Section 2.

REGALIAN DOCTRINE

Distinction between Imperium and Dominium.

1. Imperium
Government authority possessed by the State which is appropriately embraced in sovereignty.
2. Dominium
1. The capacity of the State to own and acquire property.
2. It refers to lands held by the government in a proprietary character: can provide for the exploitation
and use of lands and other natural resources.

Scope:
The following are owned by the State:
1. Lands of the public domain:
Waters
Minerals, coals, petroleum, and other mineral oils;
All sources of potential energy;
Fisheries;
Forests or timber;
Wildlife;
Flora and fauna; and
Other natural resources.

Alienation of Natural Resources

1. General Rule: All natural resources CANNOT be alienated
2. Exception: Agricultural lands

Exploration, Development and Utilization of Natural Resources

1. Shall be under the full control and supervision of the State
2. Means
A. The state may DIRECTLY UNDERTAKE such activities
B. The state may enter into CO-PRODUCTION, JOINT VENTURE OR PRODUCTION-SHARING
arrangements with Filipino citizen or Corporation or association at least 60% of whose capital is
owned by such citizens.
3. Limitations:
A. Period: It should not exceed 25 years, renewable for not more than 25 years
B. Under terms and conditions as may be provided by law.
4. In case of water rights/water supply/fisheries/industrial uses other than the development of water power
The beneficial use may be the measure and limit of the grant.

Small-scale Utilization of Natural Resources

1. Congress may, by law, authorize small-scale utilization of natural resources by Filipino citizens
2. Congress may also authorize cooperative fish farming with priority given to subsistence fishermen and
fishworkers in the rivers, lakes, bays and lagoons.

Large-Scale Exploration, Development and Utilization of Minerals/Petroleum/Other Mineral Oils

1. The President may enter into agreements with foreign owned corporations involving technical or
financial assistance for large-scale exploration etc. of minerals, petroleum, and other mineral oils. These
agreements should be in accordance with the general terms and conditions provided by law.
2. They should be based on the real contributions to economic growth and general welfare of the country.
3. In the agreements, the State should promote the development and use of local scientific and technical
resources.
4. The President should notify Congress of every contract under this provision within 30 days from its
execution.
5. Management and service contracts are not allowed under this rule.

Protection of Marine Wealth

1. The State shall protect its marine wealth in its
Archipelagic waters
Territorial sea &
EEZ
2. The State shall reserve its use and enjoyment exclusively to Filipino citizens.