Resident Marine Mammals vs Reyes

GR 180771
April 21, 2015

Facts:
The Government, acting through DOE (Department of Energy), entered into a contract with
JAPEX (Japan Petroleum Exploration Co.) for the geological and geophysical study of the Tañon
Strait.

Later, the agreement was formally converted into SC-46 (Service Contract 46) for the
exploration, development, and production of petroleum resources in a block covering an offshore
area of the Tañon Strait.

Petitioners, Resident Marine Mammals and FIDEC (Central Visayas Fisherfolk Development
Center), mainly alleged that SC-46 should be declared null and void for being entered into
without strict compliance with substantive and procedural processes under the Environmental
Impact Assessment System, the Fisheries Code, and their respective IRRs. Further, the
requirements for entering into a Service Contract under the 1987 Constitution were also not
followed by the DOE. These are on top of the adverse environmental impacts due to the
exploration activities from SC-46.

Respondents, DOE and JAPEX, assert that SC-46 does not violate the 1987 Constitution and
other laws mentioned by petitioners. They also question petitioners’ legal standing for this case.
Further, they assert that the issue is already moot and academic for SC-46 was mutually
terminated back in June 21, 2008.

Issues:
1) Legal Standing of Petitioners
2) Whether or not SC-46 should be declared null and void for violating the 1987 Constitution
and other laws mentioned (Main issue)

Held:
The Court held that 1) they have legal standing, and 2) SC-46 is null and void for violating the
1987 Constitution and other pertinent laws.

Preliminarily, the SC determined that this case is one of the few exceptions to the moot and
academic principle. The exceptions are:
1) There is a grave violation of the Constitution;

2) The exceptional character of the situation and the paramount public interest is involved;

3) The constitutional issue raised requires formulation of controlling principles to guide the
bench, the bar, and the public; and

4) The case is capable of repetition yet evading review

For the first issue, the SC brought up that under the Rules of Procedure for Environmental Cases,
the need to give petitioner, Resident Marine Mammals, legal standing has been eliminated. The
Rules allows any Filipino citizen, as a steward of nature, to bring a suit to enforce our
environmental laws.

Even before that, a similar suit was allowed by the court in Oposa vs. Factoran.

For the main issue, the SC determined that although PD 87 is the general law prescribing the
standard or uniform terms, conditions and requirements for service contracts involving oil
exploration and extraction, the other two conditions to validly enter into a service contract were
not validly complied with.

The condition that a law must be passed by Congress for the valid exploitation and utilization of
energy resources in Tañon Strait, being a NIPAS (National Integrated Protected Areas System)
area, was not complied with.

The other condition set by the 1987 Constitution, that the President himself must enter into these
kinds of contracts is not complied with by invoking the Alter Ego Doctrine (the acts of the heads
of the executive departments are the acts of the President himself). It is not enough that there is
no proof of the President’s disapproval of the agreement. The 1987 Constitution expressly
requires the President to enter into these kinds of contracts.