral domains/lands already findings of fact based thereon, the Ancestral Domains Office of
delineated according to DENR Administrative Order No. 2, series the NCIP shall prepare a perimeter map, complete with technical
of 1993, nor to ancestral lands and domains delineated under any descriptions, and a description of the natural features and
other community/ancestral domain program prior to the landmarks embraced therein;
enactment of his law. ICCs/IPs enactment of this law shall have the
right to apply for the issuance of a Certificate of Ancestral Domain
Title (CADT) over the area without going through the process f. Report of Investigation and Other Documents - A complete copy
outlined hereunder; of the preliminary census and a report of investigation, shall be
prepared by the Ancestral Domains Office of the NCIP;
d. Proof required - Proof of Ancestral Domain Claims shall include h. Endorsement to NCIP - Within fifteen (15) days from
the testimony of elders or community under oath, and other publication, and of the inspection process, the Ancestral Domains
documents directly or indirectly attesting to the possession or Office shall prepare a report to the NCIP endorsing a favorable
occupation of the area since time immemorial by such ICCs/IPs in action upon a claim that is deemed to have sufficient proof.
the concept of owners which shall be any one (1) of the following However, if the proof is deemed insufficient, the Ancestral
authentic documents: Domains Office shall require the submission of additional
evidence: Provided, That the Ancestral Domains Office shall reject
any claim that is deemed patently false or fraudulent after
1. Written accounts of the ICCs/IPs customs and traditions; inspection and verification: Provided, further, That in case of
rejection, the Ancestral Domains Office shall give the applicant
due notice, copy furnished all concerned, containing the grounds
2. Written accounts of the ICCs/IPs political structure and for denial. The denial shall be appealable to the NCIP: Provided,
institution; furthermore, That in cases where there are conflicting claims, the
Ancestral Domains Office shall cause the contending parties to
3. Pictures showing long term occupation such as those of old meet and assist them in coming up with a preliminary resolution
improvements, burial grounds, sacred places and old villages; of the conflict, without prejudice to its full adjudication according
to the selection below.
i. Turnover of Areas Within Ancestral Domains Managed by Other exists, broadcasting in a radio station will be a valid substitute:
Government Agencies - The Chairperson of the NCIP shall certify Provided, further, That mere posting shall be deemed sufficient if
that the area covered is an ancestral domain. The secretaries of both newspapers and radio station are not available
the Department of Agrarian Reform, Department of Environment
and Natural Resources, Department of the Interior and Local
f. Fifteen (15) days after such publication, the Ancestral Domains
Government, and Department of Justice, the Commissioner of the
Office shall investigate and inspect each application, and if found
National Development Corporation, and any other government
to be meritorious, shall cause a parcellary survey of the area being
agency claiming jurisdiction over the area shall be notified thereof.
claimed. The Ancestral Domains office shall reject any claim that is
Such notification shall terminate any legal basis for the jurisdiction
deemed patently false or fraudulent after inspection and
previously claimed;
verification. In case of rejection, the Ancestral Domains office shall
give the applicant due notice, copy furnished all concerned,
j. Issuance of CADT - ICCs/IPs whose ancestral domains have been containing the grounds for denial. The denial shall be appealable
officially delineated and determined by the NCIP shall be issued a to the NCIP. In case of conflicting claims among individual or
CADT in the name of the community concerned, containing a list indigenous corporate claimants, the Ancestral domains Office shall
of all those identified in the census; and cause the contending parties to meet and assist them in coming
up with a preliminary resolution of the conflict, without prejudice
to its full adjudication according to Sec. 62 of this Act. In all
k. Registration of CADTs - The NCIP shall register issued certificates
proceedings for the identification or delineation of the ancestral
of ancestral domain titles and certificates of ancestral lands titles
domains as herein provided, the Director of Lands shall represent
before the Register of Deeds in the place where the property is
the interest of the Republic of the Philippines; and
situated.
ARTICLE XII: NATIONAL ECONOMY AND PATRIMONY Section 4. The Congress shall, as soon as possible, determine, by
law, the specific limits of forest lands and national parks, marking
clearly their boundaries on the ground. Thereafter, such forest
Section 2. All lands of the public domain, waters, minerals, coal, lands and national parks shall be conserved and may not be
petroleum, and other mineral oils, all forces of potential energy, increased nor diminished, except by law. The Congress shall
fisheries, forests or timber, wildlife, flora and fauna, and other provide for such period as it may determine, measures to prohibit
natural resources are owned by the State. With the exception of logging in endangered forests and watershed areas.
agricultural lands, all other natural resources shall not be
alienated. The exploration, development, and utilization of natural
resources shall be under the full control and supervision of the Section 5. The State, subject to the provisions of this Constitution
State. The State may directly undertake such activities, or it may and national development policies and programs, shall protect the
enter into co-production, joint venture, or production-sharing rights of indigenous cultural communities to their ancestral lands
agreements with Filipino citizens, or corporations or associations to ensure their economic, social, and cultural well-being.
at least sixty per centum of whose capital is owned by such
citizens. Such agreements may be for a period not exceeding The Congress may provide for the applicability of customary laws
twenty-five years, renewable for not more than twenty-five years, governing property rights or relations in determining the
and under such terms and conditions as may be provided by law. ownership and extent of ancestral domain.
In cases of water rights for irrigation, water supply fisheries, or
industrial uses other than the development of water power,
beneficial use may be the measure and limit of the grant.
Section 7. Save in cases of hereditary succession, no private lands
shall be transferred or conveyed except to individuals,
The State shall protect the nation's marine wealth in its corporations, or associations qualified to acquire or hold lands of
archipelagic waters, territorial sea, and exclusive economic zone, the public domain.
and reserve its use and enjoyment exclusively to Filipino citizens.
Sec. 3 Definition of Terms. As used in and for purposes of this Act, (o) "Exclusive economic zone" means the water, sea bottom and
the following terms, whether in singular or plural, shall mean: subsurface measured from the baseline of the Philippine
archipelago up to two hundred nautical miles (200 n.m.) offshore.
(a) "Ancestral lands" refers to all lands, exclusively and actually
possessed, occupied, or utilized by indigenous cultural (p) "Existing mining/quarrying right" means a valid and subsisting
communities by themselves or through their ancestors in mining claim or permit or quarry permit or any mining lease
accordance with their customs and traditions since time contract or agreement covering a mineralized area granted/issued
immemorial, and as may be defined and delineated by law. under pertinent mining laws.
(b) "Block" or "meridional block" means an area bounded by one- (q) "Exploration" means the searching or prospecting for mineral
half (1/2) minute of latitude and one-half (1/2) minute of resources by geological, geochemical or geophysical surveys,
longitude, containing approximately eighty-one hectares (81 has.). remote sensing, test pitting, trenching, drilling, shaft sinking,
tunneling or any other means for the purpose of determining the
(c) "Bureau" means the Mines and Geosciences Bureau under the existence, extent, quantity and quality thereof and the feasibility
Department of Environment and Natural Resources. of mining them for profit.
(d) "Carrying capacity" refers to the capacity of natural and human (r) "Financial or technical assistance agreement" means a contract
environments to accommodate and absorb change without involving financial or technical assistance for large-scale
experiencing conditions of instability and attendant degradation. exploration, development, and utilization of mineral resources.
(e) "Contiguous zone" refers to water, sea bottom and substratum (s) "Force majeure" means acts or circumstances beyond the
measured twenty-four nautical miles (24 n.m.) seaward from base reasonable control of contractor including, but not limited to, war,
line of the Philippine archipelago. rebellion, insurrection, riots, civil disturbance, blockade, sabotage,
embargo, strike, lockout, any dispute with surface owners and
(f) "Contract area" means land or body of water delineated for other labor disputes, epidemic, earthquake, storm, flood or other
purposes of exploration, development, or utilization of the adverse weather conditions, explosion, fire, adverse action by
minerals found therein. government or by any instrumentality or subdivision thereof, act
of God or any public enemy and any cause that herein describe
(g) "Contractor" means a qualified person acting alone or in over which the affected party has no reasonable control.
consortium who is a party to a mineral agreement or to a financial
or technical assistance agreement. (t) "Foreign-owned corporation" means any corporation,
partnership, association, or cooperative duly registered in
(h) "Co-production agreement (CA)" means an agreement entered accordance with law in which less than fifty per centum (50%) of
into between the Government and one or more contractors in the capital is owned by Filipino citizens.
accordance with Section 26(b) hereof.
(u) "Government" means the government of the Republic of the
(i) "Department" means the Department of Environment and Philippines.
Natural Resources.
(v) "Gross output" means the actual market value of minerals or
(j) "Development" means the work undertaken to explore and mineral products from its mining area as defined in the National
prepare an ore body or a mineral deposit for mining, including the Internal Revenue Code.
construction of necessary infrastructure and related facilities.
(w) "Indigenous cultural community" means a group or tribe of
(k) "Director" means the Director of the Mines and Geosciences indigenous Filipinos who have continuously lived as communities
Bureau. on communally-bounded and defined land since time immemorial
and have succeeded in preserving, maintaining, and sharing
(l) "Ecological profile or eco-profile" refers to geographic-based common bonds of languages, customs, traditions, and other
instruments for planners and decision-makers which presents an distinctive cultural traits, and as may be defined and delineated by
law.
chemicals, liquids or other harmful by products and gases emitted
(x) "Joint Venture Agreement (JVA)" means an agreement entered from any facility utilized in mining operations for their disposal.
into between the Government and one or more contractors in
accordance with Section 26(c) hereof. (an) "President" means the President of the Republic of the
Philippines.
(y) "Mineral processing" means the milling, benefaction or
upgrading of ores or minerals and rocks or by similar means to (ao) "Private land" refers to any land belonging to any private
convert the same into marketable products. person which includes alienable and disposable land being
claimed by a holder, claimant, or occupant who has already
(z) "Mine wastes and tailings" shall mean soil and rock materials acquired a vested right thereto under the law, although the
from surface or underground mining and milling operations with corresponding certificate or evidence of title or patent has not
no economic value to the generator of the same. been actually issued.
(aa) "Minerals" refers to all naturally occurring inorganic (ap) "Public land" refers to lands of the public domain which have
substance in solid, gas, liquid, or any intermediate state excluding been classified as agricultural lands and subject to management
energy materials such as coal, petroleum, natural gas, radioactive and disposition or concession under existing laws.
materials, and geothermal energy.
(aq) "Qualified person" means any citizen of the Philippines with
(ab) "Mineral agreement" means a contract between the capacity to contract, or a corporation, partnership, association, or
government and a contractor, involving mineral production- cooperative organized or authorized for the purpose of engaging
sharing agreement, co-production agreement, or joint-venture in mining, with technical and financial capability to undertake
agreement. mineral resources development and duly registered in accordance
with law at least sixty per cent (60%) of the capital of which is
(ac) "Mineral land" means any area where mineral resources are owned by citizens of the Philippines: Provided, That a legally
found. organized foreign-owned corporation shall be deemed a qualified
person for purposes of granting an exploration permit, financial or
(ad) "Mineral resource" means any concentration of technical assistance agreement or mineral processing permit.
minerals/rocks with potential economic value.
(ar) "Quarrying" means the process of extracting, removing and
(ae) "Mining area" means a portion of the contract area identified disposing quarry resources found on or underneath the surface of
by the contractor for purposes of development, mining, private or public land.
utilization, and sites for support facilities or in the immediate
vicinity of the mining operations. (as) "Quarry permit" means a document granted to a qualified
person for the extraction and utilization of quarry resources on
(af) "Mining operation" means mining activities involving public or private lands.
exploration, feasibility, development, utilization, and processing.
(at) "Quarry resources" refers to any common rock or other
(ag) "Nongovernmental Organization (NGO)" includes nonstock, mineral substances as the Director of Mines and Geosciences
nonprofit organizations involved in activities dealing with resource Bureau may declare to be quarry resources such as, but not
and environmental conservation, management and protection. limited to, andesite, basalt, conglomerate, coral sand,
diatomaceous earth, diorite, decorative stones, gabbro, granite,
(ah) "Net assets" refers to the property, plant and equipment as limestone, marble, marl, red burning clays for potteries and bricks,
reflected in the audited financial statement of the contractor net rhyolite, rock phosphate, sandstone, serpentine, shale, tuff,
of depreciation, as computed for tax purposes, excluding appraisal volcanic cinders, and volcanic glass: Provided, That such quarry
increase and construction in progress. resources do not contain metals or metallic constituents and/or
other valuable minerals in economically workable quantities:
(ai) "Offshore" means the water, sea bottom, and subsurface from Provided, further, That non-metallic minerals such as kaolin,
the shore or coastline reckoned from the mean low tide level up feldspar, bullquartz, quartz or silica, sand and pebbles, bentonite,
to the two hundred nautical miles (200 n.m.) exclusive economic talc, asbestos, barite, gypsum, bauxite, magnesite, dolomite, mica,
zone including the archipelagic sea and contiguous zone. precious and semi-precious stones, and other non-metallic
minerals that may later be discovered and which the Director
(aj) "Onshore" means the landward side from the mean tide declares the same to be of economically workable quantities, shall
elevation, including submerged lands in lakes, rivers and creeks. not be classified under the category of quarry resources.
(ak) "Ore" means a naturally occurring substance or material from (au) "Region director" means the regional director of any mines
which a mineral or element can be mined and/or processed for regional office under the Department of Environment and Natural
profit. Resources.
(al) "Permittee" means the holder of an exploration permit. (av) "Regional office" means any of the mines regional offices of
the Department of Environment and Natural Resources.
(am) "Pollution control and infrastructure devices" refers to
infrastructure, machinery, equipment and/or improvements used (aw) "Secretary" means the Secretary of the Department of
for impounding, treating or neutralizing, precipitating, filtering, Environment and Natural Resources.
conveying and cleansing mine industrial waste and tailings as well
as eliminating or reducing hazardous effects of solid particles, (ax) "Special allowance" refers to payment to the claim-owners or
surface right-owners particularly during the transition period from
Presidential Decree No. 463 and Executive Order No. 279, series of
1987. Sec. 8 Authority of the Department. The Department shall be the
primary government agency responsible for the conservation,
(ay) "State" means the Republic of the Philippines. management, development, and proper use of the State's mineral
resources including those in reservations, watershed areas, and
(az) "Utilization" means the extraction or disposition of minerals. lands of the public domain. The Secretary shall have the authority
to enter into mineral agreements on behalf of the Government
CHAPTER II upon the recommendation of the Director, promulgate such rules
GOVERNMENT MANAGEMENT and regulations as may be necessary to implement the intent and
provisions of this Act.
Sec. 4 Ownership of Mineral Resources. - Mineral resources are
owned by the State and the exploration, development, utilization, Sec. 9 Authority of the Bureau. The Bureau shall have direct
and processing thereof shall be under its full control and charge in the administration and disposition of mineral lands and
supervision. The State may directly undertake such activities or it mineral resources and shall undertake geological, mining,
may enter into mineral agreements with contractors. metallurgical, chemical, and other researches as well as geological
and mineral exploration surveys. The Director shall recommend to
The State shall recognize and protect the rights of the indigenous the Secretary the granting of mineral agreements to duly qualified
cultural communities to their ancestral lands as provided for by persons and shall monitor the compliance by the contractor of the
the Constitution. terms and conditions of the mineral agreements. The Bureau may
Sec. 5 Mineral Reservations. When the national interest so confiscate surety, performance and guaranty bonds posted
requires, such as when there is a need to preserve strategic raw through an order to be promulgated by the Director. The Director
materials for industries critical to national development, or certain may deputize, when necessary, any member or unit of the
minerals for scientific, cultural or ecological value, the President Philippine National Police, barangay, duly registered
may establish mineral reservations upon the recommendation of nongovernmental organization (NGO) or any qualified person to
the Director through the Secretary. Mining operations in existing police all mining activities.
mineral reservations and such other reservations as may
thereafter be established, shall be undertaken by the Department Sec. 10 Regional Offices. There shall be as many regional offices in
or through a contractor: Provided, That a small scale mining the country as may be established by the Secretary, upon the
agreement for a maximum aggregate area of twenty-five percent recommendation of the Director.
(25%) of such mineral reservation, subject to valid existing mining
quarrying rights as provided under Section 112 Chapter XX hereof. Sec. 11 Processing of Applications. The system of processing
All submerged lands within the contiguous zone and in the applications for mining rights shall be prescribed in the rules and
exclusive economic zone of the Philippines are hereby declared to regulations of this Act.
be mineral reservations.
Sec. 12 Survey, Charting and Delineation of Mining Areas. A sketch
A ten per centum (10%) share of all royalties and revenues to be plan or map of the contract or mining area prepared by a
derived by the government from the development and utilization deputized geodetic engineer suitable for publication purposes
of the mineral resources within mineral reservations as provided shall be required during the filing of a mineral agreement or
under this Act shall accrue to the Mines and Geosciences Bureau financial or technical assistance agreement application.
to be allotted for special projects and other administrative Thereafter, the contract or mining area shall be surveyed and
expenses related to the exploration and development of other monumented by a deputized geodetic engineer or bureau
mineral reservations mentioned in Section 6 hereof. geodetic engineer and the survey plan shall be approved by the
Director before the approval of the mining feasibility.
Sec. 6 Other Reservations. Mining operations in reserved lands
other than mineral reservations may be undertaken by the Sec. 13 Meridional Blocks. For purposes of the delineation of the
Department, subject to limitations as herein provided. In the contract of mining areas under this Act, the Philippine territory
event that the Department cannot undertake such activities, they and its exclusive economic zone shall be divided into meridional
may be undertaken by a qualified person in accordance with the blocks of one-half (1/2) minute of latitude and one-half (1/2)
rules and regulations promulgated by the Secretary. The right to minute of longitude.
develop and utilize the minerals found therein shall be awarded by
the President under such terms and conditions as recommended Sec. 14 Recording System. There shall be established a national
by the Director and approved by the Secretary. Provided, That the and regional filing and recording system. A mineral resource
party who undertook the exploration of said reservation shall be database system shall be set up in the Bureau which shall include,
given priority. The mineral land so awarded shall be automatically among others, a mineral rights management system. The Bureau
excluded from the reservation during the term of the agreement: shall publish at least annually, a mineral rights management
Provided, further, That the right of the lessee of a valid mining system. The Bureau shall publish at least annually, a mineral
contract existing within the reservation at the time of its gazette of nationwide circulation containing among others, a
establishment shall not be prejudiced or impaired. current list of mineral rights, their location in the map, mining
rules and regulations, other official acts affecting mining, and
Sec. 7 Periodic Review of Existing Mineral Reservations. The other information relevant to mineral resources development. A
Secretary shall periodically review existing mineral reservations for system and publication fund shall be included in the regular
the purpose of determining whether their continued existence is budget of the Bureau.
consistent with the national interest, and upon the
recommendation, the President may, by proclamation, alter or
modify the boundaries thereof or revert the same to the public CHAPTER III
domain without prejudice to prior existing rights. SCOPE OF APPLICATION
annual review and relinquishment or renewal upon the
Sec. 15 Scope of Application. This Act shall govern the exploration, recommendation of the Director.
development, utilization and processing of all mineral resources.
Sec. 22 Maximum Areas for Exploration Permit. The maximum
Sec. 16 Opening of Ancestral Lands for Mining Operations. No area that a qualified person may hold at any one time shall be:
ancestral land shall be opened for mining operations without the
prior consent of the indigenous cultural community concerned. (a) Onshore, in any one province -
Sec. 17 Royalty Payments for Indigenous Cultural Communities. In (1) For individuals, twenty (20) blocks; and
the event of an agreement with an indigenous cultural community
pursuant to the preceding section, the royalty payment, upon (2) (2) For partnerships, corporations, cooperatives, or
utilization of the minerals shall be agreed upon by the parties. The associations, two hundred (200) blocks.
said royalty shall form part of a trust fund for the socioeconomic
well-being of the indigenous cultural community. (b) Onshore, in the entire Philippines -
Sec. 18 Areas Open to Mining Operations. Subject to any existing (1) For individuals, forty (40) blocks; and
rights or reservations and prior agreements of all parties, all
mineral resources in public or private lands, including timber or (2) For partnerships, corporations, cooperatives, or associations,
forestlands as defined in existing laws shall be open to mineral four hundred (400) blocks.
agreements or financial or technical assistance agreement
applications. Any conflict that may arise under this provision shall (c) Onshore, beyond five hundred meters (500m) from the mean
be heard and resolved by the panel of arbitrators. low tide level -
Sec. 19 Areas Closed to Mining Applications. Mineral agreement (1) For individuals, one hundred (100) blocks; and
or financial or technical assistance agreement applications shall
not be allowed: (2) For partnerships, corporations, cooperatives, or associations,
one thousand (1,000) blocks.
(a) In military and other government reservations, except upon
prior written clearance by the government agency concerned; Sec. 23 Rights and Obligations of the Permittee. An exploration
permit shall grant to the permittee, his heirs or successors-in-
(b) Near or under public or private buildings, cemeteries, interest, the right to enter, occupy and explore the area: Provided,
archeological and historic sites, bridges, highways, waterways, That if private or other parties are affected, the permittee shall
railroads, reservoirs, dams or other infrastructure projects, public first discuss with the said parties the extent, necessity, and
or private works including plantations or valuable crops, except manner of his entry, occupation and exploration and in case of
upon written consent of the government agency or private entity disagreement, a panel of arbitrators shall resolve the conflict or
concerned; disagreement.
(c) In areas covered by valid and existing mining rights; The permittee shall undertake an exploration work on the area
specified by its permit based on an approved work program.
(d) In areas expressedly prohibited by law;
Any expenditure in excess of the yearly budget of the approved
(e) In areas covered by small-scale miners as defined by law unless work program may be carried forward and credited to the
with prior consent of the small-scale miners, in which case a succeeding years covering the duration of the permit. The
royalty payment upon the utilization of minerals shall be agreed Secretary, through the Director, shall promulgate rules and
upon by the parties, said royalty forming a trust fund for the regulations governing the terms and conditions of the permit.
socioeconomic development of the community concerned; and
The permittee may apply for a mineral production sharing
(f) Old growth or virgin forests, proclaimed watershed forest agreement, joint venture agreement, co-production agreement or
reserves, wilderness areas, mangrove forests, mossy forests, financial or technical assistance agreement over the permit area,
national parks, provincial/municipal forests, parks, greenbelts, which application shall be granted if the permittee meets the
game refuge and bird sanctuaries as defined by law in areas necessary qualifications and the terms and conditions of any such
expressly prohibited under the National Integrated Protected agreement: Provided, That the exploration period covered by the
areas System (NIPAS) under Republic Act No. 7586, Department exploration permit shall be included as part of the exploration
Administrative Order No. 25, series of 1992 and other laws. period of the mineral agreement or financial or technical
assistance agreement.
CHAPTER IV
EXPLORATION PERMIT Sec. 24 Declaration of Mining Project Feasibility. A holder of an
exploration permit who determines the commercial viability of a
Sec. 20 Exploration Permit. An exploration permit grants the right project covering a mining area may, within the term of the permit,
to conduct exploration for all minerals in specified areas. The file with the Bureau a declaration of mining project feasibility
Bureau shall have the authority to grant an exploration permit to a accompanied by a work program for development. The approval
qualified person. of the mining project feasibility and compliance with other
requirements provided in this Act shall entitle the holder to an
Sec. 21 Terms and Conditions of the Exploration Permit. An exclusive right to a mineral production sharing agreement or other
exploration permit shall be for a period of two (2) years, subject to mineral agreements or financial or technical assistance
agreement.
(c) Offshore, in the entire Philippines -
Sec. 25 Transfer or Assignment. An exploration permit may be
transferred or assigned to a qualified person subject to the (1) For individuals, fifty (50) blocks;
approval of the Secretary upon the recommendation of the
Director. (2) For partnerships, cooperatives, associations, or corporations,
five hundred (500) blocks; and
CHAPTER V
MINERAL AGREEMENTS (3) For the exclusive economic zone, a larger area to be
determined by the Secretary.
Sec. 26 Modes of Mineral Agreement. For purposes of mining
operations, a mineral agreement may take the following forms as The maximum areas mentioned above that a contractor may hold
herein defined: under a mineral agreement shall not include mining/quarry areas
under operating agreements between the contractor and a
(a) Mineral production sharing agreement - is an agreement claimowner/lessee/permittee/licensee entered into under
where the Government grants to the contractor the exclusive right Presidential Decree No. 463.
to conduct mining operations within a contract area and shares in
the gross output. The contractor shall provide the financing, Sec. 29 Filing and Approval of Mineral Agreements. All proposed
technology, management and personnel necessary for the mineral agreements shall be filed in the region where the areas of
implementation of this agreement. interest are located, except in mineral reservations which shall be
filed with the Bureau.
(b) Co-production agreement - is an agreement between the
Government and the contractor wherein the Government shall The filing of a proposal for a mineral agreement shall give the
provide inputs to the mining operations other than the mineral proponent the prior right to areas covered by the same. The
resource. proposed mineral agreement will be approved by the Secretary
and copies thereof shall be submitted to the President. Thereafter,
(c) Joint venture agreement - is an agreement where a joint- the President shall provide a list to Congress of every approved
venture company is organized by the Government and the mineral agreement within thirty (30) days from its approval by the
contractor with both parties having equity shares. Aside from Secretary.
earnings in equity, the Government shall be entitled to a share in
the gross output. Sec. 30 Assignment/Transfer. Any assignment or transfer of rights
and obligations under any mineral agreement except a financial or
A mineral agreement shall grant to the contractor the exclusive technical assistance agreement shall be subject to the prior
right to conduct mining operations and to extract all mineral approval of the Secretary. Such assignment or transfer shall be
resources found in the contract area. In addition, the contractor deemed automatically approved if not acted upon by the
may be allowed to convert his agreement into any of the modes of Secretary within thirty (30) working days from official receipt
mineral agreements or financial or technical assistance agreement thereof, unless patently unconstitutional or illegal.
covering the remaining period of the original agreement subject
to the approval of the Secretary. Sec. 31 Withdrawal from Mineral Agreements. The contractor
may, by giving due notice at any time during the terms of the
Sec. 27 Eligibility. A qualified person may enter into any of the agreement, apply for the cancellation of the mineral agreement
three (3) modes of mineral agreement with the government for due to causes which, in the opinion of the contractor, make
the exploration, development and utilization of mineral resources: continued mining operations no longer feasible or viable. The
Provided, That in case the applicant has been in the mining Secretary shall consider the notice and issue its decision within a
industry for any length of time, he should possess a satisfactory period of thirty (30) days: Provided, That the contractor has met
environmental track record as determined by the Mines and all its financial, fiscal and legal obligations.
Geosciences Bureau and in consultation with the Environment
Management Bureau of the Department. Sec. 32 Terms. Mineral agreements shall have a term not
exceeding twenty-five (25) years to start from the date of
Sec. 28 Maximum Areas for Mineral Agreement. The maximum execution thereof, and renewable for another term not exceeding
area that a qualified person may hold at any time under a mineral twenty-five (25) years under the same terms and conditions
agreement shall be: thereof, without prejudice to charges mutually agreed upon by
the parties. After the renewal period, the operation of the mine
(a) Onshore, in any one province - may be undertaken by the Government or through a contractor.
The contract for the operation of a mine shall be awarded to the
(1) For individuals, ten (10) blocks; and highest bidder in a public bidding after due publication of the
notice thereof: Provided, That the contractor shall have the right
(2) For partnerships, cooperatives, associations, or corporations, to equal the highest bid upon reimbursement of all reasonable
one hundred (100) blocks. expenses of the highest bidder.
(e) Representations and warranties that the contractor has or has Sec. 37 Filing and Evaluation of Financial or Technical Assistance
access to all the financing, managerial and technical expertise and, Agreement Proposals. All financial or technical assistance
if circumstances demand, the technology required to promptly agreement proposals shall be filed with the Bureau after payment
and effectively carry out the objectives of the agreement with the of the required processing fees. If the proposal is found to be
understanding to timely deploy these resources under its sufficient and meritorious in form and substance after evaluation,
supervision pursuant to the periodic work programs and related it shall be recorded with the appropriate government agency to
budgets, when proper, providing an exploration period up to two give the proponent the prior right to the area covered by such
(2) years, extendible for another two (2) years but subject to proposal: Provided, That existing mineral agreements, financial or
annual review by the Secretary in accordance with the technical assistance agreements and other mining rights are not
implementing rules and regulations of this Act, and further, impaired or prejudiced thereby. The Secretary shall recommend
subject to the relinquishment obligations; its approval to the President.
(f) Representations and warranties that, except for payments for Sec. 38 Terms of Financial or Technical Assistance Agreement. A
dispositions for its equity, foreign investments in local enterprises financial or technical assistance agreement shall have a term not
which are qualified for repartriation, and local supplier's credits exceeding twenty-five (25) years to start from the execution
and such other generally accepted and permissible financial thereof, renewable for not more than twenty-five (25) years under
schemes for raising funds for valid business purposes, the such terms and conditions as may be provided by law.
contractor shall not raise any form of financing from domestic
sources of funds, whether in Philippine or foreign currency, for Sec. 39 Option to Convert into a Mineral Agreement. The
conducting its mining operations for and in the contract area; contractor has the option to convert the financial or technical
assistance agreement to a mineral agreement at any time during
(g) The mining operations shall be conducted in accordance with the term of the agreement, if the economic viability of the
the provisions of this Act and its implementing rules and contract area is found to be inadequate to justify large-scale
regulations; mining operations, after proper notice to the Secretary as
provided for under the implementing rules and regulations:
(h) Work programs and minimum expenditures commitments; Provided, That the mineral agreement shall only be for the
remaining period of the original agreement.
cancellation of such permit, the holder thereof shall be given the
In the case of a foreign contractor, it shall reduce its equity to forty opportunity to be heard in an investigation conducted for the
percent (40%) in the corporation, partnership, association, or purpose.
cooperative. Upon compliance with this requirement by the
contractor, the Secretary shall approve the conversion and execute Sec. 46 Commercial Sand and Gravel Permit. Any qualified person
the mineral production-sharing agreement. may be granted a permit by the provincial governor to extract and
remove sand and gravel or other loose or unconsolidated
Sec. 40 Assignment/Transfer. A financial or technical assistance materials which are used in their natural state, without
agreement may be assigned or transferred, in whole or in part, to undergoing processing from an area of not more than five
a qualified person subject to the prior approval of the President: hectares (5 has.) and in such quantities as may be specified in the
Provided, That the President shall notify Congress of every permit.
financial or technical assistance agreement assigned or converted
in accordance with this provision within thirty (30) days from the Sec. 47 Industrial Sand and Gravel Permit. Any qualified person
date of the approval thereof. may be granted an industrial sand and gravel permit by the
Bureau for the extraction of sand and gravel and other loose or
Sec. 41 Withdrawal from Financial or Technical Assistance unconsolidated materials that necessitate the use of mechanical
Agreement. The contractor shall manifest in writing to the processing covering an area of more than five hectares (5 has.) at
Secretary his intention to withdraw from the agreement, if in his any one time. The permit shall have a term of five (5) years,
judgement the mining project is no longer economically feasible, renewable for a like period but not to exceed a total term of
even after he has exerted reasonable diligence to remedy the twenty-five (25) years.
cause or the situation. The Secretary may accept the withdrawal:
Provided, That the contractor has complied or satisfied all his Sec. 48 Exclusive Sand and Gravel Permit. Any qualified person
financial, fiscal or legal obligations. may be granted an exclusive sand and gravel permit by the
provincial governor to quarry and utilize sand and gravel or other
CHAPTER VII loose or unconsolidated materials from public lands for his own
SMALL-SCALE MINING use, provided that there will be no commercial disposition
thereof.
Sec. 42 Small-scale Mining. Small-scale mining shall continue to be
governed by Republic Act No. 7076 and other pertinent laws. A mineral agreement or a financial technical assistance agreement
contractor shall, however, have the right to extract and remove
CHAPTER VIII sand and gravel and other loose unconsolidated materials without
QUARRY RESOURCES need of a permit within the area covered by the mining
agreement for the exclusive use in the mining operations:
Sec. 43 Quarry Permit. Any qualified person may apply to the Provided, That monthly reports of the quantity of materials
provincial/city mining regulatory board for a quarry permit on extracted therefrom shall be submitted to the mines regional
privately-owned lands and/or public lands for building and office concerned: Provided, further, That said right shall be
construction materials such as marble, basalt, andesite, coterminous with the expiration of the agreement.
conglomerate, tuff, adobe, granite, gabbro, serpentine, inset filing
materials, clay for ceramic tiles and building bricks, pumice, perlite Holders of existing mining leases shall likewise have the same
and other similar materials that are extracted by quarrying from rights as that of a contractor: Provided, That said right shall be
the ground. The provincial governor shall grant the permit after coterminous with the expiry dates of the lease.
the applicant has complied with all the requirements as
prescribed by the rules and regulations. Sec. 49 Government Gratuitous Permit. Any government entity or
instrumentality may be granted a gratuitous permit by the
The maximum area which a qualified person may hold at any one provincial governor to extract sand and gravel, quarry or loose
time shall be five hectares (5 has.): Provided, That in large-scale unconsolidated materials needed in the construction of building
quarry operations involving cement raw materials, marble, and/or infrastructure for public use or other purposes over an
granite, sand and gravel and construction agreements, a qualified area of not more than two hectares (2 has.) for a period
person and the government may enter into a mineral agreement coterminous with said construction.
as defined herein.
Sec. 50 Private Gratuitous Permit. Any owner of land may be
A quarry permit shall have a term of five (5) years, renewable for granted a private gratuitous permit by the provincial governor.
like periods but not to exceed a total term of twenty-five (25)
years, No quarry permit shall be issued or granted on any area Sec. 51 Guano Permit. Any qualified person may be granted a
covered by a mineral agreement, or financial or technical guano permit by the provincial governor to extract and utilize
assistance agreement. loose unconsolidated guano and other organic fertilizer materials
in any portion of a municipality where he has established
Sec. 44 Quarry Fee and Taxes. A permittee shall, during the term domicile. The permit shall be for specific caves and/or for confined
of his permit, pay a quarry fee as provided for under the sites with locations verified by the Department's field officer in
implementing rules and regulations. The permittee shall also pay accordance with existing rules and regulations.
the excise tax as provided by pertinent laws.
Sec. 52 Gemstone Gathering Permit. Any qualified person may be
Sec. 45 Cancellation of Quarry Permit. A quarry permit may be granted a non-exclusive gemstone gathering permit by the
cancelled by the provincial governor for violations of the provincial governor to gather loose stones useful as gemstones in
provisions of this Act or its implementing rules and regulations or rivers and other locations.
the terms and conditions of said permit: Provided, That before the
CHAPTER IX
TRANSPORT, SALE AND PROCESSING OF MINERALS Sec. 59 Training and Development. A contractor shall maintain an
effective program of manpower training and development
Sec. 53 Ore Transport Permit. A permit specifying the origin and throughout the term of the mineral agreement and shall
quantity of non-processed mineral ores or minerals shall be encourage and train Filipinos to participate in all aspects of the
required for their transport. Transport permits shall be issued by mining operations, including the management thereof. For highly-
the mines regional director who has jurisdiction over the area technical and specialized mining operations, the contractor may,
where the ores were extracted. In the case of mineral ores or subject to the necessary government clearances, employ qualified
minerals being transported from the small-scale mining areas to foreigners.
the custom mills or processing plants, the Provincial Mining
Regulatory Board (PMRB) concerned shall formulate their own Sec. 60 Use of Indigenous Goods, Services and Technologies. A
policies to govern such transport of ores produced by small-scale contractor shall give preference to the use of local goods, services
miners. The absence of a permit shall be considered as prima facie and scientific and technical resources in the mining operations,
evidence of illegal mining and shall be sufficient cause for the where the same are of equivalent quality, and are available on
Government to confiscate the ores or minerals being transported, equivalent terms as their imported counterparts.
the tools and equipment utilized, and the vehicle containing the
same. Ore samples not exceeding two metric tons (2 m.t.) to be Sec. 61 Donations/Turn Over of Facilities. Prior to cessation of
used exclusively for assay or pilot test purposes shall be exempted mining operations occasioned by abandonment or withdrawal of
from such requirement. operations, on public lands by the contractor, the latter shall have
a period of one (1) year therefrom within which to remove his
Sec. 54 Mineral Trading Registration. No person shall engage in the improvements; otherwise, all the social infrastructure and
trading of mineral products, either locally or internationally, unless facilities shall be turned over or donated tax-free to the proper
registered with the Department of Trade and Industry and government authorities, national or local, to ensure that said
accredited by the Department, with a copy of said registration infrastructure and facilities are continuously maintained and
submitted to the Bureau. utilized by the host and neighboring communities.
Sec. 55 Minerals Processing Permit. No person shall engage in the Sec. 62 Employment of Filipinos. A contractor shall give preference
processing of minerals without first securing a minerals processing to Filipino citizens in all types of mining employment within the
permit from the Secretary. Minerals processing permit shall be for country insofar as such citizens are qualified to perform the
a period of five (5) years renewable for like periods but not to corresponding work with reasonable efficiency and without
exceed a total term of twenty-five (25) years. In the case of hazard to the safety of the operations. The contractor, however,
mineral ores or minerals produced by the small-scale miners, the shall not be hindered from hiring employees of his own selection,
processing thereof as well as the licensing of their custom mills, or subject to the provision of Commonwealth Act No. 613, as
processing plants shall continue to be governed by the provisions amended, for technical and specialized work which in his
of Republic Act No. 7076. judgement and with the approval of the Director, required highly-
specialized training or long experience in exploration,
Sec. 56 Eligibility of Foreign-owned/-controlled Corporation. A development or utilization of mineral resources: Provided, That in
foreign-owned/-controlled corporation may be granted a mineral no case shall each employment exceed five (5) years or the
processing permit. payback period as represented in original project study, whichever
is longer: Provided, further, That each foreigner employed as mine
CHAPTER X manager, vice-president for operations or in an equivalent
DEVELOPMENT OF MINING COMMUNITIES, SCIENCE AND managerial position in charge of mining, milling, quarrying or
MINING TECHNOLOGY drilling operation shall:
Sec. 57 Expenditure for Community Development and Science and (a) Present evidence of his qualification and work experience; or
Mining Technology. A contractor shall assist in the development of
its mining community, the promotion of the general welfare of its (b) Shall pass the appropriate government licensure examination;
inhabitants, and the development of science and mining or
technology.
(c) In special cases, may be permitted to work by the Director for a
Sec. 58 Credited Activities. Activities that may be credited as period not exceeding one (1) year: Provided, however, That if
expenditures for development of mining communities, and reciprocal privileges are extended to Filipino nationals in the
science and mining technology are the following: country of domicile, the Director may grant waivers or
exemptions.
(a) Any activity or expenditure intended to enhance the
development of the mining and neighboring communities of a CHAPTER XI
mining operation other than those required or provided for under SAFETY AND ENVIRONMENTAL PROTECTION
existing laws, or collective bargaining agreements, and the like:
and Sec. 63 Mines Safety and Environmental Protection. All contractors
and permittees shall strictly comply with all the mines safety rules
(b) Any activity or expenditure directed towards the development and regulations as may be promulgated by the Secretary
of geosciences and mining technology such as, but not limited to, concerning the safe and sanitary upkeep of the mining operations
institutional and manpower development, and basic and applied and achieve waste-free and efficient mine development.
researches. Appropriate supervision and control mechanisms shall Personnel of the Department involved in the implementation of
be prescribed in the implementing rules and regulations of this mines safety, health and environmental rules and regulations shall
Act. be covered under Republic Act No. 7305.
Sec. 64 Mine Labor. No person under sixteen (16) years of age Sec. 71 Rehabilitation. Contractors and permittees shall technically
shall be employed in any phase of mining operations and no and biologically rehabilitate the excavated mined-out, tailings
person under eighteen (18) years of age shall be employed covered and disturbed areas to the condition of environmental
underground in a mine. safety, as may be provided in the implementing rules and
regulations of this Act. A mine rehabilitation fund shall be created,
Sec. 65 Mine Supervision. All mining and quarrying operations based on the contractor's approved work program, and shall be
that employ more than fifty (50) workers shall have at least one deposited as a trust fund in a government depository bank and
(1) licensed mining engineer with at least five (5) years of used for physical and social rehabilitation of areas and
experience in mining operations, and one (1) registered foreman. communities affected by mining activities and for research on the
social, technical and preventive aspects of rehabilitation. Failure to
Sec. 66 Mine Inspection. The regional director shall have exclusive fulfill the above obligation shall mean immediate suspension or
jurisdiction over the safety inspection of all installations, surface closure of the mining activities of the contractor/permittee
or underground, in mining operations at reasonable hours of the concerned.
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. CHAPTER XII
AUXILIARY MINING RIGHTS
Sec. 67 Power to Issue Orders. The mines regional director shall, in
consultation with the Environmental Management Bureau, Sec. 72 Timber Rights. Any provision of law to the contrary
forthwith or within such time as specified in his order, require the notwithstanding, a contractor may be ranged a right to cut trees
contractor to remedy any practice connected with mining or or timber within his mining area as may be necessary for his
quarrying operations, which is not in accordance with safety and mining operations subject to forestry laws, rules and regulations:
anti-pollution laws and regulations, which is not in accordance Provided, That if the land covered by the mining area is already
with safety and anti-pollution laws and regulations. In case of covered by existing timber concessions, the volume of timber
imminent danger to life or property, the mines regional director needed and the manner of cutting and removal thereof shall be
may summarily suspend the mining or quarrying operations until determined by the mines regional director, upon consultation with
the danger is removed, or appropriate measures are taken by the the contractor, the timber concessionaire/permittee and the
contractor or permittee. Forest Management Bureau of the Department: Provided, further,
That in case of disagreement between the contractor and the
Sec. 68 Report of Accidents. In case of any incident or accident, timber concessionaire, the matter shall be submitted to the
causing or creating the danger of loss of life or serious physical Secretary whose decision shall be final. The contractor shall
injuries, the person in charge of operations shall immediately perform reforestation work within his mining area in accordance
report the same to the regional office where the operations are with forestry laws, rules and regulations.
situated. Failure to report the same without justifiable reason
shall be a cause for the imposition of administrative sanctions Sec. 73 Water Rights. A contractor shall have water rights for
prescribed in the rules and regulations implementing this Act. mining operations upon approval of application with the
appropriate government agency in accordance with existing water
Sec. 69 Environmental Protection. Every contractor shall laws, rules and regulations promulgated thereunder: Provided,
undertake an environmental protection and enhancement That water rights already granted or vested through long use,
program covering the period of the mineral agreement or permit. recognized and acknowledged by local customs, laws, and
Such environmental program shall be incorporated in the work decisions of courts shall not thereby be impaired: Provided
program which the contractor or permittee shall submit as an further, That the Government reserves the right to regulate water
accompanying document to the application for a mineral rights and the reasonable and equitable distribution of water
agreement or permit. The work program shall include not only supply so as to prevent the monopoly of the use thereof.
plans relative to mining operations but also to rehabilitation,
regeneration, revegetation and reforestation of mineralized areas, Sec. 74 Right to Possess Explosives. A contractor/ exploration
slope stabilization of mined-out and tailings covered areas, permittee shall have the right to possess and use explosives within
aquaculture, watershed development and water conservation; his contract/permit area as may be necessary for his mining
and socioeconomic development. operations upon approval of an application with the appropriate
government agency in accordance with existing laws, rules and
Sec. 70 Environmental Impact Assessment (EIA). Except during the regulations promulgated thereunder: Provided, That the
exploration period of a mineral agreement or financial or technical Government reserves the right to regulate and control the
assistance agreement or an exploration permit, an environmental explosive accessories to ensure safe mining operations.
clearance certificate shall be required based on an environmental
impact assessment and procedures under the Philippine Sec. 75 Easement Rights. When mining areas are so situated that
Environmental Impact Assessment System including Sections 26 for purposes of more convenient mining operations it is necessary
and 27 of the Local Government Code of 1991 which require to build, construct or install on the mining areas or lands owned,
national government agencies to maintain ecological balance, and occupied or leased by other persons, such infrastructure as roads,
prior consultation with the local government units, railroads, mills, waste dump sites, tailings ponds, warehouses,
nongovernmental and people's organizations and other concerned staging or storage areas and port facilities, tramways, runways,
sectors of the community: Provided, That a completed ecological airports, electric transmission, telephone or telegraph lines, dams
profile of the proposed mining area shall also constitute part of and their normal flood and catchment areas, sites for water wells,
the environmental impact assessment. People's organizations and ditches, canals, new river beds, pipelines, flumes, cuts, shafts,
non-governmental organizations shall be allowed and encourage tunnels, or mills, the contractor, upon payment of just
to participate in ensuring that contractors/permittees shall compensation, shall be entitled to enter and occupy said mining
observe all the requirements of environmental protection. areas or lands.
(b) To administer oaths, summon the parties to a controversy,
Sec. 76 Entry into Private Lands and Concession Areas. Subject to issue subpoenas requiring the attendance and testimony of
prior notification, holders of mining rights shall not be prevented witnesses or the production of such books, paper, contracts,
from entry into private lands and concession areas by surface records, statement of accounts, agreements, and other
owners, occupants, or concessionaires when conducting mining documents as may be material to a just determination of the
operations therein: Provided, That any damage done to the matter under investigation, and to testify in any investigation or
property of the surface owner, occupant, or concessionaire as a hearing conducted in pursuance of this Act;
consequence of such operations shall be properly compensated as
may be provided for in the implementing rules and regulations: (c) To conduct hearings on all matters within its jurisdiction,
Provided, further, That to guarantee such compensation, the proceed to hear and determine the disputes in the absence of any
person authorized to conduct mining operation shall, prior party thereto who has been summoned or served with notice to
thereto, post a bond with the regional director based on the type appear, conduct its proceedings or any part thereof in public or in
of properties, the prevailing prices in and around the area where private, adjourn its hearings at any time and place, refer technical
the mining operations are to be conducted, with surety or sureties matters or accounts to an expert and to accept his report as
satisfactory to the regional director. evidence after hearing of the parties upon due notice, direct
parties to be joined in or excluded from the proceedings, correct,
CHAPTER XIII amend, or waive any error, defect or irregularity, whether in
SETTLEMENT OF CONFLICTS substance or in form, give all such directions at it may deem
necessary or expedient in the determination of the dispute before
Sec. 77 Panel of Arbitrators. There shall be a panel of arbitraters in it and dismiss the mining dispute as part thereof, where it is trivial
the regional office of the Department composed of three (3) or where further proceedings by the Board are not necessary or
members, two (2) of whom must be members of the Philippine desirable;
Bar in good standing and one licensed mining engineer or a
professional in a related field, and duly designated by the (1) to hold any person in contempt, directly or indirectly, and
Secretary as recommended by the Mines and Geosciences Bureau impose appropriate penalties therefor; and
Director. Those designated as members of the panel shall serve as
such in addition to their work in the Department without receiving (2) To enjoin any or all acts involving or arising from any case
any additional compensation. As much as practicable, said pending before it which, if not restrained forthwith, may cause
members shall come from the different bureaus of the grave or irreparable damage to any of the parties to the case or
Department in the region. The presiding officer shall be on a seriously affect social and economic stability.
yearly basis. The members of the panel shall perform their duties
and obligations in hearing and deciding cases until their In any proceeding before the Board, the rules of evidence
designation is withdrawn or revoked by the Secretary. Within prevailing in courts of law or equity shall not be controlling and it
thirty (30) working days, after the submission of the case by the is the spirit and intention of this Act that shall govern. The Board
parties for decision, the panel shall have exclusive and original shall use every and all reasonable means to ascertain the facts in
jurisdiction to hear and decide on the following: each case speedily and objectively and without regard to
technicalities of law or procedure, all in the interest of due
(a) Disputes involving rights to mining areas; process. In any proceeding before the Board, the parties may be
represented by legal counsel. the findings of fact of the Board
(b) Disputes involving mineral agreements or permits; shall be conclusive and binding on the parties and its decision or
order shall be final and executory.
(c) Disputes involving surface owners, occupants and
claimholders/concessionaires; and A petition for review by certiorari and question of law may be filed
by the aggrieved party with the Supreme Court within thirty (30)
(d) Disputes pending before the Bureau and the Department at days from receipt of the order or decision of the Board.
the date of the effectivity of this Act.
CHAPTER XIV
Sec. 78 Appellate Jurisdiction. The decision or order of the panel GOVERNMENT SHARE
of arbitrators may be appealed by the party not satisfied thereto
to the mines Adjudication Board within fifteen (15) days from Sec. 80 Government Share in Mineral Production Sharing
receipt thereof which must decide the case within thirty (30) days Agreement. The total government share in a mineral production
from submission thereof for decision. sharing agreement shall be the excise tax on mineral products as
provided in Republic Act No. 7729, amending Section 151(a) of the
Sec. 79 Mines Adjudication Board. The Mines Adjudication Board National Internal Revenue Code, as amended.
shall be composed of three (3) members. The Secretary shall be
the chairman with the Director of the Mines and Geosciences Sec. 81 Government Share in Other Mineral Agreements. The
Bureau and the Undersecretary for Operations of the Department share of the Government in co-production and joint-venture
as member thereof. The Board shall have the following powers agreements shall be negotiated by the Government and the
and functions: contractor taking into consideration the: (a) capital investment of
the project, (b) risks involved, (c) contribution of the project to the
(a) To promulgate rules and regulations governing the hearing and economy, and (d) other factors that will provide for a fair and
disposition of cases before it, as well as those pertaining to its equitable sharing between the Government and the contractor.
internal functions, and such rules and regulations as may be The Government shall also be entitled to compensations for its
necessary to carry out its functions; other contributions which shall be agreed upon by the parties,
and shall consist, among other things, the contractor's income tax,
excise tax, special allowance, withholding tax due from the
contractor's foreign stockholders arising from dividend or interest Sec. 86 Occupation Fees. There shall be collected from any holder
payments to the said foreign stockholders, in case of a foreign of a mineral agreement, financial or technical assistance
national, and all such other taxes, duties and fees as provided for agreement or exploration permit on public or private lands, an
under existing laws. annual occupation fee in accordance with the following schedule;
The Government share in financial or technical assistance (a) For exploration permit - Five pesos (P5.00) per hectare or
agreement shall consist of, among other things, the contractor's fraction thereof per annum;
corporate income tax, excise tax, special allowance, withholding
tax due from the contractor's foreign stockholders arising from (b) For mineral agreements and financial or technical assistance
dividend or interest payments to the said foreign stockholder in agreements - Fifty pesos (P50.00) per hectare or fraction thereof
case of a foreign national and all such other taxes, duties and fees per annum; and
as provided for under existing laws.
(c) For mineral reservation - One hundred pesos (P100.00) per
The collection of government share in financial or technical hectare or fraction thereof per annum.
assistance agreement shall commence after the financial or
technical assistance agreement contractor has fully recovered its The Secretary is authorized to increase the occupation fees
pre-operating expenses, exploration, and development provided herein when the public interest so requires, upon
expenditures, inclusive. recommendation of the Bureau Director.
Sec. 82 Allocation of Government Share. The Government share as Sec. 87 Manner of payment of Fees. The fees shall be paid on the
referred to in the preceding sections shall be shared and allocated date the mining agreement is registered with the appropriate
in accordance with Sections 290 and 292 of Republic Act No. 7160 office and on the same date every year thereafter. It shall be paid
otherwise known as the Local Government Code of 1991. In case to the treasurer of the municipality or city where the onshore
the development and utilization of mineral resources is mining areas are located, or to the Director in case of offshore
undertaken by a government-owned or controlled corporation, mining areas. For this purpose, the appropriate officer shall
the sharing and allocation shall be in accordance with Sections submit to the treasurer of the municipality or city where the
291 and 292 of the said Code. onshore mining area is located, a complete list of all onshore
mining rights registered with his office, indicating therein the
CHAPTER XV names of the holders, area in hectares, location, and date
TAXES AND FEES registered. If the fee is not paid on the date specified, it shall be
increased by twenty-five per centum (25%).
Sec. 83 Income Taxes. After the lapse of the income tax holiday as
provided for in the Omnibus Investments Code, the contractor Sec. 88 Allocation of Occupation Fees. Thirty per centum (30%) of
shall be liable to pay income tax as provided in the National all occupational fees collected from holders of mining rights in
Internal Revenue Code, as amended. onshore mining areas shall accrue to the province and seventy per
centum (70%) to the municipality in which the onshore mining
Sec. 84 Excise Tax on Mineral Products. The contractor shall be areas are located. In a chartered city, the full amount shall accrue
liable to pay the excise tax on mineral products as provided for to the city concerned.
under Section 151 of the National Internal Revenue Code:
Provided, however, That with respect to a mineral production Sec. 89 Filing Fees and Other Charges. The Secretary is authorized
sharing agreement, the excise tax on mineral products shall be the to charge reasonable filing fees and other charges as he may
government share under said agreement. prescribe in accordance with the implementing rules and
regulations.
Sec. 85 Mine Wastes and Tailings Fees. A semi-annual fee to be
known as mine wastes and tailings fee is hereby imposed on all CHAPTER XVI
operating mining companies in accordance with the implementing INCENTIVES
rules and regulations. The mine wastes and tailings fee shall
accrue to a reserve fund to be used exclusively for payment for Sec. 90 Incentives. The contractors in mineral agreements, and
damages to: financial or technical assistance agreements shall be entitled to
the applicable fiscal and non-fiscal incentives as provided for
(a) Lives and personal safety; under Executive Order No. 226, otherwise known as the Omnibus
(b) Lands, agricultural crops and forest products, marine life and Investments Code of 1987: Provided, That holders of exploration
aquatic resources, cultural resources; and permits may register with the Board of Investments and be
(c) Infrastructure and the revegetation and rehabilitation of silted entitled to the fiscal incentives granted under the said Code for
farm lands and other areas devoted to agriculture and fishing the duration of the permits or extensions thereof: Provided,
caused by mining pollution. further, That mining activities shall always be included in the
investment priorities plan.
This is in addition to the suspension or closure of the activities of
the contractor at any time and the penal sanctions imposed upon Sec. 91 Incentives for Pollution Control Devices. Pollution control
the same. devices acquired, constructed or installed by contractors shall not
be considered as improvements on the land or building where
The Secretary is authorized to increase mine wastes and tailings they are placed, and shall not be subject to real property and
fees, when public interest so requires, upon the recommendation other taxes or assessments: Provided, however, That payment of
of the Director. mine wastes and tailings fees is not exempted.
Sec. 92 Income Tax-Carry Forward of Losses. A net operating loss (d) Freedom from expropriation. The right to be free from
without the benefit of incentives incurred in any of the first ten expropriation by the government of the property represented by
(10) years of operations may be carried over as a deduction from investments or loans, or of the property of the enterprise except
taxable income for the next five (5) years immediately following for public use or in the interest of national welfare or defense and
the year of such loss. The entire amount of the loss shall be upon payment of just compensation. In such cases, foreign
carried over to the first of the five (5) taxable years following the investors or enterprises shall have the right to remit sums received
loss, and any portion of such loss which exceeds the taxable as compensation for the expropriated property in the currency in
income of such first year shall be deducted in like manner from which the investment was originally made and at the exchange
the taxable income of the next remaining four (4) years. rate prevailing at the time of remittance.
Sec. 93 Income Tax-Accelerated Depreciation. Fixed assets may be (e) Requisition of investment. The right to be free from requisition
depreciated as follows: of the property represented by the investment or of the property
of the enterprises except in case of war or national emergency
(a) To the extent of not more than twice as fast as the normal rate and only for the duration thereof. Just compensation shall be
of depreciation or depreciated at normal rate of depreciation if determined and paid either at the time or immediately after
the expected life is ten (10) years or less; or cessation of the state of war or national emergency. Payments
received as compensation for the requisitioned property may be
(b) Depreciated over any number of years between five (5) years remitted in the currency in which the investments were originally
and the expected life if the latter is more than ten (10) years, and made and at the exchange rate prevailing at the time of
the depreciation thereon allowed as deduction from taxable remittance.
income: Provided, That the contractor notifies the Bureau of
Internal Revenue at the beginning of the depreciation period (f) Confidentiality. Any confidential information supplied by the
which depreciation rate allowed by this section will be used. contractor pursuant to this Act and its implementing rules and
regulations shall be treated as such by the department and the
In computing for taxable income, unless otherwise provided in this Government, and during the term of the project to which it
Act, the contractor may, at his option, deduct exploration and relates.
development expenditures accumulated at cost as of the date of
the prospecting or exploration and development expenditures CHAPTER XVII
paid or incurred during the taxable year: Provided, That the total GROUND FOR CANCELLATION, REVOCATION, AND TERMINATION
amount deductible for exploration and development expenditures
shall not exceed twenty-five per centum (25%) of the net income Sec. 95 Late or Non-filing of Requirements. Failure of the
from mining operations. The actual exploration and development permittee or contractor to comply with any of the requirements
expenditures minus the twenty-five per centum (25%) net income provided in this Act or in its implementing rules and regulations,
from mining shall be carried forward to the succeeding years until without a valid reason, shall be sufficient ground from the
fully deducted. suspension of any permit or agreement provided under this Act.
Net income from mining operation is defined as gross income Sec. 96 Violation of the Terms and Conditions of Permits or
from operations less allowable deductions which are necessary or Agreements. Violations of the terms and conditions of the permits
related to mining operations. Allowable deductions shall include or agreements shall be a sufficient ground for cancellation of the
mining, milling and marketing expenses, depreciation or same.
properties directly used in the mining operations. This paragraph
shall not apply to expenditures for the acquisition or improvement Sec. 97 Non-payment of taxes and Fees. Failure to pay the taxes
of property of a character which is subject to the allowances for and fees due the Government for two (2) consecutive years shall
depreciation. cause the cancellation of the exploration permit, mineral
agreement, financial or technical assistance agreement and other
Sec. 94 Investment Guarantees. The contractor shall be entitled to agreements and the re-opening of the area subject thereof to new
the basic rights and guarantees provided in applicants.
the Constitution and such other rights recognized by the
government as enumerated hereunder. Sec. 98 Suspension or Cancellation of Tax Incentives and Credits.
Failure to abide by the terms and conditions of tax incentives and
(a) Repatriation of investments. The right to repatriate the entire credits shall cause the suspension or cancellation of said
proceeds of the liquidation of the foreign investment in the incentives and credits.
currency in which the investment was originally made and at the
exchange rate prevailing at the time of repatriation. Sec. 99 Falsehood or Omission of Facts in the Statement. All
statements made in the exploration permit, mining agreement
(b) Remittance of earnings. The right to remit earnings from the and financial or technical assistance shall be considered as
investment in the currency in which the foreign investment was conditions and essential parts thereof and any falsehood in said
originally made at the exchange rate prevailing at the time of statements or omission of facts therein which may alter, change or
remittance. affect substantially the facts set forth in said statements may
cause the revocation and termination of the exploration permit,
(c) Foreign loans and contracts. The right to remit at the exchange mining agreement and financial or technical assistance
rate prevailing at the time of remittance such sums as may be agreement.
necessary to meet the payments of interest and principal on
foreign loans and foreign obligations arising from financial or CHAPTER XVIII
technical assistance contracts. ORGANIZATIONAL AND INSTITUTIONAL ARRANGEMENT
Sec. 100 From Staff Bureau to Line Bureau. The Mines and (P5,000.00) or imprisonment not exceeding one (1) year, or both,
Geosciences Bureau is hereby transformed into a line bureau at the discretion of the court.
consistent with Section 9 of this Act: Provided, That under the
Mines and Geosciences Bureau shall be the necessary mines Sec. 108 Violation of the Terms and Conditions of the
regional, district and other pertinent offices - the number and Environmental Compliance Certificate. Any person who willfully
specific functions of which shall be provided in the implementing violates or grossly neglects to abide by the terms and conditions
rules and regulations of this Act. of the environmental compliance certificate issued to said person
and which causes environmental damage through pollution shall
CHAPTER XIX suffer the penalty of imprisonment of six (6) months to six (6)
PENAL PROVISIONS years or a fine of Fifty thousand pesos (P50,000.00) to Two
Hundered Thousand Pesos (P200,000.00), or both at the
Sec. 101 False Statements. Any person who knowingly presents discretion of the court.
any false application, declaration, or evidence to the Government
or publishes or causes to be published any prospectus or other Sec. 109 Illegal Obstruction to Government Officials. Any person
information containing any false statement relating to mines, who illegally prevents or obstructs the Secretary, the Director or
mining operations or mineral agreements, financial or technical any of their representatives in the performance of their duties
assistance agreements and permits shall, upon conviction, be under the provisions of this Act and of the regulations
penalized by a fine of not exceeding Ten Thousand Pesos promulgated hereunder shall be punished, upon conviction, by
(P10,000.00). the appropriate court, by a fine not exceeding Five thousand
pesos (P5,000.00) or by imprisonment not exceeding one (1) year,
Sec. 102 Illegal Exploration. Any person undertaking exploration or both, at the discretion of the court.
work without the necessary exploration permit shall, upon
conviction, be penalized by a fine of not exceeding Fifty thousand Sec. 110 Other Violations. Any other violation of this Act and its
pesos (P50,000.00). implementing rules and regulations shall constitute an offense
punishable with a fine not exceeding five thousand pesos
Sec. 103 Theft of Minerals. Any person extracting minerals and (P5,000.00).
disposing the same without a mining agreement, lease, permit,
license, or steals minerals or ores or the products thereof from Sec. 111 Fines. The Secretary is authorized to charge fines for late
mines or mills or processing plants shall, upon conviction, be or nonsubmission of reports in accordance with the implementing
imprisoned from six (6) months to six (6) years or pay a fine from rules and regulations of this Act
Ten thousand pesos (P10,000.00) to Twenty thousand pesos
(P20,000.00), or both, at the discretion of the appropriate court.
In addition, he shall be liable to pay damages and compensation REPUBLIC ACT NO. 7076: People's Small-scale Mining Act
for the minerals removed, extracted, and disposed of. In the case
of associations, partnerships, or corporations, the president and Sec. 2. Declaration of Policy. It is hereby declared of the State
each of the directors thereof shall be responsible for the acts to promote, develop, protect and rationalize viable small-scale
committed by such association, corporation, or partnership. mining activities in order to generate more employment
opportunities and provide an equitable sharing of the nation's
Sec. 104 Destruction of Mining Structures. Any person who wealth and natural resources, giving due regard to existing rights
willfully destroys or damages structures in or on the mining area as herein provided.
or on the mill sites shall, upon conviction, be imprisoned for a
period not to exceed five (5) years and shall, in addition, pay
Sec. 3. Definitions. For purposes of this Act, the following
compensation for the damages which may have been caused
terms shall be defined as follows:
thereby.
Sec. 105 Mines Arson. Any person who willfully sets fire to any (a) "Mineralized areas" refer to areas with naturally occurring
mineral stockpile, mine or workings, fittings or a mine, shall be mineral deposits of gold, silver, chromite, kaolin, silica, marble,
guilty of arson and shall be punished, upon conviction, by the gravel, clay and like mineral resources;
appropriate court in accordance with the provisions of the Revised
Penal Code and shall, in addition, pay compensation for the (b) "Small-scale mining" refers to mining activities which rely
damages caused thereby. heavily on manual labor using simple implement and methods and
do not use explosives or heavy mining equipment;
Sec. 106 Willful Damage to a Mine. Any person who willfully
damages a mine, unlawfully causes water to run into a mine, or (c) "Small-scale miners" refer to Filipino citizens who, individually
obstructs any shaft or passage to a mine, or renders useless, or in the company of other Filipino citizens, voluntarily form a
damages or destroys any machine, appliance, apparatus; rope, cooperative duly licensed by the Department of Environment and
chain, tackle, or any other things used in a mine, shall be Natural Resources to engage, under the terms and conditions of a
punished, upon conviction, by the appropriate court, by contract, in the extraction or removal of minerals or ore-bearing
imprisonment not exceeding a period of five (5) years and shall, in materials from the ground;
addition, pay compensation for the damages caused thereby.
Sec. 107 Illegal Obstruction to Permittees or Contractors. Any (d) "Small-scale mining contract" refers to co-production, joint
person who, without justifiable cause, prevents or obstructs the venture or mineral production sharing agreement between the
holder of any permit, agreement or lease from undertaking his State and a small-scale mining contractor for the small-scale
mining operations shall be punished, upon conviction by the utilization of a plot of mineral land;
appropriate court, by a fine not exceeding Five thousand pesos
(e) "Small-scale mining contractor" refers to an individual or a (d) The extension of technical and financial assistance, and other
cooperative of small-scale miners, registered with the Securities social services;
and Exchange Commission or other appropriate government
agency, which has entered into an agreement with the State for
(e) The extension of assistance in processing and marketing;
the small-scale utilization of a plot of mineral land within a
people's small-scale mining area;
(f) The generation of ancillary livelihood activities;
(f) "Active mining area" refers to areas under actual exploration,
development, exploitation or commercial production as (g) The regulation of the small-scale mining industry with the view
determined by the Secretary after the necessary field investigation to encourage growth and productivity; and
or verification including contiguous and geologically related areas
belonging to the same claimowner and/or under contract with an (h) The efficient collection of government revenue.
operator, but in no case to exceed the maximum area allowed by
law;
Sec. 5. Declaration of People's Small-scale Mining Areas. The
Board is hereby authorized to declare and set aside people's
(g) "Existing mining right" refers to perfected and subsisting claim, small-scale mining areas in sites onshore suitable for small-scale
lease, license or permit covering a mineralized area prior to its mining, subject to review by the Secretary, immediately giving
declaration as a people's small-scale mining area; priority to areas already occupied and actively mined by small-
scale miners before August 1, 1987: Provided, That such areas are
(h) "Claimowner" refers to a holder of an existing mining right; not considered as active mining areas: Provided, further, That the
minerals found therein are technically and commercially suitable
for small-scale mining activities: Provided, finally, That the areas
(i) "Processor" refers to a person issued a license to engage in the
are not covered by existing forest rights or reservations and have
treatment of minerals or ore-bearing materials such as by gravity
not been declared as tourist or marine reserved, parks and wildlife
concentration, leaching benefication, cyanidation, cutting, sizing,
reservations, unless their status as such is withdrawn by
polishing and other similar activities;
competent authority.
(j) "License" refers to the privilege granted to a person to Sec. 6. Future People's Small-scale Mining Areas. The following
legitimately pursue his occupation as a small-scale miner or lands, when suitable for small-scale mining, may be declared by
processor under this Act; the Board as people's small scale mining areas:
(a) Public lands not subject to any existing right; vi
(k) "Mining plan" refers to a two-year program of activities and
methodologies employed in the extraction and production of (b) Public lands covered by existing mining rights which are not
minerals or ore-bearing materials, including the financial plan and active mining areas; and
other resources in support thereof;
(c) Private lands, subject to certain rights and conditions, except
(l) "Director" refers to the regional executive director of the those with substantial improvements or in bona fide and regular
Department of Environment and Natural Resources; and 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
(m) "Secretary" refers to the Secretary of the Department of
or a separate parcel of land with an area of ten thousand square
Environment and Natural Resources.
meters (10,000 sq. m.) or less.
Applications for a contract shall be subject to a reasonable fee to (e) Comply with pertinent rules and regulations on environmental
be paid to the Department of Environment and Natural Resources protection and conservation, particularly those on tree-cutting
regional office having jurisdiction over the area. mineral-processing and pollution control;
Sec. 10. Extent of Contract Area. The Board shall determine the (f) File under oath at the end of each month a detailed production
reasonable size and shape of the contract area following the and financial report to the Board; and
meridional block system established under Presidential Decree
No. 463, as amended, otherwise known as the Mineral Resources
(g) Assume responsibility for the safety of persons working in the
Development Decree of 1974, but in no case shall the area exceed
mines.
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: Sec. 14. Rights of Claimowners. In case a site declared and set
aside as a people's-scale mining area is covered by an existing
mining right, the claimowner and the small-scale miners therein
(a) Size of membership and capitalization of the cooperative;
are encouraged to enter into a voluntary and acceptable
(b) Size of mineralized area;
contractual agreement with respect to the small-scale utilization
of the mineral values from the area under claim. In case of
(c) Quantity of mineral deposits; disagreement, the claimowner shall be entitled to the following
rights and privileges:
(a) Exemption from the performance of annual work obligations
(d) Safety of miners;
and payment of occupation fees, rental, and real property taxes;
(e) Environmental impact and other considerations; and (b) Subject to the approval of the Board, free access to the
contract area to conduct metallurgical tests, explorations and
(f) Other related circumstances. other activities, provided such activities do not unduly interfere
with the operations of the small-scale miners; and
(a) Undertake mining activities only in accordance with a mining Sec. 16. Ownership of Mill Tailings. The small-scale mining
plan duly approved by the Board; contractor shall be the owner of all mill tailings produced from the
(b) Abide by the Mines and Geosciences Bureau and the small- contract area. He may sell the tailings or have them processed in
scale Mining Safety Rules and Regulations; any custom mill in the area: Provided, That, if the small-scale
mining contractor decide to sell its mill tailings, the claimowner
shall have a preemptive right to purchase said mill tailings at the
(c) Comply with his obligations to the holder of an existing mining prevailing market price.
right;
Sec. 17. Sale of Gold. All gold produced by small-scale miners the fine imposed shall render the small-scale mining contractor
in any mineral area shall be sold to the Central Bank, or its duly ineligible for other small-scale mining contracts.
authorized representatives, which shall buy it at prices
competitive with those prevailing in the world market regardless
Sec. 22. Reversion of People's Small-scale Mining Areas. The
of volume or weight.
Secretary, upon recommendation of the director, shall withdraw
the status of the people's small-scale mining area when it can no
The Central Bank shall establish as many buying stations in gold- longer feasibly operated on a small-scale mining basis or when the
rush areas to fully service the requirements of the small-scale safety, health and environmental conditions warrant that the
minerals thereat. same shall revert to the State for proper disposition.
Sec. 18. Custom Mills. The establishment and operation of safe Sec. 23. Actual Occupation by Small-scale Miners. Small-scale
and efficient customs mills to process minerals or ore-bearing miners who have been in actual operation of mineral lands on or
materials shall be limited to mineral processing zones duly before August 1, 1987 as determined by the Board shall not be
designated by the local government unit concerned upon dispossessed, ejected or removed from said areas: Provided, That
recommendation of the Board. they comply with the provisions of this Act.
In mining areas where the private sector is unable to establish Sec. 24. Provincial/City Mining Regulatory Board. There is
custom mills, the Government shall construct such custom mills hereby created under the direct supervision and control of the
upon the recommendation of the Board based on the viability of Secretary a provincial/city mining regulatory board, herein called
the project. the Board, which shall be the implementing agency of the
Department, and shall exercise the following powers and
functions, subject to review by the Secretary:
The Board shall issue licenses for the operation of custom mills
and other processing plants subject to pollution control and safety
standards. (a) Declare and segregate existing gold-rush areas for small-scale
mining;
The Department shall establish assay laboratories to cross-check
(b) Reserve future gold and other mining areas for small-scale
the integrity of custom mills and to render metallurgical and
mining;
laboratory services to mines.
La Bugal Blaan Tribal Association Inc., et al. V. Victor O. Ramos, Article XII Section 2 of the 1987 Constitution retained the Regalian
Secretary Department of Environment and Natural Resources; doctrine which states that All lands of the public domain, waters,
Horacio Ramos, Director, Mines and Geosciences Bureau (MGB- minerals, coal, petroleum, and other minerals, coal, petroleum,
DENR); and other mineral oils, all forces of potential energy, fisheries,
forests or timber, wildlife, flora and fauna, and other natural
The constitutional provision allowing the President to enter into resources are owned by the State. The same section also states
FTAAs is an exception to the rule that participation in the nations that, exploration and development and utilization of natural
natural resources is reserved exclusively to Filipinos. Provision resources shall be under the full control and supervision of the
must be construed strictly against their enjoyment by non- State.
Filipinos.
Conspicuously absent in Section 2 is the provision in the 1935 and
RA 7942 (The Philippine Mining Act) took effect on April 9, 1995. 1973 Constitutions authorizing the State to grant licenses,
Before the effectivity of RA 7942, or on March 30, 1995, the concessions, or leases for the exploration, exploitation,
President signed a Financial and Technical Assistance Agreement development or utilization of natural resources. Y such omission,
(FTAA) with WMCP, a corporation organized under Philippine laws, the utilization of inalienable lands of public domain through
covering close to 100, 000 hectares of land in South Cotabato, license, concession or lease is no longer allowed under the 1987
Sultan Kudarat, Davao del Sur and North Cotabato. On August 15, Constitution.
1995, the Environment Secretary Victor Ramos issued DENR
Administrative Order 95-23, which was later repealed by DENR Under the concession system, the concessionaire makes a direct
Administrative Order 96-40, adopted on December 20, 1996. equity investment for the purpose of exploiting a particular
natural resource within a given area. The concession amounts to
Petitioners prayed that RA 7942, its implementing rules, and the complete control by the concessionaire over the countrys natural
FTAA between the government and WMCP be declared resource, for it is given exclusive and plenary rights to exploit a
unconstitutional on ground that they allow fully foreign owned particular resource at the point of extraction.
corporations like WMCP to exploit, explore and develop Philippine
mineral resources in contravention of Article XII Section 2 The 1987 Constitution, moreover, has deleted the phrase
paragraphs 2 and 4 of the Charter. management or other forms of assistance in the 1973 Charter.
The present Constitution now allows only technical and financial
In January 2001, MMC a publicly listed Australian mining and assistance. The management or operation of mining activities by
exploration company sold its whole stake in WMCP to Sagittarius foreign contractors, the primary feature of service contracts was
Mines, 60% of which is owned by Filipinos while 40% of which is precisely the evil the drafters of the 1987 Constitution sought to
owned by Indophil Resources, an Australian company. DENR avoid.
approved the transfer and registration of the FTAA in Sagittarius
name but Lepanto Consolidated assailed the same. The latter case The constitutional provision allowing the President to enter into
is still pending before the Court of Appeals. FTAAs is an exception to the rule that participation in the nations
natural resources is reserved exclusively to Filipinos. Accordingly
EO 279, issued by former President Aquino on July 25, 1987, such provision must be construed strictly against their enjoyment
authorizes the DENR to accept, consider and evaluate proposals by non-Filipinos. Therefore RA 7942 is invalid insofar as said act
from foreign owned corporations or foreign investors for contracts authorizes service contracts. Although the statute employs the
or agreements involving either technical or financial assistance for phrase financial and technical agreements in accordance with
large scale exploration, development and utilization of minerals the 1987 Constitution, its pertinent provisions actually treat these
which upon appropriate recommendation of the (DENR) Secretary, agreements as service contracts that grant beneficial ownership to
the president may execute with foreign proponent. WMCP foreign contractors contrary to the fundamental law.
likewise contended that the annulment of the FTAA would violate
a treaty between the Philippines and Australia which provides for The underlying assumption in the provisions of the law is that the
the protection of Australian investments. foreign contractor manages the mineral resources just like the
foreign contractor in a service contract. By allowing foreign
ISSUES: contractors to manage or operate all the aspects of the mining
operation, RA 7942 has in effect conveyed beneficial ownership groups to eradicate the grinding poverty of our people and answer
over the nations mineral resources to these contractors, leaving their cry for viable employment opportunities in the country. The
the State with nothing but bare title thereto. judiciary is loath to interfere with the due exercise by coequal
branches of government of their official functions. As aptly
The same provisions, whether by design or inadvertence, permit a spelled out seven decades ago by Justice George Malcolm, Just as
circumvention of the constitutionally ordained 60-40% the Supreme Court, as the guardian of constitutional rights,
capitalization requirement for corporations or associations should not sanction usurpations by any other department of
engaged in the exploitation, development and utilization of government, so should it as strictly confine its own sphere of
Philippine natural resources. influence to the powers expressly or by implication conferred on it
by the Organic Act. Let the development of the mining industry
When parts of a statute are so mutually dependent and connected be the responsibility of the political branches of government. And
as conditions, considerations, inducements or compensations for let not the Court interfere inordinately and unnecessarily. The
each other as to warrant a belief that the legislature intended Constitution of the Philippines is the supreme law of the land. It is
them as a whole, then if some parts are unconstitutional, all the repository of all the aspirations and hopes of all the people.
provisions that are thus dependent, conditional or connected
must fall with them. The Constitution should be read in broad, life-giving strokes. It
should not be used to strangulate economic growth or to serve
Under Article XII Section 2 of the 1987 Charter, foreign owned narrow, parochial interests. Rather, it should be construed to grant
corporations are limited only to merely technical or financial the President and Congress sufficient discretion and reasonable
assistance to the State for large scale exploration, development leeway to enable them to attract foreign investments and
and utilization of minerals, petroleum and other mineral oils. expertise, as well as to secure for our people and our posterity the
blessings of prosperity and peace. The Court fully sympathize with
the plight of La Bugal Blaan and other tribal groups, and
2) The FTAA between WMCP and the Philippine government is commend their efforts to uplift their communities. However, the
likewise unconstitutional since the agreement itself is a Court cannot justify the invalidation of an otherwise constitutional
service contract. statute along with its implementing rules, or the nullification of an
otherwise legal and binding FTAA contract. The Court believes that
Section 1.3 of the FTAA grants WMCP, a fully foreign owned it is not unconstitutional to allow a wide degree of discretion to
corporation, the exclusive right to explore, exploit, utilize and the Chief Executive, given the nature and complexity of such
dispose of all minerals and by-products that may be produced agreements, the humongous amounts of capital and financing
from the contract area. Section 1.2 of the same agreement required for large-scale mining operations, the complicated
provides that WMCP shall provide all financing, technology, technology needed, and the intricacies of international trade,
management, and personnel necessary for the Mining coupled with the States need to maintain flexibility in its dealings,
Operations. in order to preserve and enhance our countrys competitiveness in
world markets. On the basis of this control standard, the Court
These contractual stipulations and related provisions in the FTAA upholds the constitutionality of the Philippine Mining Law, its
taken together, grant WMCP beneficial ownership over natural Implementing Rules and Regulations -- insofar as they relate to
resources that properly belong to the State and are intended for financial and technical agreements -- as well as the subject
the benefit of its citizens. These stipulations are abhorrent to the Financial and Technical Assistance Agreement
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. Separate Opinion of Justice Panganiban
3) The Chief Executive is the official constitutionally mandated The FTAA is now to be implemented by a Filipino corporation,
to enter into agreements with foreign owned corporations. therefore the Court can no longer declare it unconstitutional. The
On the other hand, Congress may review the action of the CA case is a dispute between two Filipino corporations (Sagittarius
President once it is notified of every contract entered into and Lepanto) both claiming the right to purchase the foreign
in accordance with this [constitutional] provision within shares in WMCP. Regardless of which side eventually prevails, the
thirty days from its execution. In contrast to this express FTAA would still be in the hands of a qualified Filipino firm. The
mandate of the President and Congress in the exploration, present Constitution, moreover, does not limit foreign
development and utilization (EDU) of natural resources, participation in the exploration, development and utilization of
Article XII of the Constitution is silent on the role of the minerals, petroleum and mineral oils to financial or technical
judiciary. However, should the President and/or Congress assistance. The drafters choice of words and excerpts from
gravely abuse their discretion in this regard, the courts may deliberations of the Constitutional Commission reveal that the
-- in a proper case -- exercise their residual duty under present Charter did not limit to financial or technical assistance
Article VIII. Clearly then, the judiciary should not inordinately the participation of foreign corporations in the large-scale
interfere in the exercise of this presidential power of control exploration, development, and utilization of minerals, petroleum
over the EDU of our natural resources. and mineral oils.
The drafters use of the phrase agreements xxx involving xxx
technical or financial assistance in Article XII Section 2 of the
Under the doctrine of separation of powers and due respect for
1987 Charter does not absolutely show intent to exclude other
co-equal and coordinate branches of government, the Court must
modes of assistance. Rather the phrase signifies the possibility of
restrain itself from intruding into policy matters and must allow
the inclusion of other activities, provided they bear some
the President and Congress maximum discretion in using the
reasonable relationship to and compatibility with financial or
resources of our country and in securing the assistance of foreign
technical assistance. If the drafters intended to strictly confine
foreign corporations to financial or technical assistance only, they that the BMG Director, under Section 99 of the Consolidated
would have employed restrictive or stringent language. Mines Administrative Order implementing Presidential Decree No.
463, was authorized to issue exploration permits and to renew the
Excerpts from then deliberations of the Constitutional Commission same without limit. The validity of Ex loration Permit No. 133 was
likewise show that its members discussed technical or financial reiterated and all the adverse claims against MPSAA No.128 are
assistance agreements in the same breath as service contracts DISMISSED.
and used the terms interchangeably. The members of the Concom
actually had in mind the Marcos-era service contracts that they Undaunted by the PA ruling, the adverse claimants appealed to
were more familiar with (but which they duly modified and the Mines Adjudication Board. In aDecision, the MAB considered
restricted so as to prevent present abuses), when they were erroneous the dismissal by the PA of the adverse claims filed
crafting and polishing the provisions dealing with financial and/or againstMMC and SEM over a mere technicality of failure to submit
technical assistance agreements. a sketch plan. It argued that the rules of procedure are not meant
to defeat substantial justice as the former are merely secondary in
The Concom discussions in their entirely had to do with service importance to the latter. Dealing with the question on EP 133s
contracts that might be given to foreign-owned corporations as validity, the MAB opined that said issue was not crucial and was
exceptions to the general principle of Filipino control of the irrelevant in adjudicating the appealed case because EP 133 has
economy long expired due to its non-renewal and that the holder of the
same, MMC, was no longer a claimant of the Agusan-Davao-
Surigao Forest Reserve having relinquished its right to SEM. After
APEX MINING CO., INC. vs. SOUTHEAST MINDANAO GOLD it brushed aside the issue of the validity of EP133 for being
MINING CORP irrelevant, the MAB proceeded to treat SEMs MPSA application
over the disputed area asan entirely new and distinct application.
Proclamation No. 369 was issued to establish the Agusan-Davao- It approved the MPSA application, excluding the area
Surigao Forest Reserve.Camilo Banad and his group, who claimed segregated by DAO No. 66, which declared 729 hectares within
to have first discovered traces of gold in Mount Diwata, filed the Diwalwal area as non-forest lands open for small-scale mining.
aDeclaration of Location for six mining claims in the
area. Apex Mining Corporation entered intooperating agreements Dissatisfied, the Villaflor group and Balite appealed the decision to
with Banad and his group.Marcopper Mining Corporation filed this Court. SEM, aggrieved by the exclusion of 729 hectares from
mining claims for areas adjacent to the area covered by the DOL its MPSA application, likewise appealed. Apex filed a Motion for
of Banad and his group. MMC abandoned the claims and instead Leave to Admit Petition for Intervention predicated on its right to
applied for a prospecting permit with theBureau of Forest stake its claim over the Diwalwal gold rush which was granted by
Development. BFD issued a Prospecting Permit to MMC covering the Court. These cases, however, were remanded to the Court of
an area within theforest reserve under Proclamation No. 369. The Appeals for proper disposition pursuant to Rule 43 of the 1997
permit embraced the areas claimed by Apex and the Rules of Civil Procedure. The Court of Appeals consolidated the
other individual mining claimants. MMC filed before the BMG a remanded cases as CA-G.R. SP No. 61215 and No. 61216.The Court
Petition for the Cancellation of the MiningClaims of Apex and of Appeals affirmed in toto the decision of the PA and declared
Small Scale Mining Permits. null and void the MAB decision. Hence, the instant Petitions for
Review on Certiorari under Rule 45 of the Rules of Court
MMC alleged that the areas covered by its EP 133 and the mining filed by Apex, Balite and MAB. During the pendency of these
claims of Apex were within an established and existing forest Petitions, President Gloria Macapagal-Arroyo issued Proclamation
reservation. Apex filed a motion to dismiss MMCs petition No. 297.This proclamation excluded an area of 8,100 hectares
alleging that its mining claims are not within any established or located in Monkayo, Compostela Valley, and proclaimed the same
proclaimed forest reserve, and as such, the acquisition of mining as mineral reservation and as environmentally critical area.
rights thereto must be undertaken via registration of DOL with the Subsequently, DENR Administrative Order No. 2002-18 was issued
BMG and not through the filing of application for permit declaring an emergency situation in the Diwalwal gold rush area
to prospect with the BFD. However, Supreme Court rendered a and ordering the stoppage of all mining operations therein.
Decision against Apex holding that the disputed area is a forest Thereafter, Executive Order No. 217was issued by the President
reserve; hence, the proper procedure in acquiring mining rights creating the National Task Force Diwalwal which is tasked to
therein is by initially applying for a permit to prospect with the address the situation in the Diwalwal Gold Rush Area.
BFD and not through a registration of DOL with the BMG. DENR
issued Department Administrative Order No. 66 declaring areas Issue
covered by the Agusan-Davao-Surigao Forest Reserve as non-
forest lands and open to small-scale mining purposes. Whether the subsequent acts of the executive department such as
the issuance of Proclamation No. 297,and DAO No. 2002-18 can
A portion of thecontested area open to small scale miners, several outweigh Apex and Balites claims over the Diwalwal Gold Rush
mining entities filed applications for Mineral Production Sharing Area.
Agreement. Monkayo Integrated Small Scale Miners Association
(MISSMA) filed an MPSA application which was denied by the Held
BMG on the grounds that the area applied for is within the area
covered by MMC EP 133and that the MISSMA was not qualified to Upon the effectivity of the 1987 Constitution, the State assumed a
apply for an MPSA.MMC assigned EP 133 to Southeast Mindanao more dynamic role in the exploration,development and utilization
Gold Mining Corporation. BMG accepted and registered SEMs of the natural resources of the country. With this policy, the State
MPSA application and the Deed of Assignment over EP 133 may pursuefull control and supervision of the exploration,
executed in its favor by MMC.SEMs application was designated development and utilization of the countrys naturalmineral
MPSA Application No. 128 (MPSAA 128).The PA rendered a resources. The options open to the State are through direct
resolution that EP 133 was valid and subsisting. It also declared undertaking or by entering into co- production, joint venture, or
production-sharing agreements, or by entering into agreement
with foreign-owned corporations for large-scale exploration, In P.D. 1067 (Philippines Water Code), the additional element to
development and utilization. Recognizing the importance of the be established is the dumping of mine tailings into the Makulapnit
countrys natural resources, not only for national economic River and the entire Boac River System without prior permit from
development, but also for its security and national defense, the authorities concerned. The gravamen of the offense here is
Section 5 of Republic Act No. 7942 empowers the President, when the absence of the proper permit to dump said mine tailings. This
the national interest so requires, to establish mineral reservations element is not indispensable in the prosecution for violation of PD
where mining operations shall be undertaken directly by the State 984 (Anti-Pollution Law), [RA] 7942 (Philippine Mining Act) and
or through a contractor Art. 365 of the Revised Penal Code. One can be validly prosecuted
for violating the Water Code even in the absence of actual
pollution, or even if it has complied with the terms of its
Loney vs. People of the Philippines Environmental Compliance Certificate, or further, even if it did
take the necessary precautions to prevent damage to property.
Petitioners are officers of Marcopper Mining Corp., engaged in
mining in the province of Marinduque. Marcopper had been In P.D. 984 (Anti-Pollution Law), the additional fact that must be
storing tailings from its operation in a pit in Mt. Taipan, at the base proved is the existence of actual pollution. The gravamen is the
of which ran a drainage leading to Boac and Makalupnit rivers. pollution itself. In the absence of any pollution, the accused must
Consequently, Marcopper had discharged millions of tons of be exonerated under this law although there was unauthorized
tailings into the rivers. dumping of mine tailings or lack of precaution on its part to
prevent damage to property.
In August 1996, the DOJ charged petitioners with violation of the
In R.A. 7942 (Philippine Mining Act), the additional fact that must
Water Code of the Philippines, the National Pollution Control
be established is the willful violation and gross neglect on the part
Decree, Philippine Mining Act and RPC for Reckless Imprudence
of the accused to abide by the terms and conditions of the
Resulting in Damage to Property. Petitioners moved to quash the
Environmental Compliance Certificate, particularly that the
information on grounds that these were duplicitous as DOJ
Marcopper should ensure the containment of run-off and silt
charged more than one offense for a single act and that the
materials from reaching the Mogpog and Boac Rivers. If there was
Informations contain allegations which constitute legal excuse or
no violation or neglect, and that the accused satisfactorily proved
justification.
[sic] that Marcopper had done everything to ensure containment
of the run-off and silt materials, they will not be liable. It does not
The MTC ruled that as far as the 3 laws are concerned, only the follow, however, that they cannot be prosecuted under the Water
Information for violation of Philippine Mining Act should be Code, Anti-Pollution Law and the Revised Penal Code because
maintained. Thus, the Informations for violation of Anti-Pollution violation of the Environmental Compliance Certificate is not an
Law and the Water Code should be dismissed because the essential element of these laws.
elements constituting the aforesaid violations are absorbed by the
same elements which constitute violation of the Philippine Mining On the other hand, the additional element that must be
Act. The RTC reversed the said decision and ruled that there can established in Art. 365 of the Revised Penal Code is the lack of
be no absorption by one offense of the three other offenses, as necessary or adequate precaution, negligence, recklessness and
the acts penalized by these laws are separate and distinct from imprudence on the part of the accused to prevent damage to
each other. This was affirmed by the CA. property. This element is not required under the previous laws.
Unquestionably, it is different from dumping of mine tailings
Petitioners contend that they should be charged with only one without permit, or causing pollution to the Boac river system,
offense Reckless Imprudence Resulting in Damage to Property much more from violation or neglect to abide by the terms of the
because all the charges filed against them are based on a single Environmental Compliance Certificate. Moreover, the offenses
act or incident of polluting the Boac and Makalupnit rivers thru punished by special law are mal[a] prohibita in contrast with those
dumping of mine tailings" and that the charge for violation of punished by the Revised Penal Code which are mala in se.29
Article 365 of the RPC "absorbs" the other charges since the Consequently, the filing of the multiple charges against
element of "lack of necessary or adequate protection, negligence, petitioners, although based on the same incident, is consistent
recklessness and imprudence" is common among them. with settled doctrine.
WHEREAS, to achieve the above purpose, it is necessary to (g) Forest reservations refer to forest lands which have been
reassess the multiple uses of forest lands and resources before reserved by the President of the Philippines for any specific
allowing any utilization thereof to optimize the benefits that can purpose or purposes.
be derived therefrom;
(h) National park refers to a forest land reservation essentially of
WHEREAS, it is also imperative to place emphasis not only on the primitive or wilderness character which has been withdrawn from
utilization thereof but more so on the protection, rehabilitation settlement or occupancy and set aside as such exclusively to
and development of forest lands, in order to ensure the continuity preserve the scenery, the natural and historic objects and the wild
of their productive condition; animals or plants therein, and to provide enjoyment of these
features in such a manner as will leave them unimpaired for
future generations.
WHEREAS, the present laws and regulations governing forest lands
are not responsive enough to support re-oriented government
programs, projects and efforts on the proper classification and (i) Game refuge or bird sanctuary refers to a forest land
delimitation of the lands of the public domain, and the designated for the protection of game animals, birds and fish and
management, utilization, protection, rehabilitation, and closed to hunting and fishing in order that the excess population
development of forest lands; may flow and restock surrounding areas.
Section 2. Policies. The State hereby adopts the following policies: (j) Marine parks refers to any off-shore area inhabited by rare and
unique species of marine flora and fauna.
(a) The multiple uses of forest lands shall be oriented to the
development and progress requirements of the country, the (k) Seashore park refers to any public shore area delimited for
advancement of science and technology, and the public welfare; outdoor recreation, sports fishing, water skiing and related
healthful activities.
(b) Land classification and survey shall be systematized and
hastened; (l) Watershed reservation is a forest land reservation established
to protect or improve the conditions of the water yield thereof or
reduce sedimentation.
(c) The establishment of wood-processing plants shall be
encouraged and rationalized; and
(m) Watershed is a land area drained by a stream or fixed body of
water and its tributaries having a common outlet for surface run-
(d) The protection, development and rehabilitation of forest lands
off.
shall be emphasized so as to ensure their continuity in productive
condition.
(n) Critical watershed is a drainage area of a river system
supporting existing and proposed hydro-electric power and
Section 3. Definitions.
irrigation works needing immediate rehabilitation as it is being
subjected to a fast denudation causing accelerated erosion and
(a) Public forest is the mass of lands of the public domain which destructive floods. It is closed from logging until it is fully
has not been the subject of the present system of classification for rehabilitated.
the determination of which lands are needed for forest purposes
and which are not.
(o) Mangrove is a term applied to the type of forest occurring on
tidal flat along the sea coast, extending along streams where the
(b) Permanent forest or forest reserves refer to those lands of the water is brackish.
public domain which have been the subject of the present system
of classification and determined to be needed for forest purposes.
(p) Kaingin is a portion of the forest land, whether occupied or
not, which is subjected to shifting and/or permanent slash-and-
(c) Alienable and disposable lands refer to those lands of the burn cultivation having little or no provision to prevent soil
public domain which have been the subject of the present system erosion.
of classification and declared as not needed for forest purposes.
(q) Forest product means timber, pulpwood, firewood, bark, tree
(d) Forest lands include the public forest, the permanent forest or top, resin, gum, wood, oil, honey, beeswax, nipa, rattan, or other
forest reserves, and forest reservations. forest growth such as grass, shrub, and flowering plant, the
associated water, fish, game, scenic, historical, recreational and
(e) Grazing land refers to that portion of the public domain which geologic resources in forest lands.
has been set aside, in view of the suitability of its topography and
vegetation, for the raising of livestock. (r) Dipterocarp forest is a forest dominated by trees of the
dipterocarp species, such as red lauan, tengile, tiaong, white
lauan, almon, bagtikan and mayapis of the Philippine mahogany obligation to develop, protect and rehabilitate the same in
group, apitong and the yakals. accordance with the terms and conditions set forth in said
agreement.
(s) Pine forest is a forest composed of the Benguet Pine in the
Mountain Provinces or the Mindoro pine in Mindoro and (ee) Permit is a short-term privilege or authority granted by the
Zambales provinces. State to a person to utilize any limited forest resources or
undertake a limited activity with any forest land without any right
of occupation and possession therein.
(t) Industrial tree plantation is any tract of forest land purposely
and extensively planted to timber crops primarily to supply the
raw material requirements of existing or proposed processing (ff) Annual allowable cut is the volume of materials, whether of
plants and related industries. wood or other forest products, that is authorized to be cut
regularly from the forest.
(u) Tree farm refers to any tract of forest land purposely and
extensively planted to trees of economic value for their fruits, (gg) Cutting cycle is the number of years between major harvests
flowers, leaves, barks, or extractives, but not for the wood thereof. in the same working unit and/or region, within a rotation.
(v) Multiple-use is the harmonized utilization of the numerous (hh) Ecosystem means the ecological community considered
beneficial uses of the land, soil, water, wildlife, recreation value, together with non-living factors and its environment as a unit.
grass and timber of forest lands.
(ii) Silviculture is the establishment, development reproduction
(w) Selective logging means the systematic removal of the mature, and care of forest trees.
over-mature and defective trees in such manner as to leave
adequate number and volume of healthy residual trees of the
(jj) Rationalization is the organization of a business or industry
desired species necessary to assure a future crop of timber, and
using scientific business management principles and simplified
forest cover for the protection and conservation of soil and water.
procedures to obtain greater efficiency of operation.
(x) Seed tree system is partial clearcutting with seed trees left to
(kk) Forest officer means any official or employee of the Bureau
regenerate the area.
who, by the nature of his appointment or the function of the
position to which he is appointed, is delegated by law or by
(y) Healthy residual is a sound or slightly injured tree of the competent authority to execute, implement or enforce the
commercial species left after logging. provisions of this Code, other related laws, as well as their
implementing regulations.
(z) Sustained-yield management implies continuous or periodic
production of forest products in a working unit with the aid of (ll) Primitive tribe is a group of endemic tribe living primitively as a
achieving at the earliest practicable time an approximate balance distinct portion of a people from a common ancestor.
between growth and harvest or use. This is generally applied to
the commercial timber resources and is also applicable to the
(mm) Private right means or refers to titled rights of ownership
water, grass, wildlife, and other renewable resources of the forest.
under existing laws, and in the case of primitive tribes, to rights of
possession existing at the time a license is granted under this
(aa) Processing plant is any mechanical set-up, machine or Code, which possession may include places of abode and worship,
combination of machine used for the processing of logs and other burial grounds, and old clearings, but excludes production forest
forest raw materials into lumber, veneer, plywood, wallboard, inclusive of logged-over areas, commercial forests and established
block-board, paper board, pulp, paper or other finished wood plantations of forest trees and trees of economic value.
products.
(nn) Person includes natural as well as juridical person.
(bb) Lease is a privilege granted by the State to a person to occupy
and possess, in consideration of a specified rental, any forest land
CHAPTER I
of the public domain in order to undertake any authorized activity
ORGANIZATION AND JURISDICTION OF THE BUREAU
therein.
Section 4. Creation of, and merger of all forestry agencies into, the
(cc) License is a privilege granted by the State to a person to utilize
Bureau of Forest Development. For the purpose of implementing
forest resources as in any forest land, without any right of
the provisions of this Code, the Bureau of Forestry, the
occupation and possession over the same, to the exclusion of
Reforestation Administration, the Southern Cebu Reforestation
others, or establish and operate a wood-processing plant, or
Development Project, and the Parks and Wildlife Office, including
conduct any activity involving the utilization of any forest
applicable appropriations, records, equipment, property and such
resources.
personnel as may be necessary, are hereby merged into a single
agency to be known as the Bureau of Forest Development,
(dd) License agreement is a privilege granted by the State to a hereinafter referred to as the Bureau.
person to utilize forest resources within any forest land with the
right of possession and occupation thereof to the exclusion of
others, except the government, but with the corresponding
Section 5. Jurisdiction of Bureau. The Bureau shall have shall be deemed to have declined the appointment, in which case
jurisdiction and authority over all forest land, grazing lands, and all the position may be filed by any other qualified applicant.
forest reservations including watershed reservations presently
administered by other government agencies or instrumentalities.
For the efficient and effective implementation of the program of
the Bureau, the following divisions and sections are hereby
It shall be responsible for the protection, development, created, to wit:
management, regeneration, and reforestation of forest lands; the
regulation and supervision of the operation of licensees, lessees
The Department Head may, upon recommendation of the
and permittees for the taking or use of forest products therefrom
Director, reorganize or create such other divisions, sections of
or the occupancy or use thereof; the implementation of multiple
units as may be deemed necessary and to appoint the personnel
use and sustained yield management in forest lands; the
there: Provided, That an employee appointed or designated as
protection, development and preservation of national parks,
officer-in-charge of a newly created division, section or unit, or to
marine parks, game refuges and wildlife; the implementation of
an existing vacant position with a higher salary, shall receive, from
measures and programs to prevent kaingin and managed
the date of such appointment or designation until he is replaced
occupancy of forest and grazing lands; in collaboration with other
or reverted to his original position, the salary corresponding to the
bureaus, the effective, efficient and economic classification of
position temporarily held by him.
lands of the public domain; and the enforcement of forestry,
reforestation, parks, game and wildlife laws, rules, and
regulations. There shall be created at least eleven regional offices. In each
region, there shall be as many forest districts as may be necessary,
in accordance with the extent of forest area, established work
The Bureau shall regulate the establishment and operation of
loads, need for forest protection, fire prevention and other
sawmills, veneer and plywood mills and other wood processing
factors, the provisions of any law to the contrary notwithstanding:
plants and conduct studies of domestic and world markets of
Provided, That the boundaries of such districts shall follow,
forest products.
whenever possible, natural boundaries of watersheds under the
river-basin concept of management.
Section 6. Director and Assistant Director and their
qualifications. The Bureau shall be headed by a Director, who shall
Section 11. Manpower Development. The Bureau shall establish
be assisted by one or more Assistant Directors. The Director and
and operate an in-service training center for the purpose of
Assistant Directors shall be appointed by the President.
upgrading and training its personnel and new employees.
Section 15. Topography. No land of the public domain eighteen 10. Areas previously proclaimed by the President as
per cent (18%) in slope or over shall be classified as alienable and forest reserves, national parks, game refuge, bird
disposable, nor any forest land fifty per cent (50%) in slope or sanctuaries, national shrines, national historic sites:
over, as grazing land.
CHAPTER III
4. Areas within forest concessions which are timbered UTILIZATION AND MANAGEMENT
or have good residual stocking to support an existing,
or approved to be established, wood processing plant;
Section 19. Multiple use. The numerous beneficial uses of the
timber, land, soil, water, wildlife, recreation value and grass of
forest lands shall be evaluated and weighted before allowing the
utilization, exploitation, occupation or possession thereof, or the Section 25. Cutting cycle. The Bureau shall apply scientific cutting
conduct of any activity therein. cycle and rotation in all forest lands, giving particular
consideration to the age, volume and kind of healthy residual
trees which may be left undisturbed and undamaged for future
Only the utilization, exploitation, occupation or possession of any
harvest and forest cover indipterocarp area, and seed trees and
forest land, or any activity therein, involving one or more or its
reproduction in pine area.
resources, which will produce the optimum benefits to the
development and progress of the country and the public welfare,
without impairment or with the least injury to its other resources, Section 26. Annual allowable cut. The annual allowable cut of any
shall be allowed. particular forest land shall be determined on the basis of the
established rotation and cutting cycle thereof, and the volume and
kind of harvestable timber and healthy residuals, seed trees and
All forest reservations may be open to uses not inconsistent with
reproduction found therein.
the principal objectives of the reservation: Provided, That critical
watersheds and national parks shall not be subject to logging
operations. Section 27. Duration of license agreement or license to harvest
timber in forest lands. The duration of the privilege to harvest
timber in any particular forest land under a license agreement or
Section 20. License agreement, license, lease or permit. No person
license shall be fixed and determined in accordance with the
may utilize, exploit, occupy, possess or conduct any activity within
annual allowable cut therein, the established cutting cycle thereof,
any forest land, or establish and operate any wood-processing
the yield capacity of harvestable timber, and the capacity of
plant, unless he has been authorized to do so under a license
healthy residuals for a second growth.
agreement, lease, license, or permit.
A. TIMBER
The maximum period of any privilege to harvest timber is twenty-
five (25) years, renewable for a period, not exceeding twenty-five
Section 22. Silvicultural and harvesting systems. In any logging (25) years, necessary to utilize all the remaining commercial
operations in production forests within forest lands, the proper quantity or harvestable timber either from the unlogged or
silvicultural and harvesting systems that will promote optimum logged-over area.
sustained yield shall be practised.
It shall be a condition for the continued privilege to harvest timber
(a) For dipterocarp forest, selective logging shall be under any license or license agreement that the licensee shall
practised. reforest all the areas which shall be determined by the Bureau.
(b) For pine forest, the seed tree system with planting Section 28. Size of forest concessions. Forest lands shall not be
when necessary shall be practised. held in perpetuity.
(c) For other types of forest, the silvicultural and The size of the forest lands which may be the subject of timber
harvesting system that will be found suitable by utilization shall be limited to that which a person may effectively
research shall be applied. Meanwhile, a system based utilize and develop for a period of fifty (50) years, considering the
on observation and practices abroad may be adopted cutting cycle, the past performance of the applicant and his
initially. capacity not only to utilize but, more importantly, to protect and
manage the whole area, and the requirements of processing
Any practised system are subject to modification or changes based plants existing or to be installed in the region.
on research findings.
Forest concessions which had been the subject of consolidations
Section 23. Timber inventory. The Bureau shall conduct a program shall be reviewed and re-evaluated for the effective
of progressive inventories of the harvestable timber and young implementation of protection, reforestation and management
trees in all forest lands, whether covered by any license thereof under the multiple use and sustained yield concepts, and
agreement, license, lease or permit, or not, until a one hundred for the processing locally of the timber resources therefrom.
per cent (100%) timber inventory thereon has been achieved.
A licensee who has no processing plant may, subject to the The lease may be granted under such terms and conditions as the
approval of the Director, enter into a contract with a wood Department Head may prescribe, taking into account, among
processor for the processing of his logs. Wood processors shall others, the raw material needs of forest-based industries and the
accept for processing only logs cut by, or purchased from, maintenance of a wholesome ecological balance.
licensees of good standing at the time of the cutting of logs.
Reforestation projects of the Government, or portions thereof
C. REFORESTATION which, upon field evaluation, are found to be more suitable for, or
can be better developed as, industrial tree plantations or tree
farms in terms of benefits to the Government and the general
Section 33. Forest lands to be reforested. The following shall be
surrounding area, may be the subject of the lease under this
reforested and covered with suitable and sufficient trees, to wit:
section.
(d) Open tracts of forest lands with slopes or gradients generally Section 36. Incentives. To encourage qualified persons to engage
exceeding fifty per cent (50%), interspersed with patches of forest in industrial tree plantation and/or tree farming, the following
each of which is less than two hundred fifty (250) hectares in area; incentives are granted:
(a) Payment of a nominal filing fee of fifty centavos (P0.50) per (h) A lessee shall not be subject to any obligation prescribed in, or
hectare; arising out of, the provisions of the National Internal Revenue
Code on withholding of tax at source upon interests paid on
borrowings incurred for development and operation of the
(b) No rental shall be collected during the first five (5) years from
industrial tree plantation or tree farm.
the date of the lease; from the sixth year to the tenth year, the
annual rental shall be fifty centavos (P0.50) per hectare; and
thereafter, the annual rental shall be one peso (P1.00) per The Department Head may provide other incentives in addition to
hectare: Provided, That lessees of areas long denuded as certified those hereinabove granted to promote industrial tree plantation
by the Director and approved by the Department Head, shall be and tree farms in special areas such as, but not limited to, those
exempted from the payment of rental for the full term of the lease where there are no roads or where roads are inadequate, or areas
which shall not exceed twenty-five (25) years; for the first five (5) with rough topography and remote areas far from processing
years following the renewal of the lease, the annual rental shall be plants.
fifty centavos (P0.50) per hectare; and thereafter, the annual
rental shall be one peso (P1.00) per hectare.
All amounts collected under this section shall accrue to a special
deposit of the Bureau to be used for reforestation of critical
(c) The lessee shall pay forest charges on the timber and other watersheds or degraded areas and other development activities,
forest products grown and cut or gathered in an industrial tree over and above the general appropriation of the said Bureau.
plantation or tree farm equivalent to six percent (6%) current
market value thereof;
D. FOREST PROTECTION
No harvest of standing or felled timber in alienable and disposable Section 46. Scaling stations. In collaboration with appropriate
lands, private lands, civil reservation, and all other lands, including government agencies, the Bureau shall establish control or scaling
those under the jurisdiction of other government agencies, shall stations at suitably located outlets of timber and other forest
be allowed unless a one hundred per cent (100%) timber products to insure that they were legally cut or harvested.
inventory has been conducted thereon.
Section 47. Mining operations. Mining operations in forest lands
Section 41. Sworn timber inventory reports. All reports on timber shall be regulated and conducted with due regard to protection,
inventories of forest lands, alienable and disposable lands, private development and utilization of other surface resources.
lands, civil reservations, and all lands containing standing or felled
timber must be subscribed and sworn to by all the forest officers
Location, prospecting, exploration, utilization or exploitation of
who conducted the same.
mineral resources in forest reservations shall be governed by
Mining laws, rules and regulations. No location, prospecting,
Section 42. Participation in the development of alienable and exploration, utilization, or exploitation of mineral resources inside
disposable lands and civil reservations. The privilege to harvest forest concessions shall be allowed unless proper notice has been
timber in alienable and disposable lands and civil reservations served upon the licensees thereof and the prior approval of the
shall be given to those who can best help in the delineation and Director, secured.
development of such areas in accordance with the management
plan of the appropriate government exercising jurisdiction over
Mine tailings and other pollutants affecting the health and safety
the same.
of the people, water, fish, vegetation, animal life and other surface
resources, shall be filtered in silt traps or other filtration devices
The extent of participation shall be based on the amount of and only clean exhausts and liquids shall be released therefrom.
timber which may be harvested therefrom.
Surface-mined areas shall be restored to as near its former natural
Section 43. Swamplands and mangrove forests. Strips of configuration or as approved by the Director prior to its
mangrove forest bordering numerous islands which protect the abandonment by the mining concern.
shoreline, the shoreline roads, and even coastal communities from
the destructive force of the sea during high winds and typhoons,
Section 48. Mineral Reservations. Mineral reservations which are
shall be maintained and shall not be alienated. Such strips must be
not the subject of mining operations or where operations have
kept from artificial obstruction so that flood water will flow
been suspended for more than five (5) years shall be placed under
unimpeded to the sea to avoid flooding or inundation of cultivated
forest management by the Bureau.
areas in the upstream.
Where roads are utilized by more than one commercial forest Section 54. Pasture in forest lands. No forest land 50% in slope or
user, the Bureau shall prescribe the terms and conditions of joint over may be utilized for pasture purposes.
use including the equitable sharing of construction and/or
maintenance costs, and of the use of these roads by other parties
Forest lands which are being utilized for pasture shall be
and the collection of such fees as may be deemed necessary.
maintained with sufficient grass cover to protect soil, water and
other forest resources.
Section 50. Logging roads. There shall be indiscriminate
construction of logging roads.
If grass cover is insufficient, the same shall be supplemented with
trees or such vegetative cover as may be deemed necessary.
Such roads shall be strategically located and their widths regulated
so as to minimize clear-cutting, unnecessary damage or injury to
The size of forest lands that may be allowed for pasture and other
healthy residuals, and erosion. Their construction must not only
special uses shall be determined by rules and regulations, any
serve the transportation need of the logger but, most importantly,
provision of law to the contrary notwithstanding.
the requirement to save as many healthy residuals as possible
during cutting and hauling operations.
Section 55. Wildlife. Wildlife may be destroyed, killed, consumed,
eaten or otherwise disposed of, without the necessity of permit,
Section 51. Management of occupancy in forest lands. Forest
for the protection of life, health, safety and property, and the
occupancy shall henceforth be managed. The Bureau shall study,
convenience of the people.
determine and define which lands may be the subject of
occupancy and prescribed therein, an agro-forestry development
program. However, the Director may regulate the killing and destruction of
wildlife in forest lands in order to maintain an ecological balance
of flora and fauna.
Occupants shall undertake measures to prevent and protect forest
resources.
Section 56. Recreation. The Bureau shall, in the preparation of
multiple-use management plans, identify and provide for the
Any occupancy in forest land which will result in sedimentation,
protection of scenic areas in all forest lands which are potentially
erosion, reduction in water yield and impairment of other
valuable for recreation and tourism, and plan for the development
resources to the detriment of community and public interest shall
and protection of such areas to attract visitors thereto and meet
not be allowed.
increasing demands therefor.
Section 68. Cutting, gathering and/or collecting timber or other Section 70. Pasturing Livestock. Imprisonment for not less than six
products without license. Any person who shall cut, gather, collect, (6) months nor more than two (2) years and a fine equal to ten
or remove timber or other forest products from any forest land, or (10) times the regular rentals due, in addition to the confiscation
timber from alienable and disposable public lands, or from private of such livestock and all improvement introduced in the area in
lands, without any authority under a license agreement, lease, favor of the government, shall be imposed upon any person, who
license or permit, shall be guilty of qualified theft as defined and shall, without authority under a lease or permit, graze or cause to
punished under Articles 309 and 310 of the Revised Penal Code; graze livestock in forest lands, grazing lands and alienable and
Provided, That in the case of partnership, association or disposable lands which have not as yet been disposed of in
corporation, the officers who ordered the cutting, gathering or accordance with the Public Land Act; Provided, That in case the
collecting shall be liable, and if such officers are aliens, they shall, offender is a corporation, partnership or association, the officers
in addition to the penalty, be deported without further and directors thereof shall be liable.
proceedings on the part of the Commission on Immigration and
Deportation.
Section 71. Illegal occupation of national parks system and
recreation areas and vandalism therein. Any person who shall,
The Court shall further order the confiscation in favor of the without permit, occupy for any length of time any portion of the
government of the timber or forest products to cut, gathered, national parks system or shall, in any manner, cut, destroy,
collected or removed, and the machinery, equipment, implements damage or remove timber or any species of vegetation or forest
and tools used therein, and the forfeiture of his improvements in cover and other natural resources found therein, or shall mutilate,
the area. deface or destroy objects of natural beauty or of scenic value
within areas in the national parks system, shall be fined not less
than two hundred (P200.00) pesos or more than five hundred
The same penalty plus cancellation of his license agreement,
(P500.00) pesos exclusive of the value of the thing damaged;
lease, license or permit and perpetual disqualification from
Provided, That if the area requires rehabilitation or restoration as
acquiring any such privilege shall be imposed upon any licensee,
determined by the Director, the offender shall also be required to
lessee, or permittee who cuts timber from the licensed or leased
restore or compensate for the restoration of the damage;
area of another, without prejudice to whatever civil action the
Provided, Further, That any person who, without proper permit
latter may bring against the offender.
shall hunt, capture or kill any kind of bird, fish or wild animal life
within any area in the national parks system shall be subject to the
Section 69. Unlawful occupation or destruction of forest same penalty; Provided, Finally, That the Court shall order eviction
lands. Any person who enters and occupies or possesses, or makes of the offender from the land and the forfeiture in favor of the
kaingin for his own private use or for others any forest land Government of all timber or any species of vegetation and other
without authority under a license agreement, lease, license or natural resources collected or removed, and any construction or
permit, or in any manner destroys such forest land or part thereof, improvement made thereon by the offender. If the offender is an
or causes any damage to the timber stand and other products and association or corporation, the president or manager shall be
forest growths found therein, or who assists, aids or abets any directly responsible and liable for the act of his employees or
other person to do so, or sets a fire, or negligently permits a fire to laborers.
be set in any forest land shall, upon conviction, be fined in an
amount of not less than five hundred pesos (P500.00) nor more
In the event that an official of a city or municipal government is
than twenty thousand pesos (P20,000.00) and imprisoned for not
primarily responsible for detecting and convicting the violator of
less than six (6) months nor more than two (2) years for each such
the provisions of this Section, fifty per centum (50%) of the fine
offense, and be liable to the payment of ten (10) times the rental
collected shall accrue to such municipality or city for the
fees and other charges which would have been accrued had the
development of local parks.
occupation and use of the land been authorized under a license
agreement, lease, license or permit: Provided, That in the case of
an offender found guilty of making kaingin, the penalty shall be Section 72. Destruction of wildlife resources. Any person violating
imprisoned for not less than two (2) nor more than (4) years and a the provisions of Section 55 of this Code, or the regulations
fine equal to eight (8) times the regular forest charges due on the promulgated thereunder, shall be fined not less than one hundred
(P100.00) pesos for each such violation and in addition shall be municipal or city forest or pasture, classified timber land, forest
denied a permit for a period of three (3) years from the date of reserve, and areas under the national park system or to make any
the violation. false mark or imitation of any mark or sign herein indicated;
Provided, That if the offender is a corporation, partnership or
association, the officers and directors thereof shall be liable.
Section 73. Survey by unauthorized person. Imprisonment for not
less than two (2) nor more than four (4) years, in addition to the
confiscation of the implements used in the violation of this section Section 78. Payment, collection and remittance of forest
including the cancellation of the license, if any, shall be imposed charges. Any person who fails to pay the amount due and payable
upon any person who shall, without permit to survey from the under the provisions of this Code, the National Internal Revenue
Director, enter any forest lands, whether covered by a license Code, or the rules and regulations promulgated thereunder, shall
agreement, lease, license, or permit, or not, and conduct or be liable to the payment of a surcharge of twenty-five per centum
undertake a survey for whatever purpose. (25%) of the amount due and payable.
Section 74. Misclassification and survey by government official or Any person who fails or refuses to remit to the proper authorities
employee. Any public officer or employee who knowingly surveys, said forest charges collectible pursuant to the provisions of this
classifies, or recommends the release of forest lands as alienable Code or the National Internal Revenue Code, or who delays,
and disposable lands contrary to the criteria and standards obstructs or prevents the same, or who orders, causes or effects
established in this Code, or the rules and regulations promulgated the transfer or diversion of the funds for purposes other than
hereunder, shall, after an appropriate administrative proceeding, those specified in this Code, for each such offense shall, upon
be dismissed from the service with prejudice to re-employment, conviction, be punished by a fine of not exceeding one hundred
and upon conviction by a court of competent jurisdiction, suffer thousand pesos (P100,000.00) and/or imprisonment for a period
an imprisonment of not less than one (1) year and a fine of not of not exceeding six (6) years in the discretion of the Court. If the
less than one thousand, (P1,000.00) pesos. The survey, offender is a government official or employee, he shall, in
classification or release of forest lands shall be null and void. addition, be dismissed from the service with prejudice to
reinstatement and with disqualification from holding any elective
or appointive office.
Section 75. Tax declaration on real property. Imprisonment for a
period of not less than two (2) nor more than four (4) years and
perpetual disqualification from holding an elective or appointive If the offender is a corporation, partnership or association, the
office, shall be imposed upon any public officer or employee who officers and directors thereof shall be liable.
shall issue a tax declaration on real property without a
certification from the Director of Forest Development and the
Section 79. Sale of wood products. No person shall sell or offer for
Director of Lands or their duly designated representatives that the
sale any log, lumber, plywood or other manufactured wood
area declared for taxation is alienable and disposable lands, unless
products in the international or domestic market unless he
the property is titled or has been occupied and possessed by
complies with grading rules and established or to be established
members of the national cultural minorities prior to July 4, 1955.
by the Government.