Vous êtes sur la page 1sur 126

LAW ON NATURAL RESOURCES REVIEWER time to come back.

For example, coal is a non-


renewable resource.
Blacks Law Definition of Natural
Resources Regalian Doctrine

Blacks first definition in his 7th ed. is any material Art XII, Sec. 2 of the 1987 Constitution
from nature having potential economic value or All lands of the public domain, waters, minerals, coal,
providing for the sustenance of life, such as timber, petroleum, and other mineral oils, all forces of
minerals, oil, water and wildlife. The second potential energy, fisheries, forests or timber, wildlife,
definition is environmental features that serve a flora and fauna, and other natural resources are owned
communitys well-being or recreational interests, such by the State. With the exception of agricultural lands,
as parks. all other natural resources shall not be alienated. The
exploration, development, and utilization of natural
Blacks (Sixth edition, 1990), defined natural resources resources shall be under the full control and
as any material in its native state which when supervision of the State. The State may directly
extracted has economic value. Basically it states that undertake such activities, or it may enter into co-
for a substance or feature to be classified as a natural production, joint venture, or productionsharing
resource, it must offer potential or actual economic agreements with Filipino citizens, or corporations or
value, creating wealth. associations at least sixty per centum of whose capital
is owned by such citizens. Such agreements may be for
a period not exceeding twenty-five years, renewable
Definition of Natural Resources : Other Websites for not more than twenty-five years, and under such
terms and conditions as may be provided by law. In
Natural resource is any naturally occurring substance cases of water rights for irrigation, water supply
or feature of the environment (physical or biological) fisheries, or industrial uses other than the development
that, while not created by human effort, can be of water power, beneficial use may be the measure and
exploited by humans to satisfy their needs or wants. limit of the grant.
Many of such resources are our life line such as water,
air and solar radiation, which are essential elements for The State shall protect the nation's marine wealth in its
the existence of all the flora and fauna. archipelagic waters, territorial sea, and exclusive
economic zone, and reserve its use and enjoyment
Two basic conditions for a substance or feature to be exclusively to Filipino citizens.
classified as a natural resource: First, the resource must The Congress may, by law, allow small-scale
exist naturally in the environment; that is, not utilization of natural resources by Filipino citizens, as
synthetically produced by human beings, such as in a well as cooperative fish farming, with priority to
laboratory or factory. Second, the resource must be subsistence fishermen and fish- workers in rivers,
able to be exploited by humans to directly satisfy a lakes, bays, and lagoons.
need or want.
The President may enter into agreements with foreign-
Natural resources may either be: owned corporations involving either technical or
a) Biotic resources which are derived from financial assistance for large-scale exploration,
biosphere such as the forests, marine development, and utilization of minerals, petroleum,
organism, animals, birds and their products and other mineral oils according to the general terms
including mineral fuels come in this category, and conditions provided by law, based on real
or contributions to the economic growth and general
b) Abiotic which includes water, air, land and welfare of the country. In such agreements, the State
elemental ores such as gold, silver, copper, shall promote the development and use of local
iron etc. scientific and technical resources.

It may also be either be renewable and nonrenewable The Concept of Jure Regalia (Regalian Doctrine)
resources. A renewable resource grows again or comes
back again after we use it. For example, sunlight, This principle means that all natural wealth -
water, and trees are renewable resources. A non- agricultural, forest or timber, and mineral lands of the
renewable resource is a resource that does not grow or public domain and all other natural resources belong to
come back, or a resource that would take a very long the State. Thus, even if the private person owns the
property where minerals are discovered, his ownership control over the executive
for such does not give him the right to extract or utilize department.
said minerals without permission from the state to
which such minerals belong. A groups of intervenors, including Sen.
Flavier, one of the authors of the IPRA and
The abovementioned provision provides that except for members of 112 groups of indigenous peoples
agricultural lands for public domain which alone may prayed for the dismissal of the petition.
be alienated, forest or timber, and mineral lands, as The Commission of Human Rights likewise
well as all other natural resources must remain with the asserts that IPRA is an expression of the
State, the exploration, development and utilization of principle of parens patriae and that the State
which shall be subject to its full control and has the responsibility to protect the rights of
supervision albeit allowing it to enter into the indigenous peoples.
coproduction, joint venture or production-sharing
Decision:
agreements, or into agreements with foreign-owned
corporations involving technical or financial assistance The votes of the Court are split where 7 voted to
for large-scale exploration, development, and dismiss the petition and 7 voted to grant. As the votes
utilization were equally divided and the necessary majority was
Cases not obtained, the petition was dismissed.

1. Cruz vs. Secretary of Environment and


Natural Resource (2000) SEPARATE OPINION (Justice Puno)
Facts:
I. The Development of the Regalian Doctrine in the
Petitioners Isagani Cruz and Cesar Europa Philippine Legal System
filed a case for prohibition and mandamus as
citizen and taxpayers, assailing the
A. The Laws of Indies
constitutionality of certain provisions of the
Indigenous Peoples Rights Act (IPRA) and its The Regalian Doctrine or jura regalia is a
implementing Rules on ground that they Western legal concept first introduced by the
amount to an unlawful deprivation of the Spaniards through the Laws of Indies and the
States ownership over lands of public Royal Cedulas. All lands became the exclusive
domain and minerals and other natural dominion of the Spanish Crown, and the Spanish
resources, in violation of the Regalian Government took charge of distributing the lands
doctrine. by issuing royal grants and concessions to
o They likewise contend that Spaniards. Private land titles can only be acquired
providing an all-encompassing from the government by purchase or other land
definition of ancestral domain and grant from the Crown.
ancestral lands which might even
include private lands within the The Law of Indies was followed by the Mortgage
areas violate the rights of private Law of 1893 which provided for the systematic
land owners. registration of titles and deeds. The Maura Law of
o Petitioners likewise contend that 1894 was the last Spanish law promulgated in the
provisions of the IPRA defining the Philippines, which required the registration of all
jurisdiction and powers of the NCIP agricultural lands; otherwise the lands shall revert
violate due process of law. to the state.
o Lastly, petitioners assail the validity
of NCIP Administrative Order No. 1
which provides that the
administrative relationship of the B. Valentin vs. Murciano
NCIP to the Office of the President
(OP) as lateral and autonomous
This case answered the question of which is the
relationship for purposes of policy
better basis for ownership of land: longtime
coordination, thereby infringing
occupation or paper title.
upon the Presidents power of
In this case, plaintiffs entered into peaceful II. The Indigenous Peoples Rights Act
occupation of the subject land while defendants
ourchased the land in 1892. The Court ruled that
The IPRA recognizes the existence of the
from 1860 to 1892 there was no law in force in the
indigenous cultural communities or indigenous
Philippines by which plaintiffs could obtain
peoples as a distinct sector. It grants these people
ownership by prescription, without any action of
the ownership and possession of their ancestral
the State, otherwise the same shall remain the
domains and ancestral lands, and defines the
property of the State. Thus, it required settlers on
public lands to obtain titles deeds from the State. 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
C. Public Land Acts and the Torrens System preserve their culture. To carry out the policies of
the ACT, the law created the National
Act No. 926, the first Public Land Act, was passed Commission on Indigenous Peoples
in pursuance with the Philippine Bill of 1902, (NCIP)
governing the disposition of land of public
domain. It prescribe rules for the homesteading,
selling and leasing of portions of the public A. Indigenous Peoples
domain, and to enable persons to perfect their
titles to public lands. It also provided for the Indigenous Cultural Communities or Indigenous
issuance of patents to certain native settlers upon Peoples (ICCs/ IPs) refer to a group of people who
public lands. have continuously lived as an organized
community on communally bounded and defined
Act No. 926 was superseded by the Act 2874, the territory. These groups of peoples have actually
second Public Land Act, passed under the Jones occupied, possessed and utilized their territories
Law. it limited the exploitation of agricultural under claim of ownership since time immemorial.
lands to Filipinos and Americans and citizens of
other countries which gave the Filipinos the same Their unit of government is the barangay. In a
privileges. baranganic society, the chiefs administered the
lands in the name of the barangay, there was no
It was amended by Commonwealth Act No. private property in land. When Islam was
141which remains the present Public Land introduced in the country in the archipelago of
Law. Maguindanao, the Sultanate of Sulu claimed
jurisdiction over territorial areas.
Grants of public land were brought under the
operation of the Torrens System under Act When Spaniards settled in the Philippines,
496 which placed all public and private lands Spanish missionaries were ordered to establish
in the Philippines under the Torrens system, pueblos where church would be constructed. All
requiring that the government issue an the new Christian converts were required to
official certificate of title attesting to the fact construct their house around the church. All lands
that the person named is the owner of the lost by the old barangays in the process of pueblo
property described. organization and all lands not assigned to the
pueblos were declared to be lands of the Crown.,
and the natives were stripped of their ancestral
D. The Philippine Constitutions rights to the lands.

The Regalian Doctrine was enshrined in the The American government classified the Filipinos into
1935, 1973 and 1987 Constitutions which two: Christian Filipinos and non-Christian Filipinos,
basically states that all lands of the public not to religious belief, but to geographical area, the
domain as well as natural resources, whether latter referring to natives of the Philippines of a low
on public or private land, belong to the State. grade of civilization, usually living in tribal
It is this concept of state ownership that relationship. The Americans pursued a policy of
petitioners claim is being violated by the assimilation. They passed Act No. 253 creating the
IPRA. bureau of NonChristian Tribes to determine the most
practicable means for bring about their advancement.
The 1935 Constitution did not carry any policy on the B. Carino vs. Insular Government
non-Christian Filipinos. It was in the 1973 Constitution
that the State recognized the customs and interest of On June 23, 1903, Mateo Cario went to the Court of
national cultural communities in the formulation of Land Registration to petition his inscription as the
state policies. owner of a 146 hectare land hes been possessing in the
then municipality of Baguio. Mateo only presented
In 1974, President Marcos promulgated PD 410 or the possessory information and no other documentation.
Ancestral Lands Decree, providing for the issuance of The State opposed the petition averring that the land is
land occupancy certificates to members of the national part of the US military reservation. The CLR ruled in
cultural communities. favor of Mateo. The State appealed. Mateo lost. Mateo
averred that a grant should be given to him by reason
The Aquino government shifted from the policy of of immemorial use and occupation.
integration to one of preservation. She created the
Office of Muslim Affairs, Office of Northern Cultural
The US SC ruled in favor of Carino and ordered the
Communities and the Office for Southern Cultural
registration of the subject lands in his name. The court
Communities all under the OP.
laid down the presumption of a certain title held as far
The 1987 Constitution expressly guaranteed the rights back as memory went and under a claim of private
of tribal Filipinos to their ancestral domain and ownership. Land held by this title is presumed to never
ancestral lands. have been public land. The registration requirement
was not to confer title, but simply to establish it. In a
nutshell, Cario enunciated the legal presumption that
ancestral lands and domains were not part of the public
III. THE PROVISIONS OF THE IPRA DO NOT domain, having maintained their character as private
CONTRAVENE THE CONSTITUTION lands of the indigenous peoples since time immemorial

A. Ancestral Domains and Ancestral Lands Why Carino doctrine is unique?


are the Private Property of the Indigenous Carino is the only case that specifically recognizes
Peoples and do not constitute Part of the native title. Carino was cited by succeeding cases to
Land of Public Domain support the concept of acquisitive prescription under
the Public Land Act
Ancestral domains are all areas belonging to ICCs/IPs
held under a claim of ownership, occupied or
possessed by ICCs/IPs since time immemorial, Other Separate Opinions:
continuously until the present except when interrupted
by war or force majeure. It comprises of lands, inland Justice Kapunan
waters, coastal areas, and natural resources therein and Regalian theory doesnt negate the native title to lands
includes ancestral lands, forests, pastures, hunting held in private ownership since time immemorial,
grounds, burial grounds, and bodies of water, mineral adverting to the landmark case of CARINO V.
and other natural resources. LOCAL GOVERNMENT, where the US SC through
Holmes held: xxx the land has been held by
Ancestral lands are lands held by the ICCs/ IPs under individuals under a claim of private ownership, it will
the same conditions as ancestral domains except that be presumed to have been held in the same way from
these are limited to lands, not merely occupied and before the Spanish conquest, and never to have been
possessed but are also utilized, including residential public land. Existence of native titie to land, or
lots, rice terraces, or paddies, private forests. ownership of land by Filipinos by virtue of possession
under a claim of ownership since time immemorial and
The delineation of ancestral domains and lands is independent of any grant from the Spanish crown as an
conferred on the NCIP who shall issue a exception to the theory of jure regalia Justice Puno:
Certificate of Ancestral Domain (CADT) upon Carino case firmly established a concept of private
finding that the application is meritorious, in the land title that existed irrespective of any royal grant
name of the community. Ancestral Lands outside from the State and was based on the strong mandate
the ancestral domain, the NCIP issues a Certificate extended to the Islands via the Philippine Bill of 1902.
of Land Title (CALT). The CALTs and CADTs The IPRA recognizes the existence of ICCs/IPs as a
shall be registered in the Register of Deeds in the distinct sector in the society. It grants this people the
place where property is situated. ownership and possession of their ancestral domains
and ancestral lands and defines the extent of these lands PEA seeks to transfer to AMARI under
lands and domains the JVA are lands of the public domain which
the government has not classified as alienable
2. Chavez vs. Public Estates Authority lands and therefore PEA cannot alienate these
(2002) 1 lands; (2) the certificates of title covering the
Freedom Islands are thus void, and (3) the
Facts: JVA itself is illegal.
The Phil govt (through the Commissioner of Petitioner Frank Chavez, as a taxpayer, filed
Public Highways) signed a contract with the the instant Petition for Mandamus with Prayer
CDCP (Construction and Development for Issuance of a Writ of Preliminary
Corporation of the Philippines) to reclaim Injunction and TRO.
certain foreshore and offshore areas of March 30, 1999, PEA and AMARI signed an
Manila Bay and for the construction of the Amended Joint Agreement, which was
Manila-Cavite Coastal Road. approved by Pres. Estrada.
Pres. Marcos issued P.D. 1084 creating PEA
Note:
(Public Estates Authority) and transferred to
The Amended Joint Venture Agreement: The subject
it the lands reclaimed in Manila Bay for the
matter of the Amended JVA, as stated in its second
Manila-Cavite Road and Reclamation Project
Whereas clause, consists of three properties, namely:
(MCCRRP).
Thereafter, Pres. Aquino issued Special
Patent No. 3517, granting and transferring to 1. "[T]hree partially reclaimed and
PEA the parcels of land so reclaimed under substantially eroded islands along Emilio
the MCCRRP. A TCT was also issued in the Aguinaldo Boulevard in Paranaque and Las
name of PEA covering 3 reclaimed islands Pinas, Metro Manila, with a combined titled
known as the "Freedom Islands" (157.84 area of 1,578,441 square meters;"
hectares) located at the southern portion of the
Manila-Cavite Coastal Road, Paraaque City, 2. "[A]nother area of 2,421,559 square
which were part of these lands acquired by meters contiguous to the three islands;" and
PEA.
PEA entered into a Joint Venture Agreement 3. "[A]t AMARI's option as approved
(JVA) with AMARI (AMARI Coastal Bay by PEA, an additional 350 hectares more or
and Development Corporation), a private less to regularize the configuration of the
corporation, to develop the Freedom reclaimed area."
Islands.
o However, the JVA also required the PEA confirms that the Amended JVA involves "the
reclamation of an additional 250 hectares development of the Freedom Islands and further
of submerged areas surrounding these reclamation of about 250 hectares x x x," plus an
islands to complete the configuration in option "granted to AMARI to subsequently reclaim
the Master Development Plan of the another 350 hectares x x x."
Southern Reclamation ProjectMCCRRP.
o PEA and AMARI entered into the JVA In short, the Amended JVA covers a reclamation area
through negotiation without public of 750 hectares. Only 157.84 hectares of the 750-
bidding. hectare reclamation project have been reclaimed, and
On June 8, 1995, then President Fidel V. the rest of the 592.15 hectares are still submerged
Ramos, through then Executive Secretary areas forming part of Manila Bay.
Ruben Torres, approved the JVA.
On November 29, 1996, then Senate Indisputably, under the Amended JVA, AMARI will
President Maceda delivered a privilege acquire and own a maximum of 367.5 hectares of
speech denouncing the JVA as the reclaimed land which will be titled in its name.
"grandmother of all scams."
Thus the Senate Committees investigated on
the matter and concluded (1) the reclaimed Issue:

1Two subsequent motions for reconsideration was filed and were


denied.
Whether the stipulations in the Amended Joint Venture submerged areas. Thereafter, the government
Agreement or the transfer to AMARI of certain lands can classify the reclaimed lands as alienable
reclaimed and still to be reclaimed violate the 1987 or disposable, and further declare them no
Constitution. longer needed for public service. Still, the
transfer of such reclaimed alienable lands of
Decision: the public domain to AMARI will be void in
view of Section 3, Article XII of the 1987
The SC summarized the conclusions as follows: Constitution which prohibits private
1. The 157.84 hectares of reclaimed corporations from acquiring any kind of
landscomprising the Freedom Islands, now alienable land of the public domain.
covered by certificates of title in the name of
PEA, are alienable lands of the public Clearly, the Amended JVA violates glaringly Sections
domain. PEA may lease these lands to private 2 and 3, Article XII of the 1987 Constitution. Under
corporations but may not sell or transfer Article 1409 of the Civil Code, contracts whose "object
ownership of these lands to private or purpose is contrary to law," or whose "object is

Amended JVA null and void ab initio.


corporations. PEA may only sell these lands outside the commerce of men," are "inexistent and void
to Philippine citizens, subject to the from the beginning." The Court must perform its duty
ownership limitations in the 1987 to defend and uphold the Constitution, and therefore
Constitution and existing laws. declares the
3. Chavez vs. National Housing Authority
2. The 592.15 hectares of submerged (2007)
areas of Manila Bay remain inalienable
natural resources of the public domain until Facts:
classified as alienable or disposable lands On August 5, 2004, former Solicitor General
open to disposition and declared no longer Francisco Chavez, filed an instant petition
needed for public service. The government raising constitutional issues on the JVA
can make such classification and declaration entered by National Housing Authority and
only after PEA has reclaimed these R-II Builders, Inc.
submerged areas. Only then can these lands On March 1, 1988, then-President Cory
qualify as agricultural lands of the public Aquino issued Memorandum order No. (MO)
domain, which are the only natural resources 161 approving and directing implementation
the government can alienate. In their present of the Comprehensive and Integrated
state, the 592.15 hectares of submerged areas Metropolitan Manila Waste Management
are inalienable and outside the commerce of Plan.
man. o During this time, Smokey
Mountain, a wasteland in Tondo,
3. Since the Amended JVA seeks to Manila, are being made residence of
transfer to AMARI, a private corporation, many Filipinos living in a subhuman
ownership of 77.34 hectares of the Freedom state.
As presented in MO 161, NHA prepared
Islands, such transfer is void for being
contrary to Section 3, Article XII of the 1987 feasibility studies to turn the dumpsite into
Constitution which prohibits private low-cost housing project, thus, Smokey
corporations from acquiring any kind of Mountain Development and Reclamation
alienable land of the public domain. Project (SMDRP), came into place. RA 6957
(Build-Operate-Transfer Law) was passed on
July 1990 declaring the importance of private
4. Since the Amended JVA also seeks
sectors as contractors in government projects.
to transfer to AMARI ownership of 290.156
Thereafter, Aquino proclaimed MO 415
hectares of still submerged areas of Manila
applying RA 6957 to SMDRP, among others.
Bay, such transfer is void for being contrary
o The same MO also established EXECOM
to Section 2, Article XII of the 1987
and TECHCOM in the execution and
Constitution which prohibits the alienation of
evaluation of the plan, respectively, to be
natural resources other than agricultural lands
of the public domain. PEA may reclaim these
assisted by the Public Estates Authority from 40 hectares to 79 hectares,
(PEA). which was supported by the issuance
Notices of public bidding to become NHAs of Proclamation No. 465 by
venture partner for SMDRP were published in President Ramos. The revision also
newspapers in 1992, from which R-II provided for the 119-hectare land as
Builders, Inc. (RBI) won the bidding process. an enabling component for Phase II
o Then-President Ramos authorized NHA to of the project.
enter into a Joint Venture Agreement with Subsequently, the Clean Air Act was passed
RBI. by the legislature which made the
Under the JVA, the project involves the establishment of an incinerator illegal,
clearing of Smokey Mountain for eventual making the off-site dumpsite at Smokey
development into a low cost housing complex Mountain necessary.
and industrial/commercial site. On August 1, 1998, the project was
o RBI is expected to fully finance the suspended, to be later reconstituted by
development of Smokey Mountain President Estrada in MO No. 33.
and reclaim 40 hectares of the land On August 27, 2003, the NHA and RBI
at the Manila Bay Area. executed a Memorandum of Agreement
o The latter together with the whereby both parties agreed to terminate the
commercial area to be built on JVA and subsequent agreements.
Smokey Mountain will be owned by o During this time, NHA reported that
RBI as enabling components. If the 34 temporary housing structures and
project is revoked or terminated by 21 permanent housing structures had
the Government through no fault of been turned over by RBI.
RBI or by mutual agreement, the
Government shall compensate RBI Issues:
for its actual expenses incurred in the 1. Whether respondents NHA and RBI have
Project plus a reasonable rate of been granted the power and authority to
return not exceeding that stated in reclaim lands of the public domain as this
the feasibility study and in the power is vested exclusively in PEA as
contract as of the date of such claimed by petitioner
revocation, cancellation, or 2. Whether respondents NHA and RBI were
termination on a schedule to be given the power and authority by DENR to
agreed upon by both parties. reclaim foreshore and submerged lands
To summarize, the SMDRP shall consist of
3. Whether respondent RBI can acquire
Phase I and Phase II.
reclaimed foreshore and submerged lands
o Phase I of the project involves
considered as alienable and outside the
clearing, levelling-off the dumpsite,
commerce of man
and construction of temporary
housing units for the current 4. Whether respondent RBI can acquire
residents on the cleared and levelled reclaimed lands when there was no
site. declaration that said lands are no longer
o Phase II involves the construction of needed for public use
a fenced incineration area for the on- 5. Whether there is a law authorizing sale of
site disposal of the garbage at the reclaimed lands
dumpsite.
Due to the recommendations done by the 6. Whether the transfer of reclaimed lands to
DENR after evaluations done, the JVA was RBI was done by public bidding
amended and restated (now ARJVA) to
accommodate the design changes and 7. Whether RBI, being a private corporation, is
additional work to be done to successfully barred by the Constitution to acquire lands of
implement the project. public domain
o The original 3,500 units of
8. Whether respondents can be compelled to
temporary housing were decreased
disclose all information related to the
to 2,992. The reclaimed land as SMDRP
enabling component was increased
9. Whether the operative fact doctrine applies to 6. There is no doubt that respondent NHA
the instant position conducted a public bidding of the right to
become its joint venture partner in the
Smokey Mountain Project. It was noted that
Decision: notices were published in national
1. Executive Order 525 reads that the PEA shall newspapers. The bidding proper was done by
be primarily responsible for integrating, the Bids and Awards Committee on May 18,
directing, and coordinating all reclamation 1992.
projects for and on behalf of the National 7. RA 6957 as amended by RA 7718 explicitly
Government. This does not mean that it shall states that a contractor can be paid a portion
be responsible for all. The requisites for a as percentage of the reclaimed land subject
valid and legal reclamation project are to the constitutional requirement that only
approval by the President (which were Filipino citizens or corporation with at least
provided for by MOs), favourable 60% Filipino equity can acquire the same. In
recommendation of PEA (which were seen as addition, when the lands were transferred to
a part of its recommendations to the the NHA, these were considered Patrimonial
EXECOM), and undertaken either by PEA or lands of the state, by which it has the power
entity under contract of PEA or by the to sell the same to any qualified person.
National Government Agency (NHA is a
government agency whose authority to 8. This relief must be granted. It is the right of
reclaim lands under consultation with PEA is the Filipino people to information on matters
derived under PD 727 and RA 7279). of public concerned as stated in Article II,
Sec. 28, and Article III, Sec. 7 of the 1987
2. Notwithstanding the need for DENR Constitution.
permission, the DENR is deemed to have
granted the authority to reclaim in the 9. When the petitioner filed the case, the JVA
Smokey Mountain Project for the DENR is had already been terminated by virtue of
one of the members of the EXECOM which MOA between RBI and NHA. The properties
provides reviews for the project. ECCs and and rights in question after the passage of
Special Patent Orders were given by the around 10 years from the start of the projects
DENR which are exercises of its power of implementation cannot be disturbed or
supervision over the project. Furthermore, it questioned. The petitioner, being the
was the President via the abovementioned Solicitor General at the time SMDRP was
MOs that originally authorized the formulated, had ample opportunity to
reclamation. It must be noted that the question the said project, but did not do so.
reclamation of lands of public domain is The moment to challenge has passed.
reposed first in the Philippine President.

3. The reclaimed lands were classified alienable 4. Republic of the Philippines vs. Celestina
and disposable via MO 415 issued by Naguiat (2006)
President Aquino and Proclamation Nos. 39
and 465 by President Ramos. Facts:
Celestina Naguiat applied for registration of
4. Despite not having an explicit declaration, the title to 4 parcels of land (located in Botolan,
lands have been deemed to be no longer Zambales) with RTC Zambales.
needed for public use as stated in o She claimed to have acquired it from
Proclamation No. 39 that these are to be LID Corporation, who in turn had
disposed to qualified beneficiaries. acquired it from Calderon, Moraga
Furthermore, these lands have already been and Monje and their predecessors-
necessarily reclassified as alienable and in-interest who have been in
disposable lands under the BOT law. possession for more than 30 years.
Republic of the Philippines (through the
5. Letter I of Sec. 6 of PD 757 clearly states that OSG) filed an opposition to the application.
the NHA can acquire property rights o They claim that neither Naguiat nor
and interests and encumber or otherwise her predecessors-in-interest have
dispose of them as it may deem appropriate. been in possession since 12 June
1945, that the muniments of title and source of any asserted right to ownership of land. All
tax payment receipts arent lands not appearing to be clearly of private dominion
sufficient evidence of a bona fide presumptively belong to the State. Accordingly, public
acquisition of the lands, that lands not shown to have been reclassified or released
Naguiats Spanish title can no longer as alienable agricultural land or alienated to a private
be availed of and finally, that said person by the State remain part of the inalienable
lands are part of the public domain public domain. Under Section 6 of the Public Land Act,
and not subject of private the prerogative of classifying or reclassifying lands of
appropriation. the public domain, i.e., from forest or mineral to
RTC rendered a decision in favour of Naguiat agricultural and vice versa, belongs to the Executive
and decreed the registration of said lands in Branch of the government and not the court. Needless
her name. to stress, the onus to overturn, by incontrovertible
Petitioner Republic of the Phils brought case evidence, the presumption that the land subject of an
to the CA. application for registration is alienable or disposable
CA affirmed RTC decision. Issue: rests with the applicant.

Whether or not the areas in question have ceased to In the case at bar, the CA only granted the
have the status of forest or other inalienable lands of petition because it assumed that the lands in question
the public domain. are already alienable and disposable, which is found by
the SC to not be in this case.
Decision:

No. Naguiat was unable to provide sufficient Here, respondent never presented the
evidence that such parcels of land are no longer a required certification from the proper government
part of the public domain. agency or official proclamation reclassifying the
land applied for as alienable and disposable.
Public forest lands or forest reserves, unless Matters of land classification or reclassification
declassified and released by positive act of the cannot be assumed. It calls for proof. Aside from tax
Government so that they may form part of the receipts, respondent submitted in evidence the survey
disposable agricultural lands of the public domain, are map and technical descriptions of the lands, which,
not capable of private appropriation. As to these assets, needless to state, provided no information respecting
the rules on confirmation of imperfect title do not the classification of the property. These documents are
apply. not sufficient to overcome the presumption that the
land sought to be registered forms part of the public
domain.
Forests, in the context of both the Public Land
Act and the Constitution classifying lands of the public Therefore, the issue of whether or not Naguiat
domain into "agricultural, forest or timber, mineral and her predecessor-in-interest have been in open,
lands and national parks," do not necessarily refer to a exclusive and continuous possession of the parcels of
large tract of wooded land or an expanse covered by land in question is now of little moment. For,
dense growth of trees and underbrush. As we stated in unclassified land, as here, cannot be acquired by
Heirs of Amunategui: adverse occupation or possession; occupation thereof
in the concept of owner, however long, cannot ripen
A forested area classified as forest land of the public into private ownership and be registered as title.
domain does not lose such classification simply
because loggers or settlers have stripped it of its forest
cover. Parcels of land classified as forest land may
actually be covered with grass or planted to crops by Sustainable Development
kaingin cultivators or other farmers. "Forest lands" do
not have to be on mountains or in out of the way places. Sustainable Development is development that meets
xxx. The classification is merely descriptive of its legal the needs of the present without compromising the
nature or status and does not have to be descriptive of ability of future generations to meet their own needs
what the land actually looks like. xxx (Brundtland Report). It is a pattern of resource use that
aims to meet human needs while preserving the
Under Section 2, Article XII of the environment so that these needs can be met not only in
Constitution, which embodies the Regalian doctrine, the present, but also for generations to come.
all lands of the public domain belong to the State the
It contains within it two key concepts: the concept and the economy, government and the polity, and civil
of 'needs', in particular the essential needs of the society and culture.
world's poor, to which overriding priority should From this perspective, five dimensions of sustainable
be given; and the idea of limitations imposed development are clearly visible. These arethe human
by the state of technology and social organization being, culture, polity, economy, and Nature.
on the environment's ability to meet present and
future needs
Article II, Sec. 16 of 1987 Constitution
The Brundtland Reports targets were multilateralism
and interdependence of nations in the search for a The State shall protect and advance the right of the
sustainable development path. The report sought to people to a balanced and healthful ecology in accord
recapture the spirit of the United Nations Conference with the rhythm and harmony of nature.
on the Human Environment - the Stockholm
Conference - which had introduced environmental Does Sec. 16 provide for enforceable rights?
concerns to the formal political development sphere.
Our Common Future placed environmental issues Yes. The provision, as worded, recognizes an
firmly on the political agenda; it aimed to discuss the enforceable right. Hence, appeal to it has been
environment and development as one single issue. recognized as conferring standing on minors to
The publication of Our Common Future and the work challenge logging policies of the government (Oposa
of the World Commission on Environment and vs. Factoran). On this basis too, the Supreme Court
Development laid the groundwork for the convening of upheld the empowerment of the Laguna Lake
the 1992 Earth Summit and the adoption of Agenda 21, Development Authority to protect the inhabitants of
the Rio Declaration and to the establishment of the the Laguna Lake Area from the deleterious effects of
Commission on Sustainable Development. pollutants coming from garbage dumping and the
In addition, key contributions of Our Common Future discharge of wastes in the area as against the local
to the concept of sustainable development include the autonomy claim of local governments in the area
recognition that the many crises facing the planet are (Laguna Lake Development Authority vs. CA)
interlocking crises that are elements of a single crisis
of the whole and of the vital need for the active While the right to a balanced and healthful ecology is
participation of all sectors of society in consultation to be found under the Declaration of Principles and
and decisions relating to sustainable development. State Policies and not under the Bill of Rights, it does
not follow that it is less important than any of the civil
Sustainable development ensures the well-being of the and political rights enumerated in the latter. As a
human person by integrating social development, matter of fact, these basic rights need not even be
economic development, and environmental written in the Constitution for they are assumed to exist
conservation and protection. It refers to the from the inception of humankind. The right to a
"interdependent and mutually reinforcing pillars of balanced and healthful ecology carries with it the
sustainable development as economic development, correlative duty to refrain from impairing the
social development, and environmental protection. As environment.
the goal of sustainable development is to permanently
improve the living conditions of human beings, social Section 16 is unusual among those found in Article II
and economic developments must be carried out in a in that, whereas almost all the other provisions in the
way that is environmentally and ecologically sound; Article are not self-executing but need implementing
ensuring the continual rejuvenation and availability of legislation to make them effective, Section 16 has been
natural resources for future generations. recognized by the Supreme Court as selfexecuting like
the provisions in the Bill of Rights.

Seven Dimensions of Sustainable


Development : From the Philippine Agenda 21 AGENDA 21

Commission [formally the World Commission on


From the Philippine perspective sustainable
Environment and Development (WCED)]:
development is a multidimensional concept, involving
no less than seven dimensions. Sustainable
development is viewed as the mutually beneficial It was known by the name of its Chair Gro Harlem
interaction between the legitimate interests of business Brundtland (former Norwegian Prime Minister), and
was convened by the United Nations in 1983. The
commission was created to address growing concern Sustainable Development acts as the secretariat to the
"about the accelerating deterioration of the human Commission and works 'within the context of' Agenda
environment and natural resources and the 21. Implementation by member states remains
consequences of that deterioration for economic and essentially voluntary.
social development." In establishing the commission,
the UN General Assembly recognized that Structure and Contents:
environmental problems were global in nature and There are 40 chapters in the Agenda 21, divided into
determined that it was in the common interest of all four main sections.
nations to establish policies for sustainable 1. Section I: Social and Economic
development. Dimensions - which deals with combating
poverty, changing consumption patterns,
promoting health, change population and
Agenda 21: an action plan of the United sustainable settlement.
Nations (UN) related to sustainable development and
2. Section II:
was an outcome of the United Nations Conference on
Conservation and
Environment and Development (UNCED) held in Rio
Management of Resources for
de Janeiro, Brazil, in 1992. It is a comprehensive
Development - Includes atmospheric
blueprint of action to be taken globally, nationally and
protection, combating deforestation,
locally by organizations of the UN, governments, and
protecting fragile environments, conservation
major groups in every area in which humans directly
of biological diversity
affect the environment.
(biodiversity), and control of pollution.
Development of Agenda 21: The full text of Agenda Section III: Strengthening the Role of Major
21 was revealed at the United Nations Conference on Groups - Includes the roles of children and
Environment and Development (Earth Summit), held youth, women, NGOs, local authorities,
in Rio de Janeiro on June 13, 1992, where 178 business and workers.
governments voted to adopt the program. The final text Section IV: Means of Implementation -
was the result of drafting, consultation and negotiation, Implementation includes science,
beginning in 1989 and culminating at the two-week technology transfer, education,
conference. The number 21 refers to an agenda for the international institutions and financial
21st century. It may also refer to the number on the mechanisms.
UN's agenda at this particular summit.
Local Agenda 21: The implementation of Agenda 21
Rio+5: In 1997, the General Assembly of the UN held was intended to involve action at international,
a special session to appraise five years of progress on national, regional and local levels. Some national and
the implementation of Agenda 21 (Rio +5). The state governments have legislated or advised that local
Assembly recognized progress as 'uneven' and authorities take steps to implement the plan locally, as
identified key trends including increasing recommended in Chapter 28 of the document. Such
globalization, widening inequalities in income and a programmes are often known as 'Local Agenda 21' or
continued deterioration of the global environment. A 'LA21'.
new General Assembly Resolution (S19/2) promised
further action.
Agenda 21 for culture: During the first World
The Johannesburg Summit: The Johannesburg Plan Public Meeting on Culture, held in Porto Alegre in
of Implementation, agreed at the World Summit on 2002, it came up the idea to draw up a document
Sustainable Development (Earth Summit 2002) guidelines for local cultural policies, a document
affirmed UN commitment to 'full implementation' of comparable to what the Agenda 21 meant in 1992 for
Agenda 21, alongside achievement of the Millennium the environment. The Agenda 21 for culture is the first
Development Goals and other international document with worldwide mission that advocates
agreements. establishing the groundwork of an undertaking by
cities and local governments for cultural development.
Implementation: The Commission on Sustainable
Development acts as a high level forum on sustainable
development and has acted as preparatory committee
for summits and sessions on the implementation of
Agenda 21. The United Nations Division for
REPUBLIC ACT NO. 9729: CLIMATE to achieve coordination in the implementation of plans
CHANGE ACT OF 2009 and programs to address climate change in the context
of sustainable development.
Section 2. Declaration of Policy. It is the policy of
the State to afford full protection and the advancement Further recognizing that climate change and disaster
of the right of the people to a healthful ecology in risk reduction are closely interrelated and effective
accord with the rhythm and harmony of nature. In this disaster risk reduction will enhance climate change
light, the State has adopted the Philippine Agenda 21 adaptive capacity, the State shall integrate disaster risk
framework which espouses sustainable development, reduction into climate change programs and initiatives.
to fulfill human needs while maintaining the quality of
the natural environment for current and future Cognizant of the need to ensure that national and
generations. subnational government policies, plans, programs and
Towards this end, the State adopts the principle of projects are founded upon sound environmental
protecting the climate system for the benefit of considerations and the principle of sustainable
humankind, on the basis of climate justice or common development, it is hereby declared the policy of the
but differentiated responsibilities and the State to systematically integrate the concept of climate
Precautionary Principle to guide decision-making in change in various phases of policy formulation,
climate risk management. As a party to the United development plans, poverty reduction strategies and
Nations Framework Convention on Climate Change, other development tools and techniques by all agencies
the State adopts the ultimate objective of the and instrumentalities of the government.
Convention which is the stabilization of greenhouse Section 3. Definition of Terms. For purposes of this
gas concentrations in the atmosphere at a level that Act, the following shall have the corresponding
would prevent dangerous anthropogenic interference meanings:
with the climate system which should be achieved
within a time frame sufficient to allow ecosystems to (a) Adaptation refers to the
adapt naturally to climate change, to ensure that food adjustment in natural or human systems in
production is not threatened and to enable economic response to actual or expected climatic
development to proceed in a sustainable stimuli or their effects, which moderates harm
manner.1awphil As a party to the Hyogo Framework or exploits beneficial opportunities.
for Action, the State likewise adopts the strategic goals
in order to build national and local resilience to climate
(b) Adaptive capacity refers to the
change-related disasters.
ability of ecological, social or economic
systems to adjust to climate change including
Recognizing the vulnerability of the Philippine climate variability and extremes, to moderate
archipelago and its local communities, particularly the or offset potential damages and to take
poor, women, and children, to potential dangerous advantage of associated opportunities with
consequences of climate change such as rising seas, changes in climate or to cope with the
changing landscapes, increasing frequency and/or consequences thereof.
severity of droughts, fires, floods and storms, climate-
related illnesses and diseases, damage to ecosystems,
(c) Anthropogenic causes refer to
biodiversity loss that affect the countrys environment,
causes resulting from human activities or
culture, and economy, the State shall cooperate with
produced by human beings.
the global community in the resolution of climate
change issues, including disaster risk reduction. It shall
be the policy of the State to enjoin the participation of (d) Climate Change refers to a
national and local governments, businesses, change in climate that can be identified by
nongovernment organizations, local communities and changes in the mean and/or variability of its
the public to prevent and reduce the adverse impacts of properties and that persists for an extended
climate change and, at the same time, maximize the period typically decades or longer, whether
benefits of climate change. It shall also be the policy due to natural variability or as a result of
of the State to incorporate a gender-sensitive, pro- human activity.
children and pro-poor perspective in all climate change
and renewable energy efforts, plans and programs. In (e) Climate Variability refers to the
view thereof, the State shall strengthen, integrate, variations in the average state and in other
consolidate and institutionalize government initiatives statistics of the climate on all temporal and
spatial scales beyond that of individual nitrous oxide, hydrofluorocarbons,
weather events. perfluorocarbons and sulfur hexafluoride.

(f) Climate Risk refers to the (m) Mainstreaming refers to the


product of climate and related hazards integration of policies and measures that
working over the vulnerability of human and address climate change into development
natural ecosystems. planning and sectoral decision-making.

(g) Disaster refers to a serious (n) Mitigation in the context of


disruption of the functioning of a community climate change, refers to human intervention
or a society involving widespread human, to address anthropogenic emissions by
material, economic or environmental losses sources and removals by sinks of all GHG,
and impacts which exceed the ability of the including ozone- depleting substances and
affected community or society to cope using their substitutes.
its own resources.
(o) Mitigation potential shall refer
(h) Disaster risk reduction refers to to the scale of GHG reductions that could be
the concept and practice of reducing disaster made, relative to emission baselines, for a
risks through systematic efforts to analyze given level of carbon price (expressed in cost
and manage the causal factors of disasters, per unit of carbon dioxide equivalent
including through reduced exposure to emissions avoided or reduced).
hazards, lessened vulnerability of people and
property, wise management of land and the (p) Sea level rise refers to an increase
environment, and improved preparedness for in sea level which may be influenced by
adverse events. factors like global warming through
expansion of sea water as the oceans warm
(i) Gender mainstreaming refers to and melting of ice over land and local factors
the strategy for making womens as well as such as land subsidence.
mens concerns and experiences an integral
dimension of the design, implementation, (q) Vulnerability refers to the degree
monitoring, and evaluation of policies and to which a system is susceptible to, or unable
programs in all political, economic, and to cope with, adverse effects of climate
societal spheres so that women and men change, including climate variability and
benefit equally and inequality is not extremes. Vulnerability is a function of the
perpetuated. It is the process of assessing the character, magnitude, and rate of climate
implications for women and men of any change and variation to which a system is
planned action, including legislation, exposed, its sensitivity, and its adaptive
policies, or programs in all areas and at all capacity.
levels.
Section 4. Creation of the Climate Change
(j) Global Warming refers to the Commission. There is hereby established a Climate
increase in the average temperature of the Change Commission, hereinafter referred to as the
Earths near-surface air and oceans that is Commission.
associated with the increased concentration of
greenhouse gases in the atmosphere. The Commission shall be an independent and
autonomous body and shall have the same status as that
(k) Greenhouse effect refers to the of a national government agency. It shall be attached
process by which the absorption of infrared to the Office of the President.
radiation by the atmosphere warms the Earth.
The Commission shall be the sole policy-making body
(l) Greenhouse gases (GHG) refers of the government which shall be tasked to coordinate,
to constituents of the atmosphere that monitor and evaluate the programs and action plans of
contribute to the greenhouse effect including, the government relating to climate change pursuant to
but not limited to, carbon dioxide, methane, the provisions of this Act.
The Commission shall be organized within sixty (60) in his capacity as Chair of the Philippine
days from the effectivity of this Act. Council for Sustainable Development;

Section 5. Composition of the Commission. The (o) Director-General of the National


Commission shall be composed of the President of the Security Council;
Republic of the Philippines who shall serve as the
Chairperson, and three (3) Commissioners to be (p) Chairperson of the National
appointed by the President, one of whom shall serve as Commission on the Role of Filipino
the Vice Chairperson of the Commission. Women;

The Commission shall have an advisory board (q) President of the League of Provinces;
composed of the following:
(r) President of the League of Cities;
(a) Secretary of the Department of
Agriculture; (s) President of the League of
Municipalities;
(b) Secretary of the Department of Energy;
(t) President of the Liga ng mga Barangay;
(c) Secretary of the Department of
Environment and Natural Resources; (u) Representative from the academe;

(d) Secretary of the Department of (v) Representative from the business sector;
Education; and

(e) Secretary of the Department of Foreign (w) Representative from nongovernmental


Affairs; organizations.

(f) Secretary of the Department of Health; At least one (1) of the sectoral representatives shall
come from the disaster risk reduction community.
(g) Secretary of the Department of the
Interior and Local Government; The representatives shall be appointed by the President
from a list of nominees submitted by their respective
(h) Secretary of the Department of National groups. They shall serve for a term of six (6) years
Defense, in his capacity as Chair of the without reappointment unless their representation is
National Disaster Coordinating Council; withdrawn by the sector they represent. Appointment
to any vacancy shall be only for the unexpired term of
(i) Secretary of the Department of Public the predecessor.
Works and Highways;
Only the ex officio members of the advisory board
(j) Secretary of the Department of Science shall appoint a qualified representative who shall hold
and Technology; a rank of no less than an Undersecretary.

(k) Secretary of the Department of Social Section 6. Meetings of the Commission. The
Welfare and Development; Commission shall meet once every three (3) months,
or as often as may be deemed necessary by the
(l) Secretary of the Department of Trade Chairperson. The Chairperson may likewise call upon
and Industry; other government agencies for the proper
(m) Secretary of the Department of implementation of this Act.
Transportation and Communications;
Section 7. Qualifications, Tenure, Compensation of
(n) Director-General of the National Commissioners. The Commissioners must be
Economic and Development Authority, Filipino citizens, residents of the Philippines, at least
thirty (30) years of age at the time of appointment, with
at least ten (10) years of experience on climate change virtue of their educational background, training and
and of proven honesty and ntegrity. The experience: Provided, That at least one (1)
Commissioners shall be experts in climate change by Commissioner shall be female: Provided, further,
That in no case shall the Commissioners come from (f) Recommend key
development the same sector: Provided, finally, That in no case investments in climate- sensitive sectors
shall any of the Commissioners appoint such as water resources, agriculture, representatives to act on their
behalf. forestry, coastal and marine resources, health, and infrastructure to ensure the achievement of national
sustainable
The Commissioners shall hold office for a period of development goals;
six (6) years, and may be subjected to reappointment: Provided, That
no person shall serve
for more than two (2) consecutive terms: Provided, (g) Create an enabling environment for the further, That in case of
a vacancy, the new appointee design of relevant and appropriate riskshall fully meet the qualifications of a
Commissioner sharing and risk-transfer instruments; and shall hold office for the unexpired portion of the term only:
Provided, finally, That in no case shall a
Commissioner be designated in a temporary or (h) Create an enabling environment that acting capacity. shall promote
broader multi-stakeholder
participation and integrate climate change
mitigation and adaptation;
The Vice Chairperson and the Commissioners shall have the
rank and privileges of a Department
Secretary and Undersecretary, respectively. They (i) Formulate strategies on mitigating GHG shall be entitled to
corresponding compensation and and other anthropogenic causes of climate other emoluments and shall be subject to
change;
the same disqualifications.
(j) Coordinate and establish a close
Section 8. Climate Change Office. There is hereby partnership with the National Disaster created a Climate Change
Office that shall assist the Coordinating Council in order to increase Commission. It shall be headed by a Vice
Chairperson efficiency and effectiveness in reducing the of the Commission who shall act as the Executive peoples
vulnerability to climate-related
disasters;
Director of the Office. The Commission shall have the authority to determine the
number of staff and
create corresponding positions necessary to facilitate (k) In coordination with the Department of the proper
implementation of this Act, subject to civil Foreign Affairs, represent the Philippines in service laws, rules and
regulations. The officers and the climate change negotiations; employees of the Commission shall be appointed by the
Executive Director.
(l) Formulate and update guidelines for
determining vulnerability to climate change
Section 9. Powers and Functions of the impacts and adaptation assessments and Commission. The Commission shall
have the facilitate the provision of technical following powers and functions: assistance for their implementation and
monitoring;
(a) Ensure the mainstreaming of climate
change, in synergy with disaster risk (m) Coordinate with local government units reduction, into the national,
sectoral and (LGUs) and private entities to address local development plans and programs; vulnerability to
climate change impacts of
regions, provinces, cities and municipalities;
(b) Coordinate and synchronize climate
change programs of national government (n) Facilitate capacity building for local agencies; adaptation
planning, implementation and
monitoring of climate change initiatives in
vulnerable communities and areas;
(c) Formulate a Framework Strategy on
Climate Change to serve as the basis for a
program for climate change planning, (o) Promote and provide technical and research and development,
extension, and financial support to local research and monitoring of activities on climate change;
development programs and projects in vulnerable communities and areas; and
(d) Exercise policy coordination to ensure
the attainment of goals set in the framework (p) Oversee the dissemination of strategy and program on
climate change; information on climate change, local vulnerabilities and risks, relevant laws and (e)
Recommend legislation, policies, protocols and adaptation and mitigation strategies, programs on and
measures.
appropriations for climate change adaptation and
mitigation and other related activities; Section 10. Panel of Technical Experts. The Commission shall
constitute a national panel of technical experts
consisting of practitioners in
disciplines that are related to climate change, including (d) Compliance with
disaster risk reduction. international commitments;

The Panel shall provide technical advice to the (e) Research and development;
Commission in climate science, technologies, and best
practices for risk assessment and enhancement of (f) Database development
adaptive capacity of vulnerable human settlements to and management;
potential impacts of climate change.
(g) Academic programs, capability building
The Commission shall set the qualifications and and mainstreaming;
compensation for the technical experts. It shall provide
resources for the operations and activities of the Panel. (h) Advocacy and information dissemination;

Section 11. Framework Strategy and Program on (i) Monitoring and evaluation; and(j) Gender
Climate Change. The Commission shall, within six
(6) months from the effectivity of this Act, formulate a
Framework Strategy on Climate Change. The mainstreaming.
Framework shall serve as the basis for a program for
climate change planning, research and development, Section 13. National Climate Change Action Plan. The
extension, and monitoring of activities to protect Commission shall formulate a National Climate
vulnerable communities from the adverse effects of Change Action Plan in accordance with the
climate change. Framework within one (1) year after the formulation
of the latter.
The Framework shall be formulated based on climate
change vulnerabilities, specific adaptation needs, and The National Climate Change Action Plan shall include,
mitigation potential, and in accordance with the but not limited to, the following components:
international agreements.
(a) Assessment of the national impact of
The Framework shall be reviewed every three (3) years, climate change;
or as may be deemed necessary.
(b) The identification of the most
Section 12. Components of the Framework Strategy vulnerable communities/areas, including
and Program on Climate Change. The Framework ecosystems to the impacts of climate change,
shall include, but not limited to, the following variability and extremes;
components:
(c) The identification of differential
(a) National priorities; impacts of climate change on men, women and
children;
(b) Impact, vulnerability and adaptation
assessments; (d) The assessment and management of
risk and vulnerability;
(c) Policy formulation;
(e) The identification of GHG mitigation Section 15. Role of Government Agencies. To ensure
potentials; and the effective implementation of the framework strategy
and program on climate change, concerned agencies
(f) The identification of options, shall perform the following functions:
prioritization of appropriate adaptation
measures for joint projects of national and local (a) The Department of Education
governments. (DepED) shall integrate climate change into
the primary and secondary education curricula
Section 14. Local Climate Change Action Plan. The and/or subjects, such as, but not limited to,
LGUs shall be the frontline agencies in the science, biology, sibika, history, including
formulation, planning and implementation of climate textbooks, primers and other educational
change action plans in their respective areas, materials, basic climate change principles and
consistent with the provisions of the Local concepts;
Government Code, the Framework, and the National
Climate Change Action Plan. (b) The Department of the Interior and
Local Government (DILG) and Local
Barangays shall be directly involved with municipal Government Academy shall facilitate the
and city governments in prioritizing climate change development and provision of a training
issues and in identifying and implementing best program for LGUs in climate change. The
practices and other solutions. Municipal and city training program shall include socioeconomic,
governments shall consider climate change geophysical, policy, and other content
adaptation, as one of their regular functions. necessary to address the prevailing and
Provincial governments shall provide technical forecasted conditions and risks of particular
assistance, enforcement and information management LGUs. It shall likewise focus on women and
in support of municipal and city climate change action children, especially in the rural areas, since
plans. Inter-local government unit collaboration shall they are the most vulnerable;
be maximized in the conduct of climate- related
activities. (c) The Department of Environment and
Natural Resources (DENR) shall oversee the
LGUs shall regularly update their respective action establishment and maintenance of a climate
plans to reflect changing social, economic, and change information management system and
environmental conditions and emerging issues. The network, including on climate change risks,
LGUs shall furnish the Commission with copies of activities and investments, in collaboration
their action plans and all subsequent amendments, with other concerned national government
modifications and revisions thereof, within one (1) agencies, institutions and LGUs;
month from their adoption. The LGUs shall mobilize
and allocate necessary personnel, resources and (d) The Department of Foreign Affairs
logistics to effectively implement their respective (DFA) shall review international agreements
action plans. related to climate change and make the
The local chief executive shall appoint the person necessary recommendation for ratification and
responsible for the formulation and implementation of compliance by the government on matters
the local action plan. pertaining thereto;

It shall be the responsibility of the national government (e) The Philippine Information Agency
to extend technical and financial assistance to LGUs for (PIA) shall disseminate information on
the accomplishment of their Local Climate Change climate change, local vulnerabilities and risk,
Action Plans. relevant laws and protocols and adaptation and
mitigation measures; and
The LGU is hereby expressly authorized to appropriate (f) Government financial institutions,
and use the amount from its Internal Revenue shall,any provision in their respective charters
Allotment necessary to implement said local plan to the contrary notwithstanding, provide
effectively, any provision in the Local Government preferential financial packages for climate
Code to the contrary notwithstanding. change- related projects. In consultation with
the Bangko Sentral ng Pilipinas (BSP), they
shall, within thirty (30) days from the
effectivity of this Act, issue and promulgate funds for the formulation, development and
the implementing guidelines therefor. implementation, including training, capacity building
and direct intervention, of their respective climate
The Commission shall evaluate, recommend the change programs and plans. It shall also include public
approval of loans and monitor the use of said funds of awareness campaigns on the effects of climate change
LGUs. and energy-saving solutions to mitigate these effects,
and initiatives, through educational and training
Section 16. Coordination with Various Sectors. In programs and micro-credit schemes, especially for
the development and implementation of the National women in rural areas. In subsequent budget proposals,
Climate Change Action Plan, and the local action the concerned offices and units shall appropriate funds
plans, the Commission shall coordinate with the for program/project development and implementation
nongovernment organizations (NGOs), civic including continuing training and education in climate
organizations, academe, peoples organizations, the change.1avvphi1
private and corporate sectors and other concerned
stakeholder groups. Section 19. Joint Congressional Oversight Committee.
There is hereby created a Joint Congressional
Section 17. Authority to Receive Donations and/or Oversight Committee to monitor the implementation of
Grants. The Commission is hereby authorized to this Act. The Oversight Committee shall be composed
accept grants, contributions, donations, endowments, of five (5) Senators and five (5) Representatives to be
bequests, or gifts in cash, or in kind from local and appointed by the Senate
foreign sources in support of the development and President and the Speaker of the House of
implementation of climate change programs and Representatives, respectively. The Oversight
plans: Provided, That in case of donations from Committee shall be co-chaired by a Senator and a
foreign governments, acceptance thereof shall be Representative to be designated by the Senate President
subject to prior clearance and approval of the and the Speaker of the House of Representatives,
President of the Philippines upon recommendation of respectively. Its funding requirement shall be charged
the Secretary of Foreign Affairs: Provided, further, against the appropriations of Congress.
That such donations shall not be used to fund personal
services expenditures and other operating expenses of Section 20. Annual Report. The Commission shall
the Commission. submit to the President and to both Houses of Congress,
not later than March 30 of every year following the
The proceeds shall be used to finance: effectivity of this Act, or upon the request of the
Congressional Oversight Committee, a report giving a
(a) Research, development, detailed account of the status of the implementation of
demonstration and promotion of this Act, a progress report on the implementation of the
technologies; National Climate Change Action Plan and recommend
legislation, where applicable and necessary. LGUs shall
submit annual progress reports on the implementation
(b) Conduct of assessment of
of their respective local action plan to the Commission
vulnerabilities to climate change impacts,
within the first quarter of the following year.
resource inventory, and adaptation capability
building;
Section 21. Appropriations. The sum of Fifty million
pesos (Php50,000,000.00) is hereby appropriated as
(c) Advocacy, networking and initial operating fund in addition to the unutilized fund
communication activities in the conduct of of the Presidential Task Force on Climate Change and
information campaign; and
the Office of the Presidential Adviser on Global
Warming and Climate Change. The sum shall be
(d) Conduct of such other activities sourced from the Presidents contingent fund.
reasonably necessary to carry out the
objectives of this Act, as may be defined by Thereafter, the amount necessary to effectively carry
the Commission. out the provisions of this Act shall be included in the
annual General Appropriations Act.
Section 18. Funding Allocation for Climate Change.
All relevant government agencies and LGUs shall Section 22. Implementing Rules and Regulations.
allocate from their annual appropriations adequate Within ninety (90) days after the approval of this Act,
the Commission shall, upon consultation with Biodiversity;
government agencies, LGUs, private sector, NGOs and
civil society, promulgate the implementing rules and WHEREAS, the United Nations in UNCED, has
regulations of this Act: Provided, That failure to issue adopted a resolution for the creation of a Sustainable
rules and regulations shall not in any manner affect the Development Commission that will evaluate and
executory nature of the provisions of this Act. monitor the compliance too the agreements and
commitments made in Rio and in the course of it's
Section 23. Transitory Provisions. Upon the creation urged governments to also for similar bodies
organization of the Commission, the Presidential Task that will ensure that the activities at the national level
Force on Climate Change created under Administrative are implemented and coordinated within global
Order No. 171 and the Inter-Agency Committee on efforts;
Climate Change created by virtue of Administrative
Order No. 220, shall be abolished: Provided, That their WHEREAS, the agreements oblige the Philippines to
powers and functions shall be absorbed by the translate the commitments to more concrete actions
Commission: Provided, further, That the officers and and ensure that all sectors of the society shall be
employees thereof shall continue in a holdover capacity involved in its cooperalization;
until such time as the new officers and employees of the WHEREAS, in order to active these ends, the creation
Commission shall have been duly appointed pursuant to of a national sustainable development and thus assure
the provisions of this Act. All qualified regular or its integration in the Philippine national policies, plans,
permanent employees who may be transferred to the and programs that will involve all sectors of the society.
Commission shall not suffer any loss in seniority or
rank or decrease in emoluments. Any employee who SEC 1. Creation and Composition of the
cannot be absorbed by the Commission shall be Council.
entitled to a separation pay under existing retirement
laws
1) There is hereby created a Philippine Council for
Sustainable Development to be headed by the
Director-General of the National Economic and
Development Authority (NEDA) as Chairperson, and
the Secretary of the Department of Environment and
Natural Resources as Vice-Chairperson.

Executive Order No. 15 : Creating a Philippine 2) The Council will have as members committed
Council for Sustainable Development environmentalists from the following owing
departments of a position of Bureau Director of their,
WHEREAS, the 1987 Constitution mandates a policy duly deputized to represent their respective Secretaries:
of the state, the protection and advancement of the
right of the people to a balanced and healthful ecology Department of Foreign Affairs
in accordance with the rhythm and harmony of nature; Department of Science and Technology
Department of Finance
WHEREAS, a National Conservation Strategy, as Department of Agriculture
spelled out in the Philippine Strategy for Sustainable Department of Public Works and Highways
Development (PSSD), which was adopted in 1989, Department of Education, Culture, and Sports
takes a balanced and integrated approach to Department of Labor and Employment
environment and development issues by incorporating Department of Health
sustainable development principles and concepts in Department of Trade and Industry
the national priorities of government;
Department of the Interior and Local Governments
Department of Social Welfare and Developments
WHEREAS, the Philippines already adhering too the Department of Budget and Management
principle of sustainable development actively Department of National Defense
participated in the United Nations Conference on Office of Energy Affairs
Environment and Development (UNCED) Summit
held in Rio de Janeiro, and committed to the principles
3) As civil society counterpart, the non-government
set forth in the Rio Declaration, the Agenda
community shall also have seven
21, the Conventions on Climate Change and
(7) representative in the Council. These representative representatives from National Economic and
shall be selected by the nongovernment community Development Authority (NEDA), Department of
considering commitment to environmental causes, Environment and Natural Resources (DENR),
gender balance, and sector representation through a Department of Foreign Affairs(DFA), Department of
process designed by them. the Interior and Local Government (DILG), and the
three representatives from non-government sector,
Sec. 2 Powers and Functions of the Council. The which shall work out the formulation of the
Council shall have the following powers and function: operational guidelines for the Council. The working
group shall be assisted by a composite secretariat from
1`) To review and ensure the implementation on the NEDA and DENR, These transitory groups shall
commitments the Philippines made in the light of the cease its function upon the Council meeting and
UNCED Conference; adoption of the operating guidelines within sixty (60)
days upon signing of this Order.
2) To establish guidelines and mechanisms that
will expand, concretize and operationalize the EXECUTIVE ORDER NO. 62: FURTHER
sustainable development principles as embodied in the STRENGTHENING THE PHILIPPINE
Rio Declaration, the UNCED Agenda 21, the National COUNCIL FOR
Conservation Strategy, and the Philippine Agenda 21, SUSTAINABLE DEVELOPMENT (PCSD)
and incorporate them in the preparation of the Medium WHEREAS, to ensure that the commitments made in
Term Development Plan both at the national and local the Rio de Janeiro Declaration are fulfilled and to
levels with active participation from the non-government realize the countrys sustainable development goals,
sector a and people's organizations; the PCSD was established on 01 September 1992
through Executive Order No. 15;
3) Too provide directions in the form of policy
WHEREAS, to strengthen PCSD, the expansion of its
reforms, programs and new legislations that respond to
membership as well as the establishment of local
the continuing and emerging issues and charting future
councils for sustainable development were provided
actions related to environment and developments;
for through the issuance of Executive Order No. 370
(s. 1996);
4) To act as the coordinating mechanism in
cooperation either DFA-office of the United Nations WHEREAS, in order to operationalize sustainable
Commission for Sustainable Development and actively development at the local level, Memorandum Order
solicit assistance and cooperation towards the realization No. 47 (s. 1999) was issued mandating local
of our commitments made at the UNCED; government units (LGUs) to formulate and implement
their sustainable integrated area development plans or
5) To require any and all government agencies for Local Agenda 21 with the assistance of concerned
assistance in to forum of personnel, facilities, and other government agencies;
resources which is essential for the
performance for the duties of the Council; WHEREAS, in light of changing circumstances and,
emerging issues on sustainable development locally
6) To create sub-committees that it may deem fit and globally there is an urgent need to pursue new
in the performance of its duties; and interventions through a more responsive PCSD
structure;
7) To perform such other acts which are necessary
to carry out its mandated functions and responsibilities. WHEREAS, for the PCSD to be more effective and
responsive in ensuring the realization of the
Sec. 3. The Secretariat. The Council shall be assisted governments sustainable development goals, there is a
by the Secretariat which shall be based at the Notional need to streamline and define its core functions and
Economic and Development Authority whose membership, keeping in mind the various agencies in
composition will be determined by the Director- government whose functions are integral components
General. of the overall government sustainable development
operational thrusts;
Sec. 4. Transitory Provisions. There shall be
immediately be convened an interim Technical
Working Group of seven members composed or
WHEREAS, there is a need for PCSD to focus on appointment or election in their respective
strategic interventions that have significant and departments or organizations.
catalytic impact on sustainable development;
The Council shall meet quarterly, or as frequently as
WHEREAS, it is necessary to further strengthen the may be deemed necessary. Special meetings may be
PCSD as the lead instrumentality responsible for convened at the call of the Chairperson or by a
mainstreaming sustainable development in national majority of the members of the Council. In the absence
government and affiliated agencies, Congress, LGUs, of the Chairperson, the Vice-Chairperson shall
as well as existing multi-stakeholder governance preside. In case any civil society, business or labor
mechanisms. sector member of the Council cannot attend the
meeting, he or she shall be represented by the alternate
NOW, THEREFORE, I, GLORIA MACAPAGAL- to be designated through their respective selection
ARROYO, President of the Philippines, by virtue of the process for the purpose.
powers vested in me by law, do hereby order:
Sec. 4. Powers and Functions of the Council.
Section 1. Further Strengthening the PCSD. The
Philippine Council for Sustainable Development, 1. To review and ensure the implementation of
hereinafter referred to as the Council, is hereby further the commitments made by the Philippines in the light
strengthened, structurally and functionally, in of the United Nations Conference on Environment
accordance with the provisions of this Executive Order. and Development (UNCED) and its follow-up
processes;
Sec. 2. Composition of the Council.
2. To act as the coordinating mechanism with
1. The core members from government shall be the United Nations Commission on Sustainable
composed of Secretaries of the following Departments Development (UNCSD) and the Governing Bodies or
as permanent principal members, with an Secretaries of other related multilateral conventions,
Undersecretary as alternate: through the Department of Foreign Affairs (DFA);

a. National Economic and Development Authority; 3. To establish guidelines and mechanisms that
will ensure that the sustainable development
b. Department of Environment and Natural Resources; principles, as embodied in the Rio Declaration,
Agenda 21, and the Philippine Agenda 21, are
2. Civil society, composed of peoples integrated in the formulation of national, regional and
organizations, non-government organizations and local development policies, plans and programs;
sectoral/major groups representation shall have five (5)
Council members selected by their community, based 4. To formulate policies and recommend new
on their commitment to sustainable development actions to appropriate bodies on sustainable
concerns, through a process designed by them These development issues focusing on the environment
may include the following groups: women, youth, dimensions of social and economic interventions and
farmers, fisherfolk, indigenous people, Moro and the social and economic dimensions of environment
Cordillera people, urban poor, persons with disabilities, interventions;
academe, professionals, media, religious groups and
NGOs. 5. To review and monitor plans, policies,
program and legislation on sustainable development
3. Labor and business shall have one (1) to promote efficiency and timeliness of their
representative each in the Council. Representation execution and ensure consistency and coordination
shall, likewise be decided through a process to be among the Legislative and Executive branches of
designed by them. government, local government units, civil society,
business, labor and other concerned entities/sectors,
The Chairperson of the Council shall be the Secretary and existing multi-stakeholder governance
of Socio-Economic Planning and NEDA mechanisms;
DirectorGeneral. The Secretary of the Department of
Environment and Natural Resources (DENR) shall be 6. To establish a networking mechanism to link
the Vice-Chairperson. the Council with local and international organizations
involved in sustainable development;
Sec. 3. Terms of Office and Meetings. The term of
office of members shall be co-terminus with their
7. To create, reorganize or abolish committees MEMORANDUM ORDER NO. 399:
of the Council, ad-hoc or permanent, and to define DIRECTING
their structure, functions and limitations; THE OPERATIONALIZATION OF THE
8. To submit its annual work program with PHILIPPINE
actionable and time bounded targets and regularly AGENDA 21
report to the President the status of implementation AND MONITORING ITS IMPLEMENTATION
and Whereas, Article 2, Section 12 of the Constitution
achievement of specific targets thereof; mandates as a policy of the State the protection and
advancement of the right of the people to a balanced
9. To perform such other acts which are and healthful ecology in accord with the rhythm and
necessary to carry out its mandated functions and harmony of nature;
responsibilities.

Sec. 5. Participation of Other Government Agencies in Whereas, the government adheres to the sustainable
the Council. The Council can call upon other development principles embodied in the Rio
government agencies and instrumentalities, civil Declaration and adopted by the United Nations
society, business and labor sector organizations to Conference on Environment and Development in
participate in Council business, including its meetings, Rio de Janeiro, Brazil in 1992, and to which the
if so warranted by conditions as may exist from time Philippines is a signatory;
to time. For this purpose, other government agencies
shall identify a PCSD focal officer not lower than a Whereas, the Philippine Council for Sustainable
rank of Director who shall coordinate their agencys Development (PCSD), created by virtue of
participation in PCSD concerns. Executive Order No. 15 (Series of 1992) is
mandated to coordinate the formulation of
Sec. 6. Secretariat. The Council shall be assisted by Philippine Agenda 21;
a Coordinating Secretariat which shall be based at the
NEDA, the composition of which shall be determined Whereas, the Philippine Agenda 21 was formulated
by the Director-General, and a Counterpart after an extensive and intensive process of
Secretariat, the composition of which shall be coordination, cooperation, counterparting and
determined by the Civil Society Counterpart Council consensus-building among the various stakeholders
for Sustainable Development (CSCCSD). of society;
Sec. 7. Budget. There shall be provided in the
General Appropriations Act (GAA) a regular line item Whereas, the operationalization of the Philippine
under the NEDA budget to cover the operational Agenda 21 shall provide the overall direction and
requirements of the Council subject to the prescribed serve as an enabling environment in achieving
budgetary guidelines. Other member-agencies of the sustainable development;
Council shall also include a line item in the GAA
under their respective agency budgets to cover the cost Section 1. Adoption and Operationalization of the
of their activities related to PCSD. Philippine Agenda 21. The Philippine Agenda 21, as
the national action agenda for sustainable
development, is hereby adopted.

Section 2. Overall Administration. The Philippine


Council for Sustainable Development shall oversee
and monitor the operationalization of the Philippine
Agenda 21. In this regard, the Council shall provide
the coordinating and monitoring mechanisms for its
implementation. For this purpose, it shall mobilize
coordinating bodies including the Regional
Development Councils (RDCs) and the local councils
for sustainable development.

Section 3. Collaborating Agencies. All government


agencies, departments, and instrumentalities are
directed to adopt and translate the principles and
action agenda contained in the Philippine Agenda 21 an environmentally critical area, thus it was
in their respective workplans, programs and projects outside the scope of the EIS system.
and report on their progress and impacts to the PCSD. The RTC granted the writ of mandamus and
directed EMB to issue a Certificate of
Section 4. Role of the Department of Interior and NonCoverage. It ruled that there is nothing in
Local Government (DILG) and the Local the EIA System guidelines which requires
Government Units (LGUs). The LGUs, in LGUs to comply with the EIS law, as only
coordination with the local business and civil society, agencies and instrumentalities are mandated
shall implement the Philippine Agenda 21 through to go through the EIA process for their
the integration of sustainable development concerns proposed projects which have significant
in their respective plans, programs and projects and effect on the quality of the environment. A
the formulation of their respective Local Agenda 21, local government unit, not being an agency
where appropriate. or instrumentality of the National
Government, is deemed excluded Issue:
Section 5. Role of the Civil Society, Labor and Whether LGUs are covered by the EIA
Business Sectors. The PCSD shall coordinate with System?
civil society, labor and business sectors in
Decision:
operationalizing Philippine Agenda 21. Major
stakeholders from these sectors are thereby enjoined The Local Government Code provides that it is the
to adopt and implement the principles and action duty of the LGUs to promote the peoples right to a
agenda contained in the Philippine Agenda 21. balanced ecology. Pursuant to this, an LGU, like the
City of Davao, cannot claim exemption from the
Section 6. Funding. The PCSD, in the coordination with coverage of PD 1586. As a body politic endowed with
the Department of Finance (DOF), Department of governmental functions, an LGU has the duty to
Budget and Management (DBM), and the National ensure the quality of the environment, which is the
Economic and Development Authority (NEDA), shall very same objective of PD 1586.
identify funding sources in implementing and
monitoring the Philippine Agenda 21. Further, it is a rule of statutory construction that every
Cases part must be read with other parts, thus, the TC in
declaring local government units as exempt from the
coverage of the EIS law, failed to relate Section 2 of
Republic of the Philippines vs. The City of Davao PD 1586 to the several provision of the same law.
Republic vs. Alvarez, in his capacity as Sec. of Section 4 of PD 1586 clearly states that no person,
DENR partnership or corporation shall undertake or operate any
such declared environmentally critical project or area
Alvarez filed an application for a Certificate without first securing an Environmental Compliance
of Non-Coverage for its proposed project, the Certificate issued by the President or his duly authorized
Davao Artica Sports Dome, with the representative. Undoubtedly therefore, local government
Environmental Management Bureau (EMB), units are not excluded from the coverage of PD 1586.
Region 11. The EMB Region 11 denied the Sec. 1 stated that the policy of the State is to attain an
application on ground that the proposed orderly balance between socio-economic growth and
project was within an environmentally environmental protection. The Whereas clause stresses
critical area, and ruled that under the that such is only possible if we adopt an integrated
Environmental Impact Statement System, the environmental protection program where all the sectors
City of Davao must undergo the of the community are involved, i.e., the government and
environmental impact assessment (EIA) the private sectors. The local government units, as part
process to secure an Environmental of the machinery of the government, cannot therefore be
Compliance Certificate (ECC), before it can deemed as outside the scope of the EIS system
proceed with the construction of its project
Believing that it was entitled to a Certificate This however presuppose that a project, for which an
of Non-Coverage, respondent filed a petition Environmental Compliance Certificate is necessary, is
for mandamus with the RTC of Davao environmentally critical or within an environmentally
alleging that the proposed project was neither critical area. In the case at bar, respondent has
an environmentally critical project nor within sufficiently shown that the Artica Sports Dome will not
have a significant negative environmental impact
because it is not an environmentally critical project and b. Major power plants (fossil-fueled,
it is not located in an environmentally critical area. nuclear fueled, hydroelectric or
They submitted Certification from the City Planning geothermal)
and Development Office, PHILVOLCS, CENRO-West c. Major reclamation projects
in support thereof. d. Major roads and bridges

B. Environmentally Critical Areas


The Environmental Impact Statement System, which 1. All areas declared by law as national
ensures environmental protection and regulates certain parks, watershed reserves, wildlife
government activities affecting the environment, was preserves and sanctuaries;
established by Presidential Decree No. 1586. Under 2. Areas set aside as aesthetic potential
Article II, Section 1, of the Rules and Regulations tourist spots;
Implementing PD 1586, the declaration of certain 3. Areas which constitute the habitat
projects or areas as environmentally critical, and which for any endangered or threatened
shall fall within the scope of the Environmental Impact species of indigenous Philippine
Statement System, shall be by Presidential Wildlife (flora and fauna);
Proclamation. 4. Areas of
unique historic,
Pursuant thereto, Proclamation No. 2146 was archaeological, or scientific interests; 5.
issued proclaiming the following areas and types of Areas which are traditionally occupied by
projects as environmentally critical and within the cultural communities or
scope of the Environmental Impact Statement System tribes;
established under PD 1586: 6. Areas frequently visited and/or hard-
hit by natural calamities (geologic hazards,
A. Environmentally Critical Projects floods, typhoons, volcanic
activity, etc.); 7. Areas with
I. Heavy Industries critical slopes;
a. Non-ferrous metal 8. Areas classified as prime
industries agricultural lands; 9. Recharged
b. Iron and steel mills areas of aquifers;
c. Petroleum and 10. Water bodies characterized by one or any
petro-chemical industries including oil combination of the following conditions;
and gas a. tapped for domestic purposes
d. Smelting plants b. within the controlled and/or
protected areas declared by
II. Resource Extractive Industries appropriate authorities
a. Major mining and quarrying c. which support wildlife and
projects fishery activities
b. Forestry projects 11. Mangrove areas characterized by one or any
combination of the following conditions:
1. Logging a. with primary pristine and dense young
2. Major wood processing projects 3. growth;
Introduction of fauna (exoticanimals) b. adjoining mouth of major river
in systems;
public/private forests c. near or adjacent to traditional
4. Forest occupancy productive fry or fishing grounds;
5. Extraction of mangrove products d. which act as natural buffers against
6. Grazing shore erosion, strong winds and storm floods;
c. Fishery Projects e. on which people are dependent for
1. Dikes for/and fishpond development their livelihood.
projects 12. Coral reefs, characterized by one or any
combinations of the following conditions:
III. Infrastructure Projects a. with 50% and above live coralline
a. Major dams cover;
b. spawning and nursery grounds for operation of fishpens, fish enclosures, fish corrals and
fish; the like.
c. which act as natural breakwater of
coastlines. SEC. 3. Collection of Fees. The Authority is hereby
Environmentally Non-Critical Projects. All other empowered to collect fees for the use of the lake water
projects, undertakings and areas not declared by the and its tributaries for all beneficial purposes including
President as environmentally critical shall be but not limited to fisheries, recreation, municipal,
considered as non-critical and shall not be required to industrial, agricultural, navigation, irrigation, and waste
submit an environmental impact statement. The disposal purpose; Provided, that the rates of the fees to
National Environmental Protection Council, thru the be collected, and the sharing with other government
Ministry of Human Settlements may however require agencies and political subdivisions, if necessary, shall
non-critical projects and undertakings to provide be subject to the approval of the President of the
additional environmental safeguards as it may deem Philippines upon recommendation of the Authority's
necessary. Board, except fishpen fee, which will be shared in the
following manner: 20 percent of the fee shall go to the
The Artica Sports Dome in Langub does not come lakeshore local governments, 5 percent shall go to the
close to any of the projects or areas enumerated above. Project Development Fund which shall be administered
Neither is it analogous to any of them. It is clear, by a Council and the remaining 75 percent shall
therefore, that the said project is not classified as constitute the share of LLDA. However, after the
environmentally critical, or within an environmentally implementation within the three-year period of the
critical area. Consequently, the DENR has no choice Laguna Lake Fishery Zoning and Management Plan the
but to issue the Certificate of Non-Coverage. It sharing will be modified as follows: 35 percent of the
becomes its ministerial duty, the performance of which fishpen fee goes to the lakeshore local governments, 5
can be compelled by writ of mandamus, such as that percent goes to the Project Development Fund and the
issued by the trial court in the case at bar. remaining 60 percent shall be retained by LLDA;
Provided, however, that the share of LLDA shall form
part of its corporate funds and shall not be remitted to
Laguna Lake Development Authority vs CA the National Treasury as an exception to the provisions
RA 4850 was enacted creating the "Laguna Lake of Presidential Decree No. 1234.
Development Authority." This agency was supposed to Then came Republic Act No. 7160. The municipalities
accelerate the development and balanced growth of the in the Laguna Lake Region interpreted the provisions
Laguna Lake area and the surrounding provinces, cities of this law to mean that the newly passed law gave
and towns, in the act, within the context of the national municipal governments the exclusive jurisdiction to
and regional plans and policies for social and economic issue fishing privileges within their municipal waters
development. because R.A. 7160 provides:
PD 813 amended certain sections RA 4850 because of "Sec. 149. Fishery Rentals; Fees and Charges (a)
the concern for the rapid expansion of Metropolitan Municipalities shall have the exclusive authority to
Manila, the suburbs and the lakeshore towns of Laguna grant fishery privileges in the municipal waters and
de Bay, combined with current and prospective uses of impose rental fees or charges therefor in accordance
the lake for municipal-industrial water supply, with the provisions of this Section.
irrigation, fisheries, and the like. Municipal governments thereupon assumed the
To effectively perform the role of the Authority under authority to issue fishing privileges and fishpen
RA 4850, the Chief Executive issued EO 927 further permits. Big fishpen operators took advantage of the
defined and enlarged the functions and powers of the occasion to establish fishpens and fishcages to the
Authority and named and enumerated the towns, cities consternation of the Authority. Unregulated fishpens
and provinces encompassed by the term "Laguna de and fishcages occupied almost one-third the entire
Bay Region". Also, pertinent to the issues in this case lake water surface area, increasing the occupation
are the following provisions of EO 927 which include drastically from 7,000 ha in 1990 to almost 21,000 ha
in particular the sharing of fees: in 1995. The Mayor's permit to construct fishpens and
Sec 2: xxx the Authority shall have exclusive fishcages were all undertaken in violation of the
jurisdiction to issue permit for the use of all surface policies adopted by the Authority on fishpen zoning
water for any projects or activities in or affecting the and the Laguna Lake carrying capacity. In view of the
said region including navigation, construction, and foregoing circumstances, the Authority served notice
to the general public that:
1. All fishpens, fishcages and other aqua-culture Issue: Which agency of the Government - the LLDA
structures in the Laguna de Bay Region, which were or the towns and municipalities comprising the region -
not registered or to which no application for should exercise jurisdiction over the Laguna Lake and
registration and/or permit has been filed with Laguna its environs insofar as the issuance of permits for
Lake Development Authority as of March 31, 1993 fishery privileges is concerned?
are hereby declared outrightly as illegal.
2. All fishpens; fishcages and other aqua- Held: LLDA
culture structures so declared as illegal shall be subject
Ratio: Section 4 (k) of RA 4850, the provisions of PD
to demolition which shall be undertaken by the
813, and Section 2 of EO 927, specifically provide that
Presidential Task Force for illegal Fishpen and Illegal
the LLDA shall have exclusive jurisdiction to issue
Fishing.
permits for the use or all surface water for any projects
3. Owners of fishpens, fishcages and other
or activities in or affecting the said region, including
aqua-culture structures declared as illegal shall,
navigation, construction, and operation of fishpens, fish
without prejudice to demolition of their structures be
enclosures, fish corrals and the like. On the other hand,
criminally charged in accordance with Section 39-A
RA 7160 has granted to the municipalities the exclusive
of Republic Act 4850 as amended by P.D. 813 for
authority to grant fishery privileges in municipal
violation of the same laws. Violations of these laws
waters. The Sangguniang Bayan may grant fishery
carries a penalty of imprisonment of not exceeding 3
privileges to erect fish corrals, oyster, mussels or other
years or a fine not exceeding Five Thousand Pesos or
aquatic beds or bangus fry area within a definite zone
both at the discretion of the court.
of the municipal waters.
All operators of fishpens, fishcages and other
The provisions of RA7160 do not necessarily repeal the
aquaculture structures declared as illegal in
laws creating the LLDA and granting the latter water
accordance with the foregoing Notice shall have one
rights authority over Laguna de Bay and the lake region.
(1) month on or before 27 October 1993 to show cause
before the LLDA why their said fishpens, fishcages The Local Government Code of 1991 does not contain
and other aqua-culture structures any express provision which categorically expressly
should not be repeal the charter of the Authority. It has to be conceded
demolished/dismantled." that there was no intent on the part of the legislature to
repeal Republic Act No. 4850 and its amendments. The
One month, thereafter, the Authority sent notices to the repeal of laws should be made clear and expressed.
concerned owners of the illegally constructed fishpens,
fishcages and other aqua-culture structures advising It has to be conceded that the charter of the LLDA
them to dismantle their respective structures within 10 constitutes a special law. RA 7160 is a general law. It is
days from receipt thereof, otherwise, demolition shall basic is basic in statutory construction that the
be effected. enactment of a later legislation which is a general law
cannot be construed to have repealed a special law. It is
The fishpen owners filed injunction cases against the a well-settled rule in this jurisdiction that "a special
LLDA. The LLDA filed motions to dismiss the cases statute, provided for a particular case or class of cases,
against it on jurisdictional grounds. The motions to is not repealed by a subsequent statute, general in its
dismiss were denied. Meanwhile, TRO/writs of terms, provisions and application, unless the intent to
preliminary mandatory injunction were issued repeal or alter is manifest, although the terms of the
enjoining the LLDA from demolishing the fishpens and general law are broad enough to include the cases
similar structures in question. Hence, the present embraced in the special law." Where there is a conflict
petition for certiorari, prohibition and injunction. The between a general law and a special statute, the special
CA dismissed the LLDAs consolidated petitions. It statute should prevail since it evinces the legislative
ruled that (A) LLDA is not among those quasi-judicial intent more clearly that the general statute. The special
agencies of government appealable only to the Court of law is to be taken as an exception to the general law in
Appeals; (B) the LLDA charter does vest LLDA with the absence of special circumstances forcing a contrary
quasi-judicial functions insofar as fishpens are conclusion. This is because implied repeals are not
concerned; (C) the provisions of the LLDA charter favored and as much as possible, given to all
insofar as fishing privileges in Laguna de Bay are enactments of the legislature. A special law cannot be
concerned had been repealed by the Local Government repealed, amended or altered by a subsequent general
Code of 1991; (D) in view of the aforesaid repeal, the law by mere implication.
power to grant permits devolved to respective local
government units concerned.
Considering the reasons behind the establishment of sustainable development of the region with due regard
the Authority, which are enviromental protection, to the inter-generational use of its resources by the
navigational safety, and sustainable development, inhabitants in this part of the earth. The authors of
there is every indication that the legislative intent is Republic Act 4850 have foreseen this need when they
for the Authority to proceed with its mission. passed this LLDA law-the special law designed to
govern the management of our Laguna de Bay lake
We are on all fours with the manifestation of LLDA resources. Laguna de Bay therefore cannot be
that "Laguna de Bay, like any other single body of subjected to fragmented concepts of management
water has its own unique natural ecosystem. The 900 policies where lakeshore local government units
km lake surface water, the 8 major river tributaries and exercise exclusive dominion over specific portions of
several other smaller rivers that drain into the lake, the the lake water. The implementation of a cohesive and
2,920 km2 basin or watershed transcending the integrated lake water resource management policy,
boundaries of Laguna and Rizal provinces, constitute therefore, is necessary to conserve, protect and
one integrated delicate natural ecosystem that needs to sustainably develop Laguna de Bay."
be protected with uniform set of policies; if we are to
be serious in our aims of attaining sustainable The power of the LGUs to issue fishing privileges was
development. This is an exhaustible natural resource- clearly granted for revenue purposes. This is evident
a very limited onewhich requires judicious from the fact that Section 149 of the New Local
management and optimal utilization to ensure Government Code empowering local governments to
renewability and preserve its ecological integrity and issue fishing permits is embodied in Chapter 2, Book
balance. Managing the lake resources would mean the II, of Republic Act No. 7160 under the heading,
implementation of a national policy geared towards "Specific Provisions On The Taxing And Other
the protection, conservation, balanced growth and Revenue Raising Power of LGUs.
On the other hand, the power of the Authority to grant
permits for fishpens, fishcages and other aquaculture
structures is for the purpose of effectively regulating
and monitoring activities in the Laguna de Bay region
and for lake quality control and management. 6 It does
partake of the nature of police power which is the most
pervasive, the least limitable and the most demanding
of all State powers including the power of taxation.
Accordingly the charter of the Authority which
embodies a valid exercise of police power should
prevail over the Local Government Code of 1991 on
matters affecting Laguna de Bay.

There should be no quarrel over permit fees for


fishpens, fishcages and other aqua-culture structures in
the Laguna de Bay area. Section 3 of Executive Order
No. 927 provides for the proper sharing of fees
collected.

In respect to the question as to whether the Authority is


a quasi-judicial agency or not, it is our holding that,
considering the provisions of Section 4 of Republic Act
No. 4850 and Section 4 of Executive
Order No. 927, series of 1983, and the ruling of this
Court in Laguna Lake Development Authority vs.
Court of Appeals, there is no question that the
Authority has express powers as a regulatory a quasi-
judicial body in respect to pollution cases with
authority to issue a "cease a desist order" and on
matters affecting the construction of illegal fishpens,
fishcages and other aqua-culture structures in Laguna
de Bay. The Authority's pretense, however, that it is co-
equal to the Regional Trial Courts such that all actions
against it may only be instituted before the Court of
Appeals cannot be sustained. On actions necessitating
the resolution of legal questions affecting the powers
of the Authority as provided for in its charter, the
Regional Trial Courts have jurisdiction.

In view of the foregoing, this Court holds that Section


149 of RA 7160, otherwise known as the Local
Government Code of 1991, has not repealed the
provisions of the charter of the LLDA, Republic Act
No. 4850, as amended. Thus, the Authority has the
exclusive jurisdiction to issue permits for the
enjoyment of fishery privileges in Laguna de Bay to the
exclusion of municipalities situated therein and the
authority to exercise such powers as are by its charter
vested on it.

PRESIDENTIAL DECREE No. 1586:


ESTABLISHING AN ENVIRONMENTAL
IMPACT STATEMENT SYSTEM,
INCLUDING OTHER ENVIRONMENTAL
MANAGEMENT RELATED
MEASURES AND FOR OTHER PURPOSES

WHEREAS, the pursuit of a comprehensive and balance between socio-economic growth and
integrated environment protection program environmental protection.
necessitates the establishment and institutionalization
of a system whereby the exigencies of socio-economic Section 2. Environmental Impact Statement System.
undertakings can be reconciled with the requirements There is hereby established an Environmental Impact
of environmental quality; Statement System founded and based on the
environmental impact statement required, under
WHEREAS, the regulatory requirements of Section 4 of Presidential Decree No. 1151, of all
environmental Impact Statements and Assessments agencies and instrumentalities of the national
instituted in pursuit of this national environmental government, including government-owned or
protection program have to be worked into their full controlled corporations, as well as private
regulatory and procedural details in a manner corporations, firms and entities, for every proposed
consistent with the goals of the program. project and undertaking which significantly affect the
quality of the environment.
NOW, THEREFORE, I, FERDINAND E. MARCOS,
President of the Philippines, by virtue of the powers Section 3. Determination of Lead Agency. The
vested in me by the Constitution do hereby order and Minister of Human Settlements or his designated
declare: representative is hereby authorized to name the lead
agencies referred to in Section 4 of Presidential Decree
Section 1. Policy. It is hereby declared the policy of No. 1151 which shall have jurisdiction to undertake the
the State to attain and maintain a rational and orderly preparation of the necessary environmental impact
statements on declared environmentally critical
projects and areas. All Environmental Impact financial support to government offices and
Statements shall be submitted to the National instrumentalities placed under its supervision pursuant
Environmental Protection Council for review and to this Decree financed from its existing appropriation
evaluation. or from budgetary augmentation as the Minister of
Human Settlements may deem necessary.
Section 4. Presidential Proclamation of
Environmentally Critical Areas and Projects. The Section 8. Rules and Regulations. The National
President of the Philippines may, on his own initiative Environmental Protection Council shall issue the
or upon recommendation of the National necessary rules and regulations to implement this
Environmental Protection Council, by proclamation Decree. For this purpose, the National Pollution
declare certain projects, undertakings or areas in the Control Commission may be availed of as one of its
country as environmentally critical. No person, implementing arms, consistent with the powers and
partnership or corporation shall undertake or operate responsibilities of the National Pollution Control
any such declared environmentally critical project or Commission as provided in P.D. No. 984.
area without first securing an Environmental
Compliance Certificate issued by the President or his Section 9. Penalty for Violation. Any person,
duly authorized representative. For the proper corporation or partnership found violating Section 4 of
management of said critical project or area, the this Decree, or the terms and conditions in the issuance
President may by his proclamation reorganize such of the Environmental Compliance
government offices, agencies, institutions, Certificate, or of the standards, rules and regulations
corporations or instrumentalities including the issued by the National Environmental Protection
realignment of government personnel, and their Council pursuant to this Decree shall be punished by
specific functions and responsibilities. the suspension or cancellation of his/its certificate or
and/or a fine in an amount not to exceed Fifty
For the same purpose as above, the Ministry of Human Thousand Pesos (P50,000.00) for every violation
Settlements shall: (a) prepare the proper land or water thereof, at the discretion of the National Environmental
use pattern for said critical project(s) or area (s); (b) Protection Council.
establish ambient environmental quality standards; (c)
develop a program of environmental enhancement or Section 10. Environmental Revolving
protective measures against calamituous factors such Fund. Proceeds from the penalties prescribed in the
as earthquake, floods, water erosion and others, and (d) preceding Section 9 and other penalties imposed by the
perform such other functions as may be directed by the National Pollution Control Commission as authorized
President from time to time. in P.D. 984, shall be automatically appropriated into an
Environment Revolving Fund hereby created as an
Section 5. Environmentally Non-Critical Projects. All exemption to P.D. 711 and P.D. 1234. The fund shall
other projects, undertakings and areas not declared by be used exclusively for the operation of the National
the President as environmentally critical shall be Environmental Protection Council and the National
considered as non-critical and shall not be required to Pollution Control Commission in the implementation
submit an environmental impact statement. The of this Decree. The rules and regulations for the
National Environmental Protection Council, thru the utilization of this fund shall be formulated by the
Ministry of Human Settlements may however require Ministry of Human Settlements and submitted to the
non-critical projects and undertakings to provide President for approval.
additional environmental safeguards as it may deem
necessary. Section 11. Repealing Clause. The Inter-Agency
Advisory Council of the National Pollution Control
Section 6. Secretariat. The National Environmental Commission created under Section 4 of P.D. 984 is
Protection Council is hereby authorized to constitute hereby abolished and its powers and responsibilities
the necessary secretariat which will administer the are forthwith delegated and transferred to the Control
Environmental Impact Statement System and of the National Environmental Protection Council.
undertake the processing and evaluation of
environmental impact statements. All other laws, decrees, executive orders, rules and
regulations inconsistent herewith are hereby repealed,
Section 7. Management and Financial amended or modified accordingly.
Assistance. The Ministry of Human Settlements is
hereby authorized to provide management and
DENR Administrative Order No. 2003- 30 effective, and (3) that , social acceptability is based on
SUBJECT: Implementing Rules and Regulations informed public
(IRR) for the Philippine Environmental Impact participation;
Statement (EIS) System
e. Effective regulatory review of the EIS
Consistent with the continuing effort of the depends largely on timely full; and accurate disclosure
Department of Environment and Natural Resources of relevant: information by project proponents and,
(DENR) to rationalize and streamline the other stakeholders in the EIA process
implementation of the Philippine Environmental f. The social acceptability of a project is a result
Impact Statement (EIS) System established under of meaningful public participation, which shall be
Presidential Decree (PD) No. 1586, Presidential assessed as part of the Environmental Compliance
Proclamation No. 2146 defining the scope of the EIS Certificate (ECC) application, based on concerns
System and pursuant to Administrative Order No. 42 related to the project's environmental impacts;
issued by tile Office of the President on November 2,
2002, the following rules and regulations are hereby g. The timelines prescribed by this Order, within
promulgated; which an Environmental - Compliance Certificate
must be issued, or denied, apply only to processes and
ARTICLE I actions within the Environmental Management
BASIC POLICY, OPERATING PRINCIPLES, Bureau's (EMB) control and do not include actions or
OBJECTIVES activities that are the responsibility of the proponent.
AND DEFINITION
OF TERMS Section 2. Objective

Section 1. Basic Policy and Operating Principles The objective of this Administrative Order is to
rationalize and streamline the EIS System to make it
Consistent with the principles of sustainable more effective as a project planning and management
development, it is the policy of the DENR to tool by:
implement a systems-oriented and integrated approach
to the LIS system to ensure a rational balance between a. Making the System more responsive to the
socio-economic development and environmental demands and needs of the project proponents and the
protection for the benefit of present and future various stakeholders;
generations. b. Clarifying the, coverage of the System and
The following are the key operating principles in the updating it to take into consideration industrial and
implementation of the Philippine EIS System: technological innovations and trends

a. The EIS System is concerned primarily with c. Standardizing requirements to ensure focus
assessing the direct and indirect impacts of a project on on critical environment parameters;
the biophysical and human environment and ensuring d. Simplifying procedures for processing ECC
that these impacts addressed by appropriate applications, and establishing measures to ensure
environmental protection and enhancement measures. adherence to ECC conditions by project proponents,
b. The EIS System aids proponents in and
incorporating environmental considerations in e. Assuring that critical environmental concerns
planning their projects as well as in determining the are addressed during project development and
environment's impact on their project. implementation
c. Project proponents are responsible for Section 3. Definition of Terms
determining and disclosing all relevant information
For the purpose of this Order, the following
necessary for a methodical ' assessment of the
definitions shall be applied;
environmental impacts of their projects;
a. Certificate, of Non-Coverage - a certification
d. The review of the EIS by EMB shall be
issued by the EMB certifying that, based on the
guided by three general criteria: (1) that environmental
submitted project description, the project is not
considerations are integrated into the overall project
covered by the
planning, (2) that the assessment is technically sound
EIS System and is not required to secure an ECC
and proposed environmental mitigation, measures are
b. Co-located projects / undertakings- projects, community's welfare. The process is undertaken by,
or series of similar projects or a project subdivided to among others, the project proponent and/or EIA
several phases and/or stages by the same proponent, Consultant, EMB, a Review Committee, affected
located in contiguous areas. communities and other stakeholders.
i. Environmental Impact Assessment
c Environment - Surrounding air, water (both ground Consultant - a professional or group of professionals
and surface), land, flora, fauna, humans and their commissioned by the proponent to prepare the EIS/IEE
interrelations. and other related documents. In some cases, the person
or group referred to may be the proponent's technical
d. Environmental Compliance Certificate
staff.
(ECC)- document issued by the DENR/EMB after a
positive review of an ECC application, certifying that j. Environmental Impact Assessment Review
based on the representations of the proponent, the Committee (EIARC) - a body of independent technical
proposed project or undertaking will not cause experts and professionals of known probity from
significant negative: environmental impact. The ECC various fields organized by the EMB to evaluate the
also certifies that the proponent has complied with all EIS and other related documents and to make
the requirements of the EIS System and has committed appropriate recommendations regarding the issuance
to implement its approved Environmental or non-issuance of an ECC.
Management Plan. The ECC contains specific
measures and conditions that the project proponent has k. Environmental Impact Statement (EIS) -
to undertake before and during the operation of a document, prepared and submitted by the project
project, and in some cases, during the project's proponent and/or EIA Consultant that serves as an
abandonment phase to mitigate identified application for an ECC. It is a comprehensive study of
environmental impacts. the significant impacts of a project on the environment.
It includes an Environmental Management
e. Environmentally Critical Area (ECA) - area Plan/Program that the proponent will fund and
delineated as environmentally sensitive such that implement to protect the environment
significant environmental impacts are expected if
certain types of proposed projects or programs are l. Environmental Management Plan/Program
located, developed or, implemented in it. (EMP) - section in the EIS that details the prevention,
mitigation, compensation, contingency and monitoring
f. Environmentally Critical Project (ECP) - measures to enhance positive impacts and minimize
project or program that has high potential for negative impacts and risks of a proposed project or
significant negative environmental impact. undertaking. For operating projects, the EMP can also
g. Environmental Guarantee Fund (EGF) - fund be derived from an EMS,
to be set up by a project proponent which shall be m. Environmental Management Systems (EMS)
readily accessible and disbursable for the immediate - refers to the EMB PEPP EMS as provided for under
cleanup or rehabilitation of areas affected by damages DAO 2003-14, which is a part of the overall
in the environment and the resulting deterioration of management system of a project or organization that
environmental quality as a direct consequence of a includes environmental policy, organizational
project's construction, operation or abandonment. It structure, planning activities, responsibilities,
shall likewise be used to compensate parties and practices, procedures, processes and resources for
communities affected by the negative impacts of the developing, implementing, achieving, reviewing and
project, and to fund community-based environment maintaining an improved overall environmental
related projects including, but not limited to, performance.
information and education and emergency
preparedness programs. n. Environmental Monitoring Fund (EMF) -
fund that a proponent shall set up after an ECC is
h. Environmental Impact Assessment (EIA) - issued for its project or undertaking, to be used to
process that involves evaluating and predicting the support the activities of the multi-partite monitoring
likely impacts of a project (including cumulative team. It shall be immediately accessible and easily
impacts) on the environment during construction, disbursable.
commissioning, operation and abandonment. It also
includes designing appropriate preventive, mitigating o. Environmental Performance - capability of
and enhancement measures addressing these proponents to mitigate environmental impacts of
consequences to protect the environment and the projects or programs.
p. Environmental Performance Report and nature, configuration, use of raw materials and natural
Management Plan (EPRMP) - documentation of the resources, production system, waste or pollution
actual cumulative environmental impacts and generation and control and the activities of a proposed
effectiveness of current measures for single projects project. It includes a description of the use of human
that are already operating but without ECC's, i.e., resources as well as activity timelines, during the pre-
Category A-3. For Category B-3 projects, a checklist construction, construction, operation and
form of the EPRMP would suffice. abandonment phases. It is to be used for reviewing co-
located and single projects under Category C, as well
q. Environmental Risk Assessment (ERA) - as for Category D projects.
assessment, through the use of universally accepted
and scientific methods, of risks associated with a Y. Project or Undertaking - any activity, regardless of
project. It focuses on determining the probability of scale or magnitude, which may have significant impact
occurrence of accidents and their magnitude (e.g. on the environment.
failure, of containment or exposure to hazardous
materials or situations.) z. Proponent - any natural or juridical person
intending to implement a project or undertaking.
r. EMS-based EMP - environmental
management plan based on the environmental aa. Public Participation - open, transparent,
management system (EMS) standard as defined in the gender-sensitive, and community based process aimed
DAO 2003-14. at ensuring the social acceptability of a project or
undertaking, involving the broadest range of
s. Initial Environmental Examination (IEE) stakeholders, commencing at the earliest possible
Report document similar to an EIS, but with reduced stage, of project design and development and
details and depth of assessment and discussion continuing until post-assessment monitoring.
bb. Procedural Review - phase in the ECC
t. Initial Environmental Examination (IEE) application review process to check for the
Checklist Report - simplified checklist version of an completeness the required documents, conducted by
IEE Report, prescribed by the DENR, to be filled up EIAM Division at the EMB Central Office or Regional
by a proponent to identify and assess a project's Office.
environmental impacts and the
mitigation/enhancement measures to address such cc. Process Industry - an industry whose project
impacts. operation stage involves chemical, mechanical or other
processes.
u. Multipartite Monitoring Team (MMT) -
community-based multi-sectoral team organized for dd. Scoping - the stage in the EIS System where
the purpose of monitoring the proponent's compliance information and project impact assessment
with ECC conditions, EMP and applicable laws, rules requirements are established to provide the proponent
and regulations. and the stakeholders the scope of work and terms of
reference for the EIS. ee. Secretary - the Secretary of
v. Programmatic Environmental Impact the DENR.
Statement (PEIS) - documentation of comprehensive
studies on environmental baseline conditions of a ff. Social Acceptability - acceptability of a
contiguous area. It also includes an assessment of the project by affected communities based on timely and
carrying capacity of the area to absorb impacts from informed participation in the EIA process particularly
colocated projects such as those in industrial estates or with regard to environmental impacts that are of
economic zones (ecozones), concern to them.

w. Programmatic Environmental Performance gg. Stakeholders - entities who may be directly


Report and Management Plan (PEPRMP) - and significantly affected by the project or
documentation of actual cumulative environmental undertaking.
impacts of collocated projects with proposals for
expansion. The PEPRMP should also describe the hh. Substantive Review - the phase in the EIA
effectiveness of current environmental mitigation process whereby the document submitted is subjected
measures and plans for performance improvement. to technical evaluation by the EIARC.

x. Project Description (PD) - document, which ii. Technology - all the knowledge, products,
may also be a chapter in an EIS, that describes the processes, tools, methods and systems employed in
the creation of goods or providing services.
ARTICLE II reversibility of the impact
ECC APPLICATION PROCESSING AND
APPROVAL PROCEDURES The following are the
categories of projects/undertakings
Section 4. Scope of the EIS System under the EIS system:

4.1 In general, only projects that pose Category A. Environmentally Critical Projects (ECPs)
potential significant impact to the with significant potential to cause negative
environment shall be required to secure environmental impacts
ECC's. In coordination with the Department
of Trade and Industry (DTI) and other Category B. Projects that are not categorized as ECPs,
concerned government agencies, the EMB is but which may cause negative environmental impacts
authorized to because they are located in Environmentally Critical
update or make appropriate revisions to the technical Areas (ECA's)
guidelines for EIS System implementation. Category C. Projects intended to directly enhance
4.2 The issuance of ECC or CNC for a environmental quality or address existing
project under the EIS System does not exempt environmental problems not falling under Category A
the proponent from securing other or B.
government permits and clearances as Category D. Projects unlikely to cause adverse
required by other laws. environmental impacts.
In determining the scope of the EIS System, two 4.4 Proponents of co-located or single projects that fall
factors are considered: (i) the nature of the project and under Category A and B are required to secure ECC.
its potential to cause significant negative For co-located projects, the proponent has the option
environmental impacts, and (ii) the sensitivity or to secure a Programmatic ECC. For ecozones, ECC
vulnerability of environmental resources in the project application may be programmatic based on submission
area. 4.3 The specific criteria for, determining projects of a programmatic EIS, or locator-specific based on
or undertakings to be covered by the EIS System are as submission of project EIS by each locator.
follows:
4.5 Projects under Category C are required submit
a. Characteristics of the project or undertaking Project Description.
Size of the project
Cumulative nature of impacts vis-a-vis: other 4.6 Projects classified under Category D may secure a
projects Use of natural resources CNC. The EMB-DENR, however, may require such,
Generation of waste and environment- projects or undertakings to provide additional
relatednuisance environmental safeguards as it may deem necessary.
Environment-related hazards and risk of ,
accidents
4.7 Projects/undertakings introducing new
b. Location of the Project technologies or construction technique but which may
Vulnerability of the project area to cause significant negative environmental impacts shall
disturbances due to its ecological importance, be required to submit a Project Description Which will
endangered or protected status be used as basis by EMB for screening the project and
Conformity of the proposed project to determining its category.
existing land use, based on approved zoning Section 5. Requirements for Securing
or on national laws and regulations Environmental Compliance Certificate (ECC) and
Relative abundance, quality and regenerative Certificate of Non-Coverage (CNC)
capacity of natural resources in the area,
including the impact absorptive capacity of 5.1 Documentary Requirements for Proponents ECC
the environment processing requirements shall focus on information
needed to assess critical environmental impacts of
c. Nature of the potential impact projects. Processing requirements shall be customized
Geographic extent of the impact and size of based on the project categories.
affected population
Magnitude and complexity of the impact The total maximum processing time reckons from the
acceptance of the ECC/CNC application for
Likelihood, duration, frequency, and
substantive review up to the issuance of the decision 5.2.3. Programmatic Environmental Impact
Statement (PEIS)
5.2 Forms and Contents of EIA Study Reports and
Other Documents Required Under the EIS System The PEIS shall contain the following:
The following are the different forms of EIA study a. Executive Summary;
reports and documents required under the EIS System. b. Project Description;
DENR employees are prohibited from taking part in c. Summary matrix of scoping agreements as validated
the preparation of such documents. by EMB;
The DENR/EMB shall limit to a maximum of two (2) d. [-co-profiling of air, land, water, and relevant people
official requests (in writing) to the project proponent aspects;
for additional information, which shall be made within e. Environmental carrying capacity analysis;
the first 75% of the processing timeframe shown in f. Environmental Risk Assessment (if found necessary
Section 5.1.1. during scoping);
g. Environmental Management Plan to include
5.2.1. Environmental Impact Statement (EIS).
allocation scheme for discharge of pollutants;
The EIS should contain at least the following: criteria for acceptance of locators, environmental
management guidebook for locators, and
a. EIS Executive Summary; environmental liability scheme;
b. Project Description; h. Duties of the Environmental Management Unit to be
c. Matrix of the scoping agreement identifying critical created;
issues and concerns, as validated by EMB; i. Proposals for Environmental Monitoring &
d. Baseline environmental conditions focusing on the Guarantee Funds and terms of reference for the
sectors (and resources) most significantly affected Multi-partite Monitoring Team, and
by the proposed action; j. Other supporting documents and clearances that
e. Impact assessment focused on significant may be agreed during the scoping.
environmental impacts (in relation to project
construction/commissioning, operation and 5.2.4. Programmatic Environmental Performance
decommissioning), taking into account cumulative Report and Management Plan (PEPRMP).
impacts;
The PEPRMP shall contain the following:
f. Environmental Risk Assessment if determined by
EMB as necessary during scoping; a. Project Description of the co-located projects;
g. Environmental Management Program/Plan; b. Documentation of the actual environmental
h. Supporting documents; including technical/socio- performance based on current/past environmental
economic data used/generated; certificate of zoning management measures implemented, and
viability and municipal land use plan; and proof of c. An EMP based on an environmental management
consultation with stakeholders; system framework and standard set by EMB.
i. Proposals for Environmental Monitoring and
Guarantee Funds including justification of amount, 5.2.5. Environmental Performance Report and
when required; Management Plan
j. Accountability statement of EIA consultants and the
project proponent; and The EPRMP shall contain the following:
k. Other clearances and documents that may be a. Project Description;
determined and agreed upon during scoping. b. Baseline conditions for critical environmental
parameters;
5.2.2. Initial Environmental Examination (IEE) c. Documentation of the environmental
Report performance based on the current/past environmental
IEE Report is similar to an EIS, but with reduced management measures implemented;
details of data and depth of assessment and discussion. d. Detailed comparative, description of the
It may be customized for different types of projects proposed project expansion and/or process
under Category B. The EMB shall coordinate with modification with corresponding material and energy
relevant government agencies and the private sector to balances in the case of process industries,
customize and update IEE Checklists to further e. EMP based on an environmental management
streamline ECC processing, especially for small and
system framework and standard set by EMB. 5.2.6.
medium enterprises.
Project Description (PD)
The PD shall be guided by the definition of terms and e. EMP based on an environmental management
shall contain the following: and update IEE Checklists
system framework and standard set by EMB. 5.2.6.
to further streamline ECC processing, especially for
small and medium enterprises. Project Description (PD)

5.2.3. Programmatic Environmental Impact The PD shall be guided by the definition of terms and
Statement (PEIS) shall contain the following:
The PEIS shall contain the following:
a. Executive Summary; a. Description of the project;
b. Project Description; b. Location and area covered;
c. Summary matrix of scoping agreements as validated c. Capitalization and manpower requirement;
by EMB; d. For process industries, a listing of raw materials to
d. [-co-profiling of air, land, water, and relevant people be used, description of the process or manufacturing
aspects; technology, type and volume of products and
e. Environmental carrying capacity analysis; discharges:
f. Environmental Risk Assessment (if found necessary e. For Category C projects, a detailed description on
during scoping); how environmental efficiency and overall
g. Environmental Management Plan to include performance improvement will be attained, or how
allocation scheme for discharge of pollutants; an existing environmental problem will be
criteria for acceptance of locators, environmental effectively solved or mitigated by the project, and
management guidebook for locators, and f. A detailed location map of the impacted site
environmental liability scheme; showing relevant features (e.g. slope, topography,
h. Duties of the Environmental Management Unit to be human settlements).
created; g. Timelines for construction and commissioning .
i. Proposals for Environmental Monitoring &
Guarantee Funds and terms of reference for the 5.2.7. EMS-based EMP.
Multi-partite Monitoring Team, and The EMS-based EMP is an option that proponents may
j. Other supporting documents and clearances that undertake in lieu of the EPRMP for single projects
may be agreed during the scoping. applying for ECC under Category A-3 and B-
5.2.4. Programmatic Environmental Performance 3.
Report and Management Plan (PEPRMP).
5.3 Public Hearing 1 Consultation
The PEPRMP shall contain the following: Requirements
a. Project Description of the co-located projects; For projects under Category A-1, the conduct of public
b. Documentation of the actual environmental hearing as part of the EIS review is mandatory unless
performance based on current/past environmental otherwise determined by EMB. For all other
management measures implemented, and undertakings, a public hearing is not mandatory unless
c. An EMP based on the environmental management
specifically required by EMB.
system framework and standard set by EMB. Proponents should initiate - public consultations early
5.2.5. Environmental Performance Report and in order to ensure that environmentally relevant
Management Plan (EPRMP) concerns of stakeholders are taken into consideration
in the EIA study and the formulation of the
The EPRMP shall contain the following: management plan, All public consultations and public
hearings conducted during the EIA process are to be
a. Project Description; documented. The public hearing/ consultation Process
b. Baseline conditions for critical environmental report shall be validated by the EMB/EMB RD and
parameters; shall constitute part of the records of the EIA process.
c. Documentation of the environmental performance 5.4 Documentation Requirements for
based on the current/past environmental DENREMB and EIA Reviewers
management measures implemented;
d. Detailed comparative, description of the proposed The EMB Central Office as well as the EMB Regional
project expansion and/or process modification with Offices shall document the proceedings of the ECC
corresponding material and energy balances in the application process and shall set up and maintain
case of process industries, relevant information management systems. The
documentation shall, at a minimum, include the Compliance Certificate or a Denial Letter. The ECC
following: shall contain the scope and limitations of the approved
activities, as well as conditions to ensure compliance
5.4.1. Review Process Report with the Environmental Management Plan. The ECC
This is to be prepared by the EMB Central or EMB RO. shall also specify the setting up of an EMF and EGF,
It is to be forwarded to the DENR Secretary or RD as if applicable. No ECC shall be released until the
reference for decision-making and maintained as part proponent has settled all liabilities, fines and other
of the records on the ECC application. The report obligations with DENR.
should contain at least the following:
A Denial Letter on the other hand shall specify the
a. Summary of the environmental impacts of the bases for the decision. The ECC or Denial Letter shall
undertaking, along with the proposed mitigation and be issued directly to the project proponent or its duly
enhancement measures; authorized representative, and receipt of the letter shall
b. Key issues/concerns and the proponent's response to be properly documented. The ECC of a project not
these; implemented within five years from its date of issuance
c. Documentation of compliance with procedural is deemed expired. The Proponent shall have to apply
requirements; for a new ECC if it intends to pursue the project. The
d. Acceptability of proposed EMP including the reckoning date of project implementation is the date of
corresponding cost of mitigation, EGF and EMF if ground breaking, based on the proponent's work plan
required; as submitted to the EMB.
e. Key bases for the decision on the ECC application.
Section 6. Appeal
5.4.2. EIARC Report Any party aggrieved by the final decision on the ECC
This report, to be prepared by the EIA Review / CNC applications may, within 15 days from receipt
Committee, forms part of the EIS review of such decision, file an appeal on the following
documentation. The EIARC Report shall be written by grounds:
the designated member of the EIARC and signed by all
the members within five days after the final review a. Grave abuse of discretion on the part of the deciding
meeting. If an EIARC member dissents, he or she must authority, or
submit a memorandum to the EMB Director through b. Serious errors in the review findings.
the EIARC Chairman his or her reasons for dissenting.
The DENR may adopt alternative conflict/dispute
At a minimum the EIARC report should contain; resolution procedures as a means to settle grievances
between proponents and aggrieved parties to avert
a. Detailed assessment of the proposed unnecessary legal action. Frivolous appeals shall not
mitigationand enhancement measures for the be countenanced.
identified environmental impacts and risks;
b. Description of residual or unavoidable The proponent or any stakeholder may file an appeal to
environmental impacts despite proposed the following:
mitigation measures;
c. Documentation of Deciding Authority Where to file the appeal
compliance with EMB Regional Office Director Office of the EMB
technical/substantive review criteria; Director
d. Key issues/concerns and the proponent's EMB Central Office Office of the DENR Secretary
response to these, including social acceptability DENR Secretary Office of the President
measures; Section 7. The EIA Process in Relation to the
e. Assessment of the proposed EMP (including Project Planning Cycle
risk reduction/management plan) and amounts Proponents are directed under AO 42 to conduct
proposed for the Environmental Guarantee Fund simultaneously the environmental impact study and
and the the project planning or feasibility study. EMB may
Environmental Monitoring Fund, and validate whether or not the EIS was integrated with
f. Recommended decision regarding the ECC project planning by requiring relevant documentary
application as well as proposed ECC conditions. proofs, such as the terms of reference for the feasibility
study and copies of the feasibility study report.
5.4.3. Decision Document
This is an official letter regarding the decision on the
application. It may be in the form of an Environmental
The EMB shall study the potential application of EIA 8.3 Amending an ECC
to policy-based undertakings as a further step toward Requirements for processing ECC amendments shall
integrating and streamlining the EIS system. depend on the nature of the request but shall be focused
on the information necessary to assess the
Section 8. EIS System Procedures environmental impact of such changes.
8.1 Manual of Procedures
8.3.1. Requests for minor changes to ECCs such as
8.1.1. The procedures to enable the processing of extension of deadlines for submission of post-ECC
ECCICNC applications within the timeframes, requirements shall be decided upon by the endorsing
specified in AO 42 shall be prescribed in a Procedural authority.
Manual to be issued by the EMB Central Office within 8.3.2. Requests for major changes to ECCs shall be
ninety (90) days from the date of this Order. decided upon by the deciding authority.
8.1.2. The Manual of Procedures shall be updated as 8.3.3. For ECCs issued pursuant to an IEE or IEE
the need arises to continually shorten the review and checklist, the processing of the amendment application
approval/denial timeframes where feasible. shall not exceed thirty (30) working days; and for
Formulation of said procedures shall conform to the ECCs issued pursuant to an EIS, the processing shall
following guidelines; not exceed sixty (60) working days. Provisions on
automatic approval related to prescribed timeframes
8.2 Processing Timeframe
under AO 42 shall also apply for the processing of
8.2.1. If no decision is made within the specified applications to amend ECCs.
timeframe, the ECC/CNC application is deemed
Section 9. Monitoring of Projects with ECCs Post
automatically approved and the approving authority
ECC monitoring of projects shall follow these
shall issue the ECC or CNC within five (5) working
guidelines. Other details on requirements for
days after the prescribed processing timeframe has
monitoring of projects with ECCs shall be stipulated in
lapsed. However, the EMB may deny issuance of ECC
a procedural manual to be formulated by EMB.
if the proponent fails to submit required additional
information critical to deciding on the ECC/CNC 9.1 Multipartite Monitoring Team For projects
application, despite written request from EMB and under Category A, a multi-partite monitoring team
despite an adequate period for the proponent to comply (MMT) shall be formed immediately after the issuance
with the said requirement; of an ECC. Proponents required to establish an MMT
8.2.2. In cases where ECC issuance cannot be decided shall put up an Environmental Monitoring Fund (EMF)
due to the proponent's inability to submit required not later than the initial construction phase of the
additional information within the prescribed period, project.
the EMB shall return the application to the proponent.
The project proponent may resubmit its application, The MMT shall be composed of representatives of the
including the required additional information, within proponent and of stakeholder groups, including
one (1) year for Category A projects and six (6) months representatives from concerned LGU's, locally
for Category B projects without having to pay accredited NGOs/POs, the community, concerned
processing and other fees. Otherwise, the matter shall EMB Regional Office, relevant government agencies,
be treated as a new application. and other sectors that may be identified during the
negotiations.
8.2.3. In cases where EMB and the project proponent
have exhausted all reasonable efforts to generate the The team shall be tasked to undertake monitoring of
information needed for deciding on the ECC/CNC compliance with ECC conditions as well as the EMP.
application, the responsible authority (Secretary or The MMT shall submit a semi-annual monitoring
EMB Director/ Regional Director), shall make a report within January and July of each year.
decision based on the available information so as to
comply with the prescribed timeframe. The decision The EMB shall formulate guidelines for
shall nonetheless reflect a thorough assessment of operationalizing area-based or cluster-based MMT.
impacts taking into The Bureau may also develop guidelines for
consideration (i) the significance of environmental delegating, monitoring responsibilities to other
impacts and risks; (ii) the carrying capacity of the relevant government agencies as may be deemed
environment; (iii) equity issues with respect to use of necessary. For projects whose significant
natural resources, (iv) and the proponent's environmental impacts do not persist after the
commitment, to institute effective environmental construction phase or whose impacts could be
management measures. addressed through other regulatory means or through
the mandates of other government agencies, the The DENR-EMB shall conduct regular consultations
operations of MMT may be terminated immediately with DTI and other pertinent government agencies,
after construction or after a reasonable period during affected industry groups and other stakeholders on
implementation. continually streamlining the processing of ECC
9.2 Self-monitoring and Third Party Audit The applications and post ECC implementation to fulfill
proponent shall also conduct regular selfmonitoring of the policy and objectives of this administrative order.
specific parameters indicated in the EMP through its
environmental unit. The proponent's environmental The President shall be apprised of the issues raised as
unit shall submit a semi-annual monitoring report well as the actions taken by DENR to address these
within January and July of each year. issues whenever necessary.

For projects with ECCs issued based on a PEPRMP, Section 11. Information Systems Improvement The
EPRMP, or an EMS-based EMP, a third party audit information system on the EIS System implementation
may be undertaken by a qualified environmental or shall be improved for the effective dissemination of
EMS auditor upon the initiative of the proponent and information to the public. The information system
in lieu of forming an MMT. The said proponent shall shall include regular updating of the status of ECC
submit to EMB a copy of the audit findings and shall applications through a website and through other
be held accountable for the veracity of the report. The means.
EMB may opt to validate the said report.
Section 12. Accreditation System
9.3 Environmental Guarantee Fund An To enhance the quality of the EIS submitted to the
Environmental Guarantee Fund (EGF) shall be DENR/EMB, the EMB shall establish an accreditation
established for all co-located or single projects that system for individual professionals, academic and
have been determined by DENR to pose a significant professional organizations that can be tapped to train
public risk or where the project requires rehabilitation professionals in conducting EIA using training
or restoration. An EGF Committee shall be formed to modules approved by EMB.
manage the fund. It shall be composed of
The EMB shall also work with DTI-BPS for an
representatives from the EMB Central Office, EMB
accreditation system for environmental and EMS
Regional Office, affected communities, concerned
auditors, consistent with provisions of DAO 2003-14
LGUs, and relevant government agencies identified by
on the Philippine Environmental Partnership Program.
EMB.
Section 13. Creation of an HAM Division and
An integrated MOA on the MMT-EMF-EGF shall be
Strengthening of Review and Monitoring
entered into among the EMB Central Office, EMB
Capability
Regional Office, the proponent, and representatives of
concerned stakeholders. In order to effectively implement the provisions of this
administrative order, the current EIA ad hoc division
9.4 Abandonment at the EMB Central Office and the EMB Regional
For projects that shall no longer be pursued, the Offices that are primarily in-charge of processing ECC
proponent should inform EMB to relieve the former applications and post-ECC monitoring shall be
from the requirement for continued compliance with converted to a full-pledged Environmental Impact
the ECC conditions. For projects that have already Assessment and Management Division (EIAMD). The
commenced implementation, an Division shall have the following structure and
abandonment/decommissioning plan shall be functions:
submitted for approval by EMB at least six (6) months
13.1 The EIA Evaluation Section shall be in charge of
before the planned abandonment/decommissioning.
screening projects for coverage under the EIS System,
The implementation of the plan shall be verified by
EMB. EIS Scoping, and evaluation of EIS's and IEE's
submitted for ECC issuance. It shall have three units
ARTICLE Ill responsible, respectively, for screening for coverage,
STRENGTHENING THE IMPLEMENTATION EIS Scoping, and evaluation of ECC applications. The
OF EMB may commission independent professionals,
THE PHILIPPINE EIS experts from the academe and representatives from
SYSTEM relevant government agencies as members of the EIA
Review Committee as may be deer 31d necessary.
Section 10. Coordination with other Government Further, continual improvement of the technical
Agencies and other Organizations
capability of the Staff of the EIA Division shall be The EMB Director or the EMB-RD may issue a Cease
undertaken. and Desist Order (CDO) based on violations under the
Philippine EIS System to prevent grave or irreparable
13.2 The Impact Monitoring and Validation Section damage to the environment. Such CDO shall be
shall be in charge of monitoring compliance to ECC effective immediately. An appeal or any motion
conditions and implementation of the Environmental seeking to lift the CDO shall not stay its effectivity.
Management Program (EMP): The unit shall also However, the DENR shall act on such appeal or motion
validate actual impacts as a basis for evaluating within ten (10) working days from filing.
environmental performance and effectiveness of the
EMP. The EMB may publish the identities of firms that are
in violation of the EIA Law and its Implementing
13.3 In the EMB Central Office, there shall be a Rules and Regulations despite repeated Notices of
Systems Planning and Management Section. It shall Violation and/or Cease and Desist Orders.
ensure that a continually improving systems-oriented
and integrated approach is followed in implementing Section 17. Transitory Provisions
the Philippine EIS System vis-a-vis national The DENR may extend reprieve to proponents of
development programs. The section shall have two projects operating without ECC (Categories A-3 and
units responsible for specific systems level concerns: B-3) from penalties specified in PD 1586 upon
(1) Project Level Systems Planning and Management registration with the EMB Central Office. An
Unit; and (2) Program and Policy Level Systems Environmental Performance Report and Management
Planning and Management Unit. This section shall also Plan (EPRMP) shall be submitted as a requirement for
be responsible for technical coordination with the EIA such ECC application within six months from the
Division in the different EMB Regional Offices. signing of this Administrative order.

The organizational structure of the EMB Central During the period that that the Procedural Manual and
Office is in Annex 1. other necessary guidelines are being prepared, existing
guidelines which are consistent with the provisions of
ARTICLE 1V this Order shall remain in effect. Adequate resources
MISCELLANEOUS PROVISIONS shall be provided for the formulation of the Procedural
Manual and for the effective implementation of this
Section 14. Budget Allocation For the effective
Order.
implementation of this order, adequate funding should
be provided under the annual General Appropriations Section 18. Repealing Clause
Act. This Order hereby supersedes Department
Administrative Order No. 96-37, Department
Per AU 42, the new position items for the EIA Division
Administrative Order No. 2000-37, DAO 2000-05 and
shall be created out of the existing budget and vacant
other related orders, which are inconsistent herewith.
position items within the government service, which
shall be reclassified accordingly.

Section 15. Fees


All proponents, upon submission of the IEEIEIS and
application for amendment, shall pay filing fees and
other charges in accordance with prescribed standard
costs and fees set by EMB in relation to the
implementation of the Philippine EIS System, as
shown in Annex 2.

The proponent shall shoulder the cost of reviewing the


EIS.

Section 16. Fines, Penalties And Sanctions The EMB


Central Office or Regional Office Directors shall
impose penalties upon persons or entities found
violating provisions of P.D. 1586, and its
Implementing Rules and Regulations. Details of the
Fines and Penalty Structure shall be covered by a
separate order.
C.A. No. 141 : AN ACT TO AMEND AND Sec. 6. The President, upon the recommendation of the
COMPILE Secretary of Agriculture and Commerce, shall from
THE LAWS RELATIVE TO LANDS OF THE time to time classify the lands of the public domain into
PUBLIC DOMAIN (a) Alienable or disposable;
(b) Timber, and
TITLE I (c) Mineral lands,
TITLE AND APPLICATION OF THE ACT, and may at any time and in a like manner transfer such
LANDS lands from one class to another, for the purposes of
TO WHICH IT REFERS, AND their administration and disposition.
CLASSIFICATION, Sec. 7. For the purposes of the administration and
DELIMITATION, AND SURVEY - THEREOF disposition of alienable or disposable public lands, the
FOR President, upon recommendation by the Secretary of
CONCESSION Agriculture and Commerce, shall from time to time
declare what lands are open to disposition or
CHAPTER I concession under this Act. Sec. 8. Only those lands
SHORT TITLE OF THE ACT, LANDS TO shall be declared open to disposition or concession
WHICH IT which have been officially delimited and classified
APPLIES, AND OFFICERS CHARGED WITH and, when practicable, surveyed, and which have not
ITS EXECUTION been reserved for public or quasi-public uses, nor
appropriated by the Government, nor in any manner
Sec. 2. The provisions of this Act shall apply to the become private property, nor those on which a private
lands of the public domain; but timber and mineral right authorized and recognized by this Act or any
lands shall be governed by special laws and nothing in other valid law may be claimed, or which, having been
this Act provided shall be understood or construed to reserved or appropriated, have ceased to be so
change or modify the administration and disposition of However, the President may, for reasons of public
the lands commonly called friar lands and those interest, declare lands of the public domain open to
which, being privately owned, have reverted to or disposition before the same have had their boundaries
become the property of the Commonwealth of the established or been surveyed, or may, for the same
Philippines, which administration and disposition shall reason, suspend their concession or disposition until
be governed by the laws at present in force or which they are again declared open to concession or
may hereafter be enacted. disposition by proclamation duly published or by Act
Sec. 3. The Secretary of Agriculture and Commerce of the National Assembly. Sec. 9. For the purpose of
shall be the executive officer charged with carrying out their administration and disposition, the lands of the
the provisions of this Act through the Director of public domain alienable or open to disposition shall be
Lands, who shall act under his immediate control. Sec. classified, according to the use or purposes to which
4. Subject to said control, the Director of Lands shall such lands are destined, as follows:
have direct executive control of the survey, (a) Agricultural
classification, lease, sale or any other form of (b) Residential commercial industrial or for similar
concession or disposition and management of the lands productive purposes
of the public domain, and his decisions as to questions (c) Educational, charitable, or other similar
of fact shall be conclusive when approved by the purposes(d) Reservations for town sites and for
Secretary of Agriculture and Commerce. Sec. 5. The public and quasi-public uses.
Director of Lands, with the approval of the Secretary The President, upon recommendation by the Secretary
of Agriculture and Commerce shall prepare and issue of Agriculture and Commerce, shall from time to time
such forms, instructions, rules, and regulations make the classifications provided for in this section,
consistent with this Act, as may be necessary and and may, at any time and in a similar manner, transfer
proper to carry into effect the provisions thereof and lands from one class to another. Sec. 10. The words
for the conduct of proceedings arising under such alienation, disposition, or concession as used in
provisions. this Act, shall mean any of the methods authorized by
this Act for the acquisition, lease, use, or benefit of the
CHAPTER II lands of the public domain other than timber or mineral
CLASSIFICATION, DELIMITATION, AND lands.
SURVEY
OF LANDS OF THE PUBLIC DOMAIN, FOR TITLE II
THE CONCESSION THEREOF AGRICULTURAL PUBLIC LANDS
CHAPTER III
FORMS OF CONCESSION OF either cancel the application or grant an extension of
AGRICULTURAL time not to exceed one hundred and twenty days for the
LANDS payment of the sum due.
Sec. 16. If at any time before the expiration of the
Sec. 11. Public lands suitable for agricultural purposes period allowed by law for the making of final proof, it
can be disposed of only as follows, and not otherwise: shall be proven to the satisfaction of the Director of
(1) For homestead settlement Lands, after due notice to the homesteader, that the
(2) By sale land entered is under the law not subject to homestead
(3) By lease entry, or that the homesteader has actually changed his
(4) By confirmation of imperfect or incomplete titles: residence, or voluntarily abandoned the land for more
(a) By judicial legalization than six months at any one time during the years of
(b) By administrative legalization (free patent). Sec. residence and occupation herein required, or has
12. Any citizen of the Philippines over the age of otherwise failed to comply with the requirements of
eighteen years, or the head of a family, who does this Act, the Director of Lands may cancel the entry.
not own more than twenty-four hectares of land in Sec. 17. Before final proof shall be submitted by any
the Philippines or has not had the benefit of any person claiming to have complied with the provisions
gratuitous allotment of more than twenty-four of this chapter, due notice, as prescribed by the
hectares of land since the occupation of the Secretary of Agriculture and Commerce shall be given
Philippines by the United States, may enter a to the public of his intention to make such proof,
homestead of not exceeding twenty-four hectares stating therein the name and address of the
of agricultural land of the public domain. homesteader, the description of the land, with its
Sec. 13. Upon the filing of an application for a boundaries and area, the names of the witness by
homestead, the Director of Lands, if he finds that the whom it is expected that the necessary facts will be
application should be approved, shall do so and established, and the time and place at which, and the
authorize the applicant to take possession of the land name of the officer before whom, such proof will be
upon the payment of five pesos, Philippine currency, made.
as entry fee. Within six months from and after the date Sec. 18. In case the homesteader shall suffer from
of the approval of the application, the applicant shall mental alienation, or shall for any other reason be
begin to work the homestead, otherwise he shall lose incapacitated from exercising his rights personally, the
his prior right to the land. person legally representing him may offer and submit
Sec. 14. No certificate shall be given or patent issued the final proof on behalf of such incapacitated person.
for the land applied for until at least one-fifth of the Sec. 19. Not more than one homestead entry shall be
land has been improved and cultivated. The period allowed to any one person, and no person to whom a
within which the land shall be cultivated shall not be homestead patent has been issued by virtue of the
less than one or more than five years, from and after provisions of this Act regardless of the area of his
the date of the approval of the application. The original homestead, may again acquire a homestead;
applicant shall, within the said period, notify the Provided, however, That any previous homesteader
Director of Lands as soon as he is ready to acquire the who has been issued a patent for less than twenty-four
title. If at the date of such notice, the applicant shall hectares and otherwise qualified to make a homestead
prove to the satisfaction of the Director of Lands, that entry, may be allowed another homestead which,
he has resided continuously for at least one year in the together with his previous homestead shall not exceed
municipality in which the land is located, or in a an area of twenty-four hectares.
municipality adjacent to the same, and has cultivated Sec. 20. If at any time after the approval of the
at least one-fifth of the land continuously since the application and before the patent is issued, the
approval of the application, and shall make affidavit applicant shall prove to the satisfaction of the Director
that no part of said land has been alienated or of Lands that he has complied with all the requirements
encumbered, and that he has complied with all the of the law, but cannot continue with his homestead,
requirements of this Act, then, upon the payment of through no fault of his own, and there is a bona fide
five pesos, as final fee, he shall be entitled to a patent. purchaser for the rights and improvements of the
Sec. 15. At the option of the applicant, payment of the applicant on the land, and that the conveyance is not
fees required in this chapter may be made to the made for purposes of speculation, then the applicant,
municipal treasurer of the locality, who, in turn, shall with the previous approval of the Director of Lands
forward them to the provincial treasurer. In case of may transfer his rights to the land and improvements
delinquency of the applicant, the Director of Lands to any person legally qualified to apply for a
may, sixty days after such delinquency has occurred, homestead, and immediately after such transfer, the
purchaser shall file a homestead application for the preceding section may acquire or own agricultural
land so acquired and shall succeed the original public land or land of any other denomination or
homesteader in his rights and obligations beginning classification, which is at the time or was originally,
with the date of the approval of said application of the really or presumptively, of the public domain, or any
purchaser. Any person who has so transferred his permanent improvement thereon, or any real right on
rights may not again apply for a new homestead. Every such land and improvement: Provided, however, That
transfer made without the previous approval of the persons, corporations, associations or partnerships
Director of Lands shall be null and void and shall result which, at the date upon which the Philippine
in the cancellation of the entry and the refusal of the Constitution took effect, held agricultural public lands
patent. or land of any other denomination, that belonged
Sec. 21. Any non-Christian Filipino who has not originally, really or presumptively, to the public
applied for a home-stead, desiring to live upon or domain, or permanent improvements on such lands, or
occupy land on any of the reservations set aside for the a real right upon such lands and Constitution took
so-called non-Christian tribes may request a permit improvements, having acquired the same under the
of occupation for any tract of land of the public domain laws and regulations in force at the date of such
reserved for said non-Christian tribes under this Act, acquisition, shall be authorized to continue holding the
the area of which shall not exceed four hectares. It shall same as if such persons, corporations, associations, or
be an essential condition that the applicant for the partnerships were qualified under the last preceding
permit cultivate and improve the land, and if such section; but they shall not encumber, convey, or
cultivation has not been begun within six months from alienate the same to persons, corporations,
and after the date on which the permit was received, associations, or partnerships not included in section
the permit shall be cancelled. The permit shall be for a twenty-two of this Act, except by reason of hereditary
term of one year. If at the expiration of this term or at succession, duly legalized and acknowledged by
any time prior thereto, the holder of the permit shall competent courts. Sec. 24. Lands sold under the
apply for a homestead under the provisions of this provisions of this chapter must be appraised in
chapter, including the portion for which a permit was accordance with section one hundred and sixteen of
granted to him, he shall have the priority, otherwise the this Act. The Director of Lands shall announce the sale
land shall be again open to disposition at the expiration thereof by publishing the proper notice once a week for
of the permit. six consecutive weeks in the Official Gazette, and in
For each permit the sum of one peso shall be paid. two newspapers one published in Manila and the other
published in the municipality or in the province where
CHAPTER IV the lands are located, or in a neighboring province, and
SALE the same notice shall be posted on the bulletin board of
the Bureau Of Lands in Manila, and in the most
Sec. 22. Any citizen of lawful age of the Philippines,
conspicuous place in the provincial building and the
and any such citizen not of lawful age who is a head of
municipal building of the province and municipality,
a family, and any corporation or association of which
respectively, where the land is located, and, if
at least sixty per centum of the capital stock or of any
practicable, on the land itself; but if the value of the
interest in said capital stock belongs wholly to citizens
land does not exceed two hundred and forty pesos, the
of the Philippines, and which is organized and
publication in the Official Gazette and newspapers
constituted under the laws of Philippines, and
may be omitted. The notices shall be published one in
corporate bodies organized in the Philippines
English and the other in Spanish or in the local dialect,
authorized under their charters to do so; may purchase
and shall fix a date not earlier than sixty days after the
any tract of public agricultural land disposable under
date of the notice upon which the land will be awarded
this Act, not to exceed one hundred and forty-four
to the highest bidder, or public bids will be called for,
hectares in the case of an individual and one thousand
or other action will be taken as provided in this chapter.
and twenty-four hectares in that of a corporation or
Sec. 25. Public agricultural lands which are not located
association, by proceeding as prescribed in this
within ten (10) kilometers from the boundaries of the
chapter: Provided, That partnerships shall be entitled
city proper in chartered cities or within five (5)
to purchase not to exceed one hundred and forty-four
kilometers from the municipal hall or town occupants
hectares for each member thereof. But the total area so
plaza of any municipality may be sold to actual
purchased shall in no case exceed the one thousand and
occupants who do not own any parcel of land or whose
twenty-four hectares authorized in this section for
total land holdings do not exceed five hectares and who
associations and corporations.
comply with the minimum requirements of
Sec. 23. No person, corporation, association, or
Commonwealth Act numbered one hundred forty-one,
partnership other than those mentioned in the last
as amended, and who have resided on the land applied Sec. 28. The purchaser shall have not less than onefifth
for at least two years prior to the date of the of the land broken and cultivated within five years after
application. All bids must be sealed and addressed to the date of the award; and before any patent is issued,
the Director of Lands and must have enclosed the purchaser must show of occupancy, cultivation,
therewith cash or certified check, treasury warrant, or and improvement of at least one-fifth of the land
post-office money order payable to the order of the applied for until the date on which final payment is
Director of Lands for ten per centum of the amount of made: Provided, however, That in case land purchased
the bid, which amount shall be retained in case the bid is to be devoted to pasture, it shall be sufficient
is accepted as part payment of the purchase price: compliance with this condition if the purchaser shall
Provided, That no bid shall be considered the amount graze on the land as many heads of his cattle as will
of which is less than the appraised value of the land. In occupy at least onehalf of the entire area at the rate of
addition to existing publication requirements in section one head per hectare.
twenty-four of Commonwealth Act Numbered one Sec. 29. After title has been granted, the purchaser may
hundred forty-one, as amended, notices and of not, within a period of ten years from such cultivation
applications shall be posted for a period of not less than or grant, convey or encumber or dispose said lands or
thirty days in at least three conspicuous places in the rights thereon to any person, corporation or
municipality where the parcel of land is located, one of association, without prejudice to any right or interest
which shall be at the municipal building, and other, in of the Government in the land: Provided, That any sale
the barrio council building of the barrio where the land and encumbrance made in violation of the provisions
is located. of this section, shall be null and void and shall produce
Sec. 26. Upon the opening of the bids, the land shall be the effect of annulling the acquisition and reverting the
awarded to the highest bidder. If there are two or more property and all rights thereto to the State, and all
equal bids which are higher than the others, and one of payments on the purchase price theretofore made to the
such equal bids is that of the applicant, his bid shall be Government shall be forfeited.
accepted. If, however, the bid of the applicant is not Sec. 30. If at any time after the date of the award and
one of such equal and higher bids, the Director of before the issuance of patent, it is proved to the
Lands shall at once submit the land for public bidding, satisfaction of the Director of Lands, after due notice
and to the person making the highest bid on such public to the purchaser, that the purchaser has voluntarily
auction the land shall be awarded. In any case, the abandoned the land for more than one year at any one
applicant shall always have the option of raising his bid time, or has otherwise failed to comply with the
to equal that of the highest bidder, and in this case the requirements of the law, then the land shall revert to
land shall be awarded to him. No bid received at such the State, and all prior payments made by the purchaser
public auction shall be finally accepted until the bidder and all improvements existing on the land shall be
shall have deposited ten per centum of his bid, as forfeited.
required in Section twenty-five of this Act. In case Sec. 31. No person, corporation, association, or
none of the tracts of land that are offered for sale or the partnership shall be permitted, after the approval of
purchase of which has been applied for, has an area in this Act, to acquire the title to or possess as owner any
excess of twenty-four hectares, the Director of Lands lands of the public domain if such lands, added to other
may delegate to the District Land Officer concerned lands belonging to such person, corporation,
the power of receiving bids, holding the auction, and association, or partnership shall give a total area
proceeding in accordance with the provisions of this greater than area the acquisition of which by purchase
Act, but the District Land Officer shall submit his is authorized under this Act. Any excess in area over
recommendation to the Director of Lands, for the final this maximum and all right, title, interest, claim or
decision of the latter in the case. The District Land action held by any person, corporation, association, or
Officer shall accept and process any application for the partnership resulting directly or indirectly in such
purchase of public lands not exceeding five hectares excess shall revert to the State. This section shall,
subject to the approval of the Director of Lands within however, not be construed to prohibit any person,
sixty days after receipt of the recommendation of said corporation, association, or partnership authorized by
District Land Officer. Sec. 27. The purchase price shall this Act to require lands of the public domain from
be paid as follows: The balance of the purchase price making loans upon real necessary for the recovery of
after deducting the amount paid at the time of such loans; but in this case, as soon as the excess above
submitting the bid, may be paid in full upon the making referred to occurs, such person, corporation,
of the award, or in not more than ten equal annual association, or partnership shall dispose of such lands
installments from the date of the award. within five years, for the purpose of removing the
excess mentioned. Upon the land in excess of the limit
there shall be paid, so long as the same is not disposed agricultural public land shall apply, directly or
of, for the first year a surtax of fifty per centum indirectly, for agricultural public land except under the
additional to the ordinary tax to which such property homestead and free patent provisions of this Act:
shall be subject, and for each succeeding year fifty per Provided, That no lease shall be permitted to interfere
centum shall be added to the last preceding annual tax with any prior claim by settlement or occupation, until
rate, until the property shall have been disposed of. The the consent of the occupant or settler is first had, or
person, corporation, association, or partnership until such claim shall be legally extinguished, and no
owning the land in excess of the limit established by person, corporation, or association shall be permitted
this Act shall determine the portion of land to be to lease lands here-under which are not reasonably
segregated. necessary to carry on his business in case of an
At the request of Secretary of Agriculture and individual, or the business for which it was lawfully
Commerce, the Solicitor-General or the officer acting created and which it may lawfully pursue in the
in his stead shall institute the necessary proceedings in Philippines, if an association or corporation.
the proper court for the purpose of determining the Sec. 34. A notice of the date and place of the auction
excess portion to be segregated, as well as the disposal of the right to lease the land shall be published and
of such portion in the exclusive interest of the announced in the same manner as that prescribed for
Government. the publication and announcement of the notice of sale,
Sec. 32. This chapter shall be held to authorize only in section twenty-four of this Act.
one purchase of the maximum amount of land Sec. 35. All bids must be sealed and addressed to the
hereunder by the same person, corporation, Director of Lands and must have enclosed therewith
association, or partnership; and no corporation, cash or a certified check, Treasury warrant, or post-
association, or partnership, any member of which shall office money order payable to the order of the
have received the benefits of this chapter or of the next Director of Lands, for a sum equivalent to the rental
following chapter, either as an individual or as a for at least, the first three months of the lease:
member of any other corporation, association, or Provided, That no bid shall be considered in which
partnership, shall purchase any other lands of the the proposed annual rental is less than three per
public domain under this chapter. But any purchaser of centum of the value of the land according to the
public land, after having made the last payment upon appraisal made in conformity with section one
and cultivated at least one-fifth of the land purchased, hundred and sixteen of this Act.
if the same shall be less than the maximum allowed by Sec. 36. The auction of the right to lease the land shall
this Act, may purchase successively additional be conducted under the same procedure as that
agricultural public land adjacent to or not distant from prescribed for the auction sale of agricultural lands as
the land first purchased, until the total area of such described in section twenty-six of this Act: Provided,
purchases shall reach the maximum established in this That no bid shall be accepted until the bidder shall have
chapter: Provided, That in making such additional deposited the rental for at least the first three months
purchase or purchases, the same conditions shall be of the lease.
complied with as prescribed by this Act for the first Sec. 37. The annual rental of the land leased shall not
purchase. be less than three per centum of the value of the land,
according to the appraisal and reappraisal made in
CHAPTER V accordance with section one hundred sixteen of this
LEASE Act; except for lands reclaimed by the Government,
which shall not be less than four per centum of the
Sec. 33. Any citizen of lawful age of the Philippines,
appraised and reappraised value of the land: Provided,
and any corporation or association of which at least
That one-fourth of the annual rental of these lands
sixty per centum of the capital stock or of any interest
reclaimed prior to the approval of this Act shall accrue
in said capital stock belongs wholly to citizens of the
to the construction and improvement portion of the
Philippines, and which is organized and constituted
Portworks Funds: And provided, further, That the
under the laws of the Philippines, may lease any tract
annual rental of not less than four per centum of the
of agricultural public land available for lease under the
appraised and reappraised value of the lands reclaimed
provisions of this Act, not exceeding a total of one
using the Portworks Fund after the approval of this Act
thousand and twentyfour hectares. If the land leased is
shall all accrue to the construction and improvement
adapted to and be devoted for grazing purposes, an area
portion of the Portworks Fund. But if the land leased is
not exceeding two thousand hectares may be granted.
adapted to and be devoted for granting purposes, the
No member, stockholder, of officer, representative,
annual rental shall be not less than two per centum of-
attorney, agent, employee or bondholder of any
the appraised and reappraised value thereof- Every
corporation or association holding or controlling
contract of lease under the provisions of this chapter
shall contain a cause to the effect that are appraisal of said part of the land is more valuable for agricultural
the land leased shall be made every ten years from the purposes.
date of the approval of the lease, if the term of the same The commission of waste or violation of the forestry
shall be in excess of ten years. In case the lessee is not regulations by the lessee shall work a forfeiture of his
agreeable to the reappraisal and prefers to give up his last payment of rent and render him liable to immediate
contract of lease, he shall notify the Director of Lands dispossession and suit for damage. Sec. 42. After
of his desire within the six months next preceding the having paid rent for at least the first two years of the
date on which the reappraisal takes effect, and in case lease, and having complied with the requirements
his request is approved, the Director of Lands may, if prescribed in section thirty nine, the lessee of
the lessee should so desire, proceed in accordance with agricultural public land with an area than the maximum
section one hundred of this Act. allowed by law, may lease successively additional
Sec. 38. Leases shall run for a period of not more than agricultural public land adjacent to or near the land
twenty-five years, but may be renewed once for originally leased until the total- area of such leases
another period of not to exceed twenty-five years, in shall reach the maximum established in this chapter:
case the lessee shall have made important Provided, That in making such additional lease, the
improvements which, in the discretion of the Secretary same conditions shall be complied with as prescribed
of Agriculture and Commerce justify a renewal. Upon by this Act for the first lease.
the final expiration of the lease, all buildings and other Sec. 43. During the life of the lease, any lessee who
permanent improvements made by the lessee, his heirs, shall have complied with all the conditions thereof and
executors, administrators, successors, or assigns shall shall have the qualifications required by section
become the property of the Government, and the land twenty-two, shall have the option of purchasing the
together with the said improvements shall be disposed land leased subject to the restrictions of chapter five of
of in accordance with the provisions of chapter five of this Act.
this Act.
Sec. 39. It shall be an inherent and essential condition CHAPTER VI
of the lease that the lessee shall have not less than one- FREE PATENTS
third of the land broken and cultivated within five
Sec. 44. Any natural-born citizen of the Philippines
years after the date of the approval of the lease:
who is not the owner of more than twenty-four hectares
Provided, however, That in case the land leased is to
and who since July fourth, nineteen hundred and
be devoted to pasture, it shall be sufficient compliance
twenty-six or prior thereto, has continuously occupied
with this condition if the lessee shall graze on the land
and cultivated, either by himself or through his
as many heads of cattle as will occupy at least one-half
predecessors-in-interest, a tract or tracts of agricultural
of the entire area at the rate of one head per hectare.
public lands subject to disposition, or who shall have
Sec. 40. The lessee shall not assign, encumber, or
paid the real estate tax thereon while same has not been
sublet his rights without the consent of the Secretary of
occupied by any person shall be entitled, under the
Agriculture and Commerce, and the violation of this
provisions of this chapter, to have a free patent issued
condition shall avoid the contract: Provided, That
to him for such tract or tracts of such land not to exceed
assignment, encumbrance, or subletting for purposes
twenty-four hectares. A member of the national
of speculation shall not be permitted in any case:
cultural minorities who has continuously occupied and
Provided, further, That nothing contained in this
cultivated, either by himself or through his
section shall be understood or construed to permit the
predecessors-in-interest, a tract or tracts of land,
assignment, encumbrance, or subletting of lands leased
whether disposable or not since July 4, 1955, shall be
under this Act, or under any previous Act, to persons,
entitled to the right granted in the preceding paragraph
corporations, or associations which under this Act, are
of this section: Provided, That at the time he files his
not authorized to lease public lands. Sec. 41. The lease
free patent application he is not the owner of any real
of any lands under this chapter shall not confer the
property secured or disposable under this provision of
right to remove or dispose of any valuable timber
the
except as provided in the regulations of the Bureau of
Public Land Law
Forestry for cutting timber upon such lands. Nor shall
Sec. 45. The President of the Philippines (Prime
such lease confer the right to remove or dispose of
Minister), upon recommendation of the Secretary of
stone, oil, coal, salts. or other minerals, or medicinal
Natural Resources, shall from time to time fix by
mineral waters existing upon the same. The lease as to
proclamation the period which applications for
the part of the land which shall be mineral may be
Proclamation free patents may be filed in the district,
canceled by the Secretary of Agriculture and
chartered city, of period province, municipality or
Commerce, after notice to the lessee, whenever the
region specified in such proclamation, and upon the
expiration of the period so designated, unless the same Sec. 47. The persons specified in the next following
be extended by the President (Prime Minister) all the section are hereby granted time, not to extend beyond
land comprised within such district, chartered city, December 31, 1987 within which to take advantage of
province, municipality or region subject thereto under the benefit of this chapter: Provided, That this
the provisions of this chapter may be disposed of as extension shall apply only where the area applied for
agricultural public land without prejudice to the prior does not exceed 144 hectares. Provided, further, That
right of the occupant and cultivator to acquire such the several periods of time designated by the President
land under this Act by means other than free patent. in accordance with section forty-five of this Act shall
The time to be fixed in the entire Archipelago for the apply also to the lands comprised in the provisions of
filing of applications under this Chapter shall not this chapter, but this section shall not be construed as
extend beyond December 31, 1987, except in the prohibiting any of said persons from acting under this
provinces of Agusan del Norte, Agusan del Sur, chapter at any time prior to the period fixed by the
Cotabato, South Cotabato, Bukidnon, Lanao del Norte, President.
Lanao del Sur, Davao del Norte, Davao del Sec. 48. The following-described citizens of the
Sur, Davao Oriental, Sulu, Mt. Province, Benguet, Philippines, occupying lands of the public domain or
Kalinga-Apayao, and Ifugao where the President of the claiming to own any such lands or an interest therein,
Philippines, upon recommendation of the but whose titles have not been perfected or completed,
Secretary of Natural Resources, shall determine or fix may apply to the Court of First Instance of the province
the time beyond which the filing of applications under where the land is located for confirmation of their
this Chapter shall not extend. The period fixed for any claims and the issuance of a certificate of title therefor,
district, chartered city, province, or municipality shall under the Land
begin to run thirty days after the publication of the Registration Act , to wit:
proclamation in the Official Gazette and if available in (a) Those who prior to the transfer of sovereignty
one newspaper of general circulation in the city, from Spain to the prior United States have applied for
province or municipality concerned. A certified copy the purchase, composition or other form of grant of
of said proclamation shall be furnished by the lands of the public domain under the laws and royal
Secretary of Natural Resources within 30 days counted decrees then in force and have instituted and
from the date of the presidential proclamation to the prosecuted the proceedings in connection therewith,
Director of Lands and to the provincial board, the but have with or without default upon their part, or for
municipal board or city council and barangay council any other cause, not received title therefor, if such
affected, and copies thereof shall be posted on the applicants or grantees and their heirs have occupied
bulletin board of the Bureau of Lands at Manila and at and cultivated said lands continuously since the filing
conspicuous places in the provincial building and at the of their applications.
municipal building and barangay hall or meeting place. (b) Those who by themselves or through their
It shall moreover, be announced by government radio predecessors in interest have been in open, continuous,
whenever available, in each of the barrios of the exclusive, and notorious possession and occupation of
municipality. agricultural lands of the public domain, under a bona
Sec. 46. If, after the filing of the application and the fide claim of acquisition or ownership, for at least
investigation, the Director of Lands shall be satisfied thirty years immediately preceding the filing of the
of the truth of the allegations contained the application application for confirmation of title except when
and that the applicant comes within the provisions prevented by war or force majeure. These shall be
chapter, he shall cause a patent to issue to the applicant conclusively presumed to have performed all the
or his legal successor for the tract so occupied and conditions essential to a Government grant and shall
cultivated, provided its area does not exceed twenty- be entitled to a certificate of title under the provisions
four hectares: Provided, That no application shall be of this chapter.
finally acted upon until notice thereof has been (c) Members of the national cultural minorities
published in the municipality and barrio in which the who by themselves or through their predecessors-
land is located and adverse claimants have had an ininterest have been in open, continuous, exclusive and
opportunity to present their claims. notorious possession and occupation of lands of the
public domain suitable to agriculture, whether
CHAPTER VII disposable or not, under a bona fide claim of
JUDICIAL CONFIRMATION OF ownership for at least 30 years shall be entitled to the
IMPERFECT OR rights granted in sub-section (b) hereof.
INCOMPLETE TITLES Sec. 49. No person claiming title to lands of the public
domain not possession of the qualifications specified
in the last preceding section may apply for the benefits Sec. 52. In cadastral proceedings, instead of an
of this chapter. application, an answer or claim may be filed with the
Sec. 50. Any person or persons, or their legal same effect as in the procedure provided in the last
representatives or successors in right, claiming any preceding two sections.
lands or interest in lands under the provisions of this Sec. 53. It shall be lawful for the Director of Lands,
chapter, must in every case present an application to whenever in the opinion of the President the public
the proper Court of First Instance, praying that the interests shall require it, to cause to be filed in the
validity of the alleged title or claim be inquired into proper Court of First Instance, through the
and that a certificate of title be issued to them under the SolicitorGeneral or the officer acting in his stead, a
provisions of the Land Registration Act. petition against the holder, claimant, possessor, or
The application shall conform as nearly as may be in occupant of any land who shall not have voluntarily
its material allegations to the requirements of an come in under the provisions of this chapter or of the
application for registration under the Land Land Registration Act, stating in substance that the
Registration Act, and shall be accompanied by a plan title of such holder, claimant, possessor, or occupant is
of the land and all documents evidencing a right on the open to discussion; or that the boundaries of any such
part of the applicant to the land claimed. The land which has not been brought into court as aforesaid
application shall also state the citizenship of the are open to question; or that it is advisable that the title
applicant and shall set forth fully the nature of the to such lands be settled and adjudicated, and praying
claim and when based upon proceeding initiated under that the title to any such land or the boundaries thereof
Spanish laws, it shall specify as exactly as possible the or the right to occupancy thereof be settled and
date and form of application for purchase composition adjudicated. The judicial proceedings under this
or other form of grant, the extent of the compliance section shall be in accordance with the laws on
with the conditions required by the Spanish laws and adjudication of title in cadastral proceedings. Sec. 54.
royal decrees for the acquisition of legal title, and if not If in the hearing of any application arising under this
fully complied with, the reason for such chapter the court shall find that more than one person
noncompliance, together with a statement of the length or claimant has an interest in the land, such conflicting
of time such land or any portion thereof has been interests shall be adjudicated by the court and decree
actually occupied by the claimant or his predecessors awarded in favor of the person or persons entitled to
in interest; the use made of the land, and the nature of the land according to the laws, but if none of said
the enclosure, if any. The fees provided to be paid for person is entitled to the land, or if the person who
the registration of lands under the Land Registration might be entitled to the same lacks the qualifications
Act shall be collected from applicants under this required by this Act for acquiring agricultural land of
chapter. the public domain, the decision shall be in favor of the
Sec. 51. Applications for registration under this chapter Government.
shall be heard in the Court of First Instance in the same Sec. 55. Whenever, in any proceedings under this
manner and shall be subject to the same procedure as chapter to secure registration of an incomplete or
established in the Land Registration Act for other imperfect claim of title initiated prior to the transfer of
applications, except that a notice of all such sovereignty from Spain to the United States, it shall
applications, together with a plan of the lands claimed, appear that had such claims been prosecuted to
shall be immediately forwarded to the Director of completion under the laws prevailing when instituted,
Lands, who may appear as a party in such cases: and under the conditions of the grant then
Provided, That prior to the publication for hearing, all contemplated, the conveyance of such land to the
of the papers in said case shall be transmitted papers applicant would not have been gratuitous, but would
by the clerk to the Solicitor General or officer acting in have involved payment therefor to the Government,
his stead, in order that he may, if he deems it advisable then and in that event the court shall, after decreeing in
for the interests of the Government, investigate all of whom title should vest, further determine the amount
the facts alleged in the application or otherwise to be paid as a condition for the registration of the land.
brought to his attention. The Solicitor-General shall Such judgment shall be certified to the Director of
return such papers to the clerk as soon as practicable Lands by the clerk of the court for collection of the
within three months. The final decree of the court shall amount due from the person entitled to conveyance.
in every case be the basis for the original certificate of Upon payment to the Director of Lands of the price
title in favor of the person entitled to the property under specified in the judgment, he shall so certify to the
the procedure prescribed in section forty-one of the proper Court of First Instance and said court shall
Land Registration Act. forthwith order the registration of the land in favor of
the competent person entitled thereto. If said person
shall fail to pay the amount of money required by the and forty-four hectares: Provided, however, That this
decree within a reasonable time fixed in the same, the limitation shall not apply to grants, donations, transfers
court shall order the proceeding to stand dismissed and made to a province, municipality or branch or
the title to the land shall then be in the State free from subdivision of the Government for the purposes
any claim of the applicant. Sec. 56. Whenever any deemed by said entities conducive to the public
judgment of confirmation or other decree of the court interest; but the land so granted donated, or transferred
under this chapter shall become final, the clerk of the to a province, municipality, or branch or subdivision of
court concerned shall certify that fact to the Director of the Government shall not be alienated, encumbered, or
Lands, with a certified copy of the decree of otherwise disposed of in a manner affecting its title,
confirmation or judgment of the court and the plan and except when authorized by Congress: Provided,
technical description of the land involved in the decree further, That any person, corporation, association or
or judgment of the court. partnership disqualified from purchasing public land
Sec. 57. No title or right to, or equity in, any lands of for agricultural purposes under the provisions of this
the public domain may hereafter be acquired by Act, may lease land included under this title suitable
prescription or by adverse possession or occupancy, or for industrial or residential purposes, but the lease
under or by virtue of any law in effect prior to granted shall only-be valid while such land is used for
American occupation, except as expressly provided by the purposes referred to.
laws enacted after said occupation of the Philippines Sec. 61. The lands comprised in classes (a), (b), and (c)
by the United States. of section fifty-nine shall be disposed of to private
parties by lease only and not otherwise, as soon as the
TITLE III President, upon recommendation by the Secretary of
LANDS FOR RESIDENTIAL, COMMERCIAL Agriculture and Commerce shall declare that the same
OR are not necessary for the public service and are open to
INDUSTRIAL PURPOSES AND OTHER disposition under this chapter. The lands included in
SIMILAR class (d) may be disposed of by sale or lease under the
PURPOSES provisions of this Act.
CHAPTER VIII Sec. 62. The lands reclaimed by the Government by
CLASSIFICATION AND CONCESSION OF dredging, filling or otherwise shall be surveyed and
PUBLIC may, with the approval of the Secretary of Agriculture
LANDS SUITABLE FOR RESIDENCE, and Commerce, be divided by the Director of Lands
COMMERCE AND INDUSTRY into lots and blocks, with the necessary streets and
alley-ways between them, and said Director shall give
Sec. 58. Any tract of land of the public domain which, notice to the public by publication in the Official
being neither timber nor mineral land, is intended to be Gazette or by other means, that the lots or blocks not
used for residential purposes or for commercial, needed for public purposes shall be leased for
industrial, or other productive purposes other than commercial or industrial or other similar purposes.
agricultural, and is open to disposition or concession, Sec. 63. Whenever it is decided that lands covered by
shall be disposed of under the provisions of this this chapter are not needed for public purposes, the
chapter and not otherwise. Sec. 59. The lands Director of Lands shall ask the Secretary of
disposable under this title shall be classified as follows: Agriculture and Commerce for authority to dispose of
(a) Lands reclaimed by the Government by the same. Upon receipt of such authority, the Director
dredging,filing, or other means; of Lands shall give notice by public advertisement in
(b) Foreshore; the same manner as in the case of leases or sales of
(c) Marshy lands or lands covered with water agricultural public land, that the Government will lease
bordering upon the shores or banks of navigable or sell, as the case may be, the lots or blocks specified
lakes or rivers; in the advertisement, for the purpose stated in the
(d) Lands not included in any of the foregoing classes. notice and subject to the conditions specified in this
Sec. 60. Any tract of land comprised under this title chapter. Sec. 64. The leases executed under this
may be leased or sold, as the case may be, to any chapter by the Secretary of Agriculture and Commerce
person, corporation, or association authorized to shall, among other conditions, contain the following:
purchase or lease public lands for agricultural (a) The rental shall not be less than three per centum of
purposes. The area of the land so leased or sold shall the appraised or reappraised value of the land plus one
be such as shall, in the judgment of the Secretary of per centum of the appraised or reappraised value of the
Agriculture and Natural Resources, be reasonably improvements, except for lands reclaimed by the
necessary for the purposes for which such sale or lease Government which shall not be less than four per
is requested, and shall in no case exceed one hundred
centum of the appraised or reappraised value of the thereon within six months from the receipt of the order
land plus two per centum of the appraised or of award, and shall complete the construction of said
reappraised value of the improvements thereon: improvements within eighteen months from the date of
Provided, That twenty-five per centum of the total such award; otherwise the Secretary of Agriculture and
annual rental on all lands reclaimed prior to the Natural Resources may rescind the contract.
approval of this Act and one per centum of the (b) The purchase price shall be paid in cash or
appraised or reappraised value of improvements shall inequal annual installments, not to exceed ten. The
accrue to the construction and improvement portion of contract of sale may contain other conditions not
the Portworks Fund: And provided, further, That the inconsistent with the provisions of this Act.
annual rental on lands reclaimed using the Portworks Sec. 66. The kind of improvements to be made by the
Fund together with the fee due on account of the lessee or the purchaser, and the plans thereof, shall be
improvement thereon after the effectivity of this Act subject to the approval of the Secretary of Public
shall all accrue to the construction and improvement Works and Communications, in case they are
portion of the Portworks Fund. constructions or improvements which if by the
(b) The land rented and the improvements thereon shall Government, would properly have to be executed
be reappraised every ten years if the term of the lease under the supervision of the Bureau of Public Works.
is in excess of that period. (c) The term of the lease Sec. 67. The lease or sale shall be made through oral
shall be as prescribed by section thirty-eight of this bidding; and adjudication shall be made to the highest
Act. bidder. However, where an applicant has made
(d) The lessee shall construct permanent improvements on the land by virtue of a permit issued
improvements appropriate for the purpose for which to him by competent authority, the sale or lease shall
the lease is granted, shall commence the construction be made by sealed bidding as prescribed in section
thereof within six months from the date of the award twenty-six of this Act, the provisions of which shall be
of the right to lease the land, and shall complete the applied wherever applicable. If all or part of the lots
said construction within eighteen months from said remain unleased or unsold, the Director of Lands shall
date. from time to time announce in the Official Gazette or
(e) At the expiration of the lease or of any in any other newspapers of general circulation, the
extension of the same, all improvements made by the lease or sale of those lots, if necessary
lessee, his heirs, executors, administrators, successors, Sec. 68. The Secretary of Agricultural and Commerce
or assigns shall become the property of the may grant to qualified persons temporary permission,
Government. upon payment of a reasonable charge, for the use of
(f) The regulation of all rates and fees charged to any portion of the lands covered by this chapter for any
the public; and the annual submission to the lawful private purpose, subject to revocation at any
Government for approval of all tariffs of such rates and time when, in his judgment, the public interest shall
fees. require it.
(g) The continuance of the easements of the coast
police and other easements reserved by existing law or TITLE IV
by any laws hereafter enacted. LANDS FOR EDUCATIONAL, CHARITABLE,
(h) Subjection to all easements and other rights AND
acquired by the owners of lands bordering upon the OTHER SIMILAR PURPOSES
foreshore or marshy land. CHAPTER IX
The violation of one or any of the conditions specified CONCESSION OF LANDS FOR
in the contract shall give rise to the rescission of said EDUCATIONAL,
contract. The Secretary of Agriculture and Commerce CHARITABLE, AND OTHER SIMILAR
may, however, subject to such conditions as he may PURPOSES
prescribe, waive the rescission arising from a violation
of the conditions of subsection (d), or extend the time Sec. 69. Whenever any province, municipality, or other
within which the construction of the improvements branch or subdivision of the Government shall need
shall be commenced and completed. Sec. 65. The sale any portion of the land of the public domain open to
of the lands comprised in classes (c) and (d) of section concession for educational, charitable or other similar
fifty-nine shall, among others, comprise the following purposes, the President, upon recommendation by the
conditions: Secretary of Agriculture and Commerce, may execute
(a) The purchaser shall make improvements of a contracts in favor of the same. in the form of donation,
permanent character appropriate for the purpose for sale, lease, exchange, or any other form, under terms
which the land is purchased, shall commence work and conditions to be inserted in the contract; but land
so granted shall in no case be encumbered or alienated,
except when the public service requires their being Sec. 73. It shall then be the duty of the Director of
leased or exchanged, with the approval of the Lands, after having recorded the proclamation of the
President, for other lands belonging to private parties, President and the survey accompanying the same, and
or if the National Assembly disposes otherwise. having completed the legal proceedings prescribed in
Sec. 70. Any tract of public land of the class covered chapter thirteen of this Act, to direct a subdivision in
by this title may be sold or leased for the purpose of accordance with the instructions of the Secretary of
founding a cemetery, church, college, school, Agriculture and Commerce, if there shall be such
university, or other institutions for educational, instructions, and if there shall not be any, then in the
charitable or philanthropical purposes or scientific manner which may to the Director of Lands seem best
research, the area to be such as may actually and adapted to the convenience and interest of the public
reasonably be necessary to carry out such purpose, but and the residents of the future town.
not to exceed ninety-six hectares in any case. The sale Sec. 74. The plat of the subdivision shall designate
or lease shall be made subject to the same conditions certain lots for commercial and industrial uses and the
as required for the sale and lease of agricultural public remainder as residence lots, and shall also reserve and
land, but the Secretary of Agriculture and Commerce note the lots owned by private individuals as evidenced
may waive the conditions requiring cultivation. The by record titles, or possessed or claimed by them as
Secretary of Agriculture and Commerce, if private property. Such lots, whether public or private,
conveyance he sees fit, may order the sale to be made shall be numbered upon a general plan or system.
without public auction, at a price to be fixed by said The plat prepared by the Director of Lands shall be
Secretary, or the lease to be granted without auction, at submitted to the Secretary of Agriculture and
a rental to be fixed by him. In either case it shall be a Commerce for consideration, modification,
condition that the purchaser or lessee or their amendment, or approval.
successors or assigns shall not sell transfer, encumber Sec. 75. Unless the necessary reservations are made in
or lease the land for the purposes of speculation or use the proclamation of the President, the Director of
it for any purpose other than that contemplated in the Lands, with the approval of the Secretary of
application, and that the violation of this condition Agriculture and Commerce, shall reserve out of the
shall give rise to the immediate rescission of the sale land by him to be subdivided lots of sufficient size and
or lease, as the case may be, and to the forfeiture to the convenient situation for public use, as well as the
Government of all existing improvements: Provided, necessary avenues, streets, alleyways, parks, and
That it shall in no case be sublet, encumbered or resold squares. The avenues, streets, alleys, parks, plazas, and
under the conditions above set forth except with the lots shall be laid out on the plat as though the lands
approval of the Secretary of Agriculture and owned or claimed by private persons were part of the
Commerce. public domain and part of the reservation, with a view
to the possible subsequent purchase or condemnation
TITLE V thereof, if deemed necessary by the proper authorities.
RESERVATIONS Sec.76. At any time after the subdivision has been
CHAPTER X made, the President may, in case the public interest
TOWN SITE RESERVATIONS requires it, reserve for public purposes any lot or lots
Sec. 71. Whenever it shall be considered to be in the of the land so reserved and not disposed of. Sec. 77. If,
public interest to found a new town. The Secretary of in order to carry out the provisions of this chapter, it
Agriculture and Commerce shall direct the Director of shall be necessary to condemn private lands within the
Lands to have a survey made by his Bureau of the limits of the new town, the President shall direct the
exterior boundaries of the site on which such town is Solicitor-General or officer acting in his stead to at
to be established, and upon the completion of the once begin proceedings for condemnation, in
survey he shall send the same to said Secretary, with accordance with the provisions of existing law.
his recommendations. Sec. 78. When the plat of subdivision has been finally
Sec. 72. The Secretary of Agriculture and Commerce, approved by the Secretary of Agriculture and
if he approves the recommendations of the Director of Commerce, the Director of Lands shall record the same
Lands, shall submit the matter to the President to the in the records of his office and shall forward a certified
end that the latter may issue a proclamation reserving copy of such record to the register of deeds of the
the land surveyed, or such part thereof as he may deem province in which the land lies, to be by such register
proper, as a town site, and a certified copy of such recorded in the records of his office
proclamation shall be sent to the Director of Lands and Sec. 79. All lots, except those claimed by or belonging
another to the register of deeds of the province in to private parties and those reserved for parks,
which the surveyed land lies. buildings, and other public uses, shall be sold, after due
notice, at public auction to the highest bidder, after the them, and granting to each member not already the
approval and recording of the plat of subdivision as owner, by title or gratuitous patent, of four or more
above provided, but no bid shall be accepted that does hectares of land, the use and benefit only of a tract of
not equal at least two-thirds of the appraised value, nor land not to exceed four hectares for each male member
shall bids be accepted from persons, corporations, over eighteen years of age or the head of a family. As
associations, or partnerships not authorized to soon as the Secretary of the Interior shall certify that
purchase public lands for commercial, residential or the majority of the non-Christian inhabitants of any
industrial purposes under the provisions of this Act. given reservation have advanced sufficiently in
The provisions of sections twenty-six and sixty-five of civilization, then the President may order that the lands
this Act shall be observed in so far as they are of the public domain within such reservation be
applicable. Lots for which satisfactory bids have not granted under the general provisions of this Act to the
been received shall be again offered for sale, under the said inhabitants, and the subdivision and distribution
same conditions as the first time, and if they then of said lands as above provided shall be taken into
remain unsold, the Director of Lands shall be consideration in the final disposition of the same. But
authorized to sell them at private sale for not less than any non-Christian inhabitant may at any time apply for
two-thirds of their appraised value. the general benefits of this Act provided the Secretary
Sec. 80. All funds derived from the sale of lots shall be of Agriculture and Commerce is satisfied that such
covered into the Philippine Treasury as part of the inhabitant is qualified to take advantage of the
general funds. provisions of the same: Provided, That all grants,
Sec. 81. Not more than two residence lots and two lots deeds, patents and other instruments of conveyance of
for commercial and industrial uses in any one town site land or purporting to convey or transfer rights of
shall be sold to any one person, corporation, or property, privileges, or easements appertaining to or
association without the specific approval of the growing out of lands, granted by sultans, datus, or
Secretary of Agriculture and Commerce. other chiefs of the so-called non-Christian tribes,
Sec. 82. The Assembly shall have the power at any without the authority of the Spanish Government while
time to modify, alter, rescind, repeal, annul, and the Philippines were under the sovereignty of Spain, or
cancel, with or without conditions, limitation, without the consent of the United States Government
exceptions, or reservations, all and any dispositions or of the Philippine Government since the sovereignty
made by the executive branch of the Philippine over the Archipelago was transferred from Spain to the
Government by virtue of this chapter, and the exercise United States, and all deeds and other documents
of this power shall be understood as reserved in all executed or issued or based upon the deeds, patents,
cases, as an inherent condition thereof. and documents mentioned, are hereby declared to be
illegal, void, and of no effect. Sec. 85. Upon
CHAPTER XI recommendation by the Secretary of Agriculture and
RESERVATIONS FOR PUBLIC AND SEMI- Commerce, the President may, by proclamation
PUBLIC PURPOSES designate any tract or tracts of land of the public
domain for the establishment of agricultural colonies;
Sec. 83. Upon the recommendation of the Secretary of and although the disposition of the lands to the
Agriculture and Commerce, the President may colonists shall be made under the provisions of this
designate by proclamation any tract or tracts of land of Act, yet, while the Government shall have the
the public domain as reservations for the use of the supervision and management of said colonies, the
Commonwealth of the Philippines or of any of its Secretary of Agriculture and Commerce may make the
branches, or of the inhabitants thereof, in accordance necessary rules and regulations for the organization
with regulations prescribed for this purpose, or for and internal administration of the same. The Secretary
quasi-public uses or purposes when the public interest of Agriculture and Commerce may also, under
requires it, including reservations for highways, rights conditions to be established by the Assembly, turn over
of way for railroads, hydraulic power sites, irrigation a colony so reserved to any person or corporation, in
systems, communal pastures or leguas comunales, order that such person or corporation may clear, break,
public parks, public quarries, public fishponds, and prepare for cultivation the lands of said colony and
workingmens village and other improvements for the establish the necessary irrigation system and suitable
public benefit. Sec. 84. Upon recommendation of the roads and fences; but final disposition shall be made of
Secretary of Agriculture and Commerce, the President, the land in accordance with the provisions of this Act,
may by proclamation, designate any tract or tracts of subject, however, to such conditions as the National
the public domain for the exclusive use of the Assembly may establish for the reimbursement of the
nonChristian Filipinos, including in the reservation, in expense incurred in putting such lands in condition for
so far as practicable, the lands used or possessed by cultivation: Provided, That the National Assembly
may direct that such land so prepared for cultivation (d) That the application is made in good faith, for
may be disposed of only by sale or lease. the actual purpose of using the land for the object
specified in the application and for no other purpose,
CHAPTER XII and that the land is suitable for the purpose to which it
PROVISIONS COMMON TO RESERVATIONS is to be devoted.
(e) That the application is made for the
Sec. 86. A certified copy of every proclamation of the
exclusivebenefit of the application and not, either
President issued under the provisions of this title shall
directly or indirectly, for the benefit of any other
be forwarded to the Director of Lands for record in his
person or persons, corporation, association, or
office, and a copy of this record shall be forwarded to
partnership. (f) As accurate a description of the land as
the register of deeds of the province or city where the
may be given, stating its nature the province,
land lies. Upon receipt of such certified copy, the
municipality, barrio, and sitio where it is located, and
Director of Lands shall order the immediate survey of
its limits and boundaries, specifying those having
the proposed reservation if the land has not yet been
reference to accidents of the ground or permanent
surveyed, and as soon as the plat has been completed,
monuments, if any.
he shall proceed in accordance with the next following
(g) Whether all or part of the land is occupied
section.
orcultivated or improved, and by whom, giving his
Sec. 87. If all the lands included in the proclamation of
post-office address, and whether the land has been
the President are not registered under the Land
occupied or cultivated or improved by the applicant or
Registration Act, the Solicitor-General, if requested to
his ascendant, the name of the ascendant, the
do so by the Secretary of Agriculture and Commerce,
relationship with him, the date and place of the death
shall proceed in accordance with the provision of
of the ascendant, the date when the possession and
section fifty-three of this Act.
cultivation began, and description of the
Sec. 88. The tract or tracts of land reserved under the
improvements made, accompanying satisfactory
provisions of section eighty-three shall be
evidence of the relationship of the applicant with the
nonalienable and shall not be subject to occupation,
ascendant, and of the death of the latter and the
entry, sale, lease, or other disposition until again
descendants left by him, in case it is alleged that he
declared alienable under the provisions of this Act or
occupied and cultivated the land first; or whether there
by proclamation of the President.
are indications of its having been occupied, cultivated,
TITLE VI or improved entirely or partially, and if so, in what
GENERAL PROVISIONS such indications consist, whether he has made
CHAPTER XIII investigations as to when and by whom such
APPLICATIONS: PROCEDURE, improvements were made, and if so, how such
CONCESSION OF investigations were made and what was the result
LANDS, AND LEGAL RESTRICTIONS AND thereof; or whether the land is not occupied, improved,
ENCUMBRANCES or cultivated either entirely or partially, and there are
no indications of it having ever been occupied,
Sec. 89. All applications filed under the provisions of improved, or cultivated, and in this case, what is the
this Act shall be addressed to the Director of Lands. condition of the land.
Sec. 90. Every application under the provisions of this (h) That the land applied for is neither timber nor
Act shall be made under oath and shall set forth: (a) mineral land and does not contain guano or deposits of
The full name of applicant, his age, place of birth, salts or coal.
citizenship, civil status, and post-office address. In (i) That the applicant agrees that a strip forty
case the applicant is a corporation, association or meters wide starting from the bank on each side of any
copartnership, the application shall be accompanied river or stream that may be found on the land applied
with a certified copy of its articles of incorporation, for, shall be demarcated and preserved as permanent
association or co-partnership together with an affidavit timberland to be planted exclusively to trees of known
of its President, manager, or other responsible officer, economic value, and that he shall not make any
giving the names of the stockholders or members, their clearing thereon or utilize the same for ordinary
citizenship, and the number of shares subscribed by farming purposes even after patent shall have been
each. (b) That the applicant has all the qualifications issued to him or a contract of lease shall have been
required by this Act in the case. executed in his favor. 68
(c) That he has none of the disqualifications Sec. 91. The statements made in the application shall
mentioned herein. be considered as essential conditions and parts of any
concession, title, or permit issued on the basis of such
application, and any false statements therein or take into account the legal subdivision to be made by
omission of facts altering, changing, or modifying the the Government and the inadvisability of granting the
consideration of the facts set forth in such statements, best land at a given place to only one person. Sec. 94.
and any subsequent modification, alteration, or change In case the legal subdivisions have already been made
of the material facts set forth in the application shall at the time of the filing of the application, no charge
ipso facto produce the cancellation of the concession, shall be made for the survey; but if the legal
title, or permit granted. It shall be the duty of the subdivisions have not yet been made, the cost of the
Director of Lands, from time to time and whenever he survey shall be charged to the Government, except in
may deem it advisable, to make the necessary the following cases:
investigations for the purpose of ascertaining whether (a) In purchases under chapters five and ten of
the material facts set out in the application are true, or this Act, the cost of the survey shall be charged to the
whether they continue to exist and are maintained and purchaser if the same is a corporation, association, or
preserved in good faith, and for the purposes of such partnership; in other purchases the purchases, whoever
investigation, the Director of Lands is hereby it be, shall pay the total cost of the survey.
empowered to issue subpoenas and subpoenas duces (b) In leases, the cost of the survey shall be paid
tecum and, if necessary, to obtain compulsory process by the lessee; but at any time after the first five years
from the courts. In every investigation made in from the approval of the lease, and during Cost of the
accordance with this section, the existence of bad faith, life of the same, the lessee shall be entitled to the
fraud, concealment, or fraudulent and illegal reimbursement of one-half of the cost of the survey, if
modification of essential facts shall be presumed if the he shows to the satisfaction of the Director of Lands
grantee or possessor of the land shall refuse or fail to that he has occupied and improved a sufficient area of
obey a subpoena or subpoena duces tecum lawfully the land or incurred sufficient expenses in connection
issued by the Director of Lands or his authorized therewith to warrant such reimbursement.
delegates or agents, or shall refuse or fail to give direct Section95. If before the delimitation and survey of a
and specific answers to pertinent questions, and on the tract of public land the President shall declare the same
basis of such presumption, an order of cancellation disposable or alienable and such land shall be actually
may issue without further proceedings. occupied by a person other than the applicant, the
Sec. 92. Although the maximum area of public land Director of Lands shall inform the occupant of his prior
that may be acquired is fixed, yet the spirit of this Act right to apply for the land and shall give him one
is that the rule which must determine the real area to hundred and twenty days time in which to file the
be granted is the beneficial use of the land. The application or apply for the concession by any of the
concession or disposition shall be for less than the forms of disposition authorized by this Act, if such
maximum area authorized if, at the time of the issuance occupant is qualified to acquire a concession under this
of the patent or of the concession or disposition, it shall Act.
appear that the applicant is utilizing and is only able to Sec. 96. As soon as any land of the public domain has
utilize a smaller area, even though the application is for been surveyed, delimited, and classified, the President
a greater area. For the purposes of this section, the may, in the order issued by him declaring it open for
Director of Lands is authorized to determine the area disposition, designate a term within which occupants
that may be granted to the applicant, and to deny or with improvements but not entitled to free patents may
cancel or limit any application for concession, apply for the land occupied by them, if they have the
purchase, or lease if convinced of the lack of means of qualifications required by this Act. Sec. 97. If in the
the applicant for using the land for the purpose for case of the two last preceding sections, the occupant or
which he has requested it. occupants have not made application under any of the
Sec. 93. Lands applied for under this Act shall conform provisions of this Act at the expiration of the time limit
to the legal subdivisions and shall be contiguous if fixed, they shall lose any prior right to the land
comprising more than one subdivision. If subdivisions recognized by this Act, and the improvements on the
have not been made on the date of the application, the land, if any, shall be forfeited to the Government.
lands shall be rectangular in form so far as practicable, Sec. 98. All rights in and interest to, and the
but it shall be endeavored to make them conform to the improvements and crops upon, land for which an
legal subdivision as soon as the same has been made, application has been denied or canceled or a patent or
provided the interests of the applicant or grantee are grant refused, or a contract or concession rescinded or
protected; and the subdivision assigned to the applicant annulled, shall also be forfeited to the Government.
or grantee shall, so far as practicable, include the land Sec. 99. The Secretary of Agriculture and Commerce
improved or cultivated. The regulations to be issued may order such improvements and crops to be
for the execution of the provisions of this section shall appraised separately, for sale to the new applicant or
grantee, or may declare such land open only to sale or Sec. 105. If at any time the applicant or grantee shall
lease. die before the issuance of the patent or the final grant
Sec. 100. In case the cancellation is due to delinquency of the land, or during the life of the lease, or while the
on the part of the applicant or grantee, the same shall applicant or grantee still has obligations pending
be entitled to the reimbursement of the proceeds of the towards the Government, in accordance with this Act,
sale of the improvements and crops, after deducting the he shall be succeeded in his rights and obligations with
total amount of his indebtedness to the Government respect to the land applied for or granted or leased
and the expense incurred by it in the sale of the under this Act by his heirs in law, who shall be entitled
improvements or crops and in the new concession of to have issued to them the patent or final concession if
the land. they show that they have complied with the
Sec. 101. All actions for the reversion to the requirements therefor, and who shall be subrogated in
Government of lands of the public domain or all his rights and obligations for the purposes of this
improvements thereon shall be instituted by the Act.
Solicitor-General or the officer acting in his stead, in Sec. 106. If at any time after the approval of the
the proper courts, in the name of the Commonwealth application and before the issuance of a patent or the
of the Philippines. final concession of the land, or during the life of the
Sec. 102. Any person, corporation, or association may lease, or at any time when the applicant or grantee still
file an objection under oath to any application or has obligations pending with the Government, in
concession under this Act, grounded on any reason accordance with this Act, it appears that the land
sufficient under this Act for the denial or cancellation applied for is necessary, in the public interest, for the
of the application or the denial of the patent or grant. protection of any source of water or for any work for
If, after the applicant or grantee has been given suitable the public benefit that the Government wishes to
opportunity to be duly heard, the objection is found to undertake, the Secretary of Agriculture and Commerce
be well founded, the Director of Lands shall deny or may order the cancellation of the application or the non
cancel the application or deny patent or grant, and the issuance of the patent or concession or the exclusion
person objecting shall, if qualified, be granted a prior from the land applied for of such portion as may be
right of entry for a term of sixty days from the date of required, upon payment of the value of the
the notice. improvements, if any.
Sec. 103. All the proofs, affidavits, and oaths of any Sec. 107. All patents or certificates for land granted
kind required or necessary under this Act may be made under this Act shall be prepared in the Bureau of Lands
before the justice of the peace 71 of the municipality and shall be issued in the name of the Government of
in which the land lies, or before the judge or clerk of the Republic of the Philippines under the signature of
the Court of First Instance of the province in which the the President of the Philippines: Provided, however,
land lies, or before any justice of the peace or That the President of the
chargeable notary public of the province in which the Philippines may delegate to the Secretary of
land lies, or before any officer or employee of the Agriculture and Natural Resources 74 and/or the
Bureau of Lands authorized by law to administer oaths. Under secretary for Natural Resources 74 the power to
The fees for the taking of final evidence before any of sign patents or certificates covering lands not
the officials herein-before mentioned shall be as exceeding one hundred forty-four hectares in area, and
follows: to the Secretary of Agriculture and Natural Resources
For each affidavit, fifty centavos. For each deposition 75 the power to sign patents or certificates covering
of the applicant or the witness, fifty centavos. lands exceeding one hundred forty-four hectares in
Sec. 104. Any owner of uncultivated agricultural land area: Provided, further, That District Land Officers in
who knowingly permits application for the same to be every province are hereby empowered to sign patents
made to the Government and the land to be tilled and or certificates covering lands not exceeding five
improved by a bona fide grantee without protesting to hectares in area when the office of the District Land
the Bureau of Lands within one year after cultivation Officer is properly equipped to carry out the purposes
has begun, shall lose all to the part of the land so of this Act: Provided, That no applicant shall be
cultivated and improved, unless he shall bring action permitted to split the area applied for by him in excess
in the proper court before such action for recovery of the area fixed in this section among his relatives
prescribes and obtains favorable judgment therein, in within the sixth degree of consanguinity or affinity
which case the court shall, upon its decision becoming excepting the applicants married children who are
final, order the payment to the grantee, within a actually occupying the land: Provided, finally, That
reasonable period, of the indemnity fixed by said court copies of said patents issued shall be furnished to the
for the cultivation and improvement. Bureau of Lands for record purposes. No patent or
certificate shall be issued by the District Land Officer patents herein granted shall be subject to the right of
unless the survey of the land covered by such patent or the Government to make such rules and regulations for
certificate, whether made by the Bureau of Lands or by the use of water and the protection of the water supply,
a private surveyor, has been approved by the Director and for other public purposes, as it may deem best for
of Lands. The Director of Lands shall promptly act the public good. Whenever, by priority of possession,
upon all surveys submitted to him for approval and rights to the use of water for mining, agricultural,
return the same to the District Land Officer within manufacturing, or other purposes have vested and
ninety days after receipt of such surveys by his office. accrued, and the same are recognized and
In case of disapproval, the Director of Lands shall state acknowledged by the local customs, or by the laws and
the reasons therefor. Any person aggrieved by the decisions of the courts, the possessors and owners of
decision or action of the District Land Officer may, such vested rights shall be maintained and protected in
within thirty days from receipt of the copy of the said the same, and all patents granted under this Act shall
decision, appeal to the Director of Lands. Such patents be subject to any vested and accrued rights to ditches
or certificates shall be effective only for the purposes and reservoirs used in connection with such water
defined in Section one hundred and twentytwo of the rights as may have been acquired in the manner above
land Registration Act, and actual conveyance of the described prior to April eleven, eighteen hundred and
land shall be effected only as provided in said section. ninety-nine.
All surveys pending approval by the Director of Lands Sec. 114. There is hereby reserved from the operation
at the time this Act takes effect shall be acted upon by of all patents, certificates, entries, and grants by the
him within ninety days from the effectivity of this Act. Government authorized under this Act the right to use
Section108. No patent shall issue nor shall any for the purposes of power any flow of water in any
concession or contract be finally approved unless the stream running through or by the land granted, the
land has been surveyed and an accurate plat made convertible power from which at ordinary low water
thereof by the Bureau of Lands. exceeds fifty horse power. Where the convertible
Sec. 109. In no case shall any land be granted under the power in any stream running through or by land
provisions of this Act when this affects injuriously the granted under the authority of this Act thus exceeds
use of any adjacent land or of the waters, rivers, creeks, fifty horsepower, and there is no means of using such
foreshore, roads, or roadsteads, or vest the grantee with power except by the occupation of a part of the land
other valuable rights that may be detrimental to the granted under authority of this Act, then so much land
public interest. as is reasonably necessary for the mill site or site for
Sec. 110. Patents or certificates issued under the the power house, and for a suitable dam and site for
provisions of this Act shall not include nor convey the massing the water, is hereby excepted from such
title to any gold, silver, copper, iron, or other metals or grants, not exceeding four hectares, and a right of way
minerals, or other substances containing minerals, to the nearest public highway from the land thus
guano, gums, precious stones, coal, or coal oil excepted, and also a right of way for the construction
contained in lands granted thereunder. These shall and maintenance of such flumes, aqueducts, wires,
remain to be property of the State. poles, or order conduits as may be needed in conveying
Sec. 111. All persons receiving title to lands under the the water to the point where its fall will yield the
provisions of this Act shall hold such lands subject to greatest power, or the power from the point of
the provisions hereof and to the same public servitudes conversion to the point of use, is reserved as a
as exist upon lands owned by private persons, servitude or easement upon the land granted by
including those with reference to the littoral of the sea authority of this Act: Provided, however, That when
and the banks of navigable rivers or rivers upon which the Government or any concessionaire of the
rafting may be done. Government shall take possession of the land under
Sec. 112. Said land shall further be subject to a right- this section which a grantee under this Act shall have
of-way not exceeding sixty (60) meters in width for paid for, supposing it to be subject to grant under this
public highways, railroads, irrigation ditches, Act, said grantee shall be entitled to indemnity from
aqueducts, telegraph and telephone lines and similar the Government or the concessionaire, as the case may
works as the Government or any public or quasipublic be, in the amount, if any, paid by him to the
service or enterprise, including mining or forest Government for the land taken from him by virtue of
concessionaires, may reasonably require for carrying this section: And provided, further, That with respect
on their business, with damages for the improvements to the flow of water, except for converting the same
only. 77 into power exceeding fifty horse power, said grantee
Sec. 113. The beneficial use of water shall be the basis, shall be entitled to the same use of the water flowing
the measure, and the limit of all rights thereto, and the through or along his land that other private owners
enjoy under the law, subject to the governmental Sec. 119. Every conveyance of land acquired under the
regulation provided in the previous section. Water free patent or homestead provisions, when proper,
power privileges in which the convertible power at shall be subject to repurchase by the applicant, his
ordinary low water shall exceed fifty horse power shall widow, or legal heirs, within a period of five years
be disposed of only upon terms established by an Act from the date of the conveyance.
of the Assembly concerning the use, lease or Sec. 120. Conveyance and encumbrance made by
acquisition of such water privilege. persons belonging to the so-called non-Christian
Sec. 115. All lands granted by virtue of this Act, Filipinos or national cultural minorities, when proper,
including homesteads upon which final proof has not shall be valid if the person making the conveyance or
been made or approved, shall, even though and while encumbrance is able to read and can understand the
the title remains in the State, be subject to the ordinary language in which the instrument or conveyance or
taxes, which shall be paid by the grantee or the encumbrances is written. Conveyances and
applicant, beginning with the year next following the encumbrances made by illiterate non-Christian or
one in which the homestead application has been filed, literate non-Christians where the instrument of
or the concession has been approved, or the contract conveyance or encumbrance is in a language not
has been signed, as the case may be, on the basis of the understood by the said literate nonChristians shall not
value fixed in such filing, approval or signing of the be valid unless duly approved by the Chairman of the
application, concession or contract. Sec. 116. The Commission on National
appraisal or reappraisal of the lands or improvements Integration.
subject to concession or disposition under this Act Sec. 121. Except with the consent of the grantee and
shall be made by the Director of Lands, with the the approval of the Secretary of Natural Resources, and
approval of the Secretary of Agriculture and solely for commercial, industrial, educational,
Commerce. The Director of Lands may request the religious or charitable purposes or for a right of way,
assistance of the provincial treasurer of the province in no corporation, association, or partnership may acquire
which the land lies or may appoint a committee for or have any right, title, interest, or property right
such purpose in the province or in the municipality in whatsoever to any land granted under the free patent,
which the land lies. In no case shall the appraisal or homestead, or individual sale provisions of this Act or
reappraisal be less than the expense incurred or which to any permanent improvement on such land. The
may be incurred by the Government in connection with provisions of Section 124 of this Act to the contrary
the application or concession, nor shall any reappraisal notwithstanding, any acquisition of such land, rights
be made with an increase of more than one hundred per thereto or improvements thereon by a corporation,
centum upon the appraisal or reappraisal next association, or partnership prior to the promulgation of
preceding. this Decree for the purposes herein stated is deemed
Sec.117. All sums due and payable to the Government valid and binding; Provided, That no final decision of
under this Act, except homestead fees, shall draw reversion of such land to the State has been rendered
simple interest at the rate of four per centum per annum by a court; And Provided, further, That such
from and after the date in which the debtor shall acquisition is approved by the Secretary of Natural
become delinquent. Resources within six (6) months from the effectivity of
Sec. 118. Except in favor of the Government or any of this Decree. Sec. 122. No land originally acquired in
its branches, units, or institutions, lands acquired under any manner under the provisions of this Act, nor any
free patent or homestead provisions shall not be subject permanent improvement on such land, shall
to encumbrance or alienation from the date of the encumbered, alienated, or transferred, except to
approval of the application and for a term of five years persons, corporations, associations, or partnerships
from and after the date of issuance of the patent or who may acquire lands of the public domain under this
grant, nor shall they become liable to the satisfaction Act or to corporations organized in the Philippines
of any debt contracted prior to the expiration of said authorized therefor by their charters.
period, but the improvements or crops on the land may Except in cases of hereditary succession, no land or any
be mortgaged or pledged to qualified persons, portion thereof originally acquired under the free
associations, or corporations. No alienation, transfer, patent, homestead, or individual sale provisions of this
or conveyance of any homestead after five years and Act, or any permanent improvement on such land, shall
before twenty-five years after issuance of title shall be be transferred or assigned to any individual, nor shall
valid without the approval of the Secretary of such land or any permanent improvement thereon be
Agriculture and Commerce, which approval shall not leased to such individual, when the area of said land,
be denied except on constitutional and legal grounds. added to that of his own, shall exceed one hundred and
forty-four hectares. Any transfer, assignment, or lease which right, in so far as it exists under such treaties,
made in violation hereof, shall be null and void. shall continue and subsist in the manner and to the
Sec. 123. No land originally acquired in any manner extent stipulated in said treaties, and only while these
under the provisions of any previous Act, ordinance, are in force, but not thereafter.
royal order, royal decree, or any other provision of law Sec. 126. All public auctions provided for in the
formerly in force in the Philippines with regard to foregoing chapters in the disposition of public lands
public lands, terrenos baldios y realengos, or lands of shall be held, wherever possible, in the province where
any other denomination that were actually or the land is located, or, in the office of the
presumptively of the public domain, or by royal grant Bureau of Lands in Manila
or in any other form, nor any permanent improvement
on such land, shall be encumbered, alienated, or
conveyed, except to persons, corporations or REPUBLIC ACT NO. 8371: "The Indigenous
associations who may acquire land of the public Peoples Rights Act
domain under this Act or to corporate bodies organized
in the Philippines whose charters authorize them to do Sec. 2. Declaration of State Policies.- The State shall
so: Provided, however, That this prohibition shall not recognize and promote all the rights of Indigenous
be applicable to the conveyance or acquisition by Cultural Communities/Indigenous Peoples (ICCs/IPs)
reason of hereditary succession duly acknowledged hereunder enumerated within the framework of the
and legalized by competent courts; Provided, further, Constitution:
That in the event of the ownership of the lands and
improvements mentioned in this section and in the last a) The State shall recognize and promote the rights of
preceding section being transferred by judicial decree ICCs/IPs within the framework of national unity and
to persons, corporations or associations not legally development;
capacitated to acquire the same under the provisions of
this Act, such persons, corporations, or associations b)The State shall protect the rights of ICCs/IPs to their
shall be obliged to alienate said lands or improvements ancestral domains to ensure their economic, social and
to others so capacitated within the precise period of cultural well being and shall recognize the
five years; otherwise, such property shall revert to the applicability of customary laws governing property
Government. rights or relations in determining the ownership and
Sec. 124. Any acquisition, conveyance, alienation, extent of ancestral domain;
transfer, or other contract made or executed in
violation of any of the provisions of sections one c) The State shall recognize, respect
hundred and eighteen, one hundred and twenty, one and protect the rights of ICCs/IPs to
hundred and twenty-one, one hundred and twenty two, preserve and develop their cultures,
and one hundred and twenty-three of this Act shall be traditions and institutions. It shall
unlawful and null and void from its execution and shall consider these rights in the
produce the effect of annulling and cancelling the formulation of national laws and
grant, title, patent, or permit originally issued, policies;
recognized or confirmed, actually or presumptively,
and cause the reversion of the property and its d) The State shall guarantee that
improvements to the State. members of the ICCs/IPs regardless
Sec. 125. The provisions of sections twenty-two, of sex, shall equally enjoy the full
twenty-three, thirty-three, one hundred and twentytwo, measure of human rights and
and one hundred and twenty-three of this Act, and any freedoms without
other provision or provisions restricting or tending to distinctions or discriminations;
restrict the right of persons, corporations, or
associations to acquire, hold, lease, encumber, dispose
e) The State shall take measures, with
of, or alienate land in the Philippines, or permanent
the participation of the ICCs/IPs
improvements thereon, or any interest therein, shall not
concerned, to protect their rights
be applied in cases in which the right to acquire, hold
and guarantee respect for their
or dispose of such land, permanent improvements
cultural integrity, and to ensure that
thereon or interests therein in the Philippines is
members of the ICCs/IPs benefit on
recognized by existing treaties in favor of citizens or
an equal footing from the rights and
subjects of foreign nations and corporations or
opportunities which national laws
associations organized and constituted by the same,
and regulations grant to other individually owned whether
members of the population and alienable and disposable or
otherwise, hunting grounds,
f) The State recognizes its obligations burial grounds, worship
to respond to the strong expression areas, bodies of water,
of the ICCs/IPs for cultural integrity mineral and other natural
by assuring maximum ICC/IP resources, and lands which
participation in the direction of may no longer be exclusively
education, health, as well as other occupied by ICCs/IPs but
services of ICCs/IPs, in order to from which their traditionally
render such services more had access to for their
responsive to the needs and desires subsistence and traditional
of these communities. activities, particularly the
Towards these ends, the State shall institute and home ranges of ICCs/IPs who
establish the necessary mechanisms to enforce and are still nomadic and/or
guarantee the realization of these rights, taking into shifting cultivators;
consideration their customs, traditions, values, beliefs,
their rights to their ancestral domains. b) Ancestral Lands - Subject
to Section 56 hereof, refers to
CHAPTER ll land occupied, possessed and
DEFINITION OF TERMS utilized by individuals,
families and clans who are
Sec. 3. Definition of Terms.- For purposes of this Act, members of the ICCs/IPs
the following terms shall mean: since time immemorial, by
themselves or through their
a)Ancestral Domains - predecessors-ininterest,
Subject to Section 56 hereof, under claims of individual or
refer to all areas generally traditional group
belonging to ICCs/IPs ownership,continuously, to
comprising lands,inland the present except when
waters, coastal areas, and interrupted by war, force
natural resources therein, majeure or displacement by
held under a claim of force, deceit, stealth, or as a
ownership, occupied or consequence of government
possessed by ICCs/IPs, projects and other voluntary
themselves or through their dealings entered into by
ancestors, communally or government and private
individually since time individuals/corporations,
immemorial, continuously to including, but not limited to,
the present except when residential lots, rice terraces
interrupted by war, force or paddies, private forests,
majeure or displacement by swidden farms and tree lots;
force, deceit, stealth or as a c) Certificate of Ancestral
consequence of government Domain Title - refers to a title
projects or any other formally recognizing the
voluntary dealings entered rights of possession and
into by government and ownership of ICCs/IPs over
private individuals, their ancestral domains
corporations, and which are identified and delineated in
necessary to ensure their accordance with this law;
economic, social and cultural
welfare. It shall include d) Certificate of Ancestral
ancestral land, forests, Lands Title - refers to a title
pasture, residential, formally recognizing the
agricultural, and other lands
rights of ICCs/IPs over their i) Indigenous Political Structure -
ancestral lands; refer to organizational and cultural
leadership systems, institutions,
e) Communal Claims - refer relationships, patterns and
to claims on land, resources processed for decision-making and
and rights thereon, belonging participation, identified by ICCs/IPs
to the whole community such as, but not limited to, Council
within a defined territory of Elders, Council of Timuays,
Bodong Holder, or any other
f)Customary Laws - refer to a tribunal or body of similar nature;
body of written and/or
unwritten rules, usages, j) Individual Claims - refer to claims
customs and practices on land and rights thereon which
traditionally and continually have been devolved to individuals,
recognized, accepted and families and clans including, but not
observed by respective limited to, residential lots, rice
ICCs/IPs; terraces or paddies and tree lots;

g) Free and Prior Informed Consent - k) National


as used in this Act shall mean the Commission
consensus of all members of the on
ICCs/IPs to; be determined in Indigenous Peoples (NCIP) - refers to
accordance with their respective the office created under this Act,
customary laws and practices, free which shall be under the Office of the
from any external manipulation, President, and which shall be the
interference and coercion, and primary government agency
obtained after fully disclosing the responsible for the formulation and
intent and scope of the activity, in a implementation of policies, plans and
language an process understandable programs to recognize, protect and
to the community; promote the rights of ICCs/IPs;

h) Indigenous Cultural l)Native Title - refers to pre-conquest


Communities/Indigenous Peoples - refer to a group of rights to lands and domains which,
people or homogenous societies identified by self- as far back as memory reaches, have
ascription and ascription by other, who have been held under a claim of private
continuously lived as organized community on ownership by ICCs/IPs, have never
communally bounded and defined territory, and who been public lands and are thus
have, under claims of ownership since time indisputably presumed to have been
immemorial, occupied, possessed customs, tradition held that way since before the
and other distinctive cultural traits, or who have, Spanish Conquest;
through resistance to political, social and cultural
inroads of colonization, non-indigenous religions and m) Nongovernment Organization -
culture, became historically differentiated from the refers to a private, nonprofit
majority of Filipinos. ICCs/IPs shall likewise include voluntary organization that has been
peoples who are regarded as indigenous on account of organized primarily for the delivery
their descent from the populations which inhabited the of various services to the ICCs/IPs
country, at the time of conquest or colonization, or at and has an established track record
the time of inroads of non-indigenous religions and for effectiveness and acceptability
cultures, or the establishment of present state in the community where it serves;
boundaries, who retain some or all of their own social,
economic, cultural and political institutions, but who n) People's Organization - refers to a
may have been displaced from their traditional private, nonprofit voluntary
domains or who may have resettled outside their organization of members of an
ancestral domains; ICC/IP which is accepted as
representative of such ICCs/IPs;
o) Sustainable Traditional Resource domains shall be recognized and protected. Such rights
Rights - refer to the rights of shall include:
ICCs/IPs to sustainably
use,manage, protect and conserve a) a. Rights of Ownership.- The right to claim
land, air, water, and minerals; b) ownership over lands, bodies of water traditionally and
plants, animals and other actually occupied by ICCs/IPs, sacred places,
organisms; c) collecting, fishing and traditional hunting and fishing grounds, and all
hunting grounds; d) sacred sites; improvements made by them at any time within the
and e) other areas of economic, domains;
ceremonial and aesthetic value in
accordance with their indigenous b. Right to Develop Lands and Natural
knowledge, beliefs, systems and Resources.- Subject to Section 56 hereof, right to
practices; and develop, control and use lands and territories
traditionally occupied, owned, or used; to manage and
p) Time Immemorial - refers to a conserve natural resources within the territories and
period of time when as far back as uphold the responsibilities for future generations; to
memory can go, certain ICCs/IPs benefit and share the profits from allocation and
are known to have occupied, utilization of the natural resources found therein; the
possessed in the concept of owner, right to negotiate the terms and conditions for the
and utilized a defined territory exploration of natural resources in the areas for the
devolved to them, by operation of purpose of ensuring ecological, environmental
customary law or inherited from protection and the conservation measures, pursuant to
their ancestors, in accordance with national and customary laws; the right to an informed
their customs and traditions. and intelligent participation in the formulation and
implementation of any project, government or private,
CHAPTER III that will affect or impact upon the ancestral domains
RIGHTS TO ANCESTRAL DOMAINS and to receive just and fair compensation for any
damages which they sustain as a result of the project;
Sec. 4. Concept of Ancestral Lands/Domains.- and the right to effective measures by the government
Ancestral lands/domains shall include such concepts to prevent any interfere with, alienation and
of territories which cover not only the physical encroachment upon these rights;
environment but the total environment including the
spiritual and cultural bonds to the area which the c. Right to Stay in the Territories- The right to
ICCs/IPs possess, occupy and use and to which they stay in the territory and not be removed therefrom. No
have claims of ownership. ICCs/IPs will be relocated without their free and prior
informed consent, nor through any means other than
Sec. 5. Indigenous Concept of eminent domain. Where relocation is considered
Ownership.- Indigenous concept of ownership sustains necessary as an exceptional measure, such relocation
the view that ancestral domains and all resources found shall take place only with the free and prior informed
therein shall serve as the material bases of their cultural consent of the ICCs/IPs concerned and whenever
integrity. The indigenous concept of ownership possible, they shall be guaranteed the right to return to
generally holds that ancestral domains are the their ancestral domains, as soon as the grounds for
ICC's/IP's private but community property which relocation cease to exist. When such return is not
belongs to all generations and therefore cannot be sold, possible, as determined by agreement or through
disposed or destroyed. It likewise covers sustainable appropriate procedures, ICCs/IPs shall be provided in
traditional resource rights. all possible cases with lands of quality and legal status
at least equal to that of the land previously occupied by
Sec. 6. Composition of Ancestral them, suitable to provide for their present needs and
Lands/Domains.- Ancestral lands and domains shall future development. Persons thus relocated shall
consist of all areas generally belonging to ICCs/IPs as likewise be fully compensated for any resulting loss or
referred under Sec. 3, items (a) and (b) of this Act. injury;

Sec. 7. Rights to Ancestral Domains.- The rights of d. Right in Case of Displacement.- In case
ownership and possession of ICCs/IPs t their ancestral displacement occurs as a result of natural catastrophes,
the State shall endeavor to resettle the displaced
ICCs/IPs in suitable areas where they can have Sec. 9. Responsibilities of ICCs/IPs to their Ancestral
temporary life support system: Provided, That the Domains.- ICCs/IPs occupying a duly certified
displaced ICCs/IPs shall have the right to return to ancestral domain shall have the following
their abandoned lands until such time that the responsibilities:
normalcy and safety of such lands shall be determined: a. Maintain Ecological Balance- To preserve,
Provided, further, That should their ancestral domain restore, and maintain a balanced ecology in the
cease to exist and normalcy and safety of the previous ancestral domain by protecting the flora and fauna,
settlements are not possible, displaced ICCs/IPs shall watershed areas, and other reserves;
enjoy security of tenure over lands to which they have
been resettled: Provided, furthermore, That basic b. Restore Denuded Areas- To actively initiate,
services and livelihood shall be provided to them to undertake and participate in the reforestation of
ensure that their needs are adequately addressed: denuded areas and other development programs and
projects subject to just and reasonable remuneration;
e. Right to Regulate Entry of Migrants.- Right to and
regulate the entry of migrant settlers and organizations
into the domains; c. Observe Laws- To observe and comply with
the provisions of this Act and the rules and regulations
f. Right to Safe and Clean Air and Water.- For for its effective implementation.
this purpose, the ICCs/IPs shall have access to
integrated systems for the management of their inland Sec. 10. Unauthorized and Unlawful Intrusion.-
waters and air space; Unauthorized and unlawful intrusion upon, or use of
any portion of the ancestral domain, or any violation of
g. Right to Claim Parts of Reservations.- The the rights herein before enumerated, shall be
right to claim parts of the ancestral domains which punishable under this law. Furthermore, the
have been reserved for various purposes, except those Government shall take measures to prevent
reserved and intended for common and public welfare nonICCs/IPs from taking advantage of the ICCs/IPs
and service; and customs or lack of understanding of laws to secure
ownership, possession of land belonging to said
h. Right to Resolve Conflict.- Right to resolve ICCs/IPs.
land conflicts in accordance with customary laws of
the area where the land is located, and only in default Sec. 11. Recognition of Ancestral Domain Rights.- The
thereof shall the complaints be submitted to amicable rights of ICCs/IPs to their ancestral domains by virtue
settlement and to the Courts of Justice whenever of Native Title shall be recognized and respected.
necessary. Formal recognition, when solicited by ICCs/IPs
concerned, shall be embodied in a Certificate of
Sec. 8. Rights to Ancestral Lands.- The right of Ancestral Domain Title (CADT), which shall
ownership and possession of the ICCs/IPs, to their recognize the title of the concerned ICCs/IPs over the
ancestral lands shall be recognized and protected. territories identified and delineated.
a. Right to transfer land/property.- Such right
shall include the right to transfer land or property rights Sec. 12. Option to Secure Certificate of Title under
to/among members of the same ICCs/IPs, subject to Commonwealth Act 141, as amended, or the Land
customary laws and traditions of the community Registration Act 496.- Individual members of cultural
concerned. communities, with respect to individually-owned
ancestral lands who, by themselves or through their
b. Right to Redemption.- In cases where it is predecessors-in -interest, have been in continuous
shown that the transfer of land/property rights by possession and occupation of the same in the concept
virtue of any agreement or devise, to a non-member of of owner since the immemorial or for a period of not
the concerned ICCs/IPs is tainted by the vitiated less than thirty (30) years immediately preceding the
consent of the ICCs/IPs,or is transferred for an approval of this Act and uncontested by the members
unconscionable consideration or price, the transferor of the same ICCs/IPs shall have the option to secure
ICC/IP shall have the right to redeem the same within title to their ancestral lands under the provisions of
a period not exceeding fifteen (15) years from the date Commonwealth Act 141, as amended, or the Land
of transfer. Registration Act 496.
For this purpose, said individually-owned ancestral Sec. 17. Right to Determine and Decide Priorities for
lands, which are agricultural in character and actually Development.- The ICCs/IPs shall have the right to
used for agricultural, residential, pasture, and tree determine and decide their own priorities for
farming purposes, including those with a slope of development affecting their lives, beliefs, institutions,
eighteen percent (18%) or more, are hereby classified spiritual well-being, and the lands they own, occupy or
as alienable and disposable agricultural lands. use. They shall participate in the
formulation,implementation and evaluation of
The option granted under this Section shall be policies, plans and programs for national, regional and
exercised within twenty (20) years from the approval local development which may directly affect them.
of this Act.
Sec. 18. Tribal Barangays.- The ICCs/IPs living in
CHAPTER IV contiguous areas or communities where they form the
RIGHT TO SELF-GOVERNANCE AND predominant population but which are located in
EMPOWERMENT municipalities, provinces or cities where they do not
constitute the majority of the population, may form or
Sec. 13. Self-Governance.- The State recognizes the constitute a separate barangay in accordance with the
inherent right of ICCs/IPs to self-governance and Local Government Code on the creation of tribal
selfdetermination and respects the integrity of their barangays.
values, practices and institutions. Consequently, the
State shall guarantee the right of ICCs/IPs to freely Sec. 19. Role of Peoples Organizations.- The State
pursue their economic, social and cultural shall recognize and respect the role of independent
development. ICCs/IPs organizations to enable the ICCs/IPs to
pursue and protect their legitimate and collective
Sec. 14. Support for Autonomous Regions.- The State interests and aspirations through peaceful and lawful
shall continue to strengthen and support the means.
autonomous regions created under the Constitution as
they may require or need. The State shall likewise Sec. 20. Means for Development /Empowerment of
encourage other ICCs/IPs not included or outside ICCs/IPs.- The Government shall establish the means
Muslim Mindanao and the Cordillera to use the form for the full development/empowerment of the
and content of their ways of life as may be compatible ICCs/IPs own institutions and initiatives and, where
with the fundamental rights defined in the Constitution necessary, provide the resources needed therefor.
of the Republic of the Philippines and other
internationally recognized human rights. CHAPTER V
SOCIAL JUSTICE AND HUMAN RIGHTS
Sec. 15. Justice System, Conflict Resolution
Institutions and Peace Building Processes.- The Sec. 21. Equal Protection and Non-discrimination of
ICCs/IPs shall have the right to use their own ICCs/IPs.- Consistent with the equal protection clause
commonly accepted justice systems, conflict of the Constitution of the Republic of the Philippines,
resolution institutions, peace building processes or the Charter of the United Nations, the Universal
mechanisms and other customary laws and practices Declaration of Human Rights including the
within their respective communities and as may be Convention on the Elimination of Discrimination
compatible with the national legal system and with Against Women and International Human Rights Law,
internationally recognized human rights. the State shall, with due recognition of their distinct
characteristics and identity, accord to the members of
Sec. 16. Right to Participate in Decision -Making.- the ICCs/IPs the rights, protections and privileges
ICCs/IPs have the right to participate fully, if they so enjoyed by the rest of the citizenry. It shall extend to
choose, at all levels of decision-making in matters them the same employment rights, opportunities, basic
which may affect their rights, lives and destinies services, educational and other rights and privileges
through procedures determined by them as well as to available to every member of the society. Accordingly,
maintain and develop their own indigenous political the State shall likewise ensure that the employment of
structures. Consequently, the State shall ensure that the any form of force of coersion against ICCs/IPs shall be
ICCs/IPs shall be given mandatory representation in dealt with by law.
policy-making bodies and other local legislative
councils.
The State shall ensure that the fundamental human Sec. 24. Unlawful Acts Pertaining to Employment.- It
rights and freedoms as enshrined in the Constitution shall be unlawful for any person:
and relevant international instruments are guaranteed
also to indigenous women. Towards this end, no a. To discriminate against any ICC/IP with
provision in this Act shall be interpreted so as to result respect to the terms and conditions of employment on
in the diminution of rights and privileges already account of their descent. Equal remuneration shall be
recognized and accorded to women under existing paid to
laws of general application. ICC/IP and non-ICC/IP for work of equal value; and

Sec. 22. Rights during Armed Conflict.- ICCs/IPs have b. To deny any ICC/IP employee any right or
the right to special protection and security in periods benefit herein provided for or to discharge them for the
of armed conflict. The State shall observe international purpose of preventing them from enjoying any of the
standards, in particular, the Fourth Geneva Convention rights or benefits provided under this Act.
of 1949, for the protection of civilian populations in
circumstances of emergency and armed conflict, and Sec. 25. Basic Services.- The ICC/IP have the right to
shall not recruit members of the ICCs/IPs against their special measures for the immediate, effective and
will into armed forces, and in particular, for the use continuing improvement of their economic and social
against other ICCs/IPs; not recruit children of ICCs/IPs conditions, including in the areas of employment,
into the armed forces under any circumstance; nor vocational training and retraining, housing, sanitation,
force indigenous individuals to abandon their lands, health and social security. Particular attention shall be
territories and means of subsistence, or relocate them paid to the rights and special needs of indigenous
in special centers for military purposes under any women, elderly, youth, children and differently-abled
discriminatory condition. persons. Accordingly, the State shall guarantee the
right of ICCs/IPs to government 's basic services which
Sec. 23. Freedom from Discrimination and Right to shall include, but not limited to water and electrical
Equal Opportunity and Treatment.- It shall be the right facilities, education, health and infrastructure.
of the ICCs/IPs to be free from any form of
discrimination, with respect to recruitment and Sec. 26. Women.- ICC/IP women shall enjoy equal
conditions of employment, such that they may enjoy rights and opportunities with men, as regards the
equal opportunities as other occupationally-related social, economic, political and cultural spheres of life.
benefits, informed of their rights under existing labor The participation of indigenous women in the
legislation and of means available to them for redress, decision-making process in all levels, as well as in the
not subject to any coercive recruitment systems, development of society, shall be given due respect and
including bonded labor and other forms of debt recognition.
servitude; and equal treatment in employment for men
and women, including the protection from sexual
The State shall provide full access to education,
harassment.
maternal and child care, health and nutrition, and
housing services to indigenous women. Vocational,
Towards this end, the State shall within the framework technical, professional and other forms of training shall
of national laws and regulations, and in cooperation be provided to enable these women to fully participate
with the ICCs/IPs concerned, adopt special measures in all aspects of social life. As far as possible, the State
to ensure the effective protection with regard to the shall ensure that indigenous women have access to all
recruitment and conditions of employment of persons services in their own languages.
belonging to these communities, to the extent that they
are not effectively protected by the laws applicable to
Sec. 27. Children and Youth.- The State shall recognize
workers in general.
the vital role of the children and youth of ICCs/IPs in
nation-building and shall promote and protect their
ICCs/IPs shall have the right to association and physical, moral, spiritual, moral, spiritual, intellectual
freedom for all trade union activities and the right to and social well-being. Towards this end, the State shall
conclude collective bargaining agreements with support all government programs intended for the
employers' conditions. They shall likewise have the development and rearing of the children and youth of
right not to be subject to working conditions hazardous ICCs/IPs for civic efficiency and establish such
to their health, particularly through exposure to mechanisms as may be necessary for the protection of
pesticides and other toxic substances. the rights of the indigenous children and youth.
Sec. 28. Integrated System of Education.- The State Sec. 33. Rights to Religious, Cultural Sites and
shall, through the NCIP, provide a complete, adequate Ceremonies.- ICCs/IPs shall have the right to manifest,
and integrated system of education, relevant to the practice, develop teach their spiritual and religious
needs of the children and Young people of ICCs/IPs. traditions, customs and ceremonies; the right to
maintain, protect and have access to their religious and
CHAPTER VI cultural sites; the right to use and control of ceremonial
CULTURAL INTEGRITY object; and the right to the repatriation of human
remains. Accordingly, the State shall take effective
Sec. 29. Protection of Indigenous Culture, traditions measures, in cooperation with the burial sites, be
and institutions.- The state shall respect, recognize and preserved, respected and protected. To achieve this
protect the right of the ICCs/IPs to preserve and protect purpose, it shall be unlawful to:
their culture, traditions and institutions. It shall
consider these rights in the formulation of national a. Explore, excavate or make diggings on
plans and policies. archeological sites of the ICCs/IPs for the purpose of
obtaining materials of cultural values without the free
Sec. 30. Educational Systems.- The State shall provide and prior informed consent of the community
equal access to various cultural opportunities to the concerned; and
ICCs/IPs through the educational system, public or
cultural entities, scholarships, grants and other b. Deface, remove or otherwise destroy artifacts
incentives without prejudice to their right to establish which are of great importance to the ICCs/IPs for the
and control their educational systems and institutions preservation of their cultural heritage.
by providing education in their own language, in a
manner appropriate to their cultural methods of Sec. 34. Right to Indigenous Knowledge Systems and
teaching and learning. Indigenous children/youth shall Practices and to Develop own Sciences and
have the right to all levels and forms of education of Technologies.- ICCs/IPs are entitled to the recognition
the State. of the full ownership and control and protection of
Sec. 31. Recognition of Cultural Diversity.- The State their cultural and intellectual rights. They shall have
shall endeavor to have the dignity and diversity of the the right to special measures to control, develop and
cultures, traditions, histories and aspirations of the protect their sciences, technologies and cultural
ICCs/IPs appropriately reflected in all forms of manifestations, including human and other genetic
education, public information and culturaleducational resources, seeds, including derivatives of these
exchange. Consequently, the State shall take effective resources, traditional medicines and health practices,
measures, in consultation with ICCs/IPs concerned, to vital medicinal plants, animals and minerals,
eliminate prejudice and discrimination and to promote indigenous knowledge systems and practices,
tolerance, understanding and good relations among knowledge of the properties of fauna and flora, oral
ICCs/IPs and all segments of society. Furthermore, the traditions, literature, designs, and visual and
Government shall take effective measures to ensure performing arts.
that State-owned media duly reflect indigenous Sec. 35. Access to Biological and Genetic
cultural diversity. The State shall likewise ensure the Resources.Access to biological and genetic resources
participation of appropriate indigenous leaders in and to indigenous knowledge related to the
schools, communities and international cooperative conservation, utilization and enhancement of these
undertakings like festivals, conferences, seminars and resources, shall be allowed within ancestral lands and
workshops to promote and enhance their distinctive domains of the ICCs/IPs only with a free and prior
heritage and values. informed consent of such communities, obtained in
accordance with customary laws of the concerned
Sec. 32. Community Intellectual Rights.- ICCs/IPs community.
have the right to practice and revitalize their own
cultural traditions and customs. The State shall Sec. 36. Sustainable Agro-Technical Development. -
preserve, protect and develop the past, present and The State shall recognize the right of ICCs/IPs to a
future manifestations of their cultures as well as the sustainable agro-technological development and shall
right to the restitution of cultural, intellectual, formulate and implement programs of action for its
religious, and spiritual property taken without their effective implementation. The State shall likewise
free and prior informed consent or in violation of their promote the bio-genetic and resource management
laws, traditions and customs. systems among the ICCs/IPs and shall encourage
cooperation among government agencies to ensure the government agency involved in ICC/IP, at least 35
successful sustainable development of ICCs/IPs. years of age at the time of appointment, and must be of
proven honesty and integrity: Provided, That at least
Sec. 37. Funds for Archeological and Historical Sites. two (2) of the seven (7) Commissioners shall be the
- The ICCs/IPs shall have the right to receive from the members of the Philippine Bar: Provided, further, That
national government all funds especially earmarked or the members of the NCIP shall hold office for a period
allocated for the management and preservation of their of three (3) years, and may be subject to reappointment
archeological and historical sites and artifacts with the for another term: Provided, furthermore, That no
financial and technical support of the national person shall serve for more than two (2) terms.
government agencies. Appointment to any vacancy shall only be for the
unexpired term of the predecessor and in no case shall
CHAPTER VII a member be appointed or designated in a temporary
NATIONAL COMMISSION ON INDIGENOUS or acting capacity: Provided, finally, That the
PEOPLES Chairperson and the Commissioners shall be entitled
(NCIP) to compensation in accordance with the Salary
Standardization Law.
Sec. 38. National Commission on Indigenous Cultural
Communities /Indigenous Peoples (NCCP).- to carry Sec. 42. Removal from Office.- Any member of the
out the policies herein set forth, there shall be created NCIP may be removed from office by the President, on
the National Commission on ICCs/IPs (NCIP), which his own initiative or upon recommendation by any
shall be the primary government agency responsible indigenous community, before the expiration of his
for the formulation and implementation of policies, term for cause and after complying with due process
plans and programs to promote and protect the rights requirement of law.
and well-being of the ICCs/IPs and the recognition of
their ancestral domains as well as their rights thereto. Sec. 43. Appointment of Commissioners.- The
President shall appoint the seven (7) Commissioners of
Sec. 39. Mandate.- The NCIP shall protect and the NCIP within ninety (90) days from the effectivity
promote the interest and well-being of the ICCs/IPs of this Act.
with due regard to their beliefs, customs, traditions and
institutions. Sec. 44. Powers and Functions.- To accomplish its
mandate, the NCIP shall have the following powers,
Sec. 40. Composition.- The NCIP shall be an jurisdiction and function:
independent agency under the Office of the President
and shall be composed of seven (7) Commissioners a) To serve as the primary government agency through
belonging to ICCs/IPs, one (1) of whom shall be the which ICCs/IPs can seek government assistance and
Chairperson. The Commissioners shall be appointed as the medium, thorough which such assistance may
by the President of the Philippines from a list of be extended;
recommendees submitted by authentic ICCs/IPs:
Provided, That the seven (7) Commissioners shall be b) To review and assess the conditions of ICCs/IPs
appointed specifically from each of the following including existing laws and policies pertinent
ethnographic areas: Region I and the Cordilleras; thereto and to propose relevant laws and policies to
Region II; the rest of Luzon; Island Groups including address their role in national development;
Mindoro, Palawan, Romblon, Panay and the rest of the
Visayas; Northern and Western Mindanao; Southern c) To formulate and implement policies, plans,
and Eastern Mindanao; and Central Mindanao: programs and projects for the economic, social and
Provided, That at least two (2) of the seven (7) cultural development of the ICCs/IPs and to monitor
Commissioners shall be women. the implementation thereof;

Sec. 41. Qualifications, Tenure, Compensation.- The d) To request and engage the services and support of
Chairperson and the six (6) Commissioners must be experts from other agencies of government or
natural born Filipino citizens, bonafide members of employ private experts and consultants as may be
ICCs/IPs as certified by his/her tribe, experienced in required in the pursuit of its objectives;
ethnic affairs and who have worked for at least ten (10)
years with an ICC/IP community and/or any e) To issue certificate of ancestral land/domain title;
f) Subject to existing laws, to enter into contracts, p) To exercise such other powers and functions as may
agreements, or arrangement, with government or be directed by the President of the Republic of the
private agencies or entities as may be necessary to Philippines; and
attain the objectives of this Act, and subject to the
approval of the President, to obtain loans from q) To represent the Philippine ICCs/IPs in all
government lending institutions and other lending international conferences and conventions dealing
institutions to finance its programs; with indigenous peoples and other related concerns.

g) To negotiate for funds and to accept grants, Sec. 45. Accessibility and Transparency.- Subject to
donations, gifts and/or properties in whatever form such limitations as may be provided by law or by rules
and from whatever source, local and international, and regulations promulgated pursuant thereto, all
subject to the approval of the President of the official records, documents and papers pertaining to
Philippines, for the benefit of ICCs/IPs and official acts, transactions or decisions, as well as
administer the same in accordance with the terms research data used as basis for policy development of
thereof; or in the absence of any condition, in such the Commission shall be made accessible to the public.
manner consistent with the interest of ICCs/IPs as
well as existing laws; Sec.46. Officers within the NCIP.- The NCIP shall
have the following offices which shall be responsible
h) To coordinate development programs and projects for the implementation of the policies herein after
for the advancement of the ICCs/IPs and to oversee provided:
the proper implementation thereof;
a. Ancestral Domains Office - The Ancestral
i) To convene periodic conventions or assemblies of Domain Office shall be responsible for the
IPs to review, assess as well as propose policies or identification, delineation and recognition of ancestral
plans; land/domains. It shall also be responsible for the
management of ancestral lands/domains in accordance
j) To advise the President of the Philippines on all with the master plans as well as the implementation of
matters relating to the ICCs/IPs and to submit within the ancestral domain rights of the ICCs/IPs as provided
sixty (60) days after the close of each calendar year, in Chapter III of this Act. It shall also issue, upon the
a report of its operations and achievements; free and prior informed consent of the ICCs/IPs
concerned, certification prior to the grant of any
k) To submit to Congress appropriate legislative license, lease or permit for the exploitation of natural
proposals intended to carry out the policies under resources affecting the interests of ICCs/IPs in
this Act; protecting the territorial integrity of all ancestral
domains. It shall likewise perform such other functions
l) To prepare and submit the appropriate budget to the as the Commission may deem appropriate and
Office of the President; necessary;

m) To issue appropriate certification as a precondition b. Office on Policy, Planning and Research -


to the grant of permit, lease, grant, or any other The Office on Policy, Planning and Research shall be
similar authority for the disposition, utilization, responsible for the formulation of appropriate policies
management and appropriation by any private and programs for ICCs/IPs such as, but not limited to,
individual, corporate entity or any government the development of a Five-Year Master Plan for the
agency, corporation or subdivision thereof on any ICCs/IPs. Such plan shall undergo a process such that
part or portion of the ancestral domain taking into every five years, the Commission shall endeavor to
consideration the consensus approval of the assess the plan and make ramifications in accordance
ICCs/IPs concerned; with the changing situations. The Office shall also
undertake the documentation of customary law and
shall establish and maintain a Research Center that
n) To decide all appeals from the decisions and acts of
would serve as a depository of ethnographic
all the various offices within the Commission:
information for monitoring, evaluation and policy
formulation. It shall assist the legislative branch of the
o) To promulgate the necessary rules and regulations national government in the formulation of appropriate
for the implementation of this Act; legislation benefiting ICCs/IPs.
c. Office of Education, Culture and Health - The making. It shall likewise ensure that the basic human
Office on Culture, Education and Health shall be rights, and such other rights as the NCIP may
responsible for the effective implementation of the determine, subject to existing laws, rules and
education, cultural and related rights as provided in regulations are protected and promoted;
this Act. It shall assist, promote and support
community schools, both formal and non-formal, for f. Administrative Office - The Administrative
the benefit of the local indigenous community, Office shall provide the NCIP with economical,
especially in areas where existing educational facilities efficient and effective services pertaining to personnel,
are not accessible to members of the indigenous group. finance, records, equipment, security, supplies, and
It shall administer all scholarship programs and other related services. It shall also administer the Ancestral
educational rights intended for ICC/IP beneficiaries in Domains Fund; and
coordination with the Department of Education,
Culture and Sports and the Commission on Higher g. Legal Affairs Office - There shall be a Legal
Education. It shall undertake, within the limits of Affairs Office which shall advice the NCIP on all legal
available appropriation, a special program which matters concerning ICCs/IPs and which shall be
includes language and vocational training, public responsible for providing ICCs/IPs with legal
health and family assistance program and related assistance in litigation involving community interest.
subjects. It shall conduct preliminary investigation on the basis
of complaints filed by the ICCs/IPs against a natural or
It shall also identify ICCs/IPs with potential training in juridical person believed to have violated ICCs/IPs
the health profession and encourage and assist them to rights. On the basis of its findings, it shall initiate the
enroll in schools of medicine, nursing, physical filing of appropriate legal or administrative action to
therapy and other allied courses pertaining to the health the NCIP.
profession.
Towards this end, the NCIP shall deploy a Sec. 47. Other Offices.- The NCIP shall have the power
representative in each of the said offices who shall to create additional offices as it may deem necessary
personally perform the foregoing task and who shall subject to existing rules and regulations.
receive complaints from the ICCs/IPs and compel
action from appropriate agency. It shall also monitor
Sec. 48. Regional and Field Offices.- Existing regional
the activities of the National Museum and other similar
and field offices shall remain to function under the
government agencies generally intended to manage
strengthened organizational structure of the NCIP.
and preserve historical and archeological artifacts of
Other field office shall be created wherever
the ICCs /IPs and shall be responsible for the
appropriate and the staffing pattern thereof shall be
implementation of such other functions as the
determined by the NCIP: Provided, That in provinces
NCIP may deem appropriate and necessary;
where there are ICCs/IPs but without field offices, the
NCIP shall establish field offices in said provinces.
d. Office on Socio-Economic Services and
Special Concerns - The Office on Socio-Economic
Sec. 49. Office of the Executive Director.- The NCIP
Services and Special Concerns shall serve as the Office
shall create the Office of the Executive Director which
through which the NCIP shall coordinate with
shall serve as its secretariat. The office shall be headed
pertinent government agencies specially charged with
by an Executive Director who shall be appointed by the
the implementation of various basic socioeconomic
President of the Republic of the Philippines upon the
services, policies, plans and programs affecting the
recommendation of the NCIP on a permanent basis.
ICCs/IPs to ensure that the same are properly and
The staffing pattern of the office shall be determined
directly enjoyed by them. It shall also be responsible
by the NCIP subject to existing rules and regulations.
for such other functions as the NCIP may deem
appropriate and necessary;
Sec. 50. Consultative Body.- A body consisting of the
traditional leaders, elders and representatives from the
e. Office of Empowerment and Human Rights -
women and youth sectors of the different ICCs/IPs
The Office of Empowerment and Human Rights shall
shall be constituted by the NCIP from the time to time
ensure that indigenous socio- political, cultural and
to advise it on matters relating to the problems,
economic rights are respected and recognized. It shall
aspirations and interests of the ICCs/IPs.
ensure that capacity building mechanisms are
instituted and ICCs/IPs are afforded every opportunity,
if they so choose, to participate in all level decision- CHAPTER VIII
DELINEATION AND RECOGNITION OF d. Proof required - Proof of Ancestral Domain
ANCESTRAL DOMAINS Claims shall include the testimony of elders or
community under oath, and other documents directly
Sec. 51. Delineation and Recognition of Ancestral or indirectly attesting to the possession or occupation
Domains.- Self-delineation shall be guiding principle of the area since time immemorial by such ICCs/IPs in
in the identification and delineation of ancestral the concept of owners which shall be any one (1) of the
domains. As such, the ICCs/IPs concerned shall have following authentic documents:
a decisive role in all the activities pertinent thereto. The
Sworn Statement of the Elders as to the Scope of the
territories and agreements/pacts made with 1. Written accounts of the ICCs/IPs customs and
neighboring ICCs/IPs, if any, will be essential to the traditions;
determination of these traditional territories. The
Government shall take the necessary steps to identify 2. Written accounts of the ICCs/IPs political structure
lands which the ICCs/IPs concerned traditionally and institution;
occupy and guarantee effective protection of their
rights of ownership and possession thereto. Measures 3. Pictures showing long term occupation such as those
shall be taken in appropriate cases to safeguard the of old improvements, burial grounds, sacred places
rights of the ICCs/IPs concerned to land which may no and old villages;
longer be exclusively occupied by them, but to which
they have traditionally had access for their subsistence
4. Historical accounts, including pacts and agreements
and traditional activities, particularly of ICCs/IPs who
concerning boundaries entered into by the ICCs/IPs
are still nomadic and/or shifting cultivators.
concerned with other ICCs/IPs;
Sec. 52. Delineation Process.- The identification and
5. Survey plans and sketch maps;
delineation of ancestral domains shall be done in
accordance with the following procedures:
6. Anthropological data;
a. Ancestral Domains Delineated Prior to this
Act - The provisions hereunder shall not apply to 7. Genealogical surveys;
ancestral domains/lands already delineated according
to DENR Administrative Order No. 2, series of 1993, 8. Pictures and descriptive histories of traditional
nor to ancestral lands and domains delineated under communal forests and hunting grounds;
any other community/ancestral domain program prior
to the enactment of his law. ICCs/IPs enactment of this 9. Pictures and descriptive histories of traditional
law shall have the right to apply for the issuance of a landmarks such as mountains, rivers, creeks, ridges,
Certificate of Ancestral Domain Title (CADT) over the hills, terraces and the like; and
area without going through the process outlined
hereunder; 10.Write-ups of names and places derived from the
native dialect of the community.
b. Petition for Delineation - The process of
delineating a specific perimeter may be initiated by the e. Preparation of Maps - On the basis of such
NCIP with the consent of the ICC/IP concerned, or investigation and the findings of fact based thereon, the
through a Petition for Delineation filed with the NCIP, Ancestral Domains Office of the NCIP shall prepare a
by a majority of the members of the ICCs/IPs; perimeter map, complete with technical descriptions,
c. Delineation Paper - The official delineation and a description of the natural features and landmarks
of ancestral domain boundaries including census of all embraced therein;
community members therein, shall be immediately
undertaken by the Ancestral Domains Office upon f. Report of Investigation and Other Documents
filing of the application by the ICCs/IPs concerned. - A complete copy of the preliminary census and a
Delineation will be done in coordination with the report of investigation, shall be prepared by the
community concerned and shall at all times include Ancestral
genuine involvement and participation by the members Domains Office of the NCIP;
of the communities concerned; g. Notice and Publication - A copy of each
document, including a translation in the native
language of the ICCs/IPs concerned shall be posted in
a prominent place therein for at least fifteen (15) days. and certificates of ancestral lands titles before the
A copy of the document shall also be posted at the Register of Deeds in the place where the property is
local, provincial and regional offices of the NCIP, and situated.
shall be published in a newspaper of general
circulation once a week for two (2) consecutive weeks Sec. 53. Identification, Delineation and Certification of
to allow other claimants to file opposition thereto Ancestral Lands.-
within fifteen (15) days from the date of such a. The allocation of lands within any ancestral
publication: Provided, That in areas where no such domain to individual or indigenous corporate (family
newspaper exists, broadcasting in a radio station will or clan) claimants shall be left to the ICCs/IPs
be a valid substitute: Provided, further, That mere concerned to decide in accordance with customs and
posting shall be deemed sufficient if both newspaper traditions;
and radio station are not available;
b. Individual and indigenous corporate
h. Endorsement to NCIP - Within fifteen (15) claimants of ancestral lands which are not within
days from publication, and of the inspection process, ancestral domains, may have their claims officially
the Ancestral Domains Office shall prepare a report to established by filing applications for the identification
the NCIP endorsing a favorable action upon a claim and delineation of their claims with the Ancestral
that is deemed to have sufficient proof. However, if the Domains Office. An individual or recognized head of
proof is deemed insufficient, the Ancestral Domains a family or clan may file such application in his behalf
Office shall require the submission of additional or in behalf of his family or clan, respectively;
evidence: Provided, That the Ancestral Domains
Office shall reject any claim that is deemed patently c. Proofs of such claims shall accompany the
false or fraudulent after inspection and verification: application form which shall include the testimony
Provided, further, That in case of rejection, the under oath of elders of the community and other
Ancestral Domains Office shall give the applicant due documents directly or indirectly attesting to the
notice, copy furnished all concerned, containing the possession or occupation of the areas since time
grounds for denial. The denial shall be appealable to immemorial by the individual or corporate claimants
the NCIP: Provided, furthermore, That in cases where in the concept of owners which shall be any of the
there are conflicting claims, the Ancestral Domains authentic documents enumerated under Sec. 52 (d) of
Office shall cause the contending parties to meet and this act, including tax declarations and proofs of
assist them in coming up with a preliminary resolution payment of taxes;
of the conflict, without prejudice to its full adjudication
according to the selection below.
d. The Ancestral Domains Office may require
from each ancestral claimant the submission of such
i. Turnover of Areas Within Ancestral Domains other documents, Sworn Statements and the like,
Managed by Other Government Agencies - The which in its opinion, may shed light on the veracity of
Chairperson of the NCIP shall certify that the area the contents of the application/claim;
covered is an ancestral domain. The secretaries of the
Department of Agrarian Reform, Department of
e. Upon receipt of the applications for
Environment and Natural Resources, Department of
delineation and recognition of ancestral land claims,
the Interior and Local Government, and Department of
the Ancestral Domains Office shall cause the
Justice, the Commissioner of the National
publication of the application and a copy of each
Development Corporation, and any other government
document submitted including a translation in the
agency claiming jurisdiction over the area shall be
native language of the ICCs/IPs concerned in a
notified thereof. Such notification shall terminate any
prominent place therein for at least fifteen (15) days. A
legal basis for the jurisdiction previously claimed;
copy of the document shall also be posted at the local,
provincial, and regional offices of the NCIP and shall
j. Issuance of CADT - ICCs/IPs whose ancestral be published in a newspaper of general circulation
domains have been officially delineated and once a week for two (2) consecutive weeks to allow
determined by the NCIP shall be issued a CADT in the other claimants to file opposition thereto within fifteen
name of the community concerned, containing a list of (15) days from the date of such publication: Provided,
all those identified in the census; and That in areas where no such newspaper exists,
broadcasting in a radio station will be a valid
k. Registration of CADTs - The NCIP shall substitute: Provided, further, That mere posting shall
register issued certificates of ancestral domain titles
be deemed sufficient if both newspapers and radio in the harvesting, extraction, development or
station are not available exploitation of any natural resources within the
ancestral domains. A non-member of the ICCs/IPs
f. Fifteen (15) days after such publication, the concerned may be allowed to take part in the
Ancestral Domains Office shall investigate and inspect development and utilization of the natural resources
each application, and if found to be meritorious, shall for a period of not exceeding twenty-five (25) years
cause a parcellary survey of the area being claimed. renewable for not more than twenty-five (25) years:
The Ancestral Domains office shall reject any claim Provided, That a formal and written agreement is
that is deemed patently false or fraudulent after entered into with the ICCs/IPs concerned or that the
inspection and verification. In case of rejection, the community, pursuant to its own decision making
Ancestral Domains office shall give the applicant due process, has agreed to allow such operation: Provided,
notice, copy furnished all concerned, containing the finally, That the all extractions shall be used to
grounds for denial. The denial shall be appealable to facilitate the development and improvement of the
the NCIP. In case of conflicting claims among ancestral domains.
individual or indigenous corporate claimants, the
Ancestral domains Office shall cause the contending Sec. 58. Environmental Consideration.- Ancestral
parties to meet and assist them in coming up with a domains or portion thereof, which are found necessary
preliminary resolution of the conflict, without for critical watersheds, mangroves wildlife
prejudice to its full adjudication according to Sec. 62 sanctuaries, wilderness, protected areas, forest cover,
of this Act. In all proceedings for the identification or or reforestation as determined by the appropriate
delineation of the ancestral domains as herein agencies with the full participation of the ICCs/IPs
provided, the Director of Lands shall represent the concerned shall be maintained, managed and
interest of the Republic of the developed for such purposes. The ICCs/IPs concerned
Philippines; and shall be given the responsibility to maintain, develop,
protect and conserve such areas with the full and
g. The Ancestral Domains Office shall prepare effective assistance of the government agencies.
and submit a report on each and every application Should the ICCs/IPs decide to transfer the
surveyed and delineated to the NCIP, which shall, in responsibility over the areas, said decision must be
turn, evaluate or corporate (family or clan) claimant made in writing. The consent of the ICCs/IPs should
over ancestral lands. be arrived at in accordance with its customary laws
without prejudice to the basic requirement of the
Sec. 54. Fraudulent Claims.- The Ancestral Domains existing laws on free and prior informed consent:
Office may, upon written request from the ICCs/IPs, Provided, That the transfer shall be temporary and will
review existing claims which have been fraudulently ultimately revert to the ICCs/IPs in accordance with a
acquired by any person or community. Any claim program for technology transfer: Provided, further,
found to be fraudulently acquired by, and issued to, That no ICCs/IPs shall be displaced or relocated for the
any person or community may be cancelled by the purpose enumerated under this section without the
NCIP after due notice and hearing of all parties written consent of the specific persons authorized to
concerned. give consent.

Sec. 55. Communal Rights.- Subject to Section 56 Sec. 59. Certification Precondition.- all department
hereof, areas within the ancestral domains, whether and other governmental agencies shall henceforth be
delineated or not, shall be presumed to be communally strictly enjoined from issuing, renewing, or granting
held: Provide, That communal rights under this Act any concession, license or lease, or entering into any
shall not be construed as co-ownership as provided in production-sharing agreement, without prior
Republic Act. No. 386, otherwise known as the New certification from the NCIP that the area affected does
Civil Code. not overlap with any ancestral domain. Such certificate
shall only be issued after a field-based investigation is
conducted by the Ancestral Domain Office of the area
Sec. 56. Existing Property Rights Regimes.- Property
concerned: Provided, That no certificate shall be issued
rights within the ancestral domains already existing
by the NCIP without the free and prior informed and
and/or vested upon effectivity of this Act, shall be
written consent of the ICCs/IPs concerned: Provided,
recognized and respected.
further, That no department, government agency or
governmentowned or -controlled corporation may
Sec. 57. Natural Resources within Ancestral issue new concession, license, lease, or production
Domains.- The ICCs/IPs shall have the priority rights
sharing agreement while there is pending application succession and settlement of land disputes. Any doubt
CADT: Provided, finally, That the ICCs/IPs shall have or ambiguity in the application of laws shall be
the right to stop or suspend, in accordance with this resolved in favor of the ICCs/IPs.
Act, any project that has not satisfied the requirement
of this consultation process. Sec. 64. Remedial Measures.- Expropriation may be
resorted to in the resolution of conflicts of interest
Sec.60. Exemption from Taxes.- All lands certified to following the principle of the "common good". The
be ancestral domains shall be exempt from real NCIP shall take appropriate legal action for the
property taxes, specially levies, and other forms of cancellation of officially documented titles which were
exaction except such portion of the ancestral domains acquired illegally: Provided, That such procedure shall
as are actually used for large-scale agriculture, ensure that the rights of possessors in good faith shall
commercial forest plantation and residential purposes be respected: Provided, further, That the action for
and upon titling by other by private person: Provided, cancellation shall be initiated within two (2) years from
that all exactions shall be used to facilitate the the effectivity of this Act: Provided, finally, That the
development and improvement of the ancestral action for reconveyance shall be a period of ten (10)
domains. years in accordance with existing laws.

Sec. 61. Temporary Requisition Powers.- Prior to the CHAPTER IX


establishment of an institutional surveying capacity JURISDICTION AND PROCEDURES FOR
whereby it can effectively fulfill its mandate, but in no ENFORCEMENT OF RIGHTS
case beyond three (3) years after its creation, the NCIP
is hereby authorized to request the Department of Sec. 65. Primary of Customary Laws and Practices.-
Environment and Natural Resources (DENR) survey When disputes involve ICCs/IPs, customary laws and
teams as well as other equally capable private survey practices shall be used to resolve the dispute.
teams, through a Memorandum of Agreement (MOA),
to delineate ancestral domain perimeters. The DENR Sec. 66. Jurisdiction of the NCIP.- The NCIP, through
Secretary shall accommodate any such request within its regional offices, shall have jurisdiction over all
one (1) month of its issuance: Provided, That the claims and disputes involving rights of ICCs/IPs;
Memorandum of Agreement shall stipulate, among Provided, however, That no such dispute shall be
others, a provision for technology transfer to the NCIP. brought to the NCIP unless the parties have exhausted
all remedies provided under their customary laws. For
Sec. 62. Resolution of Conflicts.- In cases of this purpose, a certification shall be issued by the
conflicting interest, where there are adverse claims Council of Elders/Leaders who participated in the
within the ancestral domains as delineated in the attempt to settle the dispute that the same has not been
survey plan, and which cannot be resolved, the NCIP resolved, which certification shall be a condition
shall hear and decide, after notice to the proper parties, precedent to the filing of a petition with the NCIP.
the disputes arising from the delineation of such
ancestral domains: Provided, That if the dispute is Sec. 67. Appeals to the Court of Appeals.- Decisions of
between and/or among ICCs/IPs regarding the the NCIP shall be appealable to the Court of Appeals
traditional boundaries of their respective ancestral by way of a petition for review.
domains, customary process shall be followed. The
NCIP shall promulgate the necessary rules and Sec. 68. Execution of Decisions, Awards,
regulations to carry out its adjudicatory functions: Orders.- Upon expiration of the period here provided
Provided, further, That in any decision, order, award or and no appeal is perfected by any of the contending
ruling of the NCIP on any ancestral domain dispute or parties, the Hearing Officer of the NCIP, on its own
on any matter pertaining to the application, initiative or upon motion by the prevailing party, shall
implementation, enforcement and interpretation of this issue a writ of execution requiring the sheriff or the
Act may be brought for Petition for Review to the proper officer to execute final decisions, orders or
Court of Appeals within fifteen (15) days from receipt awards of the Regional Hearing Officer of the NCIP.
of a copy thereof.
Sec. 69. Quasi-Judicial Powers of the NCIP.- The
Sec. 63. Applicable Laws.- Customary laws, traditions NCIP shall have the power and authority:
and practices of the ICCs/IPs of the land where the
conflict arises shall be applied first with respect to
property rights, claims and ownerships, hereditary
a. To promulgate rules and regulations donations, endowments shall be exempted from
governing the hearing and disposition of cases filed income or gift taxes and all other taxes, charges or fees
before it as well as those pertaining to its internal imposed by the government or any political
functions and such rules and regulations as may be subdivision or instrumentality thereof.
necessary to carry out the purposes of this Act;
CHAPTER XI
b. To administer oaths, summon the parties to a PENALTIES
controversy, issue subpoenas requiring the attendance
and testimony of witnesses or the production of such Sec. 72. Punishable Acts and Applicable
books, papers, contracts, records, agreements and Penalties.- Any person who commits violation of any
other document of similar nature as may be material to of the provisions of this Act, such as, but not limited
a just determination of the matter under investigation to, authorized and/or unlawful intrusion upon any
or hearing conducted in pursuance of this Act; ancestral lands or domains as stated in Sec. 10, Chapter
III, or shall commit any of the prohibited acts
c. To hold any person in contempt, directly or mentioned in Sections 21 and 24, Chapter V, Section
indirectly, and impose appropriate penalties therefor; 33, Chapter VI hereof, shall be punished in accordance
and with the customary laws of the ICCs/IPs concerned:
Provided, That no such penalty shall be cruel,
d. To enjoin any or all acts involving or arising degrading or inhuman punishment: Provided, further,
from any case pending therefore it which, if not That neither shall the death penalty or excessive fines
restrained forthwith, may cause grave or irreparable be imposed. This provision shall be without prejudice
damage to any of the parties to the case or seriously to the right of any ICCs/IPs to avail of the protection
affect social or economic activity. of existing laws. In which case, any person who
violates any provision of this Act shall, upon
conviction, be punished by imprisonment of not less
Sec. 70. No restraining Order or Preliminary
than nine (9) months but not more than twelve (12)
Injunction - No inferior court of the Philippines shall
years or a fine not less than One hundred thousand
have the jurisdiction to issue any restraining order or
pesos (P100,000) nor more than Five hundred
writ of preliminary injunction against the NCIP or any
thousand pesos (P500,000) or both such fine and
of its duly authorized or designated offices in any case,
imprisonment upon the discretion of the court. In
dispute or controversy to, or interpretation of this Act
addition, he shall be obliged to pay to the ICCs/IPs
and other pertinent laws relating to ICCs/IPs and
concerned whatever damage may have been suffered
ancestral domains.
by the latter as a consequence of the unlawful act.
CHAPTER IX
Sec. 73. Persons Subject to Punishment.- If the
ANCESTRAL DOMAINS FUND
offender is a juridical person, all officers such as, but
not limited to, its president, manager, or head of office
Sec. 71. Ancestral Domains Fund.- There is hereby
responsible for their unlawful act shall be criminally
created a special fund, to be known as the Ancestral
liable therefor, in addition to the cancellation of
Domains Fund, an initial amount of the One Hundred
certificates of their registration and/or license:
thirty million pesos(P130,000,000) to cover
Provided, That if the offender is a public official, the
compensation for expropriated lands, delineation and
penalty shall include perpetual disqualification to hold
development of ancestral domains. An amount of Fifty
public office.
million pesos (P50,000,000) shall be sourced from the
gross income of the Philippine Charity Sweepstakes
Office (PCSO) from its lotto operation, Ten millions
pesos (P10,000,000) from the gross receipts of the CHAPTER XII
travel tax of the preceding year, the fund of the Social MERGER OF THE OFFICE FOR NORTHERN
Reform Council intended for survey and delineation of CULTURAL
ancestral lands/domains, and such other source as the COMMUNITIES (ONCC) AND THE OFFICE FOR
government may be deem appropriate. Thereafter such SOUTHERN CULTURAL COMMUNITIES (OSCC)
amount shall be included in the annual General
Appropriations Act. Foreign as well as local funds Sec. 74. Merger of ONCC/OSCC.- The Office for
which are made available for the ICCs/IPs through the Northern Cultural Communities (ONCC) and the
government of the Philippines shall be coursed through Office of Southern Cultural Communities (OSCC),
the NCIP. The NCIP may also solicit and receive created under Executive Order Nos. 122-B and 122-C
respectively, are hereby merged as organic offices of commissioners and an ICCs/IPs representative from
the NCIP and shall continue to function under a each of the first and second level employees
revitalized and strengthened structures to achieve the association in the Offices for Northern and Southern
objectives of the NCIP: Provided, That the positions of Cultural Communities (ONCC/OSCC),
Regional Directors and below, are hereby phased-out nongovernment organizations (NGOs) who have
upon the effectivity of this Act: Provided, further, That served the community for at least five (5) years and
officials and employees of the phasedout offices who peoples organizations (POs) with at least five (5) years
may be qualified may apply for reappointment with the of existence. They shall be guided by the criteria of
NCIP and may be given prior rights in the filing up of retention and appointment to be prepared by the
the newly created positions of NCIP, subject to the consultative body and by the pertinent provisions of
qualifications set by the Placement Committee: the civil service law.
Provided, furthermore, That in the case where an
indigenous person and a nonindigenous person with
similar qualifications apply for the same position, Art I, Sec 21, 22 of the Constitution
priority shall be given to the former. Officers and
employees who are to be phased-out as a result of the Section 21. The State shall promote comprehensive
merger of their offices shall be entitled to gratuity a rural development and agrarian reform.
rate equivalent to one and a half (1 1/2) months salary
for every year of continuous and satisfactory service Section 22. The State recognizes and promotes the
rendered or the equivalent nearest fraction thereof rights of indigenous cultural communities within the
favorable to them on the basis of the highest salary framework of national unity and development.
received. If they are already entitled to retirement
benefits or the gratuity herein provided. Officers and Art XII, Secs. 2, 3, 4, 5, 7 and 8 of the
employees who may be reinstated shall refund such Constitution
retirement benefits or gratuity received: Provided,
ARTICLE XII: NATIONAL ECONOMY AND
finally That absorbed personnel must still meet the
PATRIMONY
qualifications and standards set by the Civil Service
and the Placement Committee herein created.
Section 2. All lands of the public domain, waters,
minerals, coal, petroleum, and other mineral oils, all
Sec. 75. Transition Period.- The ONCC/OSCC shall
forces of potential energy, fisheries, forests or timber,
have a period of six (6) months from the effectivity of
wildlife, flora and fauna, and other natural resources
this Act within which to wind up its affairs and to
are owned by the State. With the exception of
conduct audit of its finances.
agricultural lands, all other natural resources shall not
be alienated. The exploration, development, and
Sec. 76. Transfer of Assets/Properties.- All real and utilization of natural resources shall be under the full
personal properties which are vested in, or belonging control and supervision of the State. The State may
to, the merged offices as aforestated shall be directly undertake such activities, or it may enter into
transferred to the NCIP without further need of co-production, joint venture, or production-sharing
conveyance, transfer or assignment and shall be held agreements with Filipino citizens, or corporations or
for the same purpose as they were held by the former associations at least sixty per centum of whose capital
offices: Provided, That all contracts, records and is owned by such citizens. Such agreements may be for
documents shall be transferred to the NCIP. All a period not exceeding twenty-five years, renewable
agreements and contracts entered into by the merged for not more than twenty-five years, and under such
offices shall remain in full force and effect unless terms and conditions as may be provided by law. In
otherwise terminated, modified or amended by the cases of water rights for irrigation, water supply
NCIP. fisheries, or industrial uses other than the development
of water power, beneficial use may be the measure and
Sec. 77. Placement Committee.- Subject to rules on limit of the grant.
government reorganization, a Placement Committee
shall be created by the NCIP, in coordination with the The State shall protect the nation's marine wealth in its
Civil Service Commission, which shall assist in the archipelagic waters, territorial sea, and exclusive
judicious selection and placement of personnel in order economic zone, and reserve its use and enjoyment
that the best qualified and most deserving persons shall exclusively to Filipino citizens.
be appointed in the reorganized agency. The placement
Committee shall be composed of seven (7)
The Congress may, by law, allow small-scale programs, shall protect the rights of indigenous
utilization of natural resources by Filipino citizens, as cultural communities to their ancestral lands to ensure
well as cooperative fish farming, with priority to their economic, social, and cultural wellbeing.
subsistence fishermen and fish- workers in rivers,
lakes, bays, and lagoons. The Congress may provide for the applicability of
customary laws governing property rights or relations
The President may enter into agreements with foreign- in determining the ownership and extent of ancestral
owned corporations involving either technical or domain.
financial assistance for large-scale exploration,
development, and utilization of minerals, petroleum,
and other mineral oils according to the general terms Section 7. Save in cases of hereditary succession, no
and conditions provided by law, based on real private lands shall be transferred or conveyed except
contributions to the economic growth and general to individuals, corporations, or associations qualified
welfare of the country. In such agreements, the State to acquire or hold lands of the public domain.
shall promote the development and use of local
scientific and technical resources. Section 8. Notwithstanding the provisions of Section 7
of this Article, a natural-born citizen of the Philippines
The President shall notify the Congress of every who has lost his Philippine citizenship may be a
contract entered into in accordance with this provision, transferee of private lands, subject to limitations
within thirty days from its execution. provided by law.
Republic Act No. 7942: Philippine Mining Act of
Section 3. Lands of the public domain are classified 1995
into agricultural, forest or timber, mineral lands and
national parks. Agricultural lands of the public domain Sec. 2 Declaration of Policy. All mineral resources in
may be further classified by law according to the uses public and private lands within the territory and
to which they may be devoted. Alienable lands of the exclusive economic zone of the Republic of the
public domain shall be limited to agricultural lands. Philippines are owned by the State. It shall be the
Private corporations or associations may not hold such responsibility of the State to promote their rational
alienable lands of the public domain except by lease, exploration, development, utilization and conservation
for a period not exceeding twenty-five years, through the combined efforts of government and the
renewable for not more than twenty-five years, and not private sector in order to enhance national growth in a
to exceed one thousand hectares in area. Citizens of the way that effectively safeguards the environment and
Philippines may lease not more than five hundred protect the rights of affected communities.
hectares, or acquire not more than twelve hectares
thereof, by purchase, homestead, or grant. Sec. 3 Definition of Terms. As used in and for purposes
of this Act, the following terms, whether in singular or
Taking into account the requirements of conservation, plural, shall mean:
ecology, and development, and subject to the
requirements of agrarian reform, the Congress shall (a) "Ancestral lands" refers to all lands, exclusively
determine, by law, the size of lands of the public and actually possessed, occupied, or utilized by
domain which may be acquired, developed, held, or indigenous cultural communities by themselves
leased and the conditions therefor. or through their ancestors in accordance with their
customs and traditions since time immemorial,
Section 4. The Congress shall, as soon as possible, and as may be defined and delineated by law.
determine, by law, the specific limits of forest lands
and national parks, marking clearly their boundaries on (b) "Block" or "meridional block" means an area
the ground. Thereafter, such forest lands and national bounded by one-half (1/2) minute of latitude and
parks shall be conserved and may not be increased nor one-half (1/2) minute of longitude, containing
diminished, except by law. The Congress shall provide approximately eighty-one hectares (81 has.).
for such period as it may determine, measures to
prohibit logging in endangered forests and watershed (c) "Bureau" means the Mines and Geosciences
areas. Bureau under the Department of Environment and
Natural Resources.
Section 5. The State, subject to the provisions of this
Constitution and national development policies and
(d) "Carrying capacity" refers to the capacity of a proposed project and which examines the range
natural and human environments to accommodate of alternatives for the objectives of the proposal
and absorb change without experiencing and their impact on the environment.
conditions of instability and attendant
degradation. (o) "Exclusive economic zone" means the water, sea
bottom and subsurface measured from the
(e) "Contiguous zone" refers to water, sea bottom and baseline of the Philippine archipelago up to two
substratum measured twenty-four nautical miles hundred nautical miles (200 n.m.) offshore.
(24 n.m.) seaward from base line of the Philippine
archipelago. (p) "Existing mining/quarrying right" means a valid
and subsisting mining claim or permit or quarry
(f) "Contract area" means land or body of water permit or any mining lease contract or agreement
delineated for purposes of exploration, covering a mineralized area granted/issued under
development, or utilization of the minerals found pertinent mining laws.
therein.
(q) "Exploration" means the searching or prospecting
(g) "Contractor" means a qualified person acting for mineral resources by geological, geochemical
alone or in consortium who is a party to a mineral or geophysical surveys, remote sensing, test
agreement or to a financial or technical assistance pitting, trenching, drilling, shaft sinking,
agreement. tunneling or any other means for the purpose of
determining the existence, extent, quantity and
(h) "Co-production agreement (CA)" means an quality thereof and the feasibility of mining them
agreement entered into between the Government for profit.
and one or more contractors in accordance with
Section 26(b) hereof. (r) "Financial or technical assistance agreement"
means a contract involving financial or technical
(i) "Department" means the Department of assistance for large-scale exploration,
Environment and Natural Resources. development, and utilization of mineral resources.

(j) "Development" means the work undertaken (s) "Force majeure" means acts or circumstances
toexplore and prepare an ore body or a mineral beyond the reasonable control of contractor
deposit for mining, including the construction of including, but not limited to, war, rebellion,
necessary infrastructure and related facilities. insurrection, riots, civil disturbance, blockade,
sabotage, embargo, strike, lockout, any dispute
(k) "Director" means the Director of the Mines and with surface owners and other labor disputes,
Geosciences Bureau. epidemic, earthquake, storm, flood or other
adverse weather conditions, explosion, fire,
(l) "Ecological profile or eco-profile" refers to adverse action by government or by any
geographic-based instruments for planners and instrumentality or subdivision thereof, act of God
decision-makers which presents an evaluation of or any public enemy and any cause that herein
the environmental quality and carrying capacity describe over which the affected party has no
of an area. reasonable control.

(m) "Environmental Compliance Certificate (ECC)" (t) "Foreign-owned corporation" means any
refers to the document issued by the government corporation, partnership, association, or
agency concerned certifying that the project under cooperative duly registered in accordance with
consideration will not bring about an law in which less than fifty per centum (50%) of
unacceptable environmental impact and that the the capital is owned by Filipino citizens.
proponent has complied with the requirements of
the environmental impact statement system. (u) "Government" means the government of the
Republic of the Philippines.
(n) "Environmental Impact Statement (EIS)" is the
document which aims to identify, predict, (v) "Gross output" means the actual market value of
interpret, and communicate information regarding minerals or mineral products from its mining area
changes in environmental quality associated with as defined in the National Internal Revenue Code.
activities dealing with resource and environmental
(w) "Indigenous cultural community" means a group conservation, management and protection.
or tribe of indigenous Filipinos who have
continuously lived as communities on (ah) "Net assets" refers to the property, plant and
communally-bounded and defined land since time equipment as reflected in the audited financial
immemorial and have succeeded in preserving, statement of the contractor net of depreciation, as
maintaining, and sharing common bonds of computed for tax purposes, excluding appraisal
languages, customs, traditions, and other increase and construction in progress.
distinctive cultural traits, and as may be defined
and delineated by law. (ai) "Offshore" means the water, sea bottom, and
subsurface from the shore or coastline reckoned from
(x) "Joint Venture Agreement (JVA)" means an the mean low tide level up to the two hundred nautical
agreement entered into between the Government miles (200 n.m.) exclusive economic zone including
and one or more contractors in accordance with the archipelagic sea and contiguous zone.
Section 26(c) hereof.
(aj) "Onshore" means the landward side from the mean
(y) "Mineral processing" means the milling, tide elevation, including submerged lands in lakes,
benefaction or upgrading of ores or minerals and rivers and creeks.
rocks or by similar means to convert the same into
marketable products. (ak) "Ore" means a naturally occurring substance or
material from which a mineral or element can be mined
(z) "Mine wastes and tailings" shall mean soil and and/or processed for profit.
rock materials from surface or underground
mining and milling operations with no economic (al) "Permittee" means the holder of an exploration
value to the generator of the same. permit.

(aa) "Minerals" refers to all naturally occurring (am) "Pollution control and infrastructure devices"
inorganic substance in solid, gas, liquid, or any refers to infrastructure, machinery, equipment and/or
intermediate state excluding energy materials improvements used for impounding, treating or
such as coal, petroleum, natural gas, radioactive neutralizing, precipitating, filtering, conveying and
materials, and geothermal energy. cleansing mine industrial waste and tailings as well as
eliminating or reducing hazardous effects of solid
(ab) "Mineral agreement" means a contract between particles, chemicals, liquids or other harmful by
the government and a contractor, involving mineral products and gases emitted from any facility utilized in
production-sharing agreement, co-production mining operations for their disposal.
agreement, or joint-venture agreement.
(an) "President" means the President of the Republic of
(ac) "Mineral land" means any area where mineral the Philippines.
resources are found.
(ao) "Private land" refers to any land belonging to any
(ad) "Mineral resource" means any concentration of private person which includes alienable and disposable
minerals/rocks with potential economic value. land being claimed by a holder, claimant, or occupant
who has already acquired a vested right thereto under
(ae) "Mining area" means a portion of the contract area the law, although the corresponding certificate or
identified by the contractor for purposes of evidence of title or patent has not been actually issued.
development, mining, utilization, and sites for support
facilities or in the immediate vicinity of the mining (ap) "Public land" refers to lands of the public domain
operations. which have been classified as agricultural lands and
subject to management and disposition or concession
(af) "Mining operation" means mining activities under existing laws.
involving exploration, feasibility, development,
utilization, and processing. (aq) "Qualified person" means any citizen of the
Philippines with capacity to contract, or a corporation,
(ag) "Nongovernmental Organization (NGO)" partnership, association, or cooperative organized or
includes nonstock, nonprofit organizations involved in authorized for the purpose of engaging in mining, with
technical and financial capability to undertake mineral
resources development and duly registered in (ay) "State" means the Republic of the Philippines.
accordance with law at least sixty per cent (60%) of the
capital of which is owned by citizens of the (az) "Utilization" means the extraction or disposition
Philippines: Provided, That a legally organized of minerals.
foreign-owned corporation shall be deemed a qualified
person for purposes of granting an exploration permit, CHAPTER II
financial or technical assistance agreement or mineral GOVERNMENT MANAGEMENT
processing permit.
Sec. 4 Ownership of Mineral Resources. - Mineral
(ar) "Quarrying" means the process of extracting, resources are owned by the State and the exploration,
removing and disposing quarry resources found on or development, utilization, and processing thereof shall
underneath the surface of private or public land. be under its full control and supervision. The State may
directly undertake such activities or it may enter into
(as) "Quarry permit" means a document granted to a mineral agreements with contractors.
qualified person for the extraction and utilization of
quarry resources on public or private lands. The State shall recognize and protect the rights of the
indigenous cultural communities to their ancestral
(at) "Quarry resources" refers to any common rock or lands as provided for by the Constitution. Sec. 5
other mineral substances as the Director of Mines and Mineral Reservations. When the national interest so
Geosciences Bureau may declare to be quarry requires, such as when there is a need to preserve
resources such as, but not limited to, andesite, basalt, strategic raw materials for industries critical to national
conglomerate, coral sand, diatomaceous earth, diorite, development, or certain minerals for scientific, cultural
decorative stones, gabbro, granite, limestone, marble, or ecological value, the President may establish
marl, red burning clays for potteries and bricks, mineral reservations upon the recommendation of the
rhyolite, rock phosphate, sandstone, serpentine, shale, Director through the Secretary. Mining operations in
tuff, volcanic cinders, and volcanic glass: Provided, existing mineral reservations and such other
That such quarry resources do not contain metals or reservations as may thereafter be established, shall be
metallic constituents and/or other valuable minerals in undertaken by the Department or through a contractor:
economically workable quantities: Provided, further, Provided, That a small scale mining agreement for a
That non-metallic minerals such as kaolin, feldspar, maximum aggregate area of twenty-five percent (25%)
bullquartz, quartz or silica, sand and pebbles, of such mineral reservation, subject to valid existing
bentonite, talc, asbestos, barite, gypsum, bauxite, mining quarrying rights as provided under Section 112
magnesite, dolomite, mica, precious and semiprecious Chapter XX hereof. All submerged lands within the
stones, and other non-metallic minerals that may later contiguous zone and in the exclusive economic zone of
be discovered and which the Director declares the the Philippines are hereby declared to be mineral
same to be of economically workable quantities, shall reservations.
not be classified under the category of quarry
resources. A ten per centum (10%) share of all royalties and
revenues to be derived by the government from the
(au) "Region director" means the regional director of development and utilization of the mineral resources
any mines regional office under the Department of within mineral reservations as provided under this Act
Environment and Natural Resources. shall accrue to the Mines and Geosciences Bureau to
be allotted for special projects and other administrative
(av) "Regional office" means any of the mines regional expenses related to the exploration and development of
offices of the Department of Environment and Natural other mineral reservations mentioned in Section 6
Resources. hereof.

(aw) "Secretary" means the Secretary of the Sec. 6 Other Reservations. Mining operations in
Department of Environment and Natural Resources. reserved lands other than mineral reservations may be
undertaken by the Department, subject to limitations as
(ax) "Special allowance" refers to payment to the herein provided. In the event that the Department
claim-owners or surface right-owners particularly cannot undertake such activities, they may be
during the transition period from Presidential Decree undertaken by a qualified person in accordance with
No. 463 and Executive Order No. 279, series of 1987. the rules and regulations promulgated by the Secretary.
The right to develop and utilize the minerals found by the Secretary, upon the recommendation of the
therein shall be awarded by the President under such Director.
terms and conditions as recommended by the Director
and approved by the Secretary. Provided, That the Sec. 11 Processing of Applications. The system of
party who undertook the exploration of said processing applications for mining rights shall be
reservation shall be given priority. The mineral land so prescribed in the rules and regulations of this Act.
awarded shall be automatically excluded from the
reservation during the term of the agreement: Sec. 12 Survey, Charting and Delineation of Mining
Provided, further, That the right of the lessee of a valid Areas. A sketch plan or map of the contract or mining
mining contract existing within the reservation at the area prepared by a deputized geodetic engineer
time of its establishment shall not be prejudiced or suitable for publication purposes shall be required
impaired. during the filing of a mineral agreement or financial or
technical assistance agreement application. Thereafter,
Sec. 7 Periodic Review of Existing Mineral the contract or mining area shall be surveyed and
Reservations. The Secretary shall periodically review monumented by a deputized geodetic engineer or
existing mineral reservations for the purpose of bureau geodetic engineer and the survey plan shall be
determining whether their continued existence is approved by the Director before the approval of the
consistent with the national interest, and upon the mining feasibility.
recommendation, the President may, by proclamation,
alter or modify the boundaries thereof or revert the Sec. 13 Meridional Blocks. For purposes of the
same to the public domain without prejudice to prior delineation of the contract of mining areas under this
existing rights. Act, the Philippine territory and its exclusive economic
zone shall be divided into meridional blocks of one-
Sec. 8 Authority of the Department. The Department half (1/2) minute of latitude and onehalf (1/2) minute
shall be the primary government agency responsible of longitude.
for the conservation, management, development, and
proper use of the State's mineral resources including Sec. 14 Recording System. There shall be established
those in reservations, watershed areas, and lands of the a national and regional filing and recording system. A
public domain. The Secretary shall have the authority mineral resource database system shall be set up in the
to enter into mineral agreements on behalf of the Bureau which shall include, among others, a mineral
Government upon the recommendation of the Director, rights management system. The Bureau shall publish
promulgate such rules and regulations as may be at least annually, a mineral rights management system.
necessary to implement the intent and provisions of The Bureau shall publish at least annually, a mineral
this Act. gazette of nationwide circulation containing among
others, a current list of mineral rights, their location in
Sec. 9 Authority of the Bureau. The Bureau shall have the map, mining rules and regulations, other official
direct charge in the administration and disposition of acts affecting mining, and other information relevant
mineral lands and mineral resources and shall to mineral resources development. A system and
undertake geological, mining, metallurgical, chemical, publication fund shall be included in the regular budget
and other researches as well as geological and mineral of the Bureau.
exploration surveys. The Director shall recommend to
the Secretary the granting of mineral agreements to CHAPTER III
duly qualified persons and shall monitor the SCOPE OF APPLICATION
compliance by the contractor of the terms and
conditions of the mineral agreements. The Bureau may Sec. 15 Scope of Application. This Act shall govern the
confiscate surety, performance and guaranty bonds exploration, development, utilization and processing
posted through an order to be promulgated by the of all mineral resources.
Director. The Director may deputize, when necessary,
any member or unit of the Philippine National Police, Sec. 16 Opening of Ancestral Lands for Mining
barangay, duly registered nongovernmental Operations. No ancestral land shall be opened for
organization (NGO) or any qualified person to police mining operations without the prior consent of the
all mining activities. indigenous cultural community concerned.

Sec. 10 Regional Offices. There shall be as many Sec. 17 Royalty Payments for Indigenous Cultural
regional offices in the country as may be established Communities. In the event of an agreement with an
indigenous cultural community pursuant to the Administrative Order No. 25, series of 1992 and
preceding section, the royalty payment, upon other laws.
utilization of the minerals shall be agreed upon by the
parties. The said royalty shall form part of a trust fund CHAPTER IV
for the socioeconomic well-being of the indigenous EXPLORATION PERMIT
cultural community.
Sec. 20 Exploration Permit. An exploration permit
Sec. 18 Areas Open to Mining Operations. Subject to grants the right to conduct exploration for all minerals
any existing rights or reservations and prior in specified areas. The Bureau shall have the authority
agreements of all parties, all mineral resources in to grant an exploration permit to a qualified person.
public or private lands, including timber or forestlands
as defined in existing laws shall be open to mineral Sec. 21 Terms and Conditions of the Exploration
agreements or financial or technical assistance Permit. An exploration permit shall be for a period of
agreement applications. Any conflict that may arise two (2) years, subject to annual review and
under this provision shall be heard and resolved by the relinquishment or renewal upon the recommendation
panel of arbitrators. of the Director.

Sec. 19 Areas Closed to Mining Applications. Mineral Sec. 22 Maximum Areas for Exploration Permit. The
agreement or financial or technical assistance maximum area that a qualified person may hold at any
agreement applications shall not be allowed: one time shall be:

(a) In military and other government reservations, (a) Onshore, in any one province -
except upon prior written clearance by the
government agency concerned; (1) For individuals, twenty (20) blocks; and

(b) Near or under public or private buildings, (2) (2) For partnerships, corporations, cooperatives, or
cemeteries, archeological and historic sites, associations, two hundred (200) blocks.
bridges, highways, waterways, railroads,
reservoirs, dams or other infrastructure projects, (b) Onshore, in the entire Philippines -
public or private works including plantations or
valuable crops, except upon written consent of the (1) For individuals, forty (40) blocks; and
government agency or private entity concerned;
(2) For partnerships, corporations, cooperatives, or
(c) In areas covered by valid and existing mining associations, four hundred (400) blocks.
rights;
(c) Onshore, beyond five hundred meters (500m) from
(d) In areas expressedly prohibited by law; the mean low tide level -

(e) In areas covered by small-scale miners as defined (1) For individuals, one hundred (100) blocks; and
by law unless with prior consent of the small-scale
miners, in which case a royalty payment upon the (2) For partnerships, corporations, cooperatives, or
utilization of minerals shall be agreed upon by the associations, one thousand (1,000) blocks.
parties, said royalty forming a trust fund for the
socioeconomic development of the community Sec. 23 Rights and Obligations of the Permittee. An
concerned; and exploration permit shall grant to the permittee, his
heirs or successors-in-interest, the right to enter,
(f) Old growth or virgin forests, proclaimed watershed occupy and explore the area: Provided, That if private
forest reserves, wilderness areas, mangrove or other parties are affected, the permittee shall first
forests, mossy forests, national parks, discuss with the said parties the extent, necessity, and
provincial/municipal forests, parks, greenbelts, manner of his entry, occupation and exploration and in
game refuge and bird sanctuaries as defined by law case of disagreement, a panel of arbitrators shall
in areas expressly prohibited under the National resolve the conflict or disagreement.
Integrated Protected areas System (NIPAS) under
Republic Act No. 7586, Department
The permittee shall undertake an exploration work on
the area specified by its permit based on an approved (b) Co-production agreement - is an agreement
work program. between the Government and the contractor wherein
the Government shall provide inputs to the mining
Any expenditure in excess of the yearly budget of the operations other than the mineral resource.
approved work program may be carried forward and
credited to the succeeding years covering the duration (c) Joint venture agreement - is an agreement
of the permit. The Secretary, through the Director, where a joint-venture company is organized by the
shall promulgate rules and regulations governing the Government and the contractor with both parties
terms and conditions of the permit. having equity shares. Aside from earnings in equity,
the Government shall be entitled to a share in the gross
The permittee may apply for a mineral production output.
sharing agreement, joint venture agreement,
coproduction agreement or financial or technical A mineral agreement shall grant to the contractor the
assistance agreement over the permit area, which exclusive right to conduct mining operations and to
application shall be granted if the permittee meets the extract all mineral resources found in the contract area.
necessary qualifications and the terms and conditions In addition, the contractor may be allowed to convert
of any such agreement: Provided, That the exploration his agreement into any of the modes of mineral
period covered by the exploration permit shall be agreements or financial or technical assistance
included as part of the exploration period of the agreement covering the remaining period of the
mineral agreement or financial or technical assistance original agreement subject to the approval of the
agreement. Secretary.

Sec. 24 Declaration of Mining Project Feasibility. A Sec. 27 Eligibility. A qualified person may enter into
holder of an exploration permit who determines the any of the three (3) modes of mineral agreement with
commercial viability of a project covering a mining the government for the exploration, development and
area may, within the term of the permit, file with the utilization of mineral resources: Provided, That in case
Bureau a declaration of mining project feasibility the applicant has been in the mining industry for any
accompanied by a work program for development. The length of time, he should possess a satisfactory
approval of the mining project feasibility and environmental track record as determined by the Mines
compliance with other requirements provided in this and Geosciences Bureau and in consultation with the
Act shall entitle the holder to an exclusive right to a Environment Management Bureau of the Department.
mineral production sharing agreement or other mineral
agreements or financial or technical assistance Sec. 28 Maximum Areas for Mineral Agreement. The
agreement. maximum area that a qualified person may hold at any
time under a mineral agreement shall be:
Sec. 25 Transfer or Assignment. An exploration permit
may be transferred or assigned to a qualified person (a) Onshore, in any one province -
subject to the approval of the Secretary upon the
recommendation of the Director. (1) For individuals, ten (10) blocks; and

CHAPTER V (2) For partnerships, cooperatives, associations,


MINERAL AGREEMENTS orcorporations, one hundred (100) blocks.

Sec. 26 Modes of Mineral Agreement. For purposes of (b) Onshore, in the entire Philippines -
mining operations, a mineral agreement may take the
following forms as herein defined: (1) For individuals, twenty (20) blocks; and

(a) Mineral production sharing agreement - is an (2) For partnerships, cooperatives, associations, or
agreement where the Government grants to the corporations, two hundred (200) blocks.
contractor the exclusive right to conduct mining
operations within a contract area and shares in the (c) Offshore, in the entire Philippines -
gross output. The contractor shall provide the
financing, technology, management and personnel (1) For individuals, fifty (50) blocks;
necessary for the implementation of this agreement.
(2) For partnerships, cooperatives, associations, or the renewal period, the operation of the mine may be
corporations, five hundred (500) blocks; and undertaken by the Government or through a contractor.
The contract for the operation of a mine shall be
(3) For the exclusive economic zone, a larger area to awarded to the highest bidder in a public bidding after
be determined by the Secretary. due publication of the notice thereof: Provided, That
the contractor shall have the right to equal the highest
The maximum areas mentioned above that a contractor bid upon reimbursement of all reasonable expenses of
may hold under a mineral agreement shall not include the highest bidder.
mining/quarry areas under operating agreements
between the contractor and a CHAPTER VI
claimowner/lessee/permittee/licensee entered into FINANCIAL OR TECHNICAL ASSISTANCE
under Presidential Decree No. 463. AGREEMENT

Sec. 29 Filing and Approval of Mineral Agreements. Sec. 33 Eligibility. Any qualified person with technical
All proposed mineral agreements shall be filed in the and financial capability to undertake large-scale
region where the areas of interest are located, except in exploration, development, and utilization of mineral
mineral reservations which shall be filed with the resources in the Philippines may enter into a financial
Bureau. or technical assistance agreement directly with the
Government through the Department.
The filing of a proposal for a mineral agreement shall
give the proponent the prior right to areas covered by Sec. 34 Maximum Contract Area. The maximum
the same. The proposed mineral agreement will be contract area that may be granted per qualified person,
approved by the Secretary and copies thereof shall be subject to relinquishment shall be:
submitted to the President. Thereafter, the President
shall provide a list to Congress of every approved (a) 1,000 meridional blocks onshore;
mineral agreement within thirty (30) days from its (b) 4,000 meridional blocks offshore; or(c)
approval by the Secretary. Combinations of (a) and (b) provided that it shall
not exceed the maximum limits for onshore and
Sec. 30 Assignment/Transfer. Any assignment or offshore areas.
transfer of rights and obligations under any mineral
agreement except a financial or technical assistance Sec. 35 Terms and Conditions. The following terms,
agreement shall be subject to the prior approval of the conditions, and warranties shall be incorporated in the
Secretary. Such assignment or transfer shall be deemed financial or technical assistance agreement, to wit:
automatically approved if not acted upon by the
Secretary within thirty (30) working days from official (a) A firm commitment in the form of a sworn
receipt thereof, unless patently unconstitutional or statement, of an amount corresponding to the
illegal. expenditure obligation that will be invested in the
contract area: Provided, That such amount shall be
Sec. 31 Withdrawal from Mineral Agreements. The subject to changes as may be provided for in the rules
contractor may, by giving due notice at any time during and regulations of this act;
the terms of the agreement, apply for the cancellation
of the mineral agreement due to causes which, in the (b) A financial guarantee bond shall be posted in
opinion of the contractor, make continued mining favor of the Government in an amount equivalent to
operations no longer feasible or viable. The Secretary the expenditure obligation of the applicant for any
shall consider the notice and issue its decision within a year.
period of thirty (30) days: Provided, That the
contractor has met all its financial, fiscal and legal (c) Submission of proof of technical competence,
obligations. such as, but not limited to, its track record in mineral
resource exploration, development, and utilization;
Sec. 32 Terms. Mineral agreements shall have a term details of technology to be employed in the proposed
not exceeding twenty-five (25) years to start from the operation; and details of technical personnel to
date of execution thereof, and renewable for another undertake the operations;
term not exceeding twenty-five (25) years under the
same terms and conditions thereof, without prejudice (d) Representations and warranties that the
to charges mutually agreed upon by the parties. After applicant has all the qualifications and none of the
disqualifications for entering into the agreement; (m) Requiring the proponent to dispose of the
minerals and by products produced under a financial
(e) Representations and warranties that the or technical assistance agreement at the highest price
contractor has or has access to all the financing, and more advantageous terms and conditions as
managerial and technical expertise and, if provided for under the rules and regulations of
circumstances demand, the technology required to this Act;
promptly and effectively carry out the objectives of the
agreement with the understanding to timely deploy (n) Provide for consultation and arbitration with
these resources under its supervision pursuant to the respect to the interpretation and implementation of
periodic work programs and related budgets, when the terms and conditions of the agreements; and
proper, providing an exploration period up to two (2)
years, extendible for another two (2) years but subject (o) Such other terms and conditions consistent
to annual review by the Secretary in accordance with with the Constitution and with this Act as the Secretary
the implementing rules and regulations of this Act, and may deem to be for the best interest of the State and
further, subject to the relinquishment obligations; the welfare of the Filipino people.

(f) Representations and warranties that, except Sec. 36 Negotiations. A financial or technical
forpayments for dispositions for its equity, foreign assistance agreement shall be negotiated by the
investments in local enterprises which are qualified for Department and executed and approved by the
repartriation, and local supplier's credits and such other President. The President shall notify Congress of all
generally accepted and permissible financial schemes Financial or technical assistance agreements within
for raising funds for valid business purposes, the thirty (30) days from execution and approval thereof.
contractor shall not raise any form of financing from
domestic sources of funds, whether in Philippine or Sec. 37 Filing and Evaluation of Financial or Technical
foreign currency, for conducting its Assistance Agreement Proposals. All financial or
mining operations for and in the contract area; technical assistance agreement proposals shall be filed
with the Bureau after payment of the required
(g) The mining operations shall be conducted in processing fees. If the proposal is found to be sufficient
accordance with the provisions of this Act and its and meritorious in form and substance after evaluation,
implementing rules and regulations; it shall be recorded with the appropriate government
agency to give the proponent the prior right to the area
(h) Work programs and minimum expenditures covered by such proposal: Provided, That existing
commitments; mineral agreements, financial or technical assistance
agreements and other mining rights are not impaired or
(i) Preferential use of local goods and services to prejudiced thereby. The Secretary shall recommend its
the maximum extent practicable; approval to the President.

(j) A stipulation that the contractors are Sec. 38 Terms of Financial or Technical Assistance
obligated to give preference to Filipinos in all types of Agreement. A financial or technical assistance
mining employment for which they are qualified and agreement shall have a term not exceeding twentyfive
that (25) years to start from the execution thereof,
technology shall be transferred to the same; renewable for not more than twenty-five (25) years
under such terms and conditions as may be provided
(k) Requiring the prominent to effectively use by law.
appropriate anti-pollution technology and facilities to
protect the environment and to restore or rehabilitate Sec. 39 Option to Convert into a Mineral Agreement.
mined out areas and other areas affected by mine The contractor has the option to convert the financial
tailings and other forms of pollution or destruction; or technical assistance agreement to a mineral
agreement at any time during the term of the
(l) The contractors shall furnish the Government agreement, if the economic viability of the contract
records of geologic, accounting, and other relevant area is found to be inadequate to justify large-scale
data for its mining operations, and that book of mining operations, after proper notice to the Secretary
accounts and records shall be open for inspection by as provided for under the implementing rules and
the government; regulations: Provided, That the mineral agreement
shall only be for the remaining period of the original Provided, That in large-scale quarry operations
agreement. involving cement raw materials, marble, granite, sand
and gravel and construction agreements, a qualified
In the case of a foreign contractor, it shall reduce its person and the government may enter into a mineral
equity to forty percent (40%) in the corporation, agreement as defined herein.
partnership, association, or cooperative. Upon
compliance with this requirement by the contractor, the A quarry permit shall have a term of five (5) years,
Secretary shall approve the conversion and execute the renewable for like periods but not to exceed a total
mineral production-sharing agreement. term of twenty-five (25) years, No quarry permit shall
be issued or granted on any area covered by a mineral
Sec. 40 Assignment/Transfer. A financial or technical agreement, or financial or technical assistance
assistance agreement may be assigned or transferred, agreement.
in whole or in part, to a qualified person subject to the
prior approval of the President: Provided, That the Sec. 44 Quarry Fee and Taxes. A permittee shall,
President shall notify Congress of every financial or during the term of his permit, pay a quarry fee as
technical assistance agreement assigned or converted provided for under the implementing rules and
in accordance with this provision within thirty (30) regulations. The permittee shall also pay the excise tax
days from the date of the approval thereof. as provided by pertinent laws.

Sec. 41 Withdrawal from Financial or Technical Sec. 45 Cancellation of Quarry Permit. A quarry permit
Assistance Agreement. The contractor shall manifest may be cancelled by the provincial governor for
in writing to the Secretary his intention to withdraw violations of the provisions of this Act or its
from the agreement, if in his judgement the mining implementing rules and regulations or the terms and
project is no longer economically feasible, even after conditions of said permit: Provided, That before the
he has exerted reasonable diligence to remedy the cancellation of such permit, the holder thereof shall be
cause or the situation. The Secretary may accept the given the opportunity to be heard in an investigation
withdrawal: Provided, That the contractor has conducted for the purpose.
complied or satisfied all his financial, fiscal or legal
obligations. Sec. 46 Commercial Sand and Gravel Permit. Any
qualified person may be granted a permit by the
CHAPTER VII provincial governor to extract and remove sand and
SMALL-SCALE MINING gravel or other loose or unconsolidated materials
which are used in their natural state, without
Sec. 42 Small-scale Mining. Small-scale mining shall undergoing processing from an area of not more than
continue to be governed by Republic Act No. 7076 and five hectares (5 has.) and in such quantities as may be
other pertinent laws. specified in the permit.

CHAPTER VIII Sec. 47 Industrial Sand and Gravel Permit. Any


QUARRY RESOURCES qualified person may be granted an industrial sand and
gravel permit by the Bureau for the extraction of sand
Sec. 43 Quarry Permit. Any qualified person may and gravel and other loose or unconsolidated materials
apply to the provincial/city mining regulatory board that necessitate the use of mechanical processing
for a quarry permit on privately-owned lands and/or covering an area of more than five hectares (5 has.) at
public lands for building and construction materials any one time. The permit shall have a term of five (5)
such as marble, basalt, andesite, conglomerate, tuff, years, renewable for a like period but not to exceed a
adobe, granite, gabbro, serpentine, inset filing total term of twenty-five (25) years.
materials, clay for ceramic tiles and building bricks,
pumice, perlite and other similar materials that are Sec. 48 Exclusive Sand and Gravel Permit. Any
extracted by quarrying from the ground. The provincial qualified person may be granted an exclusive sand and
governor shall grant the permit after the applicant has gravel permit by the provincial governor to quarry and
complied with all the requirements as prescribed by the utilize sand and gravel or other loose or unconsolidated
rules and regulations. materials from public lands for his own use, provided
that there will be no commercial disposition thereof.
The maximum area which a qualified person may hold
at any one time shall be five hectares (5 has.):
A mineral agreement or a financial technical assistance extracted. In the case of mineral ores or minerals being
agreement contractor shall, however, have the right to transported from the smallscale mining areas to the
extract and remove sand and gravel and other loose custom mills or processing plants, the Provincial
unconsolidated materials without need of a permit Mining Regulatory Board (PMRB) concerned shall
within the area covered by the mining agreement for formulate their own policies to govern such transport
the exclusive use in the mining operations: Provided, of ores produced by smallscale miners. The absence of
That monthly reports of the quantity of materials a permit shall be considered as prima facie evidence of
extracted therefrom shall be submitted to the mines illegal mining and shall be sufficient cause for the
regional office concerned: Provided, further, That said Government to confiscate the ores or minerals being
right shall be coterminous with the expiration of the transported, the tools and equipment utilized, and the
agreement. vehicle containing the same. Ore samples not
exceeding two metric tons (2 m.t.) to be used
Holders of existing mining leases shall likewise have exclusively for assay or pilot test purposes shall be
the same rights as that of a contractor: Provided, That exempted from such requirement.
said right shall be coterminous with the expiry dates of
the lease. Sec. 54 Mineral Trading Registration. No person shall
engage in the trading of mineral products, either
Sec. 49 Government Gratuitous Permit. Any locally or internationally, unless registered with the
government entity or instrumentality may be granted a Department of Trade and Industry and accredited by
gratuitous permit by the provincial governor to extract the Department, with a copy of said registration
sand and gravel, quarry or loose unconsolidated submitted to the Bureau.
materials needed in the construction of building and/or
infrastructure for public use or other purposes over an Sec. 55 Minerals Processing Permit. No person shall
area of not more than two hectares (2 has.) for a period engage in the processing of minerals without first
coterminous with said construction. securing a minerals processing permit from the
Secretary. Minerals processing permit shall be for a
Sec. 50 Private Gratuitous Permit. Any owner of land period of five (5) years renewable for like periods but
may be granted a private gratuitous permit by the not to exceed a total term of twenty-five (25) years. In
provincial governor. the case of mineral ores or minerals produced by the
small-scale miners, the processing thereof as well as
Sec. 51 Guano Permit. Any qualified person may be the licensing of their custom mills, or processing plants
granted a guano permit by the provincial governor to shall continue to be governed by the provisions of
extract and utilize loose unconsolidated guano and Republic Act No. 7076.
other organic fertilizer materials in any portion of a
municipality where he has established domicile. The Sec. 56 Eligibility of Foreign-owned/-controlled
permit shall be for specific caves and/or for confined Corporation. A foreign-owned/-controlled corporation
sites with locations verified by the Department's field may be granted a mineral processing permit.
officer in accordance with existing rules and
regulations. CHAPTER X
DEVELOPMENT OF MINING COMMUNITIES,
Sec. 52 Gemstone Gathering Permit. Any qualified SCIENCE AND MINING TECHNOLOGY
person may be granted a non-exclusive gemstone
gathering permit by the provincial governor to gather Sec. 57 Expenditure for Community Development and
loose stones useful as gemstones in rivers and other Science and Mining Technology. A contractor shall
locations. assist in the development of its mining community, the
promotion of the general welfare of its inhabitants, and
CHAPTER IX the development of science and mining technology.
TRANSPORT, SALE AND PROCESSING OF
MINERALS Sec. 58 Credited Activities. Activities that may be
credited as expenditures for development of mining
Sec. 53 Ore Transport Permit. A permit specifying the communities, and science and mining technology are
origin and quantity of non-processed mineral ores or the following:
minerals shall be required for their transport. Transport
permits shall be issued by the mines regional director (a) Any activity or expenditure intended to
who has jurisdiction over the area where the ores were enhance the development of the mining and
neighboring communities of a mining operation other case shall each employment exceed five (5) years or
than those required or provided for under existing the payback period as represented in original project
laws, or study, whichever is longer: Provided, further, That
collective bargaining agreements, and the like: and each foreigner employed as mine manager,
vicepresident for operations or in an equivalent
(b) Any activity or expenditure directed towards managerial position in charge of mining, milling,
the development of geosciences and mining quarrying or drilling operation shall:
technology such as, but not limited to, institutional and
manpower development, and basic and applied (a) Present evidence of his qualification and
researches. Appropriate supervision and control work experience; or
mechanisms shall be prescribed in the implementing
rules and regulations of this Act. (b) Shall pass the appropriate government
licensure examination; or
Sec. 59 Training and Development. A contractor shall
maintain an effective program of manpower training (c) In special cases, may be permitted to work by
and development throughout the term of the mineral the Director for a period not exceeding one (1) year:
agreement and shall encourage and train Filipinos to Provided, however, That if reciprocal privileges are
participate in all aspects of the mining operations, extended to Filipino nationals in the country of
including the management thereof. For domicile, the Director may grant waivers or
highlytechnical and specialized mining operations, the exemptions.
contractor may, subject to the necessary government
clearances, employ qualified foreigners. CHAPTER XI
SAFETY AND ENVIRONMENTAL
Sec. 60 Use of Indigenous Goods, Services and PROTECTION
Technologies. A contractor shall give preference to the
use of local goods, services and scientific and technical Sec. 63 Mines Safety and Environmental Protection.
resources in the mining operations, where the same are All contractors and permittees shall strictly comply
of equivalent quality, and are available on equivalent with all the mines safety rules and regulations as may
terms as their imported counterparts. be promulgated by the Secretary concerning the safe
and sanitary upkeep of the mining operations and
Sec. 61 Donations/Turn Over of Facilities. Prior to achieve waste-free and efficient mine development.
cessation of mining operations occasioned by Personnel of the Department involved in the
abandonment or withdrawal of operations, on public implementation of mines safety, health and
lands by the contractor, the latter shall have a period of environmental rules and regulations shall be covered
one (1) year therefrom within which to remove his under Republic Act No. 7305.
improvements; otherwise, all the social infrastructure
and facilities shall be turned over or donated tax-free Sec. 64 Mine Labor. No person under sixteen (16)
to the proper government authorities, national or local, years of age shall be employed in any phase of mining
to ensure that said infrastructure and facilities are operations and no person under eighteen (18) years of
continuously maintained and utilized by the host and age shall be employed underground in a mine.
neighboring communities.
Sec. 65 Mine Supervision. All mining and quarrying
Sec. 62 Employment of Filipinos. A contractor shall operations that employ more than fifty (50) workers
give preference to Filipino citizens in all types of shall have at least one (1) licensed mining engineer
mining employment within the country insofar as such with at least five (5) years of experience in mining
citizens are qualified to perform the corresponding operations, and one (1) registered foreman.
work with reasonable efficiency and without hazard to
the safety of the operations. The contractor, however, Sec. 66 Mine Inspection. The regional director shall
shall not be hindered from hiring employees of his own have exclusive jurisdiction over the safety inspection
selection, subject to the provision of Commonwealth of all installations, surface or underground, in mining
Act No. 613, as amended, for technical and specialized operations at reasonable hours of the day or night and
work which in his judgement and with the approval of as much as possible in a manner that will not impede
the Director, required highly-specialized training or or obstruct work in progress of a contractor or
long experience in exploration, development or permittee.
utilization of mineral resources: Provided, That in no
Sec. 67 Power to Issue Orders. The mines regional assessment. People's organizations and
director shall, in consultation with the Environmental nongovernmental organizations shall be allowed and
Management Bureau, forthwith or within such time as encourage to participate in ensuring that
specified in his order, require the contractor to remedy contractors/permittees shall observe all the
any practice connected with mining or quarrying requirements of environmental protection.
operations, which is not in accordance with safety and
anti-pollution laws and regulations, which is not in Sec. 71 Rehabilitation. Contractors and permittees
accordance with safety and anti-pollution laws and shall technically and biologically rehabilitate the
regulations. In case of imminent danger to life or excavated mined-out, tailings covered and disturbed
property, the mines regional director may summarily areas to the condition of environmental safety, as may
suspend the mining or quarrying operations until the be provided in the implementing rules and regulations
danger is removed, or appropriate measures are taken of this Act. A mine rehabilitation fund shall be created,
by the contractor or permittee. based on the contractor's approved work program, and
shall be deposited as a trust fund in a government
Sec. 68 Report of Accidents. In case of any incident or depository bank and used for physical and social
accident, causing or creating the danger of loss of life rehabilitation of areas and communities affected by
or serious physical injuries, the person in charge of mining activities and for research on the social,
operations shall immediately report the same to the technical and preventive aspects of rehabilitation.
regional office where the operations are situated. Failure to fulfill the above obligation shall mean
Failure to report the same without justifiable reason immediate suspension or closure of the mining
shall be a cause for the imposition of administrative activities of the contractor/permittee concerned.
sanctions prescribed in the rules and regulations
implementing this Act. CHAPTER XII
AUXILIARY MINING RIGHTS
Sec. 69 Environmental Protection. Every contractor
shall undertake an environmental protection and Sec. 72 Timber Rights. Any provision of law to the
enhancement program covering the period of the contrary notwithstanding, a contractor may be ranged
mineral agreement or permit. Such environmental a right to cut trees or timber within his mining area as
program shall be incorporated in the work program may be necessary for his mining operations subject to
which the contractor or permittee shall submit as an forestry laws, rules and regulations: Provided, That if
accompanying document to the application for a the land covered by the mining area is already covered
mineral agreement or permit. The work program shall by existing timber concessions, the volume of timber
include not only plans relative to mining operations but needed and the manner of cutting and removal thereof
also to rehabilitation, regeneration, revegetation and shall be determined by the mines regional director,
reforestation of mineralized areas, slope stabilization upon consultation with the contractor, the timber
of mined-out and tailings covered areas, aquaculture, concessionaire/permittee and the Forest Management
watershed development and water conservation; and Bureau of the Department: Provided, further, That in
socioeconomic development. case of disagreement between the contractor and the
timber concessionaire, the matter shall be submitted to
Sec. 70 Environmental Impact Assessment (EIA). the Secretary whose decision shall be final. The
Except during the exploration period of a mineral contractor shall perform reforestation work within his
agreement or financial or technical assistance mining area in accordance with forestry laws, rules and
agreement or an exploration permit, an environmental regulations.
clearance certificate shall be required based on an
environmental impact assessment and procedures Sec. 73 Water Rights. A contractor shall have water
under the Philippine Environmental Impact rights for mining operations upon approval of
Assessment System including Sections 26 and 27 of application with the appropriate government agency in
the Local Government Code of 1991 which require accordance with existing water laws, rules and
national government agencies to maintain ecological regulations promulgated thereunder: Provided, That
balance, and prior consultation with the local water rights already granted or vested through long
government units, nongovernmental and people's use, recognized and acknowledged by local customs,
organizations and other concerned sectors of the laws, and decisions of courts shall not thereby be
community: Provided, That a completed ecological impaired: Provided further, That the Government
profile of the proposed mining area shall also reserves the right to regulate water rights and the
constitute part of the environmental impact
reasonable and equitable distribution of water supply related field, and duly designated by the Secretary as
so as to prevent the monopoly of the use thereof. recommended by the Mines and Geosciences Bureau
Director. Those designated as members of the panel
Sec. 74 Right to Possess Explosives. A contractor/ shall serve as such in addition to their work in the
exploration permittee shall have the right to possess Department without receiving any additional
and use explosives within his contract/permit area as compensation. As much as practicable, said members
may be necessary for his mining operations upon shall come from the different bureaus of the
approval of an application with the appropriate Department in the region. The presiding officer shall
government agency in accordance with existing laws, be on a yearly basis. The members of the panel shall
rules and regulations promulgated thereunder: perform their duties and obligations in hearing and
Provided, That the Government reserves the right to deciding cases until their designation is withdrawn or
regulate and control the explosive accessories to revoked by the
ensure safe mining operations. Secretary. Within thirty (30) working days, after the
submission of the case by the parties for decision, the
Sec. 75 Easement Rights. When mining areas are so panel shall have exclusive and original jurisdiction to
situated that for purposes of more convenient mining hear and decide on the following:
operations it is necessary to build, construct or install
on the mining areas or lands owned, occupied or leased (a) Disputes involving rights to mining areas;
by other persons, such infrastructure as roads,
railroads, mills, waste dump sites, tailings ponds, (b) Disputes involving mineral agreements or
warehouses, staging or storage areas and port facilities, permits;
tramways, runways, airports, electric transmission,
telephone or telegraph lines, dams and their normal (c) Disputes involving surface owners, occupants
flood and catchment areas, sites for water wells, andclaimholders/concessionaires; and
ditches, canals, new river beds, pipelines, flumes, cuts,
shafts, tunnels, or mills, the contractor, upon payment (d) Disputes pending before the Bureau and
of just compensation, shall be entitled to enter and theDepartment at the date of the effectivity of this
occupy said mining areas or lands. Act.

Sec. 76 Entry into Private Lands and Concession Sec. 78 Appellate Jurisdiction. The decision or order of
Areas. Subject to prior notification, holders of mining the panel of arbitrators may be appealed by the party
rights shall not be prevented from entry into private not satisfied thereto to the mines Adjudication Board
lands and concession areas by surface owners, within fifteen (15) days from receipt thereof which
occupants, or concessionaires when conducting must decide the case within thirty (30) days from
mining operations therein: Provided, That any damage submission thereof for decision.
done to the property of the surface owner, occupant, or
concessionaire as a consequence of such operations Sec. 79 Mines Adjudication Board. The Mines
shall be properly compensated as may be provided for Adjudication Board shall be composed of three (3)
in the implementing rules and regulations: Provided, members. The Secretary shall be the chairman with the
further, That to guarantee such compensation, the Director of the Mines and Geosciences Bureau and the
person authorized to conduct mining operation shall, Undersecretary for Operations of the Department as
prior thereto, post a bond with the regional director member thereof. The Board shall have the following
based on the type of properties, the prevailing prices in powers and functions:
and around the area where the mining operations are to
be conducted, with surety or sureties satisfactory to the (a) To promulgate rules and regulations
regional director. governing the hearing and disposition of cases before
it, as well as those pertaining to its internal functions,
CHAPTER XIII and such rules and regulations as may be necessary to
SETTLEMENT OF CONFLICTS carry out its functions;

Sec. 77 Panel of Arbitrators. There shall be a panel of (b) To administer oaths, summon the parties to a
arbitraters in the regional office of the Department controversy, issue subpoenas requiring the attendance
composed of three (3) members, two (2) of whom must and testimony of witnesses or the production of such
be members of the Philippine Bar in good standing and books, paper, contracts, records, statement of
one licensed mining engineer or a professional in a accounts, agreements, and other documents as may be
material to a just determination of the matter under mineral production sharing agreement shall be the
investigation, and to testify in any investigation or excise tax on mineral products as provided in Republic
hearing conducted in pursuance of this Act; Act No. 7729, amending Section 151(a) of the National
Internal Revenue Code, as amended.
(c) To conduct hearings on all matters within its
jurisdiction, proceed to hear and determine the Sec. 81 Government Share in Other Mineral
disputes in the absence of any party thereto who has Agreements. The share of the Government in
been summoned or served with notice to appear, coproduction and joint-venture agreements shall be
conduct its proceedings or any part thereof in public or negotiated by the Government and the contractor
in private, adjourn its hearings at any time and place, taking into consideration the: (a) capital investment of
refer technical matters or accounts to an expert and to the project, (b) risks involved, (c) contribution of the
accept his report as evidence after hearing of the project to the economy, and (d) other factors that will
parties upon due notice, direct parties to be joined in or provide for a fair and equitable sharing between the
excluded from the proceedings, correct, amend, or Government and the contractor. The Government shall
waive any error, defect or irregularity, whether in also be entitled to compensations for its other
substance or in form, give all such directions at it may contributions which shall be agreed upon by the
deem necessary or expedient in the determination of parties, and shall consist, among other things, the
the dispute before it and dismiss the mining dispute as contractor's income tax, excise tax, special allowance,
part thereof, where it is trivial or where further withholding tax due from the contractor's foreign
proceedings by the stockholders arising from dividend or interest
Board are not necessary or desirable; payments to the said foreign stockholders, in case of a
foreign national, and all such other taxes, duties and
(1) to hold any person in contempt, directly or fees as provided for under existing laws.
indirectly, and impose appropriate penalties therefor;
and The Government share in financial or technical
assistance agreement shall consist of, among other
(2) To enjoin any or all acts involving or arising things, the contractor's corporate income tax, excise
from any case pending before it which, if not restrained tax, special allowance, withholding tax due from the
forthwith, may cause grave or irreparable damage to contractor's foreign stockholders arising from dividend
any of the parties to the case or seriously affect social or interest payments to the said foreign stockholder in
and economic stability. case of a foreign national and all such other taxes,
duties and fees as provided for under existing laws.
In any proceeding before the Board, the rules of
evidence prevailing in courts of law or equity shall not The collection of government share in financial or
be controlling and it is the spirit and intention of this technical assistance agreement shall commence after
Act that shall govern. The Board shall use every and the financial or technical assistance agreement
all reasonable means to ascertain the facts in each case contractor has fully recovered its pre-operating
speedily and objectively and without regard to expenses, exploration, and development expenditures,
technicalities of law or procedure, all in the interest of inclusive.
due process. In any proceeding before the Board, the
parties may be represented by legal counsel. the Sec. 82 Allocation of Government Share. The
findings of fact of the Board shall be conclusive and Government share as referred to in the preceding
binding on the parties and its decision or order shall be sections shall be shared and allocated in accordance
final and executory. with Sections 290 and 292 of Republic Act No. 7160
otherwise known as the Local Government Code of
A petition for review by certiorari and question of law 1991. In case the development and utilization of
may be filed by the aggrieved party with the Supreme mineral resources is undertaken by a
Court within thirty (30) days from receipt of the order governmentowned or controlled corporation, the
or decision of the Board. sharing and allocation shall be in accordance with
Sections 291 and 292 of the said Code.
CHAPTER XIV
GOVERNMENT SHARE CHAPTER XV
TAXES AND FEES
Sec. 80 Government Share in Mineral Production
Sharing Agreement. The total government share in a
Sec. 83 Income Taxes. After the lapse of the income
tax holiday as provided for in the Omnibus The Secretary is authorized to increase the occupation
Investments Code, the contractor shall be liable to pay fees provided herein when the public interest so
income tax as provided in the National Internal requires, upon recommendation of the Bureau
Revenue Code, as amended. Director.

Sec. 84 Excise Tax on Mineral Products. The Sec. 87 Manner of payment of Fees. The fees shall be
contractor shall be liable to pay the excise tax on paid on the date the mining agreement is registered
mineral products as provided for under Section 151 of with the appropriate office and on the same date every
the National Internal Revenue Code: Provided, year thereafter. It shall be paid to the treasurer of the
however, That with respect to a mineral production municipality or city where the onshore mining areas
sharing agreement, the excise tax on mineral products are located, or to the Director in case of offshore
shall be the government share under said agreement. mining areas. For this purpose, the appropriate officer
shall submit to the treasurer of the municipality or city
Sec. 85 Mine Wastes and Tailings Fees. A semiannual where the onshore mining area is located, a complete
fee to be known as mine wastes and tailings fee is list of all onshore mining rights registered with his
hereby imposed on all operating mining companies in office, indicating therein the names of the holders, area
accordance with the implementing rules and in hectares, location, and date registered. If the fee is
regulations. The mine wastes and tailings fee shall not paid on the date specified, it shall be increased by
accrue to a reserve fund to be used exclusively for twenty-five per centum (25%).
payment for damages to:
Sec. 88 Allocation of Occupation Fees. Thirty per
(a) Lives and personal safety; centum (30%) of all occupational fees collected from
(b) Lands, agricultural crops and forest products, holders of mining rights in onshore mining areas shall
marine life and aquatic resources, cultural accrue to the province and seventy per centum (70%)
resources; and to the municipality in which the onshore mining areas
(c) Infrastructure and the revegetation and are located. In a chartered city, the full amount shall
rehabilitation of silted farm lands and other areas accrue to the city concerned.
devoted to agriculture and fishing caused by mining
pollution. Sec. 89 Filing Fees and Other Charges. The Secretary
is authorized to charge reasonable filing fees and other
This is in addition to the suspension or closure of the charges as he may prescribe in accordance with the
activities of the contractor at any time and the penal implementing rules and regulations.
sanctions imposed upon the same.
CHAPTER XVI
The Secretary is authorized to increase mine wastes INCENTIVES
and tailings fees, when public interest so requires, upon
the recommendation of the Director. Sec. 90 Incentives. The contractors in mineral
agreements, and financial or technical assistance
Sec. 86 Occupation Fees. There shall be collected from agreements shall be entitled to the applicable fiscal and
any holder of a mineral agreement, financial or non-fiscal incentives as provided for under Executive
technical assistance agreement or exploration permit Order No. 226, otherwise known as the Omnibus
on public or private lands, an annual occupation fee Investments Code of 1987: Provided, That holders of
in accordance with the following schedule; exploration permits may register with the Board of
Investments and be entitled to the fiscal incentives
(a) For exploration permit - Five pesos (P5.00) per granted under the said Code for the duration of the
hectare or fraction thereof per annum; permits or extensions thereof: Provided, further, That
mining activities shall always be included in the
(b) For mineral agreements and financial or technical investment priorities plan.
assistance agreements - Fifty pesos (P50.00) per
hectare or fraction thereof per annum; and Sec. 91 Incentives for Pollution Control Devices.
Pollution control devices acquired, constructed or
(c) For mineral reservation - One hundred pesos installed by contractors shall not be considered as
(P100.00) per hectare or fraction thereof per improvements on the land or building where they are
annum. placed, and shall not be subject to real property and
other taxes or assessments: Provided, however, That
payment of mine wastes and tailings fees is not Sec. 94 Investment Guarantees. The contractor shall be
exempted. entitled to the basic rights and guarantees provided in
the Constitution and such other rights recognized by
Sec. 92 Income Tax-Carry Forward of Losses. A net the government as enumerated hereunder.
operating loss without the benefit of incentives
incurred in any of the first ten (10) years of operations (a) Repatriation of investments. The right to
may be carried over as a deduction from taxable repatriate the entire proceeds of the liquidation of the
income for the next five (5) years immediately foreign investment in the currency in which the
following the year of such loss. The entire amount of investment was originally made and at the exchange
the loss shall be carried over to the first of the five (5) rate prevailing at the time of repatriation.
taxable years following the loss, and any portion of
such loss which exceeds the taxable income of such (b) Remittance of earnings. The right to remit
first year shall be deducted in like manner from the earnings from the investment in the currency in which
taxable income of the next remaining four (4) years. the foreign investment was originally made at the
exchange rate prevailing at the time of remittance.
Sec. 93 Income Tax-Accelerated Depreciation. Fixed
assets may be depreciated as follows: (c) Foreign loans and contracts. The right to
remit at the exchange rate prevailing at the time of
(a) To the extent of not more than twice as fast as the remittance such sums as may be necessary to meet the
normal rate of depreciation or depreciated at normal payments of interest and principal on foreign loans and
rate of depreciation if the expected life is ten foreign obligations arising from financial or technical
(10) years or less; or assistance contracts.

(b) Depreciated over any number of years between five (d) Freedom from expropriation. The right to be
(5) years and the expected life if the latter is more than freefrom expropriation by the government of the
ten (10) years, and the depreciation thereon allowed as property represented by investments or loans, or of the
deduction from taxable income: Provided, That the property of the enterprise except for public use or in
contractor notifies the Bureau of Internal Revenue at the interest of national welfare or defense and upon
the beginning of the depreciation period which payment of just compensation. In such cases, foreign
depreciation rate allowed by this section will be used. investors or enterprises shall have the right to remit
sums received as compensation for the expropriated
In computing for taxable income, unless otherwise property in the currency in which the investment was
provided in this Act, the contractor may, at his option, originally made and at the exchange rate prevailing at
deduct exploration and development expenditures the time of remittance.
accumulated at cost as of the date of the prospecting or
exploration and development expenditures paid or (e) Requisition of investment. The right to be free
incurred during the taxable year: Provided, That the from requisition of the property represented by the
total amount deductible for exploration and investment or of the property of the enterprises except
development expenditures shall not exceed twenty- in case of war or national emergency and only for the
five per centum (25%) of the net income from mining duration thereof. Just compensation shall be
operations. The actual exploration and development determined and paid either at the time or immediately
expenditures minus the twenty-five per centum (25%) after cessation of the state of war or national
net income from mining shall be carried forward to the emergency. Payments received as compensation for
succeeding years until fully deducted. the requisitioned property may be remitted in the
currency in which the investments were originally
Net income from mining operation is defined as gross made and at the exchange rate prevailing at the time of
income from operations less allowable deductions remittance.
which are necessary or related to mining operations.
Allowable deductions shall include mining, milling (f) Confidentiality. Any confidential information
and marketing expenses, depreciation or properties supplied by the contractor pursuant to this Act and its
directly used in the mining operations. This paragraph implementing rules and regulations shall be treated as
shall not apply to expenditures for the acquisition or such by the department and the Government, and
improvement of property of a character which is during the term of the project to which it relates.
subject to the allowances for depreciation.
CHAPTER XVII functions of which shall be provided in the
GROUND FOR CANCELLATION, implementing rules and regulations of this Act.
REVOCATION,
AND TERMINATION CHAPTER XIX
PENAL PROVISIONS
Sec. 95 Late or Non-filing of Requirements. Failure
of the permittee or contractor to comply with any of Sec. 101 False Statements. Any person who knowingly
the requirements provided in this Act or in its presents any false application, declaration, or evidence
implementing rules and regulations, without a valid to the Government or publishes or causes to be
reason, shall be sufficient ground from the suspension published any prospectus or other information
of any permit or agreement provided under this Act. containing any false statement relating to mines,
mining operations or mineral agreements, financial or
Sec. 96 Violation of the Terms and Conditions of technical assistance agreements and permits shall,
Permits or Agreements. Violations of the terms and upon conviction, be penalized by a fine of not
conditions of the permits or agreements shall be a exceeding Ten Thousand Pesos (P10,000.00).
sufficient ground for cancellation of the same.
Sec. 102 Illegal Exploration. Any person undertaking
Sec. 97 Non-payment of taxes and Fees. Failure to pay exploration work without the necessary exploration
the taxes and fees due the Government for two (2) permit shall, upon conviction, be penalized by a fine of
consecutive years shall cause the cancellation of the not exceeding Fifty thousand pesos (P50,000.00).
exploration permit, mineral agreement, financial or
technical assistance agreement and other agreements Sec. 103 Theft of Minerals. Any person extracting
and the re-opening of the area subject thereof to new minerals and disposing the same without a mining
applicants. agreement, lease, permit, license, or steals minerals or
ores or the products thereof from mines or mills or
Sec. 98 Suspension or Cancellation of Tax Incentives processing plants shall, upon conviction, be
and Credits. Failure to abide by the terms and imprisoned from six (6) months to six (6) years or pay
conditions of tax incentives and credits shall cause the a fine from Ten thousand pesos (P10,000.00) to
suspension or cancellation of said incentives and Twenty thousand pesos (P20,000.00), or both, at the
credits. discretion of the appropriate court. In addition, he shall
be liable to pay damages and compensation for the
Sec. 99 Falsehood or Omission of Facts in the minerals removed, extracted, and disposed of. In the
Statement. All statements made in the exploration case of associations, partnerships, or corporations, the
permit, mining agreement and financial or technical president and each of the directors thereof shall be
assistance shall be considered as conditions and responsible for the acts committed by such association,
essential parts thereof and any falsehood in said corporation, or partnership.
statements or omission of facts therein which may
alter, change or affect substantially the facts set forth Sec. 104 Destruction of Mining Structures. Any person
in said statements may cause the revocation and who willfully destroys or damages structures in or on
termination of the exploration permit, mining the mining area or on the mill sites shall, upon
agreement and financial or technical assistance conviction, be imprisoned for a period not to exceed
agreement. five (5) years and shall, in addition, pay compensation
for the damages which may have been caused thereby.
CHAPTER XVIII
ORGANIZATIONAL Sec. 105 Mines Arson. Any person who willfully sets
AND INSTITUTIONAL fire to any mineral stockpile, mine or workings, fittings
ARRANGEMENT or a mine, shall be guilty of arson and shall be
punished, upon conviction, by the appropriate court in
Sec. 100 From Staff Bureau to Line Bureau. The Mines accordance with the provisions of the Revised Penal
and Geosciences Bureau is hereby transformed into a Code and shall, in addition, pay compensation for the
line bureau consistent with Section 9 of this Act: damages caused thereby.
Provided, That under the Mines and Geosciences
Bureau shall be the necessary mines regional, district Sec. 106 Willful Damage to a Mine. Any person who
and other pertinent offices - the number and specific willfully damages a mine, unlawfully causes water to
run into a mine, or obstructs any shaft or passage to a
mine, or renders useless, damages or destroys any rationalize viable small-scale mining activities in order
machine, appliance, apparatus; rope, chain, tackle, or to generate more employment opportunities and
any other things used in a mine, shall be punished, provide an equitable sharing of the nation's wealth and
upon conviction, by the appropriate court, by natural resources, giving due regard to existing rights
imprisonment not exceeding a period of five (5) years as herein provided.
and shall, in addition, pay compensation for the
damages caused thereby. Sec. 3. Definitions. For purposes of this Act, the
following terms shall be defined as follows:
Sec. 107 Illegal Obstruction to Permittees or (a) "Mineralized areas" refer to areas with
Contractors. Any person who, without justifiable naturally occurring mineral deposits of gold, silver,
cause, prevents or obstructs the holder of any permit, chromite, kaolin, silica, marble, gravel, clay and like
agreement or lease from undertaking his mining mineral resources;
operations shall be punished, upon conviction by the
appropriate court, by a fine not exceeding Five
thousand pesos (P5,000.00) or imprisonment not (b) "Small-scale mining" refers to mining
exceeding one (1) year, or both, at the discretion of the activities which rely heavily on manual labor using
court. simple implement and methods and do not use
explosives or heavy mining equipment;
Sec. 108 Violation of the Terms and Conditions of the
Environmental Compliance Certificate. Any person (c) "Small-scale miners" refer to Filipino citizens
who willfully violates or grossly neglects to abide by who, individually or in the company of other Filipino
the terms and conditions of the environmental citizens, voluntarily form a cooperative duly licensed
compliance certificate issued to said person and which by the Department of Environment and Natural
causes environmental damage through pollution shall Resources to engage, under the terms and conditions
suffer the penalty of imprisonment of six (6) months to of a contract, in the extraction or removal of minerals
six (6) years or a fine of Fifty thousand pesos or ore-bearing materials from the ground;
(P50,000.00) to Two Hundered Thousand Pesos
(P200,000.00), or both at the discretion of the court. (d) "Small-scale mining contract" refers to
coproduction, joint venture or mineral production
Sec. 109 Illegal Obstruction to Government Officials. sharing agreement between the State and a smallscale
Any person who illegally prevents or obstructs the mining contractor for the small-scale utilization of a
Secretary, the Director or any of their representatives plot of mineral land;
in the performance of their duties under the provisions
of this Act and of the regulations promulgated (e) "Small-scale mining contractor" refers to an
hereunder shall be punished, upon conviction, by the individual or a cooperative of small-scale miners,
appropriate court, by a fine not exceeding Five registered with the Securities and Exchange
thousand pesos (P5,000.00) or by imprisonment not Commission or other appropriate government agency,
exceeding one (1) year, or both, at the discretion of the which has entered into an agreement with the State for
court. the small-scale utilization of a plot of mineral land
within a people's small-scale mining area;
Sec. 110 Other Violations. Any other violation of this
Act and its implementing rules and regulations shall
(f) "Active mining area" refers to areas under
constitute an offense punishable with a fine not
actual exploration, development, exploitation or
exceeding five thousand pesos (P5,000.00).
commercial production as determined by the Secretary
after the necessary field investigation or verification
Sec. 111 Fines. The Secretary is authorized to charge
including contiguous and geologically related areas
fines for late or nonsubmission of reports in
belonging to the same claimowner and/or under
accordance with the implementing rules and
contract with an operator, but in no case to exceed the
regulations of this Act
maximum area allowed by law;

REPUBLIC ACT NO. 7076: People's Small-scale (g) "Existing mining right" refers to perfected
Mining Act and subsisting claim, lease, license or permit covering
a mineralized area prior to its declaration as a people's
Sec. 2. Declaration of Policy. It is hereby declared small-scale mining area;
of the State to promote, develop, protect and
(h) "Claimowner" refers to a holder of an existing (e) The extension of assistance in processing and
mining right; marketing;

(i) "Processor" refers to a person issued a license (f) The generation of ancillary livelihood activities;
to engage in the treatment of minerals or ore-bearing
materials such as by gravity concentration, leaching (g) The regulation of the small-scale mining industry
benefication, cyanidation, cutting, sizing, polishing with the view to encourage growth and
and other similar activities; productivity; and

(j) "License" refers to the privilege granted to a (h) The efficient collection of government revenue.
person to legitimately pursue his occupation as a
small-scale miner or processor under this Act; Sec. 5. Declaration of People's Small-scale Mining
Areas. The Board is hereby authorized to declare
(k) "Mining plan" refers to a two-year program of and set aside people's small-scale mining areas in sites
activities and methodologies employed in the onshore suitable for small-scale mining, subject to
extraction and production of minerals or ore-bearing review by the Secretary, immediately giving priority to
materials, including the financial plan and other areas already occupied and actively mined by small-
resources in support thereof; scale miners before August 1, 1987: Provided, That
such areas are not considered as active mining areas:
(l) "Director" refers to the regional executive Provided, further, That the minerals found therein are
director of the Department of Environment and Natural technically and commercially suitable for small-scale
Resources; and mining activities: Provided, finally, That the areas are
not covered by existing forest rights or reservations
(m) "Secretary" refers to the Secretary of the and have not been declared as tourist or marine
Department of Environment and Natural Resources. reserved, parks and wildlife reservations, unless their
status as such is withdrawn by competent authority.
Sec. 4. People's Small-scale Mining Program. For Sec. 6. Future People's Small-scale Mining Areas.
the purpose of carrying out the declared policy The following lands, when suitable for small-scale
provided in Section 2 hereof, there is hereby mining, may be declared by the Board as people's small
established a People's Small-scale Mining Program to scale mining areas:
be implemented by the Secretary of the Department of (a) Public lands not subject to any existing right; vi
Environment and Natural Resources, hereinafter called
the Department, in coordination with other concerned
(b) Public lands covered by existing mining rights
government agencies, designed to achieve an orderly,
which are not active mining areas; and
systematic and rational scheme for the small-scale
development and utilization of mineral resources in
certain mineral areas in order to address the social, (c) Private lands, subject to certain rights and
economic, technical, and environmental connected conditions, except those with substantial
with small-scale mining activities. improvements or in bona fide and regular use as a
The People's Small-scale Mining Program shall yard, stockyard, garden, plant nursery, plantation,
include the following features: cemetery or burial site, or land situated within one
hundred meters (100 m.) from such cemetery or
(a) The identification, segregation and reservation of
burial site, water reservoir or a separate parcel of
certain mineral lands as people's small-scale
land with an area of ten thousand square meters
mining areas;
(10,000 sq. m.) or less.
(b) The recognition of prior existing rights and
productivity;
Sec. 7. Ancestral Lands. No ancestral land may be
declared as a people's small-scale mining area without
(c) The encouragement of the formation of
the prior consent of the cultural communities
cooperatives;
concerned: Provided, That, if ancestral lands are
declared as people's small-scale mining areas, the
(d) The extension of technical and financial assistance, members of the cultural communities therein shall be
and other social services; given priority in the awarding of small-scale mining
contracts.
Sec. 8. Registration of Small-scale Miners. All People's Small-scale Mining Program, subject to
persons undertaking small-scale mining activities shall payment of reasonable fees to the operator,
register as miners with the Board and may organize claimowner, landowner or lessor.
themselves into cooperatives in order to qualify for the
awarding of a people's small-scale mining contract. Sec. 12. Rights Under a People's Small-scale Mining
Contract. A people's small-scale mining contract
Sec. 9. Award of People's Small-scale Mining entitles the small-scale mining contractor to the right
Contracts. A people's small-scale mining contract to mine, extract and dispose of mineral ores for
may be awarded by the Board to small-scale miners commercial purposes. In no case shall a small-scale
who have voluntarily organized and have duly mining contract be subcontracted, assigned or
registered with the appropriate government agency as otherwise transferred.
an individual miner or cooperative; Provided, That
only one (1) people's small-scale mining contract may Sec. 13. Terms and Conditions of the Contract. A
be awarded at any one time to a small-scale mining contract shall have a term of two (2) years, renewable
operations within one (1) year from the date of award: subject to verification by the Board for like periods as
Provided, further, That priority shall be given or city long as the contractor complies with the provisions set
where the small-scale mining area is located. forth in this Act, and confers upon the contractor the
right to mine within the contract area: Provided, That
Applications for a contract shall be subject to a the holder of a small-scale mining contract shall have
reasonable fee to be paid to the Department of the following duties and obligations:
Environment and Natural Resources regional office
having jurisdiction over the area. (a) Undertake mining activities only in accordance
with a mining plan duly approved by the Board; (b)
Sec. 10. Extent of Contract Area. The Board shall Abide by the Mines and Geosciences Bureau and the
determine the reasonable size and shape of the contract small-scale Mining Safety Rules and Regulations;
area following the meridional block system established
under Presidential Decree No. 463, as amended, (c) Comply with his obligations to the holder of an
otherwise known as the Mineral Resources existing mining right;
Development Decree of 1974, but in no case shall the
area exceed twenty hectares (20 has.) per contractor (d) Pay all taxes, royalties or government production
and the depth or length of the tunnel or adit not share as are now or may hereafter be provided by
exceeding that recommended by the director taking law;
into account the following circumstances:
(e) Comply with pertinent rules and regulations on
(a) Size of membership and capitalization of the environmental protection and conservation,
cooperative; (b) Size of mineralized area; particularly those on tree-cutting mineral-
processing and pollution control;
(c) Quantity of mineral deposits; (f) File under oath at the end of each month a
detailed production and financial report to the Board;
(d) Safety of miners; and

(e) Environmental impact and other considerations; (g) Assume responsibility for the safety of persons
and working in the mines.

(f) Other related 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
Sec. 11. Easement Rights. Upon the declaration of
and the small-scale miners therein are encouraged to
a people's small-scale mining area, the director, in
enter into a voluntary and acceptable contractual
consultation with the operator, claimowner, landowner
agreement with respect to the smallscale utilization of
or lessor of an affected area, shall determine the right
the mineral values from the area under claim. In case
of the small scale miners to existing facilities such as
of disagreement, the claimowner shall be entitled to the
mining and logging roads, private roads, port and
following rights and privileges:
communication facilities, processing plants which are
necessary for the effective implementation of the
(a) Exemption from the performance of annual The Central Bank shall establish as many buying
work obligations and payment of occupation fees, stations in gold-rush areas to fully service the
rental, and real property taxes; requirements of the small-scale minerals thereat.

(b) Subject to the approval of the Board, free Sec. 18. Custom Mills. The establishment and
access to the contract area to conduct metallurgical operation of safe and efficient customs mills to process
tests, explorations and other activities, provided such minerals or ore-bearing materials shall be limited to
activities do not unduly interfere with the operations of mineral processing zones duly designated by the local
the small-scale miners; and government unit concerned upon recommendation of
the Board.
(c) Royalty equivalent to one and one half
percent (1 1/2%) of the gross value of the metallic In mining areas where the private sector is unable to
mineral output or one percent (1%) of the gross value establish custom mills, the Government shall construct
of the nonmetallic mineral output to be paid to the such custom mills upon the recommendation of the
claimowner: Provided, That such rights and privileges Board based on the viability of the project.
shall be available only if he is not delinquent and other
performance of his annual work obligations and other
The Board shall issue licenses for the operation of
requirements for the last two (2) years prior to the
effectivity of this Act. custom mills and other processing plants subject to
pollution control and safety standards.
Sec. 15. Rights of Private Landowners. The private
landowner or lawful possessor shall be notified of any The Department shall establish assay laboratories to
cross-check the integrity of custom mills and to render
plan or petition to declare his land as a people's small-
metallurgical and laboratory services to mines.
scale mining area. Said landowner may oppose such
plan or petition in an appropriate proceeding and
hearing conducted before the Board. Custom mills shall be constituted as withholding
agents for the royalties, production share or other taxes
If a private land is declared as a people's small-scale due the Government.
mining area, the owner and the small-scale mining
contractors are encouraged to enter into a voluntary Sec. 19. Government Share and Allotment. The
and acceptable contractual agreement for the revenue to be derived by the Government from the
smallscale utilization of the mineral values from the operation of the mining program herein established
private land: Provided, That the owner shall in all cases shall be subject to the sharing provided in the Local
be entitled to the payment of actual damages which he Government Code.
may suffer as a result of such declaration: Provided,
further, That royalties paid to the owner shall in no Sec. 20. People's Small-scale Mining Protection Fund.
case exceed one percent (1%) of the gross value of the There is hereby created a People's Smallscale
minerals recovered as royalty. Mining Protection Fund which shall be fifteen percent
(15%) of the national government's share due the
Sec. 16. Ownership of Mill Tailings. The Government which shall be used primarily for
smallscale mining contractor shall be the owner of all information dissemination and training of smallscale
mill tailings produced from the contract area. He may miners on safety, health and environmental protection,
sell the tailings or have them processed in any custom and the establishment of mine rescue and recovery
mill in the area: Provided, That, if the small-scale teams including the procurement of rescue equipment
mining contractor decide to sell its mill tailings, the necessary in cases of emergencies such as landslides,
claimowner shall have a preemptive right to purchase tunnel collapse, or the like.
said mill tailings at the prevailing market price.
Sec. 17. Sale of Gold. All gold produced by The fund shall also be made available to address the
smallscale miners in any mineral area shall be sold to needs of the small-scale miners brought about by
the Central Bank, or its duly authorized accidents and/or fortuitous events.
representatives, which shall buy it at prices
competitive with those prevailing in the world market Sec. 21. Rescission of Contracts and Administrative
regardless of volume or weight.
Fines. The noncompliance with the terms and
conditions of the contract or violation of the rules and
regulations issued by the Secretary pursuant to this
Act, as well as the abandonment of the mining site by Sec. 25. Composition of the Provincial/City Mining
the contractor, shall constitute a ground for the Regulatory Board. The Board shall be composed of
cancellation of the contracts and the ejectment from the the Department of Environment and Natural Resources
people's small-scale mining area of the contractor. In representative as Chairman; and the representative of
addition, the Secretary may impose fines against the the governor or city mayor, as the representative of the
violator in an amount of not less than Twenty thousand governor or city mayor, as the case may be, one (1)
pesos (P20,000.00) and not more than One hundred small scale mining representative, one (1) big-scale
thousand pesos mining representative, and the representative from a
(P100,000.00). Nonpayment of the fine imposed shall nongovernment organization who shall come from an
render the small-scale mining contractor ineligible for environmental group, as members.
other small-scale mining contracts.
The representatives from the private sector shall be
nominated by their respective organizations and
Sec. 22. Reversion of People's Small-scale Mining
appointed by the Department regional director. The
Areas. The Secretary, upon recommendation of the
Department shall provide the staff support to the
director, shall withdraw the status of the people's
Board.
small-scale mining area when it can no longer feasibly
operated on a small-scale mining basis or when the
safety, health and environmental conditions warrant Sec. 26. Administrative Supervision over the People's
that the same shall revert to the State for proper Small-scale Mining Program. The Secretary
disposition. through his representative shall exercise direct
supervision and control over the program and activities
of the small-scale miners within the people's small-
Sec. 23. Actual Occupation by Small-scale Miners.
scale mining area.
Small-scale miners who have been in actual operation
of mineral lands on or before August 1, 1987 as
determined by the Board shall not be dispossessed, The Secretary shall within ninety (90) days from the
ejected or removed from said areas: Provided, That effectivity of this Act promulgate rules and regulations
they comply with the provisions of this Act. to effectively implement the provisions of the same.
Priority shall be given to such rules and regulations
that will ensure the least disruption in the operations of
Sec. 24. Provincial/City Mining Regulatory Board.
the small-scale miners.
There is hereby created under the direct supervision
and control of the Secretary a provincial/city mining
regulatory board, herein called the Board, which shall Sec. 27. Penal Sanctions. Violations of the
be the implementing agency of the Department, and provisions of this Act or of the rules and regulations
shall exercise the following powers and functions, issued pursuant hereto shall be penalized with
subject to review by the Secretary: imprisonment of not less than six (6) months nor more
than six (6) years and shall include the confiscation and
seizure of equipment, tools and instruments.
(a) Declare and segregate existing gold-rush areas for
small-scale mining;

(b) Reserve future gold and other mining areas for


small-scale mining; Cases

(c) Award contracts to small-scale miners; La Bugal Blaan Tribal Association Inc., et al. V.
Victor O. Ramos, Secretary Department of
(d) Formulate and implement rules and regulations Environment and Natural Resources; Horacio
related to small-scale mining; Ramos, Director, Mines and Geosciences Bureau
(MGB-DENR);
(e) Settle disputes, conflicts or litigations over
conflicting claims within a people's small-scale The constitutional provision allowing the President to
mining area, an area that is declared a small- enter into FTAAs is an exception to the rule that
mining; and participation in the nations natural resources is
reserved exclusively to Filipinos. Provision must be
(f) Perform such other functions as may be necessary construed strictly against their enjoyment by
to achieve the goals and objectives of this Act. nonFilipinos.
RA 7942 (The Philippine Mining Act) took effect on 3. Whether the Court has a role in the exercise
April 9, 1995. Before the effectivity of RA 7942, or on of the power of control over the EDU of our
March 30, 1995, the President signed a Financial and natural resources
Technical Assistance Agreement (FTAA) with
WMCP, a corporation organized under Philippine HELD:
laws, covering close to 100, 000 hectares of land in
1) RA 7942 or the Philippine Mining Act of 1995
South Cotabato, Sultan Kudarat, Davao del Sur and
is unconstitutional for permitting fully foreign
North
owned corporations to exploit Philippine natural
Cotabato. On August 15, 1995, the Environment
resources.
Secretary Victor Ramos issued DENR Administrative
Order 95-23, which was later repealed by DENR Article XII Section 2 of the 1987 Constitution retained
Administrative Order 96-40, adopted on December 20, the Regalian doctrine which states that All lands of
1996. the public domain, waters, minerals, coal, petroleum,
and other minerals, coal, petroleum, and other mineral
Petitioners prayed that RA 7942, its implementing
oils, all forces of potential energy, fisheries, forests or
rules, and the FTAA between the government and
timber, wildlife, flora and fauna, and other natural
WMCP be declared unconstitutional on ground that
resources are owned by the State. The same section
they allow fully foreign owned corporations like
also states that, exploration and development and
WMCP to exploit, explore and develop Philippine
utilization of natural resources shall be under the full
mineral resources in contravention of Article XII control and supervision of the State.
Section 2 paragraphs 2 and 4 of the Charter.
Conspicuously absent in Section 2 is the provision in
In January 2001, MMC a publicly listed Australian
the 1935 and 1973 Constitutions authorizing the State
mining and exploration company sold its whole stake
to grant licenses, concessions, or leases for the
in WMCP to Sagittarius Mines, 60% of which is
exploration, exploitation, development or utilization of
owned by Filipinos while 40% of which is owned by
natural resources. Y such omission, the utilization of
Indophil Resources, an Australian company. DENR
inalienable lands of public domain through license,
approved the transfer and registration of the FTAA in
concession or lease is no longer allowed under the
Sagittarius name but Lepanto Consolidated assailed
1987 Constitution.
the same. The latter case is still pending before the
Court of Appeals. Under the concession system, the concessionaire
makes a direct equity investment for the purpose of
EO 279, issued by former President Aquino on July 25,
exploiting a particular natural resource within a given
1987, authorizes the DENR to accept, consider and
area. The concession amounts to complete control by
evaluate proposals from foreign owned corporations or
the concessionaire over the countrys natural resource,
foreign investors for contracts or agreements involving
for it is given exclusive and plenary rights to exploit a
either technical or financial assistance for large scale
particular resource at the point of extraction.
exploration, development and utilization of minerals
which upon appropriate recommendation of the The 1987 Constitution, moreover, has deleted the
(DENR) Secretary, the president may execute with phrase management or other forms of assistance in
foreign proponent. WMCP likewise contended that the the 1973 Charter. The present Constitution now allows
annulment of the FTAA would violate a treaty between only technical and financial assistance. The
the Philippines and Australia which provides for the management or operation of mining activities by
protection of Australian investments. foreign contractors, the primary feature of service
contracts was precisely the evil the drafters of the 1987
ISSUES:
Constitution sought to avoid.
1. Whether or not the Philippine Mining Act is
unconstitutional for allowing fully The constitutional provision allowing the President to
foreignowned corporations to exploit enter into FTAAs is an exception to the rule that
Philippine mineral resources participation in the nations natural resources is
reserved exclusively to Filipinos. Accordingly such
2. Whether or not the FTAA between the provision must be construed strictly against their
government and WMCP is a service enjoyment by non-Filipinos. Therefore RA 7942 is
contract that permits fully foreign owned invalid insofar as said act authorizes service contracts.
companies to exploit Philippine mineral Although the statute employs the phrase financial and
resources technical agreements in accordance with the 1987
Constitution, its pertinent provisions actually treat to suppress. Consequently, the contract from which
these they spring must be struck down.
agreements as service contracts that grant beneficial
ownership to foreign contractors contrary to the 3) The Chief Executive is the official
fundamental law. constitutionally mandated to enter into
The underlying assumption in the provisions of the law agreements with foreign owned corporations. On
is that the foreign contractor manages the mineral the other hand, Congress may review the action of
resources just like the foreign contractor in a service the President once it is notified of every contract
contract. By allowing foreign contractors to manage or entered into in accordance with this
operate all the aspects of the mining operation, RA [constitutional] provision within thirty days from
7942 has in effect conveyed beneficial ownership over its execution. In contrast to this express mandate
the nations mineral resources to these contractors, of the President and Congress in the exploration,
leaving the State with nothing but bare title thereto. development and utilization (EDU) of natural
resources, Article XII of the
The same provisions, whether by design or Constitution is silent on the role of the judiciary.
inadvertence, permit a circumvention of the However, should the President and/or Congress
constitutionally ordained 60-40% capitalization gravely abuse their discretion in this regard, the
requirement for corporations or associations engaged courts may -- in a proper case -- exercise their
in the exploitation, development and utilization of residual duty under Article VIII. Clearly then, the
Philippine natural resources. judiciary should not inordinately interfere in the
exercise of this presidential power of control over
When parts of a statute are so mutually dependent and the EDU of our natural resources.
connected as conditions, considerations, inducements
or compensations for each other as to warrant a belief Under the doctrine of separation of powers and due
that the legislature intended them as a whole, then if respect for co-equal and coordinate branches of
some parts are unconstitutional, all provisions that are government, the Court must restrain itself from
thus dependent, conditional or connected must fall intruding into policy matters and must allow the
with them. President and Congress maximum discretion in using
the resources of our country and in securing the
Under Article XII Section 2 of the 1987 Charter, assistance of foreign groups to eradicate the grinding
foreign owned corporations are limited only to merely poverty of our people and answer their cry for viable
technical or financial assistance to the State for large employment opportunities in the country. The
scale exploration, development and utilization of judiciary is loath to interfere with the due exercise by
minerals, petroleum and other mineral oils. coequal branches of government of their official
2) The FTAA between WMCP and the functions. As aptly spelled out seven decades ago by
Philippine government is likewise Justice George Malcolm, Just as the Supreme Court,
unconstitutional since the agreement itself is a as the guardian of constitutional rights, should not
service contract. sanction usurpations by any other department of
government, so should it as strictly confine its own
Section 1.3 of the FTAA grants WMCP, a fully foreign sphere of influence to the powers expressly or by
owned corporation, the exclusive right to explore, implication conferred on it by the Organic Act. Let
exploit, utilize and dispose of all minerals and the development of the mining industry be the
byproducts that may be produced from the contract responsibility of the political branches of government.
area. Section 1.2 of the same agreement provides that And let not the Court interfere inordinately and
WMCP shall provide all financing, technology, unnecessarily. The Constitution of the Philippines is
management, and personnel necessary for the Mining the supreme law of the land. It is the repository of all
Operations. the aspirations and hopes of all the people.
These contractual stipulations and related provisions in The Constitution should be read in broad, life-giving
the FTAA taken together, grant WMCP beneficial strokes. It should not be used to strangulate economic
ownership over natural resources that properly belong growth or to serve narrow, parochial interests. Rather,
to the State and are intended for the benefit of its it should be construed to grant the President and
citizens. These stipulations are abhorrent to the 1987 Congress sufficient discretion and reasonable leeway
Constitution. They are precisely the vices that the to enable them to attract foreign investments and
fundamental law seeks to avoid, the evils that it aims 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 Excerpts from then deliberations of the Constitutional
Blaan and other tribal groups, and commend their Commission likewise show that its members discussed
efforts to uplift their communities. However, the Court technical or financial assistance agreements in the
cannot justify the invalidation of an otherwise same breath as service contracts and used the terms
constitutional statute along with its implementing interchangeably. The members of the Concom actually
rules, or the nullification of an otherwise legal and had in mind the Marcos-era service contracts that they
binding FTAA contract. The Court believes that it is were more familiar with (but which they duly modified
not unconstitutional to allow a wide degree of and restricted so as to prevent present abuses), when
discretion to the Chief Executive, given the nature and they were crafting and polishing the provisions dealing
complexity of such agreements, the humongous with financial and/or technical assistance agreements.
amounts of capital and financing required for large-
scale mining operations, the complicated technology The Concom discussions in their entirely had to do
needed, and the intricacies of international trade, with service contracts that might be given to
coupled with the States need to maintain flexibility in foreignowned corporations as exceptions to the
its dealings, in order to preserve and enhance our general principle of Filipino control of the economy
countrys competitiveness in world markets. On the
basis of this control standard, the Court upholds the
APEX MINING CO., INC. vs. SOUTHEAST
constitutionality of the Philippine Mining Law, its
MINDANAO GOLD MINING CORP
Implementing Rules and Regulations -- insofar as they
relate to financial and technical agreements -- as well
Proclamation No. 369 was issued to establish the
as the subject Financial and Technical Assistance
Agusan-Davao-Surigao Forest Reserve.Camilo Banad
Agreement
and his group, who claimed to have first discovered
traces of gold in Mount Diwata, filed aDeclaration of
Location for six mining claims in the area. Apex
Separate Opinion of Justice Panganiban Mining Corporation entered intooperating agreements
with Banad and his group.Marcopper Mining
The FTAA is now to be implemented by a Filipino Corporation filed mining claims for areas adjacent to
corporation, therefore the Court can no longer declare the area covered by the DOL of Banad and his group.
it unconstitutional. The CA case is a dispute between MMC abandoned the claims and instead applied for a
two Filipino corporations (Sagittarius and Lepanto) prospecting permit with theBureau of Forest
both claiming the right to purchase the foreign shares Development. BFD issued a Prospecting Permit to
in WMCP. Regardless of which side eventually MMC covering an area within theforest reserve under
prevails, the FTAA would still be in the hands of a Proclamation No. 369. The permit embraced the areas
qualified Filipino firm. The present Constitution, claimed by Apex and the other individual mining
moreover, does not limit foreign participation in the claimants. MMC filed before the BMG a Petition for
exploration, development and utilization of minerals, the Cancellation of the MiningClaims of Apex and
petroleum and mineral oils to financial or technical Small Scale Mining Permits.
assistance. The drafters choice of words and excerpts
from deliberations of the Constitutional Commission MMC alleged that the areas covered by its EP 133 and
reveal that the present Charter did not limit to financial the mining claims of Apex were within an established
or technical assistance the participation of foreign and existing forest reservation. Apex filed a motion to
corporations in the large-scale exploration, dismiss MMCs petition alleging that its mining
development, and utilization of minerals, petroleum claims are not within any established or proclaimed
and mineral oils. The drafters use of the phrase forest reserve, and as such, the acquisition of mining
agreements xxx involving xxx technical or financial rights thereto must be undertaken via registration of
assistance in Article XII Section 2 of the 1987 DOL with the BMG and not through the filing of
Charter does not absolutely show intent to exclude application for permit to prospect with the BFD.
other modes of assistance. Rather the phrase signifies However, Supreme Court rendered a Decision against
the possibility of the inclusion of other activities, Apex holding that the disputed area is a forest reserve;
provided they bear some reasonable relationship to and hence, the proper procedure in acquiring mining rights
compatibility with financial or technical assistance. If therein is by initially applying for a permit to prospect
the drafters intended to strictly confine foreign with the BFD and not through a registration of DOL
corporations to financial or technical assistance only, with the
they would have employed BMG. DENR issued Department Administrative Order
restrictive or stringent language.
No. 66 declaring areas covered by the AgusanDavao- to stake its claim over the Diwalwal gold rush which
Surigao Forest Reserve as non-forest lands and open to was granted by the Court. These cases, however, were
small-scale mining purposes. remanded to the Court of Appeals for proper
disposition pursuant to Rule 43 of the 1997 Rules of
A portion of thecontested area open to small scale Civil Procedure. The Court of Appeals consolidated
miners, several mining entities filed applications for the remanded cases as CA-G.R. SP No. 61215 and No.
Mineral Production Sharing Agreement. Monkayo 61216.The Court of Appeals affirmed in toto the
Integrated Small Scale Miners Association (MISSMA) decision of the PA and declared null and void the MAB
filed an MPSA application which was denied by the decision. Hence, the instant Petitions for Review on
BMG on the grounds that the area applied for is within Certiorari under Rule 45 of the Rules of Court filed by
the area covered by MMC EP 133and that the Apex, Balite and MAB. During the pendency of these
MISSMA was not qualified to apply for an Petitions, President Gloria Macapagal-Arroyo issued
MPSA.MMC assigned EP 133 to Southeast Mindanao Proclamation No. 297.This proclamation excluded an
Gold Mining Corporation. BMG accepted and area of 8,100 hectares located in Monkayo,
registered SEMs MPSA application and the Deed of Compostela Valley, and proclaimed the same as
Assignment over EP 133 executed in its favor by mineral reservation and as environmentally critical
MMC.SEMs application was designated MPSA area. Subsequently, DENR Administrative Order No.
Application No. 128 (MPSAA 128).The PA rendered 2002-18 was issued declaring an emergency situation
a resolution that EP 133 was valid and subsisting. It in the Diwalwal gold rush area and ordering the
also declared that the BMG Director, under Section 99 stoppage of all mining operations therein. Thereafter,
of the Consolidated Mines Administrative Order Executive Order No. 217was issued by the President
implementing Presidential Decree No. 463, was creating the National Task Force Diwalwal which is
authorized to issue exploration permits and to renew tasked to address the situation in the Diwalwal Gold
the same without limit. The validity of Ex loration Rush Area.
Permit No. 133 was reiterated and all the adverse
claims against MPSAA No.128 are DISMISSED. Issue

Undaunted by the PA ruling, the adverse claimants Whether the subsequent acts of the executive
appealed to the Mines Adjudication Board. In department such as the issuance of Proclamation No.
aDecision, the MAB considered erroneous the 297,and DAO No. 2002-18 can outweigh Apex and
dismissal by the PA of the adverse claims filed Balites claims over the Diwalwal Gold Rush Area.
againstMMC and SEM over a mere technicality of
failure to submit a sketch plan. It argued that the rules Held
of procedure are not meant to defeat substantial justice
as the former are merely secondary in importance to Upon the effectivity of the 1987 Constitution, the State
the latter. Dealing with the question on EP 133s assumed a more dynamic role in the
validity, the MAB opined that said issue was not exploration,development and utilization of the natural
crucial and was irrelevant in adjudicating the appealed resources of the country. With this policy, the State
case because EP 133 has long expired due to its non- may pursuefull control and supervision of the
renewal and that the holder of the same, MMC, was no exploration, development and utilization of the
longer a claimant of the Agusan-Davao-Surigao Forest countrys naturalmineral resources. The options open
Reserve having relinquished its right to SEM. After it to the State are through direct undertaking or by
brushed aside the issue of the validity of EP133 for entering into co- production, joint venture, or
being irrelevant, the MAB proceeded to treat SEMs production-sharing agreements, or by entering into
MPSA application over the disputed area asan entirely agreement with foreign-owned corporations for
new and distinct application. It approved the MPSA largescale exploration, development and utilization.
application, excluding the area segregated by DAO Recognizing the importance of the countrys natural
No. 66, which declared 729 hectares within the resources, not only for national economic
Diwalwal area as non-forest lands open for small-scale development, but also for its security and national
mining. defense, Section 5 of Republic Act No. 7942
empowers the President, when the national interest so
Dissatisfied, the Villaflor group and Balite appealed requires, to establish mineral reservations where
the decision to this Court. SEM, aggrieved by the mining operations shall be undertaken directly by the
exclusion of 729 hectares from its MPSA application, State or through a contractor
likewise appealed. Apex filed a Motion for Leave to
Admit Petition for Intervention predicated on its right
Loney vs. People of the Philippines offense only, the SC quote with approval RTCs
comparative analysis of PD 1067, PD 984, RA 7942,
Petitioners are officers of Marcopper Mining Corp., and Article 365 of the RPC showing that in each of
engaged in mining in the province of Marinduque. these laws on which petitioners were charged, there is
Marcopper had been storing tailings from its operation one essential element not required of the others, thus:
in a pit in Mt. Taipan, at the base of which ran a
drainage leading to Boac and Makalupnit rivers. In P.D. 1067 (Philippines Water Code), the additional
Consequently, Marcopper had discharged millions of element to be established is the dumping of mine
tons of tailings into the rivers. tailings into the Makulapnit River and the entire Boac
River System without prior permit from the authorities
In August 1996, the DOJ charged petitioners with concerned. The gravamen of the offense here is the
violation of the Water Code of the Philippines, the absence of the proper permit to dump said mine
National Pollution Control Decree, Philippine Mining tailings. This element is not indispensable in the
Act and RPC for Reckless Imprudence Resulting in prosecution for violation of PD 984 (AntiPollution
Damage to Property. Petitioners moved to quash the Law), [RA] 7942 (Philippine Mining Act) and Art. 365
information on grounds that these were duplicitous of the Revised Penal Code. One can be validly
as DOJ charged more than one offense for a single act prosecuted for violating the Water Code even in the
and that the Informations contain allegations which absence of actual pollution, or even if it has complied
constitute legal excuse or justification. with the terms of its Environmental
Compliance Certificate, or further, even if it did take
The MTC ruled that as far as the 3 laws are concerned, the necessary precautions to prevent damage to
only the Information for violation of Philippine Mining property.
Act should be maintained. Thus, the Informations for
In P.D. 984 (Anti-Pollution Law), the additional fact
violation of Anti-Pollution Law and the Water Code
that must be proved is the existence of actual pollution.
should be dismissed because the elements constituting
The gravamen is the pollution itself. In the absence of
the aforesaid violations are absorbed by the same
any pollution, the accused must be exonerated under
elements which constitute violation of the Philippine
this law although there was unauthorized dumping of
Mining Act. The RTC reversed the said decision and
mine tailings or lack of precaution on its part to prevent
ruled that there can be no absorption by one offense of damage to property.
the three other offenses, as the acts penalized by these
laws are separate and distinct from each other. This In R.A. 7942 (Philippine Mining Act), the additional
was affirmed by the CA. fact that must be established is the willful violation and
gross neglect on the part of the accused to abide by the
Petitioners contend that they should be charged with terms and conditions of the
only one offense Reckless Imprudence Resulting in Environmental Compliance Certificate, particularly
Damage to Property because all the charges filed that the Marcopper should ensure the containment of
against them are based on a single act or incident of run-off and silt materials from reaching the Mogpog
polluting the Boac and Makalupnit rivers thru dumping and Boac Rivers. If there was no violation or neglect,
of mine tailings" and that the charge for violation of and that the accused satisfactorily proved [sic] that
Article 365 of the RPC "absorbs" the other charges Marcopper had done everything to ensure containment
since the element of "lack of necessary or adequate of the run-off and silt materials, they will not be liable.
protection, negligence, recklessness and imprudence" It does not follow, however, that they cannot be
is common among them. prosecuted under the Water Code, Anti-Pollution Law
and the Revised Penal Code because violation of the
Ruling Environmental Compliance Certificate is not an
essential element of these laws.
Court had ruled that a single act or incident might On the other hand, the additional element that must be
offend against two or more entirely distinct and established in Art. 365 of the Revised Penal Code is the
unrelated provisions of law thus justifying the lack of necessary or adequate precaution, negligence,
prosecution of the accused for more than one offense. recklessness and imprudence on the part of the
The only limit to this rule is the Constitutional accused to prevent damage to property. This element
prohibition that no person shall be twice put in is not required under the previous laws.
jeopardy of punishment for the same offense. Unquestionably, it is different from dumping of mine
tailings without permit, or causing pollution to the
However, for the limited purpose of controverting
Boac river system, much more from violation or
petitioners claim that they should be charged with one
neglect to abide by the terms of the Environmental protection, rehabilitation and development of forest
Compliance Certificate. Moreover, the offenses lands, in order to ensure the continuity of their
punished by special law are mal[a] prohibita in contrast productive condition;
with those punished by the Revised Penal Code which
are mala in se.29 WHEREAS, the present laws and regulations
Consequently, the filing of the multiple charges against governing forest lands are not responsive enough to
petitioners, although based on the same incident, is support re-oriented government programs, projects
consistent with settled doctrine. and efforts on the proper classification and
delimitation of the lands of the public domain, and the
On petitioners claim that the charge for violation of management, utilization, protection,
Article 365 of the RPC absorbs the charges for rehabilitation, and development of forest lands;
violation of PD 1067, PD 984, and RA 7942, suffice it
to say that a mala in se felony (such as Reckless
Section 2. Policies. The State hereby adopts the
Imprudence Resulting in Damage to Property) cannot
following policies:
absorb mala prohibita crimes (such as those violating
PD 1067, PD 984, and RA 7942). What makes the
former a felony is criminal intent (dolo) or negligence (a) The multiple uses of forest lands shall be
(culpa); what makes the latter crimes are the special orientedto the development and progress requirements
laws enacting them. of

Petitioners reiterate their contention in the Court of


Appeals that their prosecution contravenes this Courts
ruling in People v. Relova. In particular, petitioners
cite the Courts statement in Relova that the law seeks
to prevent harassment of the accused by "multiple
prosecutions for offenses which though different from
one another are nonetheless each constituted by a
common set or overlapping sets of technical elements."

This contention is also without merit. Relova is no


authority for petitioners claim against multiple
prosecutions based on a single act not only because the
question of double jeopardy is not at issue here, but
also because, as the Court of Appeals held, petitioners
are being prosecuted for an act or incident punished by
four national statutes and not by an ordinance and a
national statute. In short, petitioners, if ever, fall under
the first sentence of Section 21, Article III which
prohibits multiple prosecution for the same offense,
and not, as in Relova, for offenses arising from the
same incident.
PD No. 705 : Revised Forestry Code of the
Philippines

WHEREAS, proper classification, management and


utilization of the lands of the public domain to
maximize their productivity to meet the demands of
our increasing population is urgently needed;

WHEREAS, to achieve the above purpose, it is


necessary to reassess the multiple uses of forest lands
and resources before allowing any utilization thereof
to optimize the benefits that can be derived therefrom;

WHEREAS, it is also imperative to place emphasis not


only on the utilization thereof but more so on the
the country, the advancement of science and and the wild animals or plants therein, and to provide
technology, and the public welfare; enjoyment of these features in such a manner as will
leave them unimpaired for future generations.
(b) Land classification and survey shall be
systematized and hastened; (i) Game refuge or bird sanctuary refers to a
forest land designated for the protection of game
(c) The establishment of wood-processing plants animals, birds and fish and closed to hunting and
shall be encouraged and rationalized; and fishing in order that the excess population may flow
and restock surrounding areas.
(d) The protection, development and
rehabilitation of forest lands shall be emphasized so as (j) Marine parks refers to any off-shore area
to ensure their continuity in productive condition. inhabited by rare and unique species of marine flora
and fauna.
Section 3. Definitions.
(k) Seashore park refers to any public shore area
(a) Public forest is the mass of lands of the public delimited for outdoor recreation, sports fishing, water
domain which has not been the subject of the present skiing and related healthful activities.
system of classification for the determination of which
lands are needed for forest purposes and which are not. (l) Watershed reservation is a forest land
reservation established to protect or improve the
(b) Permanent forest or forest reserves refer to conditions of the water yield thereof or reduce
those lands of the public domain which have been the sedimentation.
subject of the present system of classification and
determined to be needed for forest purposes. (m) Watershed is a land area drained by a stream
or fixed body of water and its tributaries having a
(c) Alienable and disposable lands refer to those common outlet for surface run-off.
lands of the public domain which have been the subject
of the present system of classification and declared as (n) Critical watershed is a drainage area of a river
not needed for forest purposes. system supporting existing and proposed hydroelectric
power and irrigation works needing immediate
(d) Forest lands include the public forest, the rehabilitation as it is being subjected to a fast
permanent forest or forest reserves, and forest denudation causing accelerated erosion and
reservations. destructive floods. It is closed from logging until it is
fully rehabilitated.
(e) Grazing land refers to that portion of the
public domain which has been set aside, in view of the (o) Mangrove is a term applied to the type of
suitability of its topography and vegetation, for the forest occurring on tidal flat along the sea coast,
raising of livestock. extending along streams where the water is brackish.

(f) Mineral lands refer to those lands of the (p) Kaingin is a portion of the forest land,
public domain which have been classified as such by whether occupied or not, which is subjected to shifting
the Secretary of Natural Resources in accordance with and/or permanent slash-and-burn cultivation having
prescribed and approved criteria, guidelines and little or no provision to prevent soil erosion.
procedure.
(q) Forest product means timber, pulpwood,
(g) Forest reservations refer to forest lands which firewood, bark, tree top, resin, gum, wood, oil, honey,
have been reserved by the President of the beeswax, nipa, rattan, or other forest growth such as
Philippines for any specific purpose or purposes. grass, shrub, and flowering plant, the associated water,
fish, game, scenic, historical, recreational and geologic
resources in forest lands.
(h) National park refers to a forest land
reservation essentially of primitive or wilderness
character which has been withdrawn from settlement (r) Dipterocarp forest is a forest dominated by
or occupancy and set aside as such exclusively to trees of the dipterocarp species, such as red lauan,
preserve the scenery, the natural and historic objects tengile, tiaong, white lauan, almon, bagtikan and
mayapis of the Philippine mahogany group, apitong specified rental, any forest land of the public domain
and the yakals. in order to undertake any authorized activity therein.

(s) Pine forest is a forest composed of the (cc) License is a privilege granted by the State to
Benguet Pine in the Mountain Provinces or the a person to utilize forest resources as in any forest land,
Mindoro pine in Mindoro and Zambales provinces. without any right of occupation and possession over
the same, to the exclusion of others, or establish and
(t) Industrial tree plantation is any tract of forest operate a wood-processing plant, or conduct any
land purposely and extensively planted to timber crops activity involving the utilization of any forest
primarily to supply the raw material requirements of resources.
existing or proposed processing plants and related
industries. (dd) License agreement is a privilege granted by
the State to a person to utilize forest resources within
(u) Tree farm refers to any tract of forest land any forest land with the right of possession and
purposely and extensively planted to trees of economic occupation thereof to the exclusion of others, except
value for their fruits, flowers, leaves, barks, or the government, but with the corresponding obligation
extractives, but not for the wood thereof. to develop, protect and rehabilitate the same in
(v) Multiple-use is the harmonized utilization of accordance with the terms and conditions set forth in
thenumerous beneficial uses of the land, soil, water, said agreement.
wildlife, recreation value, grass and timber of forest
lands. (ee) Permit is a short-term privilege or authority
granted by the State to a person to utilize any limited
(w) Selective logging means the systematic forest resources or undertake a limited activity with
removal of the mature, over-mature and defective trees any forest land without any right of occupation and
in such manner as to leave adequate number and possession therein.
volume of healthy residual trees of the desired species (ff) Annual allowable cut is the volume of
necessary to assure a future crop of timber, and forest materials,whether of wood or other forest products,
cover for the protection and conservation of soil and that is authorized to be cut regularly from the forest.
water.
(gg) Cutting cycle is the number of years between
(x) Seed tree system is partial clearcutting with major harvests in the same working unit and/or region,
seed trees left to regenerate the area. within a rotation.

(y) Healthy residual is a sound or slightly injured (hh) Ecosystem means the ecological community
tree of the commercial species left after logging. considered together with non-living factors and its
environment as a unit.
(z) Sustained-yield management implies
continuous or periodic production of forest products in (ii) Silviculture is the establishment,
a working unit with the aid of achieving at the earliest development reproduction and care of forest trees.
practicable time an approximate balance between
growth and harvest or use. This is generally applied to (jj) Rationalization is the organization of a
the commercial timber resources and is also applicable business or industry using scientific business
to the water, grass, wildlife, and other renewable management principles and simplified procedures to
resources of the forest. obtain greater efficiency of operation.

(aa) Processing plant is any mechanical set-up, (kk) Forest officer means any official or employee
machine or combination of machine used for the of the Bureau who, by the nature of his appointment or
processing of logs and other forest raw materials into the function of the position to which he is appointed, is
lumber, veneer, plywood, wallboard, block-board, delegated by law or by competent authority to execute,
paper board, pulp, paper or other finished wood implement or enforce the provisions of this Code, other
products. related laws, as well as their implementing regulations.

(bb) Lease is a privilege granted by the State to a


person to occupy and possess, in consideration of a
(ll) Primitive tribe is a group of endemic tribe The Bureau shall regulate the establishment and
living primitively as a distinct portion of a people from operation of sawmills, veneer and plywood mills and
a common ancestor. other wood processing plants and conduct studies of
domestic and world markets of forest products.
(mm) Private right means or refers to titled rights of
ownership under existing laws, and in the case of Section 6. Director and Assistant Director and their
primitive tribes, to rights of possession existing at the qualifications. The Bureau shall be headed by a
time a license is granted under this Code, which Director, who shall be assisted by one or more
possession may include places of abode and worship, Assistant Directors. The Director and Assistant
burial grounds, and old clearings, but excludes Directors shall be appointed by the President.
production forest inclusive of logged-over areas,
commercial forests and established plantations of No person shall be appointed Director or Assistant
forest trees and trees of economic value. Director of the Bureau unless he is a natural born
citizen of the Philippines, at least 30 years of age, a
(nn) Person includes natural as well as juridical holder of at least a Bachelor's Degree in Forestry or its
person. equivalent, and a registered forester.

CHAPTER I ORGANIZATION AND Section 7. Supervision and Control. The Bureau shall
JURISDICTION OF THE BUREAU be directly under the control and supervision of the
Secretary of the Department of Natural Resources,
Section 4. Creation of, and merger of all forestry hereinafter referred to as the Department Head.
agencies into, the Bureau of Forest Development. For
the purpose of implementing the provisions of this Section 8. Review. All actions and decisions of the
Code, the Bureau of Forestry, the Reforestation Director are subject to review, motu propio or upon
Administration, the Southern Cebu Reforestation appeal of any person aggrieved thereby, by the
Development Project, and the Parks and Wildlife Department Head whose decision shall be final and
Office, including applicable appropriations, records, executory after the lapse of thirty (30) days from
equipment, property and such personnel as may be receipt by the aggrieved party of said decision, unless
necessary, are hereby merged into a single agency to appealed to the President in accordance with the
be known as the Bureau of Forest Development, Executive Order No. 19, series of 1966. The Decision
hereinafter referred to as the Bureau. of the Department Head may not be reviewed by the
courts except through a special civil action for
Section 5. Jurisdiction of Bureau. The Bureau shall certiorari or prohibition.
have jurisdiction and authority over all forest land,
grazing lands, and all forest reservations including Section 9. Rules and Regulations. The Department
watershed reservations presently administered by other Head, upon the recommendation of the Director of
government agencies or instrumentalities. Forest Development, shall promulgate the rules and
regulations necessary to implement effectively the
It shall be responsible for the protection, development, provisions of this Code.
management, regeneration, and reforestation of forest
lands; the regulation and supervision of the operation Section 10. Creation of Functional Divisions, and
of licensees, lessees and permittees for the taking or Regional and District Offices. All positions in the
use of forest products therefrom or the occupancy or merged agencies are considered vacant. Present
use thereof; the implementation of multiple use and occupants may be appointed in accordance with a
sustained yield management in forest lands; the staffing pattern or plan of organization to be prepared
protection, development and preservation of national by the Director and approved by the Department Head.
parks, marine parks, game refuges and wildlife; the Any appointee who fails to report for duty in
implementation of measures and programs to prevent accordance with the approved plan within thirty (30)
kaingin and managed occupancy of forest and grazing days upon receipt of notification shall be deemed to
lands; in collaboration with other bureaus, the have declined the appointment, in which case the
effective, efficient and economic classification of position may be filed by any other qualified applicant.
lands of the public domain; and the enforcement of
forestry, reforestation, parks, game and wildlife laws,
rules, and regulations.
For the efficient and effective implementation of the Section 13. System of Land Classification. The
program of the Bureau, the following divisions and Department Head shall study, devise, determine and
sections are hereby created, to wit: prescribe the criteria, guidelines and methods for the
proper and accurate classification and survey of all
The Department Head may, upon recommendation of lands of the public domain into agricultural, industrial
the Director, reorganize or create such other divisions, or commercial, residential, resettlement, mineral,
sections of units as may be deemed necessary and to timber or forest, and grazing lands, and into such other
appoint the personnel there: Provided, That an classes as now or may hereafter be provided by law,
employee appointed or designated as officer-in-charge rules and regulations.
of a newly created division, section or unit, or to an
existing vacant position with a higher salary, shall In the meantime, the Department Head shall simplify
receive, from the date of such appointment or through inter-bureau action the present system of
designation until he is replaced or reverted to his determining which of the unclassified lands of the
original position, the salary corresponding to the public domain are needed for forest purposes and
position temporarily held by him. declare them as permanent forest to form part of the
forest reserves. He shall decree those classified and
There shall be created at least eleven regional offices. determined not to be needed for forest purposes as
In each region, there shall be as many forest districts alienable and disposable lands, the administrative
as may be necessary, in accordance with the extent of jurisdiction and management of which shall be
forest area, established work loads, need for forest transferred to the Bureau of Lands: Provided, That
protection, fire prevention and other factors, the mangrove and other swamps not needed for shore
provisions of any law to the contrary notwithstanding: protection and suitable for fishpond purposes shall be
Provided, That the boundaries of such districts shall released to, and be placed under the administrative
follow, whenever possible, natural boundaries of jurisdiction and management of, the Bureau of
watersheds under the river-basin concept of Fisheries and Aquatic Resources. Those still to be
management. classified under the Present system shall continue to
remain as part of the public forest.
Section 11. Manpower Development. The Bureau shall
establish and operate an in-service training center for Section 14. Existing Pasture Leases and Permits in
the purpose of upgrading and training its personnel and Forest Lands. Forest lands which have been the subject
new employees. of pasture leases and permits shall remain classified as
forest lands until classified as grazing lands under the
The Bureau shall also set aside adequate funds to criteria, guidelines and methods of classification to be
enable personnel to obtain special education and prescribed by the Department Head: Provided, That the
training in local or foreign colleges or institutions. administration, management and disposition of
grazing lands shall remain under the Bureau.
Section 12. Performance Evaluation. The Bureau shall
devise a system, to be approved by the Department Section 15. Topography. No land of the public domain
Head, to evaluate the performance of its employees. eighteen per cent (18%) in slope or over shall be
The system shall measure accomplishment in quantity classified as alienable and disposable, nor any forest
and quality of performance as related to the funded land fifty per cent (50%) in slope or over, as grazing
program of work assigned to each organizational unit. land.
There shall be included a system of periodic inspection
of district offices by the regional offices and the Lands eighteen per cent (18%) in slope or over which
regional and district offices by the Central Office in have already been declared as alienable and disposable
both functional fields and in the overall assessment of shall be reverted to the classification of forest lands by
how each administrative unit has implemented the the Department Head, to form part of the forest
laws, regulations, policies, programs, and practices reserves, unless they are already covered by existing
relevant to such unit. The evaluation system shall titles or approved public land application, or actually
provide the information necessary for annual progress occupied openly, continuously, adversely and publicly
reports and determination of employee training civil for a period of not less than thirty (30) years as of the
service awards and transfer or disciplinary action. effectivity of this Code, where the occupant is
CHAPTER II qualified for a free patent under the Public Land Act:
CLASSIFICATION AND SURVEY Provided, That said lands, which are not yet part of a
well-established communities, shall be kept in a
vegetative condition sufficient to prevent erosion and 10. Areas previously proclaimed by the
adverse effects on the lowlands and streams: Provided, President as forest reserves, national
further, That when public interest so requires, steps parks, game refuge, bird sanctuaries,
shall be taken to expropriate, cancel defective titles, national shrines, national historic sites:
reject public land application, or eject occupants
thereof. Provided, That in case an area falling under any of the
Section 16. Areas needed for forest purposes. The foregoing categories shall have been titled in favor of
following lands, even if they are below eighteen per any person, steps shall be taken, if public interest so
cent (18%) in slope, are needed for forest purposes, requires, to have said title cancelled or amended, or the
and may not, therefore, be classified as alienable and titled area expropriated.
disposable land, to wit:
Section 17. Establishment of boundaries of forest
1. Areas less than 250 hectares which are lands. All boundaries between permanent forests and
far from, or are not contiguous with, any alienable and disposable lands shall be clearly marked
certified alienable and disposable land; and maintained on the ground, with infrastructure or
roads, or concrete monuments at intervals of not more
2. Isolated patches of forest of at least five than five hundred (500) meters in accordance with
(5) hectares with rocky terrain, or which established procedures and standards, or any other
protect a spring for communal use; visible and practicable signs to insure protection of the
forest.
3. Areas which have already been
reforested; Section 18. Reservations in forest lands and offshore
areas. The President of the Philippines may establish
4. Areas within forest concessions which within any lands of the public domain, forest reserve
are timbered or have good residual and forest reservation for the national park system, for
stocking to support an existing, or preservation as critical watersheds, or for any other
approved to be established, wood purpose, and modify boundaries of existing ones. The
processing plant; Department Head may reserve and establish any
portion of the public forest or forest reserve as site or
5. Ridge tops and plateaus regardless of experimental forest for use of the Forest Research
size found within, or surrounded wholly Institute.
or partly by, forest lands where
headwaters emanate; When public interest so requires, any off-shore area
needed for the preservation and protection of its
6. Appropriately located road-rights-or- educational, scientific, historical, ecological and
way; recreational values including the marine life found
therein, shall be established as marine parks.
7. Twenty-meter strips of land along the
edge of the normal high waterline of CHAPTER III
rivers and streams with channels of at UTILIZATION AND MANAGEMENT
least five (5) meters wide;
Section 19. Multiple use. The numerous beneficial
8. Strips of mangrove or swamplands at uses of the timber, land, soil, water, wildlife, recreation
least twenty (20) meters wide, along value and grass of forest lands shall be evaluated and
shorelines facing oceans, lakes, and weighted before allowing the utilization, exploitation,
other bodies of water, and strips of land occupation or possession thereof, or the conduct of any
at least twenty (20) meters wide facing activity therein.
lakes;
Only the utilization, exploitation, occupation or
9. Areas needed for other purposes, such as possession of any forest land, or any activity therein,
national parks, national historical sites, involving one or more or its resources, which will
game refuges and wildlife sanctuaries, produce the optimum benefits to the development and
forest station sites, and others of public progress of the country and the public welfare, without
interest; and
impairment or with the least injury to its other subject of at least a five per cent (5%) timber
resources, shall be allowed. inventory, or any statistically sound timber estimate,
made not earlier than five (5) years prior to the
All forest reservations may be open to uses not issuance of a license agreement or license allowing
inconsistent with the principal objectives of the such utilization.
reservation: Provided, That critical watersheds and
national parks shall not be subject to logging Section 25. Cutting cycle. The Bureau shall apply
operations. scientific cutting cycle and rotation in all forest lands,
giving particular consideration to the age, volume and
Section 20. License agreement, license, lease or kind of healthy residual trees which may be left
permit. No person may utilize, exploit, occupy, possess undisturbed and undamaged for future harvest and
or conduct any activity within any forest land, or forest cover indipterocarp area, and seed trees and
establish and operate any wood-processing plant, reproduction in pine area.
unless he has been authorized to do so under a license
agreement, lease, license, or permit. Section 26. Annual allowable cut. The annual
allowable cut of any particular forest land shall be
Section 21. Sustained yield. All measures shall be determined on the basis of the established rotation and
taken to achieve an approximate balance between cutting cycle thereof, and the volume and kind of
growth and harvest or use of forest products in forest harvestable timber and healthy residuals, seed trees
lands. and reproduction found therein.

A. TIMBER Section 27. Duration of license agreement or license


to harvest timber in forest lands. The duration of the
Section 22. Silvicultural and harvesting systems. In privilege to harvest timber in any particular forest land
any logging operations in production forests within under a license agreement or license shall be fixed and
forest lands, the proper silvicultural and harvesting determined in accordance with the annual allowable
systems that will promote optimum sustained yield cut therein, the established cutting cycle thereof, the
shall be practised. yield capacity of harvestable timber, and the capacity
(a) For dipterocarp forest, selective of healthy residuals for a second growth.
loggingshall be practised.
The privilege shall automatically terminate, even
(b) For pine forest, the seed tree system before the expiration of the license agreement of
with planting when necessary shall be license, the moment the harvestable timber have been
practised. utilized without leaving any logged-over area capable
of commercial utilization.
The maximum period of any privilege to harvest timber
(c) For other types of forest, the
is twenty-five (25) years, renewable for a period, not
silvicultural and harvesting system that will
exceeding twenty-five (25) years, necessary to utilize
be found suitable by research shall be applied.
all the remaining commercial quantity or harvestable
Meanwhile, a system based on observation
timber either from the unlogged or logged-over area.
and practices abroad may be adopted initially.
It shall be a condition for the continued privilege to
Any practised system are subject to modification or
harvest timber under any license or license agreement
changes based on research findings.
that the licensee shall reforest all the areas which shall
be determined by the Bureau.
Section 23. Timber inventory. The Bureau shall
conduct a program of progressive inventories of the
Section 28. Size of forest concessions. Forest lands
harvestable timber and young trees in all forest lands,
shall not be held in perpetuity.
whether covered by any license agreement, license,
lease or permit, or not, until a one hundred per cent
(100%) timber inventory thereon has been achieved. The size of the forest lands which may be the subject
of timber utilization shall be limited to that which a
person may effectively utilize and develop for a period
Section 24. Required inventory prior to timber
of fifty (50) years, considering the cutting cycle, the
utilization in forest lands. No harvest of timber in any
past performance of the applicant and his capacity not
forest land shall be allowed unless it has been the
only to utilize but, more importantly, to protect and Section 32. Log production and processing. Unless
manage the whole area, and the requirements of otherwise decreed by the President, upon
processing plants existing or to be installed in the recommendation of the National Economic
region. Development Authority, the entire production of logs
by all licensees shall, beginning January 1, 1976, be
Forest concessions which had been the subject of processed locally.
consolidations shall be reviewed and re-evaluated for
the effective implementation of protection, A licensee who has no processing plant may, subject to
reforestation and management thereof under the the approval of the Director, enter into a contract with
multiple use and sustained yield concepts, and for the a wood processor for the processing of his logs. Wood
processing locally of the timber resources therefrom. processors shall accept for processing only logs cut by,
or purchased from, licensees of good standing at the
B. WOOD-PROCESSING time of the cutting of logs.

Section 29. Incentives to the wood industry. The C. REFORESTATION


Department Head, in collaboration with other
government agencies and the wood industry Section 33. Forest lands to be reforested. The
associations and other private entities in the country, following shall be reforested and covered with suitable
shall evolve incentives for the establishment of an and sufficient trees, to wit:
integrated wood industry in designated wood industry
centers and/or economic area. (a) Bare or grass-covered tracts of forest lands
with at least fifty per cent (50%) slope;
The President of the Philippines, upon the
recommendations of the National Economic (b) Bare or grass-covered tracts of forest lands
Development Authority and the Department Head, with less than fifty per cent (50%) slope, but with soil
may establish wood industry import-export centers in so highly erodible as to make grass cover inadequate
selected locations: Provided, That logs imported for for soil erosion control;
such centers shall be subject to such precaution as may
be imposed by the Bureau, in collaboration with proper (c) Brushlands or tracts of forest lands generally
government agencies, to prevent the introduction of covered with brush, which need to be developed to
pests, insects and/or diseases detrimental to the forests. increase their productivity;

Section 30. Rationalization of the wood industry. (d) Open tracts of forest lands with slopes or
While establishment of wood-processing plants shall gradients generally exceeding fifty per cent (50%),
be encouraged, their locations and operations shall be interspersed with patches of forest each of which is less
regulated in order to rationalize the industry. No new than two hundred fifty (250) hectares in area;
processing plant shall be established unless adequate
raw material is available on a sustained-yield basis in
(e) Denuded or inadequately-timbered areas
the area where the raw materials will come from.
proclaimed by the President as forest reserves and
reservations as critical watersheds, national parks,
The Department Head may cancel, suspend, or phase- game refuge, bird sanctuaries, national shrines,
out all uneconomical wood-processing plants which national historic sites;
are not responsive to the rationalization program of the
government.
(f) Inadequately-stocked forest lands within
forest concessions;
Section 31. Wood wastes, weed trees and residues.
Timber licensees shall be encouraged and assisted to
(g) Portions of areas covered by pasture leases or
gather and save the wood wastes and weed trees in
permits having a slope of at least fifty per cent (50%);
their concessions, and those with processing plants, the
and
wood residues thereof, for utilization and conversion
into wood by-products and derivatives.
(h) River banks, easements, road rights-of-ways,
deltas, swamps, former river beds, and beaches.
Section 34. Industrial Tree Plantations and Tree
Farms. A lease for a period of twenty-five (25) years,
renewable for another period not exceeding twentyfive (a) Payment of a nominal filing fee of fifty
(25) years, for the establishment of an industrial tree centavos (P0.50) per hectare;
plantation or a tree farm may be granted by the
Department Head upon recommendation of the (b) No rental shall be collected during the first
Director to any person qualified to develop and exploit five (5) years from the date of the lease; from the sixth
natural resources, over timber or forest lands of the year to the tenth year, the annual rental shall be fifty
public domain categorized in Section 33 hereof, with a centavos (P0.50) per hectare; and thereafter, the annual
minimum area of One Thousand (1,000) hectares for rental shall be one peso (P1.00) per hectare: Provided,
industrial tree plantation and One Hundred (100) That lessees of areas long denuded as certified by the
hectares for tree farm; Provided, That the size of the Director and approved by the Department Head, shall
area that may be granted under each category shall in be exempted from the payment of rental for the full
each case depend upon the capacity of the lessee to term of the lease which shall not exceed twenty-five
develop or convert the area into productive condition (25) years; for the first five (5) years following the
within the term of the lease; Provided, further, That no renewal of the lease, the annual rental shall be fifty
lease shall be granted within critical watersheds. centavos (P0.50) per hectare; and thereafter, the annual
rental shall be one peso (P1.00) per hectare.
Scattered areas of less than One Hundred (100)
hectares each may be leased for the establishment of (c) The lessee shall pay forest charges on the
tree farms to different qualified persons upon a timber and other forest products grown and cut or
showing that if developed as an integrated unit these gathered in an industrial tree plantation or tree farm
areas can be economically exploited: Provided, That it equivalent to six percent (6%) current market value
shall be a condition of the lease that such persons thereof;
organize themselves into a cooperative to ensure the
orderly management thereof. (d) Sale at cost of seedlings and free technical
advice and assistance to persons who will develop their
The lease may be granted under such terms and privately-owned lands into industrial tree plantation or
conditions as the Department Head may prescribe, tree farm;
taking into account, among others, the raw material
needs of forest-based industries and the maintenance (e) Exemption from the payment of the
of a wholesome ecological balance. percentage tax levied in Title V of the National Internal
Revenue Code when the timber and forest products are
Reforestation projects of the Government, or portions sold, bartered or exchanged by the lessee whether in
thereof which, upon field evaluation, are found to be their original state or not;
more suitable for, or can be better developed as,
industrial tree plantations or tree farms in terms of (f) The Board of Investments shall,
benefits to the Government and the general notwithstanding its nationality requirement on projects
surrounding area, may be the subject of the lease under involving natural resources, classify industrial tree
this section. plantations and tree farms as pioneer areas of
investment under its annual priority plan, to be
Section 35. Priority. Over any suitable area covered by governed by the rules and regulations of said Board. A
a timber license agreement, or a pasture lease lessee of an industrial tree plantation or tree farm may
agreement or permit, the priority to establish industrial either apply to the Board of Investments for the tax and
forest plantation or tree farm shall be given to the other benefits thereunder, or avail of the following
holder thereof. benefits:

The priority herein granted must, however, be availed 1. Amounts expended by a lessee in the
of within a reasonable period to be determined by the development and operation of an industrial tree
Department Head, otherwise, the area shall be declared plantation or tree farm prior to the time when the
open to any qualified person and consequently production state is reached, may, at the option of said
segregated from the holder's area. lessee, be regarded as ordinary and necessary business
expenses or as capital expenditures; and
Section 36. Incentives. To encourage qualified persons
to engage in industrial tree plantation and/or tree 2. Deduction from an investor's taxable income
farming, the following incentives are granted: for the year, of an annual investment allowance
equivalent to thirty-three and one-third per cent possession, and control over the same, to the exclusive
(331/3%) of his actual investment during the year in an of all others, except the government, but with the
enterprise engaged in industrial tree plantation or tree corresponding obligation to adopt all the protection
farm: Provided, That such investment shall not be and conservation measures to ensure the continuity of
withdrawn for a period of at least ten (10) years from the productive condition of said areas, conformably
the date of investment: Provided, further, That should with multiple use and sustained yield management.
the investment be withdrawn within such period, a tax
equivalent to double the amount of the total income tax If the holder of a license agreement over a forest area
rebate resulting from the investment allowance shall be expressly or impliedly waives the privilege to utilize
payable as a lump sum in addition to the income tax any softwood, hardwood or mangrove species therein,
due from the taxpayer for the year the investment was a license may be issued to another person for the
withdrawn. harvest thereof without any right of possession or
occupation over the areas where they are found, but he
(g) Except when public interest demands the shall, likewise, adopt protection and conservation
alteration or modification, the boundaries of an area measures consistent with those adopted by the license
covered by an industrial tree plantation or tree farm agreement holder in the said areas.
lease, once established on the ground, shall not be
altered or modified; and Section 39. Regulation of timber utilization in all other
(h) A lessee shall not be subject to any classes of lands and of wood-processing plants. The
obligationprescribed in, or arising out of, the utilization of timber in alienable and disposable lands,
provisions of the National Internal Revenue Code on private lands, civil reservations, and all lands
withholding of tax at source upon interests paid on containing standing or felled timber, including those
borrowings incurred for development and operation of under the jurisdiction of other government agencies,
the industrial tree plantation or tree farm. and the establishment and operation of saw-mills and
other wood-processing plants, shall be regulated in
The Department Head may provide other incentives in order to prevent them from being used as shelters for
addition to those hereinabove granted to promote excessive and unauthorized harvests in forest lands,
industrial tree plantation and tree farms in special areas and shall not therefore be allowed except through a
such as, but not limited to, those where there are no license agreement, license, lease or permit.
roads or where roads are inadequate, or areas with
rough topography and remote areas far from Section 40. Timber inventory in other lands containing
processing plants. standing or felled timber. The Bureau shall conduct a
one hundred per cent (100%) timber inventory in
All amounts collected under this section shall accrue to alienable and disposable lands and civil reservations
a special deposit of the Bureau to be used for immediately upon classification or reservation thereof.
reforestation of critical watersheds or degraded areas
and other development activities, over and above the No harvest of standing or felled timber in alienable and
general appropriation of the said Bureau. disposable lands, private lands, civil reservation, and
all other lands, including those under the jurisdiction
D. FOREST PROTECTION of other government agencies, shall be allowed unless
a one hundred per cent (100%) timber inventory has
Section 37. Protection of all resources. All measures been conducted thereon.
shall be taken to protect the forest resources from
destruction, impairment and depletion. Section 41. Sworn timber inventory reports. All
reports on timber inventories of forest lands, alienable
Section 38. Control of concession area. In order to and disposable lands, private lands, civil reservations,
achieve the effective protection of the forest lands and and all lands containing standing or felled timber must
the resources thereof from illegal entry, unlawful be subscribed and sworn to by all the forest officers
occupation, kaingin, fire, insect infestation, theft, and who conducted the same.
other forms of forest destruction, the utilization of
timber therein shall not be allowed except through Section 42. Participation in the development of
license agreements under which the holders thereof alienable and disposable lands and civil reservations.
shall have the exclusive privilege to cut all the The privilege to harvest timber in alienable and
allowable harvestable timber in their respective disposable lands and civil reservations shall be given
concessions, and the additional right of occupation, to those who can best help in the delineation and
development of such areas in accordance with the outlets of timber and other forest products to insure
management plan of the appropriate government that they were legally cut or harvested.
exercising jurisdiction over the same.
Section 47. Mining operations. Mining operations in
The extent of participation shall be based on the forest lands shall be regulated and conducted with due
amount of timber which may be harvested therefrom. regard to protection, development and utilization of
other surface resources.
Section 43. Swamplands and mangrove forests. Strips
of mangrove forest bordering numerous islands which Location, prospecting, exploration, utilization or
protect the shoreline, the shoreline roads, and even exploitation of mineral resources in forest reservations
coastal communities from the destructive force of the shall be governed by Mining laws, rules and
sea during high winds and typhoons, shall be regulations. No location, prospecting, exploration,
maintained and shall not be alienated. Such strips must utilization, or exploitation of mineral resources inside
be kept from artificial obstruction so that flood water forest concessions shall be allowed unless proper
will flow unimpeded to the sea to avoid flooding or notice has been served upon the licensees thereof and
inundation of cultivated areas in the upstream. the prior approval of the Director, secured.

All mangrove swamps set aside for coast-protection Mine tailings and other pollutants affecting the health
purposes shall not be subject to clear-cutting operation. and safety of the people, water, fish, vegetation, animal
life and other surface resources, shall be filtered in silt
Mangrove and other swamps released to the Bureau of traps or other filtration devices and only clean exhausts
Fisheries and Aquatic Resources for fishpond purposes and liquids shall be released therefrom.
which are not utilized, or which have been abandoned
for five (5) years from the date of such release shall Surface-mined areas shall be restored to as near its
revert to the category of forest land. former natural configuration or as approved by the
Director prior to its abandonment by the mining
Section 44. Visitorial power. The Department Head concern.
may, by himself or thru the Director or any qualified
person duly designated by the Department Head, Section 48. Mineral Reservations. Mineral
investigate, inspect and examine records, books and reservations which are not the subject of mining
other documents relating to the operation of any holder operations or where operations have been suspended
of a license agreement, license, lease, or permit, and its for more than five (5) years shall be placed under forest
subsidiary or affiliated companies, to determine management by the Bureau.
compliance with the terms and conditions thereof, this
Code and pertinent laws, policies, rules and Mineral reservations where mining operations have
regulations. been terminated due to the exhaustion of its minerals
shall revert to the category of forest land, unless
Section 45. Authority of forest officers. When in the otherwise reserved for other purposes.
performance of their official duties, forest officers, or Section 49. Roads and other infrastructure. Roads and
other government officials or employees duly other infrastructure in forest lands shall be constructed
authorized by the Department Head or Director, shall with the least impairment to the resource values
have free entry into areas covered by a license thereof.
agreement, license, lease or permit.
Government agencies undertaking the construction of
Forest officers are authorized to administer oath and roads, bridges, communications, and other
take acknowledgment in official matters connected infrastructure and installations inside forest lands, shall
with the functions of their office, and to take testimony coordinate with the Bureau, especially if it will involve
in official investigations conducted under the authority the utilization or destruction of timber and/or other
of this Code and the implementing rules and forest resources, or watershed disturbance therein, in
regulations. order to adopt measures to avoid or reduce damage or
injury to the forest resource values.
Section 46. Scaling stations. In collaboration with
appropriate government agencies, the Bureau shall They shall likewise extend assistance in the planning
establish control or scaling stations at suitably located and establishment of roads, wharves, piers, port
facilities, and other infrastructure in locations In areas above 50% in slope, occupation shall be
designated as wood-processing centers or for the conditioned upon the planting of desirable trees
convenience of wood-based industries. thereon and/or adoption of other conservation
measures.
In order to coincide and conform to government plans,
programs, standards, and specifications, holders of Section 52. Census of kaingineros, squatters, cultural
license agreements, licenses, leases and permits shall minorities and other occupants and residents in forest
not undertake road or infrastructure construction or lands. Henceforth, no person shall enter into forest
installation in forest lands without the prior approval lands and cultivate the same without lease or permit.
of the Director, or in alienable and disposable lands,
civil reservations and other government lands, without A complete census of kaingineros, squatters, cultural
the approval of the government agencies having minorities and other occupants and residents in forest
administrative jurisdiction over the same. lands with or without authority or permits from the
government, showing the extent of their respective
All roads and infrastructure constructed by holders of occupation and resulting damage, or impairment of
license agreements, licenses, leases and permits belong forest resources, shall be conducted.
to the State and the use and administration thereof shall
be transferred to the government immediately upon the The Bureau may call upon other agencies of the
expiration or termination thereof. Prior thereto the government and holders of license agreement, license,
Bureau may authorize the public use thereof, if it will lease and permits over forest lands to participate in the
not be detrimental to forest conservation measures. census.

Where roads are utilized by more than one commercial Section 53. Criminal Prosecution. Kaingineros,
forest user, the Bureau shall prescribe the terms and squatters, cultural minorities and other occupants who
conditions of joint use including the equitable sharing entered into forest lands before the effectivity of this
of construction and/or maintenance costs, and of the Code, without permits or authority, shall not be
use of these roads by other parties and the collection of prosecuted: Provided, That they do not increase their
such fees as may be deemed necessary. clearings: Provided, further, That they undertake,
within two (2) months from the notice thereof, the
Section 50. Logging roads. There shall be activities which will be imposed upon them by the
indiscriminate construction of logging roads. Bureau in accordance with a management plan
calculated to conserve and protect forest resources.
Such roads shall be strategically located and their
widths regulated so as to minimize clear-cutting, E. SPECIAL USES
unnecessary damage or injury to healthy residuals, and
erosion. Their construction must not only serve the Section 54. Pasture in forest lands. No forest land 50%
transportation need of the logger but, most in slope or over may be utilized for pasture purposes.
importantly, the requirement to save as many healthy
residuals as possible during cutting and hauling Forest lands which are being utilized for pasture shall
operations. be maintained with sufficient grass cover to protect
soil, water and other forest resources.
Section 51. Management of occupancy in forest lands.
Forest occupancy shall henceforth be managed. The If grass cover is insufficient, the same shall be
Bureau shall study, determine and define which lands supplemented with trees or such vegetative cover as
may be the subject of occupancy and prescribed may be deemed necessary.
therein, an agro-forestry development program.
The size of forest lands that may be allowed for pasture
Occupants shall undertake measures to prevent and and other special uses shall be determined by rules and
protect forest resources. regulations, any provision of law to the contrary
notwithstanding.
Any occupancy in forest land which will result in Section 55. Wildlife. Wildlife may be destroyed, killed,
sedimentation, erosion, reduction in water yield and consumed, eaten or otherwise disposed of, without the
impairment of other resources to the detriment of necessity of permit, for the protection of life, health,
community and public interest shall not be allowed. safety and property, and the convenience of the people.
However, the Director may regulate the killing and may transfer, exchange, sell or convey his license
destruction of wildlife in forest lands in order to agreement, license, lease or permit, or any of his rights
maintain an ecological balance of flora and fauna. or interests therein, or any of his assets used in
connection therewith.
Section 56. Recreation. The Bureau shall, in the
preparation of multiple-use management plans, The licensee, lessee, or permittee shall be allowed to
identify and provide for the protection of scenic areas transfer or convey his license agreement, license, lease
in all forest lands which are potentially valuable for or permit only if he has not violated any forestry law,
recreation and tourism, and plan for the development rule or regulation; has been faithfully complying with
and protection of such areas to attract visitors thereto the terms and conditions of the license agreement,
and meet increasing demands therefor. license, lease or permit; the transferee has all the
qualifications and none of the disqualifications to hold
The construction and operation of necessary facilities a license agreement, license, lease or permit; there is
to accommodate outdoor recreation shall be done by no evidence that such transfer or conveyance is being
the Bureau with the use of funds derived from rentals made for purposes of speculation; and the transferee
and fees for the operation and use of recreational shall assume all the obligations of the transferor.
facilities by private persons or operators, in addition to
whatever funds may be appropriated for such purposes. The transferor shall forever be barred from acquiring
another license agreement, license, lease or permit.
Section 57. Other special uses of forest lands. Forest
lands may be leased for a period not exceeding twenty- Section 62. Service contracts. The Department Head,
five (25) years, renewable upon the expiration thereof may in the national interest, allow forest products
for a similar period, or held under permit, for the licensees, lessees, or permittees to enter into service
establishment of sawmills, lumber yards, timber contracts for financial, technical, management, or
depots, logging camps, rightsof-way, or for the other forms of assistance, in consideration of a fee,
construction of sanatoria, bathing establishments, with any foreign person or entity for the exploration,
camps, salt works, or other beneficial purposes which development, exploitation or utilization of the forest
do not in any way impair the forest resources therein. resources, covered by their license agreements,
licenses, leases or permits. Existing valid and binding
F. QUALIFICATIONS service contracts for financial, technical, management
or other forms of assistance are hereby recognized as
Section 58. Diffusion of benefits. The privilege to such.
utilize, exploit, occupy, or possess forest lands, or to
conduct any activity therein, or to establish and operate Section 63. Equity sharing. Every corporation holding
wood-processing plants, shall be diffused to as many a license agreement, license, lease or permit to utilize,
qualified and deserving applicants as possible. exploit, occupy or possess any forest land, or conduct
any activity therein, or establish and operate a wood-
Section 59. Citizenship. In the evaluation of processing plant, shall within one (1) year after the
applications of corporations, increased Filipino equity effectivity of this Code, formulate and submit to the
and participation beyond the 60% constitutional Department Head for approval a plan for the sale of at
limitation shall be encouraged. All other factors being least twenty percent (20%) of its subscribed capital
equal, the applicant with more Filipino equity and stock in favor of its employees and laborers.
participation shall be preferred.
The plan shall be so implemented that the sale of the
Section 60. Financial and technical capability. No shares of stock shall be effected by the corporation not
license agreement, license, lease or permit over forest later than the sixth year of its operation, or the first year
lands shall be issued to an applicant unless he proves of the effectivity of this Code, if the corporation has
satisfactorily that he has the financial resources and been in operation for more than 5 years prior to such
technical capability not only to minimize utilization, effectivity.
but also to practice forest protection, conservation and
development measures to insure the perpetuation of No corporation shall be issued any license agreement,
said forest in productive condition. license, lease or permit after the effectivity of this
Section 61. Transfers. Unless authorized by the Code, unless it submits such a plan and the same is
Department Head, no licensee, lessee, or permittee approved for implementation within the sixth year of
its operation.
The Department Head shall promulgate the necessary fund upon request of the Director on the basis of a
rules and regulations to carry out the provisions of this consolidated annual budget of a work program
section, particularly on the determination of the approved by the Department Head and the President.
manner of payment, factors affecting the selling price,
establishment of priorities in the purchase of the shares In the case of the special deposit revolving fund,
of stock, and the capability of the deserving employees withdrawals therefrom shall be effected by the
and laborers. The industries concerned shall extend all Department Head on the basis of a consolidated annual
assistance in the promulgation of policies on the budget prepared by the Director of a work program for
matter, such as the submission of all data and the specific purposes mentioned in Section 65.
information relative to their operation, personnel
management, and asset evaluation. Section 67. Basis of Assessment. Tree measurement
shall be the basis for assessing government charges and
G. REGULATORY FEES other fees on timber cut and removed from forest lands,
alienable or disposable lands, and the civil
Section 64. Charges, fees and bonds. The Department reservations; Provided, That until such time as the
Head, upon recommendation of the Director, shall fix mechanics of tree measurement shall have been
the amount of charges, rental, bonds and fees for the developed and promulgated in rules and regulations,
different kinds of utilization, exploitation, occupation, the present scaling method provided for in the National
possession, or activity inside forest lands, the filing and Internal Revenue Code shall be used.
processing of applications therefor, the issuance and
renewal of license agreements, licenses, leases and The Director may, with the approval of the Department
permits, and for other services; Provided, That all fees Head, prescribe a new method of assessment of forest
and charges presently being collected under existing products and collection of charges thereon based upon
laws and regulations shall continue to be imposed and the result of production cost and market studies
collected until otherwise provided; Provided, further, undertaken by the Bureau; Provided, That such charges
That timber taken and removed from private lands for shall not be lower than those now imposed.
commercial purposes shall be exempt from the
payment of forest charges. CHAPTER IV
CRIMINAL OFFENSES AND PENALTIES
Section 65. Authority of Department Head to impose
other fees. In addition to the fees and charges imposed Section 68. Cutting, gathering and/or collecting
under existing laws, rules and regulations, the timber or other products without license. Any person
Department Head is hereby authorized, upon who shall cut, gather, collect, or remove timber or
recommendation of the Director and in consultation other forest products from any forest land, or timber
with representatives of the industries affected, to from alienable and disposable public lands, or from
impose other fees for forest protection, management, private lands, without any authority under a license
reforestation, and development, the proceeds of which agreement, lease, license or permit, shall be guilty of
shall accrue into a special deposit of the Bureau as its qualified theft as defined and punished under Articles
revolving fund for the aforementioned purposes. 309 and 310 of the Revised Penal Code; Provided, That
in the case of partnership, association or corporation,
Section 66. Collection and Disbursement. The the officers who ordered the cutting, gathering or
collection of the charges and fees above-mentioned collecting shall be liable, and if such officers are aliens,
shall be the responsibility of the Director or his they shall, in addition to the penalty, be deported
authorized representative. The Director shall remit his without further proceedings on the part of the
monthly collection of fees and charges mentioned in Commission on Immigration and Deportation.
Section 64 to the Treasurer of the Philippines within
the first ten (10) days of the succeeding month; The Court shall further order the confiscation in favor
Provided, That the proceeds of the collection of the of the government of the timber or forest products to
fees imposed under Section 65 and the special deposit cut, gathered, collected or removed, and the
heretofore required of licensees shall be constituted machinery, equipment, implements and tools used
into a revolving fund for such purposes and be therein, and the forfeiture of his improvements in the
deposited in the Philippine National Bank, as a special area.
deposit of the Bureau. The Budget Commissioner and
the National Treasurer shall effect the quarterly
releases out of the collection accruing to the general
The same penalty plus cancellation of his license the government, shall be imposed upon any person,
agreement, lease, license or permit and perpetual who shall, without authority under a lease or permit,
disqualification from acquiring any such privilege graze or cause to graze livestock in forest lands,
shall be imposed upon any licensee, lessee, or grazing lands and alienable and disposable lands which
permittee who cuts timber from the licensed or leased have not as yet been disposed of in accordance with the
area of another, without prejudice to whatever civil Public Land Act; Provided, That in case the offender is
action the latter may bring against the offender. a corporation, partnership or association, the officers
and directors thereof shall be liable.
Section 69. Unlawful occupation or destruction of
forest lands. Any person who enters and occupies or Section 71. Illegal occupation of national parks system
possesses, or makes kaingin for his own private use or and recreation areas and vandalism therein. Any
for others any forest land without authority under a person who shall, without permit, occupy for any
license agreement, lease, license or permit, or in any length of time any portion of the national parks system
manner destroys such forest land or part thereof, or or shall, in any manner, cut, destroy, damage or
causes any damage to the timber stand and other remove timber or any species of vegetation or forest
products and forest growths found therein, or who cover and other natural resources found therein, or
assists, aids or abets any other person to do so, or sets shall mutilate, deface or destroy objects of natural
a fire, or negligently permits a fire to be set in any beauty or of scenic value within areas in the national
forest land shall, upon conviction, be fined in an parks system, shall be fined not less than two hundred
amount of not less than five hundred pesos (P500.00) (P200.00) pesos or more than five hundred (P500.00)
nor more than twenty thousand pesos (P20,000.00) and pesos exclusive of the value of the thing damaged;
imprisoned for not less than six (6) months nor more Provided, That if the area requires rehabilitation or
than two (2) years for each such offense, and be liable restoration as determined by the Director, the offender
to the payment of ten (10) times the rental fees and shall also be required to restore or compensate for the
other charges which would have been accrued had the restoration of the damage; Provided, Further, That any
occupation and use of the land been authorized under person who, without proper permit shall hunt, capture
a license agreement, lease, license or permit: Provided, or kill any kind of bird, fish or wild animal life within
That in the case of an offender found guilty of making any area in the national parks system shall be subject
kaingin, the penalty shall be imprisoned for not less to the same penalty; Provided, Finally, That the Court
than two (2) nor more than (4) years and a fine equal shall order eviction of the offender from the land and
to eight (8) times the regular forest charges due on the the forfeiture in favor of the Government of all timber
forest products destroyed, without prejudice to the or any species of vegetation and other natural resources
payment of the full cost of restoration of the occupied collected or removed, and any construction or
area as determined by the Bureau. improvement made thereon by the offender. If the
offender is an association or corporation, the president
The Court shall further order the eviction of the or manager shall be directly responsible and liable for
offender from the land and the forfeiture to the the act of his employees or laborers.
Government of all improvements made and all
vehicles, domestic animals and equipment of any kind In the event that an official of a city or municipal
used in the commission of the offense. If not suitable government is primarily responsible for detecting and
for use by the Bureau, said vehicles shall be sold at convicting the violator of the provisions of this
public auction, the proceeds of which shall accrue to Section, fifty per centum (50%) of the fine collected
the Development Fund of the Bureau. shall accrue to such municipality or city for the
development of local parks.
In case the offender is a government official or
employee, he shall, in addition to the above penalties, Section 72. Destruction of wildlife resources. Any
be deemed automatically dismissed from office and person violating the provisions of Section 55 of this
permanently disqualified from holding any elective or Code, or the regulations promulgated thereunder, shall
appointive position. be fined not less than one hundred (P100.00) pesos for
each such violation and in addition shall be denied a
Section 70. Pasturing Livestock. Imprisonment for not permit for a period of three (3) years from the date of
less than six (6) months nor more than two (2) years the violation.
and a fine equal to ten (10) times the regular rentals
due, in addition to the confiscation of such livestock Section 73. Survey by unauthorized person.
and all improvement introduced in the area in favor of Imprisonment for not less than two (2) nor more than
four (4) years, in addition to the confiscation of the from the Director or his authorized representative,
implements used in the violation of this section make, manufacture, or has in his possession any
including the cancellation of the license, if any, shall government marking, hatchet or other marking
be imposed upon any person who shall, without permit implement, or any marker, poster, or other devices
to survey from the Director, enter any forest lands, officially used by officers of the Bureau for the
whether covered by a license agreement, lease, license, marking or identification of timber or other products,
or permit, or not, and conduct or undertake a survey for or any duplicate, counterfeit, or imitation thereof, or
whatever purpose. make or apply a government mark on timber or any
other forest products by means of any authentic or
Section 74. Misclassification and survey by counterfeit device, or alter, deface, or remove
government official or employee. Any public officer or government marks or signs, from trees, logs, stumps,
employee who knowingly surveys, classifies, or firewoods or other forest products, or destroy, deface,
recommends the release of forest lands as alienable and remove or disfigure any such mark, sign, poster or
disposable lands contrary to the criteria and standards warning notices set by the Bureau to designate the
established in this Code, or the rules and regulations boundaries of cutting areas, municipal or city forest or
promulgated hereunder, shall, after an appropriate pasture, classified timber land, forest reserve, and areas
administrative proceeding, be dismissed from the under the national park system or to make any false
service with prejudice to re-employment, and upon mark or imitation of any mark or sign herein indicated;
conviction by a court of competent jurisdiction, suffer Provided, That if the offender is a corporation,
an imprisonment of not less than one (1) year and a fine partnership or association, the officers and directors
of not less than one thousand, (P1,000.00) pesos. The thereof shall be liable.
survey, classification or release of forest lands shall be
null and void. Section 78. Payment, collection and remittance of
forest charges. Any person who fails to pay the amount
Section 75. Tax declaration on real property. due and payable under the provisions of this Code, the
Imprisonment for a period of not less than two (2) nor National Internal Revenue Code, or the rules and
more than four (4) years and perpetual disqualification regulations promulgated thereunder, shall be liable to
from holding an elective or appointive office, shall be the payment of a surcharge of twentyfive per centum
imposed upon any public officer or employee who (25%) of the amount due and payable.
shall issue a tax declaration on real property without a
certification from the Director of Forest Development Any person who fails or refuses to remit to the proper
and the Director of Lands or their duly designated authorities said forest charges collectible pursuant to
representatives that the area declared for taxation is the provisions of this Code or the National Internal
alienable and disposable lands, unless the property is Revenue Code, or who delays, obstructs or prevents
titled or has been occupied and possessed by members the same, or who orders, causes or effects the transfer
of the national cultural minorities prior to July 4, 1955. or diversion of the funds for purposes other than those
Section 76. Coercion and influence. Any person who specified in this Code, for each such offense shall,
coerces, influences, abets or persuades the public upon conviction, be punished by a fine of not
officer or employee referred to in the two preceding exceeding one hundred thousand pesos (P100,000.00)
sections to commit any of the acts mentioned therein and/or imprisonment for a period of not exceeding six
shall suffer imprisonment of not less than one (1) year (6) years in the discretion of the Court. If the offender
and pay a fine of five hundred (P500.00) pesos for is a government official or employee, he shall, in
every hectare or a fraction thereof so improperly addition, be dismissed from the service with prejudice
surveyed, classified or released. to reinstatement and with disqualification from
holding any elective or appointive office.
Section 77. Unlawful possession of implements and If the offender is a corporation, partnership or
devices used by forest officers. Imprisonment for a association, the officers and directors thereof shall be
period of not less than (2) nor more than four (4) years liable.
and a fine of not less than one thousand pesos
(P1,000.00), nor more than ten thousand Section 79. Sale of wood products. No person shall sell
(P10,000.00) pesos in addition to the confiscation of or offer for sale any log, lumber, plywood or other
such implements and devices, and the automatic manufactured wood products in the international or
cancellation of the license agreement, lease, license or domestic market unless he complies with grading rules
permit, if the offender is a holder thereof, shall be and established or to be established by the
imposed upon any person who shall, without authority Government.
Failure to adhere to the established grading rules and barangay or barrio official, or any qualified person to
standards, or any act of falsification of the volume of protect the forest and exercise the power or authority
logs, lumber, or other forest products shall be a provided for in the preceding paragraph.
sufficient cause for the suspension of the export,
sawmill, or other license or permit authorizing the Reports and complaints regarding the commission of
manufacture or sale of such products for a period of not any of the offenses defined in this Chapter, not
less than two (2) years. committed in the presence of any forest officer or
employee, or any of the deputized officers or officials,
A duly accredited representative of the Bureau shall shall immediately be investigated by the forest officer
certify to the compliance by the licensees with grading assigned in the area where the offense was allegedly
rules. committed, who shall thereupon receive the evidence
supporting the report or complaint.
Every dealer in lumber and other building material
covered by this Code shall issue an invoice for each If there is prima facie evidence to support the
sale of such material and such invoice shall state that complaint or report, the investigating forest officer
the kind, standard and size of material sold to each shall file the necessary complaint with the appropriate
purchaser in exactly the same as described in the official authorized by law to conduct a preliminary
invoice. Any violation of this Section shall be investigation of criminal cases and file an information
sufficient ground for the suspension of the dealer's in Court.
license for a period of not less than two (2) years and,
in addition thereto, the dealer shall be punished for PD No. 1775: AMENDING SECTION EIGHTY
each such offense by a fine of not less than two OF PRESIDENTIAL DECREE NUMBERED
hundred pesos (P200.00) or the total value of the SEVEN
invoice, whichever is greater. HUNDRED FIVE, AS AMENDED, OTHERWISE
KNOWN AS THE "REVISED FORESTRY
Section 80. Arrest; Institution of criminal actions. A CODE
forest officer or employee of the Bureau shall arrest OF THE PHILIPPINES."
even without warrant any person who has committed
or is committing in his presence any of the offenses
defined in this Chapter. He shall also seize and WHEREAS, it is of common knowledge that only few
confiscate, in favor of the Government, the tools and criminal cases are being filed against violators of the
equipment used in committing the offense, and the forestry laws, rules and regulations because of the
forest products cut, gathered or taken by the offender apparent lack of manpower in the prosecuting arm of
in the process of committing the offense. The arresting the Bureau of Forestry Development which
forest officer or employee shall thereafter deliver predicament could not be feasibly augmented due to
within six (6) hours from the time of arrest and seizure, the present economic situation of the country;
the offender and the confiscated forest products, tools
and equipment to, and file the proper complaint with, WHEREAS, it is of common knowledge that only few
the appropriate official designated by law to conduct criminal cases are being filed against violators of the
preliminary investigations and file informations in forestry laws, rules and regulations because of the
court. apparent lack of manpower in the prosecuting arm of
the Bureau of Forestry Development which
If the arrest and seizure are made in the forests, far predicament could not be feasibly augmented due to
from the authorities designated by law to conduct the present economic situation of the country;
preliminary investigations, the delivery to, and filing
of the complaint with, the latter shall be done within a WHEREAS, Section 80 of the "Revised Forestry Code
reasonable time sufficient for ordinary travel from the of the Philippines", or any other law, rule and
place of arrest to the place of delivery. The seized regulation does not authorize members of the
products, materials and equipment shall be Philippine Constabulary/Integrated National Police to
immediately disposed of in accordance with forestry file complaints against forest law violators except
administrative orders promulgated by the Department when they are lawfully deputized by the Minister of
Head. Agriculture and Natural Resources pursuant to the said
Code;
The Department Head may deputize any member or
unit of the Philippine Constabulary, police agency, NOW, THEREFORE, I, FERDINAND E. MARCOS,
President of the Philippines, by virtue of the powers necessary complaint with the appropriate official
vested in me by the Constitution, do hereby degree authorized by law to conduct a preliminary
that: investigation of criminal case and file an information
in Court."
SECTION 1. Section 80 of Presidential Decree No.
705 is amended to read as follows: Executive Order No. 318: PROMOTING
SUSTAINABLE FOREST MANAGEMENT IN
"Sec. 80. Arrest: institution of criminal actions. - THE
A forest officers or employee of the Bureau or any PHILIPPINES
personnel of the Philippines Constabulary/ Integrated WHEREAS, the Constitution provides for the
National Police shall arrest even without warrant any protection and advancement of the right of the people
person who has committed or committing in his to a balanced and healthy environment in accord with
presence any of the offenses defined in this Chapter. the rhythm and harmony of nature, to protect the
He shall also seize and confiscate, in favor of the Filipino people from disaster like floods or landslide,
Government, the tools and equipment used in and from threats to environmental and economic
committing the offense, and the forest products cut, security like wood and water shortage, biodiversity
gathered or taken by the offender in the process loss, air pollution and drought. Likewise, it provides
committing the offense. The arresting forest officer or for the full, efficient and rights-based use of natural
employee shall thereafter deliver within six (6) hours resources to abate poverty, promote industrialization
from the time of arrest and seizure, the offender and and full employment, affirm the diverse cultures of the
the confiscated forest product, tools and equipment and Filipino, and ensure their availability to present and
file the proper complaint with, the appropriate official future generations;
designated by law to conduct preliminary investigation
and file information in Court. WHEREAS, Sustainable Forest Management (SFM)
is provided in the Global Plan of implementation of the
If the arrest and seizure are made in the forest, far from World Summit on Sustainable Development adopted
the authorities designated by the law to conduct in Johannesburg, as an international strategy for
preliminary investigations, the delivery to, and filing developing and managing forests;
of the complaint with, the latter shall be done within a WHEREAS, important socio-economic and
reasonable time sufficient to the place of delivery. The environmental changes and policy reforms that
seized products, materials and equipment shall be directly affect the forestry sector have taken place
immediately disposed of in accordance with forestry since the issuance in 1975 of Presidential Decree No.
administrative orders promulgated by the Department 705, otherwise known as the Revised Forestry Code of
Head. Philippines, and unless and until otherwise directed by
Congress, there is a need to provide guidance to
The Department Head may deputized any agency, national agencies and instrumentalities on how to best
Bering or barrio official, or any qualified person to harmonize these policy reforms and make the forestry
protect the forest and exercise the power or authority sector responsive to external changes, and attain SFM
provided for in the preceding paragraph. in the Philippines;

Reports and complaints regarding the commission of WHEREAS, logging or any commercial exploitation
any of the offenses defined in this Chapter, not of forestry resources in old growth forests, proclaimed
committed in the presence of any forest officer or watersheds and other areas covered by the National
employee, or any personnel of the Philippine Integrated Protected Areas System (NIPAS) is
Constabulary/Integrated National Police or any of the prohibited to ensure the perpetual existence of all
deputized officers of officials, shall immediately be native plants and animals;
investigated by the forest officer assigned in the area
WHEREAS, a watershed-based integrated ecosystem
or any personnel of the Philippine
management approach is deemed appropriate for SFM
Constabulary/Integrated National Police where the
due to the interrelationships and interactions between
offense was allegedly committed, who shall thereupon
and among the various ecosystems of a watershed such
receive the evidence supporting the report or
as the uplands and coastal areas:
complaint. If there is a prima facie evidence to support
the complaint or report the investigating forest officer NOW, THEREFORE, I GLORIA MACAPAGAL
and/ or members of the Philippine
Constabulary/Integrated National Police shall file the
ARROYO, President of the Republic of the activity of any management unit
Philippines, by virtue of the powers vested in me by shall be the rehabilitation of
the Constitution, do hereby order: open and/or denuded, degraded,
fragile forestlands; and slope
SECTION 1. Declaration of Policy. It shall be the stabilization and protection to
Policy of the Government to pursue the sustainable address occurrence of floods,
management of forests and forestlands in watersheds. landslides and similar
Watersheds shall be deemed as ecosystem ecological disasters.
management units and shall be managed in a holistic,
scientific, rights-based, technologybased and 3. The establishment of tree parks,
community-based manner and observing the principles regreening and roadside
of multi-use, decentralization and devolution, and planting of forest species in
active participation of local government units (LGUs), open and appropriate spaces
synergism of economic, ecological, social and cultural shall be prioritized to mitigate
objectives, and the rational utilization of all resources worsening urban air quality and
found therein. It shall likewise be the policy of the global warming.
Government to promote sound, effective and efficient,
globallycompetitive and equitable forestry practices in 2.3. Community-Based Forest
both public and private domains.
Conservation and Development
SECTION 2. Guiding Principles. The pursuit of these
policies shall be guided by the following principles: 1. Community-Based Forest
Management
2. 1.Delineation, Classification and (CBFM) shall be the primary strategy in all
Demarcation of State Forestlands forest conservation and development and
related activities, including joint ventures,
production sharing and co-production; it shall
1. State forestlands shall be identified, classified be encouraged in all private sector forestry
and delineated/demarcated on the ground and enterprises and ventures.
shall constitute the permanent forest estate
unless otherwise stipulated by Congress; the 2. CBFM shall be a collaborative
same shall be categorized and managed either undertaking of the national
as primarily for production or as primarily for government and the LGUs,
protection purposes, and in both cases, placed local peoples, community
under a formal management scheme. organizations, civil society
organizations (CSOs), and
2. Conversions of forestlands into non-forestry private business entities.
uses shall be allowed only through an act of
Congress and upon the recommendation of 3. Local cultures, values,
concerned government agencies. traditions, religious beliefs and
the rights of indigenous peoples
2.2. Holistic, Sustainable and to their ancestral lands and
Integrated Development of domains as promoted and/or
Forestry Resources defined by existing legislation
shall be recognized and
1. The development and respected in all forestry
management of the undertakings of the State and
Philippines forests and forestlands including the private sector.
the coastal forests shall be for the highest and
widest public benefit and shall be based on 2.4. Incentives for Enhancing Private
the inherent productive capacity and Investments, Economic Contribution and Global
sustainable use of these resource for the Competitiveness of Forest-Based Industries
present and future generation of Filipinos. 1. The government shall provide a
favorable and stable policy and
2. The priority development, investment environment-
protection and management friendly forest based industries,
ensure their sustainable raw shall be developed and
material supply and encourage promoted.
value-added processing in-
country to boost rural 2. Local, regional and national
employment and the economy. plow-back mechanisms of
utilizing proceeds from the use
2. Filipino entrepreneurship in of watersheds, forests and
forestry shall be encouraged and forestlands for ecological and
supported. environmental services such as,
but not limited to power
3. A package of incentives and generation, supplying domestic
services that are responsive to and irrigation water, and eco-
the development of forests in tourism, shall be developed and
private and public forestlands promoted to finance forest
shall be adopted to encourage protection, rehabilitation, and
the development of private development.
forests, including the
deregulation of privately- 3. Appropriate and doable
developed forests and privately- mechanisms for adopting the
planted trees and enhancement principles of environment and
of capacities of stakeholders to natural resources accounting
engage in private forest (ENRA) and watershed
development and related ecosystems as minimum spatial
activities. units of accounts shall be
developed and institutionalized.
4. The development of high-value
tree crops and non-timber forest 4. Innovative financial systems
crops in public forestlands, and approaches, such as
private lands and in home forest securitization, bonds
gardens shall be promoted and and collaborative investments, shall be
encouraged to enhance encouraged to support sustainable forest
economic and ecological management and enterprises and the
benefits and attain conservation of forest-based biodiversity in
selfsufficiency in the countrys the Philippines.
wood requirements.
5. Government investments in and
5. Incentives shall be provided to out-sourced financing for forest
encourage co-management of development such as the
forest resources involving application of clean
national and other government development mechanism
agencies (NGAs/OGAs), (CDM) shall be prioritized in
LGUs, CSOs, and the private favor of forestlands that serve a
sector. significantly large population
such as critical watersheds
2.5. Proper Valuation and Pricing of and/or which serve to reduce
Forestry Resources and Financing poverty and inequitable access
SFM to forests such as those under
CBFM and/or co-management
1. Mechanism for proper valuation by NGAs/OGAs, LGUs,
and fair and comprehensive industries, CSOs, and local
pricing of forest products and communities.
services, including water for
domestic, industrial, irrigation 2.6. Institutional Support for SFM
and power generation,
biodiversity and eco-tourism,
1. The principles and practices of shall assist LGUs in this
good governance such as endeavor.
transparency, 7. Networks and linkages involved
accountability and participatory with local and international
decisionmaking, in transactions, decisions institutions, CSOs, LGUs, and
and actions affecting forestry, in all levels, industries involved in the
and the policy of streamlining, promotion and practice of SFM
decentralization, devolution and deregulation shall be strengthened.
shall be adopted, promoted and
institutionalized in the Government service.

2. Partnerships and collaboration


between and among the DENR,
NGAs/OGAs, LGUs,
professional forestry
organizations, local
communities, civic groups,
CSOs, basic sectors, academic EO No . 263: ADOPTING COMMUNITY-
and other research and BASED FOREST MANAGEMENT AS THE
development institutions and NATIONAL
other stakeholders shall be STRATEGY TO ENSURE THE SUSTAINABLE
promoted. DEVELOPMENT OF THE COUNTRY'S
FORESTLANDS RESOURCES AND
3. Forestry administrative systems PROVIDING
and institutions, including MECHANISMS FOR ITS
research and development, shall IMPLEMENTATION
be upgraded and modernized.
WHEREAS, Article II, Section 16 of the 1987
Constitution provides for the protection and
4. Academic programs and
advancement of the right of the Filipino people, both
scientific research shall be
men and women, to a healthful and balanced ecology;
harnessed to generate
information, technologies and
policies that will WHEREAS, Article II, Section 10 provides for the
strengthen national capacities for SFM under promotion of social justice to all citizens in all phases
the frameworks of watershed ecosystem of national development;
management (WEM) and CBFM.
WHEREAS, Article XIV, Section 17 mandates the
5. Human resources development State to recognize and respect the rights of the
programs for all stakeholders indigenous peoples to their ancestral domains and
shall be rationalized and consider their customs, traditions and beliefs in the
upgraded in support of SFM; formulation of laws and policies;
forestry extension services by
NGAs/OGAs and LGU shall be WHEREAS, Executive Order No. 192, series of 1987,
upgraded and intensified and mandates the Department of Environment and Natural
undertaken with CSOs, to Resources (DENR) as the primary government agency
support CBFM, pirvate forestry, responsible for the sustainable management and
forestry co-management development of the country's natural resources;
enterprises, and the
development of forestbased WHEREAS, the Philippines 2000 and the
biodiversity. government's Social Reform Agenda support people
empowerment and the full, meaningful and
6. Forest land use plans shall be indispensable participation of communities as
incorporated by LGUs in their immediate stakeholders of the forestland resources in
comprehensive land use plans. the protection and management of the forest
National Government agencies ecosystem;
WHEREAS, the 25-year Master Plan for Forestry on Countrywide Development under the Office of the
Development also recognizes the indispensable role of President, Committee on Flagship Programs and
local communities in forest protection, rehabilitation, Projects of the Office of the President; Presidential
development and management, and targets the Management Staff under the Office of the President;
protection, rehabilitation, management, and utilization Cooperative Development Authority, and Offices of
of at least 4 million hectares of forestlands, through the Northern and Southern Cultural Communities. The
community-based forest management strategy; Committee may invite representatives from the
Philippine Chamber of Commerce, Philippine Wood
WHEREAS, entrusting the responsibility for forest Products Association, NGO coalition groups, and
rehabilitation, protection, and conservation to the other public and private organizations to become
community of stakeholders and affording them members of the Steering Committee. The Committee
equitable access to the forest and coastal resources are shall formulate and develop policy guidelines that will
viable forestland management strategies as borne by create incentives and conditions necessary to
the experience of the DENR and various supporting effectively carry out community-based forest
agencies; management strategy. Accordingly, members of the
CBFM Steering Committee should, at least, be
NOW, THEREFORE, I FIDEL V. RAMOS, President represented by concerned Assistant Secretaries or
of the Philippines, by virtue of the powers vested in me heads of bureaus and agencies.
by law, do hereby order that:
Sec. 6. The DENR shall work with local governments,
Sec. 1. Community-based forest management (herein people's organizations (POs), non-government
referred to as CBFM) shall be the national strategy to organizations (NGOs), religious groups, business and
achieve sustainable forestry and social justice. industry, and other concerned organizations to ensure
that communities are empowered to initiate and
Sec. 2. The DENR, through its Community and achieve the objectives of this Order.
Provincial Environment and Natural Resource Offices,
in coordination with the local government units and the Sec. 7. In its budget preparation, the DENR shall allot
Department of Interior and Local Government (DILG) adequate funds to effectively accomplish CBFM
shall, at all times, take into account the needs and targets and shall seek supplementary funding from
aspirations of local communities whose livelihood local and foreign supporting agencies and
depends on the forestlands. organizations. DENR shall ensure the inclusion of
budgetary allocation for CBFM in the annual General
Sec. 3. Participating organized communities may be Appropriations Act, pending the passage of the revised
granted access to the forestland resources under long Forestry Code.
term tenurial agreements, provided they employ
environment-friendly, ecologicallysustainable, and Sec. 8. The DENR shall establish a Community-based
labor-intensive harvesting methods. Such harvesting Forest Management Special Account (CBFMSA) to
methods shall be mentioned under a site-specific support the implementation of the strategy and provide
management plan of each recipient community and financial and professional incentive system for
duly approved by the DENR. deserving communities and government personnel.

Sec. 4. The indigenous peoples may participate in the Sec. 9. The DENR may source local and international
implementation of CBFM activities in recognition of grants and donations for the establishment of the
their rights to their ancestral domains and land rights CBFM Special Account. Other sources of fund may
and claims. later be determined by the CBFM Steering Committee
subject to existing government regulations.
Sec. 5. A CBFM Steering Committee shall be created
immediately and headed by the DENR with members Sec. 10. The DENR shall support and set up jointly
from the Departments of Agriculture, Trade and with relevant colleges and universities, private and
Industry, Agrarian Reform, Finance, Science and public organizations, arrangements for a community
Technology, Labor and Employment, Interior and forestry training program for members of participating
Local Government, Budget and Management, units, such as people's organizations, non-government
National Defense and Justice; National Economic organizations, local government units, and other
Development and Authority; Philippine Commission government personnel.
Sec. 11. Within six months after the signing of this means, that may be used for, but is not
Order, the DENR, in consultation with government limited to, the felling of trees or the
financial institutions, such as the Development Bank cutting of timber;
of the Philippines (DBP), the Land Bank of the
Philippines (LBP), GSIS and the SSS, shall effect the (b) "Chain saw dealer" shall refer to a
creation of favorable financing mechanisms for access person, natural or juridical, engaged in
by communities and organizations in the pursuit of the the manufacture, importation,
CBFM strategy and its sub-strategies such as distribution, purchase and/or sale of
community training and empowerment, enterprise chain saws;
development, agroforestry development, tree
plantations, and other non-forest-based alternative (c) "Department" shall refer to the
livelihood systems. Department of Environment and Natural
Resources; and
Sec. 12. The DENR Secretary shall issue new rules,
regulations, procedures, and guidelines necessary to (d) "Secretary" shall refer to the Secretary
implement this Order and repeal or modify existing of the Department of Environment and
ones consistent with the policies set forth by the CBFM Natural Resources.
Steering Committee.
Section 4. Persons Authorized to Manufacturer, Sell
Sec. 13. The DENR Secretary shall, within six months and Import Chain Saws. - Chain saws shall only be
from the signing of this Order, submit to the Office of sold and/or imported by manufacturers, dealers and/or
the President, a National Comprehensive Community private owners who are duly authorized by the
Forestry Action Plan, which embodies the Department.
Department's short, medium and long-term plans. The
action plan shall be discussed and approved by the
Section 5. Persons Authorized to Possess and Use a
CBFM Steering Committee prior to its submission to
Chain Saw. - The Department is hereby authorized to
the President.
issue permits to possess and/or use a chain saw for the
Sec. 14. All previous executive and administrative
felling land/or cutting of trees, timber and other forest
issuances which are inconsistent herewith are repealed
or agro-forest products to any applicant who:
or amended accordingly.
(a) has a subsisting timber license agreement,
production sharing agreement, or similar
agreements, or a private land timber
Republic Act No. 9175 : Chain Saw Act of 2002
permit;
Section 2. Declaration Policy. It is the policy of the
(b) is an orchard and fruit tree farmer;
State consistent with the Constitution, to conserve,
(c) is an industrial tree farmer;
develop and protect the forest resources under
sustainable management. Toward this end, the State
shall pursue an aggressive forest protection program (d) is a licensed wood processor and the chain
geared towards eliminating illegal logging and other saw shall be used for the cutting of timber
forms of forest destruction which are being facilitated that has been legally sold to said applicant;
with the use of chain saws. The State shall therefore or
regulate the ownership, possession, sale, transfer,
importation and/or use of chain saws to prevent them (e) shall use the chain saw for a legal purpose.
from being used in illegal logging or unauthorized
clearing of forests. Agencies of the government that use chain saws in
some aspects of their functions must likewise secure
Section 3. Definition of Terms. - As used in this Act, the necessary permit from the Department before
the term: operating the same.

(a) "Chain saw" shall refer to any portable Section 6. Registration of Chain Saws. - Within a
power saw or similar cutting implement, period of three (3) months from the effectivity hereof,
rendered operative by an electric or all persons who own or are otherwise in possession of
internal combustion engine or similar chain saws must register the same with the
Department, through any of its Community of a chain saw and uses the same to cut trees
Environment and Natural Resources Office, which and timber in forest land or elsewhere except
shall issue the corresponding registration certificate or as authorized by the Department shall be
permit if it finds such persons to be qualified penalized with imprisonment of six (6) years
hereunder. and one (1) day to eight (8) years or a fine of
not less that Thirty thousand pesos
Every permit to possess and/or use a chain saw for (P30,000.00) but not more than Fifty
legitimate purpose shall be valid for two (2) years upon thousand pesos (P50,000.00) or both at the
issuance: Provided, That permits to possess and use discretion of the court without prejudice to
chainsaw issued to non-commercial orchard and fruit being prosecuted for a separate offense that
tree farmers shall be valid for a period of five (5) years may have been simultaneously committed.
upon issuance. For this purpose, the Department shall The chain saw unlawfully used shall be
be allowed to collect reasonable registration fees for likewise confiscated in favor of the
the effective implementation of this Act. government.

Section 7. Penal Provisions. - If the violation under this Section is committed by or


through the command or order of another person,
(a) Selling, Purchasing, Re-selling, partnership or corporation, the penalties herein
Transferring, Distributing or Possessing a provided shall likewise be imposed on such other
Chain Saw Without a Proper Permit. - Any person, or the responsible officer(s) in such partnership
person who sells, purchases, transfer the or corporation.
ownership, distributes or otherwise disposes
or possesses a chain saw without first If the offender is a public official or employee, in
securing the necessary permit from the addition to the above penalties, he shall be removed
Department shall be punished with from office and perpetually disqualified from holding
imprisonment of four (4) years, two (2) any public office.
months and one (1) day to six (6) years or a
fine of not less than Fifteen thousand pesos The chain saws confiscated under this Section shall be
(P15,000.00) but not more Thirty thousand sold at public auction to qualified buyers and the
pesos (30,000.00) or both at the discretion of proceeds thereof shall go to the Department.
the court, and the chain saw/s confiscated in
favor of the government. Section 8. Reward. - Any person who voluntarily gives
information leading to the recovery or confiscation of
(2) Unlawful Importation or an unregistered chain saw and the conviction of
Manufacturing of Chain Saw. - Any person persons charged thereof shall be entitled to a reward
who imports or manufactures a chain saw equivalent to twenty person (20%) of the value of the
without obtaining prior authorization from chain saw unit(s). The Department is authorized to
the Department shall be punished by include in its budget the amount necessary to carry out
imprisonment of not less than one (1) month the purpose of this Section.
nor more than six (6) months and a fine of not
less than One thousand pesos (P1,000.00) for Section 9. Authority of the Secretary. - To effectively
more than Four thousand pesos (P4,000.00). implement the provisions of this Act, the Secretary
shall issue the implementing rules and regulations
(3) Tampering of Engine Serial within ninety (90) days upon approval of this Act. He
Number. - Any person who is found to have shall likewise organize an office within the
defaced or tampered with the original Department to ensure that requirements imposed by
registered engine serial number of any chain this Act may be complied with by qualified persons,
saw unit shall be punished by imprisonment within the shortest possible time, at the least possible
of not less than one (1) month nor more than expense.
six (6) months and a fine of not less than One
thousand pesos (P1,000.00) nor more than In the Province of Palawan, the provisions of this Act
Four thousand pesos (P4,000.00). shall be implemented by the Palawan Council for
Sustainable Development pursuant to Republic Act
(4) Actual Unlawful Use of Chain Saw. No. 7611 or the Strategic Environmental Plan for
- Any person who is found to be in possession Palawan.
Section 10. Revocation of Registration and Permit. -
The Secretary may revoke any Certificate of
Registration or permit previously issued to a person
found violating the provisions of this Act, or the rules
and regulations issued pursuant thereto.

Section 11. Joint Congressional Oversight Committee.


- To monitor and oversee the implementation of this
Act, including the approval of the rules and regulations
issued pursuant hereto, there is hereby created a Joint
Congressional Oversight Committee to be composed
of the Chairpersons of the Senate Committee on
Environment and Natural Resources and the House
Committee on Natural Resources as Chairperson and
Co-Chairperson, five (5) members of each of the
Senate and the House of Representatives who shall be
designated by the Senate President and the Speaker of
the House of Representatives as members: Provided,
That the two (2) of the five (5) senators and two (2) of
the five (5) House members shall be nominated by the
respective Minority Leaders of the Senate and the
House of
Representatives.