EN BANC

APEX MINING CO., INC.,

Petitioner,
- versus -
SOUTHEAST MINDANAO GOLD
MINING CORP., THE MINES
ADJUDICATION BOARD,
PROVINCIAL MINING
REGULATORY BOARD (PMRB-
DAVAO), MONKAYO
INTEGRATED SMALL SCALE
MINERS ASSOCIATION, INC.,
ROSENDO VILLAFLOR, BALITE
COMMUNAL PORTAL MINING
COOPERATIVE, DAVAO UNITED
MINERS COOPERATIVE,
ANTONIO DACUDAO, PUTING-
BATO GOLD MINERS
COOPERATIVE, ROMEO
ALTAMERA, THELMA
CATAPANG, LUIS GALANG,
RENATO BASMILLO,
FRANCISCO YOBIDO,
EDUARDO GLORIA, EDWIN
ASION, MACARIO HERNANDEZ,
REYNALDO CARUBIO,
ROBERTO BUNIALES, RUDY
ESPORTONO, ROMEO
CASTILLO, JOSE REA, GIL
GANADO, PRIMITIVA LICAYAN,
LETICIA ALUEZA !"# JOEL
BRILLANTES MANAGEMENT
MINING CORPORATION,
Respondents.
x - - - - - - - - - - - - - - - - - - - - - - - - - x
G.R. N$%. &'()&* + &'()(,
BALITE COMMUNAL PORTAL
MINING COOPERATIVE,
Petitioner,
- versus -
SOUTHEAST MINDANAO GOLD
MINING CORP., APEX MINING
CO., INC., THE MINES
ADJUDICATION BOARD,
PROVINCIAL MINING
REGULATORY BOARD (PMRB-
DAVAO), MONKAYO
INTEGRATED SMALL SCALE
MINERS ASSOCIATION, INC.,
ROSENDO VILLAFLOR, DAVAO
UNITED MINERS COOPERATIVE,
ANTONIO DACUDAO, PUTING-
BATO GOLD MINERS
COOPERATIVE, ROMEO
ALTAMERA, THELMA
CATAPANG, LUIS GALANG,
RENATO BASMILLO,
FRANCISCO YOBIDO, EDUARDO
GLORIA, EDWIN ASION,
MACARIO HERNANDEZ,
REYNALDO CARUBIO,
ROBERTO BUNIALES, RUDY
ESPORTONO, ROMEO
CASTILLO, JOSE REA, GIL
GANADO, PRIMITIVA LICAYAN,
LETICIA ALUEZA !"# JOEL
BRILLANTES MANAGEMENT
MINING CORPORATION,
Respondents.
x - - - - - - - - - - - - - - - - - - - - - - - - x
THE MINES ADJUDICATION
BOARD AND ITS MEMBERS, THE
HON. VICTOR O. RAMOS
(C-!./0!"), UNDERSECRETARY
VIRGILIO MARCELO (M1021/)
!"# DIRECTOR HORACIO
RAMOS (M1021/),
G.R. N$. &'()&3-(4
G.R. No. 152870-71
Present:
PUNO, C.J.,
CARPIO,
CORONA,
*

Petitioners,
- versus -
SOUTHEAST MINDANAO GOLD
MINING CORPORATION,
Respondent.
CARPIO ORA!"#,
C$ICO-NA%ARIO,
&"!A#CO, 'R.,
*

NAC$URA,
**
!"ONAR(O-(" CA#)RO,
*RION,
P"RA!)A,
*

*"R#AIN,
("! CA#)I!!O,
A*A(, +nd
&I!!ARAA, 'R., JJ.
Pro,-./+ted:
No0e,1er 20, 2002
x- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -x
R " # O ! U ) I O N
C$ICO-NA%ARIO, J.:
)3is reso.0es t3e ,otion 4or re5onsider+tion d+ted 12 '-.6 2007, 4i.ed
16 #o-t3e+st ind+n+o Go.d inin/ Corpor+tion 8#"9, o4 t3is Co-rt:s
(e5ision d+ted 2; '-ne 2007 8Ass+i.ed (e5ision9. )3e Ass+i.ed (e5ision
3e.d t3+t t3e +ssi/n,ent o4 "xp.or+tion Per,it 8"P9 1;; in 4+0or o4 #"
0io.+ted one o4 t3e 5onditions stip-.+ted in t3e per,it, i.e., t3+t t3e s+,e
s3+.. 1e 4or t3e ex5.-si0e -se +nd 1ene4it o4 +r5opper inin/ Corpor+tion
8C9 or its d-.6 +-t3ori<ed +/ents. #in5e #" did not 5.+i, or s-1,it
e0iden5e t3+t it =+s + desi/n+ted +/ent o4 C, t3e .+tter 5+nnot 1e
5onsidered +s +n +/ent o4 t3e 4or,er t3+t 5+n -se "P 1;; +nd 1ene4it 4ro, it.
It +.so r-.ed t3+t t3e tr+ns4er o4 "P 1;; 0io.+ted Presidenti+. (e5ree No. >7;,
=3i53 re?-ires t3+t t3e +ssi/n,ent o4 + ,inin/ ri/3t 1e ,+de =it3 t3e prior
+ppro0+. o4 t3e #e5ret+r6 o4 t3e (ep+rt,ent o4 "n0iron,ent +nd N+t-r+.
*
On o44i5i+. .e+0e.
*

*
No p+rt.
Reso-r5es 8("NR9. oreo0er, t3e Ass+i.ed (e5ision pointed o-t t3+t "P
1;; expired 16 non-rene=+. sin5e it =+s not rene=ed 1e4ore or +4ter its
expir+tion.
)3e Ass+i.ed (e5ision .i@e=ise -p3e.d t3e 0+.idit6 o4 Pro5.+,+tion
No. 227 +1sent +n6 ?-estion +/+inst its 0+.idit6. In 0ie= o4 t3is, +nd
5onsiderin/ t3+t -nder #e5tion 5 o4 Rep-1.i5 A5t No. 72>2, ot3er=ise
@no=n +s t3e Ainin/ A5t o4 1225,B ,inin/ oper+tions in ,iner+.
reser0+tions ,+6 1e -ndert+@en dire5t.6 16 t3e #t+te or t3ro-/3 + 5ontr+5tor,
t3e Co-rt dee,ed t3e iss-e o4 o=ners3ip o4 priorit6 ri/3t o0er t3e 5ontested
(i=+.=+. Go.d R-s3 Are+ +s 3+0in/ 1een o0ert+@en 16 t3e s+id
pro5.+,+tion. )3-s, it =+s 3e.d in t3e Ass+i.ed (e5ision t3+t it is no=
=it3in t3e prero/+ti0e o4 t3e "xe5-ti0e (ep+rt,ent to -ndert+@e dire5t.6 t3e
,inin/ oper+tions o4 t3e disp-ted +re+ or to +=+rd t3e oper+tions to pri0+te
entities in5.-din/ petitioners Apex +nd *+.ite, s-1Ce5t to +pp.i5+1.e .+=s,
r-.es +nd re/-.+tions, +nd pro0ided t3+t t3ese pri0+te entities +re ?-+.i4ied.
#" +.so 4i.ed + otion 4or Re4err+. o4 C+se to t3e Co-rt En Banc
+nd 4or Or+. Ar/-,ents d+ted 22 A-/-st 2007.
Apex, 4or its p+rt, 4i.ed + otion 4or C.+ri4i5+tion o4 t3e Ass+i.ed
(e5ision, pr+6in/ t3+t t3e Co-rt e.-5id+te on t3e (e5ision:s prono-n5e,ent
t3+t A,inin/ oper+tions, +re no=, t3ere4ore =it3in t3e 4-.. 5ontro. o4 t3e
#t+te t3ro-/3 t3e exe5-ti0e 1r+n53.B oreo0er, Apex +s@s t3is Co-rt to
order t3e ines +nd Geos5ien5es *o+rd 8G*9 to +55ept its +pp.i5+tion 4or
+n exp.or+tion per,it.
In its +ni4est+tion +nd otion d+ted 28 '-.6 2007, *+.ite e53oes t3e
s+,e 5on5ern +s t3+t o4 Apex on t3e +5t-+. t+@eo0er 16 t3e #t+te o4 t3e
,inin/ ind-str6 in t3e disp-ted +re+ to t3e ex5.-sion o4 t3e pri0+te se5tor. In
+ddition, *+.ite pr+6s 4or t3is Co-rt to dire5t G* to +55ept its +pp.i5+tion
4or +n exp.or+tion per,it.
C+,i.o *+n+d, et al., .i@e=ise 4i.ed + ,otion 4or re5onsider+tion +nd
pr+6ed t3+t t3e disp-ted +re+ 1e +=+rded to t3e,.
In t3e Reso.-tion d+ted 15 Apri. 2008, t3e Co-rt "n *+n5 reso.0ed to
+55ept t3e inst+nt 5+ses. )3e Co-rt, in + reso.-tion d+ted 22 Apri. 2008,
reso.0ed to set t3e 5+ses 4or Or+. Ar/-,ent on 1 '-.6 2008.
(-rin/ t3e Or+. Ar/-,ent, t3e Co-rt identi4ied t3e 4o..o=in/ prin5ip+.
iss-es to 1e dis5-ssed 16 t3e p+rties:
1. Whether the transfer or assignment of Exploration Permit (EP) 133
b !!C to "E! #as vali$l ma$e #ithout violating an of the
terms an$ con$itions set forth in Presi$ential %ecree &o. '(3 an$
EP 133 itself.
). Whether "outheast !in$anao !ining Corp. ac*uire$ a veste$ right
over the $ispute$ area+ #hich constitutes a propert right protecte$
b the Constitution.
3. Whether the assaile$ %ecision $ate$ )3 June ),,( of the -hir$
%ivision in this case is contrar to an$ overturns the earlier %ecision
of this Court in .pex v. /arcia (/.0. &o. 1)(,2+ 1( Jul 1111+ 111
"C0. )34).
'. Whether the issuance of Proclamation &o. )13 $eclaring the
$ispute$ area as mineral reservation out#eighs the claims of "E!+
.pex !ining Co. 5nc. an$ Balite Communal Portal !ining
Cooperative over the %i#al#al /ol$ 0ush .rea.
2. Whether the issue of the legalit6constitutionalit of Proclamation
&o. )13 #as belate$l raise$.
(. .ssuming that the legalit6constitutionalit of Proclamation &o. )13
#as timel raise$+ #hether sai$ proclamation violates an of the
follo#ing7
a. .rticle 855+ "ection ' of the Constitution9
b. "ection 1 of 0epublic .ct &o. 3,1)9
c. "ection 1' of the .$ministrative Co$e of 11439
$. "ection 2(a) of 0epublic .ct &o. 324(9
e. "ection '(a) of 0epublic .ct &o. ((239 an$
f. "ection )+ "ubsection ).1.) of Executive :r$er &o. 314 $ate$ 1
June ),,'.
A4ter 3e+rin/ t3e +r/-,ents o4 t3e p+rties, t3e Co-rt re?-ired t3e, to
s-1,it t3eir respe5ti0e ,e,or+nd+. e,or+nd+ =ere +55ordin/.6 4i.ed 16
#", Apex, *+.ite +nd ines AdC-di5+tion *o+rd 8A*9.
De s3+.. reso.0e t3e se5ond iss-e 1e4ore d=e..in/ on t3e 4irst, t3ird
+nd t3e rest o4 t3e iss-es.
MMC $/ SEM D.# N$5 H!61 V1%51#
R.7-5% O61/ 5-1 D.8!98!9 G$9# R:%-
A/1!
Petitioner #" 0i/oro-s.6 +r/-es t3+t .pex !ining Co.+ 5nc. v.
/arcia
1
0ested in C ,inin/ ri/3ts o0er t3e disp-ted +re+. It 5.+i,s t3+t
t3e ,inin/ ri/3ts t3+t C +5?-ired -nder t3e s+id 5+se =ere t3e ones
+ssi/ned to #", +nd not t3e ri/3t to exp.ore -nder C:s "P 1;;. It
insists t3+t ,inin/ ri/3ts, on5e o1t+ined, 5ontin-e to s-1sist re/+rd.ess o4 t3e
0+.idit6 o4 t3e exp.or+tion per,itE t3-s, ,inin/ ri/3ts +re independent o4 t3e
exp.or+tion per,it +nd t3ere4ore do not expire =it3 t3e per,it. #" insists
t3+t + ,inin/ ri/3t is + 0ested propert6 ri/3t t3+t not e0en t3e /o0ern,ent
5+n t+@e +=+6. )o s-pport t3is t3esis, #" 5ites t3is Co-rt:s r-.in/ in
!c%aniel v. .pacible an$ Cuisia
)
+nd in /ol$ Cree; !ining Corporation v.
0o$rigue<+
3
=3i53 =ere de5ided in 1222 +nd 12;8, respe5ti0e.6.
1
G.R. No. 22705, 17 '-.6 1221, 122 #CRA 278.
2
>2 P3i.. 7>2 812229.
;
77 P3i.. 252 812;89.
!c%aniel +nd /ol$ Cree; !ining Corporation +re not in point.
In 1217, !c%aniel, petitioner t3erein, .o5+ted ,iner+.s, i.e.+
petro.e-,, on +n -no55-pied p-1.i5 .+nd +nd re/istered 3is ,iner+. 5.+i,s
=it3 t3e o44i5e o4 t3e ,inin/ re5order p-rs-+nt to t3e P3i.ippine *i.. o4
1202, =3ere + ,inin/ 5.+i, .o5+tor, soon +4ter .o5+tin/ t3e ,ine, enCo6ed
possessor6 ri/3ts =it3 respe5t to s-53 ,inin/ 5.+i, =it3 or =it3o-t + p+tent
t3ere4or. In t3+t 5+se, t3e A/ri5-.t-re #e5ret+r6, 16 0irt-e o4 A5t No. 22;2,
+ppro0ed in 1220, =3i53 pro0ides t3+t A+.. p-1.i5 .+nds ,+6 1e .e+sed 16 t3e
t3en #e5ret+r6 o4 A/ri5-.t-re +nd N+t-r+. Reso-r5es,B =+s +1o-t to /r+nt t3e
+pp.i5+tion 4or .e+se o4 t3erein respondent, o0er.+ppin/ t3e ,inin/ 5.+i,s o4
t3e s-1Ce5t petitioner. Petitioner +r/-ed t3+t, 1ein/ + 0+.id .o5+tor, 3e 3+d
0ested ri/3t o0er t3e p-1.i5 .+nd =3ere 3is ,inin/ 5.+i,s =ere .o5+ted.
)3ere, t3e Co-rt r-.ed t3+t t3e ,inin/ 5.+i, per4e5ted -nder t3e P3i.ippine
*i.. o4 1202, is Apropert6 in t3e 3i/3est sense o4 t3+t ter,, =3i53 ,+6 1e
so.d +nd 5on0e6ed, +nd =i.. p+ss 16 des5ent, +nd is not t3ere4ore s-1Ce5t to
t3e dispos+. o4 t3e Go0ern,ent.B )3e Co-rt t3en de5.+red t3+t sin5e
petitioner 3+d +.re+d6 per4e5ted 3is ,inin/ 5.+i, -nder t3e P3i.ippine *i..
o4 1202, + s-1se?-ent st+t-te, i.e.+ A5t No. 22;2, 5o-.d not oper+te to
depri0e 3i, o4 3is +.re+d6 per4e5ted ,inin/ 5.+i,, =it3o-t 0io.+tin/ 3is
propert6 ri/3t.
/ol$ Cree; !ining reiter+ted t3e r-.in/ in !c%aniel t3+t + per4e5ted
,inin/ 5.+i, -nder t3e P3i.ippine *i.. o4 1202 no .on/er 4or,ed p+rt o4 t3e
p-1.i5 do,+inE 3en5e, s-53 ,inin/ 5.+i, does not 5o,e =it3in t3e
pro3i1ition +/+inst t3e +.ien+tion o4 n+t-r+. reso-r5es -nder #e5tion 1,
Arti5.e FII o4 t3e 12;5 Constit-tion.
G.e+ned 4ro, t3e r-.in/ on t3e 4ore/oin/ 5+ses is t3+t 4or t3is .+= to
+pp.6, it ,-st 1e est+1.is3ed t3+t t3e ,inin/ 5.+i, ,-st 3+0e 1een per4e5ted
=3en t3e P3i.ippine *i.. o4 1202 =+s sti.. in 4or5e +nd e44e5t. )3is is so
1e5+-se, -n.i@e t3e s-1se?-ent .+=s t3+t pro3i1it t3e +.ien+tion o4 ,inin/
.+nds, t3e P3i.ippine *i.. o4 1202 s+n5tioned t3e +.ien+tion o4 ,inin/ .+nds
to pri0+te indi0id-+.s. )3e P3i.ippine *i.. o4 1202 5ont+ined pro0isions 4or,
+,on/ ,+n6 ot3er t3in/s, t3e open +nd 4ree exp.or+tion, o55-p+tion +nd
p-r53+se o4 ,iner+. deposits +nd t3e .+nd =3ere t3e6 ,+6 1e 4o-nd. It
de5.+red A!99 6!9:!291 0."1/!9 #1;$%.5% ." ;:29.< 9!"#% ." 5-1 P-.9.;;."1
I%9!"#%, 2$5- %:/61=1# !"# :"%:/61=1# > > > 5$ 21 ?/11 !"# $;1" 5$
1>;9$/!5.$", $<<:;!5.$", !"# ;:/<-!%1, !"# 5-1 9!"# ." 8-.<- 5-1= !/1
?$:"# 5$ $<<:;!5.$" !"# ;:/<-!%1, 2= <.5.@1"% $? 5-1 U".51# S5!51%, $/ $?
%!.# I%9!"#% > > >.B
>
P-rs-+nt to t3is .+=, t3e 3o.der o4 t3e ,iner+. 5.+i, is
entit.ed to +.. t3e ,iner+.s t3+t ,+6 .ie =it3in 3is 5.+i,, pro0ided 3e does
t3ree +5ts: Girst, 3e enters t3e ,inin/ .+nd +nd .o5+tes + p.ot o4 /ro-nd
,e+s-rin/, =3ere possi1.e, 1-t not ex5eedin/, one t3o-s+nd 4eet in .en/t3 16
one t3o-s+nd 4eet in 1re+dt3, in +s ne+r.6 + re5t+n/-.+r 4or, +s possi1.e.
5
#e5ond, t3e ,inin/ .o5+tor 3+s to re5ord t3e ,iner+. 5.+i, in t3e ,inin/
re5order =it3in t3irt6 8;09 d+6s +4ter t3e .o5+tion t3ereo4.
7
!+st.6, 3e ,-st
5o,p.6 =it3 t3e +nn-+. +5t-+. =or@ re?-ire,ent.
7
Co,p.ete ,inin/ ri/3ts,
n+,e.6, t3e ri/3ts to exp.ore, de0e.op +nd -ti.i<e, +re +5?-ired 16 + ,inin/
.o5+tor 16 si,p.6 4o..o=in/ t3e 4ore/oin/ re?-ire,ents.
Dit3 t3e e44e5ti0it6 o4 t3e 12;5 Constit-tion, =3ere t3e regalian
do5trine =+s +dopted, it =+s de5.+red t3+t +.. n+t-r+. reso-r5es o4 t3e
P3i.ippines, in5.-din/ ,iner+. .+nds +nd ,iner+.s, =ere propert6 1e.on/in/
to t3e #t+te.
8
"x5.-ded, 3o=e0er, 4ro, t3e propert6 o4 p-1.i5 do,+in =ere
>
.to; Big=We$ge !ining Co. v. 5nterme$iate .ppellate Court, ;;0 P3i.. 2>>, 272 812279.
5
Id. +t 272.
7
Id.
7
Id. +t 27;.
8
Id.
t3e ,iner+. .+nds +nd ,iner+.s t3+t =ere .o5+ted +nd per4e5ted 16 0irt-e o4
t3e P3i.ippine *i.. o4 1202, sin5e t3e6 =ere +.re+d6 5onsidered pri0+te
properties o4 t3e .o5+tors.
2
Co,,on=e+.t3 A5t No. 1;7 or t3e inin/ A5t o4 12;7, =3i53
express.6 +dopted t3e regalian do5trine 4o..o=in/ t3e pro0ision o4 t3e 12;5
Constit-tion, +.so pros5ri1ed t3e +.ien+tion o4 ,inin/ .+nds +nd /r+nted on.6
.e+se ri/3ts to ,inin/ 5.+i,+nts, =3o =ere pro3i1ited 4ro, p-r53+sin/ t3e
,inin/ 5.+i, itse.4.
D3en Presidenti+. (e5ree No. >7;, =3i53 re0ised Co,,on=e+.t3 A5t
No. 1;7, =+s in 4or5e in 127>, it .i@e=ise re5o/ni<ed t3e regalian do5trine
e,1odied in t3e 127; Constit-tion. It de5.+red t3+t +.. ,iner+. deposits +nd
p-1.i5 +nd pri0+te .+nds 1e.on/ed to t3e st+te =3i.e, nonet3e.ess,
re5o/ni<in/ ,iner+. ri/3ts t3+t 3+d +.re+d6 1een existin/ -nder t3e
P3i.ippine *i.. o4 1202 +s 1ein/ 1e6ond t3e p-r0ie= o4 t3e regalian
do5trine.
10
)3e possessor6 ri/3ts o4 ,inin/ 5.+i, 3o.ders -nder t3e
P3i.ippine *i.. o4 1202 re,+ined int+5t +nd e44e5ti0e, +nd s-53 ri/3ts =ere
re5o/ni<ed +s propert6 ri/3ts t3+t t3e 3o.ders 5o-.d 5on0e6 or p+ss 16
des5ent.
11

In t3e inst+nt 5+ses, #" does not +0er or pro0e t3+t its ,inin/ ri/3ts
3+d 1een per4e5ted +nd 5o,p.eted =3en t3e P3i.ippine *i.. o4 1202 =+s sti..
t3e oper+ti0e .+=. #-re.6, it is i,possi1.e 4or #" to s-55ess4-..6 +ssert t3+t
it +5?-ired ,inin/ ri/3ts o0er t3e disp-ted +re+ in +55ord+n5e =it3 t3e s+,e
1i.., sin5e it =+s on.6 in 128> t3+t C, #":s prede5essor-in-interest,
4i.ed its de5.+r+tion o4 .o5+tions +nd its prospe5tin/ per,it +pp.i5+tion in
5o,p.i+n5e =it3 Presidenti+. (e5ree No. >7;. It =+s on 1 '-.6 1285 +nd 10
2
Id. +t 27>.
10
Id.
11
Id. +t 277-278.
+r53 1287 t3+t + Prospe5tin/ Per,it +nd "P 1;;, respe5ti0e.6, =ere iss-ed
to C. Considerin/ t3ese 4+5ts, t3ere is no possi1i.it6 t3+t C or #"
5o-.d 3+0e +5?-ired + per4e5ted ,inin/ 5.+i, -nder t3e +-spi5es o4 t3e
P3i.ippine *i.. o4 1202. D3+te0er ,inin/ ri/3ts C 3+d t3+t it in0+.id.6
tr+ns4erred to #" 5+nnot, 16 +n6 stret53 o4 i,+/in+tion, 1e 5onsidered
A,inin/ ri/3tsB +s 5onte,p.+ted -nder t3e P3i.ippine *i.. o4 1202 +nd
i,,ort+.i<ed in !c%aniel +nd /ol$ Cree; !ining.
#" .i@ens "P 1;; =it3 + 1-i.din/ per,it. #" .i@e=ise e?-+tes its
s-pposed ri/3ts +tt+53ed to t3e exp.or+tion per,it =it3 t3e ri/3ts t3+t +
pri0+te propert6 .+nd o=ner 3+s to s+id .+nd3o.din/. )3is +n+.o/6 3+s no
1+sis in .+=. As e+r.ier dis5-ssed, -nder t3e 12;5, 127; +nd 1287
Constit-tions, n+tion+. =e+.t3, s-53 +s ,iner+. reso-r5es, +re o=ned 16 t3e
#t+te +nd not 16 t3eir dis5o0erer. )3e dis5o0erer or .o5+tor 5+n on.6 de0e.op
+nd -ti.i<e s+id ,iner+.s 4or 3is o=n 1ene4it i4 3e 3+s 5o,p.ied =it3 +.. t3e
re?-ire,ents set 4ort3 16 +pp.i5+1.e .+=s +nd i4 t3e #t+te 3+s 5on4erred on
3i, s-53 ri/3t t3ro-/3 per,its, 5on5essions or +/ree,ents. In ot3er =ords,
=it3o-t t3e i,pri,+t-r o4 t3e #t+te, +n6 ,inin/ +spir+nt does not 3+0e +n6
de4initi0e ri/3t o0er t3e ,iner+. .+nd 1e5+-se, -n.i@e + pri0+te .+nd3o.din/,
,iner+. .+nd is o=ned 16 t3e #t+te, +nd t3e s+,e 5+nnot 1e +.ien+ted to +n6
pri0+te person +s exp.i5it.6 st+ted in #e5tion 2, Arti5.e FI& o4 t3e 1287
Constit-tion:
A.. .+nds o4 p-1.i5 do,+in, =+ters, 0."1/!9% > > > !"# !99 $5-1/
"!5:/!9 /1%$:/<1% !/1 $8"1# 2= 5-1 S5!51. Dit3 t3e ex5eption o4
+/ri5-.t-r+. .+nds, +.. ot3er "!5:/!9 /1%$:/<1% %-!99 "$5 21 !9.1"!51#.
8",p3+ses s-pp.ied.9
G-rt3er, + 5.oser s5r-tin6 o4 t3e deed o4 +ssi/n,ent in 4+0or o4 #"
re0e+.s t3+t C +ssi/ned to t3e 4or,er t3e ri/3ts +nd interests it 3+d in "P
1;;, t3-s:
1. )3+t 4or ON" P"#O 8P1.009 +nd ot3er 0+.-+1.e 5onsider+tion
re5ei0ed 16 t3e A##IGNOR 4ro, t3e A##IGN"", t3e A##IGNOR 3ere16
ASSIGNS, TRANSFERS !"# CONVEYS :"5$ 5-1 ASSIGNEE
8-!5161/ /.7-5% $/ ."51/1%5 5-1 ASSIGNOR 0!= -!61 ." 5-1 !/1!
%.5:!51# ." M$"A!=$, D!6!$ #19 N$/51 !"# C!5119, D!6!$ O/.1"5!9,
.#1"5.?.1# !% E>;9$/!5.$" P1/0.5 N$. &** +nd App.i5+tion 4or + Per,it to
Prospe5t in *-n+=+n, A/-s+n de. #-r respe5ti0e.6. 8",p3+sis s-pp.ied.9
It is e0ident t3+t =3+t C 3+d o0er t3e disp-ted +re+ d-rin/ t3e
+ssi/n,ent =+s +n exp.or+tion per,it. C.e+r.6, t3e ri/3t t3+t #" +5?-ired
=+s .i,ited to exp.or+tion, on.6 1e5+-se C =+s + ,ere 3o.der o4 +n
exp.or+tion per,it. As pre0io-s.6 exp.+ined, #" did not +5?-ire t3e ri/3ts
in3erent in t3e per,it, +s t3e +ssi/n,ent 16 C to #" =+s done in
0io.+tion o4 t3e 5ondition stip-.+ted in t3e per,it, +nd t3e +ssi/n,ent =+s
e44e5ted =it3o-t t3e +ppro0+. o4 t3e proper +-t3orit6 in 5ontr+0ention o4 t3e
pro0ision o4 t3e ,inin/ .+= /o0ernin/ +t t3+t ti,e. In +ddition, t3e per,it
expired on 7 '-.6 122>. It is, t3ere4ore, ?-ite 5.e+r t3+t #" 3+s no ri/3t
o0er t3e +re+.
"0en +ss-,in/ arguen$o t3+t #" o1t+ined t3e ri/3ts +tt+53ed in "P
1;;, s+id ri/3ts 5+nnot 1e 5onsidered +s propert6 ri/3ts prote5ted -nder t3e
4-nd+,ent+. .+=.
An exp.or+tion per,it does not +-to,+ti5+..6 ripen into + ri/3t to
extr+5t +nd -ti.i<e t3e ,iner+.sE ,-53 .ess does it de0e.op into + 0ested ri/3t.
)3e 3o.der o4 +n exp.or+tion per,it on.6 3+s t3e ri/3t to 5ond-5t exp.or+tion
=or@s on t3e +re+ +=+rded. Presidenti+. (e5ree No. >7; de4ined
1>;9$/!5.$" +s A5-1 1>!0."!5.$" !"# ."61%5.7!5.$" $? 9!"#% %:;;$%1# 5$
<$"5!." 6!9:!291 0."1/!9%, 2= #/.99."7, 5/1"<-."7, %-!?5 %."A."7,
5:""19."7, 51%5 ;.55."7 !"# $5-1/ 01!"%, ?$/ 5-1 ;:/;$%1 $? ;/$2."7 5-1
;/1%1"<1 $? 0."1/!9 #1;$%.5% !"# 5-1 1>51"5 5-1/1$?.B "xp.or+tion does
not in5.-de de0e.op,ent +nd exp.oit+tion o4 t3e ,iner+.s 4o-nd.
(e0e.op,ent is de4ined 16 t3e s+,e st+t-te +s t3e %51;% "1<1%%!/.9= 5!A1"
5$ /1!<- !" $/1 2$#= $/ 0."1/!9 #1;$%.5 %$ 5-!5 .5 <!" 21 0."1#+ =3ere+s
exp.oit+tion is de4ined +s A5-1 1>5/!<5.$" !"# :5.9.@!5.$" $? 0."1/!9
#1;$%.5%.B An exp.or+tion per,it is not3in/ ,ore t3+n + ,ere ri/3t
+55orded to its 3o.der to 1e /i0en priorit6 in t3e /o0ern,ent:s 5onsider+tion
in t3e /r+ntin/ o4 t3e ri/3t to de0e.op +nd -ti.i<e t3e ,iner+.s o0er t3e +re+.
An exp.or+tion per,it is ,ere.6 in53o+te, in t3+t t3e 3o.der sti.. 3+s to
5o,p.6 =it3 t3e ter,s +nd 5onditions e,1odied in t3e per,it. )3is is
,+ni4est in t3e .+n/-+/e o4 Presidenti+. (e5ree No. >7;, t3-s:
#e5. 8. x x x )3e ri/3t to exp.oit t3erein s3+.. 1e +=+rded 16 t3e
President -nder s-53 ter,s +nd 5onditions +s re5o,,ended 16 t3e
(ire5tor +nd +ppro0ed 16 t3e #e5ret+r6 Provi$e$, )3+t t3e persons or
5orpor+tions =3o -ndertoo@ prospe5tin/ +nd exp.or+tion o4 s+id +re+ s3+..
1e /i0en priorit6.
In >a Bugal=B?laan -ribal .ssociation+ 5nc. v. 0amos,
12
t3is Co-rt
e,p3+si<ed:
P-rs-+nt to #e5tion 20 o4 RA 72>2, +n exp.or+tion per,it ,ere.6
/r+nts to + ?-+.i4ied person t3e ri/3t to 5ond-5t exp.or+tion 4or +..
,iner+.s in spe5i4ied +re+s. S:<- ! ;1/0.5 #$1% "$5 !0$:"5 5$ !"
!:5-$/.@!5.$" 5$ 1>5/!<5 !"# <!//= $?? 5-1 0."1/!9 /1%$:/<1% 5-!5 0!=
21 #.%<$61/1#. x x x.
P-rs-+nt to #e5tion 2> o4 RA 72>2, +n exp.or+tion per,it /r+ntee
=3o deter,ines t3e 5o,,er5i+. 0i+1i.it6 o4 + ,inin/ +re+ ,+6, =it3in t3e
ter, o4 t3e per,it, 4i.e =it3 t3e G* + de5.+r+tion o4 ,inin/ proCe5t
4e+si1i.it6 +55o,p+nied 16 + =or@ pro/r+, 4or de0e.op,ent. T-1
!;;/$6!9 $? 5-1 0."."7 ;/$B1<5 ?1!%.2.9.5= !"# <$0;9.!"<1 8.5- $5-1/
/1C:./101"5% $? RA D3E( 61%5% ." 5-1 7/!"511 5-1 1><9:%.61 /.7-5 5$ !"
MPSA $/ !"= $5-1/ 0."1/!9 !7/1101"5, $/ 5$ !" FTAA. 8Unders5orin/
o-rs.9
12
>87 P3i.. 75>, 828-822 8200>9.
)3e non-+5?-isition 16 C or #" o4 +n6 0ested ri/3t o0er t3e
disp-ted +re+ is s-pported 16 t3is Co-rt:s r-.in/ in "outheast !in$anao
/ol$ !ining Corporation v. Balite Portal !ining Cooperative
13
:
C.e+r.6 t3en, t3e A;1> M."."7 <!%1 #.# "$5 ."61%5 ;15.5.$"1/
8.5- !"= #1?.".51 /.7-5 5$ 5-1 D.8!98!9 0."1% 8-.<- .5 <$:9# "$8 %15
:; !7!."%5 /1%;$"#1"5 BCMC !"# $5-1/ 0."."7 7/$:;%.
In5ident+..6, it ,-st .i@e=ise 1e pointed o-t t3+t -nder no
5ir5-,st+n5es ,+6 petitioner:s ri/3ts -nder "P No. 1;; 1e re/+rded +s
tot+. +nd +1so.-te. As 5orre5t.6 3e.d 16 t3e Co-rt o4 Appe+.s in its
53+..en/ed de5ision, "P No. 1;; ,ere.6 e0iden5es + pri0i.e/e /r+nted 16
t3e #t+te, =3i53 ,+6 1e +,ended, ,odi4ied or res5inded =3en t3e
n+tion+. interest so re?-ires. x x x. 8Unders5orin/ s-pp.ied.9
Un4ort-n+te.6, #" 5+nnot 1e /i0en priorit6 to de0e.op +nd exp.oit
t3e +re+ 5o0ered 16 "P 1;; 1e5+-se, +s dis5-ssed in t3e +ss+i.ed (e5ision,
"P 1;; expired 16 non-rene=+. on 7 '-.6 122>. A.so, +s +.re+d6 ,entioned,
t3e tr+ns4er o4 t3e s+id per,it to #" =+s =it3o-t .e/+. e44e5t 1e5+-se it
=+s done in 5ontr+0ention o4 Presidenti+. (e5ree No. >7; =3i53 re?-ires
prior +ppro0+. 4ro, t3e proper +-t3orit6. #i,p.6 to.d, #" 3o.ds not3in/
4or it to 1e entit.ed to 5ond-5t ,inin/ +5ti0ities in t3e disp-ted ,iner+. .+nd.
#" =+nts to i,press on t3is Co-rt t3+t its +..e/ed ,inin/ ri/3ts, 16
0irt-e o4 its 1ein/ + tr+ns4eree o4 "P 1;;, is si,i.+r to + Gin+n5i+. +nd
)e53ni5+. Assist+n5e A/ree,ent 8G)AA9 o4 + 4orei/n 5ontr+5tor, =3i53
,erits prote5tion 16 t3e d-e pro5ess 5.+-se o4 t3e Constit-tion. #" 5ites
>a Bugal=B?laan -ribal .ssociation+ 5nc. v. 0amos,
1>
+s 4o..o=s:
)o s+6 t3+t +n G)AA is C-st .i@e + ,ere ti,1er .i5ense or per,it
+nd does not in0o.0e 5ontr+5t or propert6 ri/3ts =3i53 ,erit prote5tion 16
t3e d-e pro5ess 5.+-se o4 t3e Constit-tion, +nd ,+6 t3ere4ore 1e re0o@ed
or 5+n5e..ed in t3e 1.in@ o4 +n e6e, is to +dopt + =e..-ni/3 5on4is5+tor6
st+n5eE +t t3e 0er6 .e+st, it is do=nri/3t dis,issi0e o4 t3e propert6 ri/3ts o4
1-sinesspersons +nd 5orpor+te entities t3+t 3+0e in0est,ents in t3e ,inin/
1;
>22 P3i.. 778, 782 820029.
1>
#-pr+ note 12 +t 825.
ind-str6, =3ose in0est,ents, oper+tions +nd expendit-res do 5ontri1-te to
t3e /ener+. =e.4+re o4 t3e peop.e, t3e 5o44ers o4 /o0ern,ent, +nd t3e
stren/t3 o4 t3e e5ono,6. x x x.
A/+in, t3is +r/-,ent is not ,eritorio-s. #" did not +5?-ire t3e
ri/3ts +tt+53ed to "P 1;;, sin5e t3eir tr+ns4er =+s =it3o-t .e/+. e44e5t.
Gr+ntin/ 4or t3e s+@e o4 +r/-,ent t3+t #" =+s + 0+.id tr+ns4eree o4 t3e
per,it, its ri/3t is not t3+t o4 + ,inin/ 5ontr+5tor. An 1>;9$/!5.$" ;1/0.5
7/!"511 is 0ested =it3 t3e /.7-5 5$ <$"#:<5 1>;9$/!5.$" $"9=, =3i.e +n
FTAA $/ MPSA <$"5/!<5$/ is !:5-$/.@1# 5$ 1>5/!<5 !"# <!//= $?? 5-1
0."1/!9 /1%$:/<1% t3+t ,+6 1e dis5o0ered in t3e +re+.
15
An exp.or+tion
per,it 3o.der sti.. 3+s to 5o,p.6 =it3 t3e ,inin/ proCe5t 4e+si1i.it6 +nd
ot3er re?-ire,ents -nder t3e ,inin/ .+=. It 3+s to o1t+in +ppro0+. o4 s-53
+55o,p.is3ed re?-ire,ents 4ro, t3e +ppropri+te /o0ern,ent +/en5ies.
Upon o1t+inin/ t3is +ppro0+., t3e exp.or+tion per,it 3o.der 3+s to 4i.e +n
+pp.i5+tion 4or +n G)AA or +n P#A +nd 3+0e it +ppro0ed +.so. Unti. t3e
P#A +pp.i5+tion o4 #" is +ppro0ed, it 5+nnot .+=4-..6 5.+i, t3+t it
possesses t3e ri/3ts o4 +n P#A or G)AA 3o.der, t3-s:
x x x prior to t3e iss-+n5e o4 s-53 G)AA or ,iner+. +/ree,ent, t3e
exp.or+tion per,it /r+ntee 8or prospe5ti0e 5ontr+5tor9 5+nnot 6et 1e
dee,ed to 3+0e entered into +n6 5ontr+5t or +/ree,ent =it3 t3e #t+te x x
x.
17
*-t +/+in, #" is not ?-+.i4ied to +pp.6 4or +n G)AA or +n6 ,iner+.
+/ree,ent, 5onsiderin/ t3+t it is not + 3o.der o4 + 0+.id exp.or+tion per,it,
sin5e "P 1;; expired 16 non-rene=+. +nd t3e tr+ns4er to it o4 t3e s+,e
per,it 3+s no .e/+. 0+.-e.
ore i,port+nt.6, +ss-,in/ arguen$o t3+t #" 3+s + 0+.id
exp.or+tion per,it, it 5+nnot +ssert +n6 ,inin/ ri/3t o0er t3e disp-ted +re+,
15
"outheast !in$anao /ol$ !ining Corporation v. Balite Portal !ining Cooperative,
s-pr+ note 1; +t 782-78;.
17
Id.
sin5e t3e #t+te 3+s t+@en o0er t3e ,inin/ oper+tions t3erein, p-rs-+nt to
Pro5.+,+tion No. 227 iss-ed 16 t3e President on 25 No0e,1er 2002. )3e
Co-rt 3+s 5onsistent.6 r-.ed t3+t t3e n+t-re o4 + n+t-r+. reso-r5e exp.or+tion
per,it is +n+.o/o-s to t3+t o4 + .i5ense. In 0epublic v. 0osemoor !ining
an$ %evelopment Corporation, t3is Co-rt +rti5-.+ted:
!i@e ti,1er per,its, 0."."7 1>;9$/!5.$" ;1/0.5% #$ "$5 61%5 ." 5-1
7/!"511 !"= ;1/0!"1"5 $/ .//16$<!291 /.7-5 8.5-." 5-1 ;:/6.18 $? 5-1
"$"-.0;!./01"5 $? <$"5/!<5 !"# #:1 ;/$<1%% <9!:%1% $? 5-1
C$"%5.5:5.$", sin5e t3e #t+te, -nder its +..-en5o,p+ssin/ po.i5e po=er,
,+6 +.ter, ,odi46 or +,end t3e s+,e, in +55ord+n5e =it3 t3e de,+nds o4
t3e /ener+. =e.4+re.
17
8",p3+sis s-pp.ied.9
As + ,ere .i5ense or pri0i.e/e, +n exp.or+tion per,it 5+n 1e 0+.id.6
+,ended 16 t3e President o4 t3e Rep-1.i5 =3en n+tion+. interests s-it+1.6
ne5essit+te. )3e Co-rt instr-5ted t3-s:
)i,1er .i5enses, per,its +nd .i5ense +/ree,ents +re t3e prin5ip+.
instr-,ents 16 =3i53 t3e #t+te re/-.+tes t3e -ti.i<+tion +nd disposition o4
4orest reso-r5es to t3e end t3+t t3e p-1.i5 =e.4+re is pro,oted. x x x )3e6
,+6 1e 0+.id.6 +,ended, ,odi4ied, rep.+5ed or res5inded 16 t3e C3ie4
"xe5-ti0e =3en n+tion+. interests so re?-ire.
18

Re5o/ni<in/ t3e i,port+n5e o4 t3e 5o-ntr6:s n+t-r+. reso-r5es, not
on.6 4or n+tion+. e5ono,i5 de0e.op,ent, 1-t +.so 4or its se5-rit6 +nd
n+tion+. de4ense, #e5tion 5 o4 Rep-1.i5 A5t No. 72>2 e,po=ers t3e
President, =3en t3e n+tion+. interest so re?-ires, to est+1.is3 ,iner+.
reser0+tions =3ere ,inin/ oper+tions s3+.. 1e -ndert+@en dire5t.6 16 t3e
#t+te or t3ro-/3 + 5ontr+5tor, vi<:
#"C 5. iner+. Reser0+tions. H D3en t3e n+tion+. interest so
re?-ires, s-53 +s =3en t3ere is + need to preser0e str+te/i5 r+= ,+teri+.s
4or ind-stries 5riti5+. to n+tion+. de0e.op,ent, or 5ert+in ,iner+.s 4or
s5ienti4i5, 5-.t-r+. or e5o.o/i5+. 0+.-e, t3e President ,+6 est+1.is3 ,iner+.
reser0+tions -pon t3e re5o,,end+tion o4 t3e (ire5tor t3ro-/3 t3e
17
G.R. No. 1>2227, ;0 +r53 200>, >27 #CRA 517, 5;0.
18
Id.
#e5ret+r6. M."."7 $;1/!5.$"% ." 1>.%5."7 0."1/!9 /1%1/6!5.$"% !"#
%:<- $5-1/ /1%1/6!5.$"% !% 0!= 5-1/1!?51/ 21 1%5!29.%-1#, %-!99 21
:"#1/5!A1" 2= 5-1 D1;!/501"5 $/ 5-/$:7- ! <$"5/!<5$/ x x x.
8",p3+sis s-pp.ied.9
(-e to t3e pressin/ 5on5erns in t3e (i=+.=+. Go.d R-s3 Are+ 1ro-/3t
+1o-t 16 -nre/-.+ted s,+.. to ,edi-,-s5+.e ,inin/ oper+tions 5+-sin/
e5o.o/i5+., 3e+.t3 +nd pe+5e +nd order pro1.e,s, t3e President, on 25
No0e,1er 2002, iss-ed Pro5.+,+tion No. 227, =3i53 de5.+red t3e +re+ +s +
,iner+. reser0+tion +nd +s +n en0iron,ent+..6 5riti5+. +re+. )3is exe5-ti0e
4i+t =+s +i,ed +t pre0entin/ t3e 4-rt3er dissip+tion o4 t3e n+t-r+.
en0iron,ent +nd r+tion+.i<in/ t3e ,inin/ oper+tions in t3e +re+ in order to
+tt+in +n order.6 1+.+n5e 1et=een so5io-e5ono,i5 /ro=t3 +nd en0iron,ent+.
prote5tion. )3e +re+ 1ein/ + ,iner+. reser0+tion, t3e "xe5-ti0e (ep+rt,ent
3+s 4-.. 5ontro. o0er it p-rs-+nt to #e5tion 5 o4 Rep-1.i5 A5t No. 72>2. It
5+n eit3er dire5t.6 -ndert+@e t3e exp.or+tion, de0e.op,ent +nd -ti.i<+tion o4
t3e ,iner+.s 4o-nd t3erein, or it 5+n enter into +/ree,ents =it3 ?-+.i4ied
entities. #in5e t3e "xe5-ti0e (ep+rt,ent no= 3+s 5ontro. o0er t3e
exp.or+tion, de0e.op,ent +nd -ti.i<+tion o4 t3e reso-r5es in t3e disp-ted
+re+, #":s exp.or+tion per,it, +ss-,in/ t3+t it is sti.. 0+.id, 3+s 1een
e44e5ti0e.6 =it3dr+=n. )3e exer5ise o4 s-53 po=er t3ro-/3 Pro5.+,+tion
No. 227 is in +55ord =it3 @ura regalia+ =3ere t3e #t+te exer5ises its
so0erei/n po=er +s o=ner o4 .+nds o4 t3e p-1.i5 do,+in +nd t3e ,iner+.
deposits 4o-nd =it3in. )3-s, Arti5.e FII, #e5tion 2 o4 t3e 1287 Constit-tion
e,p3+si<es:
#"C. 2. A.. .+nds o4 t3e p-1.i5 do,+in, =+ter, ,iner+.s, 5o+.,
petro.e-,, +nd ot3er ,iner+. oi.s, +.. 4or5es o4 potenti+. ener/6, 4is3eries,
4orests or ti,1er, =i.d.i4e, 4.or+ +nd 4+-n+, +nd ot3er n+t-r+. reso-r5es +re
o=ned 16 t3e #t+te. Dit3 t3e ex5eption o4 +/ri5-.t-r+. .+nds, +.. ot3er
n+t-r+. reso-r5es s3+.. not 1e +.ien+ted. T-1 1>;9$/!5.$", #1619$;01"5,
!"# :5.9.@!5.$" $? "!5:/!9 /1%$:/<1% %-!99 21 :"#1/ 5-1 ?:99 <$"5/$9 !"#
%:;1/6.%.$" $? 5-1 S5!51. T-1 S5!51 0!= #./1<59= :"#1/5!A1 %:<-
!<5.6.5.1%, $/ .5 0!= 1"51/ ."5$ <$-;/$#:<5.$", B$."5 61"5:/1, $/
;/$#:<5-%-!/."7 !7/1101"5% 8.5- F.9.;."$ <.5.@1"%, $/ <$/;$/!5.$"% $/
!%%$<.!5.$"% !5 91!%5 %.>5= ;1/ <1"5:0 $? 8-$%1 <!;.5!9 .% $8"1# 2=
%:<- <.5.@1"%. 8",p3+sis s-pp.ied.9
G-rt3er,ore, s+id pro5.+,+tion 5+nnot 1e deno-n5ed +s o44ensi0e to t3e
4-nd+,ent+. .+= 1e5+-se t3e #t+te is s+n5tioned to do so in t3e exer5ise o4
its po.i5e po=er.
12
)3e iss-es on 3e+.t3 +nd pe+5e +nd order, +s =e.. t3e
de5+den5e o4 t3e 4orest reso-r5es 1ro-/3t +1o-t 16 -nre/-.+ted ,inin/ in
t3e +re+, +re ,+tters o4 n+tion+. interest. )3e de5.+r+tion o4 t3e C3ie4
"xe5-ti0e ,+@in/ t3e +re+ + ,iner+. reser0+tion, t3ere4ore, is s+n5tioned 16
#e5tion 5 o4 Rep-1.i5 A5t No. 72>2.
T-1 A%%.7"01"5 $? EP N$. &** 2= MMC
." F!6$/ $? SEM V.$9!51# S1<5.$" 3D $?
P/1%.#1"5.!9 D1</11 N$. E)* !"# 5-1
T1/0% !"# C$"#.5.$"% S15 F$/5- ." 5-1
P1/0.5
#" 5.+i,s t3+t t3e +ppro0+. re?-ire,ent -nder #e5tion 27 o4
Presidenti+. (e5ree No. >7; is not +pp.i5+1.e to t3is 5+se, 1e5+-se C
neit3er +pp.ied 4or nor =+s /r+nted + ,inin/ .e+se 5ontr+5t. )3e s+id
pro0ision st+tes:
#"C. 27. Assignment of Mining Rights. H A 0."."7 91!%1
<$"5/!<5 $/ !"= ."51/1%5 5-1/1." %-!99 "$5 21 5/!"%?1//1#, !%%.7"1#, $/
%:291!%1# 8.5-$:5 5-1 ;/.$/ !;;/$6!9 $? 5-1 S1</15!/=F Provi$e$, t3+t
s-53 tr+ns4er, +ssi/n,ent or s-1.e+se ,+6 1e ,+de on.6 to + ?-+.i4ied
person possessin/ t3e reso-r5es +nd 5+p+1i.it6 to 5ontin-e t3e ,inin/
oper+tions o4 t3e .essee +nd t3+t t3e +ssi/nor 3+s 5o,p.ied =it3 +.. t3e
o1.i/+tions o4 t3e .e+se: Provi$e$, further, )3+t s-53 tr+ns4er or
+ssi/n,ent s3+.. 1e d-.6 re/istered =it3 t3e o44i5e o4 t3e ,inin/ re5order
5on5erned. 8",p3+sis s-pp.ied.9
"xp.or+tion Per,it 1;; =+s iss-ed in 4+0or o4 C on 10 +r53
1287, =3en Presidenti+. (e5ree No. >7; =+s sti.. t3e /o0ernin/ .+=.
Presidenti+. (e5ree No. >7; pert+ins to t3e o.d s6ste, o4 exp.or+tion,
12
Id +t 5;1.
de0e.op,ent +nd -ti.i<+tion o4 n+t-r+. reso-r5es t3ro-/3 A.i5ense,
5on5ession or .e+se.B
20
P-rs-+nt to t3is .+=, + ,inin/ .e+se 5ontr+5t 5on4ers on t3e .essee or
3is s-55essors t3e ri/3t to extr+5t, to re,o0e, pro5ess +nd -ti.i<e t3e ,iner+.
deposits 4o-nd on or -nderne+t3 t3e s-r4+5e o4 3is ,inin/ 5.+i,s 5o0ered 16
t3e .e+se. )3e .essee ,+6 +.so enter into + ser0i5e 5ontr+5t 4or t3e
1>;9$/!5.$", de0e.op,ent +nd exp.oit+tion o4 t3e ,iner+.s 4ro, t3e .+nds
5o0ered 16 3is .e+se, to =it:

#"C. >>. A 0."."7 91!%1 <$"5/!<5 s3+.. /r+nt to t3e .essee, 3is
3eirs, s-55essors, +nd +ssi/ns t3e ri/3t to extr+5t +.. ,iner+. deposits
4o-nd on or -nderne+t3 t3e s-r4+5e o4 3is ,inin/ 5.+i,s 5o0ered 16 t3e
.e+se, 5ontin-ed 0erti5+..6 do=n=+rdE to re,o0e, pro5ess, +nd ot3er=ise
-ti.i<e t3e ,iner+. deposits 4or 3is o=n 1ene4itE +nd to -se t3e .+nds
5o0ered 16 t3e .e+se 4or t3e p-rpose or p-rposes spe5i4ied t3erein x x x
)3+t ! 91%%11 0!= $" -.% $8" $/ 5-/$:7- 5-1 G$61/"01"5, 1"51/ ."5$ !
%1/6.<1 <$"5/!<5G ?$/ 5-1 1>;9$/!5.$", de0e.op,ent +nd exp.oit+tion o4
3is 5.+i,s +nd t3e pro5essin/ +nd ,+r@etin/ o4 t3e prod-5t t3ereo4, s-1Ce5t
to t3e r-.es +nd re/-.+tions t3+t s3+.. 1e pro,-./+ted 16 t3e (ire5tor, =it3
t3e +ppro0+. o4 t3e #e5ret+r6 x x x. 8",p3+ses s-pp.ied.9
In ot3er =ords, t3e .essee:s interests +re not on.6 .i,ited to t3e
extr+5tion or -ti.i<+tion o4 t3e ,iner+.s in t3e 5ontr+5t +re+, 1-t +.so to
in5.-de t3e ri/3t to exp.ore +nd de0e.op t3e s+,e. )3is ri/3t to exp.ore t3e
,inin/ 5.+i, or t3e 5ontr+5t +re+ is deri0ed 4ro, t3e exp.or+tion per,it d-.6
iss-ed 16 t3e proper +-t3orit6. An exp.or+tion per,it is, t3-s, 5o0ered 16
t3e ter, Aan other interest therein.B #e5tion 27 is entit.ed, AAssignment of
Mining Rights.B )3is +.one /i0es + 3int t3+t 1e4ore ,inin/ ri/3ts -- n+,e.6,
t3e ri/3ts to exp.ore, de0e.op +nd -ti.i<e -- +re tr+ns4erred or +ssi/ned, prior
+ppro0+. ,-st 1e o1t+ined 4ro, t3e ("NR #e5ret+r6. An exp.or+tion per,it,
t3-s, 5+nnot 1e +ssi/ned =it3o-t t3e i,pri,+t-r o4 t3e #e5ret+r6 o4 t3e
("NR.
20
!iners .ssociation of the Philippines+ 5nc. v. Aactoran+ Jr., ;10 P3i.. 11;, 1;0 812259.
It is instr-5ti0e to note t3+t -nder #e5tion 1; o4 Presidenti+. (e5ree
No. >7;, t3e prospe5tin/ +nd exp.or+tion o4 ,iner+.s in /o0ern,ent
reser0+tions, s-53 +s 4orest reser0+tions, +re pro3i1ited, ex5ept =it3 t3e
per,ission o4 t3e /o0ern,ent +/en56 5on5erned. It is t3e /o0ern,ent
+/en56 5on5erned t3+t 3+s t3e prero/+ti0e to 5ond-5t prospe5tin/,
exp.or+tion +nd exp.oit+tion o4 s-53 reser0ed .+nds.
21
It is on.6 in inst+n5es
=3erein s+id /o0ern,ent +/en56, in t3is 5+se t3e *-re+- o4 ines, 5+nnot
-ndert+@e s+id ,inin/ oper+tions t3+t ?-+.i4ied persons ,+6 1e +..o=ed 16
t3e /o0ern,ent to -ndert+@e s-53 oper+tions. P&:C=E%C v. Beneracion+
Jr.
))
o-t.ines t3e 4i0e re?-ire,ents 4or +5?-irin/ ,inin/ ri/3ts in reser0ed
.+nds -nder Presidenti+. (e5ree No. >7;: 819 + prospe5tin/ per,it 4ro, t3e
+/en56 t3+t 3+s C-risdi5tion o0er t3e .+ndE 829 +n exp.or+tion per,it 4ro, t3e
*-re+- o4 ines +nd Geo-#5ien5es 8*G#9E 8;9 i4 t3e exp.or+tion re0e+.s
t3e presen5e o4 5o,,er5i+. deposit, +pp.i5+tion to *G# 16 t3e per,it
3o.der 4or t3e ex5.-sion o4 t3e +re+ 4ro, t3e reser0+tionE 8>9 + /r+nt 16 t3e
President o4 t3e +pp.i5+tion to ex5.-de t3e +re+ 4ro, t3e reser0+tionE +nd 859
+ ,inin/ +/ree,ent 8.e+se, .i5ense or 5on5ession9 +ppro0ed 16 t3e ("NR
#e5ret+r6.
$ere, C ,et t3e 4irst +nd se5ond re?-ire,ents +nd o1t+ined +n
exp.or+tion per,it o0er t3e disp-ted 4orest reser0ed .+nd. A.t3o-/3 C
sti.. 3+s to pro0e to t3e /o0ern,ent t3+t it is ?-+.i4ied to de0e.op +nd -ti.i<e
t3e s-1Ce5t ,iner+. .+nd, +s it 3+s 6et to /o t3ro-/3 t3e re,+inin/ pro5ess
1e4ore it 5+n se5-re + .e+se +/ree,ent, nonet3e.ess, it is 1o-nd to 4o..o=
#e5tion 27 o4 Presidenti+. (e5ree No. >7;. )3e .o/i5 is not 3+rd to dis5ern.
I4 + .e+se 3o.der, =3o 3+s +.re+d6 de,onstr+ted to t3e /o0ern,ent 3is
5+p+5it6 +nd ?-+.i4i5+tions to 4-rt3er de0e.op +nd -ti.i<e t3e ,iner+.s =it3in
21
P&:C=Energ %evelopment Corporation (P&:C=E%C) v. Beneracion+ Jr.+ G.R. No.
122820, ;0 No0e,1er 2007, 502 #CRA 2;, 107.
22
Id. +t 107-110.
t3e 5ontr+5t +re+, is pro3i1ited 4ro, tr+ns4errin/ 3is ,inin/ ri/3ts 8ri/3ts to
exp.ore, de0e.op +nd -ti.i<e9, =it3 ,ore re+son =i.. t3is pros5ription +pp.6
=it3 extr+ 4or5e to + ,ere exp.or+tion per,it 3o.der =3o is 6et to ex3i1it 3is
?-+.i4i5+tions in 5ond-5tin/ ,inin/ oper+tions. )3e r+tion+.e 4or t3e
+ppro0+. re?-ire,ent -nder #e5tion 27 o4 Presidenti+. (e5ree No. >7; is not
3+rd to see. "xp.or+tion per,its +re stri5t.6 /r+nted to entities or indi0id-+.s
possessin/ t3e reso-r5es +nd 5+p+1i.it6 to -ndert+@e ,inin/ oper+tions.
inin/ ind-str6 is + ,+Cor s-pport o4 t3e n+tion+. e5ono,6 +nd t3e
5ontin-o-s +nd intensi4ied exp.or+tion, de0e.op,ent +nd =ise -ti.i<+tion o4
,inin/ reso-r5es is 0it+. 4or n+tion+. de0e.op,ent. Gor t3is re+son,
Presidenti+. (e5ree No. >7; ,+@es it i,per+ti0e t3+t in +=+rdin/ ,inin/
oper+tions, on.6 persons possessin/ t3e 4in+n5i+. reso-r5es +nd te53ni5+.
s@i.. 4or ,odern exp.or+tor6 +nd de0e.op,ent te53ni?-es +re en5o-r+/ed to
-ndert+@e t3e exp.or+tion, de0e.op,ent +nd -ti.i<+tion o4 t3e 5o-ntr6:s
n+t-r+. reso-r5es. )3e pre+,1.e o4 Presidenti+. (e5ree No. >7; pro0ides
t3-s:
D$"R"A#, e44e5ti0e +nd 5ontin-o-s ,inin/ oper+tions re?-ire
5onsider+1.e o-t.+6s o4 5+pit+. +nd reso-r5es, +nd ,+@e it i,per+ti0e t3+t
persons possessin/ t3e 4in+n5i+. reso-r5es +nd te53ni5+. s@i..s 4or ,odern
exp.or+tor6 +nd de0e.op,ent te53ni?-es 1e en5o-r+/ed to -ndert+@e t3e
exp.or+tion, de0e.op,ent +nd exp.oit+tion o4 o-r ,iner+. reso-r5esE
)3e Co-rt 3+s s+id t3+t + Apre+,1.eB is t3e @e6 to -nderst+ndin/ t3e st+t-te,
=ritten to open t3e ,inds o4 t3e ,+@ers to t3e ,is53ie4s t3+t +re to 1e
re,edied, +nd t3e p-rposes t3+t +re to 1e +55o,p.is3ed, 16 t3e pro0isions o4
t3e st+t-te.
2;
As s-53, =3en t3e st+t-te itse.4 is +,1i/-o-s +nd di44i5-.t to
interpret, t3e pre+,1.e ,+6 1e resorted to +s + @e6 to -nderst+ndin/ t3e
st+t-te.
2;
Estra$a v. Escritor, >55 P3i.. >11, 572 8200;9.
Ind-1it+1.6, =it3o-t t3e s5r-tin6 16 t3e /o0ern,ent +/en56 +s to t3e
?-+.i4i5+tions o4 t3e =o-.d-1e tr+ns4eree o4 +n exp.or+tion per,it, t3e s+,e
,+6 4+.. into t3e 3+nds o4 non-?-+.i4ied entities, =3i53 =o-.d 1e 5o-nter-
prod-5ti0e to t3e de0e.op,ent o4 t3e ,inin/ ind-str6. It 5+nnot 1e
o0ere,p3+si<ed t3+t t3e exp.or+tion, de0e.op,ent +nd -ti.i<+tion o4 t3e
5o-ntr6:s n+t-r+. reso-r5es +re ,+tters 0it+. to t3e p-1.i5 interest +nd t3e
/ener+. =e.4+reE 3en5e, t3eir re/-.+tion ,-st 1e o4 -t,ost 5on5ern to t3e
/o0ern,ent, sin5e t3ese n+t-r+. reso-r5es +re not on.6 5riti5+. to t3e n+tion:s
se5-rit6, 1-t t3e6 +.so ens-re t3e 5o-ntr6:s s-r0i0+. +s + 0i+1.e +nd so0erei/n
rep-1.i5.
2>

)3e +ppro0+. re?-ire,ent o4 t3e #e5ret+r6 o4 t3e ("NR 4or t3e
+ssi/n,ent o4 exp.or+tion per,its is 1o.stered 16 #e5tion 25 o4 Rep-1.i5 A5t
No. 72>2 8ot3er=ise @no=n +s t3e P3i.ippine inin/ A5t o4 12259, =3i53
pro0ides t3+t:
#e5. 25. -ransfer or .ssignment. H An exp.or+tion per,it ,+6 1e
tr+ns4erred or +ssi/ned to + ?-+.i4ied person s-1Ce5t to t3e +ppro0+. o4 t3e
#e5ret+r6 -pon t3e re5o,,end+tion o4 t3e (ire5tor.
#" 4-rt3er posits t3+t #e5tion 27 o4 Presidenti+. (e5ree No. >7;,
=3i53 re?-ires t3e prior +ppro0+. o4 t3e ("NR =3en t3ere is + tr+ns4er o4
,inin/ ri/3ts, 5+nnot 1e +pp.ied to t3e +ssi/n,ent o4 "P 1;; exe5-ted 16
C in 4+0or o4 #" 1e5+-se d-rin/ t3e exe5-tion o4 t3e (eed o4
Assi/n,ent on 17 Ge1r-+r6 122>, "xe5-ti0e Order No. 272
25
1e5+,e t3e
/o0ernin/ st+t-te, in+s,-53 +s t3e .+tter +1ro/+ted t3e o.d ,inin/ s6ste, --
i.e., .i5ense, 5on5ession or .e+se -- =3i53 =+s espo-sed 16 t3e 4or,er.
)3is 5ontention is not =e.. t+@en. D3i.e Presidenti+. (e5ree No. >7;
3+s +.re+d6 1een repe+.ed 16 "xe5-ti0e Order No. 272, t3e +d,inistr+ti0e
2>
!iners .ssociation of the Philippines+ 5nc. v. Aactoran+ Jr., ;10 P3i.. 11;, 1;0-1;1 812259.
25
Pro,-./+ted on 25 '-.6 1287.
+spe5t o4 t3e 4or,er .+= nonet3e.ess re,+ins +pp.i5+1.e. $en5e, t3e tr+ns4er
or +ssi/n,ent o4 exp.or+tion per,its sti.. needs t3e prior +ppro0+. o4 t3e
#e5ret+r6 o4 t3e ("NR. As r-.ed in !iners .ssociation of the Philippines+
5nc. v. Aactoran+ Jr.
27
:
Presidenti+. (e5ree No. >7;, +s +,ended, pert+ins to t3e o.d s6ste, o4
exp.or+tion, de0e.op,ent +nd -ti.i<+tion o4 n+t-r+. reso-r5es t3ro-/3
A.i5ense, 5on5ession or .e+seB =3i53, 3o=e0er, 3+s 1een dis+..o=ed 16
Arti5.e FII, #e5tion 2 o4 t3e 1287 Constit-tion. *6 0irt-e o4 t3e s+id
5onstit-tion+. ,+nd+te +nd its i,p.e,entin/ .+=, "xe5-ti0e Order No.
272, =3i53 s-perseded "xe5-ti0e Order No. 211, t3e pro0isions de+.in/ on
A.i5ense, 5on5ession, or .e+seB o4 ,iner+. reso-r5es -nder Presidenti+.
(e5ree No. >7;, +s +,ended, +nd ot3er existin/ ,inin/ .+=s +re dee,ed
repe+.ed +nd, t3ere4ore, 5e+sed to oper+te +s t3e /o0ernin/ .+=. In ot3er
=ords, ." !99 $5-1/ !/1!% $? !#0.".%5/!5.$" !"# 0!"!7101"5 $?
0."1/!9 9!"#%, 5-1 ;/$6.%.$"% $? P/1%.#1"5.!9 D1</11 N$. E)*, !%
!01"#1#, !"# $5-1/ 1>.%5."7 0."."7 9!8%, %5.99 7$61/". 8",p3+sis
s-pp.ied.9
Not on.6 did t3e +ssi/n,ent o4 "P 1;; to #" 0io.+te #e5tion 27 o4
Presidenti+. (e5ree No. >7;, it .i@e=ise tr+ns/ressed one o4 t3e 5onditions
stip-.+ted in t3e /r+nt o4 t3e s+id per,it. )3e 4o..o=in/ ter,s +nd
5onditions +tt+53ed to "P 1;; +re +s 4o..o=s:
27
1. )3+t t3e per,ittee s3+.. +1ide 16 t3e =or@ pro/r+, s-1,itted
=it3 t3e +pp.i5+tion or st+te,ents ,+de .+ter in s-pport t3ereo4, +nd =3i53
s3+.. 1e 5onsidered +s 5onditions +nd essenti+. p+rts o4 t3is per,itE
2. )3+t per,ittee s3+.. ,+int+in + 5o,p.ete re5ord o4 +.. +5ti0ities
+nd +55o-ntin/ o4 +.. expendit-res in5-rred t3erein s-1Ce5t to periodi5
inspe5tion +nd 0eri4i5+tion +t re+son+1.e inter0+.s 16 t3e *-re+- o4 ines
+t t3e expense o4 t3e +pp.i5+ntE
;. )3+t t3e per,ittee s3+.. s-1,it to t3e (ire5tor o4 ines =it3in
15 d+6s +4ter t3e end o4 e+53 5+.end+r ?-+rter + report -nder o+t3 o4 + 4-..
+nd 5o,p.ete st+te,ent o4 t3e =or@ done in t3e +re+ 5o0ered 16 t3e
per,itE
>. )3+t t3e ter, o4 t3is per,it s3+.. 1e 4or t=o 829 6e+rs to 1e
e44e5ti0e 4ro, t3is d+te, rene=+1.e 4or t3e s+,e period +t t3e dis5retion o4
t3e (ire5tor o4 ines +nd -pon re?-est o4 t3e +pp.i5+ntE
27
#-pr+ note 2> +t 1;0.
27
Re5ords, &o.. 2, pp. 8>-85.
5. )3+t t3e (ire5tor o4 ines ,+6 +t +n6 ti,e 5+n5e. t3is per,it
4or 0io.+tion o4 its pro0ision or in 5+se o4 tro-1.e or 1re+53 o4 pe+5e
+risin/ in t3e +re+ s-1Ce5t 3ereo4 16 re+son o4 5on4.i5tin/ interests =it3o-t
+n6 responsi1i.it6 on t3e p+rt o4 t3e /o0ern,ent +s to expendit-res 4or
exp.or+tion t3+t ,i/3t 3+0e 1een in5-rred, or +s to ot3er d+,+/es t3+t
,i/3t 3+0e 1een s-44ered 16 t3e per,itteeE
7. )3+t t3is per,it s3+.. 1e 4or t3e 1><9:%.61 :%1 !"# 21"1?.5 $?
5-1 ;1/0.5511 $/ -.% #:9= !:5-$/.@1# !71"5% +nd s3+.. 1e -sed 4or
,iner+. exp.or+tion p-rposes on.6 +nd 4or no ot3er p-rpose.
It ,-st 1e noted t3+t -nder #e5tion 20
28
o4 Presidenti+. (e5ree No.
>7;, =3i53 =+s t3e +pp.i5+1.e st+t-te d-rin/ t3e iss-+n5e o4 "P 1;;, t3e
("NR #e5ret+r6, t3ro-/3 t3e (ire5tor o4 t3e *-re+- o4 ines +nd
Geos5ien5es, =+s 53+r/ed =it3 5+rr6in/ o-t t3e s+id .+=. A.so, -nder
Co,,on=e+.t3 A5t No. 1;7, +.so @no=n +s AAn A5t Cre+tin/ t3e *-re+- o4
ines,B =3i53 =+s +ppro0ed on 7 No0e,1er 12;7, t3e (ire5tor o4 ines
3+d t3e dire5t 53+r/e o4 t3e +d,inistr+tion o4 t3e ,iner+. .+nds +nd ,iner+.sE
+nd o4 t3e s-r0e6, 5.+ssi4i5+tion, .e+se or +n6 ot3er 4or, o4 5on5ession or
disposition t3ereo4 -nder t3e inin/ A5t.
22
)3is po=er o4 +d,inistr+tion
in5.-ded t3e po=er to pres5ri1e ter,s +nd 5onditions in /r+ntin/ exp.or+tion
per,its to ?-+.i4ied entities.
)3-s, in t3e /r+nt o4 "P 1;; in 4+0or o4 t3e C, t3e (ire5tor o4 t3e
*G +5ted =it3in 3is po=er in .+6in/ do=n t3e ter,s +nd 5onditions
+ttend+nt t3ereto. C +nd #" did not disp-te t3e re+son+1.eness o4 s+id
5onditions.
I-ite 5onspi5-o-s is t3e 4+5t t3+t neit3er C nor #" denied t3+t
t3e6 =ere -n+=+re o4 t3e ter,s +nd 5onditions +tt+53ed to "P 1;;. C
+nd #" did not present +n6 e0iden5e t3+t t3e6 o1Ce5ted to t3ese 5onditions.
Ind-1it+1.6, C =3o.e3e+rted.6 +55epted t3ese ter,s +nd 5onditions,
28
"xe5-ti0e O44i5er. - )3e #e5ret+r6, t3ro-/3 t3e (ire5tor, s3+.. 1e t3e "xe5-ti0e O44i5er
53+r/ed =it3 5+rr6in/ o-t t3e pro0isions o4 t3is (e5ree. x x x.
22
#e5tion ;, Co,,on=e+.t3 A5t No. 1;7.
=3i53 4or,ed p+rt o4 t3e /r+nt o4 t3e per,it. C +/reed to +1ide 16 t3ese
5onditions. It ,-st 1e +55ent-+ted t3+t + p+rt6 to + 5ontr+5t 5+nnot den6 its
0+.idit6, =it3o-t o-tr+/e to one:s sense o4 C-sti5e +nd 4+irness, +4ter enCo6in/
its 1ene4its.
;0
D3ere p+rties 3+0e entered into + =e..-de4ined 5ontr+5t-+.
re.+tions3ip, it is i,per+ti0e t3+t t3e6 s3o-.d 3onor +nd +d3ere to t3eir ri/3ts
+nd o1.i/+tions +s st+ted in t3eir 5ontr+5ts, 1e5+-se o1.i/+tions +risin/ 4ro,
t3ese 3+0e t3e 4or5e o4 .+= 1et=een t3e 5ontr+5tin/ p+rties +nd s3o-.d 1e
5o,p.ied =it3 in /ood 4+it3.
;1
Condition N-,1er 7 5+te/ori5+..6 st+tes t3+t
t3e per,it s3+.. 1e 4or t3e ex5.-si0e -se +nd 1ene4it o4 C or its d-.6
+-t3ori<ed +/ents. D3i.e it ,+6 1e tr-e t3+t #", t3e +ssi/nee o4 "P 1;;, is
+ 100J s-1sidi+r6 5orpor+tion o4 C, re5ords +re 1ere4t o4 +n6 e0iden5e
s3o=in/ t3+t t3e 4or,er is t3e d-.6 +-t3ori<ed +/ent o4 t3e .+tter. )3is Co-rt
5+nnot 5ondone s-53 -tter disre/+rd on t3e p+rt o4 C to 3onor its
o1.i/+tions -nder t3e per,it. Undo-1ted.6, 3+0in/ 0io.+ted t3is 5ondition,
t3e +ssi/n,ent o4 "P 1;; to #" is 0oid +nd 3+s no .e/+. e44e5t.
)o 1oot, #" s?-+ndered =3+te0er ri/3ts it +ss-,ed it 3+d -nder "P
1;;. On 7 '-.6 122;, "P 1;; =+s extended 4or t=e.0e ,ore ,ont3s or -nti.
7 '-.6 122>. C or #", 3o=e0er, ne0er rene=ed "P 1;; eit3er prior to
or +4ter its expir+tion. )3-s, "P 1;; expired 16 non-rene=+. on 7 '-.6 122>.
Dit3 t3e expir+tion o4 "P 1;; on 7 '-.6 122>, C .ost +n6 ri/3t to t3e
(i=+.=+. Go.d R-s3 Are+.
T-1 A%%!.91# D1<.%.$" R1%$961# F!<5% !"#
I%%:1% T-!5 T/!"%;./1# !?51/ 5-1
P/$0:97!5.$" $? Apex Mining Co., Inc. v.
Garcia
;0
Premiere %evelopment Ban; v. Court of .ppeals, >71 P3i.. 70>, 717 8200>9.
;1
Id.
#" +sserts t3+t t3e 2; '-ne 2007 (e5ision re0ersed t3e 17 '-.6 1221
(e5ision o4 t3e Co-rt en banc entit.ed, A.pex !ining Co.+ 5nc. v. /arcia.B
;2
)3e +ss+i.ed (e5ision (I( NO) o0ert-rn t3e 17 '-.6 1221 (e5ision
in .pex !ining Co.+ 5nc. v. /arcia.

It ,-st 1e pointed o-t t3+t =3+t .pex !ining Co.+ 5nc. v. /arcia
reso.0ed =+s t3e iss-e o4 8-.<-, 215811" A;1> !"# MMC, !6!.91# .5%19?
$? 5-1 ;/$;1/ ;/$<1#:/1 ." !<C:./."7 5-1 /.7-5 5$ ;/$%;1<5 !"# 5$
1>;9$/1 in t3e A/-s+n-(+0+o-#-ri/+o Gorest Reser0e. Apex re/istered its
(e5.+r+tions o4 !o5+tion 8(O!9 =it3 t3e t3en *G#, =3i.e C =+s
/r+nted + per,it to prospe5t 16 t3e *-re+- o4 Gorest (e0e.op,ent 8*G(9
+nd =+s s-1se?-ent.6 /r+nted +n exp.or+tion per,it 16 t3e *G#. )+@in/
into 5onsider+tion Presidenti+. (e5ree No. >7;, =3i53 pro0ides t3+t A,inin/
ri/3ts =it3in 4orest reser0+tion 5+n 1e +5?-ired 16 initi+..6 +pp.6in/ 4or +
per,it to prospe5t =it3 t3e *G( +nd s-1se?-ent.6 4or + per,it to exp.ore
=it3 t3e *G#,B t3e Co-rt t3erein r-.ed t3+t C +0+i.ed itse.4 o4 t3e
proper pro5ed-re to 0+.id.6 oper+te =it3in t3e 4orest reser0e or reser0+tion.
D3i.e it is tr-e t3+t .pex !ining Co.+ 5nc. v. /arcia sett.ed t3e iss-e
o4 =3i53 1et=een Apex +nd C =+s .e/+..6 entit.ed to exp.ore in t3e
disp-ted +re+, s-53 ri/3ts, t3o-/3, =ere extin/-is3ed 16 %:2%1C:1"5 161"5%
t3+t tr+nspired +4ter t3e de5ision =+s pro,-./+ted. )3ese s-1se?-ent
e0ents, =3i53 =ere not +ttend+nt in .pex !ining Co.+ 5nc. v. /arcia
;;
d+ted
17 '-.6 1221, +re t3e 4o..o=in/:
819 t3e expir+tion o4 "P 1;; 16 non-rene=+. on 7 '-.6 122>E
;2
#-pr+ note 1 +t 28>.
;;
#-pr+ note 1 +t 28;-28>.
829 t3e tr+ns4erK+ssi/n,ent o4 "P 1;; to #" on 17 Ge1r-+r6 122>
=3i53 =+s done in 0io.+tion to t3e 5ondition o4 "P 1;;
pros5ri1in/ its tr+ns4erE
8;9 t3e tr+ns4erK+ssi/n,ent o4 "P 1;; to #" is =it3o-t .e/+. e44e5t
4or 0io.+tin/ P( >7; =3i53 ,+nd+tes t3+t t3e +ssi/n,ent o4
,inin/ ri/3ts ,-st 1e =it3 t3e prior +ppro0+. o4 t3e #e5ret+r6 o4
t3e ("NR.
oreo0er, in "outheast !in$anao /ol$ !ining Corporation v. Balite
Portal !ining Cooperative,
;>
t3e Co-rt, t3ro-/3 Asso5i+te '-sti5e Cons-e.o
Ln+res-#+nti+/o 8no= retired9, de5.+red t3+t .pex !ining Co.+ 5nc. v.
/arcia did not de+. =it3 t3e iss-es o4 t3e expir+tion o4 "P 1;; +nd t3e
0+.idit6 o4 t3e tr+ns4er o4 "P 1;; to #", vi<:
N1.5-1/ <!" 5-1 A;1> M."."7 <!%1 ?$/1<9$%1 !"=
C:1%5.$" ;1/5!."."7 5$ 5-1 <$"5.":."7 6!9.#.5= $? EP N$. &** $"
7/$:"#% 8-.<- !/$%1 !?51/ 5-1 B:#701"5 ." %!.# <!%1 8!%
;/$0:97!51#. W-.91 .5 .% 5/:1 5-!5 5-1 A;1> M."."7 <!%1 %15591#
5-1 .%%:1 $? 8-$ 215811" A;1> !"# M!/<$;;1/ 6!9.#9= !<C:./1#
0."."7 /.7-5% $61/ 5-1 #.%;:51# !/1! 2= !6!.9."7 $? 5-1 ;/$;1/
;/$<1#:/!9 /1C:.%.51% 0!"#!51# 2= 9!8, .5 <1/5!."9= #.# "$5
#1!9 8.5- 5-1 C:1%5.$" /!.%1# 2= 5-1 $;;$%.5$/% ." 5-1
C$"%$9.#!51# M."1% <!%1%, ..1., 8-15-1/ EP N$. &** -!# !9/1!#=
1>;./1# !"# /10!."1# 6!9.# %:2%1C:1"5 5$ .5% 5/!"%?1/ 2=
M!/<$;;1/ 5$ ;15.5.$"1/. 8",p3+sis s-pp.ied.9
D3+t is ,ore re0e+.in/ is t3+t in t3e Reso.-tion d+ted 27 No0e,1er
1222, reso.0in/ t3e ,otion 4or re5onsider+tion o4 .pex !ining Co.+ 5nc. v.
/arcia+ t3e Co-rt 5.+ri4ied t3+t t3e r-.in/ on t3e s+id de5ision =+s 1indin/
on.6 1et=een Apex +nd C +nd =it3 respe5t t3e p+rti5-.+r iss-e r+ised
t3erein. G+5ts +nd iss-es not +ttend+nt to t3e s+id de5ision, +s in t3ese 5+ses,
+re not sett.ed 16 t3e s+,e. A portion o4 t3e disposition o4 t3e .pex !ining
Co.+ 5nc. v. /arcia Reso.-tion d+ted 27 No0e,1er 1222 de5rees:
x x x )3e de5ision rendered in t3is 5+se is <$"<9:%.61 $"9=
215811" 5-1 ;!/5.1% 8.5- /1%;1<5 5$ 5-1 ;!/5.<:9!/ .%%:1 -1/1." /!.%1#
!"# :"#1/ 5-1 %15 $? <./<:0%5!"<1% -1/1." ;/16!.9."7. In "$ <!%1
;>
#-pr+ note 1; +t 781.
%-$:9# 5-1 #1<.%.$" 21 <$"%.#1/1# !% ! ;/1<1#1"5 5$ /1%$961 $/ %15591
<9!.0% $? ;1/%$"%H1"5.5.1% "$5 ;!/5.1% -1/15$. Neit3er is it intended to
-nsett.e ri/3ts o4 personsKentities =3i53 3+0e 1een +5?-ired or =3i53 ,+6
3+0e +55r-ed -pon re.i+n5e on .+=s p+ssed 16 t3e +ppropri+te +/en5ies.
8",p3+sis s-pp.ied.9
T-1 I%%:1 $? 5-1 C$"%5.5:5.$"!9.5= $?
P/$<9!0!5.$" I% R!.%1# B19!51#9=
In its .+st-dit53 e44ort to s+.0+/e its 5+se, #" 5ontends t3+t
Pro5.+,+tion No. 227, iss-ed 16 President G.ori+ +5+p+/+.-Arro6o +nd
de5.+rin/ t3e (i=+.=+. Go.d R-s3 Are+ +s + ,iner+. reser0+tion, is in0+.id
on t3e /ro-nd t3+t it .+5@s t3e 5on5-rren5e o4 Con/ress +s ,+nd+ted 16
#e5tion >, Arti5.e FII o4 t3e Constit-tionE #e5tion 1 o4 Rep-1.i5 A5t No.
;022E #e5tion 1> o4 "xe5-ti0e Order No. 222, ot3er=ise @no=n +s t3e
Ad,inistr+ti0e Code o4 1287E #e5tion 58+9 o4 Rep-1.i5 A5t No. 7587, +nd
#e5tion >8+9 o4 Rep-1.i5 A5t No. 7757.
It is =e..-sett.ed t3+t =3en ?-estions o4 5onstit-tion+.it6 +re r+ised,
t3e 5o-rt 5+n exer5ise its po=er o4 C-di5i+. re0ie= on.6 i4 t3e 4o..o=in/
re?-isites +re present: 819 +n +5t-+. +nd +ppropri+te 5+se existsE 829 t3ere is +
person+. +nd s-1st+nti+. interest o4 t3e p+rt6 r+isin/ t3e 5onstit-tion+.
?-estionE 8;9 t3e exer5ise o4 C-di5i+. re0ie= is p.e+ded +t t3e e+r.iest
opport-nit6E +nd 8>9 t3e 5onstit-tion+. ?-estion is t3e lis mota o4 t3e 5+se.
)+@in/ into 5onsider+tion t3e 4ore/oin/ re?-isites o4 C-di5i+. re0ie=, it
is re+di.6 5.e+r t3+t t3e t3ird re?-isite is +1sent. )3e /ener+. r-.e is t3+t t3e
?-estion o4 5onstit-tion+.it6 ,-st 1e r+ised +t t3e e+r.iest opport-nit6, so t3+t
i4 it is not r+ised in t3e p.e+din/s, ordin+ri.6 it ,+6 not 1e r+ised +t t3e tri+.E
+nd i4 not r+ised in t3e tri+. 5o-rt, it =i.. not 1e 5onsidered on +ppe+..
;5


;5
!atibag v. Benipao, >22 P3i.. 55>, 578-572 820029.
In t3e inst+nt 5+se, it ,-st 1e pointed o-t t3+t in t3e Rep.6 to
Respondent #":s Conso.id+ted Co,,ent 4i.ed on 20 +6 200;, A*
,entioned Pro5.+,+tion No. 227, =3i53 =+s iss-ed on 25 No0e,1er 2002.
)3is pro5.+,+tion, +55ordin/ to t3e A*, 3+s rendered #":s 5.+i, o0er
t3e 5ontested +re+ ,oot, +s t3e President 3+s +.re+d6 de5.+red t3e s+,e +s +
,iner+. reser0+tion +nd +s +n en0iron,ent+..6 5riti5+. +re+. #" did not p-t
to iss-e t3e 0+.idit6 o4 s+id pro5.+,+tion in +n6 o4 its p.e+din/s despite
n-,ero-s opport-nities to ?-estion t3e s+,e. It =+s on.6 +4ter t3e +ss+i.ed
(e5ision =+s pro,-./+ted -- i.e., in #":s otion 4or Re5onsider+tion o4
t3e ?-estioned (e5ision 4i.ed on 1; '-.6 2007 +nd its otion 4or Re4err+. o4
t3e C+se to t3e Co-rt "n *+n5 +nd 4or Or+. Ar/-,ents 4i.ed on 22 A-/-st
2007 -- t3+t it +ss+i.ed t3e 0+.idit6 o4 s+id pro5.+,+tion.

Cert+in.6, posin/ t3e ?-estion on t3e 5onstit-tion+.it6 o4 Pro5.+,+tion
No. 227 4or t3e 4irst ti,e in its otion 4or Re5onsider+tion is, indeed, too
.+te.
;7

In 4+5t, t3is Co-rt, =3en it rendered t3e (e5ision it ,ere.6 re5o/ni<ed
t3+t t3e ?-estioned pro5.+,+tion 5+,e 4ro, + 5o-e?-+. 1r+n53 o4
/o0ern,ent, =3i53 entit.ed it to + stron/ pres-,ption o4 5onstit-tion+.it6.
;7
)3e pres-,ption o4 its 5onstit-tion+.it6 st+nds in+s,-53 +s t3e p+rties in t3e
inst+nt 5+ses did not ?-estion its 0+.idit6, ,-53 .ess present +n6 e0iden5e to
pro0e t3+t t3e s+,e is -n5onstit-tion+.. )3is is in .ine =it3 t3e pre5ept t3+t
+d,inistr+ti0e iss-+n5es 3+0e t3e 4or5e +nd e44e5t o4 .+= +nd t3+t t3e6
1ene4it 4ro, t3e s+,e pres-,ption o4 0+.idit6 +nd 5onstit-tion+.it6 enCo6ed
16 st+t-tes.
;8

;7
Cmali v. Exececutive "ecretar /uingona+ Jr.+ ;75 P3i.. 77, 87 812229.
;7
"enate of the Philippines v. Ermita, G.R. No. 172777, 20 Apri. 2007, >88 #CRA 1, 77.
;8
!irasol v. %epartment of Public Wor;s an$ Digh#as, G.R. No. 15872;, 8 '-ne 2007,
>20 #CRA ;18, ;>7-;>8.
P/$<9!0!5.$" N$. (3D I% ." H!/0$"= 8.5-
A/5.<91 XII, S1<5.$" E, $? 5-1 C$"%5.5:5.$"
At +n6 r+te, e0en i4 t3is Co-rt =ere to 5onsider t3e +r/-,ents
1e.+ted.6 r+ised 16 #", s+id +r/-,ents +re not ,eritorio-s.
#" +sserts t3+t Arti5.e FII, #e5tion > o4 t3e Constit-tion, 1+rs t3e
President 4ro, ex5.-din/ 4orest reser0esKreser0+tions +nd pro5.+i,in/ t3e
s+,e +s ,iner+. reser0+tions, sin5e t3e po=er to de-5.+ssi46 t3e, resides in
Con/ress.
#e5tion >, Arti5.e FII o4 t3e Constit-tion re+ds:
)3e Con/ress s3+.. +s soon +s possi1.e, deter,ine 16 .+= t3e
spe5i4i5 .i,its o4 4orest .+nds +nd n+tion+. p+r@s, ,+r@in/ 5.e+r.6 t3eir
1o-nd+ries on t3e /ro-nd. )3ere+4ter, s-53 4orest .+nds +nd n+tion+. p+r@s
s3+.. 1e 5onser0ed +nd ,+6 not 1e in5re+sed nor di,inis3ed, ex5ept 16
.+=. )3e Con/ress s3+.. pro0ide, 4or s-53 periods +s it ,+6 deter,ine,
,e+s-res to pro3i1it .o//in/ in end+n/ered 4orests +nd in =+ters3ed +re+s.
)3e +1o0e-?-oted pro0ision s+6s t3+t t3e +re+ 5o0ered 16 4orest .+nds
+nd n+tion+. p+r@s ,+6 not 1e exp+nded or red-5ed, -n.ess p-rs-+nt to + .+=
en+5ted 16 Con/ress. C.e+r in t3e .+n/-+/e o4 t3e 5onstit-tion+. pro0ision is
its prospe5ti0e tenor, sin5e it spe+@s in t3is ,+nner: ACongress shall as soon
as possible.B It is on.6 +4ter t3e spe5i4i5 .i,its o4 t3e 4orest .+nds s3+.. 3+0e
1een deter,ined 16 t3e .e/is.+t-re =i.. t3is 5onstit-tion+. restri5tion +pp.6.
#" does not +..e/e nor present +n6 e0iden5e t3+t Con/ress 3+d +.re+d6
en+5ted + st+t-te deter,inin/ =it3 spe5i4i5 .i,its 4orest .+nds +nd n+tion+.
p+r@s. Considerin/ t3e +1sen5e o4 s-53 .+=, Pro5.+,+tion No. 227 5o-.d not
3+0e 0io.+ted #e5tion >, Arti5.e FII o4 t3e 1287 Constit-tion. In P5C:P
0esources+ 5nc. v. Base !etals !ineral 0esources Corporation+
31
t3e Co-rt
3+d t3e o55+sion to si,i.+r.6 r-.e in t3is 4+s3ion:
;2
G.R. No. 17;502, 7 (e5e,1er 2007, 510 #CRA >00, >17.
x x x #e5. >, Art. FII o4 t3e 1287 Constit-tion, on t3e ot3er 3+nd,
pro0ides t3+t Con/ress s3+.. deter,ine t3e spe5i4i5 .i,its o4 4orest .+nds
+nd n+tion+. p+r@s, ,+r@in/ 5.e+r.6 t3eir 1o-nd+ries on t3e /ro-nd. On5e
t3is is done, t3e +re+ t3-s 5o0ered 16 s+id 4orest .+nds +nd n+tion+. p+r@s
,+6 not 1e exp+nded or red-5ed ex5ept +.so 16 5on/ression+. .e/is.+tion.
S."<1 C$"7/1%% -!% =15 5$ 1"!<5 ! 9!8 #151/0."."7 5-1 %;1<.?.< 9.0.5% $?
5-1 ?$/1%5 9!"#% <$61/1# 2= P/$<9!0!5.$" N$. *)3 !"# 0!/A."7 <91!/9=
.5% 2$:"#!/.1% $" 5-1 7/$:"#, 5-1/1 <!" 21 "$ $<<!%.$" 5-!5 <$:9# 7.61
/.%1 5$ ! 6.$9!5.$" $? 5-1 <$"%5.5:5.$"!9 ;/$6.%.$".
#e5tion >, Arti5.e FII o4 t3e Constit-tion, +ddresses t3e 5on5ern o4 t3e
dr+4ters o4 t3e 1287 Constit-tion +1o-t 4orests +nd t3e preser0+tion o4
n+tion+. p+r@s. )3is =+s 1ro-/3t +1o-t 16 t3e dr+4ters: +=+reness +nd 4e+r
o4 t3e 5ontin-in/ destr-5tion o4 t3is 5o-ntr6:s 4orests.
>0
In 0ie= o4 t3is
5on5ern, Con/ress is t+s@ed to 4ix 16 .+= t3e spe5i4i5 .i,its o4 4orest .+nds
+nd n+tion+. p+r@s, +4ter =3i53 t3e trees in t3ese +re+s +re to 1e t+@en 5+re
o4.
>1
$en5e, t3ese 4orest .+nds +nd n+tion+. p+r@s t3+t Con/ress is to de.i,it
t3ro-/3 + .+= 5o-.d 1e 53+n/ed on.6 16 Con/ress.
In +ddition, t3ere is not3in/ in t3e 5onstit-tion+. pro0ision t3+t
pro3i1its t3e President 4ro, de5.+rin/ + 4orest .+nd +s +n en0iron,ent+..6
5riti5+. +re+ +nd 4ro, re/-.+tin/ t3e ,inin/ oper+tions t3erein 16 de5.+rin/
it +s + ,iner+. reser0+tion in order to pre0ent t3e 4-rt3er de/r+d+tion o4 t3e
4orest en0iron,ent +nd to reso.0e t3e 3e+.t3 +nd pe+5e +nd order pro1.e,s
t3+t 1eset t3e +re+.
A 5.oser ex+,in+tion o4 #e5tion >, Arti5.e FII o4 t3e Constit-tion +nd
Pro5.+,+tion No. 227 re0e+.s t3+t t3ere is not3in/ 5ontr+di5tor6 1et=een t3e
t=o. Pro5.+,+tion No. 227, + ,e+s-re to +tt+in +nd ,+int+in + r+tion+. +nd
order.6 1+.+n5e 1et=een so5io-e5ono,i5 /ro=t3 +nd en0iron,ent+.
prote5tion, Ci1es =it3 t3e 5onstit-tion+. po.i56 o4 preser0in/ +nd prote5tin/
>0
Re5ords o4 t3e Constit-tion+. Co,,ission, &o.. III, pp. 522-52;.
>1
Id.
t3e 4orest .+nds 4ro, 1ein/ 4-rt3er de0+st+ted 16 den-d+tion. In ot3er =ords,
t3e pro5.+,+tion in ?-estion is in .ine =it3 #e5tion >, Arti5.e FII o4 t3e
Constit-tion, +s t3e 4or,er 4osters t3e preser0+tion o4 t3e 4orest en0iron,ent
o4 t3e (i=+.=+. +re+ +nd is +i,ed +t pre0entin/ t3e 4-rt3er de/r+d+tion o4
t3e s+,e. )3ese o1Ce5ti0es +re t3e 0er6 s+,e re+sons =36 t3e s-1Ce5t
5onstit-tion+. pro0ision is in p.+5e.
D3+t is ,ore, C-rispr-den5e 3+s re5o/ni<ed t3e po.i56 o4 0:95.;91
9!"# :%1 in o-r .+=s to=+rds t3e end t3+t t3e 5o-ntr6:s pre5io-s n+t-r+.
reso-r5es ,+6 1e r+tion+..6 exp.ored, de0e.oped, -ti.i<ed +nd 5onser0ed.
>2
It
3+s 1een 3e.d t3+t 4orest reser0es or reser0+tions 5+n +t t3e s+,e ti,e 1e
open to ,inin/ oper+tions, pro0ided + prior =ritten 5.e+r+n5e 16 t3e
/o0ern,ent +/en56 3+0in/ C-risdi5tion o0er s-53 reser0+tion is o1t+ined. In
ot3er =ords ,iner+. .+nds 5+n exist =it3in 4orest reser0+tions. )3ese t=o
ter,s +re not +nti-t3eti5+.. )3is is ,+de ,+ni4est i4 =e re+d #e5tion >7 o4
Presidenti+. (e5ree No. 705 or t3e Re0ised Gorestr6 Code o4 t3e P3i.ippines,
=3i53 pro0ides:
inin/ oper+tions in 4orest .+nds s3+.. 1e re/-.+ted +nd 5ond-5ted
=it3 d-e re/+rd to prote5tion, de0e.op,ent +nd -ti.i<+tion o4 ot3er s-r4+5e
reso-r5es. L$<!5.$", ;/$%;1<5."7, 1>;9$/!5.$", :5.9.@!5.$" $/
1>;9$.5!5.$" $? 0."1/!9 /1%$:/<1% ." ?$/1%5 /1%1/6!5.$"% s3+.. 1e
/o0erned 16 ,inin/ .+=s, r-.es +nd re/-.+tions. 8",p3+sis s-pp.ied.9
A.so, #e5tion 7 o4 Rep-1.i5 A5t No. 72>2 or t3e inin/ A5t o4 1225, st+tes
t3+t ,inin/ oper+tions in reser0ed .+nds ot3er t3+n ,iner+. reser0+tions,
s-53 +s 4orest reser0esKreser0+tions, +re +..o=ed, vi<:
M."."7 $;1/!5.$"% ." /1%1/61# 9!"#% $5-1/ 5-!" 0."1/!9
/1%1/6!5.$"% ,+6 1e -ndert+@en 16 t3e (ep+rt,ent, s-1Ce5t to .i,it+tions
+s 3erein pro0ided. In t3e e0ent t3+t t3e (ep+rt,ent 5+nnot -ndert+@e s-53
+5ti0ities, t3e6 ,+6 1e -ndert+@en 16 + ?-+.i4ied person in +55ord+n5e
>2
P5C:P 0esources+ 5nc. v. Base !etals !ineral 0esources Corporation, s-pr+ note ;2 +t
>12.
=it3 t3e r-.es +nd re/-.+tions pro,-./+ted 16 t3e #e5ret+r6. 8",p3+sis
s-pp.ied.9
#in5e 4orest reser0+tions 5+n 1e ,+de ,iner+. .+nds =3ere ,inin/
oper+tions +re 5ond-5ted, t3en t3ere is no +r/-,ent t3+t t3e disp-ted .+nd,
=3i53 .ies =it3in + 4orest reser0+tion, 5+n 1e de5.+red +s + ,iner+.
reser0+tion +s =e...
R1;:29.< A<5 N$. D3E( O5-1/8.%1 K"$8"
!% 5-1 IP-.9.;;."1 M."."7 A<5 $? &33',J .%
5-1 A;;9.<!291 L!8
(eter,ined to ri0et its 5r-,1.in/ 5+-se, #" t3en +r/-es t3+t
Pro5.+,+tion No. 227 is in0+.id, +s it tr+ns/ressed t3e st+t-tes /o0ernin/ t3e
ex5.-sion o4 +re+s +.re+d6 de5.+red +s 4orest reser0es, s-53 +s #e5tion 1 o4
Rep-1.i5 A5t No. ;022,
>;
#e5tion 1> o4 t3e Ad,inistr+ti0e Code o4 1287,
#e5tion 58+9 o4 Rep-1.i5 A5t No. 7587,
>>
+nd #e5tion >8+9 o4 Rep-1.i5 A5t
No. 7757.
>5

Citin/ #e5tion 1 o4 Rep-1.i5 A5t No. ;022, =3i53 pro0ides +s
4o..o=s:
Upon t3e re5o,,end+tion o4 t3e (ire5tor o4 Gorestr6, =it3 t3e
+ppro0+. o4 t3e (ep+rt,ent $e+d, t3e President o4 t3e P3i.ippines %-!99
%15 !;!/5 ?$/1%5 /1%1/61% =3i53 s3+.. in5.-de den-ded 4orest .+nds 4ro,
t3e p-1.i5 .+nds +nd 3e s3+.. 16 pro5.+,+tion de5.+re t3e est+1.is3,ent o4
s-53 4orest reser0es +nd t3e 1o-nd+ries t3ereo4, +nd t3ere+4ter s-53 4orest
reser0es s3+.. not 1e entered, or ot3er=ise disposed o4, 1-t s3+.. re,+in
inde4inite.6 +s s-53 4or 4orest -ses.
T-1 P/1%.#1"5 $? 5-1 P-.9.;;."1% ,+6, in .i@e ,+nner -pon t3e
re5o,,end+tion o4 t3e (ire5tor o4 Gorestr6, =it3 t3e +ppro0+. o4 t3e
(ep+rt,ent 3e+d, 2= ;/$<9!0!5.$", 0$#.?= 5-1 2$:"#!/.1% $? !"= %:<-
>;
Appro0ed on 17 A-/-st 1271.
>>
Appro0ed on 1 '-ne 1222, t3is st+t-te is @no=n +s t3e AN+tion+. Inte/r+ted Prote5ted
Are+s #6ste, A5t o4 1222.B
>5
)3is A5t is @no=n +s t3e ACo,pre3ensi0e A/r+ri+n Re4or, !+= o4 1228.B It too@ e44e5t
on 15 '-ne 1288.
?$/1%5 /1%1/61 5$ <$"?$/0 8.5- %:2%1C:1"5 ;/1<.%1 %:/61= 2:5 "$5 5$
1><9:#1 !"= ;$/5.$" 5-1/1$? 1><1;5 8.5- 5-1 <$"<://1"<1 $? C$"7/1%%.
8Unders5orin/ s-pp.ied.9
#" s-1,its t3+t t3e 4ore/oin/ pro0ision is t3e /o0ernin/ st+t-te on t3e
ex5.-sion o4 +re+s +.re+d6 de5.+red +s 4orest reser0es. )3-s, +re+s +.re+d6
set +side 16 .+= +s 4orest reser0es +re no .on/er =it3in t3e pro5.+,+tion
po=ers o4 t3e President to ,odi46 or set +side 4or +n6 ot3er p-rposes s-53 +s
,iner+. reser0+tion.
)o 1o.ster its 5ontention t3+t t3e President 5+nnot disest+1.is3 4orest
reser0es into ,iner+. reser0+tions, #" ,+@es re4eren5e to #e5tion 1>,
C3+pter >, )it.e I, *oo@ III o4 t3e Ad,inistr+ti0e Code o4 1287, =3i53 p+rt.6
re5ites:
)3e President %-!99 -!61 5-1 ;$81/ 5$ /1%1/61 4or sett.e,ent or
p-1.i5 -se, +nd 4or spe5i4i5 p-1.i5 p-rposes, +n6 o4 t3e .+nds o4 t3e p-1.i5
do,+in, 5-1 :%1 $? 8-.<- .% "$5 $5-1/8.%1 #./1<51# 2= 9!8. )3e reser0ed
.+nd s3+.. t3ere+4ter re,+in s-1Ce5t to t3e spe5i4i5 p-1.i5 p-rpose indi5+ted
-nti. ot3er=ise pro0ided 16 .+= or pro5.+,+tion. 8",p3+ses s-pp.ied.9
#" 4-rt3er 5ontends t3+t #e5tion 7 o4 Rep-1.i5 A5t No. 7587,
>7
=3i53 de5.+res t3+t t3e disest+1.is3,ent o4 + prote5ted +re+ s3+.. 1e done 16
Con/ress, +nd #e5tion >8+9 o4 Rep-1.i5 A5t No. 7757,
>7
=3i53 in t-rn
re?-ires + .+= p+ssed 16 Con/ress 1e4ore +n6 4orest reser0e 5+n 1e
re5.+ssi4ied, ,i.it+te +/+inst t3e 0+.idit6 o4 Pro5.+,+tion No. 227.
>7
%isestablishment as Protecte$ .rea. H D3en in t3e opinion o4 t3e ("NR + 5ert+in prote5ted +re+
s3o-.d 1e =it3dr+=n or disest+1.is3ed, or its 1o-nd+ries ,odi4ied +s =+rr+nted 16 + st-d6 +nd
s+n5tioned 16 t3e ,+Corit6 o4 t3e ,e,1ers o4 t3e respe5ti0e 1o+rds 4or t3e prote5ted +re+ +s 3erein
est+1.is3ed in #e5tion 11, it s3+.., in t-rn, +d0ise Con/ress. D.%1%5!29.%-01"5 $? ! ;/$51<51# !/1!
:"#1/ 5-1 S=%510 $/ 0$#.?.<!5.$" $? .5% 2$:"#!/= %-!99 5!A1 1??1<5 ;:/%:!"5 5$ !" !<5 $?
C$"7/1%%.
>7
A.. +.ien+1.e +nd dispos+1.e .+nds o4 t3e p-1.i5 do,+in de0oted to or s-it+1.e 4or +/ri5-.t-re. N$
/1<9!%%.?.<!5.$" $? ?$/1%5 $/ 0."1/!9 9!"#% 5$ !7/.<:95:/!9 9!"#% %-!99 21 :"#1/5!A1" !?51/ 5-1
!;;/$6!9 $? 5-.% A<5 :"5.9 C$"7/1%%, 5!A."7 ."5$ !<<$:"5 1<$9$7.<!9, #1619$;01"5!9 !"# 1C:.5=
<$"%.#1/!5.$"%, %-!99 -!61 #151/0."1# 2= 9!8, 5-1 %;1<.?.< 9.0.5% $? 5-1 ;:29.< #$0!.".
Pro5.+,+tion No. 227, de5.+rin/ + 5ert+in portion o4 .+nd .o5+ted in
on@+6o, Co,poste.+ &+..e6, =it3 +n +re+ o4 8,100 3e5t+res, ,ore or .ess,
+s + ,iner+. reser0+tion, =+s iss-ed 16 t3e President p-rs-+nt to #e5tion 5 o4
Rep-1.i5 A5t No. 72>2, +.so @no=n +s t3e AP3i.ippine inin/ A5t o4 1225.B
Pro5.+,+tion No. 227 did not ,odi46 t3e 1o-nd+ries o4 t3e A/-s+n-
(+0+o-#-ri/+o Gorest Reser0e sin5e, +s e+r.ier dis5-ssed, ,iner+.
reser0+tions 5+n exist =it3in 4orest reser0es 1e5+-se o4 t3e ,-.tip.e .+nd -se
po.i56. )3e ,etes +nd 1o-nds o4 + 4orest reser0+tion re,+in int+5t e0en i4,
=it3in t3e s+id +re+, + ,iner+. .+nd is .o5+ted +nd t3ere+4ter de5.+red +s +
,iner+. reser0+tion.
ore to t3e point, + per-s+. o4 Rep-1.i5 A5t No. ;022, AAn A5t to
A,end Cert+in #e5tions o4 t3e Re0ised Ad,inistr+ti0e Code o4 1217,B
=3i53 =+s +ppro0ed on 17 A-/-st 1271, +nd t3e Ad,inistr+ti0e Code o4
1287, s3o=s t3+t on.6 t3ose p-1.i5 .+nds de5.+red 16 t3e President +s
reser0ed p-rs-+nt to t3ese t=o st+t-tes +re to re,+in s-1Ce5t to t3e spe5i4i5
p-rpose. )3e tenor o4 t3e 5ited pro0isions, n+,e.6: Athe Presi$ent of the
Philippines shall set apart forest reservesB +nd Athe reserve$ lan$ shall
thereafter remain+E spe+@s o4 4-t-re p-1.i5 reser0+tions to 1e de5.+red,
p-rs-+nt to t3ese t=o st+t-tes. )3ese pro0isions do not +pp.6 to 4orest
reser0+tions e+r.ier de5.+red +s s-53, +s in t3is 5+se, =3i53 =+s pro5.+i,ed
=+6 1+5@ on 27 Ge1r-+r6 12;1, 16 Go0ernor Gener+. (=i/3t G. (+0is -nder
Pro5.+,+tion No. ;72.
O0er +nd +1o0e t3+t, #e5tion 5 o4 Rep-1.i5 A5t No. 72>2 +-t3ori<es
t3e President to est+1.is3 ,iner+. reser0+tions, to =it:
#e5. 5. !ineral 0eservations. - D3en t3e n+tion+. interest so
re?-ires, s-53 +s =3en t3ere is + need to preser0e str+te/i5 r+= ,+teri+.s
4or ind-stries 5riti5+. to n+tion+. de0e.op,ent, or 5ert+in ,iner+.s 4or
s5ienti4i5, 5-.t-r+. or e5o.o/i5+. 0+.-e, 5-1 P/1%.#1"5 0!= 1%5!29.%-
0."1/!9 /1%1/6!5.$"% :;$" 5-1 /1<$001"#!5.$" $? 5-1 D./1<5$/
5-/$:7- 5-1 S1</15!/=. inin/ oper+tions in existin/ ,iner+.
reser0+tions +nd s-53 ot3er reser0+tions +s ,+6 t3ere+4ter 1e est+1.is3ed,
s3+.. 1e -ndert+@en 16 t3e (ep+rt,ent or t3ro-/3 + 5ontr+5tor x x x.
8",p3+sis s-pp.ied.9
It is + r-di,ent+r6 prin5ip.e in .e/+. 3er,ene-ti5s t3+t =3ere t3ere +re
t=o +5ts or pro0isions, one o4 =3i53 is spe5i+. +nd p+rti5-.+r +nd 5ert+in.6
in0o.0es t3e ,+tter in ?-estion, t3e ot3er /ener+., =3i53, i4 st+ndin/ +.one,
=o-.d in5.-de t3e ,+tter +nd t3-s 5on4.i5t =it3 t3e spe5i+. +5t or pro0ision,
t3e spe5i+. +5t ,-st +s intended 1e t+@en +s 5onstit-tin/ +n ex5eption to t3e
/ener+. +5t or pro0ision, espe5i+..6 =3en s-53 /ener+. +nd spe5i+. +5ts or
pro0isions +re 5onte,por+neo-s, +s t3e !e/is.+t-re is not to 1e pres-,ed to
3+0e intended + 5on4.i5t.
$en5e, it 3+s 1e5o,e +n est+1.is3ed r-.e o4 st+t-tor6 5onstr-5tion t3+t
=3ere one st+t-te de+.s =it3 + s-1Ce5t in /ener+. ter,s, +nd +not3er de+.s
=it3 + p+rt o4 t3e s+,e s-1Ce5t in + ,ore det+i.ed =+6, t3e t=o s3o-.d 1e
3+r,oni<ed i4 possi1.eE 1-t i4 t3ere is +n6 5on4.i5t, t3e .+tter s3+.. pre0+i.
re/+rd.ess o4 =3et3er it =+s p+ssed prior to t3e /ener+. st+t-te. Or =3ere
t=o st+t-tes +re o4 5ontr+r6 tenor or o4 di44erent d+tes 1-t +re o4 e?-+.
t3eoreti5+. +pp.i5+tion to + p+rti5-.+r 5+se, t3e one spe5i+..6 desi/ned
t3ere4or s3o-.d pre0+i. o0er t3e ot3er.
It ,-st 1e o1ser0ed t3+t Rep-1.i5 A5t No. ;022, AAn A5t to A,end
Cert+in #e5tions o4 t3e Re0ised Ad,inistr+ti0e Code o4 1217,B +nd t3e
Ad,inistr+ti0e Code o4 1287, +re /ener+. .+=s. #e5tion 1 o4 Rep-1.i5 A5t
No. ;022 +nd #e5tion 1> o4 t3e Ad,inistr+ti0e Code o4 1287 re?-ire t3e
5on5-rren5e o4 Con/ress 1e4ore +n6 portion o4 + 4orest reser0e 5+n 1e
0+.id.6 ex5.-ded t3ere4ro,. )3ese pro0isions +re 1ro+d sin5e t3e6 de+. =it3
+.. @inds o4 ex5.-sion or re5.+ssi4i5+tion re.+ti0e to 4orest reser0es, i.e.,
4orest reser0e +re+s 5+n 1e tr+ns4or,ed into +.. @inds o4 p-1.i5 p-rposes, not
on.6 t3e est+1.is3,ent o4 + ,iner+. reser0+tion. #e5tion 5 o4 Rep-1.i5 A5t
No. 72>2 is + spe5i+. pro0ision, +s it spe5i4i5+..6 tre+ts o4 t3e est+1.is3,ent
o4 ,iner+. reser0+tions on.6. #+id pro0ision /r+nts t3e President t3e po=er
to pro5.+i, + ,iner+. .+nd +s + ,iner+. reser0+tion, re/+rd.ess o4 =3et3er
s-53 .+nd is +.so +n existin/ 4orest reser0+tion.
#e5. 58+9 o4 Rep-1.i5 A5t No. 7587 pro0ides:
#e5. 5. Establishment an$ Extent of the "stem. M )3e
est+1.is3,ent +nd oper+tion+.i<+tion o4 t3e #6ste, s3+.. in0o.0e t3e
4o..o=in/:
8+9 A.. +re+s or is.+nds in t3e P3i.ippines pro5.+i,ed,
desi/n+ted or set +side, p-rs-+nt to + .+=, presidenti+. de5ree, presidenti+.
pro5.+,+tion or exe5-ti0e order +s n+tion+. p+r@, /+,e re4-/e, 1ird +nd
=i.d.i4e s+n5t-+r6, =i.derness +re+, stri5t n+t-re reser0e, =+ters3ed,
,+n/ro0e reser0e, 4is3 s+n5t-+r6, n+t-r+. +nd 3istori5+. .+nd,+r@,
prote5ted +nd ,+n+/ed .+nds5+peKse+s5+pe +s =e.. +s identi4ied 0ir/in
4orests 1e4ore t3e e44e5ti0it6 o4 t3is A5t +re 3ere16 desi/n+ted +s initi+.
5o,ponents o4 t3e #6ste,. )3e initi+. 5o,ponents o4 t3e #6ste, s3+.. 1e
/o0erned 16 existin/ .+=s, r-.es +nd re/-.+tions, not in5onsistent =it3 t3is
A5t.
G.+rin/ in t3e 4ore/oin/ en-,er+tion o4 +re+s 5o,prisin/ t3e initi+.
5o,ponent o4 t3e NIPA# #6ste, -nder Rep-1.i5 A5t No. 7587 is t3e
+1sen5e o4 4orest reser0es. On.6 prote5ted +re+s en-,er+ted -nder s+id
pro0ision 5+nnot 1e ,odi4ied. #in5e t3e s-1Ce5t ,+tter o4 Pro5.+,+tion No.
227 is + 4orest reser0+tion pro5.+i,ed +s + ,iner+. reser0e, Rep-1.i5 A5t No.
7587 5+nnot possi1.6 1e ,+de +pp.i5+1.e. Neit3er 5+n Pro5.+,+tion No.
227 possi1.6 0io.+te s+id .+=.
#i,i.+r.6, #e5tion >8+9 o4 Rep-1.i5 A5t No. 7757 5+nnot 1e ,+de
+pp.i5+1.e to t3e inst+nt 5+se.
#e5tion >8+9 o4 Rep-1.i5 A5t No. 7757 re+ds:
A.. +.ien+1.e +nd dispos+1.e .+nds o4 t3e p-1.i5 do,+in de0oted to
or s-it+1.e 4or +/ri5-.t-re. N$ /1<9!%%.?.<!5.$" $? ?$/1%5 $/ 0."1/!9 9!"#%
5$ !7/.<:95:/!9 9!"#% %-!99 21 :"#1/5!A1" !?51/ 5-1 !;;/$6!9 $? 5-.% A<5
:"5.9 C$"7/1%%, 5!A."7 ."5$ !<<$:"5 1<$9$7.<!9, #1619$;01"5!9 !"#
1C:.5= <$"%.#1/!5.$"%, %-!99 -!61 #151/0."1# 2= 9!8, 5-1 %;1<.?.< 9.0.5%
$? 5-1 ;:29.< #$0!.". 8Unders5orin/ s-pp.ied.9
#e5tion >8+9 o4 Rep-1.i5 A5t No. 7757 pro3i1its t3e re5.+ssi4i5+tion o4
4orest or ,iner+. .+nds into +/ri5-.t-r+. .+nds -nti. Con/ress s3+.. 3+0e
deter,ined 16 .+= t3e spe5i4i5 .i,its o4 t3e p-1.i5 do,+in. A 5-rsor6
re+din/ o4 t3is pro0ision =i.. re+di.6 s3o= t3+t t3e s+,e is not re.e0+nt to
t3e inst+nt 5ontro0ers6, +s t3ere 3+s 1een no re5.+ssi4i5+tion o4 + 4orest or
,iner+. .+nd into +n +/ri5-.t-r+. .+nd.
G-rt3er,ore, t3e sett.ed r-.e o4 st+t-tor6 5onstr-5tion is t3+t i4 t=o or
,ore .+=s o4 di44erent d+tes +nd o4 5ontr+r6 tenors +re o4 e?-+. t3eoreti5+.
+pp.i5+tion to + p+rti5-.+r 5+se, t3e st+t-te o4 .+ter d+te ,-st pre0+i. 1ein/ +
.+ter expression o4 .e/is.+ti0e =i...
>8
In t3e 5+se +t 1+r, t3ere is no ?-estion t3+t Rep-1.i5 A5t No. 72>2 =+s
si/ned into .+= .+ter t3+n Rep-1.i5 A5t No. ;022, t3e Ad,inistr+ti0e Code
o4 1287,
>2
Rep-1.i5 A5t No. 7587 +nd Rep-1.i5 A5t No. 7757. App.6in/ t3e
5ited prin5ip.e, t3e pro0isions o4 Rep-1.i5 A5t No. ;022, t3e Ad,inistr+ti0e
Code o4 1287, Rep-1.i5 A5t No. 7587 +nd Rep-1.i5 A5t No. 7757 5ited 16
#" ,-st 6ie.d to #e5tion 5 o4 Rep-1.i5 A5t No. 72>2.
C!0.9$ B!"!#, et al., C!""$5 S11A R19.1?
?/$0 T-.% C$:/5
>8
Philippine &ational Ban; v. Cru<, G.R. No. 8052;, 18 (e5e,1er 1282, 180 #CRA 207, 21;.
>2
)3is .+= is d+ted 25 '-.6 1287.
C+,i.o *+n+d +nd 3is /ro-p +d,it t3+t t3e6 +re ,e,1ers o4 t3e *+.ite
Cooper+ti0e. )3e6, 3o=e0er, 5.+i, t3+t t3e6 +re distin5t 4ro, *+.ite +nd
,o0e t3+t t3is Co-rt re5o/ni<e t3e, +s prior ,inin/ .o5+tors.
Un4ort-n+te.6 4or t3e,, t3is Co-rt 5+nnot /r+nt +n6 re.ie4 t3e6 see@.
Re5ords re0e+. t3+t +.t3o-/3 t3e6 =ere p+rties to t3e inst+nt 5+ses 1e4ore t3e
Co-rt o4 Appe+.s, t3e6 did not 4i.e + petition 4or re0ie= 1e4ore t3is Co-rt to
5ontest t3e de5ision o4 t3e +ppe..+te 5o-rt. )3e on.6 petitioners in t3e inst+nt
5+ses +re t3e A*, #", *+.ite +nd Apex. Conse?-ent.6, 3+0in/ no
person+.it6 in t3e inst+nt 5+ses, t3e6 5+nnot see@ +n6 re.ie4 4ro, t3is Co-rt.
A;1>K% M$5.$" ?$/ C9!/.?.<!5.$" !"#
B!9.51K% M!".?1%5!5.$" !"# M$5.$"
In its otion 4or C.+ri4i5+tion, Apex desires t3+t t3e Co-rt e.-5id+te
t3e +ss+i.ed (e5ision:s prono-n5e,ent t3+t A,inin/ oper+tions, +re no=,
t3ere4ore =it3in t3e 4-.. 5ontro. o4 t3e #t+te t3ro-/3 t3e exe5-ti0e 1r+n53B
+nd p.+5e t3e s+id prono-n5e,ent in t3e proper perspe5ti0e +s t3e
de5.+r+tion in >a Bugal=B?>aan+ =3i53 st+tes t3+t H
)3e 5on5ept o4 5ontro. +dopted in #e5tion 2 o4 Arti5.e FII ,-st 1e
t+@en to ,e+n .ess t3+n di5t+tori+., +..-en5o,p+ssin/ 5ontro.E 1-t
ne0ert3e.ess s-44i5ient to /i0e t3e #t+te t3e po=er to dire5t, restr+in,
re/-.+te +nd /o0ern t3e +44+irs o4 t3e extr+5ti0e enterprise.
50
Apex st+tes t3+t t3e s-1Ce5t portion o4 t3e +ss+i.ed (e5ision 5o-.d
send + 53i..in/ e44e5t to potenti+. in0estors in t3e ,inin/ ind-str6, =3o ,+6
1e o4 t3e i,pression t3+t t3e #t+te 3+s t+@en o0er t3e ,inin/ ind-str6, not +s
re/-.+tor 1-t +s +n oper+tor. It is o4 t3e opinion t3+t t3e #t+te 5+nnot dire5t.6
-ndert+@e ,inin/ oper+tions.
50
#-pr+ note 12 +t 102;.
oreo0er, Apex is +ppre3ensi0e o4 t3e 4o..o=in/ portion in t3e
?-estioned (e5isionH A)3e #t+te 5+n +.so opt to +=+rd ,inin/ oper+tions in
t3e ,iner+. reser0+tion to pri0+te entities in5.-din/ petitioner Apex +nd
*+.ite, i4 it =is3es.B It +0ers t3+t t3e p3r+se Ai4 it =is3esB ,+6 =3i,si5+..6
1e interpreted to ,e+n + 1.+n@et +-t3orit6 o4 t3e +d,inistr+ti0e +-t3orit6 to
reCe5t t3e 4or,er:s +pp.i5+tion 4or +n exp.or+tion per,it e0en t3o-/3 it
5o,p.ies =it3 t3e pres5ri1ed po.i5ies, r-.es +nd re/-.+tions.
Apex .i@e=ise +s@s t3is Co-rt to order t3e G* to +55ept its
+pp.i5+tion 4or +n exp.or+tion per,it.
*+.ite e53oes t3e s+,e 5on5ern +s t3+t o4 Apex on t3e +5t-+. t+@e-o0er
16 t3e #t+te o4 t3e ,inin/ ind-str6 in t3e disp-ted +re+ to t3e ex5.-sion o4
t3e pri0+te se5tor. In +ddition, *+.ite pr+6s t3+t t3is Co-rt dire5t G* to
+55ept *+.ite:s +pp.i5+tion 4or +n exp.or+tion per,it.
Contr+r6 to t3e 5ontention o4 Apex +nd *+.ite, t3e 4o-rt3 p+r+/r+p3 o4
#e5tion 2, Arti5.e FII o4 t3e Constit-tion +nd #e5tion 5 o4 Rep-1.i5 A5t No.
72>2 s+n5tions t3e #t+te, t3ro-/3 t3e exe5-ti0e dep+rt,ent, to -ndert+@e
,inin/ oper+tions dire5t.6, +s +n oper+tor +nd not +s + ,ere re/-.+tor o4
,iner+. -ndert+@in/s. )3is is ,+de 5.e+rer 16 t3e 4o-rt3 p+r+/r+p3 o4
#e5tion 2, Arti5.e FII o4 t3e 1287 Constit-tion, =3i53 pro0ides in p+rt:
#"C. 2. x x x T-1 S5!51 0!= #./1<59= :"#1/5!A1 %:<- !<5.6.5.1%,
$/ .5 0!= 1"51/ ."5$ <$-;/$#:<5.$", B$."5 61"5:/1, $/ ;/$#:<5.$"-
%-!/."7 !7/1101"5% 8.5- F.9.;."$ <.5.@1"%, $/ <$/;$/!5.$"% $/
!%%$<.!5.$"% !5 91!%5 %.>5= ;1/ <1"5:0 $? 8-$%1 <!;.5!9 .% $8"1# 2=
%:<- <.5.@1"%. x x x. 8",p3+sis s-pp.ied.9
A.so, #e5tion 5 o4 Rep-1.i5 A5t No. 72>2 st+tes t3+t t3e ,inin/
oper+tions in ,iner+. reser0+tions s3+.. 1e -ndert+@en 16 t3e (ep+rt,ent o4
"n0iron,ent +nd N+t-r+. Reso-r5es or + 5ontr+5tor, to =it:
#"C. 5. !ineral 0eservations. H D3en t3e n+tion+. interest so
re?-ires, s-53 +s =3en t3ere is + need to preser0e str+te/i5 r+= ,+teri+.s
4or ind-stries 5riti5+. to n+tion+. de0e.op,ent, or 5ert+in ,iner+.s 4or
s5ienti4i5, 5-.t-r+. or e5o.o/i5+. 0+.-e, t3e President ,+6 est+1.is3 ,iner+.
reser0+tions -pon t3e re5o,,end+tion o4 t3e (ire5tor t3ro-/3 t3e
#e5ret+r6. M."."7 $;1/!5.$"% ." 1>.%5."7 0."1/!9 /1%1/6!5.$"% !"# %:<-
$5-1/ /1%1/6!5.$"% !% 0!= 5-1/1!?51/ 21 1%5!29.%-1#, %-!99 21
:"#1/5!A1" 2= 5-1 D1;!/501"5 $/ 5-/$:7- ! <$"5/!<5$/ x x x.
8",p3+sis s-pp.ied.9
Undo-1ted.6, t3e Constit-tion, +s =e.. +s Rep-1.i5 A5t No. 72>2,
+..o=s t3e exe5-ti0e dep+rt,ent to -ndert+@e ,inin/ oper+tions. *esides,
>a Bugal=B?>aan+ 5ited 16 Apex, did not re4er to t3e 4o-rt3 senten5e o4
#e5tion 2, Arti5.e FII o4 t3e Constit-tion, 1-t to t3e t3ird senten5e o4 t3e
s+id pro0ision, =3i53 st+tes:
#"C. 2. x x x )3e exp.or+tion, de0e.op,ent, +nd -ti.i<+tion o4
n+t-r+. reso-r5es s3+.. 1e -nder t3e 4-.. 5ontro. +nd s-per0ision o4 t3e
#t+te. x x x.
P-rs-+nt to #e5tion 5 o4 Rep-1.i5 A5t No. 72>2, t3e exe5-ti0e
dep+rt,ent 3+s t3e option to -ndert+@e dire5t.6 t3e ,inin/ oper+tions in t3e
(i=+.=+. Go.d R-s3 Are+ or to +=+rd ,inin/ oper+tions t3erein to pri0+te
entities. )3e p3r+se Ai4 it =is3esB ,-st 1e -nderstood =it3in t3e 5ontext o4
t3is pro0ision. $en5e, t3e Co-rt 5+nnot di5t+te t3is 5o-e?-+. 1r+n53 to
53oose =3i53 o4 t3e t=o options to se.e5t. It is t3e so.e prero/+ti0e o4 t3e
exe5-ti0e dep+rt,ent to -ndert+@e dire5t.6 or to +=+rd t3e ,inin/
oper+tions o4 t3e 5ontested +re+.
"0en +ss-,in/ t3+t t3e proper +-t3orit6 ,+6 de5ide to +=+rd t3e
,inin/ oper+tions o4 t3e disp-ted +re+, t3is Co-rt 5+nnot +rro/+te -nto itse.4
t3e t+s@ o4 deter,inin/ =3o, +,on/ t3e +pp.i5+nts, is ?-+.i4ied. It is t3e
d-t6 o4 t3e +ppropri+te +d,inistr+ti0e 1od6 to deter,ine t3e ?-+.i4i5+tions
o4 t3e +pp.i5+nts. It is on.6 =3en t3is +d,inistr+ti0e 1od6 =3i,si5+..6
denies t3e +pp.i5+tions o4 ?-+.i4ied +pp.i5+nts t3+t t3e Co-rt ,+6 inter4ere.
*-t -nti. t3en, t3e Co-rt 3+s no po=er to dire5t s+id +d,inistr+ti0e 1od6 to
+55ept t3e +pp.i5+tion o4 +n6 ?-+.i4ied +pp.i5+nt.
In 0ie= o4 t3is, t3e Co-rt 5+nnot /r+nt t3e pr+6er o4 Apex +nd *+.ite
+s@in/ t3e Co-rt to dire5t t3e G* to +55ept t3eir +pp.i5+tions pendin/
1e4ore t3e G*.
SEMK% M!".?1%5!5.$" !"# M$5.$" #!51# (' J!":!/= (44D
#" =+nts to e,p3+si<e t3+t its prede5essor-in-interest, +r5opper
or C, 5o,p.ied =it3 t3e ,+nd+tor6 exp.or+tion =or@ pro/r+,, re?-ired
-nder "P 1;;, 16 +tt+53in/ t3ere=it3 ?-+rter.6 reports on exp.or+tion =or@
4ro, 20 '-ne 1287 to +r53 122>.
It ,-st 1e o1ser0ed t3+t t3is is t3e 0er6 4irst ti,e +t t3is 0er6 .+te
st+/e t3+t #" 3+s presented t3e ?-+rter.6 exp.or+tion reports. Gro, t3e
e+r.6 p3+se o4 t3is 5ontro0ers6, #" did not dispro0e t3e +r/-,ents o4 t3e
ot3er p+rties t3+t +r5opper 0io.+ted t3e ter,s -nder "P 1;;, +,on/ ot3er
0io.+tions, 16 not 5o,p.6in/ =it3 t3e ,+nd+tor6 exp.or+tion =or@ pro/r+,.
Neit3er did it present e0iden5e 4or t3e +ppre5i+tion o4 t3e .o=er tri1-n+.s.
$en5e, t3e non-5o,p.i+n5e =it3 t3e ,+nd+tor6 exp.or+tion =or@ pro/r+,
=+s not ,+de +n iss-e in +n6 st+/e o4 t3e pro5eedin/s. )3e r-.e is t3+t +n
iss-e t3+t =+s not r+ised in t3e .o=er 5o-rt or tri1-n+. 5+nnot 1e r+ised 4or
t3e 4irst ti,e on +ppe+., +s t3is =o-.d 0io.+te t3e 1+si5 r-.es o4 4+ir p.+6,
C-sti5e +nd d-e pro5ess.
51
)3-s, t3is Co-rt 5+nnot t+@e 5o/ni<+n5e o4 t3e
iss-e o4 =3et3er or not C 5o,p.ied =it3 t3e ,+nd+tor6 =or@ pro/r+,.
51
!ulti=0ealt %evelopment Corporation v. !a;ati -uscan Con$ominium Corporation,
G.R. No. 1>7727, 17 '-ne 2007, >21 #CRA 2, 2;.
In s-,, t3is Co-rt 4inds:
&. )3e +ss+i.ed (e5ision did not o0ert-rn t3e 17 '-.6 1221
(e5ision in .pex !ining Co.+ 5nc. v. /arcia. )3e 4or,er =+s
de5ided on 4+5ts +nd iss-es t3+t =ere not +ttend+nt in t3e .+tter,
s-53 +s t3e expir+tion o4 "P 1;;, t3e 0io.+tion o4 t3e 5ondition
e,1odied in "P 1;; pro3i1itin/ its +ssi/n,ent, +nd t3e
-n+-t3ori<ed +nd in0+.id +ssi/n,ent o4 "P 1;; 16 C to
#", sin5e t3is +ssi/n,ent =+s e44e5ted =it3o-t t3e +ppro0+.
o4 t3e #e5ret+r6 o4 ("NRE
(. #" did not +5?-ire 0ested ri/3t o0er t3e disp-ted +re+
1e5+-se its s-pposed ri/3t =+s extin/-is3ed 16 t3e expir+tion
o4 its exp.or+tion per,it +nd 16 its 0io.+tion o4 t3e 5ondition
pro3i1itin/ t3e +ssi/n,ent o4 "P 1;; 16 C to #". In
+ddition, e0en +ss-,in/ t3+t #" 3+s + 0+.id exp.or+tion
per,it, s-53 is + ,ere .i5ense t3+t 5+n 1e =it3dr+=n 16 t3e
#t+te. In 4+5t, t3e s+,e 3+s 1een =it3dr+=n 16 t3e iss-+n5e o4
Pro5.+,+tion No. 227, =3i53 p.+5es t3e disp-ted +re+ -nder t3e
4-.. 5ontro. o4 t3e #t+te t3ro-/3 t3e "xe5-ti0e (ep+rt,entE
*. )3e +ppro0+. re?-ire,ent -nder #e5tion 27 o4 Presidenti+.
(e5ree No. >7; +pp.ies to t3e +ssi/n,ent o4 "P 1;; 16 C
to #", sin5e t3e exp.or+tion per,it is +n interest in + ,inin/
.e+se 5ontr+5tE
E. )3e iss-e o4 t3e 5onstit-tion+.it6 +nd t3e .e/+.it6 o4
Pro5.+,+tion No. 227 =+s r+ised 1e.+ted.6, +s #" ?-estions
t3e s+,e 4or t3e 4irst ti,e in its otion 4or Re5onsider+tion.
"0en i4 t3e iss-e =ere to 1e entert+ined, t3e s+id pro5.+,+tion
is 4o-nd to 1e in 3+r,on6 =it3 t3e Constit-tion +nd ot3er
existin/ st+t-tesE
'. )3e ,otion 4or re5onsider+tion o4 C+,i.o *+n+d, et al.
5+nnot 1e p+ssed -pon 1e5+-se t3e6 +re not p+rties to t3e
inst+nt 5+sesE
). )3e pr+6ers o4 Apex +nd *+.ite +s@in/ t3e Co-rt to dire5t t3e
G* to +55ept t3eir +pp.i5+tions 4or exp.or+tion per,its 5+nnot
1e /r+nted, sin5e it is t3e "xe5-ti0e (ep+rt,ent t3+t 3+s t3e
prero/+ti0e to +55ept s-53 +pp.i5+tions, i4 e0er it de5ides to
+=+rd t3e ,inin/ oper+tions in t3e disp-ted +re+ to + pri0+te
entit6E
D. )3e Co-rt 5+nnot p+ss -pon t3e iss-e o4 =3et3er or not
C 5o,p.ied =it3 t3e ,+nd+tor6 exp.or+tion =or@ pro/r+,,
+s s-53 =+s + non-iss-e +nd =+s not r+ised 1e4ore t3e Co-rt o4
Appe+.s +nd t3e .o=er tri1-n+.s.
WHEREFORE, pre,ises 5onsidered, t3e Co-rt 3o.ds:
1. )3e otions 4or Re5onsider+tion 4i.ed 16 C+,i.o *+n+d, et al. +nd
#o-t3e+st ind+n+o Go.d inin/ Corpor+tion +re DENIED 4or .+5@ o4
,eritE
2. )3e otion 4or C.+ri4i5+tion o4 Apex inin/ Co., In5. +nd t3e
+ni4est+tion +nd otion o4 t3e *+.ite Co,,-n+. Port+. inin/
Cooper+ti0e, inso4+r +s t3ese ,otionsK,+ni4est+tion +s@ t3e Co-rt to dire5t
t3e ines +nd Geo-#5ien5es *-re+- to +55ept t3eir respe5ti0e +pp.i5+tions
4or exp.or+tion per,its, +re DENIEDE
;. )3e +ni4est+tion +nd Ur/ent otion d+ted 25 '+n-+r6 2007 o4
#o-t3e+st ind+n+o Go.d inin/ Corpor+tion is DENIED.
>. )3e #t+te, t3ro-/3 t3e "xe5-ti0e (ep+rt,ent, s3o-.d it so desire,
,+6 no= +=+rd ,inin/ oper+tions in t3e disp-ted +re+ to +n6 ?-+.i4ied
entities it ,+6 deter,ine. )3e ines +nd Geos5ien5es *-re+- ,+6 pro5ess
exp.or+tion per,its pendin/ 1e4ore it, t+@in/ into 5onsider+tion t3e
+pp.i5+1.e ,inin/ .+=s, r-.es +nd re/-.+tions re.+ti0e t3ereto.
SO ORDERED.
MINITA V. CHICO-NAZARIO
Asso5i+te '-sti5e
D" CONCUR:
REYNATO S. PUNO
C3ie4 '-sti5e
On o44i5i+. .e+0e
ANTONIO T. CARPIO
Asso5i+te '-sti5e
RENATO C. CORONA
Asso5i+te '-sti5e
On o44i5i+. .e+0e
CONCHITA CARPIO MORALES
Asso5i+te '-sti5e
PRESBITERO J. VELASCO, JR.
Asso5i+te '-sti5e
8No P+rt9
ANTONIO EDUARDO B. NACHURA
Asso5i+te '-sti5e
TERESITA J. LEONARDO-DE CASTRO
Asso5i+te '-sti5e
On o44i5i+. .e+0e
ARTURO D. BRION
Asso5i+te '-sti5e
DIOSDADO M. PERALTA
Asso5i+te '-sti5e
LUCAS P. BERSAMIN
Asso5i+te '-sti5e
MARIANO C. DEL CASTILLO
Asso5i+te '-sti5e
ROBERTO A. ABAD
Asso5i+te '-sti5e
MARTIN S. VILLARAMA, JR.
Asso5i+te '-sti5e
C E R T I F I C A T I O N
P-rs-+nt to Arti5.e &III, #e5tion 1; o4 t3e Constit-tion, it is 3ere16
5erti4ied t3+t t3e 5on5.-sions in t3e +1o0e (e5ision =ere re+53ed in
5ons-.t+tion 1e4ore t3e 5+se =+s +ssi/ned to t3e =riter o4 t3e opinion o4 t3e
Co-rt.
REYNATO S. PUNO
C3ie4 '-sti5e